Chapter 10Current Trends In Strategic Management1

Topics: Financial crisis of 2007–2010, Strategic management, Firm Pages: 8 (2518 words) Published: December 7, 2014
Chapter 10
Current Trends in Strategic Management

1. The ‘Great Recession’ occurred in the first half of the twentieth century. @Pages and References: Pages 459-462
a. T
*b. F

2. Global stock markets boomed in the 1990s but did not hit peak 2000 levels again for a considerable time (more than ten years). @Pages and References: Pages 460-462
*a. T
b. F

3. Despite economic and financial troubles, politically and socially the first decade of the twenty-first century started smoothly. @Pages and References: Pages 462-463
a. T
*b. F

4. Many commentators predict that China will overtake the USA as the world’s largest economy by 2025. @Pages and References: Pages 462-463
*a. T
b. F

5. A lack of social legitimacy could bring down yet more investment or commercial banks. @Pages and References: Pages 463-465
*a. T
b. F

6. The Enron, Worldcom and Madoff scandals all featured the agency problem of asymmetric information: Managers had created financial losses and then lied to the Principals (shareholders) about it. @Pages and References: Pages 463-465

*a. T
b. F

7. The current macro-environment is very sensitive to small movements because of the highly unstable macroeconomic balance. @Pages and References: Pages 465-470
a. T
*b. F

8. The global financial crisis showed that the Boards of most financial institutions understood the risks they were running, but did not tell shareholders the extent of these risks until too late. @Pages and References: Pages 465-470

a. T
*b. F

9. In the 1990s and 2000s regulation and restrictions on all kinds of banks were loosened in part because politicians wanted the wealth and jobs created by the financial sector itself. @Pages and References: Pages 465-470

*a. T
b. F

10. The new leaders value emotional intelligence because they can use it to motivate employees emotionally as well as intellectually. @Pages and References: Pages 465-470
a. T
*b. F

11. The new leaders are fearless, hard-charging men and women who understand their businesses deeply and accept full responsibility. @Pages and References: Pages 465-470
a. T
*b. F

12. Empirical research into leadership tends to conclude that successful leaders have many different characteristics and approaches to dealing with people. @Pages and References: Pages 465-470
*a. T
b. F

13. Systems poised on the edge of chaos can interestingly make either small incremental changes or small discrete changes. @Pages and References: Pages 470-471
a. T
*b. F

14. Because large firms are inherently complex they are also unpredictable to some extent. @Pages and References: Pages 471-474
*a. T
b. F

15. Firms may have to continually restructure some part of themselves to exploit their own innovative and entrepreneurial capabilities. @Pages and References: Pages 471-474
*a. T
b. F

16. To handle a more complex business environment firms must look to their inner resources and capabilities, select the best, then hone these core capabilities to perfection. @Pages and References: Page 475

a. T
*b. F

17. Parallel learning structures are designed to keep employees apart so that interaction and communication about new products is restricted to those who need to know. @Pages and References: Pages 475-478

a. T
*b. F

18. Typically we are now seeing the replacement of many informal structures with a single formal structure that unifies the company. @Pages and References: Pages 478-480
a. T
*b. F

19. An ambidextrous organization combines multiple capabilities so that it can progress either through gradual changes or by occasional dramatic leaps. @Pages and References: Pages 478-480
*a. T
b. F

20. Organizational identity is the link between a firm’s externally-perceived position and its internal self-image. @Pages and References: Page 479
*a. T
b. F

21. The original cause of the Great Recession was:
@Pages and References: Pages 459-462
a. A tsunami in the Pacific Ocean
b. The ‘Euro’...

References: Pages 480-483
a. May have to change in the next few years
*b. Remain robust and valid
c. Were invented a hundred years ago and should last for another century
d. Have been replaced by complexity theory
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