Business Strategy chapter 10 Connect Questions

The type of organizational structure that best suits a firm depends on which of the following? Multiple choice question. - firm's strategy - personal preferences of top executives - shareholders' opinions - firm's size and complexity

firm's size and complexity

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.

Characteristics of the simple structure include Multiple select question. - complex hierarchical relationships. - a high degree of task specialization. - minimal use of training. - few rules.

- minimal use of training. - few rules.

What are the four basic types of organizational structure? Multiple select question. - multidivisional structure - functional structure - simple structure - matrix structure - complex structure

- multidivisional structure - functional structure - simple structure - matrix structure

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

False

True or False: Partnerships can give a company a competitive advantage in local markets.

True

The bigger the corporation, the more strategy execution depends on Multiple choice question. - upper-level managers who communicate directly with frontline managers and employees. - 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 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.

Which of the following is an action that is likely to be taken by a strong manager? Multiple choice question. - 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 - waiting a week to respond to an email concerning a workflow issue

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

A substandard management team is likely to Multiple choice question. - build a culture that motivates people to deliver results. - waste the effort of the people working under them. - allocate resources efficiently. - meet all internal deadlines.

waste the effort of the people working under them.

Which of the following statements accurately identifies a disadvantage of centralized decision making? Multiple choice question. - 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. - 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.

Which of the following scenarios best reflects an advantage of a centralized organizational structure? Multiple choice question. - A top-level executive is able to identify the accountable parties when a company fails to meet a production quota. - A top-level executive is unable to initiate and sustain a uniform response to a crisis. - Disagreements among mid-level managers lead to inefficiencies in coordinating value chain activities. - 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.

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. - Talented managers are likely to step on each other's toes and interfere with each other's work. - Having a managerial team rather than one person in charge usually confuses frontline workers. - Managers who work well together can produce better results than one or two managers working on their own.

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

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. - 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 improvements. - 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 improvements.

A simple organizational structure is Multiple choice question. - 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 structure in which a central executive handles all major decisions and oversees organizational operations.

A company that enters into an outsourcing relationship runs the risk of Multiple choice question. - experiencing a hostile takeover from the company handling the outsourced work. - becoming overly reliant on outside suppliers. - assuming complete control of its own destiny. - overdeveloping its expertise in strategy-critical areas of the value chain.

becoming overly reliant on outside suppliers.

Which of the following statements is true about decentralized organizational structures? Multiple choice question. - Decentralized systems require large management teams to create organizational efficiencies. - 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. - 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.

If strategy-critical activities are the centerpiece of a company's organizational structure, it is likely that Multiple choice question. - strategy-critical activities will have minimal organizational impact. - 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.

the company will dedicate the necessary resources to those activities.

Which of the following statements best describes the process of crafting a business strategy? Multiple choice question. - 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 a business strategy tests a manager's ability to instill discipline in colleagues. - Crafting business strategy is based on the analysis of market conditions and the company's resources.

Crafting business strategy is based on the analysis of market conditions and the company's resources.

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

False

Which of the following statements about developing resources and capabilities is true? Multiple choice question. - 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. - Building resources and capabilities is critical only when a company is implementing a new strategy. - 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 about the organizational structure of a business is true? Multiple choice question. - 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 firm's organizational structure should be matched to the particular requirements of its strategy implementation. - 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.

In small organizations, top managers are typically required to Multiple choice question. - direct resources throughout a large number of geographically scattered units. - 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. - hire outside consultants to direct actions steps and push the process along.

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

What is a company's best source of creative ideas for ground-level improvements that lead to operating excellence? Multiple choice question. - newly hired graduates from top-notch universities - knowledgeable and engaged employees - outside consultants with experience in the industry - senior executives

knowledgeable and engaged employees

In addition to helping companies develop strategy-critical competencies, outsourcing can also help a company Multiple select question. - add layers of complexity to the decision-making process. - complicate its organizational structure. - eliminate bureaucracies that can stall business processes. - adapt to changes in the market quickly.

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

Which of the following is an example of outsourcing a value chain activity? Multiple choice question. - A shoe company merges with an apparel manufacturer and keeps production in-house. - 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. - A technology firm discounts technical support and network maintenance to its most valued clients.

A winery contracts farmers to produce grapes.

Which of the following statements about executing business strategy is the most accurate? Multiple choice question. - Managers can trust that a strategy-supportive organizational structure will emerge naturally during the strategy execution process. - Certain managerial tasks must always be carried out in order to execute strategy effectively. - Allocating budgetary resources properly ensures that a strategy will be properly executed. - Capable internal leadership plays a small role in moving strategy forward.

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

Which of the following scenarios best corresponds to the disadvantages of decentralized organizational systems? Multiple choice question. - Production rises because top managers are able to keep managers focused on companywide objectives. - 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 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.

Staffing the organization of a company involves Multiple choice question. - assembling a management team and hiring employees. - establishing lines of authority and channels of communication. - accumulating the financial resources necessary to execute the strategy. - ensuring that the company can adapt to market conditions and meet customer expectations.

assembling a management team and hiring employees.

Which of the following statements about delegating authority in a company is most accurate? Multiple choice question. - Under any organizational structure, frontline employees must determine how much authority to retain and how much to delegate. - 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. - The organizational structure a company puts severe constraints on how the company can choose to delegate authority.

Top managers have a variety of options when considering how much authority to delegate to people at lower levels of the organization.

A functional organizational structure is Multiple choice question. - 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 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.

Managers who possess the skill required to implement strategy are not afraid to Multiple choice question. - ignore the company's core values to meet goals. - openly question the authority of executives above them. - reprimand mid-level managers in front of their subordinates. - ask incisive questions.

ask incisive questions.

When setting an action agenda for implementing a business strategy, a business manager should begin by Multiple choice question. - assessing what the organization needs to do differently in order to carry out the strategy. - creating an organizational structure that can support the execution of the strategy. - filling key positions in the company with the personnel who will carry out 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.

The process of executing strategy Multiple choice question. - usually involves all value chain activities. - 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.

Which of the following statements identify key advantages of central decision making? Multiple select question. - Centralized decision making allows a company to adapt quickly to changing market conditions. - Centralized decision making can give top leaders the power to act effectively in a crisis. - Centralized decision making increases the likelihood that the company's stock prices will rise consistently. - Centralized decision making reduces the likelihood of conflicting decisions among mid-level managers.

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

What strategies do leading companies use to attempt to staff their companies with the right kinds of personnel? Multiple select question. - Recruit the most qualified people. - Hold back new employees from assignments that promote growth. - Subject employees to tight surveillance. - Offer competitive compensation packages.

- Recruit the most qualified people. - Offer competitive compensation packages.

Which of the following statements about the relationship between value chain activities are true? Multiple select question. - All value chain activities are equally critical to successful strategy implementation. - 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 the most simple value chain activities the foundation of their organizational structure.

- 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.

Which of the following statements accurately describe the process of executing a business strategy? Multiple select question. - Executing a business strategy requires managers who work effectively with colleagues. - Executing a business strategy often requires a manager to prioritize short-term goals over long-term goals. - Executing a business strategy is an analysis-driven activity. - Executing a business strategy is an action-driven activity.

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

Which of the following statements about a functional organizational structure are true? Multiple select question. - Functional structures are known as departmental structures. - In functional structures, the chief executive directly oversees operations within each functional unit. - The main advantage of functional structure over simple structure is greater task specialization. - Functional structures are known as flat structures.

- Functional structures are known as departmental structures. - The main advantage of functional structure over simple structure is greater task specialization.

Which of the following statements concerning the disadvantages of a decentralized system are true? Multiple select question. - 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. - Many companies have concluded that the advantages of decentralization are canceled by the inefficiencies and problems associated with it. - Top-level managers frequently have too much control over mid-level managers.

- 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 statements regarding the execution of a strategy are true? Multiple select question. - 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. - Making minor changes to an existing strategy requires the same procedures as implementing radical strategy changes. - Implementing new strategy in a struggling company requires the same set of procedures as implementing new strategy in a high-performing company.

- 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.

Which of the following correctly describe the two extremes of organizational decision-making latitude? (Check all that apply.) Multiple select question. - To centralize decision making, which gives top executives considerable control over daily operations - To decentralize decision making, which typically restricts mid-level managers - 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? Multiple select question. - 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.

Outsourcing can help Multiple select question. - eliminate the need to work closely with suppliers. - a technology firm slow down the rate of product evolution in the software market. - car companies produce new models more quickly. - consumer electronics companies get next-generation products to market ahead of the competition.

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

Fast-food enterprises can rely on effective partnerships with local franchises to Multiple select question. - construct an effective national marketing strategy. - ensure consistency across locations. - ensure that food products meet corporate standards for quality. - maintain proper levels of cleanliness and staff courtesy toward customers.

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

What three key actions are required to build an organization capable of good strategy execution? Multiple select question. - 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 - implementing sound structure within the organization - developing strong management and finding the right employees for the organization

When assembling a strong management team, it is crucial to fill positions with people who Multiple select question. - come from similar backgrounds. - have experience delivering results. - are clear thinkers. - are reluctant to make decisions.

- have experience delivering results. - are clear thinkers.

When implementing a business strategy, a manager needs the skill to Multiple select question. - integrate the work of different groups into a cohesive whole. - keep controversial issues from cropping up. - build a consensus and keep projects moving. - achieve proficiency with the strategy in a short period of time.

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

Which of the following are basic managerial tasks associated with executing business strategy? Multiple select question. - linking incentives to achieving the financial goals of the strategy. - establishing cooperative relationships with competitors. - creating a culture within the organization that promotes effective strategy execution. - installing systems that allow personnel to carry out their roles in the strategy execution process.

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

Which of the following groups are involved in executing a new business strategy? Multiple select question. - competitors - mid-level managers - senior managers - customers

- mid-level managers - senior managers

A company may choose to outsource certain value chain activities because Multiple select question. - outsourcing an activity may allow a company to concentrate its efforts on activities that are at the core of its strategy. - another company may have the capability to perform those activities more efficiently. - a company will likely find it beneficial to turn core strategy activities over to another company. - outsourcing may add costs to the final price of goods and services.

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

The structural organization of a firm Multiple select question. - reflects prior organizational patterns and internal circumstances. - is, in part, a product of executive judgments. - has minimal impact on how strategy is executed. - is unaffected by staff politics and reporting relationships.

- reflects prior organizational patterns and internal circumstances. - is, in part, a product of executive judgments.

When crafting and executing strategy, good managers need to Multiple select question. - 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. - resist modifying resources and capabilities when market conditions evolve.

- upgrade resources and capabilities as necessary. - put the resources and capabilities in place that will enable the strategy to succeed.

When devising an action agenda, each manager within an organization needs to determine Multiple select question. - what needs to be accomplished in his or her area of responsibility in order to carry out the strategy. - how to accomplish the various things that must get done in order to execute the strategy. - how to maximize the benefits he or she personally receives from the strategy. - the most efficient way to facilitate communication between shareholders and frontline employees.

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

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. - 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. - Top-level executives continue to add layers of management, slowing the organization's response time to market changes.

A company experiences a sustained period of high morale because people feel empowered to direct their own work.