Final Exam- randomized quiz
Why is a company's corporate culture important?
Because it influences the organizations actions and approaches to conducting business
Critics of companies that use outsourcing contend that shifting responsibility for performing value chain activities to outside specialists
Can hollow out a company's knowledge base and capabilities leaving it at the mercy of outsider suppliers and short of the resource strengths to be a master of its own destiny
What hurdles are present in calculating industry attractiveness scores?
Deciding whether a business is related or unrelated
The hallmarks of a high-performance corporate culture include
I can't do spirit pride in doing things right no excuses accountability and a pervasive results oriented work climate where people go the extra mile to meet or beat stretch objectives
How is a functional structure or unitary structure organized?
Into functional departments with departmental managers who report to the CEO and small corporate staff
The company wants to plan a state of the art information and operating system to enable better strategy execution. Which of the following is the most likely reason for the companies move?
It wants to gain a competitive edge over arrivals
Why do companies decide to enter a foreign market?
To capture economies of scale in product development manufacturing or marketing
The implementation process is likely to be hampered by missing deadlines misdirected efforts in managerial ineptness if
a capable results oriented management team is not in place
What is the hallmark of an adaptive corporate culture
a clear willingness on the part of organizational members to except change and take on the challenge of a introducing and executing new strategies
The notion of social responsibility as it applies to business is concerned with
a companies duty to operate in an honorable manner and provide good working conditions for employees
Sharing and transferring resources and capabilities across borders may also contribute to the development of brighter or deeper competencies and capabilities there for helping the company achieve
a dominating depth and some competitively valuable area
Companies engaged in a single line of business most commonly utilize an organizational structure that Can be
a functional departmental organizational structure
Transferring core competencies and resource strength from one country market to another is
a good way for companies to develop broader or deeper competencies in competitive capabilities that can become a strong basis for sustainable competitive advantage
Unhealthy company cultures typically have such characteristics as
a politicized internal environment hostility to change in an aversion to looking outside the company for best practices new managerial approaches and innovative ideas
In formulating an action agenda to implement and execute a new or different strategy to place for managers to begin is within
a probing assessment of what the organization must do differently and better to carry up the strategy successfully
Which of the following contribute to the emergence and sustainability of a strong culture
a sincere long-standing company commitment to operating the business according to establish traditions thereby creating an internal environment that supports decision making and strategies based on cultural norms
Studies done on the correlation of between good corporate behavior and goods financial performance have generally found
a small positive correlation
When a corporate parent creates an an independent company and diverse it by distributing to its stockholders new shares in a business it is called
a spin off
Retrenching to a narrower diversification base is
a strategy that allows the diversified firms energies to be concentrated on building strong positions in a smaller number of businesses rather than stretching its resources in managerial attention to thin across many businesses
Which of the following builds a moral case for corporate social responsibility and environmentally sustainable business practices
a strong commitment to socially responsible behavior reduces the risk of reputation damaging incidents
The most important leadership trait in the strategy execution process is
a strong confident sense of what to do and how to do it
Managements most powerful tool for winning employee commitment to a good strategy execution is
a structure of rewards and incentives tied tightly to the achievement of the organization strategic priorities
What does a good strategy execution require
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
Which of the following is a benefit of closely aligning the corporate culture with the requirements for a proficient strategy execution
a tight strategy culture fit steers company personnel into displaying behaviors in adopting operating practices that promote good strategy execution
What strategies considered more conducive to transferring and leveraging subsidiary skills and capabilities across borders
a transnational strategy
From the standpoint of promoting successful strategy execution it is important that the firms motivation and reward system
accentuate positive rewards but also carry out the up or out policy for performance that does not meet expectations
The strength of integrated social contract theory is that it
accommodates the best parts of ethical universalism and ethical relativism
A company can best accomplish diversification into new industries by
acquiring a company already operating in the target industry creating a new business from scratch or forming a joint venture with one or more companies to enter the target industry
In which of the following steps does updating the companies capabilities to match changing market conditions and customer expectations take place
acquiring developing and strengthening key resources and capabilities
The statistical thinking underlying six sigma is based on which of the following three principles
all work is a process all processes have variability in all processes create data that explains variability
The six Sigma process of define measure analyze improve in control is
an improvement system for existing processes falling below specification and meeting incremental improvements
The contentions that many of the same standards of what ethical and what's an ethical resonate with peoples of most societies regardless of local traditions and cultural norms and to the extent there is common morale agreement about right and wrong actions
and ethical standards can be used to judge the conduct of personal at companies operating in a variety of country markets and cultural circumstances are defining beliefs of which of the following, the school of ethical universalism but not the school of ethical relativism
The strategic role of a company's reward system is to
and list employees commitment to successful strategy execution by rewarding them both monetarily and non-monetarily for their valuable contributions
The basic premise of unrelated diversification is that
any company that can be acquired on good financial terms and that has satisfactory growth and earnings potential represent a good acquisition and a good business opportunity
When a company's culture is out of sync with what is needed for strategic success and good strategy execution
any unhealthy or dysfunctional cultural traits must be changed as fast as possible and management needs to be aggressively striving to ingrain new behaviors and work practices that will enable first rate strategy execution
Which of the following statements about companies in their corporate cultures is incorrect
apples employee centric culture fosters openNess and sharing of company developed technology
Many executives want the work climate at their companies to mirror certain values and ethical standards because they
are committed to improving the company strategy execution performance and reputation
Ethical principles in business
are not materially different from ethical principles in general
Notions of right and wrong fair and unfair moral and immoral ethical and unethical
are present in all societies organizations and individuals
The advantages of manufacturing goods in a particular country and exporting them to foreign markets
are weakened when the countries currency grows stronger relative to the currencies of the countries where the output is being sold
Is strongly implanted culture provide a huge assist in executing strategy because company managers can use the traditions beliefs values common bond or behavioral norms
as levers to mobilize commitment to executing the chosen strategy
The overriding aim and 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
The three tests for judging whether a particular diversification Move can create value for shareholders are the
attractiveness test the cost of entry test and the better off test
Firms generally leverage the expertise of their talent pool and building capabilities by
augmenting or we combining well-established capabilities with existing resources
The essence of socially responsible business behavior is
balancing strategic actions to benefit shareholders against the duty to be a good corporate citizen
Even if the company has a strong culture the culture and work climate may or may not
be compatible with what is needed for affective implementation of the chosen strategy
The managerial approach to implementing and executing a strategy should always
be customized to fit the particulars of a company situation
From a strategy implementing/strategy executing perspective operating budget allocation should
be strategy driven and based on how much organizational unit needs to carry out its piece of the strategic plan efficiently and effectively
The advantages of using a licensing strategy to participate in foreign markets include
being able to leverage the companies technical know how appealing brand or patents without committing the resources or capabilities to foreign markets
The back bone of the process of identifying studying and implementing best practices is
benchmarking
The moral case for why companies should actively promote the betterment of society and act in a manner benefiting all its stakeholders
boils down to is the right thing to do
One high ethical principles are deeply ingrained in the corporate culture of a company culture can function as a powerful mechanism for all of the following except
boosting short termism
The nine cell attractiveness strength matrix provides clear strong logic for considering using
both industry attractiveness and business strength and allocating resources and investment capital to its different businesses
Which of the following is most likely to be morally valid from the perspective of ethical relativism
bribing a government official in an under developed country to obtain a permit to build a hospital
A think global act with global strategic theme put emphasis on
building a global brand-name and aggressively pursuing opportunities to transfer ideas products and capabilities from one country to another
Core competencies in competitive capabilities are usually
bundles of skills and know how that most often grow out of the collaborative efforts of cross functional work groups and departments performing complementary activities at different locations in a firms value chain
Which of the following is the best guideline for deciding what the priorities should be for an allocating resources to the various businesses of a diversified company
business subsidiaries with the brightest profit and growth prospects attractive positions on the nine cell matrix and solid strategic and resource fits generally should had the list for corporate resource support
New strategies often entail budget reallocations because
business units important in the prior strategy but having a lesser role in the new strategy may need downsizing while units and activities that now have a figure in more critical strategic role may need more people new equipment additional facilities and above average increases in their operating budgets
Providing top down guidance can eat the task of implementing strategy
by helping align the actions and behavior of company personnel with the requirements for good strategy execution placing limits on independent action and helping overcome resistance to change
Relative market share is
calculated by dividing a companies percentage share of total industry sales volume by the percentage share held by its largest rival
Using domestic plants as a production base for exporting goods to selecting foreign country markets
can be an excellent initial strategy to test the international waters and learn if a tractive market positions can be established in foreign markets
Six sigma processes
can be used for both improving existing business processes and for developing new processes or products
With A strategy of unrelated diversification and acquisition is deemed to have potential if it
can pass the industry attractiveness test in the cost of entry test and if it has good prospects for profit growth
Company folktales and stories frequently
capture a significant part of a company's culture
A company's ability to Marshal adequate resources in support of new strategic initiatives and steer them to the appropriate organizational units is important to the strategy execution process because
changes in strategy often require resource reallocation and organizational units need the proper funding to carry out their part of the strategic plan effectively and efficiently
Cultural demands to employee unethical means if circumstances become challenging can prompt
clever ways to operate outside establish policies to boost profits
Which of the following topics would least likely be contained in a companies code of ethics
committing to a no layoff policy into adequate funding of employee retirement programs
Which of the following statements concerning the effects of fluctuating exchange rates on companies competing in foreign markets is true
companies that are manufacturing goods in a particular country and are exporting much of what they produce are benefited when the country's currency grows weaker relative to the currencies of the countries that the goods are being exported to
Which of the following companies incurs mainly internal administrative costs due to unethical practices
company D must retain its employees who are using their Twitter accounts to post workplace frustrations
The single most visible factor that distinguishes success culture change efforts from failed attempts is
competent leadership at the top
Which structure combines two or more organizational forms with multiple reporting relationships and is used to foster across the unit collaboration
composite structure
To use location to build competitive advantage a company that operates transnationally or globally must
consider whether to concentrate each activity performs in a few select countries or disperse performance of the activity to many nations and consider in which countries to locate particular activities
Six sigma quality control
consists of a disciplined statistic based system aimed at producing that more than 3.4 defects per million iterations for any business process
Once company managers have decided on a strategy the emphasis turns to
converting the strategy into actions and good results
What is the name of the process for developing new businesses as an outgrowth of a companies established business operations
corporate venturing
I think global act global approach to strategy making is preferable to a think local act local approach when
country by country differences are small enough to be accommodated within the framework of a mostly uniform global strategy
Delegating greater Authority to subordinate managers and employees
creates a more horizontal or flatter organizational structure with a few management layers and usually asked to shorten organizational response times
What supports competitive offenses in one market with resources and profits diverted from operations in another market
cross market subsidization
Company strategies and value creating processes can't be effectively executed without internal information systems that include
customer data employee data supplier partner data operations that are in financial performance data
Ethical principles as they apply to the conduct of personnel and business decisions
deal primarily with the companies duty to comply with legal requirements and conform to ethical norms of society in general
Which of the following is part of strategy supportive resources and capabilities
deciding how much authority to delegate
What is the four most strategic issue that must be addressed by firms when operating in two or more foreign markets
deciding on the degree to various competitive approach to fit the specific market conditions and buyer preferences in each host country
Organizing a companies work effort to promote successful strategy execution involves
deciding which value chain activities to perform in-house in which to outsource making internally perform strategy critical value chain activities the main building blocks and the organization structure
Hey do you centralized organizational structure is predicted on the belief that
decision making authority should be pushed down to the lowest organizational level capable of making timely informed and competent decisions
When a company uses outsourcing to zero in on even better performance of those truly strategy critical activities where is expertise is most needed then it may also be able to
decrease internal bureaucracies flatness organizational structure and shorten the time it takes to respond to changing market conditions
The contention that since there are cross country or cross cultural differences and ethical standards it is appropriate to judge behavior as ethical or unethical in the light of local customs and social mores should take presidents over a single set of ethical standards or what may be applicable in a companies home market
defines what is meant by ethical relativism
Market size and growth rates in different countries can be influenced positively or negatively by:
differing population sizes cultures income levels infrastructure and distribution networks among countries
It becomes particularly urgent for a company to consider diversification when there are
diminishing market opportunities and stagnating sales and its principal business
And expanding into foreign markets a company can strive to gain competitive advantage or offset domestic disadvantages by
dispersing its activities among various countries in a manner that lowers costs or else helps achieve greater product differentiation in transferring competitively valuable competencies and capabilities from its domestic operation to its operations in foreign markets
To create value for shareholders via diversification a company must
diversify into businesses that can perform better under a single corporate umbrella then they could perform operating as independent standalone businesses
One strategic fit-based approach to related diversification would be to
diversify into new industries that present opportunities to transfer specialized expertise technological know-how or other valuable resources and capabilities from one's business value chain to another
Strategies to restructure a diversified company's business lineup involved
divesting low performing businesses that do not fit in acquiring new ones were opportunities are more promising to put a new face on the company's business makeup
A multi divisional structure consists of a
do you centralize structure with a set of operating divisions organized along business product customer groups or geographic lines in a central corporate headquarters to allocate resources provide support functions and monitors divisional activities
Which of the following is a diversified business with one major core business and a collection of small related or unrelated businesses
dominant business enterprise
Which of the following would increase the likelihood of an ethical lapse as well as poor long-term company performance
dramatic cuts in research and development expenditures in years when low earnings are reported by the company
What is it called when a company sells its goods in foreign markets at prices that are below the prices at which it normally sells in its home market or well below its full cost per unit
dumping practices
The triple bottom line refers to what three performance metrics a company should simultaneously succeed in
economical social and environmental
Sometimes a company can short-circuit the task of building an organizational capability in-house by
either acquiring a company that has already developed the capability or else acquiring that desired capability through collaborative effort's with outsiders having the requisite skills know how and expertise
Which of the following is unlikely to be a primary building block and a companies organizational structure
empowered employee departments
To build a total quality culture and achieve full value from the use of TQM or six sigma initiatives managers can take such actions such as
encouraging quality supportive behaviors from the part of employees well empowering employees to make changes to improve quality
Well conceived policies and operating procedures facilitate good strategy execution by
enforcing consistency and her strategy critical activities are performed
Diversification into a new industry can not be considered a success and less it results in
enhanced shareholder value
Total quality management
entails creating a total quality culture that strives for continuously improving the performance of every value chain activity and is driven by a philosophy of managing a set of business practices 100% accuracy in performing tasks involvement and empowerment of employees at all level team-based work design benchmarking and total customer satisfaction
Motivational and incentive compensation practices the email winning the commitment of company personnel to good strategy execution typically
entails decidedly positive rewards for meeting or beating performance targets but also impose sufficiently negative consequences when actual performance fell short of the target
Putting together capable top management team with the right mix of experience skills and abilities
entails filling key managerial slots with smart people who are clear thinkers good at figuring out what needs to be done and who are skilled in making it happen and delivering good results
Successfully leading the effort to instill a spirit of high achievement into a company's culture and put constructive pressures on the organization to achieve good results
entails such actions as treating employees with dignity and respect celebrating individual group and company successes and setting stretch objectives
Which of the following statements about implementing and executing a new strategy is true
executing strategy is a job for a company's home management team not just a few senior managers
Multinational companies that forbid the payment of bribes and kickbacks in their codes of ethical conduct and that are serious about enforcing this prohibition
face a particularly vexing problem of losing business to competitors that have no scrambles an outcome that penalize ethical companies and company personnel
Without a strategic framework managers like the context in which two
fix things that really matter to business unit performance and competitive success
Strategic fit between two or more businesses exists when one or more activities comprising their respective value chains present opportunities
for cross business collaboration to build valuable new resources strength and competitive capabilities
If management is to match a companies organization structure to it strategy in an effective way that it is essential
for strategy critical value chain activities be the main building blocks on the organization chart
If management is to match a companies organization structure to it strategy in an effective way that it is essential
for strategy critical value chain activities to be the main building blocks on the organization chart
The two culture building roles of a company stated values and ethical standards are too
foster a work climate we are company personnel share common and strongly held convictions about how the company's business is to be conducted into provide them with guidance about how to do their jobs steering them toward both doing things right and doing the right things
The primary reasons that companies opt to expand into foreign markets are to:
gain access to new customers achieve lower costs enhance the companies competitiveness capitalize on core competencies and spread business risk across a wider market base
Acquisition of an existing firm rather than via internal development may be the least risky and cost efficient means of overcoming entry barriers such as
gaining access to local distribution networks building supplier networks and establishing working relationships with key government officials
The purpose of managing by walking around or MBWA is to
gather information about what is happening from people at different organizational levels and learn firsthand how well the strategy execution process is proceeding
Companies racing for global market leader ship
generally have to consider establishing competitive positions in the markets of emerging countries
The business case for why companies should act in a socially responsible manner include such reasons as it
generates internal operating benefits as concerns employee recruiting workforce retention employee morale and training costs
The first principle in designing an effective compensation system in the most dependable way to keep people focused on strategy execution and the achievement of performance targets is to
generously reward and recognize people who meet or beat performance targets and two tonight rewards and recognition to those who don't
I think local act local multi domestic strategy and tails
giving local managers considerable strategy making latitude and often producing different product versions for different countries
Good corporate citizen's
go beyond meeting societies expectations for ethical strategies in business behavior by fostering social benefit and balancing the interest of all
The more a manager understands what motivate subordinates in the more here she relies on motivational incentives as a tool for achieving the targeted strategic and financial result the
greater the employees commitment to day by day strategy execution and achievement of performance targets
Superior strategy execution capabilities are
hard to imitate
A reward system that accentuate the positive rewards for good performance
has considerable appeal when cooperation is positively enlisted and rewarded rather than strong-armed by orders and threats implicit or explicit people tend to respond with more enthusiasm dedication creativity and initiative
A localized or multi domestic strategy
has two big drawbacks it hinders transfer of a company's competencies and resources across country boundaries because it's strategies in different host countries can be grounded and bearing competencies and capabilities and it does not promote building a single unified competitive strategy advantage especially one based on low cost
Unrelated businesses
have dissimilar value chains and resource requirements with no competitively important cross business commonalities at the value chain level
The advantages of using an acquisition strategy to pursue opportunities in foreign markets include
having a high level of control and speed as an entry strategy to overcome trade barriers
The advantages of using a franchising strategy to pursue opportunities in foreign markets include
having franchisees bear most of the costs and risks of establishing foreign locations and requiring the franchise or to expand only the resources to recruit train and support and monitor franchisees
A companies value statement and code of ethics
helped to mold the culture and communicate what kind of actions and behaviors are expected of all company personnel
A best practice standard
helps a company move toward performing its value chain activities more effectively and efficiently
The organizing challenge of a decentralized structure that stresses employee empowerment is
how to exercise control over the actions and decisions of empowered employees so that the business is not put at risk while trying to capture the benefits of empowerment
The idea behind benchmarking and best practices is to you
identify companies that are the best performers of an activity and then adapt their practices to fit the companies on specific circumstances and operating requirements
When trying to change the problem culture management should undertake such steps as
identifying facets of the present culture that are supportive a good strategy execution and which ones are not and then specifying what new actions behaviors and work practices are needed in the new culture to improve performance
The place for management to begin in trying to change the problem culture is
identifying facets of the present culture that our obstacles to executing the company strategy and meeting performance targets
Management handling of the strategy implementation/execution process can be considered successful
if and when the company meet or beat performance targets and shows good progress in achieving it strategic vision for the company
The strategic importance of deliberately trying to develop organizational competencies and capabilities is
improved strategy execution in a potential for competitive advantage
It is ideal for key management slots to be filled from outside
in turn around in rapid growth situations
Reward and incentive system serves as a
indirect type of control mechanism that conserves on more costly control mechanisms of supervisory oversight
Although it is relatively easy for rivals to implement process management tools it is much more difficult and Time consuming for them to
instill a deeply ingrained culture of operating excellence
The contention that ethical standards should reflect the collective use of multiple societies in establishing a set of universal ethical principles that are widely recognized as languages and Messi to ethical boundaries on actions and behavior in all situations and in allowing inclusion of a set of prevailing customary actions of local cultures or groups with their traditions and shared values that further prescribed to what represents ethically permissible behavior and what does not constitute the basic principles of
integrated social contract theory
The contention that ethical standards should be governed valve by a limited number of universal ethical principles that are widely recognized as putting legitimate ethical boundaries on actions and behavior in all situations and the circumstances of local cultures traditions and shared values that further prescribe what constitutes ethically permissible behavior and what does not are the basic principles of
integrative social contract theory
Following a public outery the CEO of a nationwide consumer bank was forced to apologize to and route we compensate customers for him the bank and set up false credit card and auto loans accounts over 100000...
internal administrative costs tangible cost and intangible costs
A primary drawback of a global strategy is that it
involves higher coordination costs due to more complex tasks of managing a globally integrated enterprise
Business process reengineering
involves radically redesigning and streamlining the workflow typically enabled by cutting it edge use of online technology and informative systems with the goal of achieving quantum gains in performance of the activity
And umbrella brand
is a generalized resource that can be leveraged and unrelated diversification
A corporate culture founded on ethical business principles and socially approved values
is a positive force underlying a companies long-term financial success and reduces the likelihood of lapses in ethical and socially approved behavior that can damage the company's reputation
Implementing and executing company strategy
is a task for every manager in 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
The process of recruiting and retaining capable employees
is always an essential ingredient of successful strategy execution
A diversified company has a parenting advantage on it
is more able than other companies to boost the combined performance of its individual businesses through its high-level guidance general oversight and other corporate level contributions
Do you think local act local multi domestic type of strategy
is more appealing when the country to country differences in buyer tastes cultural traditions and market conditions are diverse
The degree of cross country variability in paying bribes and kickbacks to Grease business transactions
is one of the thorniest ethical problems that multinational companies face because paying bribes is normal and customary in some countries and ethically or legally forbidden and others
Changing a problem culture
is one of the toughest managerial tasks because of the heavy anchor of ingrain behaviors and ways of doing things
What can happen when international rivals compete against one another in multiple country markets
it could initiate a deterrence affect that encourages mutual restraint in taking aggressive action against one another due to the fear of a retaliatory response that might escalate the battle into a cross-border competitive war
How does a companies an ethical behaviors risk doing direct damage to a company's creditors
it could lead to default on loans due to potential business fallout
The strength of the belief underlying ethical universalism is that
it draws upon the collective use of multiple societies and cultures to put some clear boundaries on what constitutes article business behavior and what constitutes an ethical business behavior no matter what country or culture a company is operating in
A diversified company's business units exhibits good financial resource fit when
it has the resources to adequately support the requirements of its businesses as a group without spreading it self too thin and when it's individual businesses add to a company's overall strength
What is a primary drawback of a localized multi domestic strategy
it hinders the transfer of a company's competencies and resources across country boundaries and hinders the pursuit of a single uniform competitive advantage in all country markets where a company operates
A company strategy needs to be ethical because
it is good business and in the best interest for shareholders
The strength of a think local act local multi domestic strategy is that
it matches a companies competitive approach to prevailing market and competitive conditions in each country market country by country
What is the function of the global reporting initiative
it promotes greater transparency and facilitates benchmarking CSR efforts across firms and industries
A work environment where the culture is in sync with the chosen strategy and is conducive to good strategy execution is considered a valuable managerial ally because
it provides company personnel with clear guidance regarding how we do things around here and produces significant peer pressure from coworkers to conform to culturally acceptable norms
Which of the following is an activity a company engages in to enhance the quality of life for its employees in an attempt to fulfill its corporate social responsibility
it provides work at home opportunities
What is the best way to achieve the efficiency potential of a global strategy
it requires that resources are best practices be shared value chain activities be integrated and capabilities be transferred from one location to another as they are developed
A company's culture is in part defined and identified by
it's internal work climate and personality is shaped by its shared values work practices traditions and ingrained attitudes and behaviors that define how we do things around here
The character of a company's corporate culture is a product of all of the following except
it's lack of mechanisms for aligning constraining and regulating the actions decisions and behaviors of company personnel
For a diversified company to be a strong performer
it's principal business must be in industries with a good outlook for growth and above average profitability
The most important symbolic actions are those the top executives take to
lead by example
When concentrating production in a few locations which of the following can allow a manufacturer to lower unit cost boost quality or master in new technology more quickly
learning curve effects
Outsourcing value chain activities has such strategy executing advantages as
less internal bureaucracy speedier decision making and quicker responses to changing market conditions
When a company social responsibility initiatives become part of the way it operates its business every day these initiatives are
likely to be fully effective in creating a competitive advantage
Companies that compete internationally can perceive competitive advantage in world markets or offset domestic disadvantages by
locating value chain activities in whatever nations prove most advantageous in a manner that uses location to lower cost or achieve greater product differentiation allow for the transfer of competitively valuable competencies and capabilities from one country to another and allow for cross-border coordination
The big problem a franchisor faces is
maintaining quality control due to lack of commitment to consistency and standardization
Once values and ethical standards have been formally adopted a company must
make it unequivocally clear that the company's core values and ethical standards are strictly enforced cultural norms
A company that successfully in methodically apply six Sigma methods to its value chain activities by activity can
make major strides in improving the proficiency with which strategy is executed without sacrificing innovation
An important consideration in designing a strategy supportive reward system is to
make non-monetary rewards and recognition an integral part of the reward system
Triple bottom line reporting is emerging as an important way for companies to you
make the results in their CSR strategies apparent to stakeholders and for stakeholders to hold companies accountable for their impact on society
The guidelines for designing an incentive compensation system that will help drive successful strategy execution include
making the performance pay off a major not minor piece of the total compensation package
What technique can be utilized by leaders to stay informed on how well the strategy execution process is progressing
managing by walking around
Which of the following topics would least likely be contained in a company statement and its core values
mandating full compliance with all laws and regulations
What is the rule for organizing the work effort to support good strategy execution
match the firms organizational structure to its unique strategy
Companies that adopt the principle of ethical relativism in providing ethical guidance to company personnel
may quickly find themselves on a slippery slope with no higher order moral compass if they operate in countries were ethical standards vary considerably from country to country
Changing a problem culture
means illuminating unhealthy or dysfunctional traits as fast as possible
The company stated core values and ethical principles are
meant to foster a work climate were guiding personnel share common and strongly held convictions about how the company's business is to be conducted and provide guidance in displaying the core values in their actions and behavior
And environmental sustainability strategy consists of a companies deliberate actions to
meet the current needs of customers suppliers shareholders employees and other stakeholders in a manner that protects the environment provides for a longevity of natural resources maintains ecological support systems for future generations and guards against ultimate endangerment of the planet
Larger firms with more complex organizational structures are
more decentralized and their decision making them smaller firms
Companies with multinational operations and or newly acquired businesses typically have
multiple cultures or subcultures rather than a single culture
Well conceived state of the art information and operating systems
not only an able better strategy execution to also strengthen organizational capabilities perhaps enough to provide a competitive edge over rivals
A big advantage of related diversification is that
offers ways for a firm to realize 1+1 = 3 benefits because the value chain of the different businesses present competitively valuable cross business relationships
A companies environmental sustainability strategy consists of its deliberate actions to
operate the business in a manner that promotes the longevity of sustainability affects
Economies of scope
or cost reductions that flow from operating in multiple related businesses
According to integrated social contract theory the ethical standards a company should try to uphold
or govern both by a limited number of universal ethical principles and circumstances of local cultures traditions and shared values
The advantages of manufacturing goods in a particular country and exporting them to foreign markets
our weekend when the countries currency grows stronger relative to its currencies of the countries where the output is being sold
When is it difficult or impossible to out strategize rivals beat them with a superior strategy the other main avenue to competitive advantage is to
out execute them or beat them by performing certain value chain activities in superior fashion
Unethical managerial behavior tends to be driven by such factors as
overzealous or obsessive pursuit of personal gain wealth and other self interest a company culture that puts the profitability in good business performance ahead of ethical behavior and heavy pressures on company managers to meet or beat performance targets
The big dilemma and acquisition minded firm faces as whether to
pay a premium price for a successful company or buy a struggling company at a bargain price
Leading the drive for good strategy execution and operating excellence calls upon senior executives to
personally lead the implementation process and drive the pace of progress
The one factor that company executives need not worry about when their company is managing many diverse and related firms is to
pick business units heads having the requisite combination of managerial skills and know how to motivate people
Prescribing policies and operating procedures aids the task of implementing strategy by
placing limits on ineffective independent action and channeling efforts of individuals along a path more conducive to good strategy execution and operating excellence
The difference between political risks and economic risks is that
political risks stem from instability or weakness and national governments while economic risks stand from the stability of a countries monetary system and its economic and regulatory policies
When strategies fail it is often because of
poor execution of the strategy
An acquisition premium is the amount by which the price offered for an existing business exceeds the
pre-acquisition market value of the target company
The better off test for evaluating whether a particular diversification move is likely to generate added value for shareholders involves assessing whether the move well
produce a synergistic outcome such that the companies different businesses perform better together than apart and the whole ends up being greater than the sum of the parts
Sourcing a supply from a small women owned business is an example of corporate social responsibility action two
promote workforce diversity
A weak company culture
promotes greed driven and unethical behavior's
Companies with change resistant cultures are
prone to be preoccupied with avoiding risks and are unlikely to pursue actions to capture emerging opportunities
Management is most powerful tool for mobilizing organizational commitment to competent strategy execution and operating excellence is the
proper use of a reward structure with motivational incentives
A company that promotes carpooling a monkey boys has cut it's printer paper usage in half and has installed solar panels on its roof is an example of a corporate social responsibility action to
protect and sustain the environment
The chief purpose of calculating quantitative industry attractiveness scores for each industry a company has diversified into is to you
provide a basis for drawing analysis based conclusions about the attractiveness of the industries a company has diversified into both individually and as a group in further to provide an indication of which industries offer the best and worst long-term prospects
The approach of a firm using a think global act global version of a trans national strategy and tails
pursuing the same basic competitive strategy theme in all countries where the firm does business but giving local manager some latitude to adjust product attributes to better satisfy local buyers and to adjust production distribution and marketing to be responsive to local market conditions
Management ranking of business units in establishing a priority for resource allocation should
put business units with the brightest profit and growth prospects and solid strategic and resource fit at the top of the investment priority list
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 skills and abilities to get things done
Business process reengineering is a tool for
radically redesigning and streamlining how an activity workflow is performed by pulling the pieces of strategy critical activities out of different departments and unifying their performance in a single department or cross functional work group
The value of determining the relative competitive strength of each business a company has diversified into is to have a quantitative basis for
reading them from the strongest to weakest and contending for market leadership in their respective industries
Which of the following is an advantage of a decentralized organizational structure
reducing the layers of management and encouraging lower level managers and rank and file employees to exercise initiative and act responsibly
The big difference between business processes reengineering and continuous improvement programs like TQM or six sigma is that
reengineering is a tool for achieving one time quantum improvement whereas TQM and six sigma programs aimed at ongoing incremental improvements
The strategic option for expansion into foreign markets do not include
relying on home country governments to restrict imports via raising tariffs and local content requirements
Once established company cultures can be perpetrated by
relying on word-of-mouth indoctrination in the power of tradition to instill the cultures fundamentals as well as frequent reiteration of core values by senior managers and group members and regular ceremonies honoring members who displayed desired cultural behaviors
Enlisting in please sustained and energetic commitment to good strategy execution and achievement of the strategic priorities in financial objectives is best done by
resource full and effective use of motivational incentives above monetary and nonmonetary
Which of the following statements about a high-performance culture is true
results oriented high-performance cultures are permeated with a spirit of achievement and have a good track record and meeting or beating performance targets
Which of the following is a substantive culture changing action that accompanies managers can undertake to alter a problem culture
revise policies and procedures in ways that will help drive cultural change and replace senior executives who are resisting and obstructing needed organizational and cultural change
To create a strategy supportive system of rewards and incentives a company must
reward people for accomplishing results not just for dutifully performing assigned tasks
Calculating quantitative competitive strength ratings for each of a diversified company's business units involves
selecting a set of competitive strength measures waiting the importance of each measure rating each business on each strength measure multiplying the strength ratings by the assigned...
Calculating quantitative attractiveness ratings for the industries a company has diversified into involves
selecting a set of industry attractiveness measures waiting the importance of each measure rating each industry on each attractiveness measure multiplying the industry ratings by the assigned weight to obtain a waiting rating adding the weighted ratings for each industry to obtain an overall industry attractiveness score and using the overall industry attractiveness scores to interpret the attractiveness of all industries both individually and as a group
Codes of ethics and statements of core values
serve as yardsticks for gauging the appropriateness of particular actions decisions and behaviors
A motivation and incentive system that is aimed at spring stronger employee commitment to good strategy execution
should focus on incorporating more positive than negative motivational elements
Visible actions to reallocate operating funds and move people into different and new organizational units
signal a determined commitment to strategic change and can help catalyze a give credibility to the implementation process
When an organization is referred to as a line and staff structure or a flat structure it is normally considered a
simple structure
Diversification into new industries deserve strong consideration when a
single business company encounters diminishing market opportunities and stagnating sales in its principal business
What is the difference between a con amazing scale and economies of scope
skill refers to cost savings to occur directly from larger sized operations wall scope stems directly from strategic fit along the value chain of related businesses
What is the advantage of acquiring capabilities through merger and acquisition's
speed because developing new capabilities internally can take many years of effort
Building an organization capable of good strategy execution entails
staffing the organization building core competencies and competitive capabilities and structuring the organization and work effort
To obtain maximum benefits from benchmarking best practices reengineering TQM and six sigma programs aimed at facilitating better strategy execution managers need to
start with a clear idea of what specific outcomes really matter such as a six sigma defect rate for superior customer satisfaction and then build a total quality culture that is genuinely committed to achieving these outcomes
There is evidence that six sigma can
stifle innovation and creativity in organizations
With an unrelated diversification strategy the types of companies that make particularly attractive acquisition targets are
struggling companies with good turnaround potential undervalued companies that can be acquired at a bargain price in companies that have great growth prospects but are short on investment capital
What makes the managerial task of executing strategy so challenging and demanding is the
supervisory requirements associated with getting company personnel to do things the right way
A company that sets aside 2% of its pretax profits to build and then fund a cancer recovery facility for teens is an example of corporate social responsibility action to
support philanthropy
Which of the following is something to look for in identifying company's culture
the atmosphere spirit in character the pervades the work climate in the values business principles and ethical standards that management preachers and practices
The two best signs a good strategy execution or weather
the companies meeting or beating its performance targets and whether it is performing value chain activities in a manner that is conducive to companywide operating excellence
The theory of corporate social responsibility concerns
the company's responsibility to balance between strategic actions to benefit shareholders against the duty to be a good corporate citizen
The two biggest drawbacks or disadvantages of unrelated diversification are
the demanding managerial requirements and a limited competitive advantage potential due to lack of cross business strategic fit benefits
Two important negatives of unrelated diversification are
the difficulties of competently managing a set of fundamentally different businesses and having a very limited competitive advantage potential that cross businesses strategic fit provides
The litmus test of a companies code of ethics is
the extent to which it is embraced and crafting strategy and in the day-to-day operations of the business
What defines an insular inwardly focused culture
the firm believes they have all the answers because of their past great market success and thus overconfident
In terms of strategy making what is the difference between a one business company and a diversified company
the first use is a business level strategy while the second uses a set of business strategies in a corporate strategy
A firms 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
When calculating the weighted industry attractiveness scores we find the more intensely competitive and industry is
the lower the attractiveness weighting for that industry
A global strategy allows for
the markets in various countries to be part of the world market and competitive conditions across country markets to be strongly linked
The school of ethical universalism holds that
the most fundamental conceptions of right and wrong are universal and apply to members of all societies all companies and all business people
What makes related diversification and attractive strategy
the opportunity to convert cross business strategic fit into competitive advantage over business rivals who's operations don't offer comparable strategic fit benefits
Senior executives can ensure compliance with the ethical code of conduct by considering whether
the proposed action is fully compliant and in harmony with the code of ethical conduct and whether stakeholders would consider anything ethically objective
A companies operating budget must
the strategy driven in order to ampullae fund the performance of key value chain activities
Short termism is defined as
the tendency for managers to focus on immediate performance objectives at the expense of long longer-term strategic objectives
The essential difference between a think global act global and think global act local approach to strategy making is that
the thing Global act global approach gives local managers more latitude to make minor strategy variations when necessary to better satisfy local buyers and to better match local market conditions
A weighted industry attractiveness assessment is generally analytically superior to an unweighted assessment because
the various measures of attractiveness are not likely to be equally important in determining overall attractiveness
In order to coordinate and control the complex set of activities managers must ensure
the various parts of the organizational structure are aligned with one another and also matched to the requirements of the strategy
The essential requirement for different businesses to be related is that
their value chain exhibits competitively valuable cross business commonalities
Because functional organization structures often result in pieces of strategically relevant activities and capabilities being scattered across many different functional departments companies have found that
there is merit in using business processes reengineering to radically redesign and streamline strategy critical processes and workflow from different departments and unifying their performance into a single department or cross functional work group that has charge over the whole process
In adaptive corporate cultures
there's a spirit of doing what's necessary to ensure long-term organizational success provided that court values and business principles are not compromised and provided top management undertake the changes in a manner that exhibits genuine concern for the legitimate interest of stakeholders
How do good corporate citizen function
they pursue discretionary activities that contribute to the betterment of society especially in areas or government has chosen not to focus it's efforts or has fallen short
A weaker US dollar is an economically favorable exchange rate shift for manufacturing plants based in the United States
this is a true statement
The rationale for making strategy critical value chain activities the primary building blocks in a companies organizational scheme is based on the
this is that if activities crucial to strategic success are to have the resources decision making influence and organizational impact they have to be centerpieces in the organizational scheme
The task of top executives and making corrective adjustments includes
thoroughly analyzing the situation and exercising good business judgment and deciding what actions to take
There is ample room for companies to customize their diversification strategies and be defined as being either narrowly or broadly diversified and when combination related unrelated diversification strategy options are adopted they have particular appeal to
those companies with a mix of valuable competitive assets covering the spectrum from generalized to specialized resources and capabilities
A well designed reward system
ties rewards to performance outcomes directly linked to good strategy execution and the achievement of financial and strategic objectives
Companies that compete on an international basis have a competitive advantage over the purely domestic rivals
to benefit from coordinating activities across different countries domains
Checking the competitive advantage potential of cross business strategic fit in a diversified company involves evaluating the extent to which sister businesses present opportunities
to create a positive image in the industry irrespective of the financial performance of its businesses
The big issue an acquisition minded firm must consider is whether
to pay a premium price for a successful local company or by struggling firm at a discount price
A useful guideline in designing strategy facilitating policies and operating procedures is
to prescribe enough policies to give organizational members clear direction and implementing strategy into place reasonable boundaries on their actions. This then empowers them to act within these boundaries in pursuit of company goals A best practice refers to a, method of performing an activity or business process that consistently deliver superior results compared to other approaches and that at least one company has demonstrated works particularly well in terms of delivering operating excellence
Which of the following rationales for pursuing unrelated diversification is likely to increase shareholder value
to restructure an underperforming business
Well ultimate responsibility for implementing and executing strategy falls upon the shoulders of senior executives
top level managers still have to rely on the active support and cooperation of middle and lower level managers in pushing needed changes in functional areas and operating units
A key approach for a company to grow sales and profits in several country market is too
transfer is valuable competencies and resource strengths among these markets to aid in the development of broader competencies and capabilities
All of the following are examples of leadership actions or managerial practices taken to foster a results oriented high-performance culture except
treating employees as individuals with no regard for the rank or contributions
Merely fine-tuning the execution of a companies existing strategy normally requires
trimming costs and shifting resources to activities that have a higher priority
The leadership challenges the top executive space in making corrective adjustments when things are not going well include
undertaking a thorough analysis of the situation exercising good business judgment and deciding what actions to take and then ensuring good implementation of the correct of actions that are initiated
Total quality management programs
until creating a corporate culture bent on continuously improving the performance of every task in every value chain activity
What actions behaviors and work practices that are conducive to good strategy implementation support the strategy execution effort
using peer pressure to company personnel to perform enhancing worker productivity and buying and focusing the attention of employees and what is most important
Six sigma programs
utilize advanced statistical methods to improve quality by reducing defects and variability in the performance of business processes
The Basic strategy options for local companies in competing against global challengers include
utilizing understanding of local consist customer needs and preferences to create customize products or services developing business models to exploit shortcoming in local infrastructure in using acquisitions and rapid growth to defend against expansion minded multinationals
The process of making corrective adjustments in strategy execution
varies according to the situation
A manufacturer and marketer of prescription pharmaceuticals decided to raise the price of an anti-malaria drug from $15 per does to $750 per does a price increase a 5000%. Following a public Adderly the CEO was forced to resign the company was forced to retract the price hike and the company stock price sharply to declined. Which of the following has the company incurred
visible and intangible class
A multinational automobile manufacturer issues a public statement the company's vehicle emissions test had been falsified to meet environmental compliance standards over recent years using software specifically designed for that purpose following the news the CEO is replaced vehicle sales plumber in the company stock price sharply to clients which of the following has the company incurred
visible and intangible costs
Which of the following statements about a weak company culture is true
weak cultures provide little assistance and executing strategy because there are no traditions values or behavioral norms that management can use as lovers to mobilize commitment to executing the chosen strategy
Which of the following statements about six sigma quality programs is true
well six sigma programs often improve the efficiency of numerous operating processes there is evidence that the approach can stifle innovative activities
Striving to be socially responsible and tails touching such bases as
what if any actions to take to protect or enhance the environment beyond what is legally required
In which of the following situation is implying a think local act local multi domestic strategy highly questionable
when a company desires to transfer competencies and resources across country boundaries in a striving to build a single uniform competitive advantage worldwide
When should a culture be changed as rapidly as it can be managed
when a strong culture is unhealthy or otherwise out of sync with the actions and behaviors needed to execute the strategy successfully
Which of the following is a condition that makes an internal start up strategy appealing over an acquisition
when an internal start up has the necessary scale and resource strengths to compete with rivals
When are capabilities motivated acquisition essential
when industry conditions like technology advances are central to the growth and rivalry is intense
The school of ethical relativism holds that
when there are cross country or cross cultural differences in what is deemed ethical or unethical in business situation it is appropriate for local moral standards to take precedence over what the ethical standards may be elsewhere
When are multiple subcultures most problematic
when they embrace conflicting business philosophies that are inconsistent with superior strategy execution
When is a think local act local approach to strategy making appropriate
when they need for local responsiveness is high due to significant cross country differences in demographic cultural and market conditions and where benefits from standardization is limited
A greenfield venture in a foreign market is one
where the company creates a wholly owned subsidiary every business by setting up all aspects of the operation upon entering the market from the ground up
I believe in ethical relativism leads to the conclusion that
whether the use of underage labor in the payment of bribes and kickbacks should be deemed as Ethical or unethical depends on the moral standards and values in business forms that prevail in particular culture societies countries or circumstances
One of the biggest strategic challenges to competing in the international arena includes
whether to offer a standardized product worldwide or a customize product offering in each different country market
When a company operates in the markets of two or more different countries is formal strategic decision is
whether to very the company's competitive approach to fit specific market conditions and buyer preferences in each house country or to employ essentially the same strategy in all countries
A related diversification strategy involves building the company around businesses
with strategic fit with respect to key value chain activities in competitive assets