Question 1

The McKinsey "restructuring pentagon" describes:

Accepted Answer

A) A framework to restructure a business unit 
B) A systematic framework for analyzing the costs of restructuring a business unit 
C) A systematic framework to increase the market value of a multidivisional group through increasingly difficult stages of corporate restructuring 
D) A framework to identify the businesses a firm should get rid of 
A) A framework to restructure a business unit 
B) A systematic framework for analyzing the costs of restructuring a business unit 
C) A systematic framework to increase the market value of a multidivisional group through increasingly difficult stages of corporate restructuring 
D) A framework to identify the businesses a firm should get rid of

Question 2

Williamson thought a multi-divisional company solved two economic problems: :

Accepted Answer

A) Allocation of resources, and succession problems 
B) Allocation of resources, and the agency problem 
C) Organizational change, and trade union activities 
D) None of the above 
A) Allocation of resources, and succession problems 
B) Allocation of resources, and the agency problem 
C) Organizational change, and trade union activities 
D) None of the above

Question 3

Which organizational entity is responsible for setting and monitoring performance targets?

Accepted Answer

A) The Strategic Controls department 
B) The corporate headquarters and the top management of each division 
C) Each division 
D) The CEO and finance executives of each division 
A) The Strategic Controls department 
B) The corporate headquarters and the top management of each division 
C) Each division 
D) The CEO and finance executives of each division

Question 4

The large multidivisional firm successfully solves the agency problem.

Accepted Answer

A) This statement is true 
B) This statement is not true 
C) This statement is not supported by evidence 
D) This statement does not make sense 
A) This statement is true 
B) This statement is not true 
C) This statement is not supported by evidence 
D) This statement does not make sense

Question 5

When a firm uses input or output controls, which of the following statements is true?

Accepted Answer

A) They cannot be used together 
B) They must be used together 
C) They are similar 
D) There is an unavoidable tradd.off between the two 
A) They cannot be used together 
B) They must be used together 
C) They are similar 
D) There is an unavoidable tradd.off between the two

Question 6

One of the BCG matrix's virtues is its:

Accepted Answer

A) Complexity 
B) Universal acceptance 
C) Objectivity and quantifiability 
D) Objectionability and quantitivity 
A) Complexity 
B) Universal acceptance 
C) Objectivity and quantifiability 
D) Objectionability and quantitivity

Question 7

How do you control performance in a diversified firm?

Accepted Answer

A diversified firm presents a challenge

Question 8

Regarding the balance between strategic planning and financial control, the trend over time:

Accepted Answer

A) Has been for financial control to become more common 
B) For strategic planning to become more common 
C) Has been for both to remain common 
D) Has been for both to decrease in popularity 
A) Has been for financial control to become more common 
B) For strategic planning to become more common 
C) Has been for both to remain common 
D) Has been for both to decrease in popularity

Question 9

He added that two further benefits are:

Accepted Answer

A) Minimizing goal conflict and avoiding coordination costs 
B) Maximizing coordination costs and avoiding goal conflict 
C) Minimizing coordination costs, and avoiding goal conflicts 
D) Minimizing coordination costs and stockholders' liabilities in the event of bankruptcy 
A) Minimizing goal conflict and avoiding coordination costs 
B) Maximizing coordination costs and avoiding goal conflict 
C) Minimizing coordination costs, and avoiding goal conflicts 
D) Minimizing coordination costs and stockholders' liabilities in the event of bankruptcy

Question 10

By focusing on annual planning cycles strategic planning systems have often proved irrelevant to the actual strategies executed by businesses

Accepted Answer

A) True 
 B)False

Question 11

Oliver Williamson said two advantages of the M-form group were:

Accepted Answer

A) Allowing decision-making to be closer to the markets (dispersed around the organization) and centralizing high-frequency decision making 
B) Allowing decision-making to be closer to the markets (dispersed around the organization) and decentralizing high-frequency decision making 
C) Making the top management team responsible for coordination across the company and decentralizing high-frequency decision making 
D) Making the top management team responsible for coordination across the company and centralizing high-frequency decision-making 
A) Allowing decision-making to be closer to the markets (dispersed around the organization) and centralizing high-frequency decision making 
B) Allowing decision-making to be closer to the markets (dispersed around the organization) and decentralizing high-frequency decision making 
C) Making the top management team responsible for coordination across the company and decentralizing high-frequency decision making 
D) Making the top management team responsible for coordination across the company and centralizing high-frequency decision-making

Question 12

Cross-divisional task forces are:

Accepted Answer

A) Teams in charge of cross-divisional processes or projects, that need high-level sponsorship 
B) Project teams built to develop new organizational forms 
C) Links between the divisional financial departments 
D) Project teams built to explore future business opportunities 
A) Teams in charge of cross-divisional processes or projects, that need high-level sponsorship 
B) Project teams built to develop new organizational forms 
C) Links between the divisional financial departments 
D) Project teams built to explore future business opportunities

Question 13

A holding firm is:

Accepted Answer

A) A financial term to designate any firm 
B) A firm that belongs to the state, or is state-related 
C) A conglomerate which is highly diversified, and where no linkages exist between its businesses 
D) A parent company that owns controlling stakes in several subsidiaries, but, beyond appointing the boards, does not exert significant management control 
A) A financial term to designate any firm 
B) A firm that belongs to the state, or is state-related 
C) A conglomerate which is highly diversified, and where no linkages exist between its businesses 
D) A parent company that owns controlling stakes in several subsidiaries, but, beyond appointing the boards, does not exert significant management control

Question 14

Williamson thought the M-form solved two key problems of large multibusiness organizations: allocation of resources, and peripheral agency proliferation costs

Accepted Answer

A) True 
 B)False

Question 15

What are the two dimensions of the Ashridge portfolio display?

Accepted Answer

A) The relative organizational power of the parent, and the business's innate profitability 
B) The parent's potential to add value to a business, and its potential to impose effective control on the business 
C) The parent's potential to create value, and its potential to destroy value in that business 
D) The cultural fit between the parent and the business, and the rate of information transfer across businesses 
A) The relative organizational power of the parent, and the business's innate profitability 
B) The parent's potential to add value to a business, and its potential to impose effective control on the business 
C) The parent's potential to create value, and its potential to destroy value in that business 
D) The cultural fit between the parent and the business, and the rate of information transfer across businesses

Question 16

What are the advantages and disadvantages of a BCG matrix?

Accepted Answer

The BCG matrix was initially developed t

Question 17

Once a firm has thousands of shareholders the agency problem is accentuated because of:

Accepted Answer

A) Coordination difficulties 
B) Coordination difficulties, and it is easier for disgruntled stockholders to sell their shares than engage management 
C) Coordination difficulties and information asymmetry 
D) The costs of engagement are lower than the likely returns 
A) Coordination difficulties 
B) Coordination difficulties, and it is easier for disgruntled stockholders to sell their shares than engage management 
C) Coordination difficulties and information asymmetry 
D) The costs of engagement are lower than the likely returns

Question 18

Mintzberg criticized the M-form because:

Accepted Answer

A) Decision making may be decentralized, but divisional CEOs may stop all further decentralization, and divisional autonomy soon disappears when performance decreases 
B) In practice the corporate center can impose inappropriately standardized control systems and management styles 
C) Both a and b 
D) Neither a nor b; he was attacking Williamson's critics 
A) Decision making may be decentralized, but divisional CEOs may stop all further decentralization, and divisional autonomy soon disappears when performance decreases 
B) In practice the corporate center can impose inappropriately standardized control systems and management styles 
C) Both a and b 
D) Neither a nor b; he was attacking Williamson's critics

Question 19

Using the BCG matrix:

Accepted Answer

A) Assumes that each business in the portfolio has strong synergies with every other in the group 
B) Has gained in popularity in recent years 
C) Yields the possibly surprising result that well-known firms like Pepsi may be 'dogs' because they are No.2 in a mature industry 
D) Has been abandoned in recent years, because it is too complex 
A) Assumes that each business in the portfolio has strong synergies with every other in the group 
B) Has gained in popularity in recent years 
C) Yields the possibly surprising result that well-known firms like Pepsi may be 'dogs' because they are No.2 in a mature industry 
D) Has been abandoned in recent years, because it is too complex

Question 20

A strategic inflection point is a point where major changes in a firm's competitive environment require a complete change of strategy

Accepted Answer

A) True 
 B)False

The McKinsey "restructuring pentagon" describes:

Williamson thought a multi-divisional company solved two economic problems: :

Which organizational entity is responsible for setting and monitoring performance targets?

The large multidivisional firm successfully solves the agency problem.

When a firm uses input or output controls, which of the following statements is true?

One of the BCG matrix's virtues is its:

How do you control performance in a diversified firm?

Regarding the balance between strategic planning and financial control, the trend over time:

He added that two further benefits are:

By focusing on annual planning cycles strategic planning systems have often proved irrelevant to the actual strategies executed by businesses

Oliver Williamson said two advantages of the M-form group were:

Cross-divisional task forces are:

A holding firm is:

Williamson thought the M-form solved two key problems of large multibusiness organizations: allocation of resources, and peripheral agency proliferation costs

What are the two dimensions of the Ashridge portfolio display?

What are the advantages and disadvantages of a BCG matrix?

Once a firm has thousands of shareholders the agency problem is accentuated because of:

Mintzberg criticized the M-form because:

Using the BCG matrix:

A strategic inflection point is a point where major changes in a firm's competitive environment require a complete change of strategy

The Concept of Strategy

Goals, Values and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Analyzing Resources and Capabilities

Developing Resources and Capabilities

Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

The Nature and Sources of Competitive Advantage

Cost Advantage

Differentiation Advantage

Industry Evolution and Strategic Change

Technology-Based Industries and the Management of Innovation

Competitive Advantage in Mature Industries

Vertical Integration and the Scope of the Firm

Global Strategies and the Multinational Corporation

Diversification Strategy

Current Trends in Strategic Management

Filters

Exam 17: Implementing Corporate Strategy: Management of the Multibusiness Firm

The McKinsey "restructuring pentagon" describes:

Williamson thought a multi-divisional company solved two economic problems: :

Which organizational entity is responsible for setting and monitoring performance targets?

The large multidivisional firm successfully solves the agency problem.

When a firm uses input or output controls, which of the following statements is true?

One of the BCG matrix's virtues is its:

How do you control performance in a diversified firm?

Regarding the balance between strategic planning and financial control, the trend over time:

He added that two further benefits are:

By focusing on annual planning cycles strategic planning systems have often proved irrelevant to the actual strategies executed by businesses

Oliver Williamson said two advantages of the M-form group were:

Cross-divisional task forces are:

A holding firm is:

Williamson thought the M-form solved two key problems of large multibusiness organizations: allocation of resources, and peripheral agency proliferation costs

What are the two dimensions of the Ashridge portfolio display?

What are the advantages and disadvantages of a BCG matrix?

Once a firm has thousands of shareholders the agency problem is accentuated because of:

Mintzberg criticized the M-form because:

Using the BCG matrix:

A strategic inflection point is a point where major changes in a firm's competitive environment require a complete change of strategy

The Concept of Strategy

Goals, Values and Performance

Industry Analysis: the Fundamentals

Further Topics in Industry and Competitive Analysis

Analyzing Resources and Capabilities

Developing Resources and Capabilities

Organization Structure and Management Systems: the Fundamentals of Strategy Implementation

The Nature and Sources of Competitive Advantage

Cost Advantage

Differentiation Advantage

Industry Evolution and Strategic Change

Technology-Based Industries and the Management of Innovation

Competitive Advantage in Mature Industries

Vertical Integration and the Scope of the Firm

Global Strategies and the Multinational Corporation

Diversification Strategy

Current Trends in Strategic Management

Filters