MGMT 490 Chapter 10

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Which of the following statments about matching orgainzational structure to a strategy exectution is not correct

functional structures are common among companies pursuing some form of diversification strategy

The type of organizational structure that best suits a firm depends on which of the following

The firm's size and complexity

40. Which of the following scenarios best reflects an advantage of a centralized organizational structure?

a. A top level executive is able to identify the accountable parties when a company fails to meet a production quota

29. Excellence in strategy execution can provide competitive advantage by

a. Allowing a firm to get products to market faster than competitors

What 3 key actions are required to build an organization capable of good strategy execution

1. finding and growing the needed resources and skills necessary for strong strategy execution 2. developing strong management and finding the right employees for the organization 3. Implementing sound structure within the organization

18. Staffing the organization of a company involves

a. Assembling a management team and hiring employees

The two best signs of good strategy execution are

...whether a company is meeting or beating its performance targets and whether they are performing value chain activities in a manner that is conducive to company wide operating excellence

Advantages of Decentralized Structure

1) encourages company employees to exercise initiative and act responsibly 2) Promotes greater motivation and involvement in the business on the part of more company personnel 3) Allows for fast response to market change 4) entails fewer layers of management

Advantages of Centralized Structure

1) fixes accountability through tight control from the top 2) Eliminates potential for conflicting goals and actions on the part of lower-level managers 3) Facilitates quick decision making and strong leadership in crisis situations

What is the name of a structure that combines two or more organizaitonal forms, with multiple reporting relationships, and that is used to foster cross-unit collaboration

A matrix structure

Which of the following does not describe the standard type of structural form of organization

A multidivisional structure where each division of the firm is an independent profit center

Good strategy execution requires:

A team effort with all managers having strategy executing responsibility in their areas of authority, and making all employees active participants in the strategy execution process

Disadvantages of a centralized organization

A. it lengthens response times by those closest to the market conditions because they must seek approval for their actions B. It does not encourage responsibility amonth lower level managers C. It discourages lower level mangers from exercising initiative D. It diverts authority away fro those closest and most knowledgeable about situations for action

20. Which of the following are ways that a company can access a capability through a collaborative partnership?

a. By engaging in a joint venture with another firm that has a complementary set of capabilities b. By collaborating with a company, internalizing its methods, and acquiring its capabilities c. By outsourcing the value chain activity in which the company's capabilities are substandard

Which of the following is a primary advantage of a centralized organization structure

Allow for quick decision making and strong leadership in crisis situations

Implementing and executing a company's strategy:

B. is a task for every manager and the whole management team, but ultimate responsibility for success or failure falls upon the top senior executives, especially the chief executive officer of the company

47. Which are disadvantages of matrix organizational structures

a. Can increase internal costs by adding a layer of management to oversee business operations

32. Outsourcing can help

a. Consumer electronics companies get next gen products to market ahead of the competition b. Car companies produce new models more quickly

When assembling a strong management team, it is crucial to fill positions with people who

Clear thinkers Have experience delivering results

WHich of the following statements best describes the process of crafting a business strategy

Crafting business strategy is based on the analysis of market conditions and the company's resources

Which of the following is NOT among the principal managerial components of the strategy execution process

Deciding what core competencies and value chain activities to leave as is and which ones to overhaul and improve

Organizing a company's wrok effort to promote successful strategy execution involves

Deciding which value chain activities to perform in house and which to outsource, and making internally performed

Companies engaged in a single line of business most commonly utilize an organizational structure that can be

Either centralized, principal, or critical path in nature

One of Johan's responsibilities is to ensure proficient strategy within the company. In this regard, which of the following should johan consider his most critical task

Ensuring that strategy supportive resources and capabilities are in place

Which of the following statements about recruiting, training and retaining capable employees is NOT Accurate

FOr good strategy execution, companies prefer adding to a company's talent base over additional investments in capital

Which of the following provides greater task specialization?

Functional, departmental structures, unitary structure or U-Form

WHich of the following managerial tasks is NOT a principal part of the strategy execution process

Implementing a management development plan to groom future executives

What is the rule for organizing the work effort to support good strategy execution

Match the firm's organizational structure to its unique strategy

A company's formal and informal arrangement of tasks, responsibilities, and lines of authority and communications make up the company's ______________ structure

ORGANIZATIONAL

Acquiring capabilities through merger or acquisitions

Often allows a company to add capabilities more quickly than developing new capabilities

What is the most important consideration when assembling a capable management team

People who are clear thinkers, are capable of figuring out what needs to be done, are good at managing people, and are skilled in delivering good results

Which of the following is one of the first steps to take in launching the strategy execution process

Put together a talented management team with the right mix of experiences, and abilities to get things done

Practices companies use to recruit, train and retrain the most capable people they find involve all of the following except?

Putting employees through short-term training programs, but focusing on the top 10%

Good strategy execution requires which of the following

Putting those resources and capabilities into place, strengthening them as needed and then modifying them as market conditions change

Which of the following statements about delegating authority in a company is most accurate

Top managers have a variety of options when considering how much authority to delegate to people at lower levels of management

GE has an up or out policy, where key personnel in underperforming units are pressured to boost performance to acceptable levels. What is this an example of

Tying rewards and incentives directly to the achievement of strategic and financial targets

WHich of the following is the first step that magagers must perform when devising an action agenda for executing strategy

Upgrade, renew and revise the organizations resources and capabilities

A substandard management team is likely to

Waste the effort of the people working under them

34. Which of the following statements about the process of developing capabilities internally is correct

a. Developing capabilities internally is a collaborative process that often happens through the combined efforts of different departments

19. Some regularly used methods of capability building include

a. Developing capabilities within the company b. Establishing partnerships with other companies c. Merging with other companies

33. Which of the following statement accurately identifies a disadvantage of centralized decision making

a. A business with a centralized decision making structure may be slow to respond to changing market conditions

42. Which of the following are advantages of a multidivisional organizational structure

a. A hierarchial structure that allows executives to oversee a diverse set of operations b. Improved decision-making within each division

44. A simple organizational structure is

a. A structure in which a central executive handles all major decisions and oversees organizational operations

30. Which of the following statements about multidivisional organizational structures are true?

a. Each division within a multidivisional structure is essentially a business b. The individual divisions within a multidivisional organization often operate as independent profit centers

50. Fast food enterprises can rely on effective partnerships with local franchises to

a. Ensure consistency across locations b. Ensure that food products meet corporate standards for quality c. Maintain proper levels of cleanliness and staff courtesy toward customers

49. Roles of relationship manager include

a. Facilitating communication and cooperation b. Getting the right people together for an initiative

38. Characteristics of the simple structure include

a. Few rules b. Minimal use of training

24. During the early period of capability building, progress is often

a. Fitful and delayed by mistakes

48. Which statements about functional organizational structure are true

a. Functional structures are known as departmental structures b. The main advantage of functional structure over simple structure is greater task specialization

The main disadvantage of a multidivisional business structure is that it can

a. Inhibit cross business collaboration

35. Which of the following are basic managerial tasks associated with executing business strategy

a. Installing systems that allow personnel to carry out their roles in the strategy execution process b. Creating a culture within the organization that promotes effective strategy execution c. Linking incentives to achieving the financial goals of the strategy

39. Some companies avoid establishing ideal organizational relationships in order to

a. Keep existing reporting relationships intact

41. Developing an organizational capability into a tried and true competence requires

a. Mastering the ability through repetition and sustained time on task b. Maintaining appropriate levels of resource investment

43. Which of the following are advantages of the matrix organizational structure

a. Matrix structures can help companies realize economies of scope b. Matrix structures facilitate collaboration and allow for sharing key resources

37. In a diversified company, the corporate parent

a. May need to centralize certain operations to achieve a cross-business strategic fit among its separate businesses

28. Which of the following statements is true about decentralized organizational structures

a. Mid-level managers and frontline employees are inclined to show intiative and be more productive in decentralized systems

25. In order to get the mix of characteristics that suit their business strategy and work environment, many of the industry leading tech firms focus on hiring

a. People in their 20s and 30s

23. In order to maintain a talented and energetic workforce, many companies

a. Provide training opportunities for employees thoughout their careers b. Offer opportunities for employees to work internationally

36. Which of the following is an action that is likely to be taken by a strong manager?

a. Scheduling a weekly meeting with mid-level managers to check on the progress of frontline employees

26. When attempting to collaborate through a joint venture or strategic alliance, a company should

a. Select a partner based on the degree of compatibility between the two companies

21. Which of the following statements regarding the execution of a strategy are true

a. Some managers have more success than other managers with certain approaches to implementing strategy b. Many of the policies and procedures in a business strategy need to be customized too fit the particulars of a company's situation

22. To limit the risk associated with outsourcing, many companies outsource

a. Strategically less important activities

31. To match structure to strategy effectively, a strategy implementer does which of the following

a. Supplements the organizational designs with task forces and teams to facilitate coordination b. Picks an organizational design and alters the design appropriately to meet the company's needs c. Sets up the communication and reporting mechanisms that will best help the company execute its strategy

45. Cross-business strategic fit can be defined as

a. The efficient coordination of individual business units in a corporation

27. Which of the following are risks for a company that transfers capabilities through mergers or acquisitions

a. The new company may experience a prolonged slump in stock price if the transfer process does not go smoothly b. Incompatibilities between the two formerly separate companies may disrupt the transfer process

The paramount aim in building a management team should be to

assemble a critical mass of talented managers who can function as agents of change, work well together as a team, and produce organizational results that are dramatically better than what one or two star managers acting individually can achieve

Outsourcing critics contend that shifting responsibility for performing value chain activities to outside specialists:

can hallow out a company's knowledge base and capabilities leaving it at the mercy of outside suppliers and short of the resource strengths to be a master of its own destiny

Which of the following value chain activities is unlikely to be a primary building block in a company's organizational structure

critical value chain activities in authomobile manufacturing include raw materials procurement, offshore sourcing and customer service

A multidivisional structure consists of

decentralized structure with a set of operating divsisions organized along business, product customer groups or geographic functions and monitors divisional activities

Organizing a company's work effort to promote successful strategy execution involves:

deciding which value chain activities to perform in-house and which to outsource, and making internally . performed strategy-critical value chain activities the main building blocks in the organization structure.

A decentralized organizational structure is predicated on the belief that

decision making authority should be put in the hands of the people closest to and most familiar with the situation and these people should be trained to exercise good judgemetn

When a company uses outsourcing to zero in on even better performance of those truly strategy-critical activities where its expertise is most needed, then it may also be able to

decrease internal bureaucracies, flatten its organizational structure, shorten the time it takes to respond to changing market conditions, and capitalize on its partnerships with outsiders to enhance its arsenal of capabilities and thus contribute to better strategy execution

The structural organization of a firm

reflects prior organizational patterns and internal circumstances IS in part a product of executive judgements

Which of the following statements about developing resources and capabilities is true

if a company is relying on a strategy that has succeeded in the past, managers may still need to refresh the company's resources and capabilities

Which of the following are characteristics of a well managed business network structure

it encourages cooperation and collaboration among partners It often has one firm playing the central role of coordinating activity among partners

It can be preferable to obtain new capabilities through merger or acquisition when

market conditions are evolving quickly and company needs fast capability development to keep pace A company lacks the capacity to develop the capability internally

A company may choose to outsource certain value chain activities because

outsourcing an activity may allow a company to concentrate its efforts on activities that are at the core of its strategy Another company may have the capability to perform those activities more efficiently

When strategies fail, it is often because of

poor execution of strategy

WHat strategies do leading companies use to attempt to staff their companies with the right kinds of personnel

recruit the most qualified people offer competitive compensations packates

The capability building process:

requires two things: 1) developing the ability to do something, however imperfectly or inefficiently, and 2) molding these efforts into an organizational ability and as experience grows and personnel perform the activity consistently well and at an acceptable cost, it is transformed into a tried and true competence and as they continue to polish and refine their know how into further improvements, they then create a real competitive capability

Which of the following are involved in executing a new business strategy

senior managers mid level managers

What makes the managerial task of executing strategy so challenging and demanding is:

the demanding people management skills required, the resistance to change that has to be overcome, and the perseverance necessary to get a variety of initiative launched or kept moving along

Cross-business strategic fit can be defined as

the efficient coordination of individual business units in a corporation

A firm's organizational structure is comprised of

the formal and informal arrangement of tasks, responsibilities, lines of authority, and reporting relationships by which the firm is administered.

A business network structure is

the relationship between several independent organizations involved in a shared objective


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