STR 581: Ch. 10: Building an Organization Capable of Good

Which of the following correctly describe the two extremes of organizational decision-making latitude?

1. to centralize decision making, which gives top executives considerable control over daily operations 2. to decentralize decision making, which can give mid-level managers more authority to make decisions

The many roles of a relationship manager include which of the following?

1. facilitating communication and cooperation 2. getting the right poeple together for an initiative

Which of the following are ensured by a skilled manager regarding training?

1. training involves employees at all levels 2. training is effective and adequately funded

As individual and team experience grows, the process of capability building can be accelerated by _______.

motivating individuals and teams through incentives

Firms can become proficient at developing capabilities through _____.

regular practice

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

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

True or false: when executing strategy, managers make use of a basic action agenda that serves as a recipe for successful strategy execution.

false

Which of the following is an example of outsourcing a value chain activity?

a winery contracts farmers to produce grapes

The main task of a relationship manager is to ____

build bridges with external partners so that business ventures achieve their goals

Deloitte has been recognized on lists of the best companies to work for due to its ______.

close attention to finding, keeping, and developing skilled employees.

Which of the following statements is true about decentralized organizational structures?

mid level managers and frontline employees are inclined to show initiative and be more productive in decentralized systems

Which of the following statements about a functional organizational structure are true?

1. the main advantage of functional structure over simple structure is greater task specialization 2. functional structures are known as departmental structures

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

1. recruit the most qualified people 2. offer competitive compensation packages

The structural organization of a firm ____

1. reflects prior organizational patterns and internal circumstances 2. is, in part, a product of executive judgements

The first step to developing an organizational ability involves _____

1. shaping the work of individuals into a collaborative efforts 2. identifying the right people to lead the process

A company's formal and informal arrangements of tasks, responsibilities, and lines of authority and communications make up the company's ____ structure.

organizational

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 _____

people in their 20s and 30s

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 _________.

people in their 20s and 30s

The process fo executing strategy ______

usually involves all value chain activities

A substandard management team is likely to ______.

waste the effort of the people working under them

cross business strategic fit can be defined as ____

the efficient coordination of individual business units in a corporation

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

the firm's size and complexity

A business network structure is ____

the relationship between several independent organizations involves in a shared objective

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 the organization

True or false: partnerships can give a company a competitive advantage in local markets

true

Which of the following are characteristic of a well managed business network structure?

1. it encourages cooperation and collaboration among partners 2. it often has one firm playing the central role of coordinating activity among partners

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

1. sets up the communication and reporting mechanisms that will best help the company execute its strategy 2. supplements the organizational designs with task forces and teams to facilitate coordination 3. picks an organizational design and alters the design appropriately to meet the company's needs

Which of the following statements concerning the disadvantages of a decentralized system are true?

1. top level executives may experience difficulty monitoring the actions of personnel under their supervision 2. managers and employees can more readily make decisions that undermine the interests of other areas of the company

Which of the following statements are true concerning a centralized organizational system?

1. top level managers may have difficulty interpreting technical information that is key to operations in lower levels of the company 2. top level managers have difficulty in obtaining all the information they need in an efficient manner

When crafting and executing strategy, good managers need to ____.

1. upgrade resources and capabilities are necessary 2. put the resources and capabilities in place that will enable the strategy to succeed

In general, companies seeking to update and remodel existing capabilities find it less time-consuming to begin the process by doing which of the following?

1. working from an established template 2. recombining proven company capabilities

Which of the following statements accurately identifies a disadvantage of centralized deacon making?

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

Which of the following is an example of a company that augmented an existing capability?

Canon repurposing technology in calculations to improve camera production

A multidivisional organizational structure is ____

a decentralized structure consisting of a set of operating divisions with a central headquarters that monitors divisional activities

Which of the following statements about the organization structure of a business is true?

it is a hard and fast rule that a firm's organizational structure should be matched to the particular requirements of its strategy implementation

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

keep existing reporting relationships intact

What is a company's best source of creative ideas for ground-level improvements that lead to operating excellence?

knowledgeable and engages employees

If strategy critical activities are the centerpiece of a company's organizational structure, it is likely that ____

the company will dedicate the necessary resources to those activities

If strategy critical activities are the centerpiece of a company's organizational structure, it is likely that ____.

the company will dedicate the necessary resources to those activities

Which of the following scenarios best corresponds to characteristics of decentralized organizational system?

1. a company experiences a sustained period of high morale because people feel empowered to direct their own work 2. quarterly profits fall because of minimal collaboration among different units in the company

What are the four basic types of organizational structure?

1. functional 2. multidivisional 3. matrix 4. simple

Which of the following are risks for a company that transfers capabilities through mergers to acquisitions?

1. incompatibilities between the two formerly separate companies may disrupt the transfer process 2. the new company may experience a prolonged slump in stock price if the transfer process does not go smoothly

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

1. linking incentives to achieving the financial goals of the strategy 2. creating a culture within the organization that promotes effective strategy execution 3. installing systems that allow personnel to carry out their roles in the strategy execution process

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

1. mastering the ability through repetition and sustained time on task 2. maintaining appropriate levels of resource investment

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 is a disadvantage of matrix organizational structures?

The matrix structure can increase internal costs by adding a layer of management to oversee business operations

Staffing the organization of a company involves

assembling a management team and hiring employees

When setting an action agenda for implementing a business strategy, a business manager should being by ______.

assessing what the organization needs to do differently in order to carry out the strategy

Which of the following statements regarding the matrix organizational structure is true?

an employee in a matrix structure may be required to report to several different managers

Many high tech companies are seeking employees who

are imaginative and bring positive energy to the work environment

Many high tech companies are seeking employees who ______.

are imaginative and bring positive energy to the work environment

Managers who possess the skill required to implement strategy are not afraid to _____.

ask incisive questions

A company that enters into an outsourcing relationship runs the risk of ____

becoming overly reliant on outside suppliers

Which of the following statements best describes the process of crafting a business strategy?

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

Managers can accelerate the process of capability building by ____.

developing "stretch objectives"

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

developing capabilities internally is a collaborative process that often happens though the combined efforts of different departments

In small organizations, top managers are typically required to ______.

establish action steps and interact directly with frontline managers and employees.

True or false: many progressive companies looking to find talented and energetic employees discourage new hires from challenging existing ways of thinking.

false

In a diversified company, the corporate parent ____

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

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

select a partner based on the degree of compatibility between the two companies

A company's organizational structure has ____

significant impact on management's capacity to coordinate activities

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

strategically less important activities

It can be preferable to obtain new capabilities through a merger or an acquisition when ____.

1. a company lacks the capacity to develop the capability internally 2. market conditions are evolving quickly and the company needs fast capability development to keep pace

Which of the following are advantages of a multidivisional organizational structure?

1. a hierarchical structure that allows executives to oversee a diverse set of operations 2. improved decision making within each division

In addition to helping companies develop strategy-critical competencies, outsourcing can also help a company _____

1. adapt to changes in the market quickly 2. eliminate bureaucracies that can stall business processes

A company may choose to outsource certain value chain activities because ____

1. another company may have the capability to perform those activities more efficiently 2. outsourcing an activity may allow a company to concentrate its efforts on activities that are at the core of its strategy

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

1. are clear thinkers 2. have experience delivering results

When implementing a business strategy, a manager needs the skill to ___

1. build a consensus and keep projects moving 2. integrate the work of different groups into a cohesive whole

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

1. by collaborating with a company, internalizing its methods, and acquiring its capabilities 2. by engaging in a joint venture with another firm that has a complementary set of capabilities 3. by outsourcing the value chain activity in which the company's capabilities are substandard

Which of the following statements identify key advantages of centralized decision making?

1. centralized decision making reduces the likelihood of conflicting decisions among mid level managers 2. centralized decision making can give top leaders the power to act effectively in a crisis

Which of the following statements about the relationship between value chain activities are true?

1. companies should make critical value chain activities the centerpieces of their organizational structure 2. some value chain activities are more critical than others for effective strategy execution

Outsourcing can help ____

1. consumer electronics companies get next generation products to market ahead of the competition 2. car companies produce new models more quickly

Which of the following are some regularly used methods of capability building?

1. developing capabilities within a company 2. merging with other companies 3. establishing partnerships with other companies

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

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

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

1. each division within a multidivisional structure is essentially a business 2. the individual divisions within a multidivisional organization often operate as independent profit centers

Fast-food enterprises can rely on effective partnerships with local franchises to ___

1. ensure consistency across locations 2. maintain proper levels of cleanliness and staff courtesy toward customers 3. ensure that food products meet corporate standards for quality

Which of the following are common measures that companies have taken to demonstrate their commitment to ongoing training?

1. establishing internal universities 2. reimbursing employees for tuition payments for additional college training in their field

Which of the following statements accurately describe the process of executing a business strategy?

1. executing a business strategy is an action-driven activity 2. Executing a business strategy requires managers who work effectively with colleagues

When devising an action agenda, each manager within an organization needs to determine ____.

1. how to accomplish the various things that must get done in order to execute the strategy 2. what needs to be accomplished in his or her area of responsibility in order to carry out the strategy

To help find, retain, and develop talented employees, Deloitte offers which of the following programs?

1. incentives for top performers, including fellowships and coaching 2. guidance in the form of close mentoring relationships or sponsorships 3. training programs for all employees as they are promoted through the ranks 4. a definitive and clearly communicated route through the firm's hierarchy

Which of the following statements regarding the execution of a strategy are true?

1. many of the policies and procedures in a business strategy need to be customized to fit the particulars of a company's situation 2. some managers have more success than other managers with certain approaches to implementing strategy

Which of the following are advantages of the matrix organizational structure?

1. matrix structure facilitative collaboration and allow for sharing key resources 2. matrix structures can help companies realize economies of scope

Which of the following are advantages of the matrix organizational structure?

1. matrix structures can help companies realize economies of scope 2. matrix structures facilitate collaboration and allow for sharing key resources.

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

1. mid-level managers 2. senior managers

Characteristics of the simple structure include ____

1. minimal use of training 2. few rules

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

1. offer opportunities for employees to work internationally 2. provide training opportunities for employees throughout their careers.

A matrix organization structure is ____

A combination structure in which the organization is organized along two or more dimensions at once

Obtaining a critical mass of managerial talent is important because _______.

a highly capable managerial team is likely to exchange ideas and propose sound operational improvements

A simple organizational structure is ____

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

A functional organizational structure is ____.

a structure that is organized along functional lines, where a function represents a major component of the firm's value chain

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

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

Effective strategy execution can _____.

allow a company to control a new market for a period of time

Excellence in strategy execution can provide competitive advantage by _____.

allowing a firm to get products to market faster than competitors

Acquiring capabilities through a merger or an acquisition _____.

often allows a company to add capabilities more quickly than developing new capabilities internally

Capability transfer through a merger or an acquisition can be challenging because _____.

capabilities are developed and sustained through routines that often cannot be transferred readily from one company to another

Which of the following statements about executing business strategy is the most accurate?

certain managerial tasks must always be carried out in order to execute strategy effectively.

The bigger the corporation, the more strategy execution depends on _____

operating managers who direct the implementation of changes at the lower levels of the company

True or false: when implementing a new strategic initiative, business managers rarely encounter resistance to change ______.

false

True or false: when implementing a new strategic initiative, business managers rarely encounter resistance to change.

false

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

fitful and delayed by mistakes

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

fitful and delayed by mistakes

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

inhibit cross-business collaboration

Which of the following statements about the benefits of assembling a highly capable management team is correct?

managers who work well together can produce better results than one or two managers working on their own