TEST 3 Study Guide
What does a good strategy execution require? A. 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 B. Incremental changes to current operating practices be implemented to ensure existing resource capabilities are not impacted too severely C. Little consensus building, despite the magnitude of the proposed changes, because employees know the benefits gained from the planning process D. The strategy-critical value chain activities to be simplified so that all company personnel can be cognizant of the benefits of the execution parameters E. Additional investments in capital projects rather than adding to a company's talent base and building intellectual capital
A. 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
Managerial actions to develop core competencies and competitive capabilities internally generally take one of two forms. What are they? A. Either strengthening the company's base of skills, knowledge, and experience or coordinating and integrating the efforts of various work groups and departments B. Either putting in high incentive bonuses to reward individual employees who train hard to develop the desired capability or launching an extensive training effort to develop the capability quickly with newly hired employees C. Either using benchmarking and the adoption of best practices to imitate a capability that rivals have already developed or empowering a team of employees to develop the capability however they best see fit D. Either using developed dynamic capabilities or acquiring the capability from outside sources E. Either by enforcing close cross-business collaboration or by centralizing the performance of functions requiring close coordination at the corporate level
A. Either strengthening the company's base of skills, knowledge, and experience or coordinating and integrating the efforts of various work groups and departments
Good strategy execution requires which of the following? A. Putting those resources and capabilities into place, strengthening them as needed, and then modifying them as market conditions evolve B. A universal business model to raise profits and lower costs C. Strengthening the competitive environment arena outside the company's operating territory D. A planned budget to protect the company's financial condition and eliminate wasteful use of cash E. Passive pressures stemming from the dominance of outside market buyers
A. Putting those resources and capabilities into place, strengthening them as needed, and then modifying them as market conditions evolve
Which of the following exemplifies good strategy execution? A. The policy document of Dominos ensures consistency in service behavior patterns across outlets. B. The policy document of Pizza Today allows for differences in product range and quality across outlets. C. The policy document of Boston Pizza leaves ample scope for each member of the staff to act independently. D. The policy document of Little Caesars discusses strategy but not the routines for running the outlets. E. The policy document of Pizza Inn is averse to standardization of the way activities are performed.
A. The policy document of Dominos ensures consistency in service behavior patterns across outlets.
The implementation process is likely to be hampered by missed deadlines, misdirected efforts, and managerial ineptness, if: A. a capable results-oriented management team is not in place. B. the personnel have different management styles. C. top managers start asking tough, incisive questions. D. important details require attention. E. an additional investment in capital projects is required.
A. a capable results-oriented management team is not in place.
Ultimate responsibility for seeing that a strategy is executed successfully primarily falls upon the shoulders of: A. a company's chief executive officer, its chief operating officer, and the heads of major units (business divisions, functional departments, and key operating units). B. first-line supervisors who have the day-to-day responsibility of seeing that key value chain activities are done properly. C. the company's board of directors because board members are the final authority in overseeing and conducting daily operations. D. a company's whole management team—each manager is responsible for attending to what needs to be done in his/her respective area of authority and thus should be held accountable for the strategy's success or failure. E. all company personnel because all employees are active participants in the strategy execution process and the caliber of their actions have a huge impact on the ultimate outcome.
A. a company's chief executive officer, its chief operating officer, and the heads of major units (business divisions, functional departments, and key operating units).
A "best practice" refers to: A. a method of performing an activity or business process that at least one company has demonstrated works particularly well in terms of delivering some highly positive operating outcome. B. the best-known procedure for performing a specific task or activity so as to achieve the lowest possible costs. C. performing activities in a manner that conforms to established industry standards. D. a company's core competence. E. performing a particular value chain activity in "world-class" fashion (one unmatched by any other company in the world).
A. a method of performing an activity or business process that at least one company has demonstrated works particularly well in terms of delivering some highly positive operating outcome.
The most important leadership trait in the strategy execution process is: A. a strong, confident sense of what to do and how to do it. B. strong communication skills (both written and verbal) covering motivating intent. C. strong management skills to ensure a systematic approach to administration. D. strong organizational skills so as to make actions structured toward results. E. strong empathy skills when employees run into challenging moments.
A. a strong, confident sense of what to do and how to do it.
The managerial approach to implementing and executing a strategy should always: A. be customized to fit the particulars of a company's situation. B. involve only minor changes to the existing strategy. C. require radical strategy changes for successful execution. D. rely on the active support of frontline employees. E. focus on market conditions and the company's resources and capabilities.
A. be customized to fit the particulars of a company's situation.
A company's value statement and code of ethics: A. help to mold the culture and communicate what kinds of actions and behaviors are expected of all company personnel. B. help prevent it from coming across to customers and the general public as greedy. C. serve the valuable purpose of making its suppliers hesitant to engage in business practices that are unethical. D. are the most important factors determining its reputation with customers, suppliers, employees, shareholders, and society at large. E. should always be made a prominent and visible part of the company's strategic intent and strategy.
A. help to mold the culture and communicate what kinds of actions and behaviors are expected of all company personnel.
Reengineering how a firm performs a business process: A. is a tool for pulling the pieces of strategy-critical processes out of different departments and unifying their performance in a single department or cross-functional work group that is in charge of the whole process. B. is the most frequently used tool of total quality management (TQM). C. requires that a company have many strategic partnerships and alliances with outsiders. D. is typically cheaper and easier than using Six Sigma techniques to achieve the same cost savings. E. is usually a company's most important "best practice" for achieving operating excellence.
A. is a tool for pulling the pieces of strategy-critical processes out of different departments and unifying their performance in a single department or cross-functional work group that is in charge of the whole process.
Changing a problem culture: A. is one of the toughest managerial tasks because of the heavy anchor of ingrained behaviors and ways of doing things. B. is best done by instituting an aggressive program to train employees in the ways and beliefs of the new culture to be implanted. C. is best done by selecting a team of key employees to lead the culture change effort. D. requires writing a new statement of core values, having a series of lengthy meetings with employees to explain the new culture and the reasons why cultural change is needed, and then having both employees and shareholders vote to ratify and adopt the new culture. E. can be done quickly only if managers tie incentive compensation to exhibiting the desired new cultural behaviors and if managers visibly praise people who exhibit the desired new cultural traits.
A. is one of the toughest managerial tasks because of the heavy anchor of ingrained behaviors and ways of doing things.
Outsourcing value chain activities has such strategy executing advantages as: A. less internal bureaucracy, speedier decision making, and quicker responses to changing market conditions. B. facilitating the empowerment of employees (because there are fewer things to do internally). C. promoting a total quality management culture. D. reducing the need to establish a strongly implanted corporate culture. E. reducing the strategic importance of building valuable core competencies.
A. less internal bureaucracy, speedier decision making, and quicker responses to changing market conditions.
Once established, company cultures can be perpetuated by: A. relying on word-of-mouth indoctrination and the power of tradition to instill the culture's fundamentals, as well as frequent reiteration of core values by senior managers and group members, and regular ceremonies honoring members who display desired cultural behaviors. B. avoiding frequent or dramatic reorganizations that could disturb existing relationships and networking among departments and company personnel. C. making adherence to cultural beliefs and cultural norms the defining features of the company's strategic vision. D. rewarding departments that observe cultural norms with above-average budget increases and penalizing those who don't with budget cuts. E. making cultural values and beliefs the centerpiece of the company's competitive strategy.
A. relying on word-of-mouth indoctrination and the power of tradition to instill the culture's fundamentals, as well as frequent reiteration of core values by senior managers and group members, and regular ceremonies honoring members who display desired cultural behaviors.
The managing director of a paper products company, wanted to introduce nonmonetary incentives to enhance employee motivation and spur strategy execution. When presented with some ideas, he chose all of the following EXCEPT: A. rewarding employees even for subpar performance. B. giving awards and public recognition to high performers and showcasing company successes. C. providing a comfortable and attractive working environment. D. providing opportunities for promotion from within wherever possible. E. providing attractive perks and fringe benefits.
A. rewarding employees even for subpar performance.
All of the following are examples of leadership actions or managerial practices taken to foster a results-oriented, high-performance culture EXCEPT: A. treating employees as individuals with no regard for their rank or contributions. B. building morale and fostering pride. C. setting stretch objectives and clearly communicating expectations for reaching targets. D. using motivational techniques and compensation incentives to inspire employees. E. using the tools of benchmarking, best practices, business process reengineering, TQM, and Six Sigma to focus attention on continuous improvement.
A. treating employees as individuals with no regard for their rank or contributions.
In a strong-culture company: A. values and behavioral norms are like crabgrass—deeply rooted and hard to weed out. B. there is wide support for high ethical standards among both managers and employees. C. a company has more strategy flexibility because it can change its strategy and be confident that the culture will welcome the strategy changes and be an ally in implementing whatever changes are called for. D. there is little room for employee empowerment, because independent-thinking empowered employees may well make decisions or engage in actions that weaken the culture. E. management insists that official policies and procedures be followed religiously.
A. values and behavioral norms are like crabgrass—deeply rooted and hard to weed out.
The statistical thinking underlying Six Sigma is based on which of the following three principles? A. All activities can be controlled, employee empowerment is the best control tool, and 100 percent control is possible. B. All work is a process, all processes have variability, and all processes create data that explains variability. C. All work activities can be done accurately most of the time, empowered employees are necessary for effective control, and good statistical data is an empowered employee's best control tool. D. All work is a statistically controllable process, 100percent control is possible, and every well-controlled process is defect-free. E. Most business processes are subject to control, Six Sigma can totally remove variability in how processes are performed, and most defects can be eliminated.
B. All work is a process, all processes have variability, and all processes create data that explains variability.
Which of the following statements about adaptive corporate cultures is NOT true? A. The hallmark of adaptive corporate cultures is willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies. B. The standout cultural traits are a "can-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. C. Company personnel share a feeling of confidence that the organization can deal with whatever threats and opportunities come down the pike; they are receptive to risk taking, experimentation, innovation, and changing strategies and practices. D. Adaptive cultures are exceptionally well-suited to companies with fast-changing strategies and market environments. E. For an adaptive culture to remain intact over time, top management must orchestrate organizational changes in a manner that (1) demonstrates genuine care for the well-being of all key constituencies and (2) tries to satisfy all their legitimate interests simultaneously.
B. The standout cultural traits are a "can-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.
The hallmarks of a high-performance corporate culture include: A. a deep commitment to employee training, unusually attractive fringe benefit packages for company personnel, and frequently revised and updated values and ethics statements. B. a "can-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. C. a strong emphasis on teamwork, strict enforcement of company policies and procedures, and incentive compensation for all employees aligned with a balanced scorecard approach to measuring performance. D. a deep commitment to pioneering new best practices, a preference for being a fast-follower as opposed to a first-mover or late-mover, and across-the-board bonuses for all personnel when the company meets or beats stretch objectives. E. a deep commitment to top-notch quality and superior customer service, dedicated use of TQM and/or Six Sigma quality control programs, and the payment of big performance bonuses and stock options.
B. a "can-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.
A "best practice" refers to: A. a policy or procedure that is unusually effective. B. a method of performing an activity or business process that consistently delivers superior results compared to other approaches and that at least one company has demonstrated works particularly well in terms of delivering operating excellence. C. a strategy-critical activity that results in sustainable competitive advantage. D. a value chain activity that is a company's distinctive competence. E. a particular value chain activity that management has given top priority to performing in world-class fashion.
B. a method of performing an activity or business process that consistently delivers superior results compared to other approaches and that at least one company has demonstrated works particularly well in terms of delivering operating excellence.
The single most visible factor that distinguishes successful culture-change efforts from failed attempts is: A. forceful management actions to empower employees to adopt new operating practices. B. competent leadership at the top. C. de-layering the management hierarchy. D. developing a new value statement that inspires company personnel to put forth their best efforts to achieve performance targets. E. convincing employees that top management is genuinely committed to high ethical standards and the exercise of corporate social responsibility.
B. competent leadership at the top.
When a company uses outsourcing to zero in on even better performance of those truly strategy-critical activities where its expertise is most needed, then it may also be able to: A. create a values-based corporate culture that excels in product innovation. B. decrease internal bureaucracies, flatten its organizational structure, and shorten the time it takes to respond to changing market conditions. C. devote more resources to its social responsibility strategy, better empower employees, and reduce employee turnover. D. better police compliance with ethical standards, lower overall operating costs, and create two or more distinctive competencies. E. reduce the potential for information overload and improve the quality of decision making in each domain.
B. decrease internal bureaucracies, flatten its organizational structure, and shorten the time it takes to respond to changing market conditions.
Motivational and incentive compensation practices that aim at winning the commitment of company personnel to good strategy execution typically: A. use only positive rewards and never involve the use of tension, fear, job insecurity, stress, or anxiety. B. entail decidedly positive rewards for meeting or beating performance targets, but also impose sufficiently negative consequences when actual performance falls short of the target. C. aim at creating a no-pressure/no-adverse-consequences work environment. D. entail paying the highest wages and salaries in the industry for all jobholder positions and also stressing nonmonetary rewards, like cash bonuses for high-performing employees. E. put top priority on making employees happy and secure in their jobs.
B. entail decidedly positive rewards for meeting or beating performance targets, but also impose sufficiently negative consequences when actual performance falls short of the target.
When trying to change a problem culture, management should undertake such steps as: A. selecting a team of key employees to lead the culture change effort and design a plan for cultural change. B. identifying facets of the present culture that are supportive of 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. C. drawing up an action plan to change the present culture and then persuading company personnel why this plan of action is good and will be successful. D. conducting an employee survey to determine the organization's cultural norms and what company personnel like and dislike about the current culture. E. employing a consultant with expertise in culture change and following his or her advice on how to proceed.
B. identifying facets of the present culture that are supportive of 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.
Management's handling of the strategy implementation/execution process can be considered successful: A. when the internal organization develops two or more core competencies in performing value chain activities. B. if and when the company meets or beats its performance targets and shows good progress in achieving its strategic vision for the company. C. if the company's culture is strong and strategy-supportive. D. if management is able to marshal adequate resources to put the strategy in place within 6 to 12 months. E. if managers and employees express strong support for the company's strategy and long-term direction.
B. if and when the company meets or beats its performance targets and shows good progress in achieving its strategic vision for the company.
The principal managerial components of the strategy execution process include: A. deciding how much to spend on employee training. B. instituting policies and procedures that facilitate strategy execution and tying rewards and incentives to the achievement of strategic and financial targets. C. doing an effective job of empowering employees. D. revamping the value chain in a manner calculated to maximize operating efficiency. E. selecting a capable top management team.
B. instituting policies and procedures that facilitate strategy execution and tying rewards and incentives to the achievement of strategic and financial targets.
Implementing and executing a company's strategy: A. is primarily the job of the company's board of directors since they direct the actions and policies of the top senior executives in executing the strategy. B. is a task for every manager and the whole management team, but ultimate responsibility for success or failure falls upon the top senior executives, especially the chief executive officer of the company. C. is primarily a responsibility of all company personnel because all personnel are active participants in the strategy execution process and their actions have a huge impact on the ultimate outcome. D. should be delegated to a chief strategy implementer appointed by the chief executive officer. E. is primarily a task for middle and lower-level managers because it is they who have responsibility for pushing the needed changes all the way down to the lowest levels of the organization.
B. is a task for every manager and the whole management team, but ultimate responsibility for success or failure falls upon the top senior executives, especially the chief executive officer of the company.
Companies with change-resistant cultures are: A. typically opposed to performance-based incentive compensation and employee empowerment. B. prone to be preoccupied with avoiding risks and are unlikely to pursue actions to capture emerging opportunities. C. often overly gung ho about looking outside the company for best practices, new managerial approaches, and innovative ideas. D. often preoccupied with making sure the company has an aggressive strategic vision that embraces risky business strategies. E. typically run by amoral managers who have little regard for high ethical standards.
B. prone to be preoccupied with avoiding risks and are unlikely to pursue actions to capture emerging opportunities.
What makes the managerial task of executing strategy so challenging and demanding is: A. the trial-and-error experimentation that is required to come up with a workable organizational structure. B. the people-management skills required, the resistance to change that has to be overcome, and the perseverance necessary to get a variety of initiatives launched and kept moving along. C. the time and effort it takes to build core competencies. D. the time, training, and creative effort it takes to empower employees and teach them responsible decision making. E. the supervisory requirements associated with getting company personnel to do things the right way.
B. the people-management skills required, the resistance to change that has to be overcome, and the perseverance necessary to get a variety of initiatives launched and kept moving along.
Which of the following contribute to the emergence and sustainability of a strong culture? A. Senior executives that walk the talk of high ethical standards B. A strong emphasis on developing innovative core competencies and competitive capabilities C. A sincere, long-standing company commitment to operating the business according to established traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms D. Centralized decision making and strict enforcement of company policies E. A long-standing commitment to strict enforcement of established policies and procedures and steadfast unwillingness to change these policies and procedures
C. A sincere, long-standing company commitment to operating the business according to established traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms
Which one of the following is NOT an appropriate step management can take to change a problem culture? A. Identifying which aspects of the present culture are supportive of good strategy execution and which ones are not B. Specifying what new actions, behaviors, and work practices should be prominent in the "new" culture C. Appointing a team of key managers and employees to design a plan for cultural change and then lead the internal effort to change the culture D. Talking openly about the problems of the present culture and how new behaviors will improve performance E. Employing visible, forceful actions—both substantive and symbolic—to ingrain a new set of behaviors, practices and cultural norms
C. Appointing a team of key managers and employees to design a plan for cultural change and then lead the internal effort to change the culture
In companies where intellectual capital is crucial to good strategy execution, which of the following is generally NOT among the practices companies use to establish a talented knowledge base? A. Providing promising employees with challenging, interesting, and skill-stretching assignments and also rotating them through jobs that not only have great content but also span functional and geographic boundaries B. Providing employees promotions, salary increases, performance bonuses, stock options, and other perks C. Coaching underperformers and benchwarmers to improve their skills and capabilities D. Encouraging employees to challenge existing ways of doing things, to be creative and innovative in proposing better ways of operating, and to push their ideas for new products or businesses E. Fostering a stimulating and engaging work environment such that employees will consider the company a great place to work
C. Coaching underperformers and benchwarmers to improve their skills and capabilities
Which of the following statements about implementing and executing a new strategy is true? A. Executing strategy calls for essentially the same kinds of creative management talent and innovative thinking as does crafting strategy. B. Executing strategy is chiefly a financially driven process aimed at squeezing the most profit out of conducting daily operations. C. Executing strategy is a job for a company's whole management team, not just a few senior managers. D. Executing strategy depends heavily on the caliber of a CEO's business vision, industry and competitive analysis skills, and entrepreneurial creativity. E. Executing strategy tends to be a simpler, quicker management task to perform as compared to crafting a winning strategy.
C. Executing strategy is a job for a company's whole management team, not just a few senior managers.
Which of the following statements about a weak company culture is true? A. In a weak-culture company, there is virtually no employee support for the company's strategic vision and strategy. B. Weak-culture companies do not usually have a code of ethics and have little regard for high ethical standards. C. Weak cultures provide little assistance in executing strategy because there are no traditions, values, or behavioral norms that management can use as levers to mobilize commitment to executing the chosen strategy. D. Weak-culture companies are fairly receptive to change and to people who champion new ways of doing things. E. In a weak-culture company, there is usually a dearth of intellectual capital and inattention to building core competencies.
C. Weak cultures provide little assistance in executing strategy because there are no traditions, values, or behavioral norms that management can use as levers to mobilize commitment to executing the chosen strategy.
Sometimes a company can short-circuit the task of building an organizational capability in-house by: A. putting in high-incentive bonuses to reward individual employees who train hard to develop the desired capability. B. launching an extensive training effort to develop the capability quickly with newly hired employees. C. either acquiring a company that has already developed the capability or else acquiring the desired capability through collaborative efforts with outsiders having the requisite skills, know-how, and expertise. D. using benchmarking and the adoption of best practices to imitate a capability that rivals have already developed. E. empowering a team of employees to develop the capability however they best see fit.
C. either acquiring a company that has already developed the capability or else acquiring the desired capability through collaborative efforts with outsiders having the requisite skills, know-how, and expertise.
The strategic role of a company's reward system is to: A. compensate employees for performing their assigned duties in a diligent fashion. B. boost employee morale in ways that create widespread job satisfaction. C. enlist employees' commitment to successful strategy execution by rewarding them, both monetarily and non-monetarily, for their valuable contributions. D. relieve managers of the burden of closely monitoring each employee's performance. E. boost labor productivity and help lower the firm's overall labor costs.
C. enlist employees' commitment to successful strategy execution by rewarding them, both monetarily and non-monetarily, for their valuable contributions.
The big difference between business process reengineering and continuous improvement programs like TQM or Six Sigma is that: A. reengineering is a tool for installing process organization, whereas TQM/Six Sigma concern defect-free production methods and delivering world-class customer service. B. reengineering helps create core competencies, whereas TQM/Six Sigma are tools for making a core competence stronger and more efficient. C. reengineering is a tool for achieving one-time quantum improvement, whereas TQM and Six Sigma programs aim at ongoing incremental improvements. D. business process reengineering requires benchmarking, whereas TQM and Six Sigma do not. E. reengineering represents an effort to totally revamp a firm's value chain, whereas TQM looks at incrementally improving the performance of two or three targeted value chain activities and Six Sigma is primarily for reducing manufacturing defects.
C. reengineering is a tool for achieving one-time quantum improvement, whereas TQM and Six Sigma programs aim at ongoing incremental improvements.
Enlisting employees' sustained and energetic commitment to good strategy execution and achievement of the strategic priorities and financial objectives is best done by: A. having top executives commit to making employees the company's most valuable competitive asset. B. developing core competencies in the use of TQM, Six Sigma programs, and business process reengineering. C. resourceful and effective use of motivational incentives, both monetary and nonmonetary. D. clever and innovative use of benchmarking and best practices. E. providing employees with a high degree of job security and attractive perks.
C. resourceful and effective use of motivational incentives, both monetary and nonmonetary.
The two best signs of good strategy execution are whether: A. the company is challenging its current performance targets and whether value chain activities are fully integrated within the strategic response criteria. B. managers are personally leading the change process and whether they are meeting deadlines set for budgetary requirements. C. the company is meeting or beating its performance targets and whether it is performing value chain activities in a manner that is conducive to companywide operating excellence. D. managers are fully behind the changes and whether the company's value chain managers are executing them diligently. E. the company identifies what the organization must do and how to make the necessary internal changes.
C. the company is 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 task of top executives in making corrective adjustments includes: A. knowing when to continue with the present corporate culture and when to shift to a different and better corporate culture. B. being good at figuring out whether to arrive at decisions quickly or slowly in choosing among the various alternative adjustments. C. thoroughly analyzing the situation and exercising good business judgment in deciding what actions to take. D. deciding whether to try to fix the problems of poor strategy execution or simply shift to a strategy that is easier to execute correctly. E. deciding how to identify the problems that need fixing.
C. thoroughly analyzing the situation and exercising good business judgment in deciding what actions to take.
The leadership challenges that top executives face in making corrective adjustments when things are not going well include: A. knowing when to replace poorly performing workers and when to do a better job of coaching them to do the right things. B. being able to discern whether to emphasize adjustments that will promote better achievement of strategic performance targets or whether to emphasize adjustments that will promote better achievement of financial performance targets. C. undertaking a thorough analysis of the situation, exercising good business judgment in deciding what actions to take, and then ensuring good implementation of the corrective actions that are initiated. D. having the analytical skills to separate the problems due to a bad strategy from the problems due to bad strategy execution. E. deciding whether the company would be better off making adjustments that curtail the achievement of strategic objectives or that curtail the achievement of financial objectives or that curtail the achievement of some of both.
C. undertaking a thorough analysis of the situation, exercising good business judgment in deciding what actions to take, and then ensuring good implementation of the corrective actions that are initiated.
Which of the following is a typical characteristic of a weak company culture? A. Enthusiastic support for the company's strategic vision and strategy B. No code of ethics and deep hostility to change and to people who champion new ways of doing things C. A complicated value chain that acts to create multiple subcultures D. A lack of values and principles that are consistently preached or widely shared E. A dedicated sense of teamwork
D. A lack of values and principles that are consistently preached or widely shared
Which of the following is NOT a factor in contributing to the emergence and sustainability of a strong culture? A. Continuity of leadership, small group size, stable group membership, geographic concentration, and considerable organizational success B. A founder or strong leader who establishes values, principles, and practices that are consistent and sensible in light of customer needs, competitive conditions, and strategic requirements C. A sincere, long-standing company commitment to operating the business according to established traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms D. Centralized decision making, strict enforcement of company policies, and a strong commitment to being the market share leader E. A genuine concern for the well-being of the organization's three biggest constituencies—customers, employees, and shareholders
D. Centralized decision making, strict enforcement of company policies, and a strong commitment to being the market share leader
Which of the following topics would least likely be contained in a company's code of ethics? A. Prohibiting giving or accepting bribes, kickbacks, or gifts B. Expecting all company personnel to display honesty and integrity in their actions and avoid conflicts of interest C. Barring dealing with suppliers that employ child labor or engage in other unsavory practices D. Committing to a no-layoff policy and to adequate funding of employee retirement programs E. Avoiding use of company assets, resources, and property for personal or other inappropriate purposes
D. Committing to a no-layoff policy and to adequate funding of employee retirement programs
Which of the following exemplifies one of the most widely used methods of gauging how well a company is executing its strategy? A. Merrill & Company has a disconnected organizational arrangement whereby pieces of an activity are performed in different functional departments. B. Oceania identifies agents of change who are convinced about sticking to the old ways of doing things. C. Honwell narrates success stories of rival brands to convince its personnel about traditional wisdom. D. Fizz-Cola judges the efficiency of internal operations by benchmarking them against best-in-industry performers. E. Motorola develops the data to measure how poorly rival brands perform against the best-practice standards across industry.
D. Fizz-Cola judges the efficiency of internal operations by benchmarking them against best-in-industry performers.
Which of the following is one of the first steps to take in launching the strategy execution process? A. Ensure all requirements of the value chain are fulfilled. B. Form a mission statement as a basis for managers to achieve organizational objectives. C. Go on the offensive by employing moves to make its product offering more distinctive and appealing to buyers. D. Put together a talented management team with the right mix of experiences, skills, and abilities to get things done. E. Strive to be more profitable than rivals and aim for a competitive edge based on bigger profit margins.
D. Put together a talented management team with the right mix of experiences, skills, and abilities to get things done.
Which of the following is NOT a substantive culture-changing action that a company's managers can undertake to alter a problem culture? A. Promoting individuals who are known to possess the desired cultural traits, who have stepped forward to advocate the shift to a different culture, and who can serve as role models for the desired cultural behavior B. Appointing outsiders with the desired cultural attributes to high-profile positions C. Screening all candidates for new positions carefully, and hiring only those who appear to fit in with the new culture D. Urging company personnel to search outside the company for work practices and operating approaches that may be an improvement over what the company is presently doing, and paying sizable bonuses to those employees who identify practices that the company ends up adopting E. Designing compensation incentives that boost the pay of teams and individuals who display the desired cultural behaviors and hitting change-resisters in the pocketbook
D. Urging company personnel to search outside the company for work practices and operating approaches that may be an improvement over what the company is presently doing, and paying sizable bonuses to those employees who identify practices that the company ends up adopting
When should a culture be changed as rapidly as it can be managed? A. Never, because the actions and behaviors needed to execute the new strategy successfully are well entrenched, and thus are not changeable B. Only rarely, because it is natural for company personnel to cling to existing practices and to be wary of new approaches C. When a company decides on any innovations to its products or services D. When a strong culture is unhealthy or otherwise out of sync with the actions and behaviors needed to execute the strategy successfully E. When the case for cultural reform is not credible, symbolic, nor substantive
D. When a strong culture is unhealthy or otherwise out of sync with the actions and behaviors needed to execute the strategy successfully
Putting together a capable top management team with the right mix of experiences, skills, and abilities: A. should take top priority in building competitively valuable core competencies. B. is particularly important when the firm is pursuing unrelated diversification or making a number of new acquisitions in related businesses. C. is important in building an organization capable of proficient strategy execution, but is nearly always less crucial than doing a superior job of training and retraining employees. D. 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. E. is particularly essential for executing a strategy to keep a company's costs lower than rivals and become the industry's low-cost leader.
D. 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.
The idea behind benchmarking and best practices is to: A. identify which companies are the best performers of a strategically relevant activity and then copy their methods exactly. B. search the world for a company that performs a strategically relevant task or value chain activity at the lowest possible cost and then use business process reengineering techniques to try to meet or beat the costs of the world's low-cost performer of that activity. C. perform each activity in the industry value chain according to standard industry practice and then regularly benchmark the company's performance to see if it is actually achieving the industry standard. D. identify companies that are the best performers of an activity and then "adapt" their practices to fit the company's own specific circumstances and operating requirements. E. determine whether a company has a "world-class" value chain.
D. identify companies that are the best performers of an activity and then "adapt" their practices to fit the company's own specific circumstances and operating requirements.
A corporate culture founded on ethical business principles and socially approved values: A. virtually guarantees that a company will be (or soon become) the acknowledged industry leader because of the ethical and socially approved manner in which its business is being conducted. B. doesn't necessarily impact a company's long-term strategic success favorably or unfavorably. C. does more to detract from a company's chances for strategic success and market leadership than to help it. D. is a positive force underlying a company's long-term financial success and reduces the likelihood of lapses in ethical and socially approved behavior that can damage the company's reputation. E. is seldom more than window-dressing and is generally regarded by customers, suppliers, employees, shareholders, and society at large as nothing more than good public relations.
D. is a positive force underlying a company's long-term financial success and reduces the likelihood of lapses in ethical and socially approved behavior that can damage the company's reputation.
The retelling of legendary stories does a lot for establishing a company's core values, but it should NOT: A. place pressure on company personnel to display core values and to do their part in keeping the companies traditions alive. B. illustrate the kind of behavior the company reveres. C. inspire company personnel to perform similarly and reinforce the depth of commitment that people have displayed. D. reflect an aspect of company culture no longer current. E. steer company personnel toward both doing things right and doing the right thing.
D. reflect an aspect of company culture no longer current.
The approach to identifying the items needed to be placed on management's action agenda of the strategy execution plan always involves: A. generalized activities that will underscore the particulars of the company's situation. B. some definitive managerial recipe for successful strategy execution that works for all company situations and all types of strategies, or that works for all types of managers. C. a set of unimportant managerial tasks that must be covered no matter what the circumstances. D. senior management's judgment about how to proceed in light of prevailing circumstances. E. a high-end differentiation strategy for proficient implementation and execution.
D. senior management's judgment about how to proceed in light of prevailing circumstances.
The three components of building a capable organization are: A. making periodic changes in the firm's internal organization to keep people from getting into a comfortable rut, instituting a decentralized approach to decision making, and developing the appropriate competencies and capabilities. B. hiring a capable top management team, empowering employees, and establishing a strategy-supportive corporate culture. C. putting a centralized decision-making structure in place, determining who should have responsibility for each value chain activity, and aligning the corporate culture with key policies, procedures, and operating practices. D. staffing the organization, acquiring, developing, and strengthening key resources and competitive capabilities, and structuring the organization and work effort. E. optimizing the number of core competencies and competitive capabilities, making sure that all managers and employees are empowered, and maximizing internal operating efficiency.
D. staffing the organization, acquiring, developing, and strengthening key resources and competitive capabilities, and structuring the organization and work effort.
When a company's culture is out of sync with what is needed for strategic success and good strategy execution: A. the strategy has to be changed to fit the culture as rapidly as possible. B. the company's strategic vision, strategic intent, and strategy have to be adjusted to better reflect ingrained core values and cultural norms. C. management needs to go on the offensive to reinterpret the culture and explain to company personnel why there really is good overall cultural fit with the strategy. D. the culture has to be changed to accommodate the requirements of good strategy execution as rapidly as can be managed. E. management must urge the company to participate in an all-out effort to create a different portfolio of competencies and capabilities that will permit the strategy to be changed in ways that will fit the culture.
D. the culture has to be changed to accommodate the requirements of good strategy execution as rapidly as can be managed.
Which of the following is NOT a method that company managers can use to promote operating excellence in performing value chain activities? A. Utilize benchmarking. B. Adapt best practices. C. Install TQM and/or Six Sigma quality control techniques. D. Undertake business process reengineering. E. Adopt standard industry techniques.
E. Adopt standard industry techniques.
Which of the following is part of strategy-supportive resources and capabilities? A. Recruiting and retaining talented employees B. Instituting organizational arrangements C. Establishing lines of authority D. Creating reporting relationships E. Deciding how much authority to delegate
E. Deciding how much authority to delegate
Which of the following does NOT facilitate strategy execution? A. Hyundai service centers follow same routines when receiving vehicles for servicing. B. Ford encourages staff to skip practices out of sync with the company's mission. C. General Motors showrooms have similar operating practices across regions. D. Chevrolet Service center replicates the caliber of customer service across locations. E. Renault is averse to standardization of the way activities are performed at its service centers.
E. Renault is averse to standardization of the way activities are performed at its service centers.
In formulating an action agenda to implement and execute a new or different strategy, the place for managers to begin is with: A. the task of revising and enhancing the company's core competencies. B. choosing which leadership style to employ in trying to carry out the strategy successfully. C. evaluating whether existing policies and procedures are adequately strategy-supportive. D. allocating more resources to strategy-critical parts of the business. E. a probing assessment of what the organization must do differently and better to carry out the strategy successfully.
E. a probing assessment of what the organization must do differently and better to carry out the strategy successfully.
Executing strategy is a make-things-happen task that tests a manager's ability to perform all of the following EXCEPT: A. manage the people, talents, and business processes of an operations-driven activities company. B. direct organizational change and achieve continuous improvement in operations and business processes. C. create and nurture a strategy-supportive culture. D. meet or beat performance targets consistently. E. focus on market conditions and the company's resources and capabilities.
E. focus on market conditions and the company's resources and capabilities.
A reward system that accentuates positive rewards for good performance: A. works best in strong culture organizations, while negative motivational approaches and reward systems tend to be most successful in weak culture organizations. B. is especially effective in aligning the well-being of organizational members with achieving the company's performance targets; reward systems with negative elements tend to be very dysfunctional in motivating employees. C. seldom works very well because the threat of denying rewards to sub-par performers is typically the most powerful motivator. D. works fine so long as 100 percent emphasis is placed on monetary incentives. E. has considerable appeal because 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.
E. has considerable appeal because 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.
The traits of the capability building process involve all of the following EXCEPT: A. evolving changes in customer needs and competitive conditions that often require tweaking and adjusting a company's portfolio of competencies and intellectual capital to keep its capabilities freshly honed and on the cutting edge. B. a core competence or capability that emerges incrementally out of company efforts either to bolster skills that contributed to earlier successes or to respond to customer problems, new technological and market opportunities, and the competitive maneuverings of rivals. C. core competencies or capabilities that are most often bundles of skills and know-how that grow out of the combined efforts of cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain. D. the key to leveraging a core competence into a distinctive competence (or transforming a capability into a competitively superior capability), which concerns concentrating more effort and talent than rivals on deepening and strengthening a competence or capability so as to achieve the dominance needed for competitive advantage. E. saving time by creating capabilities from scratch to remain aligned with external conditions and company strategy rather than updating and remodeling existing capabilities.
E. saving time by creating capabilities from scratch to remain aligned with external conditions and company strategy rather than updating and remodeling existing capabilities.