Strategy Theory And Practice By Stewart R Clegg; Jochen Schweitzer, Andrea Whittle, Christos Pitelis

Test Bank Chapter 1: Strategy: Theory & practice – an introduction Below are a number of multiple choice questions relevant to this chapter. There are two to three variations on the same questions. Each question has four options; the correct answer is written in the final column. Some questions are very simple, while others are much more difficult; this should be taken into account when setting quizzes or exams.

Example of possible instruction to students: For each of the following questions, read each question carefully and then choose the answer you believe is most correct: Question and options

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Strategy is all about:

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a. foresight and a holistic view of the firm b. the short-term objectives of the firm and ways of meeting them c. defining marketing goals and targets d. enhancing sales performance What makes strategizing necessary? a. rapid changes in the business landscape b. more sophisticated organizational structures c. pressure to innovate d. all of these Which of the following was a strategist? a. Machiavelli b. Sun-Tzu c. Herodotus d. all of these How do modern conceptions of strategy relate to classical conceptions?

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. they are the same b. there is no relation c. as legitimations for current views d. none of these Machiavelli’s contribution to strategy suggests that:

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a. remaining powerful is the highest priority b. listening to your employees’ needs is of utmost importance c. delegation of authority enhances team performance d. none of these Based on Clausewitz’s arguments, we can infer that: a. Strategy is based on a pre-determined wisdom and rational thinking. b. Strategy unfolds sequentially yet rationally. c. Strategy has a non-rationalistic element in it, induced by passions and feelings. d. Both strategy is based on a pre-determined wisdom and rational thinking and strategy unfolds sequentially yet rationally.

The establishment of modern-day strategy as a discipline can be traced back to: a. the 1960–70s, drawn from economics b. the industrial revolution in north-west England c. the 1980s, with the advent of large US multinational corporations d. the 1930s, drawn from social psychology Modern conceptions of strategy as planning played a major role in: a. the First World War b. the Peloponnesian Wars c. the Second World War d. the Vietnam War Which of the following was a crucible of early strategy thinking?

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. Marks & Spencer’s b. Zara c. West Point d. Ancient Greece In Cummings and Daellenbach’s study, reviewing papers in Long Range 10

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Planning, what are the recurring themes that constitute the baseline of strategy research in the last 40 years? a. corporate b. technology c. mergers and acquisitions d. all of these According to Cummings and Daellenbach’s study, reviewing papers in

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Long Range Planning what is NOT part of the emerging trends in the future of strategy? a. Strategists are becoming more politically astute. b. Strategists are becoming more sensitive to environmental conservation issues. c. Strategists are becoming more aesthetically aware. d. Case studies will flourish, as opposed to prescriptions.

Chandler is famous for: a. seeing strategy as leading to structure b. seeing structure as leading to strategy c. seeing strategy and structure as co-evolving d. none of these Which of the following does NOT feature in Igor Ansoff’s levels of action towards planning? a. operational b. inter-organizational

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. administrative d. strategic A main feature of Ansoff’s logic is that strategy is the exclusive

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territory of: a. marketing managers b. top management c. sales managers d. the founder of the company A definition of the firm following Edith Penrose focuses on the role of: a. technology b. capital c. resources d. network Sustained competitive advantage depends on firms developing unique combinations of ______, providing competencies that allow for flexible development in an uncertain and changing environment. a. resources b. capital c. technologies d. people Which of the following themes in strategy has/have been influenced by Penrose? a. dynamic capabilities b. resource-based view c. knowledge-based perspectives on strategy d. all of these According to Michael Porter, firm profitability is dependent on ______. a. industry structure

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. people c. the initial capital employed d. the economy With which of the following would you associate these words: ‘the

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environment determines success, not the resources controlled’? a. Penrose b. Machiavelli c. Pericles d. Porter A behavioural perspective on strategy argues that ______ influence the unfolding of strategy. a. cognitive processes of bounded rationality b. rapid changes and external phenomena c. both cognitive processes of bounded rationality and rapid changes and external phenomena d. none of these Who developed Transaction Cost Economics? a. Michael Porter b. Edith Penrose c. Karl Marx d. Oliver Williamson Porter is best known for work on which of the following? a. the organization man b. strategy as practice c. competitive advantage d. all of these What is a principle of revolutionary strategy, according to Hamel? a. Strategic planning may be planning but it is not strategic.

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. Revolutionaries exist in every company. c. none of these d. Both strategic planning may be planning but it is not strategic and revolutionaries exist in every company.

In Furrer, Thomas and Goussevskaia’s research, the most frequent

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keyword associated with strategy was: a. process b. dynamics c. performance d. environment In the aforementioned study, which topic/concept was found to have an increased frequency of occurrence in the years 2001–05? a. marketing research and metrics b. operational efficiency c. IT d. innovation The first strategy as practice theory was written by ______. a. Porter b. Knights and Morgan c. Marx & Engels d. Machiavelli Marks & Spencer is a ______. a. successful model for fashion retailing b. model example of organization learning c. firm challenged by newer models such as Zara d. firm with a weak leadership team Zara owes its strategic success to ______. a. advertising

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. a fast-fashion business model c. its monorail d. its long-standing traditions A ______ problem is a problem that is hard to define, has many inter-

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related causes and no criteria for evaluating solutions. a. complex b. historical c. sensemaking d. wicked According to ______, resources that are not easily copied by competitors are the real source of innovation and value for a firm. a. Porter b. Penrose c. Chandler d. Ansoff What constitutes a key concept in the industry analysis viewpoint promoted by Porter? a. money b. network c. market power d. corporate culture ______ focuses on the processes and practices constituting the everyday activities of organizational life and relating to strategic outcomes. a. Resource-based view b. Strategy as practice c. Industry analysis d. Stakeholder theory

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 A ______ is a set of normalized assumptions about how the world 33 d works and how to generate knowledge that frames thinking within a community. a. theoretical tool b. concept c. phenomenon d. paradigm Which of the following has played the major role in shaping

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contemporary views of strategy? a. economics b. philosophy c. sociology d. psychology What is the Red Queen effect? a. bureaucracy b. fracking c. when competitors constantly evolve together to reach what is only ever a provisional and uneasy balance of top management d. socialist women in charge Strategic ______ are the opposite of norms of predictability and routine. a. cases b. surprises c. evolutions d. capabilities

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019

Test Bank Chapter 2: Strategy, competitive forces and positioning Below are a number of multiple choice questions relevant to this chapter. There are two to three variations on the same questions. Each question has four options; the correct answer is written in the final column. Some questions are very simple, while others are much more difficult; this should be taken into account when setting quizzes or exams.

Example of possible instruction to students: For each of the following questions, read each question carefully and then choose the answer you believe is most correct: Question and options What is part of a firm’s business environment?

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a. market environment b. legal frameworks c. institutional structures d. all of these Strategists refer to ______ as factors shaping ______ for the

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organization’s goods and services in the environments in which the organization operates. a. properties/demand b. demand drivers/demand c. technology drivers/goals d. properties/objectives ______ are relationships with other entities, such as competing firms or government. a. Competitive relationships b. Horizontal relationships

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. Thorough relationships d. Vertical relationships ______ are about the management of suppliers and buyers.

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a. Vertical relationships b. Horizontal relationships c. Governmental relationships d. Institutional relationships ______ takes an external perspective and is concerned with the industry within which firms operate and behave as producers, sellers and buyers of goods and services. a. Resource-based view b. Value chain c. Industrial organization d. Macro economics According to industrial organization theory, which factor does NOT influence market structure? a. supply conditions b. demand for a product c. manufacturing base of the leading firm d. the degree of differentiation of products ______ refers to the characteristics of the product and is the way through which firms improve the quality of their offerings over time (usually by means of innovation). a. Product differentiation b. Augmented product c. Core product d. Product development What do we call firms that invest in a variety of different product

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 markets to reduce exposure to risk in single product markets? a. investment firms b. diversified firms c. monopolies d. oligopolies National, regional and local governments, as well as economic or

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political unions like the European Union (EU) or the North American Free Trade Agreement (NAFTA), often enforce regulations that can do which of the following? a. guide and restrict competition b. impose taxes and subsidies c. regulate employment d. all of these Michael Porter (1980, 1985) suggested that factors such as initial capital requirements, the threat of price-cutting by established firms and the level of product differentiation represent ______ for new-firm entrants into markets. a. barriers to entry b. opportunities c. market ideas d. threats The concentration among competing players in a market and the extent to which one or a few large producers dominate this market helps us understand what? a. the degree of governmental intervention b. whether competing in a market is economically and strategically profitable c. the capital that needs to be invested by the market follower

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. none of these In the global airline industry a firm may have many choices as to

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which segments to compete in. However, this also means it will be more difficult for the firm to find a ______. a. partner b. niche segment c. network d. profitable competitive position Business objectives might relate to: a. maximization of profits b. increasing sales revenues c. growth in market share d. all of these The acronym S-C-P refers to: a. market structures, firm conduct and firm performance b. synergies, customized products and performance c. systematic screening, co-evolution of needs and profitability d. strategy, competitive advantage and profitability Strategic ______ are decisions made by the top management team with respect to important factor conditions such as markets and technology. a. avenues b. choices c. possibilities d. imperatives What term is used to refer to conditions when one party has superior information to the other party, creating an imbalance of power, as the better-informed party gains strategic advantage? a. power asymmetry

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. imbalanced market dynamics c. asymmetry of information d. information overload How can firm performance affect market structure?

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a. The best performing firms can dominate the market in the long term by setting standards for prices. b. The best performing firms can have exclusive access to key resources. c. Firm performance cannot affect market structure. d. Both the best performing firms can dominate the market in the long term by setting standards for prices and can have exclusive access to key resources.

The S-C-P concept enables a firm to do what? a. identify opportunities for a business, especially if it is planning to enter into an industry as a new player b. help determine if an industry is attractive enough to remain competing in c. gain competitive advantage by differentiating its products or services d. all of these Sustainable competitive advantage is what allows a firm to maintain and improve its ______ in a market against competitors in the long term. a. competitive position b. profitability c. environmental sustainability d. corporate social responsibility ______ is the situation where an organization earns above market

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 returns. a. Market returnability b. Economic rent c. Financial capacity d. Market dominance Barnett and McKendrick argue that differences in competitive

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performance within an industry can be attributed to ______ such as ______. a. external phenomena/wars b. networks/governments c. organizational attributes/firm size d. events/sponsorships Which is NOT part of a PESTEL analysis? a. environmental b. economic c. electoral d. social Which are parts of the macro-economic factors influencing firms? a. exchange rates b. business cycles c. economic growth rates d. all of these Sociocultural macro-environmental influences incorporate: a. changing cultures and demographics b. urbanism c. gender relations d. all of these Legal macro-environmental influences incorporate:

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. legislative constraints such as health and safety legislation b. equal opportunity directives c. both legislative constraints such as health and safety legislation and equal opportunity directives d. none of these Market ______ describes the state of a market with respect to

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competition. a. structure b. process c. dynamism d. all of these Which of the following is NOT one of the basic market structures? a. the homogeneous or pure market b. the monopoly c. the oligopoly d. the duopoly In a homogeneous or pure market, what is it relatively easy for a firm to do? a. imitate success almost immediately b. conquer the market c. gain access to capital d. all of these In a pure market, the only distinguishing variable that a firm can use to its advantage is ______. a. product superiority b. relative price c. technological know-how d. none of these

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 ______ is characterized by a ______ number of players acting in 30 a relatively predictable and coordinated ways to supply products and services. a. Oligopoly/limited b. Free market economy/limited c. Duopoly/large d. Free market economy/huge ______ occurs when competitors within an industry cooperate illegally

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for mutual benefit. a. Collusion b. Bribery c. Corruption d. None of these ______ depicts a market in which the sources of competitive advantage can change quickly, and maintaining above-average profits over a long time is difficult. a. hypercompetition b. low-level competition c. high-level competition d. oligopoly Which force is NOT part of Porter’s five forces model? a. deregulation b. globalization c. deregulation and globalization d. barriers to entry ______ is an economic term used to describe a situation where a firm’s assets are highly specialized and, therefore, cannot easily be sold to other buyers in another industry.

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. asset specificity b. asset allocation c. asset dominance d. asset toxicity ______ are a group of firms in the same industry that follow the same,

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or similar, strategies. a. strategic partners b. cooperating firms c. strategic groups d. strategic networks What is NOT part of Porter’s generic strategies? a. diversification b. cost leadership c. focus d. differentiation

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Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019

Test Bank Chapter 3: Strategy, resources and capabilities Below are a number of multiple choice questions relevant to this chapter. There are two to three variations on the same questions. Each question has four options; the correct answer is written in the final column. Some questions are very simple, while others are much more difficult; this should be taken into account when setting quizzes or exams.

Example of possible instruction to students: For each of the following questions, read each question carefully and then choose the answer you believe is most correct: Question and options

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Whereas Porter concentrates attention externally on markets, advocates

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of the RBV focus attention: a. externally on macro-external forces b. externally on strategic groups c. internally on organizational capabilities d. internally on organizational structure The acronym RBV stands for: a. resource based view b. resource based value c. resources, brands and values d. real brand values The RBV focuses on internal factors because: a. An organization has control over its external factors only. b. An organization has control over its internal factors only. c. An organization has control over both internal and external factors. d. An organization has no control over either internal or external factors.

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 Which of the following are isolating mechanisms identified by Penrose? 4 d a. path dependencies in resource development b. firm-specific knowledge possessed by managers c. entrepreneurial vision of managers d. all of these According to the RBV:

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a. Resources provide the building blocks for constructing a firm’s strategy. b. Capabilities provide the building blocks for constructing a firm’s strategy. c. Resources and capabilities provide the building blocks for constructing a firm’s strategy. d. Human resources provide the building blocks for constructing a firm’s strategy.

Capital is one of the basic types of resource identified by the RBV. Which of the following from this list is also a basic type of resource? a. physical b. labour c. financial assets d. debt Examples of capabilities could be the following: a. a good track record in research and development b. a reputation for using only high-quality inputs c. a reputation for good customer service d. all of these Which of the following statements is correct? a. It is more difficult to assess tangible resources than intangible ones. b. It is more difficult to assess intangible resources than tangible ones.

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. Tangible resources cannot be assessed. d. Intangible resources cannot be assessed.

According to Barney, a firm orientated to a product market strategy is

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unlikely to generate economic rent for which reason: a. If there are clear substitutes, then the buyers may choose one of them. b. Other firms in the market cannot buy the same resources and eliminate any rent-making possibilities. c. The market for such resources will value the assets to account for the future earnings potential, making the assets very expensive and eliminating the possibility of earning economic rent. d. Competition is less important than resources and capabilities.

The VRIN characteristics stand for: a. valuable, real, imitable, non-substitutable b. valuable, rare, industrial, non-substitutable c. valuable, real, independent, non-substitutable d. valuable, rare, imperfectly imitable, non-substitutable If each of the VRIN conditions is satisfied, then there is the possibility of a resource providing: a. competitive advantage b. sustainable competitive advantage c. new market opportunities d. more efficient and effective internal procedures Which of the following statements is correct? a. Capabilities exist in functional areas, such as HR and marketing. b. Capabilities occur when different functional capabilities are combined and integrated. c. Any capability is only a source of competitive advantage when it is stronger than those of its immediate competitors.

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. all of these An example of organizational assets is:

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a. special manufacturing know-how b. cheap suppliers c. money in the pocket d. the school that senior managers attended Which of these is NOT one of the central factors determining the sustainability of a firm’s competitive advantage? a. durability b. transparency c. transferability d. accessibility Core competencies are ______ (choose all that apply). a. the glue that keeps teams together b. the engine for new business development c. the glue that binds suppliers and customers together d. the engine for developing new collaborations Which one of the following is NOT a criterion that a core competence must fulfil? a. The competency must be developed by the senior management of the organization. b. The competency must provide potential access to a wide variety of markets. c. The competency must make a significant contribution to an organization achieving its goals. d. The competency must be difficult to imitate.

Which of the following has been put forward as a critique of the RBV? a. a problematic view of knowledge

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. lacking a theory of a firm c. a tautological argument d. all of these Which of the following has been put forward as a critique of the RBV?

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a. retrospective analysis not predictive b. resources are too broad and vague a concept c. what is inimitable is too hard to define in advance d. all of these Dynamic capabilities are: a. the routines of a firm that create competitive advantage b. the processes of a firm that are able to reconfigure resources to respond to changes in the marketplace c. the unique resources of a firm that achieve sustainable competitive advantage d. the dynamic ways that firms use to achieve temporary advantages until competitors imitate them Which of the following is NOT an example of dynamic capabilities? a. technological know-how b. intellectual property c. business process knowledge d. friendly working environment Which of the following is NOT an example of dynamic capabilities? a. state-of-the-art machinery b. customer and business relationships c. reputation d. organizational culture and values Mastery of dynamic capabilities is seen as a multistage process, composed of:

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. exploring, seizing, reconfiguring and differentiating b. sensing, developing, reformulating and disseminating c. sensing, seizing, reconfiguring and transforming d. exploring, exploiting, transcending and developing Which of these are determinants of value?

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a. innovations b. human resources and their services c. unit cost economies/returns to scale d. all of these Which of the following are types of knowledge for knowledge management? a. innovative b. tacit c. examinable d. creative Which of the following is NOT a characteristic of tacit knowledge? a. difficult to express b. experientially based c. possessed by the person d. possessed by the organization/department/team Knowledge management is a managerial practice that seeks to: a. identify knowledge in an organization b. leverage knowledge in an organization c. control and create knowledge in an organization d. all of these Which of the following factors does knowledge management focus on? a. credentials of knowledge b. capacity for aggregation

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. status of knowledge d. tradition behind knowledge Which of the following is a key means through which knowledge is

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produced in an organization? a. socialization b. intensification c. randomization d. psychological analysis Which of the following are potential problems associated with intranets from an employee’s perspective? a. regarded as largely irrelevant b. overwhelmed with large quantities of data c. viewed with suspicion d. all of these Which of the following are potential problems associated with intranets? a. not clearly linked to operational and strategic goals b. imposing central solutions c. being over-centralized d. all of these The dynamic capabilities approach constitutes a development from which of the following: a. resource-based view b. porter’s five forces c. porter’s diamond d. porter’s value chain Penrose’s work was significant for which of the following: a. resource-based view

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. generic competitive strategies c. porter’s value chain d. dynamic capabilities Story-telling methodologies are a means of building a comprehensive

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understanding of which of the following? a. the way that dynamic capabilities are developed b. the knowledge base of an organization c. how an organization achieves competitive advantage d. when organizations enjoy economic rents In order to be useful, tacit knowledge must be: a. coordinated b. restricted c. secret d. codified Co-specialization requires which of the following? a. management of assets and their development in relation to each other in alliances and collaborations b. relating strategy to past traditions c. organizations with a long history in the market d. organizations operating in dynamic environments Which of the following are managerial implications of the resource based-view? a. overcoming disadvantages b. realizing potential c. self-understanding d. all of these Sale at ______ represents the point of exchange at which perceived producer value equals consumer value.

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. any price b. a price which is the maximum that the seller can command c. a mutually agreed price between seller and buyer d. bargain basement prices Value ______.

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a. resides in a particular product or service b. is an attribute of a thing. c. is the amount of profit made on a transaction. d. is perceived worthiness.

Which of the following defines ‘value added’? a. the difference between the (comprehensively accounted) value of a firm’s output and the (comprehensively accounted) cost of the firm’s inputs b. the difference between exchange value and surplus value c. that value which is captured at the point of sale. d. all of these The value chain ______. a. creates value by delivering a product or service at a price that affords an organization a profit margin b. is a form of outsourcing that allows different suppliers to make a profit c. is a set of contractually tight agreements that chain organizations in relations of dependency d. all of these

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019

Test Bank Chapter 4: Strategy and innovation Below are a number of multiple choice questions relevant to this chapter. There are two to three variations on the same questions. Each question has four options; the correct answer is written in the final column. Some questions are very simple, while others are much more difficult; this should be taken into account when setting quizzes or exams.

Example of possible instruction to students: For each of the following questions, read each question carefully and then choose the answer you believe is most correct: Question and options

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Ans.

______ is usually defined as the creation of novelty that provides economic

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value through the creation of new products and services. a. Invention b. Innovation c. Managerial sophistication d. all of these According to Marceau, innovation often requires: a. the establishment of new work practices b. money c. a change of the CEO d. all of these ______ is often confused with or mistaken for ______. a. Innovation/invention b. New product development/organizational change 1

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. Change/innovation d. Invention/managerial change The smartphone and the iPad are both examples of:

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a. new inventions b. new brands c. innovations d. none of these Innovation often or always involves: a. money b. a supporting organizational structure and ethos c. learning d. all of these ______ means doing new things. a. Product innovation b. Service invention c. Improvisation d. None of these ______ fundamentally changes the products offered. a. Severe invention b. Total elimination c. Radical innovation d. Rapid invention A ______ is defined as an evolving ecosystem that is created from many interconnected pieces. a. platform b. mechanism c. structure 2

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. management style According to Schumpeter, which notion describes the ‘process of industrial

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According to Christensen, what is the reason that sustaining technologies do not 10

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mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one’? a. creative absorption b. creative imaginary c. creative destruction d. none of these produce innovation? a. They improve the performance of existing products rather than replace them. b. They need more investment. c. They are obsolete. d. all of these Disruptive technologies may result in worse performance (at least in the short

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term) for: a. new products b. existing products c. services d. firms Innovation is learning either how to make different things or how to make things differently. The first of these is ______ innovation; the second is ______ innovation. a. product/process b. process/product c. managerial/organizational d. organizational/managerial 3

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 ______ innovation makes small and continuous improvements to an existing 13 c product. a. Radical b. Revolutionary c. Incremental d. None of these What do we call those companies that control, or at least shape, the structure of

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overarching systems architecture? a. platform leaders b. industry leaders c. senior architect firms d. market leaders According to Wirtz et al., which environment is characterized by ‘rapid, discontinuous and simultaneous change in demand, competitors, technology and regulation’? a. high-velocity b. disproportionate c. external d. internal Innovative strategy is not an event or a plan but a continuous process of being alert. In which environment does this mostly stand true? a. in a stable environment b. in a foreign environment c. in a high-velocity environment d. none of these What do Tidd and Bessant propose as a way of supplementing the problems of the rationalist approach?

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Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. incremental design b. discontinuous approach c. rapid discontinuity d. revolutionary approach Kamoche and Cunha define ______ as ‘the conception of action as it unfolds,

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by an organization and/or its members, drawing on available material, cognitive, affective and social resources’. a. organizational design b. innovation c. management creativity d. organizational improvisation According to Weick, what characterizes just-in-time strategies? a. less investment in front-end loading b. more investment in general knowledge c. sophistication in cutting losses d. all of these According to Mintzberg, why can’t the innovative organization rely on deliberate strategy? a. it is expensive b. it is difficult c. it must respond to a complex, unpredictable environment d. all of these In what environment can companies not rely on planning years ahead but rather need experimentation to stay abreast of innovation? a. in a macroeconomic environment b. in a competitive environment c. in a high-velocity environment 5

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. in a stable environment What strategy posits that firms must predetermine precise patterns in their

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activities and then impose them on their work through some kind of formal planning process? a. deliberate strategy b. formal strategy c. intended strategy d. both formal strategy and intended strategy What is an advantage of large, well-resourced firms in their attempts to innovate? a. They can easily acquire innovative new and small firms. b. They have more creative people. c. Both they can easily acquire innovative new and small firms and they have more creative people. d. none of these What is an advantage of small firms in their attempts to innovate? a. They are more creative. b. They will be better able to take risks, which innovation always entails. c. They do not care that much about the consequences of their actions. d. none of these An ‘ambidextrous’ organization is one which: a. knows how to innovate b. focuses simultaneously on its stable routines that serve existing markets and on innovation c. taps into ‘left-brain’ and ‘right-brain’ thinking d. employs senior managers who think outside the box What is an advantage of small firms in their attempts to innovate?

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Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. They are often closer to their customers. b. They have high levels of creativity. c. Both they are often closer to their customers and they have high levels of creativity. d. Small firms do not have advantages over large firms regarding innovation.

Tim Brown, CEO of the innovation and design firm IDEO, defines ______ as

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innovation that is ‘powered by a thorough understanding, through direct observation, of what people want and need in their lives and what they like or dislike about the way particular products are made, packaged, marketed, sold and supported’. a. market research b. product development c. design thinking d. platform strategy According to Tim Brown, design thinking as a process involves which of the following characteristics? a. understanding the motivation behind the search for a solution b. the process of creating, developing and testing ideas c. a movement between a and b d. all of the above According to organization theorist Deborah Dougherty, a ‘design science’ framework identifies which of the following as properties of a large and complex innovative organization? a. fluidity b. integrity c. energy d. all of these 7

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 According to Deborah Dougherty, ______ refers to ongoing, dynamic 30 b adaptations in product teams, among businesses, and within and across technologies and other capabilities. a. integrity b. fluidity c. energy d. organizational change According to Dougherty, ______ means that an organization prizes integration

31

c

32

a

33

a

both as a principle structuring thought and action and as an outcome of that thought and action. a. energy b. fluidity c. integrity d. organizational change According to Dougherty, ______ means that innovative organizations need continually to energize, enable and motivate people. a. energy b. fluidity c. integrity d. organizational change ______ create specialist sub-units with unique processes, structures and cultures that are specifically intended to support early-stage innovation, comprising one or more innovation teams within the larger parent organization. a. Ambidextrous organizations b. Strategic business units c. Corporations d. Heterarchical organizations 8

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 According to Maguire, Hardy and Lawrence, how do institutional entrepreneurs 34 b help establish new (and sometimes challenge old) institutions in the process of their activities? a. stretching human resources b. leveraging resources to create new institutions or to transform existing ones c. integrating human and financial resources d. through inter-functional co-ordination ______ innovation systems are composed of different patterns of institutions

35

a

According to Bessant and Tsekouras, the advantages of shared learning include: 36

d

and organizational relationships. a. National b. Inter-functional c. Foreign d. Network-based a. potential for learning and reflection from different perspectives b. shared experimentation, which can reduce cost risks c. shared experiences which offer space for discussion and inquiry d. all of these ______ is the creation of a new management practice, process or structure that

37

b

38

d

changes the state of the art. a. Administrative change b. Management innovation c. Organizational restructuring d. All terms above denote the same thing According to Chesbrough and Appleyard, which of the following are strategies that organizations can employ to benefit from open innovation? a. deployment 9

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. hybridization c. self-service d. all of these

10

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019

Test Bank Chapter 5: Strategy – Make or buy?

Below are a number of multiple choice questions relevant to this chapter. There are two to three variations on the same questions. Each question has four options; the correct answer is written in the final column. Some questions are very simple, while others are much more difficult; this should be taken into account when setting quizzes or exams.

Example of possible instruction to students: For each of the following questions, read each question carefully and then choose the answer you believe is most correct: Question and options

#

Ans.

Which of the following forms of governance does Transaction Costs

1

a

2

d

3

c

Economics (TCE) consider? a. vertical b. diagonal c. linear d. triangular Horizontal integration occurs: a. when a firm competes with another b. when a firm outsources to another c. when a firm is dissolved d. when a firm acquires or merges with another Vertical integration occurs: a. when a firm competes with another b. when a firm outsources to another c. when a firm moves into activities that were previously undertaken by a supplier or a customer

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. when a firm acquires or merges with another Outsourcing occurs when:

4

a

5

c

6

c

7

c

8

c

a. activities that were previously undertaken by the firm are moved to outside suppliers b. firms take over sourcing things themselves that they previously bought c. a firm undergoes innovation d. none of the above The alternative to market transactions in TCE is: a. barter b. gifts c. employment contracts d. potlatch According to TCE, the boundary of the firm is ______. a. defined by real estate b. defined by geography c. defined by economic considerations concerning make or buy, internalizing or externalizing activities d. none of these The ‘father’ of TCE is: a. Karl Marx b. Hamish McTaggart c. Ronald Coase d. Henry Mintzberg TCE postulates that human actors are characterized by ______, ______ and ______. a. creativity/opportunism/strategic foresight b. bounded rationality/bounded business units/unbounded energy c. bounded rationality/opportunistic behaviour/feasible foresight

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. none of these What is TCE’s key question?

9

a

10

a

11

a

12

b

13

b

a. whether transactions should be coordinated within a firm or across markets b. whether rationality is bounded enough c. whether to invest more in innovation d. all of these Bounded rationality means: a. we never have perfect knowledge and hence can never be perfectly rational b. we are irrational by nature c. we cannot be rational because we are forgetful d. gaining advantage by being economical with, or even distorting, what we take to be the truth Opportunism means: a. breaching the spirit of a contract for self-interest b. being serendipitous c. being biased d. managerial corruption Feasible foresight means that parties to a contract have the capacity to: a. think about the potential future conduct of the other party and integrate those insights into the ex-ante design of governance b. generate a list of feasible and unfeasible futures c. use strategic models to gain foresight about the future conduct of the other party d. generate governance models that work for both parties In TCE uncertainty means: a. being lost in the detail b. not being able to control the contingencies of contracts c. being irrational in planning

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. none of these Problems in evaluating performance according to the terms of contracted

14

c

15

a

16

c

17

d

18

b

outcomes are called ______ by TCE. a. technological uncertainty b. volume uncertainty c. behavioural uncertainty d. radical uncertainty In TCE, asset specificity means: a. the degree to which an asset is specific to use or user b. the degree to which an asset can be traded c. the degree to which an asset can be valued d. none of these What is Lionel Messi’s asset specificity? a. his #10 shirt b. Adidas boots c. scoring goals d. all of these Transaction frequency refers to ______. a. the rate at which funds are transferred after completion of a contract b. the number of people employed to negotiate a contract c. the number of products being transferred within a single contract d. none of these Williamson says that market failure problems that result from contracting through vertical integration can be solved through ______, ______ and ______. a. organizational design/innovation/creative destruction b. information flows/negotiating costs/incentive alignment

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. managing uncertainty/being boundedly rational/being fast to market d. none of these What is concurrent sourcing?

19

d

20

c

21

a

22

a

23

a

a. using different suppliers b. using different investors c. using both bounded rationality and uncertainty d. using both making and buying When does Parmigiani argue that make-and-buy is likely? a. when making is expensive b. when outsourcing is difficult c. when the level of asset specificity is mediocre d. when the level of asset specificity is low What types of organization did Ouchi add to markets and hierarchies? a. clans b. tribes c. fiefdoms d. slavery When does TCE argue outsourcing will occur? a. when asset specificity is low b. when asset specificity is medium c. when asset specificity is high d. none of these What is an advantage of large, well-resourced firms in their attempts to innovate? a. They can simply take over innovative new and small firms. b. They have more creative people. c. both of the above

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. none of these TCE has been criticized for its ______ view of markets.

24

b

25

d

26

d

27

d

28

d

29

a

a. over-socialized b. under-socialized c. uncertain d. none of these According to Adam Smith, ______. a. TCE developed out of markets b. markets developed out of monopolies c. monopolies developed TCE d. none of these Which of the following have been levied as criticisms of TCE? a. TCE focuses on cost minimization. b. TCE understates the cost of organizing. c. TCE neglects the role of social relationships in economic transactions. d. all of these Which of the following are benefits of horizontal integration? a. reduced competitive intensity b. lower production costs through economies of scale c. increased differentiation by eliminating similar products or services in the market d. all of these According to van Marrewijk, ______ is largely a matter of ______. a. acquisition/money b. vertical integration/strategy c. culture/horizontal integration d. horizontal integration/culture According to van Marrewijk, the central M&A dilemma that he researched

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 was: a. how to integrate newly acquired internet firms while preserving their organizational autonomy and capacity for innovation b. how to integrate new internet technology and transfer knowledge to the acquiring firm c. how to integrate different organizational cultures after a merger d. how to integrate different information systems after a merger According to van Marrewijk’s study, the lesson for M&A’s is:

30

d

a. getting the right deal at the negotiating stage is crucial b. managing the integration of it systems is crucial c. managing the clash of cultures is crucial d. integrating the two organizational cultures destroys the very reason for the strategic decision to merge in the first place Revitalization, as a potential phase in the process of integration, refers to the

31

process through which employees: a. forget about their cultural roots and embrace new norms and values b. talk about the past to keep cultural myths alive c. embrace the new values of the merged organization d. seek to restore the cultural values of the past A transaction is ______ while ______ is ______.

32

d

33

b

a. a cost/value/an asset b. an event/strategy/a sound plan c. a cost/strategy/long-term d. an event/strategy/a process ________ involves(s) externalizing an activity that was previously conducted in the organization. a. Dis-integration b. Outsourcing

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. Strategic scoping d. Strategic foresight Institutional theory suggests that firms choose hierarchy over markets because

34

c

35

a

36

c

37

c

38

c

______. a. it is more efficient b. it is functionally necessary c. it is culturally familiar d. it is easier Markets, hierarchy and ______ are alternative ways of organizing. a. networking b. contracting c. sensemaking d. all of these Outsourcing is an example of ______. a. coercive isomorphism b. normative isomorphism c. mimetic isomorphism d. all of these Which of the following promoted outsourcing as a strategy? a. Marxism b. liberalism c. shareholder value d. stakeholder activism “Nikefication” is a strategy for ______. a. building global supply chains b. making products from sub-components sourced from different suppliers c. separating design and production

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. managing complex projects ______ means eliminating parts of the production system that can be better, or more cheaply, contracted to another company that is a specialist in this area. a. Outsourcing b. Benchmarking c. Offshoring d. Product elimination

39

a

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019

Test Bank Chapter 6: Strategy and alliances Below are a number of multiple choice questions relevant to this chapter. There are two to three variations on the same questions. Each question has four options; the correct answer is written in the final column. Some questions are very simple, while others are much more difficult; this should be taken into account when setting quizzes or exams.

Example of possible instruction to students: For each of the following questions, read each question carefully and then choose the answer you believe is most correct: Question and options Pitelis defines a quasi-stable and durable, formal or informal

#

Ans. 1

a

2

a

3

a

arrangement between two or more independent firms, aiming to further the perceived interests of the parties involved as ______. a. inter-firm cooperation b. subcontracting c. market exchange d. both inter-firm cooperation and subcontracting Which of the following approaches address inter-firm collaboration? a. the industrial organization (IO) approach b. institutional theory c. contingency theory d. the Machiavellian approach According to the Industrial Organization approach, firms cooperate because of the incentive for ______. a. price collusion b. efficiency

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. value d. none of these Coase argued that the existence of the firm, as an alternative to market

4

a

5

c

6

d

7

d

8

d

transactions, can be attributed to ______. a. high market transaction costs b. the benefits of a unified organizational cultural c. economies of scale d. economies of scope For Penrose (1959), firms are superior to markets in terms of their ______. a. management b. innovation c. endogenous creation of knowledge, innovation and value d. none of these Firms collaborate in order to: a. access knowledge b. learn from each other c. overcome trade barriers d. all of these According to Gulati, ______ are defined as purposive linkages between organizations that cover collaborations involving an exchange, a codevelopment or a sharing relationship. a. franchise agreements b. copyright agreements c. intellectual property intangibles d. strategic alliances Which of the following are types of strategic partnership? a. comprehensive alliances b. functional alliances

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. production alliances d. all of these In a marketing alliance, two or more firms share ______.

9

b

10

a

11

c

12

c

13

a

a. production facilities b. marketing expertise c. advertising features d. all of these A public–private partnership is a special type of alliance that involves ______. a. private firms and government organizations b. listed public companies and unlisted private firms c. collusion and corruption for mutual self-interest d. none of these For MNCs, which of the following may be reasons for establishing joint ventures? a. reducing transaction costs b. reducing status hierarchies c. gaining knowledge d. sharpening brand image According to Barney, which of the following mechanisms is important in how firms create value? a. stock-picking b. competitive positioning c. capability-building d. none of these Which of the following are typical problems for strategic alliances? a. inability to match resources and align cultures, decision-making processes and systems b. inability to integrate different languages

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. inability to agree shared goals d. all of these The ways in which alliance partners integrate their interests, use

14

c

15

c

16

a

17

c

18

c

combined resources and relate is called ______? a. alliance synergy b. alliance management c. alliance governance d. none of these ______ provides partners with more managerial control than ______ by virtue of the establishment of an administrative hierarchy that allows partners to exercise a right of control. a. A contract/an informal agreement b. Good will/a legal contract c. Equity alliance/non-equity alliance d. All of these Which of the following are routinely used to manage alliances? a. shared management agreement b. courts c. consultants d. both shared management agreement and consultants What is a joint venture? a. a long-term franchise agreement b. the merger of two firms into a new legal entity c. an entity owned by two or more parent firms that is legally distinct from the parent firms d. a long-term partnership agreement How do joint ventures differ from mergers? a. They don’t differ because they are the same thing. b. They are informal rather than formal agreements.

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. The entity has access only to a limited set of each partner’s activities or operations. d. There is more complexity with the former than the latter.

What do firms need to consider when entering an alliance?

19

c

20

d

21

a

22

d

a. choose and integrate the alliance management team and team members b. know when best to exit the partnership c. the financial capacity of the partner firm d. both choose and integrate the alliance management team and team members and know when best to exit the partnership What are the strategic aspects of inter-organizational collaboration that are important for partners to consider? a. assessing whether or not collaboration is a viable strategy to gain access to important resources b. finding suitable partners and negotiating terms and conditions c. implementing governance structures, processes and policies d. all of these ______ are commonly defined as purposive linkages between organizations that cover collaborations involving an exchange, a codevelopment or a sharing relationship. a. Strategic alliances b. Networks c. Joint ventures d. Licensing agreements Strategic alliances do NOT include: a. strategic supplier relationships b. joint ventures c. cross-licensing arrangements d. mergers and acquisitions

What is a defining feature of an alliance?

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 23 d

a. An alliance brings two or more individual organizations together. b. An alliance requires these parties to be interconnected in some way with resource dependencies. c. Interconnectedness involves reciprocal relations. d. all of these Which is NOT a key benefit a firm may seek to realize from engaging

24

c

25

a

26

d

27

a

in collaboration with other firms? a. reducing risk b. entering new markets more easily c. preserving brand identity d. obtaining new knowledge Alliances can help partners control ______ because they imply that two or more organizations work together and share, for example, investment in crucial technologies. a. risk b. employees c. infrastructure d. technology Collaborating with local partners can help firms to: a. surmount regulations regarding entry modes that are imposed by the host government b. obtain essential information about local customers, distribution networks and suppliers c. circumvent legal obligations d. both surmount regulations regarding entry modes that are imposed by the host government and obtain essential information about local customers, distribution networks and suppliers ______ from alliance partners can help build capabilities within the

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 alliance and be transferred to other parts of the organization. a. Learning b. Copying c. Buying d. Both learning and copying The ______ strength of alliance partners can result in synergies that

28

c

29

b

30

d

31

a

allow for more efficient and effective use of resources and, thereby, provide a source for competitive advantage. a. reciprocal b. opposing c. complementary d. mutual Alliances between firms that are also competitors in another sphere is an example of: a. synergy b. co-opetition c. cooperation d. organic networks A firm can grow through which of the following means: a. organically through internal investment b. by purchasing necessary assets and capabilities through acquisitions c. by collaborating with one or more firms through strategic alliances d. all of these A key criterion that makes a firm choose ‘to ally’ is: a. the shortage of critical resources within the current reach of the firm b. its orientation towards marketing to non-customers c. its strategic foresight d. both its orientation towards marketing to non-customers and its strategic foresight

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 Which of the following is a factor that is necessary to consider when 32 d entering alliances? a. lack of necessary internal capabilities and assets b. unavailability of needed resources for purchase in the open marketplace c. high cost or risk associated with purchasing a firm d. all of these Which of the following factors is NOT typically listed as a factor in

33

b

34

a

35

d

36

c

developing collaborative strategies? a. speed b. opinion of employees c. risk d. access to capital In the last few decades, ______ has been a preferred way for many organizations to deal with a lack of knowledge about foreign local environments and entry into such markets. a. collaboration b. takeover c. acquisition d. merger Equity alliances: a. involve the creation of a separate, new organizational entity b. do not create a new entity c. are associated with greater control d. both involve the creation of a separate, new organizational entity and are associated with greater control Non-equity alliances: a. involve contractual agreements b. refer to any form of cooperative relationship between two or more

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 firms c. both involve contractual agreements and refer to any form of cooperative relationship between two or more firms d. are not based on contractual agreements Which of the following is an example of an equity alliance:

37

a

38

a

39

d

40

d

41

a

a. joint venture b. long-term supply relationship c. licensing arrangement d. distribution agreement Which of the following is NOT an example of a non-equity alliance: a. joint venture b. long-term supply relationship c. licensing arrangement d. distribution agreement Alliances can be classified according to their strategic rationale. Which of the following are types of strategic rationale for alliances: a. a sales alliance b. a solution-specific alliance c. a geographic alliance d. all of these Competency traps lead firms to fall unconsciously into: a. adherence to routines b. denial of the need for change c. relying on past successful processes d. all of these The network form of organization can be defined as: a. a collection of two or more actors engaged in repeated and enduring exchange relations with one another, but that lacks a legitimate organizational authority to resolve disputes that may arise during

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 exchange b. casual relations between people who know each other and do business together c. a collection of individual organizations that are all owned by the same parent company d. all of these A network co-evolution approach argues that:

42

a

43

d

44

a

a. Networks shape institutions but institutions sculpt networks and direct their growth. b. Networks develop through distinct stages from embryo to organism. c. Networks evolve from a chrysalis. d. all of these Digitally networked economies have been seen as increasing: a. monopoly capitalism b. the sharing economy c. post capitalism d. all of these Alliancing success depends on which of the following factors? a. creating an alliance designer culture b. having the right machine tools c. tight legal control of the contract conditions d. all of these

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019

Test Bank Chapter 7: Strategy – Going global Below are a number of multiple choice questions relevant to this chapter. There are two to three variations on the same questions. Each question has four options; the correct answer is written in the final column. Some questions are very simple, while others are much more difficult; this should be taken into account when setting quizzes or exams.

Example of possible instruction to students: For each of the following questions, read each question carefully and then choose the answer you believe is most correct: Question and options

#

Ans.

______ can be thought of as integration in virtually every sphere,

1

b

2

d

3

d

achieved principally through international diversification of goods, services and processes across borders. a. Generalization b. Globalization c. Geographical integration d. Americanization The International Monetary Fund, in defining globalization, does NOT pay particular attention to which factor: a. trade and financial flows b. movement of people c. technologies across international borders d. domestic growth Globalization involves increasing relations among:

1

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. people b. objects c. places d. all of these It is generally agreed that globalization:

4

d

5

d

6

d

7

b

8

d

a. intensifies social relations over ever-greater distances b. links different and previously separated peoples and locales c. transforms the spatial and temporal organization of social relations and transactions d. all of these Which of the following erects obstacles and barriers to globalization? a. states and governments b. industrial players c. trade unions d. all of these Globalization is often associated with: a. westernization b. Americanization c. homogenization d. all of these Americanization refers to: a. the rise in popularity of American brands b. the influence of American culture on the culture of other countries c. the increase in American corporations entering into cross-border mergers and acquisitions d. all of these Globalization is:

2

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. a 21st century phenomenon b. a 20th century phenomenon c. a 19th century phenomenon d. all of these Foreign Direct Investment (FDI) involves ______.

9

b

10

d

11

a

12

b

a. buying shares in foreign companies listed on a stock exchange b. investment by a company based in one country in a company based in another country c. cross-border trade relations through exports and/or licensing agreements d. the exploitation of less developed countries by Western firms What does glocalization mean? a. homogenization of the local into the global b. harmonization of the local and global c. assimilation of the local by the global d. hybridization of globalization and localization Glocal strategies are followed by organizations that seek to go global by: a. entering into some form of local relationship with organizations in another country b. copying what organizations in other countries do c. allowing themselves to be taken over by companies from other countries d. all of these What is the name given to firms that defy the conventional wisdom that it is necessary to have evolved into a large firm to internationalize? a. early internationalizers 3

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. born global c. rapid expanders d. small globalizers Which of the following factors are identified as contributing to the

13

d

14

c

15

d

16

d

phenomenon of firms being ‘born global’: a. increasingly global market conditions b. new developments in transportation and communication technologies c. an increase in the available number of people with international experience d. all of these Which of the following are examples of companies that were global almost from the outset? a. Coca-Cola b. Ford c. Facebook d. Samsung Which of the following is NOT a distinctive characteristic of bornglobal firms, according to Tanev? a. high activity in international markets from or near the founding due to founder’s vision b. managers who have a strong international outlook c. emphasis on competing on cost achieved through global economies of scale d. emphasis on differentiation strategy targeting niche markets Which of the following contributes to the growth of born global enterprises, according to Tanev? a. Universities as anchor points 4

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. small home market c. demanding local clients d. all of these What does OLI stand for in Dunning’s framework, according to which

17

a

18

c

19

d

20

d

all three aspects must be present for an MNE to appear? a. ownership; location; internalization b. organization; leadership; innovation c. ownership; license; innovation d. organization; localization; internationalization Which of the following is NOT a model of global strategy promulgated in the international business literature? a. decentralized federation multinational strategy b. integrated federation international strategy c. coordinated federation international strategy d. integrated network transnational strategy Which of the following are potential drawbacks of a decentralized federation structure, where a parent company establishes different national subsidiaries? a. Decisions may be made wholly in terms of local relevancies, which may not always serve the interests of the centre. b. Duplication of effort and cost inefficiencies as each periphery replicates functions locally, on a small and more costly scale. c. Resistance to innovations from subsidiaries who view themselves as rival centres in the federation. d. all of these A matrix organization is: a. based on the movie The Matrix 5

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. modelled on a beehive c. not what it seems d. none of these Arbitrage is:

21

a

22

d

23

c

24

c

a. the practice of profiting from differences in costs and process across borders b. a process of negotiation between different interests c. a judgment made within a national legal system when contract disputes arise between parties in a cross-border relationship d. none of these Which of the following did the International Labour Organization identify as risk(s) facing workers at the end of global supply chains? a. human rights violations b. poor working conditions c. human trafficking d. all of these Globalization does NOT refer to: a. increasing internationalization b. multidirectional flows of people c. high domestic competition d. flow of material things across the world Why do domestic industrial players seek to erect barriers to globalization? a. They are ethically against it. b. They do not approve of its practices. c. They are keen to protect themselves from global competition. d. all of these 6

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 Why do trade unions seek to erect barriers to globalization?

25 a a. to ensure that the price of labour in the labour market is not reduced by people from less developed countries who will enable employers to cut labour costs b. to ensure that domestic employees won’t leave the domestic market and thus weaken the employee base of the economy c. to ensure that employers who benefit from globalization also share the profits with employees d. all of these In the MNC context, a mandate is:

26

c

27

a

28

d

29

d

a. an encounter with a potential foreign partner b. a range of tasks that are assigned to subsidiaries by headquarters c. an agreement about the transfer of knowledge from subsidiary to parent d. a political imposition of territorial sovereignty Centre–periphery relations between MNCs and their subsidiaries are invariably: a. political b. exploitative c. arms length d. all of these What is centrally important for the implementation of parent mandates? a. shared information systems b. expatriate managers c. resources for implementing the mandate d. the legitimacy of the mandate Which contextual factors frame MNC strategic options?

7

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. host country contextual factors b. subsidiary contextual factors c. headquarters contextual factors d. all of these MNC diversification into new territories is more likely to occur when:

30

d

31

d

32

a

a. Firms possess high endowments of intangible resources such as knowledge. b. Firms are in information-intensive industries seeking intangible resources such as knowledge. c. Firms’ top management teams have an elite education, low average age and great international experience. d. all of these According to Brunsson and Jacobsson, which of the following is a pressure from international standards on how an enterprise should be managed? a. how enterprises should deal with the environmental impact of their operations b. how they should manage their risks, knowledge and complaints made against them c. how they should keep their accounts and ensure regulatory compliance and probity in other ways d. all of these MNCs experience institutional duality when: a. headquarters (HQ) pressures subsidiaries to adopt its desired practices while the subsidiary is pressurized by its host context to follow local practices b. they are not sure which laws they should be following when they 8

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 operate in more than one country c. performance in the subsidiary lags that required by HQ d. none of these When ideas travel globally they are subject to ______.

33

a

34

d

35

c

36

a

37

c

a. translation b. diffusion c. stabilization d. homogenization What does the acronym BRIC stand for? a. Belgium, Romania, Iran, Cambodia b. Bulgaria, Romania, Italy, Czech Republic c. Brazil, Rwanda, Iraq, Canada d. Brazil, Russia, India, China What do the BRIC countries have in common? a. government models b. economic models c. resource-based economies d. a label Proponents of liberal markets want to limit the role of ______ as a strategic decision-maker and let the ______ decide. a. government/markets b. people/government c. markets/people d. institutions/local communities What type of government strategies do BRIC countries have in common? a. open liberal markets 9

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. protectionist policies c. imperfectly competitive markets to achieve growth simultaneously with protectionist policies d. autarchic policies Shanzai is:

38

b

39

d

a. the name of a Chinese MNC b. the name for intellectual property theft based on unlicensed copying c. a famous Chinese pirate d. all of these Globalization has been perceived by scholars in terms of: a. convergence b. divergence c. translation d. all of these

10

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019

Test Bank Chapter 8: Strategy and corporate governance Below are a number of multiple choice questions relevant to this chapter. There are two to three variations on the same questions. Each question has four options; the correct answer is written in the final column. Some questions are very simple, while others are much more difficult; this should be taken into account when setting quizzes or exams.

Example of possible instruction to students: For each of the following questions, read each question carefully and then choose the answer you believe is most correct: Question and options

#

Ans.

Which of the following comprises part of the nexus of institutions

1

b

2

c

making up corporate governance? a. criminal law b. financial market regulation c. wage regulation d. none of these The debate concerning corporate governance was initiated by: a. Burt & Means b. Means & Sparks c. Berle & Means d. Bert & Means

1

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 The debate about the nature of the corporation was initially dominated 3 b by issues of: a. organization and management b. ownership and control c. plutocrats and proletarians d. all of these How is the problem of ownership and control usually understood?

4

a

5

b

6

d

7

b

a. as an inability on the part of the owners to check the management of the corporation b. as an inability on the part of trade unions to check the management of the corporation c. as an inability on the part of the managers to manage the corporation d. all of these What percentage of consolidated share holdings is generally enough to secure control in fragmented shareholding investments in a firm? a. 1% b. 4% c. 10% d. 40% Which of the following is an influential agenda-setting report on corporate governance? a. the Lindt Report b. the Carnegie Report c. the Bourneville Report d. the Cadbury report Germany is described as having which corporate governance form? a. shareholder 2

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. stakeholder c. neither shareholder nor stakeholder d. both shareholder and stakeholder The dominant theory in corporate governance is ______.

8

c

9

b

10

b

11

a

12

a

a. RBV b. KBV c. agency theory d. Marxist theory Agency theory has which two central actors? a. manager/owner b. principal/agent c. agent/manager d. agent/artist Which of the following mechanisms are designed to induce managers to maximize stock, and thus shareholder, value? a. linking of CEO and top management team pay b. linking of CEO and top management team pay to share performance c. linking of CEO and top management team pay to innovation d. all of these The cost of monitoring management is known as ______ in agency theory. a. agency cost b. agency control c. agency effort d. none of these Effective corporate governance is a major factor in building ______. a. legitimacy 3

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. profits c. market share d. all of these What is a major problem with agency theory?

13

a

14

b

15

b

16

d

a. Agency theory is a set of abstractions with little empirical content. b. Agency theory is not part of the RBV. c. Agency theory ignores industry dynamics. d. Agency theory is difficult for institutional investors to apply.

What does the premise of agency theory fail to recognize? a. Shareholdings may be owned by major institutional investors such as pension funds. b. Owners and managers are not sharply separated and distinct entities because firms can grant managers stock options to avoid the so-called agency problem. c. Owners can exert control over management by voting them out. d. all of these According to research by Parker, boards dominated by their CEOs will be ______. a. stronger b. weaker c. more efficient d. more innovative Which of the following are problems with boards, according to your textbook? a. ritualism b. training c. concentration of powers 4

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. all of these According to Pettigrew and McNulty, what effect do norms regarding

17

a

18

d

19

b

20

c

board conduct have? a. They limit the influence of outsiders to little more than an advisory role. b. They limit attendance at annual general meetings. c. They enable creditors to exert influence over board decision-making. d. They enable part-time board members to exert influence during board meetings.

According to Pettigrew and McNulty, part-time non-executive directors typically play what role? a. giving corporate governance advice to the CEO b. conducting due diligence on company accounts c. initiating strategic proposals to management d. checking strategic proposals put forward by management What does the ‘small world’ phenomenon mean in relation to corporate governance? a. globalization b. tightly networked boardroom social relations c. that board members come from the same neighbourhood d. none of these According to Fligstein and Choo, corporate governance systems arise from: a. government choice b. the needs of owners of capital to maximize profit c. political and historical processes d. stakeholder activism 5

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 Which of the following is NOT a major model of comparative corporate 21 b governance? a. shareholder capitalism b. social capitalism c. stakeholder capitalism d. state capitalism Which country best exemplifies the shareholder capitalism model?

22

a

23

b

24

d

25

c

a. United States b. Germany c. Japan d. China Which country best exemplifies the social democratic stakeholder capitalism model? a. Austria b. Germany c. Japan d. United Kingdom What is the Mittelstand? a. an area of Germany known for innovation b. a German opera c. the German stock exchange d. none of these Where would we find Chaebol? a. Germany b. Russia c. South Korea d. Singapore 6

Where would we expect to find Keiretsu?

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 26 c

a. China b. India c. Japan d. Philippines Keiretsu make up what percentage of listed Japanese companies?

27

c

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d

29

c

30

c

a. 10% b. 25% c. 50% d. 75% What is the name usually given to the rules, values and norms through which governance occurs? a. code of control b. code of corporate citizenship c. the Koranic code a. code of ethics What does Brunsson find is normal in organizations? a. cheating b. lying c. hypocrisy d. morality Corporate governance and codes of ethics are intended to ______ organizational members. a. punish b. reward c. discipline d. motivate 7

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 What does your textbook think should be the relation between ethics, 32 b corporate governance and legal compliance: a. integrated b. clearly separate c. reciprocal d. none of these According to your textbook, a code of ethics should be developed

33

b

34

a

35

b

36

a

through: a. adherence to legal obligations b. democratic participation by organizational members c. advice from corporate lawyers d. robust debate at board level Corporate social responsibility (CSR) has been defined by the European Commission (2005) as existing when: a. Companies integrate social and environmental concerns in their business operations and in their interactions with their stakeholders on a voluntary basis. b. Companies do the right thing. c. Companies maintain their immediate environment in pristine shape. d. all of these The use of CSR reports by companies to make them ‘look good’ is often referred to as: a. brownwashing b. greenwashing c. greening d. browning In CSR performance, what is often measured is/are ______.

8

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. perceptions rather than actual performance b. philanthropy rather than actual performance c. ideals rather than actual performance d. ideas rather than actual performance A socially responsible firm is expected to report a firm’s social

37

d

38

a

39

d

40

d

performance through: a. audit b. social impact analysis c. social reporting d. all of these A socially responsible firm should exceed expectations of minimal obligations by: a. going above and beyond what is legally required in positive ways, in terms of worker and community welfare b. hiring more people annually c. increasing salaries d. all of these According to Banerjee, what should corporate CSR codes include if the firm is to become socially responsible in more than just tokenistic ways? a. extended liability to directors for corporate breaches of environmental and social laws b. rights of redress for citizens and affected communities c. sanctions against corporations for breaching their stated duties d. all of these According to Banerjee, a socially responsible firm should offer: a. provisions for stakeholders legally to challenge corporate decisions and legal aid mechanisms to provide public funds to support such 9

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 challenges b. community rights to resources, including indigenous people’s rights over common property such as forests, fisheries and minerals c. veto rights over developmental projects and against displacement d. all of these Martinuzzi and Krumay define the aim of strategic CSR as the

41

a

integration of CSR into: a. central business decisions b. central government policy c. corporate governance codes of conduct d. headquarters control of strategic business units

10

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019

Test Bank Chapter 9: Strategy processes Below are a number of multiple choice questions relevant to this chapter. There are two to three variations on the same questions. Each question has four options; the correct answer is written in the final column. Some questions are very simple, while others are much more difficult; this should be taken into account when setting quizzes or exams.

Example of possible instruction to students: For each of the following questions, read each question carefully and then choose the answer you believe is most correct: Question and options

#

Ans.

Mintzberg used ______ to establish what managers do in practice.

1

c

2

d

a. interviews b. videos c. diaries d. confessional accounts Minztberg discovered that managers ______. a. are rational planners b. are randomly disorganized c. are extremely busy d. play diverse improvisational roles

1

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 Mintzberg ______ rational planning approaches to strategy.

3 c a. favoured b. used c. criticized d. feared For Mintzberg, strategy was most likely to be based on ______.

4

d

5

c

6

b

7

a

8

d

a. planning b. following orders c. irrationality d. creative synthesis Strategy is the proper preserve of ______, according to Mintzberg. a. the organizational elites b. the organization’s workers c. emergent processes d. trade unions Mintzberg argued that strategy is best thought of as ______. a. a garbage can b. a stream of decisions made over time c. a rational planning exercise d. a stable fantasy With what model of strategy is Mintzberg most frequently associated? a. emergence b. rational c. voodoo d. spiritual Mintzberg’s critique of strategic planning proposed that it was founded on

2

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 which of the following flawed assumptions? a. formalization b. detachment c. division of labour d. all of these Which of the following is one of Mintzberg’s critiques of the strategic

9

b

10

c

11

c

12

c

planning perspective? a. qualification b. quantification c. inclusiveness d. dogmatism Which of the following comprise one of Mintzberg’s 5 P’s of strategy? a. prohibition b. personality c. positivity d. perspective Mintzberg adopted a ______ view of strategy. a. top-down b. logical incremental c. bottom-up d. sideways Mintzberg’s approach suggests that strategists formulate strategy from ______. a. the newspapers b. textbooks c. strategic thinking tools d. consultancy models 3

Quinn’s view of strategy is known as:

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 13 b

a. positive incrementalism b. logical incrementalism c. positive logicalism d. logical positivism Andrew Pettigrew’s framework of strategic change involves ______, ______

14

d

15

c

16

c

17

d

and ______. a. content, contingencies and control b. concepts, process and value c. capital, process and outcomes d. content, process and context Pettigrew’s perspective stresses the role of ______ in strategy. a. rationality b. planning c. power and politics d. policies Pettigrew is famous for which book based on his longitudinal research on strategy at ICI? a. the Sleeping Giant b. the Creative Giant c. the Awakening Giant d. the Gentle Giant Which of the following research methods is important in Pettigrew’s approach? a. comparative spatial analysis b. multiple regression analysis c. survey research 4

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. ethnography What type of learning involves learning about a problem within a given frame

18

c

19

a

20

a

21

c

22

d

of reference? a. looped learning b. single-loop learning c. double-loop learning d. outside-the-box learning What type of learning involves learning to change the frame of reference that normally guides thinking about a problem? a. looped learning b. single-loop learning c. double-loop learning d. outside-the-box learning Double-loop learning is essential for ______. a. emergent strategy b. planned strategy c. strategy success d. none of these Deutero-learning is ______. a. mainly found in books b. mainly found on websites c. largely unconscious d. highly explicit and formalized Organization culture comprises ______. a. what is found in corporate art galleries b. paintings on the walls of the board room c. statues in the gardens of the organization 5

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. the taken-for-granted ways an organization perceives its environment and itself What are the three components of culture, according to Schein?

23

a

24

c

25

c

26

d

27

c

a. artefacts/espoused values/basic assumptions b. paintings/statues/poems c. artefacts/material things/other stuff d. philosophy/politics/economics Peters and Waterman’s book was entitled In Search of ______. a. Wisdom b. Nirvana c. Excellence d. The Holy Grail Peters and Waterman endorsed the idea of ______ corporate cultures. a. playful b. weak c. strong d. popular Barney asked whether organizational culture could be a source of: a. innovation b. customer retention c. employee motivation d. sustained competitive advantage Which of the following theorists is associated with organizational sensemaking? a. Thomas Hobbes b. Sun Tzu c. Karl Weick 6

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. Gary Hamel Sensemaking produces ______.

28

a

29

c

30

a

31

a

32

c

a. a plausible narrative b. amusing stories c. detailed plans d. war games Weick (2007) defines ______ as the ongoing retrospective development of plausible images that rationalize what people are doing. a. strategy b. business planning c. sensemaking d. sensegiving According to Chandler, unless ______ follows ______, inefficiency rules. a. structure/strategy b. planning/rationality c. strategy/structure d. none of these ______ are the building blocks that frame the ______ we use. a. Metaphors/narratives b. Strategies/stories c. Metaphors/representations d. Interpretations/sense SWOT and PESTEL analysis are examples of ______ devices. a. sense-breaking b. sense-giving c. sense-making d. none of these 7

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 According to Weick, organizational environments are ______.

33 d a. objectively real b. imaginary c. non-existent d. enacted Barry and Elmes suggest that ‘______ must rank as one of the most

34

d

35

c

36

c

37

c

prominent, influential, and costly stories told in organizations’. a. the annual report b. the Bible c. advertising d. strategy Kim and Mauborgne distinguish between ______. a. red and blue ships b. red and blue chips c. red and blue oceans d. red and blue colours ______ are widely used as strategy tools in the company 3M. a. Audits b. Social impact analysis c. Stories d. None of these Who originated the storytelling approach? a. Michael Porter b. Henry Mintzberg c. David Boje d. Edith Penrose

8

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 Ezzamel and Willmott propose that strategy is best thought of as: 38 c a. an objective science b. a subjective process c. a discourse d. a discipline

9

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019

Test Bank Chapter 10: Strategy practice Below are a number of multiple choice questions relevant to this chapter. There are two to three variations on the same questions. Each question has four options; the correct answer is written in the final column. Some questions are very simple, while others are much more difficult; this should be taken into account when setting quizzes or exams.

Example of possible instruction to students: For each of the following questions, read each question carefully and then choose the answer you believe is most correct: Question and options

#

Ans.

The study of the organizational work done by people when engaged in

1

c

2

d

strategizing is known as the ______ approach. a. narrative b. RBV c. strategy as practice d. process Which of the following are standard strategy practices? a. PESTEL b. SWOT c. BCG matrix d. all of these

What does O stand for in SWOT?

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 3 b

a. organization b. opportunities c. optimization d. opposition What does T stand for in SWOT?

4

c

5

a

6

c

7

a

a. treats b. tensions c. threats d. terrorism According to your textbook, which of the following is a way of viewing strategy as practice? a. as a perspective b. as potential c. as persuasive d. all of these According to your textbook, which of the following is a way of viewing strategy as practice? a. as a picture b. as property c. as a phenomenon d. as a pest According to your textbook, which of the following is a way of viewing strategy as practice? a. as philosophy b. as poetry c. as purple

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. as philanthropic What does it mean to say that strategy practice is ‘performative’?

8

b

9

b

10

d

Strategy as practice is premised on the notion that strategy analysis must 11

b

a. It produces performance art from real-life stories. b. It produces realities from theoretical knowledge. c. It produces plays from analysis. d. all of these Strategy as practice seeks to study strategy ______ and ______. a. theoretically and practically b. anthropologically and sociologically c. empirically and a priori d. universally and specifically In strategy as practice perspectives, what does rhetoric do? a. describes b. negates c. conjectures d. legitimates take ______ seriously. a. analytic models b. strategic planning c. emergent strategy d. social practices Flyvbjerg (1998, 2002) demonstrated how different agencies and authorities in the Danish city of Aalborg sought to ______ their particular versions of rationality as the strategy to be followed. a. rationalize b. romanticize c. repair

12

a

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. rusticate According to Samra-Fredericks, which of the following is a crucial

13

b

14

a

15

d

16

b

17

b

aspect of strategic communication? a. information b. intelligibility c. intentionality d. instinct According to Samra-Fredericks, which of the following is NOT a factor defining interpersonal competence as a strategist? a. analytic skill b. speaking forms of knowledge c. questioning and querying d. deploying metaphors Strategy talk seeks to create ______, such as this is the competitive threat; these are the strategic opportunities; these are the desired innovations. a. slogans b. signposts c. subjective stressors d. objective facts Nancy Duarte shows how stories that succeed are ones that use rhythm and repetition to contrast ______. a. rhetoric with reality b. the status quo with the future c. the mundane with the extraordinary d. belief with rationality What is the narrative structure described by Campbell (1988) which is

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 often found in biographical accounts of CEOs? a. ballad b. heroic c. poetic d. psychoanalytic Kaplan analysed which mundane aspect of strategy work?

18

c

19

b

20

b

21

a

a. models b. meetings c. PowerPoints d. audiences What does Kaplan term the situation where a strategy is designed as a PowerPoint presentation? a. rational strategy b. cartographic strategy c. simple strategy d. stupid strategy A strategy tool that allows communication across the boundaries of organizations, between different divisions, disciplines and departments is termed a ______. a. transfer object b. boundary object c. communication device d. none of these Strategy as practice research has shown that strategy tends to be marked by unreflective acceptance of ______. a. unconscious assumptions and beliefs b. explicit beliefs c. hard data

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. theoretical models According to Spee and Jarzabkowski, strategy tools work in practice

22

b

23

d

24

c

25

d

26

d

both ______. a. ideationally and pragmatically b. instrumentally and symbolically c. instrumentally and ideationally d. pragmatically and theoretically Highly legitimated sensemaking forms an institutional ______. a. value b. structure c. prison d. logic Why might for-profit organizations be easier to manage than not-forprofit organizations? a. They are more homogenous b. They are less socially responsible c. They have one dominating logic d. all of these Consultants can introduce new ______ into practice. a. conversations b. tools c. rituals d. all of these Consultants offer which of the following functions for strategists? a. organizational therapy b. organizational retooling c. organizational surgery d. all of these

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 Who is a prominent proponent of scenario planning?

27 a a. Oliver Freeman b. Carl Perkins c. Gene Vincent d. Vince Taylor According to Mantere, strategic champions ______.

28

a

29

b

30

d

31

a

32

c

a. influence strategic issues beyond their immediate operational responsibilities b. are usually top managers c. tend to come from consultancy firms d. all of these Adaptive strategies lead to some form of ______. a. closure b. improvisation c. sensemaking d. sensegiving Recursive strategies ______ the status quo. a. threaten b. change c. rattle d. none of these According to Mantere, recursive approaches to strategy tend to emphasize ______. a. rational planning b. stories c. metaphors d. all of these Carroll, Levy and Richmond identified seven areas of self-insight into

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 leadership practice: ______, process, consciousness, awareness, ______, everydayness and identity. a. habits/control b. language/human resources c. errors/problems d. values/emotions Transformational leaders are generally thought to need to be ______.

33

b

34

c

35

d

36

c

a. pedants b. charismatic c. transactional d. all of these Celebrity CEOs work on the ______ dimension of power in Lukes’ theory of power. a. 1st b. 2nd c. 3rd d. 4th Celebrity is a key ______ for a firm. a. handicap b. problem c. tangible benefit d. intangible asset When the celebrity CEO dies, retires or is discredited, the problem of ______ arises. a. finding an equally charismatic successor b. persuading investors not to leave c. routinizing charisma d. winding up the organization

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 According to Khurana, the public profile of the CEO as celebrity 38 a encourages: a. investment decisions b. employee motivation c. stock price movements d. all of these

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019

Test Bank Chapter 11: Strategy and organizational politics Below are a number of multiple choice questions relevant to this chapter. There are two to three variations on the same questions. Each question has four options; the correct answer is written in the final column. Some questions are very simple, while others are much more difficult; this should be taken into account when setting quizzes or exams.

Example of possible instruction to students: For each of the following questions, read each question carefully and then choose the answer you believe is most correct: Question and options

#

Ans.

Strategies can go awry because of:

1

c

2

a

3

d

a. unforeseen externalities b. organizational politics c. both unforeseen externalities and organizational politics d. neither unforeseen externalities nor organizational politics Which thinker is associated with the political perspective: a. Machiavelli b. Mintzberg c. Sun Tzu d. Ansoff Organizational politics is the use of ______ to advance self-interest. a. knowledge b. position c. networks d. all of these 1

Interests can be defined in terms of:

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 4 d

a. the relations between actors b. discursive rationalities c. structural positions d. all of the above A strategic interest emerges when:

5

c

6

a

Mintzberg identified which of the following as political games played in 7

a

a. there is something at issue, which divides opinions b. there is something at issue, on which people take sides c. both there is something at issue, which divides opinions and there is something at issue, on which people take sides d. neither there is something at issue, which divides opinions nor there is something at issue, on which people take sides In organizations, ______ have strategic interests. a. all actors b. only a few actors c. some actors d. only CEOs organizations: a. sponsorship games b. legacy games c. Machiavellian games d. sporting games Fligstein found that the background of CEOs in the USA changed in the

8

d

second half of the 20th century from ______ to ______. a. finance to operations b. operations to finance 2

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. finance to marketing d. marketing to finance Power games played between organizational sub-groups are often

9

b

10

a

11

d

12

d

referred to as: a. in-fighting b. micro-politics c. face saving d. point scoring Political skill entails: a. using knowledge astutely in a manner that best serves the strategic interest one is seeking to advance b. using knowledge to corner and belittle the opponent c. always claiming to be right d. never losing a battle Crick (2004) defined politics as: a. the mobilization of support for a position b. the mobilization of support for a decision c. the mobilization of support for an action d. all of these What do organizational politics arise from, according to Pettigrew? a. structural divisions in the organization between different component elements and identities with different values, affective, cognitive and discursive styles b. the complexity and the degree of uncertainty attached to the dilemma that strategy seeks to address c. the salience of issues for different actors and identities in the organization 3

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. all of these What do organizational politics arise from, according to Pettigrew?

13

c

14

d

15

a

16

b

a. the external pressure coming from stakeholders or other actors or organizations in the environment b. the history of past politics in the organizations in question c. both the external pressure coming from stakeholders or other actors or organizations in the environment and the history of past politics in the organizations in question d. neither the external pressure coming from stakeholders or other actors or organizations in the environment nor the history of past politics in the organizations in question Organizations are often lived and experienced as a series of ‘turf wars’ between: a. different branches b. different divisions and departments c. different occupations and cultures d. all of these Power is ultimately deployed in: a. games of organizational symbolism b. simulation games c. both games of organizational symbolism and simulation games d. neither games of organizational symbolism nor simulation games Power is: a. something you have or possess b. always relational c. absent in an organization d. not used in strategic decision-making 4

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 Power only begins to be organizationally meaningful when: 17 c a. stakeholders agree on specific decisions b. stakeholders disagree on specific decisions c. the relations of organizational power enable you to do certain things that others may be restricted from doing d. none of these Organizational power involves a relation:

18

c

19

a

20

a

a. in which you can get another person to do something b. in which you can get another person to do something in a manner that accords with your expressed intentions as to how it should be done c. both in which you can get another person to do something and in which you can get another person to do something in a manner that accords with your expressed intentions as to how it should be done d. neither in which you can get another person to do something nor in which you can get another person to do something in a manner that accords with your expressed intentions as to how it should be done Organizations are devices for: a. distributing power relations b. negating power relations c. stopping power relations d. transforming power relations Political competence means being the kind of manager who can get things done: a. despite resistance b. without resistance c. ignoring resistance d. none of these 5

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 Power relations are typically thought of as being distributed spatially in 21 d organizations: a. up b. down c. across the organization d. all of these Internal tournaments occur where strategic proposals are based on

22

d

23

b

24

d

25

c

specific: a. spheres of competence b. functional responsibilities c. disciplinary knowledge d. all of these Strategies need circuits of ______ to be implemented. a. knowledge b. power c. communication d. boundary objects Which of the following is NOT a dimension of power in Lukes’ framework? a. formal decision-making b. non-decision-making c. the existing order of things d. empowerment Any successful strategy will be premised on: a. knowledge b. power c. both knowledge and power 6

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. neither knowledge nor power What is the relationship between power and knowledge?

26

d

27

a

28

b

29

a

30

a

a. Power is based on knowledge. b. Power uses knowledge. c. Power reproduces knowledge. d. all of these A strategic decision can be defined as a decision that: a. has long-term organizational implications for key success factors, such as access and control of resources and effective performance b. is sanctioned by those with power c. gains approval of the top management team d. is the outcome of political contests Who is credited with coining the term bounded rationality? a. James March b. Herbert Simon c. Henry Mintzberg d. Richard Cyert Who is credited with coining the term satisficing? a. James March b. Herbert Simon c. Henry Mintzberg d. Richard Cyert The garbage can is: a. a metaphor of organizational decision-making b. a flawed set of assumptions about organizational decision-making c. a framework for improving organizational decision-making d. none of these 7

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 The garbage can model of organizational decision-making states that: 31 c a. organizations need to gather lots of information from diverse sources to inform decisions b. decisions should be made when solutions, problems, participants and choices are an optimal fit c. decisions are made when solutions, problems, participants and choices coincide in often random ways d. decisions are made when solutions, problems, participants and choices are brought together in carefully planned ways The garbage can seeks to capture the image of which of the following?

32

a

33

a

34

a

35

b

a. problems and solutions b. rubbish c. opportunities d. threats A decision gets made when all elements of the garbage can: a. coincide at a certain point b. always coincide c. never coincide d. none of these Which of the following statements is correct? a. The garbage can emphasizes the contingent nature of decisionmaking. b. The garbage can emphasizes the anarchic nature of decision-making. c. The garbage can emphasizes the random nature of decision-making. d. The garbage can emphasizes the political nature of decision-making.

Organizational subgroups form coalitions to try to frame ______ in decision-making according to their ______.

8

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. identities/ideas b. issues/ideologies c. politics/ideologies d. issues/interests When a strategy proceeds that favours a dominant group this is known

36

b

37

a

38

a

39

d

as: a. the mobilization of will b. the mobilization of elites c. the mobilization of bias d. the mobilization of vested interests The Top Decisions research at the University of Bradford was mainly interested in answering which of the following questions? a. how strategic decisions are structured as processes b. how strategic decisions should be made c. why the decision made was a good decision d. none of the above Which of the following was NOT an independent variable in the Top Decisions research, thought to have an impact on the nature of the decision-making process? a. the gender of the managers b. the type of organizational context c. the level of politics associated with a decision d. the complexity of the decision The Top Decisions research identified which of the following decisionmaking processes? a. sporadic decisions b. fluid decisions 9

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. constricted decisions d. all of these The Top Decisions research found that the average time taken to make a

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a

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strategic decision was: a. one month b. six months c. twelve months d. two years The Top Decisions research identified what time difference between decision-making in public sector and private sector organizations? a. little difference b. Public sector organizations took longer to make decisions. c. Private sector organizations took longer to make decisions. d. Public sector organizations never made decisions but kept putting them off.

The Top Decisions research defined a sporadic decision as one that: a. involves many interests and tends to move horizontally in the organization b. tends to move vertically in the organization and exhibits stops and starts c. both involves many interests and tends to move horizontally in the organization and tends to move vertically in the organization and exhibits stops and starts d. neither involves many interests and tends to move horizontally in the organization nor tends to move vertically in the organization and exhibits stops and starts The Top Decisions research defined a constricted decision as one that:

10

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. deliberately constricts participation by those lower down in the organizational hierarchy b. on matters of familiar problems and involving familiar interests requires little debate c. tries to constrict the number of vested interests that vie to define a problem d. keeps issues off the agenda through the use of power A non-decision means that:

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a. important questions and issues are not raised b. important decisions are forgotten c. minor decisions are not made d. minor decisions do not make it onto the agenda

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Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019

Test Bank Chapter 12: Strategy and strategic change Below are a number of multiple choice questions relevant to this chapter. There are two to three variations on the same questions. Each question has four options; the correct answer is written in the final column. Some questions are very simple, while others are much more difficult; this should be taken into account when setting quizzes or exams.

Example of possible instruction to students: For each of the following questions, read each question carefully and then choose the answer you believe is most correct: Question and options

#

Ans.

Strategic change could involve ______.

1

d

2

d

a. a change in the direction and scope of an organization b. reconfiguring organization cultures c. introducing a new IT architecture d. all of these According to Balogun and Hope Hailey, what percentage of strategic change projects is thought to fail to achieve their aims? a. 10% b. 25% c. 50% d. 70%

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 According to your textbook, what do Whittle and Mueller think makes a 3 c change ‘strategic’? a. what stakeholder needs it addresses b. what the market demands c. what the powerful decide is strategic d. all of these The process of defining, categorizing or labelling a particular change as

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b

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d

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c

______ is both an ______ of an ongoing ______ process and is itself a ______ act. a. strategic/action/leadership/dynamic b. strategic/outcome/political/political c. necessary/outcome/strategic/masterful d. none of these Which of the following could be a strategic change? a. moving from a focus on cost towards differentiation through superior product or service features b. selling new products/services to existing customers or selling existing products/services to new customers c. decisions to integrate activities previously done by suppliers or decisions to outsource activities previously done in-house d. all of these Which of the following would NOT be associated with the sociopolitical approach to understanding the causes of change? a. political contests between business units vying for power or resources b. new leaders seeking to display strong leadership through a symbolic break with the past c. gathering information about the threats and opportunities posed by changes in the external environmental

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. fads and fashions in management thought driven by gurus and consultants What is strategic drift?

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d

Which of the following is a good example of a firm that has experienced 8

c

a. strategies that enable the firm to keep pace with changes in the strategic environment b. radical changes that enable the firm to make sudden shifts in strategy to match major changes in the strategic environment c. incremental changes that enable the firm to make small steps to keep pace with minor changes in the strategic environment d. failing to keep pace with incremental changes in the strategic environment over a period of time strategic drift? a. Google b. Apple c. Blockbuster d. Facebook The strategic environment is best thought of as ______, according to

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c

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c

your textbook? a. objective reality b. nature c. a dynamic and interactive process d. all of these Meyer analysed the strategic choices made by three hospitals in the face of ______. a. changed market conditions b. a terrorist outrage c. a strike

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. an earthquake The set of core beliefs and assumptions that get embedded in the

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b

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c

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d

organization over time are referred to by Gerry Johnson as the organization’s ______. a. strategic disadvantage b. paradigm c. strategic advantage d. all of these A ______ is usually deeply ______, according to your textbook. a. system/flawed b. culture/divided c. paradigm/institutionalized d. all of these The trigger to reflect on – and think about changing – the organization’s dominant paradigm could come from which source? a. a sudden decline in sales performance b. an unexpected innovation by a competitor c. a strike amongst employees d. all of these What does SARFIT stand for? a. strategic adaptation required for information technology b. strategic adjustment required to fit expectations for legitimacy c. strategic agility recognized for international trade d. strategic adjustment required to regain fit Studies have consistently found that what percentage of mergers fails? a. 10–30% b. 30–50% c. 50–70%

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. 70–90% What does a contingency view of strategic change suggest?

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a. ‘One size fits all’ models are wrong. b. ‘One size fits all’ models are right. c. There is no model. d. none of these What does the term evolutionary change mean? a. changes in corporate DNA b. a small adaptation consistent with the organization’s core paradigm c. new people in the organization with new DNA d. none of these What does the term revolutionary change mean? a. a Marxist social movement b. warfare c. a large shift that breaks with the organization’s core paradigm d. none of these Revolutionary change is sometimes referred to as ______ change. a. radical b. breakthrough c. Marxist d. critical Evolutionary change is sometimes referred to as ______ change. a. slow b. incremental c. conservative d. laggard Change in Lewin’s terms involves three ______. a. learning loops

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. steps c. mental models d. none of these What is the third phase of Lewin’s model of change?

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a. thawing b. freezing c. refreezing d. icing up Why do Clegg, Kornberger and Pitsis argue that the ‘root metaphor of unfreezing/freezing is profoundly problematic’? a. organizations don’t get cold b. organizations don’t freeze c. organizations are always in motion d. organizations are centrally heated What is the third step in Kotter’s model of strategic change? a. create a vision for the future b. form a powerful coalition c. remove obstacles d. create a sense of urgency What is the last step in Kotter’s model of strategic change? a. build on the change b. remove obstacles c. anchor the change in corporate culture d. anchor the change in IT systems Dunphy and Stace identify which dimension as crucial to change? a. scale of change b. emotion of change c. speed of change

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. tools of change Which of the following is NOT a type of change in Dunphy and Stace’s

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framework identify? a. guided evolution b. participative evolution c. charismatic transformation d. dictatorial transformation Where an organization has little time available to implement a radical transformation that has little or no support amongst affected stakeholders, what kind of change approach do Dunphy and Stace suggest would work best? a. participative b. facilitated c. democratic d. dictatorial Sensegiving refers to the process through which strategists a. attempt to influence the sensemaking of others towards a preferred version of reality b. attempt to interpret confusing or ambiguous cues c. use frames to generate meaning d. use frames to impose meaning Rouleau and Balogun argue that middle managers undertake ______ and ______ during periods of strategic change. a. scene stealing/dominating the conversation b. scene setting/building a conversation c. scene setting/performing the conversation d. scene making/facilitating conversations Sense-making perspectives consider organizations to be ______

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 systems. a. information b. data c. interpretative d. none of these What strategic problem changed the New York Port Authority’s

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b

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b

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d

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a

sensemaking about their strategy? a. flooding b. homelessness c. terrorism d. earthquake Which of the following is the key strategic change skill, according to your textbook? a. planning b. storytelling c. data mining d. accounting Which of the following are prevalent metaphors of strategy, according to your textbook? a. game b. engineering c. biological processes d. all of these What metaphor of strategy does Cespedes deplore in the Harvard Business Review? a. warfare b. celebrity c. bureaucracy

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. anarchy Framing is the process through which people ______ the meaning of an

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event or experience through the use of symbolic constructs, such as words, images or metaphors. a. record b. picture c. socially construct d. display Your textbook states that during strategic change ‘politics is ______’. a. best avoided b. a source of cognitive dissonance c. best avoided and a source of cognitive dissonance d. normal According to a survey by Badham, the majority of respondents agreed that: a. politics can be used to start up and drive useful change initiatives b. politics can be effective in dealing with resistance to change c. politics can be used to slow down and block useful change initiatives d. all of these Your textbook states that during strategic change ‘resistance is ______’. a. best avoided b. a source of cognitive dissonance c. best avoided and a source of cognitive dissonance d. normal Which TWO of the following are NOT a reason for resistance to change identified by Kotter and Schlesinger (1979)? a. parochial self-interest b. failure to understand the strategic problem

d

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. low tolerance for change d. militant attitudes Which of the following dimensions are NOT types in Ashforth and

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Mael’s typology of types of resistance to change? a. explicit and implicit b. targeted and diffuse c. facilitative and oppositional d. authorized and unauthorized Zoller and Fairhurst coined the term: a. facilitative leadership b. collaborative leadership c. resistance leadership d. political leadership

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019

Test Bank Chapter 13: Strategy reconsidered Below are a number of multiple choice questions relevant to this chapter. There are two to three variations on the same questions. Each question has four options; the correct answer is written in the final column. Some questions are very simple, while others are much more difficult; this should be taken into account when setting quizzes or exams.

Example of possible instruction to students: For each of the following questions, read each question carefully and then choose the answer you believe is most correct: Question and options

#

Ans.

Economic neo-liberalism sees ______ as the defining characteristic of

1

a

2

c

human relations. a. competition b. monopoly c. price-fixing d. all of these Adam Smith saw the theory of ______ as central to the study of economy and society. a. pricing goods b. transaction efficiency c. moral sentiments d. custom and practice

What was the name of the first strategy journal?

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 3 d

a. strategic organization b. organization studies c. monthly planning review d. long range planning Jensen and Meckling made what theory popular in corporate circles?

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b

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a

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d

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a

a. contingency theory b. agency theory c. social theory d. none of these Your textbook says of the ‘patchwork quilt’ of strategy theories that they are ______. a. devices that help induce empirical states of affairs that correspond to their theoretical objects b. rational accounts that correspond to objective realities c. too abstract to be of much practical use d. all of these According to your textbook, strategy is an essential part of any serious senior managers’ ______. a. tool box b. locker c. lunch box d. repertoire The antithesis of Keynesianism is ______. a. neo-economic liberalism b. Marxist economics c. autarchy

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. none of the above The number of American companies listed on the stock market dropped

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by what percentage between 1996 and 2012? a. 25% b. 10% c. 50% d. 5% The upshot of the political and economic changes that occurred from 1980 onwards was a significant shift in the ______ share of the economy. a. wages/profit b. corporate/non-profit c. dynamic/static d. market/non-market Research by Davis and Mishel showed that CEO compensation (inflation-adjusted) increased by what percentage between 1978 and 2013? a. 37% b. 337% c. 637% d. 937% Research by Davis and Mishel showed that the average worker’s compensation (inflation-adjusted) increased by what percentage between 1978 and 2013? a. 10.2% b. 52% c. 102% d. 502%

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 In 2014, the richest 1% of people in the world owned what percentage of 12 d global wealth? a. 10% b. 22% c. 36% d. 48% According to 2015 data, how many people own as much as the poorest

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half of the world’s population? a. 1,000,000 b. 100,000 c. 587 d. 62 The practice of billing costs from an entity in a higher tax regime to an entity in a lower tax regime is called: a. transfer pricing b. arbitrage c. tax evasion d. none of these What do Chakravarty and Downing argue created and sustained ‘the reckless and myopic culture of risk and unhinged speculation associated with global financial markets’ associated with the Global Financial Crisis? a. digital technologies b. management consultancy firms c. accountants d. regulators ______ and ______ were two early theorists of the contemporary capitalist crisis.

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. Phil Everly, Don Everly b. John Donne, A.E. Houseman c. Jurgen Habermas, James O’Connor d. Bent Flybvjerg, Lars von Trier According to O’Connor, the state in a capitalist society exhibits

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contradictions in trying to fulfil which two roles? a. supporting capital accumulation and the legitimization of capitalist society b. balancing stakeholder and shareholder value c. ensuring democracy and responding to lobbyists d. maintaining social welfare and raising tax income According to O’Connor, the ‘structural gap’ refers to: a. The gap in tax revenue between geographic regions b. the gap in tax revenue between high-income and low-income individuals c. the gap in tax revenue between large and small firms d. the gap between the demands for state activity and the state’s ability to raise revenue to pay for these demands Financialization means: a. the processes through which the performance of financial capital becomes the key measure of economic worth in the corporate world and civil society more generally b. a highly indebted situation in the economy due to the burden of national debt c. becoming a cash-rich and high net-worth individual d. none of these As well as The Wealth of Nations, Adam Smith also wrote a book called ______.

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 a. The Birth of the State b. The Birth of Financial Capitalism c. The Theory of the Firm d. The Theory of Moral Sentiments When an abstract concept takes on seemingly lifelike properties, we can

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c

According to your textbook, which of the following became increasingly 21

c

refer to it as ______. a. nom de plume b. a priori c. reification d. none of these institutionalized after the new economic liberalism of the Reagan/Thatcher era of the 1980s? a. sociology b. political science c. business ethics d. cultural studies Powell draws on Bowne’s (1908) contrast between ______ and ______

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b

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d

theorizing. a. liberal/fascist b. mechanical/organic c. abstract/concrete d. humanistic/economic Rather than seeing markets as anonymous interactions of exchange, through which actors exercise rational choice so as to maximize their utility, the new economic sociology focuses instead on ______. a. socially embedded structural dimensions b. socially embedded cultural dimensions

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 c. socially embedded cognitive dimensions d. all of these In order for any market to function properly, market actors must embed

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the market in a network structure that produces the necessary ______ among market participants for them to engage in economic exchange. a. faith b. beliefs c. trust d. stimulus What corporate scandal does the textbook feature to illustrate the role of moral sentiments and shared cognitive structures in contemporary strategy? a. BP Deepwater Horizon pollution scandal b. FIFA corruption scandal c. Toshiba accounting scandal d. VW emissions scandal What futures does your textbook see as important for future strategy? a. digital futures b. speculative futures c. financial futures d. all of these How does the World Commission on Environment and Development define sustainability? a. having a ‘triple bottom line’ b. meeting the needs of the present without compromising the ability of future generations to meet their own needs c. doing no harm, leaving no trace d. adding value to the environment

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 According to Perrey (2016), what ‘must be tempered so that 28 a organizational actions do not degrade or damage the environment in ways that would inhibit future generations being able to share those same environmental resources’? a. sustainable economic growth b. sustainable competitive advantage c. significant economic growth d. all of these An example of a non-sustainable business practice is:

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a. a car company that pursues short-term profits by misleading regulators and customers as to the levels of emission that its vehicles create b. mineral exploitation that leaves the environment despoiled c. regarding emissions and effluents as externalities that the community must bear d. all of these In the concept of sustainable competitive advantage (SCA), the term ‘sustainable’ refers to: a. sustainability measures included in the Human Development Index (HDI) b. the triple bottom line c. sustainability of a strategic advantage vis-à-vis competitors d. all of these The UN framework for Teaching and Learning for a Sustainable Future suggests that the dimensions of sustainable development should include: a. social dimensions b. social and ecological dimensions c. social, ecological and economic dimensions

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 d. social, ecological, economic and political dimensions What is a weakness of Pareto type efficiency measures of sustainability?

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Which of the following is an essential part of sustainability, according to 34

a

a. intra-nationally focused b. ignores distributional differences between nations c. both intra-nationally focused and ignores distributional differences between nations d. none of these What model of the state does Giddens advocate to develop a more sustainable strategy for the future? a. an assuring state b. an interventionist state c. an ensuring state d. an insuring state your textbook? a. a carbon tax b. a value added tax c. a goods and services tax d. all of these Perrey argued that ______ is in large part formed through ______.

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a. moral action/aesthetic sensibilities b. moral action/politics c. moral action/economics d. all of these The power of corporations to act as sovereign agents in the context of the free market jeopardizes ______ that depend on the deliberation and equivalence of powers between individuals, according to your textbook. a. economic values

Instructor Resource Clegg, Strategy: Theory and Practice, 3e SAGE Publishing, 2019 b. democratic values c. social values d. all of these