Bus Innovation ch 5

Gap analysis evaluates whether goals and objectives are being met by outcomes. True False

True

The competitive advantage of an innovative strategy is directly related to management capability and the knowledge developed and shared. True False

True

The environment plays a critical role in the evaluation and control phase. True False

True

The evaluation of gaps between goals and performance typically occurs in three areas—financial, strategic, and cultural. True False

True

When evaluating a firm's innovation strategy, managers should ask "Where will we end up if we change nothing and continue on our current path?" True False

True

As an organization grows larger and larger, its evaluation and control becomes easier and easier. True False

False

Control is the determination of how well the organization is meeting its goals. True False

False

As the organization grows, an entrepreneurial firm typically moves to a _____ structure. hybrid complex organizational functional divisional matrix

Functional

In what organizational structure are workers organized into professional domains such as accounting, marketing, or manufacturing? Simple Matrix Network Divisional Functional

Functional

Cultural controls refer to the ability to get individuals to act in the manner desired within the firm. True False

True

While an organization can be innovative and build a new product or develop a new process, the market will determine if the product or process will have a useful life. True False

True

Cultural controls refer to the: culture of the nation in which the firm is located. culture of the CEO. ability of the firm to support the cultural standards of the community. ability to get individuals to act in the manner desired. ability of the firm to support cultural activities such as a major art museum.

ability to get individuals to act in the manner desired.

Evaluation and control _____ as the organization grows larger. are easier are harder do not change depend more on the SBU depend less on the SBU

are harder

Evaluation can be defined as: determining how well the organization is meeting its goals. annual reviews of employees' work efforts. correcting problems within the company. monitoring the use of technology. predicting this year's sales figures.

determining how well the organization is meeting its goals.

Control can be defined as: where we are compared to where we want to be. the determination of how well the organization is meeting its goals. determining what actions to take to change the firm's results. rethinking the business process. changing the compensation system so the firm is better networked.

determining what actions to take to change the firm's results.

All of the following are decisions that are made to ensure that the firm does not get mired in an innovative strategy except: communicate goals so they are understood and management supports them. assess employee skills and assign them to the right jobs. don't underestimate internal culture and external environment. develop a set of procedures for every situation that is to be followed precisely. monitor current situations by setting up a system to do so

develop a set of procedures for every situation that is to be followed precisely.

All of the following are points in Deming's 14 points about quality except: cease dependence on inspection. institute leadership. drive out fear. ensure management by objective is implemented consistently. remove barriers to pride of ownership

ensure management by objective is implemented consistently.

All of the following are the most common adjustments a firm makes except: rethink business processes. look for improvements and redesign the innovation process. exit the industry. determine if the goals do not match capabilities and develop new goals. empower people involved in process.

exit the industry.

Analyzing best practices is: the hardest part of evaluation and control. the easiest part of evaluation and control. internally focused. externally focused. typically not done.

externally focused.

The easiest gap analysis to perform is: financial. strategic. cultural. structural. mission.

financial

Focus on gaps between the desired financial outcomes and those actually produced by the firm occurs as part of _____. strategic controls financial controls accounting controls financial analysis profit techniques

financial controls

The three areas where evaluation of gaps typically occurs are: financial, planning, or cultural. planning, financial, or strategic. financial, strategic, or cultural. planning, strategic, or cultural. financial, implementation, or strategic.

financial, planning, or cultural.

The evaluation between goals and outcomes is often referred to as a(n) _____ between desired outcomes and actual results. gap analysis control control and evaluation innovation first mover

gap analysis

Asking the where we are now compared to where we want to be, what lies ahead that can affect us either positively or negatively, and where we will end up if we continue on this path is used to conduct: control. the setting of tactical goals. strategic analysis. gap analysis. rewards for employees.

gap analysis.

A unique structure that results in reporting to two managers is: divisional structure. matrix structure. functional structure. simple structure. business structure.

matrix structure.

Evaluation is the determination of how well the organization is meeting its goals. True False

True

Cybernetic control is drawn from: finance literature. accounting literature. European conceptualization. biology literature. marketing literature.

biology literature.

The strength of cultural controls comes from the: goals of the firm. relationships among people in the firm. ability to perform a gap analysis. reward/performance connection. level of support of the CEO.

relationships among people in the firm.

Evaluation and control typically emphasizes all of the following except: accurate information. removal of the individual(s) responsible for the gap. identification of what you are measuring in the gap. making required adjustments. sharing of information.

removal of the individual(s) responsible for the gap.

To understand what lies ahead for a firm as part of the innovation evaluation and control effort, the firm: scans the environment. sticks to the strategic plan. establishes performance trends. compares the current performance to predicted. conducts a gap analysis.

scans the environment.

The Board of Directors should focus on: operational issues at a given plant. functional issues such as marketing. business level concerns. strategic issues. macro-environmental issues such as lobbying.

strategic issues.

Who is elected to supervise a publicly traded firm's managers for the shareholders? Chairman of the Board Board of Directors Securities and Exchange Commission Federal Trade Commission National Association of Securities Dealers

Board of Directors

A new organization typically employs a complex structure. True False

False

Dr. Edward Deming got his initial success on quality management in: Japan. the United States. Canada. the United Kingdom. France.

Japan

A unique structure that high technology firms occasionally follow is a matrix structure. True False

True

Clarity on what to measure is critical in evaluating whether goals are being met. True False

True

Evaluation and control should occur _____ as organizations monitor their current performance and make adjustments as needed or necessary to ensure accomplishment of performance goals in the organization. periodically constantly sporadically never once in a while

constantly

The most important controls for a technology-focused company to implement are: financial. strategic. cultural. structural. mission.

cultural.

One of the key reasons for evaluation and control is that: leaders of firms change. boards of directors change. environments change. mid-level managers change. goals change

environments change.

An emergent strategy is one: that relates to emergent markets such as China. that occurs when a firm sees an unexpected opportunity and takes advantage of it. where the firm meets every week and updates the strategy from prior meeting. that is not written down, but instead comes through the actions of people. that is a strategy generated through a retreat in which managers meet until they develop a strategy.

that occurs when a firm sees an unexpected opportunity and takes advantage of it.

When an SBU is created all of the following occurs except: a new layer of management is inserted into the organization. the organization places less focus on the entire corporation since the SBUs are now the focus. businesses that are grouped together in the SBU have a reasonable foundation for that grouping. the head of each business reports to the SBU head, not to the CEO directly. greater bureaucracy is created.

the organization places less focus on the entire corporation since the SBUs are now the focus.

As organizations grow: their structure becomes simpler since it has greater specificity. functional control becomes critical. the CEO has greater control. their structure becomes more complex. their structure is less of a focus.

their structure becomes more complex.

In developing the evaluation and control activities for the firm using an innovation strategy it is important that: managers use the agency theory to promote the primary agents agenda. information is closely guarded in the organization. the goals are built on last year's goals with a small percentage growth built in. there is a balance among various approaches to analysis and correction. objectives are left vague to take advantage of emergent opportunities.

there is a balance among various approaches to analysis and correction.

All of the following should influence the decision on the organizational structure that is employed except: size of the firm. centralization. top management preferences. level of standardization. formalization in the organization.

top management preferences.