Essay Questions Chapter 7 Policy and Strategy Management 86. To achieve long-term prosperity, strategic planners commonly establish long-term objectives in which seven areas? Describe each briefly. Please refer to the discussion titled "Long-Term Objectives," on pages 179-180. Learning Objective: 1 87. What seven criteria should be used in preparing long-term objectives? What is the purpose of each? Please refer to the discussion titled "Qualities of Long-Term Objectives" on pages 180-182. Learning Objective: 2 88. Describe the balanced scorecard as a framework to translate a strategy into operational terms. How does it achieve this? Please refer to the discussion titled "The Balanced Scorecard," on pages 182-183. Learning Objective: 2 89. How does low-cost leadership differ from a differentiation strategy and a focus strategy? Please refer to the discussion titled "Generic Strategies," on pages 183-185. Learning Objective: 3 90. What is the premise behind the value disciplines proposed by Treacy and Wiersema? Identify all three and discuss each briefly. Please refer to the discussion titled "The Value Disciplines," on pages 185-187. Learning Objective: 4 91. What is meant by "concentrated growth" strategy? What are the risks and rewards of this strategy? Please refer to the discussion titled "Concentrated Growth" on pages 188-191. Learning Objective: 5 92. Compare and contrast market development and product development, citing one example of each. Please refer to the discussions titled "Market Development" and "Product Development," on pages 191-194. Learning Objective: 5 93. What strategy is being used when the firm acquires other firms that supply it with inputs or are customers for its outputs? Describe the reasons for choosing this strategy. Please refer to the discussion titled "Vertical Integration," on pages 197-198. Learning Objective: 5 94. Describe some general motivations behind diversifying a firm. Please refer to the discussion titled "Motivation for Diversification," on page 199. Learning Objective: 5 95. Differentiate between joint ventures and strategic alliances. Describe the comparative benefits of each type of strategy. Please refer to the discussions titled "Joint Ventures" and "Strategic Alliances," on pages 206208. Learning Objective: 5 Chapter 6 Policy and Strategy 78. Describe the elements of SWOT analysis. Please refer to the discussion titled "SWOT Analysis: A Traditional Approach to Internal Analysis," on pages 153-155. Learning Objective: 06-01 Understand how to conduct a SWOT analysis; and be able to summarize its limitations. Pearce - Chapter 06 #78 79. How is SWOT analysis used in strategic analysis? Please refer to the discussion titled "Using SWOT Analysis in Strategic Analysis" on pages 155-158, particularly Exhibit 6.2 on page 157. Learning Objective: 06-01 Understand how to conduct a SWOT analysis; and be able to summarize its limitations. Pearce - Chapter 06 #79 80. What are the limitations of SWOT analysis? Please refer to the discussion titled "Limitations of SWOT Analysis" on pages 158-159. Learning Objective: 06-01 Understand how to conduct a SWOT analysis; and be able to summarize its limitations. Pearce - Chapter 06 #80 81. Explain the difference between primary activities and support activities and give examples of both. Please refer to the discussion titled "Value Chain Analysis" on pages 159-161 and particularly the table in Exhibit 6.3, "The Value Chain," on page 160. Learning Objective: 06-02 Understand value chain analysis and how to use it to disaggregate a firms activities and determine which are most critical to generating competitive advantage. Pearce - Chapter 06 #81 82. Describe the steps in conducting a value chain analysis. Please refer to the discussion titled "Conducting a Value Chain Analysis" on pages 161-165. Learning Objective: 06-02 Understand value chain analysis and how to use it to disaggregate a firms activities and determine which are most critical to generating competitive advantage. Pearce - Chapter 06 #82 83. What are the problems created by using activity-based cost accounting? Please refer to the discussion titled "Recognizing the Difficulty in Activity-Based Cost Accounting," on pages 163-165. Learning Objective: 06-02 Understand value chain analysis and how to use it to disaggregate a firms activities and determine which are most critical to generating competitive advantage. Pearce - Chapter 06 #83 84. Explain the premise for the resource-based view of the firm. How is this different from other perspectives? Please refer to the discussion titled "Resource-Based View of the Firm," on pages 165-167. Learning Objective: 06-03 Understand the resource-based view of a firm and how to use it to disaggregate a firms activities and resources to determine which resources are best used to build competitive advantage. Pearce - Chapter 06 #84 85. Describe the elements of the resource-based view. Give examples of each type. Please refer to the discussion titled "Three Basic Resources: Tangible Assets, Intangible Assets and Organizational Capabilities," on page 167. Learning Objective: 06-03 Understand the resource-based view of a firm and how to use it to disaggregate a firms activities and resources to determine which resources are best used to build competitive advantage. Pearce - Chapter 06 #85 86. What are core competencies? How are they different from distinctive competencies? How do distinctive competencies lead to competitive advantage? Please refer to the discussion titled "Core Competencies" on pages 166-167. Learning Objective: 06-03 Understand the resource-based view of a firm and how to use it to disaggregate a firms activities and resources to determine which resources are best used to build competitive advantage. Pearce - Chapter 06 #86 87. Cite the guidelines to the resource-based view and briefly describe their meaning. Please refer to the discussion titled "What Makes a Resource Valuable?" on pages 169-172. Learning Objective: 06-03 Understand the resource-based view of a firm and how to use it to disaggregate a firms activities and resources to determine which resources are best used to build competitive advantage. Pearce - Chapter 06 #87 88. When using the RBV, what four steps can help a firm gauge which resources truly have strategic value? Please refer to the discussion titled "What Makes a Resource Valuable," on pages 169-172. Learning Objective: 06-03 Understand the resource-based view of a firm and how to use it to disaggregate a firms activities and resources to determine which resources are best used to build competitive advantage. Pearce - Chapter 06 #88 89. What are isolating mechanisms? What role do they play in the resource-based view? Please refer to the discussion in the section "Imitation" on pages 170171. Learning Objective: 06-03 Understand the resource-based view of a firm and how to use it to disaggregate a firms activities and resources to determine which resources are best used to build competitive advantage. Pearce - Chapter 06 #89 90. How can the resource-based view be used in internal analysis? Please refer to the discussion titled "Using the Resource-Based View in Internal Analysis" on pages 172-174. Learning Objective: 06-03 Understand the resource-based view of a firm and how to use it to disaggregate a firms activities and resources to determine which resources are best used to build competitive advantage. Pearce - Chapter 06 #90 91. What is three circles analysis? Please refer to the discussion "Three Circles Analysis" on pages 177180. Learning Objective: 06-04 Use three circles analysis as a technique to examine a companys product/service attributes with those of key competitors relative to tangible customer needs. Pearce - Chapter 06 #91 92. If a firm wants to chart its progress internally, what method of comparison is appropriate? Describe how this works. Please refer to the discussion titled "Comparison with Past Performance," on page 175. Learning Objective: 06-05 Apply four different perspectives for making meaningful comparisons to assess a firms internal strengths and weaknesses. Pearce - Chapter 06 #92 93. What is the purpose of benchmarking? How else can a firm evaluate itself against its industry? Please refer to the discussion titled "Benchmarking: Comparison with Competition" on page 176. Learning Objective: 06-05 Apply four different perspectives for making meaningful comparisons to assess a firms internal strengths and weaknesses. Pearce - Chapter 06 #93 94. How can a firm compare itself with success factors in the industry? Please refer to the discussion in the section titled "Comparison With Success Factors in the Industry" on pages 180-181. Learning Objective: 06-05 Apply four different perspectives for making meaningful comparisons to assess a firms internal strengths and weaknesses. Pearce - Chapter 06 #94 95. What is the product life cycle? What are its different stages? Please refer to the discussion titled "Product Life Cycle" on pages 181-182. Learning Objective: 06-04 Use three circles analysis as a technique to examine a companys product/service attributes with those of key competitors relative to tangible customer needs. Pearce - Chapter 06 #95 96. Describe what liquidity ratios measure? What are the important liquidity ratios? Please refer to the discussion "Liquidity Ratios" on page 186. Learning Objective: 06-06 Refamiliarize yourself with ratio analysis and basic techniques of financial analysis to assist you in doing internal analysis to identify a firms strengths and weaknesses. Pearce - Chapter 06 #96 97. What does the term "leverage" mean? What are the important leverage ratios? Please refer to the discussion "Leverage Ratios" on pages 186-189. Learning Objective: 06-06 Refamiliarize yourself with ratio analysis and basic techniques of financial analysis to assist you in doing internal analysis to identify a firms strengths and weaknesses. Pearce - Chapter 06 #97 98. What do activity ratios measure? What are the key activity ratios? Please refer to the discussion "Activity Ratios" on pages 189-190. Learning Objective: 06-06 Refamiliarize yourself with ratio analysis and basic techniques of financial analysis to assist you in doing internal analysis to identify a firms strengths and weaknesses. Pearce - Chapter 06 #98 99. Describe the principal profitability ratios and indicate what each measures. Please refer to the discussion "Profitability Ratios" on pages 190-192. Learning Objective: 06-06 Refamiliarize yourself with ratio analysis and basic techniques of financial analysis to assist you in doing internal analysis to identify a firms strengths and weaknesses. Pearce - Chapter 06 #99 100. What does an analysis of the sources and uses of funds do? How is this analysis done? Please refer to the discussion titled "Analysis of the Sources and Uses of Funds" on page 192. Chapter 5 86. What is globalization? How are standardization and customization relevant in globalization? Please refer to the introductory part of the chapter on pages 128129. Learning Objective: 05-01 Explain the importance of a companys decision to globalize. Pearce - Chapter 05 #86 87. Describe the four strategy levels involved in the evolution of a global corporation. Please see the discussion on "Development of a Global Corporation" on pages 130-131. Learning Objective: 05-01 Explain the importance of a companys decision to globalize. Pearce - Chapter 05 #87 88. Why do firms globalize? Please see the discussion in the section titled "Why Firms Globalize" on pages 131-133. Learning Objective: 05-01 Explain the importance of a companys decision to globalize. Pearce - Chapter 05 #88 89. What are the key issues to consider at the start of a firm's globalization process? Please see the discussion titled "At the Start of Globalization" on pages 133-135. Learning Objective: 05-02 Describe the four main strategic orientations of global firms. Pearce - Chapter 05 #89 90. Briefly describe the different orientations companies may have toward their overseas activities. Please refer to the discussion on "Strategic Orientations of Global firms" on page 133. Learning Objective: 05-02 Describe the four main strategic orientations of global firms. Pearce - Chapter 05 #90 91. What factors contribute to the increased complexity of the global environment? Explain. Please see the discussion on "Complexity of the Global Environment" on pages 135-136. Learning Objective: 05-04 Discuss major issues in global strategic planning; including the differences for multinational and global firms. Pearce - Chapter 05 #91 92. What control problem do global firms face? Please see the discussion titled "Control Problems of the Global Firm" on page 137. Learning Objective: 05-02 Describe the four main strategic orientations of global firms. Pearce - Chapter 05 #92 93. What is a multidomestic industry? What factors increase the degree to which an industry is multidomestic? Please see the discussion on "Multidomestic Industries" on pages 138-139. Learning Objective: 05-04 Discuss major issues in global strategic planning; including the differences for multinational and global firms. Pearce - Chapter 05 #93 94. What is a global industry? What are the reasons strategic management planning must be global? Please see the discussion titled "Global Industries" on pages 139-140. Learning Objective: 05-04 Discuss major issues in global strategic planning; including the differences for multinational and global firms. Pearce - Chapter 05 #94 95. What are the location and coordination issues that global firms face? Please see the discussion on "Location and Coordination of Functional Activities "on pages 140-141. Learning Objective: 05-04 Discuss major issues in global strategic planning; including the differences for multinational and global firms. Pearce - Chapter 05 #95 96. What factors make for the creation of a global industry? Please see the discussion of these factors on page 140. Learning Objective: 05-04 Discuss major issues in global strategic planning; including the differences for multinational and global firms. Pearce - Chapter 05 #96 97. Why should strategic management planning be global? Please see the discussion of the six reasons on pages 139-140. Learning Objective: 05-05 Describe the market requirements and product characteristics in global competition. Pearce - Chapter 05 #97 98. Describe the competitive strategy of niche market exporting. Please see the discussion on "Niche Market Exporting" on page 140. Learning Objective: 05-05 Describe the market requirements and product characteristics in global competition. Pearce - Chapter 05 #98 99. Identify and briefly explain the lowest to the highest commitment strategies a firm may have to international markets. Please see the discussion on "Competitive Strategies for firms in foreign markets" on pages 141-147. Learning Objective: 05-06 Evaluate the competitive strategies for firms in foreign markets; including niche market exporting; licensing and contract manufacturing; franchising; joint ventures; foreign branching; private equity; and wholly owned subsidiaries. Pearce - Chapter 05 #99 100. Compare and contrast licensing and franchising. Please refer to the discussions on "Licensing and Contract Manufacturing" and "Franchising" 142-143. Learning Objective: 05-06 Evaluate the competitive strategies for firms in foreign markets; including niche market exporting; licensing and contract manufacturing; franchising; joint ventures; foreign branching; private equity; and wholly owned subsidiaries. Pearce - Chapter 05 #100 101. Differentiate between foreign branching, equity investment and wholly owned subsidiaries. What risks firms face with foreign subsidiary strategy? Explain. Please see the discussions on "Foreign Branching", "Equity Investment" and "Wholly Owned Subsidiaries" on pages 140-142. Chapter 4 84. Describe the three tiers of environmental factors that affect the performance of a firm. Please refer to exhibit 4.1 on page 88. Learning Objective: 04-01 Describe the three tiers of environmental factors that affect the performance of a firm. Pearce - Chapter 04 #84 85. Identify and briefly describe the different factors comprising the remote environment. Please refer to the discussion on "Remote Environment" on pages 8899. Learning Objective: 04-02 List and explain the five factors in the remote environment. Pearce - Chapter 04 #85 86. Discuss the three profound social changes in the recent years that affect the performance of a firm. Please refer to the discussion on "Social Factors" on pages 90-93. Learning Objective: 04-03 Give examples of the economic; social; political; technological; and ecological influences on a business. Pearce - Chapter 04 #86 87. Describes briefly the air, water and land pollution occurring in our environment. Provide examples of federal legislations that address each of these areas. Please refer to the discussion on "Ecological Factors" on pages 96-99. Learning Objective: 04-03 Give examples of the economic; social; political; technological; and ecological influences on a business. Pearce - Chapter 04 #87 88. Define eco-efficiency. Identify the four key characteristics of ecoefficient corporations. Please refer to the discussion on Eco-efficiency on page 99. Learning Objective: 04-03 Give examples of the economic; social; political; technological; and ecological influences on a business. Pearce - Chapter 04 #88 89. Explain the five force model of industry analysis as described by Porter. Give an example of each force. Please refer to the discussion on "How Competitive Forces Shape Strategy" on pages 100-109. Learning Objective: 04-04 Explain the five forces model of industry analysis and give examples of each force. Pearce - Chapter 04 #89 90. Identify and briefly describe the major sources of barriers to entry. Please see the discussion on "Threat of Entry" on pages 102-105. Learning Objective: 04-05 Give examples of the influences of entry barriers; supplier power; buyer power; substitute availability; and competitive rivalry on a business. Pearce - Chapter 04 #90 91. How do "cost disadvantages independent of size" act as entry barriers? Please see the discussion of this entry barrier on page 103. Learning Objective: 04-05 Give examples of the influences of entry barriers; supplier power; buyer power; substitute availability; and competitive rivalry on a business. Pearce - Chapter 04 #91 92. What characteristics make a supplier group powerful? Explain. Please refer to the discussion on "Powerful Suppliers" on page 105. Learning Objective: 04-05 Give examples of the influences of entry barriers; supplier power; buyer power; substitute availability; and competitive rivalry on a business. Pearce - Chapter 04 #92 93. Identify and explain the factors/characteristics that make the buyer group powerful. Please see the discussion on "Powerful Buyers" on pages 106-107. Learning Objective: 04-05 Give examples of the influences of entry barriers; supplier power; buyer power; substitute availability; and competitive rivalry on a business. Pearce - Chapter 04 #93 94. How do substitutes affect industry structure? Please see the discussion titled "Substitute Products" on page 107. Learning Objective: 04-05 Give examples of the influences of entry barriers; supplier power; buyer power; substitute availability; and competitive rivalry on a business. Pearce - Chapter 04 #94 95. How does jockeying for position escalate intensity of rivalry among competitors? Please see the discussion "Jockeying for Position" on pages 107-109. Learning Objective: 04-05 Give examples of the influences of entry barriers; supplier power; buyer power; substitute availability; and competitive rivalry on a business. Pearce - Chapter 04 #95 96. What is an industry? Why is it important to define industry boundaries? Please see the discussion "Industry Boundaries" on pages 109-110. Learning Objective: 04-05 Give examples of the influences of entry barriers; supplier power; buyer power; substitute availability; and competitive rivalry on a business. Pearce - Chapter 04 #96 97. What are the problems in defining industry boundaries? Please see the discussion "Problems in Defining Industry Boundaries" on page 110. Learning Objective: 04-05 Give examples of the influences of entry barriers; supplier power; buyer power; substitute availability; and competitive rivalry on a business. Pearce - Chapter 04 #97 98. How do power curves help assess industry structure? Please see the discussion titled "Power Curves" on pages 112-114. Learning Objective: 04-05 Give examples of the influences of entry barriers; supplier power; buyer power; substitute availability; and competitive rivalry on a business. Pearce - Chapter 04 #98 99. Identify and briefly explain the five factors in the operating environment. Please refer to the discussion on "Operating Environment" on pages 116-120. Learning Objective: 04-06 List and explain the five factors in the operating environment. Pearce - Chapter 04 #99 100. What factors affect a firm's access to needed personnel? Please see the discussion "Human Resources: Nature of the Labor Market" on pages 119-120. Chapter 3 84. Who are stakeholders and why are they important to a firm? Please refer to the introductory discussion in the section "The Stakeholder Approach to Social Responsibility" on page 48. Learning Objective: 03-01 Understand the importance of the stakeholder approach to social responsibility. Pearce - Chapter 03 #84 85. Describe the necessary steps that a firm must take when it attempts to incorporate the interests of various stakeholders. Please refer to the discussion under "The Stakeholder Approach to Social Responsibility" on pages 48-50. Learning Objective: 03-01 Understand the importance of the stakeholder approach to social responsibility. Pearce - Chapter 03 #85 86. Identify inside and outside stakeholders. How do they differ in their expectations of the firm? Explain. Please refer to the discussion on "The Dynamics of Social Responsibility" on page 50. Learning Objective: 03-01 Understand the importance of the stakeholder approach to social responsibility. Pearce - Chapter 03 #86 87. Briefly describe the four types of social responsibilities that managers can consider. Please refer to the discussion on "Types of Social Responsibility" on pages 51-55. Learning Objective: 03-02 Explain the continuum of social responsibility and the effect of various options on company profitability. Pearce - Chapter 03 #87 88. Discuss the dynamics between CSR and the bottom line. Please refer to the on "Corporate Social Responsibility and Profitability" discussion on pages 56-57. Learning Objective: 03-05 Compare the advantages of collaborative social initiatives with alternative approaches to CSR. Pearce - Chapter 03 #88 89. How is environmentalism driving corporate social responsibility? Please refer to the discussion on "CSR Today" in the sub-section "The Resurgence of Environmentalism" on page 57. Learning Objective: 03-05 Compare the advantages of collaborative social initiatives with alternative approaches to CSR. Pearce - Chapter 03 #89 90. How is increasing buyer power affecting corporate social responsibility today? Please refer to the discussion on "CSR Today" in the sub-section "Increasing Buyer Power" on pages 59-61. Learning Objective: 03-05 Compare the advantages of collaborative social initiatives with alternative approaches to CSR. Pearce - Chapter 03 #90 91. How is globalization driving corporate social responsibility? Please refer to the discussion on "CSR Today" in the sub-section "The Globalization of Business" on pages 62-63. Learning Objective: 03-05 Compare the advantages of collaborative social initiatives with alternative approaches to CSR. Pearce - Chapter 03 #91 92. Discuss the major elements of the Sarbanes-Oxley Act of 2002. Please refer to the discussion of "The Sarbanes-Oxley Act" on pages 63-66. Learning Objective: 03-04 Discuss the effect of the Sarbanes-Oxley Act on the ethical conduct of business. Pearce - Chapter 03 #92 93. Describe the impact of the Sarbanes-Oxley Act on the corporate governance structure. Please see the discussion on "The New Corporate Governance Structure" on page 66. Learning Objective: 03-04 Discuss the effect of the Sarbanes-Oxley Act on the ethical conduct of business. Pearce - Chapter 03 #93 94. What is a social audit? What is its purpose? Please see the discussion titled "Social Audit" on pages 67-69. Learning Objective: 03-05 Compare the advantages of collaborative social initiatives with alternative approaches to CSR. Pearce - Chapter 03 #94 95. Explain the five principles of successful collaborative social initiatives. Please see the discussion on the "Five Principles of Successful Collaborative Social Initiatives" topic on pages 72-77. Learning Objective: 03-06 Explain the five principles of collaborative social initiatives. Pearce - Chapter 03 #95 96. What is ethics? Why is it important in business? Please refer to the discussion "The Nature of Ethics in Business" on pages 79-81. Learning Objective: 03-07 Compare the merits of different approaches to business ethics. Pearce - Chapter 03 #96 97. Briefly discuss the three fundamental ethical approaches that managers should consider. Please refer to the discussion on "Approaches to Questions of Ethics" on page 81. Learning Objective: 03-07 Compare the merits of different approaches to business ethics. Pearce - Chapter 03 #97 98. What are codes of business ethics? Why are they important? Please refer to the discussion titled "Codes of Business Ethics" on pages 82-83. Learning Objective: 03-07 Compare the merits of different approaches to business ethics. Pearce - Chapter 03 #98 99. Identify and describe the defining principles and the implementing principles of the social justice approach. Please refer to the discussion on "The Social Justice Approach" on page 81. Learning Objective: 03-07 Compare the merits of different approaches to business ethics. Pearce - Chapter 03 #99 100. What are the major trends in Code of Ethics? Explain. Please refer to the discussion on "Major Trends in Codes of Ethics" on pages 83-85. Chapter 2 85. (p. 39) Managers' stature in the business community is commonly associated with company: A. typ e B. ag e C. siz e D. growt h Difficulty: 3 Hard Learning Objective: 02-07 Explain agency theory and its value in helping a board of directors improve corporate governance. Pearce - Chapter 02 #85 86. Which of these represent a solution to the agency problem? (p. 40) A. Backloaded compensation for executives B. Separate the interests of the owners and agents C. Minimize executive risktaking D. Focus performance measures on personal goals of executives Difficulty: 3 Hard Learning Objective: 02-07 Explain agency theory and its value in helping a board of directors improve corporate governance. Pearce - Chapter 02 #86 87. Backloaded compensation refers to: (p. 40) A. Board of directors getting back stock as compensation B. Executives receiving handsome premium for superior future performance C. Suppliers getting bonuses for organization's performance D. Managers getting bonuses for past performances Difficulty: 2 Medium Learning Objective: 02-07 Explain agency theory and its value in helping a board of directors improve corporate governance. Pearce - Chapter 02 #87 88. Define mission statement. Describe the importance of developing an explicit mission statement. Please refer to the discussion on "What is a Company Mission" on pages 23-24. Learning Objective: 02-01 Describe a company mission and explain its value. Pearce - Chapter 02 #88 89. Briefly describe the process of defining the company mission for a specific business. Please refer to the discussion on "Formulating a Mission" on page 24. Learning Objective: 02-01 Describe a company mission and explain its value. Pearce - Chapter 02 #89 90. When a mission statement is redefined or revised, what components should be present? Explain. Please refer to the discussion on "Formulating a Mission" on page 24. Learning Objective: 02-01 Describe a company mission and explain its value. Pearce - Chapter 02 #90 91. Identify and briefly describe the three indispensable components of the mission statement. Please refer to the discussion on "Basic Product or Service; Primary Market; Principle Technology" on pages 24-26. Learning Objective: 02-02 Explain why it is important for the mission statement to include the companys basic product or service; its primary markets; and its principal technology. Pearce - Chapter 02 #91 92. What are the three economic goals that guide the strategic direction of business organizations? Explain each of them briefly. Please refer to the discussion on "Company Goals: Survival; Growth: Profitability" on pages 26-27. Learning Objective: 02-03 Explain which goal of a company is most important: survival; profitability; or growth. Pearce - Chapter 02 #92 93. Differentiate between company philosophy and public image. Why should organizations care to have either or both of these in its mission? Please refer to the discussion on "Company Philosophy" and "Public Image" on pages 27-30. Learning Objective: 02-04 Discuss the importance of company philosophy; public image; and company selfconcept to stockholders. Pearce - Chapter 02 #93 94. What is meant by company self-concept? Why is it an important mission statement component? Please refer to the discussion titled "Company Self-Concept" on pages 30-31. Learning Objective: 02-04 Discuss the importance of company philosophy; public image; and company selfconcept to stockholders. Pearce - Chapter 02 #94 95. Identify and briefly explain the newest trends in mission components. Please refer to the discussion on "Newest Trends in Mission Components" on pages 31-34. Learning Objective: 02-05 Give examples of the newest trends in mission statement components: customer emphasis; quality; and company vision. Pearce - Chapter 02 #95 96. How is a vision statement different from a mission statement? Please refer to the discussion titled "Vision Statement" on pages 3335. Learning Objective: 02-04 Discuss the importance of company philosophy; public image; and company selfconcept to stockholders. Pearce - Chapter 02 #96 97. Who are the board of directors? What are their major responsibilities? Please refer to the discussion on "Board of Directors" on page 36. Learning Objective: 02-06 Describe the role of a companys board of directors. Pearce - Chapter 02 #97 98. Define agency theory. What are agency costs? Please refer to the discussion on "Agency Theory" on page 38. Learning Objective: 02-07 Explain agency theory and its value in helping a board of directors improve corporate governance. Pearce - Chapter 02 #98 99. How do moral hazard and adverse selection cause agency problems? Please refer to the discussion titled "How Agency Problems Occur" on pages 38-39. Learning Objective: 02-07 Explain agency theory and its value in helping a board of directors improve corporate governance. Pearce - Chapter 02 #99 100. Briefly describe the problems that can result from agency and what steps can be taken to resolve them. Please refer to the discussion on "Problems that can Result from Agency" and "Solutions to the Agency Problem" on pages 39-40. Chapter 1 86. Define and describe organizational leadership in the context of a leader's action. Please refer to the introductory discussion on pages 368-370. Learning Objective: 12-01 Describe what good organizational leadership involves. Pearce - Chapter 12 #86 87. What is strategic intent? How is articulating vision an important aspect of clarifying strategic intent? Please refer to the discussion titled "Clarifying Strategic Intent" on pages 370-373. Learning Objective: 12-02 Explain how vision and performance help leaders clarify strategic intent. Pearce - Chapter 12 #87 88. Why is clarifying performance expectations key to articulate strategic intent? Please refer to the discussion "Performance" on pages 371-373. Learning Objective: 12-02 Explain how vision and performance help leaders clarify strategic intent. Pearce - Chapter 12 #88 89. How do good leaders use leadership development to build an organization? Please refer to the discussion on pages 373-374. Learning Objective: 12-02 Explain how vision and performance help leaders clarify strategic intent. Pearce - Chapter 12 #89 90. Describe three ways good leaders go about building the organization they want and deal with problems that arise. Please refer to the discussion titled "Building an Organization," on pages 373-377. Learning Objective: 12-03 Explain the value of passion and selection/development of new leaders in shaping an organizations culture. Pearce - Chapter 12 #90 91. What is meant by "passion" in the context of organizational leadership? Please refer to discussion titled "passion (of a leader) on pages 377379. Learning Objective: 12-03 Explain the value of passion and selection/development of new leaders in shaping an organizations culture. Pearce - Chapter 12 #91 92. Discuss the idea that leaders shape organizational culture through their passion for the enterprise and the selection/development of talented managers to be future leaders. Please see the discussion "Shaping Organizational Culture" and "Recruiting and Developing Talented Operational Leadership" on pages 377-382. Learning Objective: 12-03 Explain the value of passion and selection/development of new leaders in shaping an organizations culture. Pearce - Chapter 12 #92 93. What are the three levels of competencies required for senior leaders as per researcher Ronald Riggio? Please refer to the discussion on pages 380-381. Learning Objective: 12-03 Explain the value of passion and selection/development of new leaders in shaping an organizations culture. Pearce - Chapter 12 #93 94. Describe the four main sources of power available to an organizational leader. Please refer to the discussion titled "Recruiting and Developing Talented Operational Leadership" on page 381. Learning Objective: 12-04 Briefly explain seven sources of power and influence available to every manager. Pearce - Chapter 12 #94 95. Describe the sources of personal influence available to a leader. Please see the discussion on page 382. Learning Objective: 12-04 Briefly explain seven sources of power and influence available to every manager. Pearce - Chapter 12 #95 96. Briefly define organizational culture and explain the importance of assumptions. Please refer to the discussion titled "Organizational Culture," on page 383. Learning Objective: 12-05 Define and explain what is meant by organizational culture; and how it is created; influenced; and changed. Pearce - Chapter 12 #96 97. What does it mean to "build time" into an organization? How does length of tenure affect the leader's relationship with the organization? Please refer to the discussion titled "Build Time in the Organization," on pages 384-387. Learning Objective: 12-05 Define and explain what is meant by organizational culture; and how it is created; influenced; and changed. Pearce - Chapter 12 #97 98. Discuss the framework for managing the strategy-culture relationship that leaders face. Please refer to Exhibit 12.8 on page 390. Learning Objective: 12-05 Define and explain what is meant by organizational culture; and how it is created; influenced; and changed. Pearce - Chapter 12 #98 99. What factors affect how a leader can manage organizational culture in a global context? Please refer to the discussion titled "Organizational Culture in a Global Organization," on page 389. Learning Objective: 12-06 Describe four ways leaders influence culture. Pearce - Chapter 12 #99 100. How do organizational stories and legends contribute to organizational culture? Please refer to the discussion in the section "Encourage Dissemination of Stories and Legends About Core Values" on page 388