exam 2-ch.10
Which of the following statements about developing resources and capabilities is true? (multiple choice question) Building resources and capabilities is critical only when a company is implementing a new strategy. 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. Successful companies rarely adopt strategies that require the addition of new resources and capabilities. If a company is implementing a new strategy, it is likely that managers can get by on existing resources and capabilities.
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 statements accurately identifies a disadvantage of centralized decision making? [multiple choice question] Frontline employees in a centralized system frequently make mistakes because they take matters into their own hands. A business with a centralized decision-making structure may be slow to respond to changing market conditions. In a centralized system, top managers typically have difficulty identifying who is accountable when a problem arises. Top executives in centralized systems have immediate access to too much information, which can prevent them from following their intuition.
A business with a centralized decision-making structure may be slow to respond to changing market conditions.
The type of organizational structure that best suits a firm depends on which of the following? Multiple choice question. shareholders' opinions The firm's strategy The firm's size and complexity Personal preferences of top executives
The firm's size and complexity
When can be preferable to obtain new capabilities through a merger or an acquisition? (Choose every correct answer.) When the desired capability is closely associated with company's current lineup of capabilities When a company lacks the capacity to develop the capability internally When market conditions are evolving quickly and the company needs fast capability development to keep pace When a company has a firm grip on the top position in the market and wants to proceed deliberately in order to sustain its position
When a company lacks the capacity to develop the capability internally. When market conditions are evolving quickly and the company needs fast capability development to keep pace.
A company that enters into an outsourcing relationship runs the risk of ______. [multiple choice question] becoming overly reliant on outside suppliers experiencing a hostile takeover from the company handling the outsourced work assuming complete control of its own destiny overdeveloping its expertise in strategy-critical areas of the value chain
becoming overly reliant on outside suppliers.
When implementing a business strategy, a manager needs the skill to_______ (Multiple select question) achieve proficiency with the strategy in a short period of time. build a consensus and keep projects moving. keep controversial issues from cropping up. integrate the work of different groups into a cohesive whole.
build a consensus and keep projects moving. integrate the work of different groups into a cohesive whole.
The main task of a relationship manager is to ______. [multiple choice question] build a bridge between frontline workers and shareholders in order to connect distant constituencies build bridges with external partners so that business ventures achieve their goal foster good relationships between top executives and the marketing department to ensure that a company is communicating its value make connections with a company's customer base to ensure continued sales
build bridges with external partners so that business ventures achieve their goal.
If strategy-critical activities are the centerpiece of a company's organizational structure, it is likely that_____. [multiple choice question] senior executives will need to modify the company's organizational structure to maximize profits these activities will create inefficiencies in company processes the company will dedicate the necessary resources to those activities strategy-critical activities will have minimal organizational impact
the company will dedicate the necessary resources to those activities.
What do the roles of a relationship manager include? (Choose every correct answer.) Acting as a liaison between disgruntled employees and top executives Facilitating communication and cooperation Terminating staff that are failing to meet quotas Getting the right people together for an initiative
- Facilitating communication and cooperation - Getting the right people together for an initiative
To match structure to strategy effectively, a strategy implementer does which of the following? (Choose every correct answer.) Directly oversees the flow of products and services through all components of the value chain Supplements the organizational designs with task forces and teams to facilitate coordination Sets up the communication and reporting mechanisms that will best help the company execute its strategy Picks an organizational design and alters the design appropriately to meet the company's needs
- Sets up the communication and reporting mechanisms that will best help the company execute its strategy. - Supplements the organizational designs with task forces and teams to facilitate coordination. - Picks an organizational design and alters the design appropriately to meet the company's needs.
To help find, retain, and develop talented employees, Deloitte offers which of the following programs? (Choose every correct answer.) Cash bonuses and awards based on seniority and years of service A definitive and clearly communicated route through the firm's hierarchy Training programs for all employees as they are promoted through the ranks Guidance in the form of close mentoring relationships or sponsorships Incentives for top performers, including fellowships and coaching
A definitive and clearly communicated route through the firm's hierarchy Training programs for all employees as they are promoted through the ranks Guidance in the form of close mentoring relationships or sponsorships Incentives for top performers, including fellowships and coaching
Which of the following scenarios best reflects an advantage of a centralized organizational structure? [multiple choice question] A top-level executive is unable to initiate and sustain a uniform response to a crisis. Frontline workers are unaware of who is in charge of business processes. A top-level executive is able to identify the accountable parties when a company fails to meet a production quota. Disagreements among mid-level managers lead to inefficiencies in coordinating value chain activities.
A top-level executive is able to identify the accountable parties when a company fails to meet a production quota.
Which of the following statements regarding the matrix organizational structure is true? [multiple choice question] An employee in a matrix structure may be required to report to several different managers. Each manager in a matrix structure is responsible for a group of employees who report only to that manager. The purpose of the matrix structure is to limit cross-unit communication so that each department can focus on its core strengths. The matrix structure overlays one type of structure onto another type for the purpose of isolating departments from one another.
An employee in a matrix structure may be required to report to several different managers.
Which of the following statements best describes the process of crafting a business strategy? Multiple choice question. Crafting business strategy is based on the analysis of market conditions and the company's resources. Crafting a business strategy tests a manager's ability to instill discipline in colleagues. Crafting a business strategy is an operations-driven activity based on managing people. Crafting a business strategy involves continually meeting or surpassing performance targets.
Crafting business strategy is based on the analysis of market conditions and the company's resources.
Which of the following statements about a functional organizational structure are true? (Choose every correct answer.) Functional structures are known as flat structures. Examples of functional units in a functional organizational structure are manufacturing, R&D, and customer service. In functional structures, the chief executive directly oversees operations within each functional unit. Functional structures are known as departmental structures.
Examples of functional units in a functional organizational structure are manufacturing, R&D, and customer service. Functional structures are known as departmental structures.
Which of the following statements about the organizational structure of a business is true? [multiple choice question] It is a hard-and-fast rule that a firm's organizational structure should be matched to the particular requirements of its strategy implementation. Most successful firms pay little attention to how well their organizational structure matches the requirements of executing their strategy. It is a hard-and-fast rule that a growing company must wait a long period of time before its strategy and its organizational structure are aligned. There is a large set of hard-and-fast rules dictating how the organization of work should support strategy execution.
It is a hard-and-fast rule that a firm's organizational structure should be matched to the particular requirements of its strategy implementation.
Which of the following statements concerning the disadvantages of a decentralized system are true? (Choose every correct answer.) Many companies have concluded that the advantages of decentralization are canceled by the inefficiencies and problems associated with it. Managers and employees can more readily make decisions that undermine the interests of other areas of the company. Top-level managers frequently have too much control over mid-level managers. Top-level executives may experience difficulty monitoring the actions of personnel under their supervision.
Managers and employees can more readily make decisions that undermine the interests of other areas of the company. Top-level executives may experience difficulty monitoring the actions of personnel under their supervision.
Which of the following scenarios best corresponds to the disadvantages of decentralized organizational systems? [multiple choice question] Quarterly profits fall because of minimal collaboration among different units in the company. Outside suppliers become aggravated because a plant supervisor does not have the authority to respond to their concerns. Production rises because top managers are able to keep managers focused on companywide objectives. Production falls, but top executives are able to identify the exact source of the problem and correct it with little difficulty.
Quarterly profits fall because of minimal collaboration among different units in the company.
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? (Choose every correct answer.) Recombining proven company capabilities Adopting a new set of skills from outside the company's pool of talent Working from an established template Developing new strategic capabilities from scratch
Recombining proven company capabilities. Working from an established template.
Which of the following are ensured by a skilled manager regarding training? (Choose every correct answer.) Training involves employees at all levels. Training is a part of employee performance evaluation process. Training occurs only during a company's normal operating hours. Training is effective and adequately funded. Training focuses primarily on underachieving employees.
Training involves employees at all levels. Training is effective and adequately funded.
True or False: Partnerships can give a company a competitive advantage in local markets.
True Reason: many beer manufacturers, for example, gain access to local markets through their outsourcing relationships with bottlers and distributors.
A matrix organizational structure is ______. a structure that is organized along functional lines, where a function represents a major component of the firm's value chain a decentralized structure consisting of a set of operating divisions with a central headquarters that monitors divisional activities a structure in which a central executive handles all major decisions and oversees organizational operations a combination structure in which the organization is organized along two or more dimensions at once
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 ______. (multiple choice question) managers need to work together to maintain the status quo when implementing new strategy. skilled managers in a team are apt to limit each other's potential. a highly capable managerial team is likely to exchange ideas and propose sound operational improvement. managers need to compete with each other until the most talented person assumes control of the group.
a highly capable managerial team is likely to exchange ideas and propose sound operational improvement.
Effective strategy execution can ______. [multiple choice question] allow a company to control a new market for a period of time make a company vulnerable to being dominated in the market interfere with a company's competitive advantage expose a company's internal flaws to competitors
allow a company to control a new market for a period of time
Excellence in strategy execution can provide competitive advantage by ______. [multiple choice question] allowing a firm to get products to market faster than competitors eliminating the need to advertise products and services removing the need for a firm to react quickly to market changes raising a firm's production costs
allowing a firm to get products to market faster than competitors
Many high-tech companies are seeking employees who ______. (multiple choice question) are ambiguous and uncomfortable with learning on the fly require a large team of people to motivate them to do their best are imaginative and bring positive energy to the work environment think that the phrase "people are our most important asset" is trite
are imaginative and bring positive energy to the work environment
Managers who possess the skill required to implement strategy are not afraid to ______. (multiple choice question) ask incisive questions reprimand mid-level managers in front of their subordinates openly question the authority of executives above them ignore the company's core values to meet goals
ask incisive questions
Staffing the organization of a company involves ______. ensuring that the company can adapt to market conditions and meet customer expectations. assembling a management team and hiring employees. accumulating the financial resources necessary to execute the strategy. establishing lines of authority and channels of communication.
assembling a management team and hiring employees
When setting an action agenda for implementing a business strategy, a business manager should begin by ______. (multiple choice question) filling key positions in the company with the personnel who will carry out the strategy. creating an organizational structure that can support the execution of the strategy. allocating funds to the various divisions within the organization that will participate in executing the strategy. assessing what the organization needs to do differently in order to carry out the strategy.
assessing what the organization needs to do differently in order to carry out the strategy.
Managers can accelerate the process of capability building by ______. [multiple choice question] developing "stretch objectives" limiting collaboration among departments restricting the integration of bundles of know-how into organizational routines minimizing the incentive to change
developing "stretch objectives"
In small organizations, top managers are typically required to__________ (multiple choice question) direct resources throughout a large number of geographically scattered units. hire outside consultants to direct actions steps and push the process along. establish action steps and interact directly with frontline managers and employees. build consensus and delegate responsibilities to middle- and low-level managers throughout the organization.
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 Reason: many progressive companies encourage new hires to be innovative and to propose ideas for new products and operational improvements.
During the early period of capability building, progress is often ______. [multiple choice question] virtually immediate fitful and delayed by mistakes the result of a single person's efforts smooth and efficient
fitful and delayed by mistakes
The main disadvantage of a multidivisional business structure is that it can ______. [multiple choice question] lead to cross-business synergies inhibit cross-business collaboration blur responsibilities between mid-level and top executives increase the cost of coordinating divisionwide activities
inhibit cross-business collaboration.
Some companies avoid establishing ideal organizational relationships in order to ______. [multiple choice question] ensure that divisions remain isolated from each other keep existing reporting relationships intact avoid maximizing their competitive advantage
keep existing reporting relationships intact
In a diversified company, the corporate parent ______. [multiple choice question] is most likely to realize maximum profits by giving business unit heads free rein to act independently. should keep business units with overlapping processes completely separate from each other. may need to centralize certain operations to achieve a cross-business strategic fit among its separate businesses. can eliminate duplication of effort by maintaining a high degree of decentralization throughout the organization.
may need to centralize certain operations to achieve a cross-business strategic fit among its separate businesses
As individual and team experience grows, the process of capability building can be accelerated by ______. [multiple choice question] removing incentives and targets motivating individuals and teams through incentives making learning a less deliberate endeavor and focusing on other objectives changing company core values to suit the evolving requirements of strategy execution
motivating individuals and teams through incentives
Acquiring capabilities through a merger or an acquisition ______. Multiple choice question. is rarely the best way for a company to upgrade its portfolio of capabilities is, in most cases, a high-risk, low-reward endeavor often allows a company to add capabilities more quickly than developing new capabilities internally often requires more time than developing new capabilities internally
often allows a company to add capabilities more quickly than developing new capabilities internally
The bigger the corporation, the more strategy execution depends on ______. (multiple choice question) operating managers who direct the implementation of changes at the lower levels of the company operating managers who make the case for change and build consensus throughout the organization upper-level managers who communicate directly with frontline managers and employees upper-level managers who observe the progress of change firsthand throughout the entire organization
operating managers who direct the implementation of changes at the lower levels of the company
A company's formal and informal arrangements of tasks, responsibilities, and lines of authority and communications make up the company's _________________ structure.
organizational
Firms can become proficient at developing capabilities through ______. [multiple choice question] budget cuts regular practice intermittent effort watching training videos
regular practice
To limit the risk associated with outsourcing, many companies outsource ______. [multiple choice question] to companies based overseas rather than within national boundaries only after consulting directly with activist groups strategically more important activities strategically less important activities
strategically less important activities.
Cross-business strategic fit can be defined as ______. [multiple choice question] promoting overlap and competition among the various business units in a diversified corporation maintaining decentralized business operations in a diversified corporation top-down executive control over all business units in a corporation the efficient coordination of individual business units in a corporation
the efficient coordination of individual business units in a corporation
Which of the following statements regarding the matrix organizational structure is true? [multiple choice question] The purpose of the matrix structure is to limit cross-unit communication so that each department can focus on its core strengths. An employee in a matrix structure may be required to report to several different managers. The matrix structure overlays one type of structure onto another type for the purpose of isolating departments from one another. Each manager in a matrix structure is responsible for a group of employees who report only to that manager.
An employee in a matrix structure may be required to report to several different managers.
The process of executing strategy ______. Multiple choice question. falls primarily on the shoulders of middle- and lower-level managers is ultimately the responsibility of frontline workers focuses on the manufacturing and supply components of the value chain usually involves all value chain activities
usually involves all value chain activities
A substandard management team is likely to ______. (multiple choice question) waste the effort of the people working under them build a culture that motivates people to deliver results meet all internal deadlines allocate resources efficiently
waste the effort of the people working under them.
Which are examples of how outsourcing can help a company? (Choose every correct answer.) Multiple select question. A technology firm slows down the rate of product evolution in the software market. A car company produces new models more quickly. A packaging company eliminates the need to work closely with suppliers. A consumer electronics company gets next-generation products to market ahead of the competition.
A car company produces new models more quickly. A consumer electronics company gets next-generation products to market ahead of the competition.
True or false: There is a definitive managerial recipe for successful strategy execution that cuts across all company situations and strategies and works for all managers.
False Reason: There is no definitive managerial "to do" list that applies in all circumstances. Instead, management must rely on its judgment about how to proceed when executing strategy.
Which of the following are ways that a company can access a capability through a collaborative partnership? (Choose every correct answer.) By outsourcing the value chain activity in which the company's capabilities are substandard. By raiding a company and hiring its best managers so that they can transfer the capability to your company. By collaborating with a company, internalizing its methods, and acquiring its capabilities. By engaging in a joint venture with another firm that has a complementary set of capabilities.
By outsourcing the value chain activity in which the company's capabilities are substandard. By collaborating with a company, internalizing its methods, and acquiring its capabilities. By engaging in a joint venture with another firm that has a complementary set of capabilities.
What does each manager within an organization need to determine when devising an action agenda? (Choose every correct answer.) How to maximize the benefits he or she personally receives from the strategy. How to accomplish the various things that must get done in order to execute the strategy. What needs to be accomplished in his or her area of responsibility in order to carry out the strategy. The most efficient way to facilitate communication between shareholders and frontline employees.
How to accomplish the various things that must get done in order to execute the strategy. What needs to be accomplished in his or her area of responsibility in order to carry out the strategy.
Which of the following is an action that is likely to be taken by a strong manager? Multiple choice question. Scheduling a weekly meeting with mid-level managers to check on the progress of frontline employees. Waiting a week to respond to an email concerning a workflow issue. Making an abrupt adjustment when frontline employees show initial resistance to change. Hiring a person for a mid-level position based solely on the recommendation of a former associate.
Scheduling a weekly meeting with mid-level managers to check on the progress of frontline employees.
Capability transfer through a merger or an acquisition can be challenging because ______. [multiple choice question] senior executives tend to have little interest in the outcome of the capability transfer process capabilities are developed and sustained through routines that often cannot be transferred readily from one company to another companies tend to overestimate the amount of training required to incorporate a new capability into their existing systems the inherent compatibility between the support systems of the two companies can interfere with the transfer process
capabilities are developed and sustained through routines that often cannot be transferred readily from one company to another
Deloitte has been recognized on lists of the best companies to work for due to its ______. [multiple choice question] comprehensive health care and life insurance benefits package close attention to finding, keeping, and developing skilled employees high compensation and relatively minimal hourly workload expansive and high-tech campuses across the United States
close attention to finding, keeping, and developing skilled employees
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 ______. [multiple choice question] people in their late 40s and early 50s people from the southeastern part of the United States people who taught themselves how to write computer code people in their 20s and 30s
people in their 20s and 30s
When attempting to collaborate through a joint venture or strategic alliance, a company should ______. [multiple choice question] select a partner that it can control throughout the collaborative process select a partner based on the degree of compatibility between the two companies consider potential partners primarily on the basis of their company culture consider potential partners primarily on the basis of the partner's available resources
select a partner based on the degree of compatibility between the two companies
Which of the following groups are involved in executing a new business strategy? Multiple select question. competitors customers senior managers mid-level managers
senior managers mid-level managers
To limit the risk associated with outsourcing, many companies outsource ______. [multiple choice question] strategically less important activities only after consulting directly with activist groups strategically more important activities to companies based overseas rather than within national boundaries
strategically less important activities
What are some regularly used methods of capability building? (Choose every correct answer.) Merging with other companies Selling shares of a company Developing capabilities within a company Establishing partnerships with other companies
Merging with other companies Developing capabilities within a company Establishing partnerships with other companies
A multidivisional organizational structure is ______. as structure in which a central executive handles all major decisions and oversees organizational operations a structure that is organized along functional lines, where a function represents a major component of the firm's value chain a combination structure in which the organization is structured along two or more dimensions at once a decentralized structure consisting of a set of operating divisions with a central headquarters that monitors divisional activities
a decentralized structure consisting of a set of operating divisions with a central headquarters that monitors divisional activities.
A simple organizational structure is ______. [multiple choice question] a structure in which a central executive handles all major decisions and oversees organizational operations a combination structure in which the organization is structured along two or more dimensions at once a decentralized structure consisting of a set of operating divisions organized along market lines a structure that is organized along functional lines, where a function represents a major component of the firm's value chain
a structure in which a central executive handles all major decisions and oversees organizational operations
A functional organizational structure is ______. [multiple choice question] a structure in which a central executive handles all major decisions and oversees organizational operations a combination structure in which the organization is organized along two or more dimensions at once a decentralized structure consisting of a set of operating divisions organized along market lines a structure that is organized along functional lines, where a function represents a major component of the firm's value chain
a structure that is organized along functional lines, where a function represents a major component of the firm's value chain
A functional organizational structure is ______. a combination structure in which the organization is organized along two or more dimensions at once a decentralized structure consisting of a set of operating divisions organized along market lines a structure in which a central executive handles all major decisions and oversees organizational operations a structure that is organized along functional lines, where a function represents a major component of the firm's value chain
a structure that is organized along functional lines, where a function represents a major component of the firm's value chain.
A business network structure is ______. [multiple choice question] the relationship between several independent organizations involved in a shared objective. the linking of two businesses under one parent company. an agreement between competitive organizations to control price levels. the arrangement linking the internal divisions of a corporation.
the relationship between several independent organizations involved in a shared objective
What three key actions are required to build an organization capable of good strategy execution? Multiple select question. implementing sound structure within the organization developing strong management and finding the right employees for the organization installing information systems that support strategy execution activities finding and growing the needed resources and skills necessary for strong strategy execution
- implementing sound structure within the organization - developing strong management and finding the right employees for the organization -finding and growing the needed resources and skills necessary for strong strategy execution
True or False: When implementing a new strategic initiative, business managers rarely encounter resistance to change.
False Reason: In many cases, business managers must overcome significant resistance to change.
What are characteristics of simple structure in business organization? (Choose every correct answer.) Few rules Minimal use of training A high degree of task specialization Complex hierarchical relationships
Few rules Minimal use of training
What is a company's best source of creative ideas for ground-level improvements that lead to operating excellence? (multiple choice question) Senior executives Newly hired graduates from top-notch universities Knowledgeable and engaged employees Outside consultants with experience in the industry
Knowledgeable and engaged employees
What policies do many companies have in order to maintain a talented and energetic workforce? (choose every correct answer) Provide training opportunities for employees throughout their careers Assure employees that they will not be asked to relocate overseas Offer opportunities for employees to work internationally Ensure that work assignments keep employees firmly in their comfort zones
Provide training opportunities for employees throughout their careers. Offer opportunities for employees to work internationally.
Cross-business strategic fit can be defined as ______. [multiple choice question] - promoting overlap and competition among the various business units in a diversified corporation. - the efficient coordination of individual business units in a corporation. - top-down executive control over all business units in a corporation. - maintaining decentralized business operations in a diversified corporation.
the efficient coordination of individual business units in a corporation.
Which of the following scenarios best corresponds to characteristics of decentralized organizational system? [multiple choice question] A company experiences a sustained period of high morale because people feel empowered to direct their own work. Top-level executives continue to add layers of management, slowing the organization's response time to market changes. Low morale plagues the company because mid-level managers and frontline workers do not feel like they have any authority. Management teams produce few creative ideas because top-level managers restrict their access to relevant data.
A company experiences a sustained period of high morale because people feel empowered to direct their own work.
Which of the following is an example of outsourcing a value chain activity? [multiple choice question] A winery contracts farmers to produce grapes. A shoe company merges with an apparel manufacturer and keeps production in-house. A technology firm discounts technical support and network maintenance to its most valued clients. A coffee supplier adopts a vertical expansion strategy and begins operations in wholesale and retail components of the value chain.
A winery contracts farmers to produce grapes.
Why do fast-food enterprises often rely on effective partnerships with local franchises? (Choose every correct answer.) To maintain proper levels of cleanliness and staff courtesy toward customers To construct an effective national marketing strategy To ensure consistency across locations To ensure that food products meet corporate standards for quality
To maintain proper levels of cleanliness and staff courtesy toward customers. To ensure consistency across locations. To ensure that food products meet corporate standards for quality.
Which of the following statements about delegating authority in a company is most accurate? [multiple choice question] Top managers have a variety of options when considering how much authority to delegate to people at lower levels of the organization. Under any organizational structure, frontline employees must determine how much authority to retain and how much to delegate. The organizational structure a company puts severe constraints on how the company can choose to delegate authority. Companies rarely give substantial decision-making authority to plant managers and heads of operational units.
Top managers have a variety of options when considering how much authority to delegate to people at lower levels of the organization.
A company's organizational structure has ______. [multiple choice question] minimal impact on a company's competitive advantage significant impact on price fluctuation in overseas markets significant impact on management's capacity to coordinate activities minimal impact on strategy execution
significant impact on management's capacity to coordinate activities
In addition to helping companies develop strategy-critical competencies, outsourcing can also help a company do which of the following? (Choose every correct answer.) Adapt to changes in the market quickly. Add layers of complexity to the decision-making process. Eliminate bureaucracies that can stall business processes. Complicate its organizational structure.
Adapt to changes in the market quickly. Eliminate bureaucracies that can stall business processes.
Why might a company choose to outsource certain value chain activities? (Choose every correct answer.) A company will likely find it beneficial to turn core strategy activities over to another company. Another company may have the capability to perform those activities more efficiently. Outsourcing an activity may allow a company to concentrate its efforts on activities that are at the core of its strategy. Outsourcing may add costs to the final price of goods and services.
Another company may have the capability to perform those activities more efficiently. Outsourcing an activity may allow a company to concentrate its efforts on activities that are at the core of its strategy.
Which of the following is an example of a company that augmented an existing capability? [multiple choice question] General Motors reducing the manufacture of certain lines of cars in the aftermath of the financial crisis of 2008 Computer manufacturer Cray undertaking a process of vertical expansion into new sectors along the value chain Honda improving its engine technology and production system in order to overtake Toyota in the United States automobile market Canon repurposing technology in calculators to improve camera production
Canon repurposing technology in calculators to improve camera production
Which of the following statements about executing business strategy is the most accurate? (multiple choice question) Certain managerial tasks must always be carried out in order to execute strategy effectively. Capable internal leadership plays a small role in moving strategy forward. Managers can trust that a strategy-supportive organizational structure will emerge naturally during the strategy execution process. Allocating budgetary resources properly ensures that a strategy will be properly executed.
Certain managerial tasks must always be carried out in order to execute strategy effectively.
Which of the following are basic managerial tasks associated with executing business strategy? (Choose every correct answer.) Creating a culture within the organization that promotes effective strategy execution Inking incentives to achieving the financial goals of the strategy Installing systems that allow personnel to carry out their roles in the strategy execution process Establishing cooperative relationships with competitors
Creating a culture within the organization that promotes effective strategy execution. Linking incentives to achieving the financial goals of the strategy. Installing systems that allow personnel to carry out their roles in the strategy execution process.
Which of the following statements about the process of developing capabilities internally is correct? [multiple choice question] Developing capabilities internally is a collaborative process that often happens through the combined efforts of different departments. Developing capabilities internally is most likely to occur when departments develop know-how while working in isolation. Companies rarely develop new capabilities because they are looking for solutions to problems. The process of developing capabilities internally is simple and straightforward.
Developing capabilities internally is a collaborative process that often happens through the combined efforts of different departments.
Which of the following statements about multidivisional organizational structures are true? (Choose every correct answer.) Multidivisional structures are also called U-forms. Each division within a multidivisional structure is essentially a business. The individual divisions within a multidivisional organization often operate as independent profit centers. Divisional managers oversee overall performance and corporate strategy.
Each division within a multidivisional structure is essentially a business. The individual divisions within a multidivisional organization often operate as independent profit centers.
Which of the following statements accurately describe the process of executing a business strategy? Multiple select question. Executing a business strategy is an analysis-driven activity. Executing a business strategy is an action-driven activity. Executing a business strategy often requires a manager to prioritize short-term goals over long-term goals. Executing a business strategy requires managers who work effectively with colleagues.
Executing a business strategy is an action-driven activity. Executing a business strategy requires managers who work effectively with colleagues.
The people who are chosen for a strong management team should be which of the following? (Choose every correct answer.) Reluctant in making decisions Experienced in delivering results Clear thinkers From similar backgrounds
Experienced in delivering results Clear thinkers
Which of the following are risks for a company that transfers capabilities through mergers or acquisitions? (Choose every correct answer.) Acquired capabilities will be more productive under new management, threatening the long-term stability of the new company. Incompatibilities between the two formerly separate companies may disrupt the transfer process. The new company may experience a prolonged slump in stock price if the transfer process does not go smoothly. The transfer process will go more smoothly than expected, causing the new company to get new offerings to market early.
Incompatibilities between the two formerly separate companies may disrupt the transfer process. The new company may experience a prolonged slump in stock price if the transfer process does not go smoothly.
Which of the following are characteristics of a well-managed business network structure? [multiple select question] It often has one firm playing the central role of coordinating activity among partners. It can limit a company's ability to find new external partnerships. It encourages cooperation and collaboration among partners. It typically consists of several organizations competing for the central position.
It often has one firm playing the central role of coordinating activity among partners. It encourages cooperation and collaboration among partners.
Which of the following statements identify key advantages of central decision making? Multiple select question. It reduces the likelihood of conflicting decisions among mid-level managers. It can give top leaders the power to act effectively in a crisis. It increases the likelihood that the company's stock prices will rise consistently. It allows a company to adapt quickly to changing market conditions.
It reduces the likelihood of conflicting decisions among mid-level managers. It can give top leaders the power to act effectively in a crisis.
What is true concerning the structural organization of a firm? [multiple select question] It reflects prior organizational patterns and internal circumstances. It has minimal impact on how strategy is executed. It is unaffected by staff politics and reporting relationships. It is, in part, a product of executive judgments.
It reflects prior organizational patterns and internal circumstances. It is, in part, a product of executive judgments.
What does developing an organizational capability into a tried-and-true competence require? (Choose every correct answer.) Maintaining appropriate levels of resource investment Continually redeploying individuals and teams to new tasks and assignments Mastering the ability through repetition and sustained time on task A prolonged period of textbook and online study before individuals and teams are encouraged to learn by doing
Maintaining appropriate levels of resource investment. Mastering the ability through repetition and sustained time on task.
Which of the following statements about the benefits of assembling a highly capable management team is correct? [multiple choice question] Most people with managerial talent lack the ethics required to work collaboratively. Managers who work well together can produce better results than one or two managers working on their own. Having a managerial team rather than one person in charge usually confuses frontline workers. Talented managers are likely to step on each other's toes and interfere with each other's work.
Managers who work well together can produce better results than one or two managers working on their own.
Which of the following statements regarding the execution of a strategy are true? Multiple select question. Making minor changes to an existing strategy requires the same procedures as implementing radical strategy changes. Implementing a new strategy in a struggling company requires the same set of procedures as implementing a new strategy in a high-performing company. Many of the policies and procedures in a business strategy need to be customized to fit the particulars of a company's situation. Some managers have more success than other managers with certain approaches to implementing strategy.
Many of the policies and procedures in a business strategy need to be customized to fit the particulars of a company's situation. 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? (Choose every correct answer.) Matrix structures allow for tight supervision from one perspective. Matrix structures can help companies realize economies of scope. Matrix structures facilitate collaboration and allow for sharing key resources. Matrix structures tend to have reporting systems that create strong loyalties between managers and employees.
Matrix structures can help companies realize economies of scope. Matrix structures facilitate collaboration and allow for sharing key resources.
Which of the following statements is true about decentralized organizational structures? [multiple choice question] Decentralized systems require large management teams to create organizational efficiencies. Mid-level managers and frontline employees have few responsibilities in a decentralized system. Mid-level managers and frontline employees are inclined to show initiative and be more productive in decentralized systems. Decentralized systems require limited use of communication technologies because few people need access to data.
Mid-level managers and frontline employees are inclined to show initiative and be more productive in decentralized systems.
What are the four basic types of organizational structure? (Choose every correct answer.) Complex structure Multidivisional structure Functional structure Simple structure Matrix structure
Multidivisional structure Functional structure Simple structure Matrix structure
When crafting and executing strategy, what should good managers do? (Choose every correct answer.) Resist modifying resources and capabilities when market conditions evolve Put the resources and capabilities in place that will enable the strategy to succeed Upgrade resources and capabilities as necessary Rely on top frontline employees to put the appropriate resources in place
Put the resources and capabilities in place that will enable the strategy to succeed. Upgrade resources and capabilities as necessary.
What strategies do leading companies use to attempt to staff their companies with the right kinds of personnel? (Choose every correct answer.) Hold back new employees from assignments that promote growth. Recruit the most qualified people. Offer competitive compensation packages. Subject employees to tight surveillance.
Recruit the most qualified people. Offer competitive compensation packages.
Which of the following are common measures that companies have taken to demonstrate their commitment to ongoing training? (Choose every correct answer.) Reimbursing employees for tuition payments for additional college training in their field Discouraging employees from taking online, just-in-time courses Forcing underperforming veteran employees to sit in on orientation sessions for new workers Establishing internal universities
Reimbursing employees for tuition payments for additional college training in their field. Establishing internal universities.
What is involved in the first step to developing an organizational ability? (Choose every correct answer.) Building a framework for success by demanding optimal efficiency from the beginning of the process Setting an aggressive schedule with clear targets Shaping the work of individuals into a collaborative effort Identifying the right people to lead the process
Shaping the work of individuals into a collaborative effort. Identifying the right people to lead the process.
Which of the following statements about the relationship between value chain activities are true? (Choose every correct answer.) Companies should make the most simple value chain activities the foundation of their organizational structure. All value chain activities are equally critical to successful strategy implementation. Some value chain activities are more critical than others for effective strategy execution. Companies should make critical value chain activities the centerpieces of their organizational structure.
Some value chain activities are more critical than others for effective strategy execution. Companies should make critical value chain activities the centerpieces of their organizational structure.
Which of the following is a disadvantage of matrix organizational structures? [multiple choice question] The matrix structure is better suited to small companies and inhibits communication in large companies. The matrix structure is inflexible and does not allow employees to establish relationships with different managers in the organization. The matrix structure can increase internal costs by adding a layer of management to oversee business operations. The matrix structure does not allow for adequate supervision of employees.
The matrix structure can increase internal costs by adding a layer of management to oversee business operations.
Which of the following correctly describe the two extremes of organizational decision-making latitude? (Choose every correct answer.) To decentralize decision making, which typically restricts mid-level managers To centralize decision making, which gives top executives considerable control over daily operations To centralize decision making, which typically locates power at the bottom of the organization To decentralize decision making, which can give mid-level managers more authority to make decisions
To centralize decision making, which gives top executives considerable control over daily operations. To decentralize decision making, which can give mid-level managers more authority to make decisions.
Which of the following statements are true concerning a centralized organizational system? (Choose every correct answer.) Top-level managers may have difficulty interpreting technical information that is key to operations in lower levels of the company. Top-level managers have little difficulty maintaining a full understanding of all key issues and processes. Top-level managers have difficulty in obtaining all the information they need in an efficient manner. Top-level managers are likely to possess more technical expertise than mid-level managers.
Top-level managers may have difficulty interpreting technical information that is key to operations in lower levels of the company. Top-level managers have difficulty in obtaining all the information they need in an efficient manner.
