SOLVED

11Managers with a strong need for security are most likely to favour a.stable performance b.leading the market c.aggressive growth targets d.a high debt/equity ratio 12Managerial preferences have an indirect role on the a.strategic choices b.environmental assessment c.risk levels d.break-even point 13A frozen preference occurs when a manager a.abandons a strategic option b.follows a ‘wait and see’ position on a strategic issue c.takes a high-profile position on a strategic issue d.recycles a strategic option 14Managerial preferences are formed by the interaction of a.needs, wants, and requirements b.achievement goals, personal attributes, and the financial performance of the firm c.values, salary level, and Board preferences d.needs, beliefs, and situational pressures 15Strategic proposals that are extensions of the current strategy are most likely to generate a.controversy b.agreement c.disagreement d.negativity 16One technique for addressing minor discrepancies between the required and observed strategic preferences of the management team is to a.rework all of the proposals b.reassign one of the managers c.combine two or three of the proposals d.compare the forecasts of firm performance 17When persuasion fails to resolve moderate conflict between required and observed managerial preferences, modifying the strategy may not be the best solution because the new proposal a.has insufficient support to be successful b.could fail the test of product market focus c.will stall the analysis process d.has to be compatible with the environment and the resources 18Organizational change will likely be required to resolve conflicts of a.mission over vision b.product market focus c.sustainability d.required and observed management preferences 19Minimal conflict between required/observed management preferences often occurs in situations involving a.strong leaders b.engaged Boards of Directors c.strong unions d.vocal stakeholders 20A cohesive management group that endorses a strategic initiative inconsistent with the strategic needs of the business could be considered an example of a.a politicized work environment b.frozen preference c.group think d.network effects 21The easiest way to reconcile the strategy/managerial preferences linkage is by a.taking organizational action b.asking the Board of Directors to decide c.modifying strategy d.deferring a decision 22Strategy needs to be consistent with the firm’s management preferences as well as with the management preferences of a.customers b.suppliers c.regulators d.competitors 23Persuasion and changes in job context are examples of a.informal leadership b.strategy modification techniques c.management functions d.organizational actions 24The purpose of management preference analysis is to establish the degree of fit between strategy and the a.motivations of the Board of Directors b.priorities of the stakeholders c.motivations of key managers d.resources of the firm 25The objective of management preference analysis is to a.eliminate inconsistencies between the goals of the firm and managerial inclinations b.resolve conceptual biases c.foster internal commitment to the preferred strategic option d.achieve consistency between the motivations of key managers and strategy