CME Strategic Management & Leadership 2

Question 1

Which leadership style is most effective when followers are highly skilled and motivated but lack confidence in a specific task?

Accepted Answer

Supporting

Answer

Supporting (or participating) style provides encouragement and builds confidence while letting skilled individuals retain decision control.

Question 2

A company's strategic intent refers to:

Accepted Answer

Its long-term aspirational goal that stretches the organization's capabilities

Answer

Strategic intent is the ambitious long-term vision that energizes and directs all organizational efforts beyond current capabilities.

Question 3

In Porter's Five Forces model, 'buyer power' increases when:

Accepted Answer

Buyers purchase large volumes and can easily switch suppliers

Answer

Buyer power is high when customers buy in large quantities and face low switching costs, giving them leverage to negotiate lower prices.

Question 4

The balanced scorecard approach to strategy execution measures performance across which four perspectives?

Accepted Answer

Financial, Customer, Internal Processes, Learning & Growth

Answer

Kaplan and Norton's balanced scorecard links financial results to customer satisfaction, operational efficiency, and organizational learning.

Question 5

A CEO notices that middle managers consistently avoid escalating bad news. This is an example of:

Accepted Answer

Organizational silence

Answer

Organizational silence occurs when employees withhold negative information from leadership, often due to fear of reprisal or perceived futility.

(CME) Certified Management Executive Practice Test