CME Strategic Management & Leadership 3

Question 1

Which change management model proposes three stages: Unfreeze, Change, and Refreeze?

Accepted Answer

Lewin's Change Model

Answer

Kurt Lewin's three-stage model describes change as unfreezing current behaviors, transitioning, then refreezing new behaviors into place.

Question 2

A manager using 'management by exception' will:

Accepted Answer

Intervene only when performance deviates significantly from standards

Answer

Management by exception allows routine operations to proceed uninterrupted and only triggers managerial intervention when variances exceed acceptable thresholds.

Question 3

A first-mover advantage is MOST likely to be sustainable when:

Accepted Answer

The firm can establish strong customer switching costs or proprietary technology

Answer

First-movers maintain advantages longest when switching costs, proprietary assets, or network effects make it costly for customers to switch to later entrants.

Question 4

In strategic decision-making, 'bounded rationality' means that decision-makers:

Accepted Answer

Make decisions that are constrained by cognitive limits and incomplete information

Answer

Herbert Simon's concept of bounded rationality recognizes that humans 'satisfice' rather than optimize due to cognitive limitations and imperfect information.

Question 5

The term 'strategic fit' refers to:

Accepted Answer

The alignment between an organization's strategy and its external environment and internal capabilities

Answer

Strategic fit measures how well a firm's chosen strategy aligns with its external opportunities/threats and internal strengths/weaknesses.

(CME) Certified Management Executive Practice Test

(CME) Certified Management Executive Practice Test

CME Strategic Management & Leadership 3