Question 1

Discuss several actions that can have a positive influence on board of director dynamics as the board works to both oversee and advise management.

Accepted Answer

The actions include: (1) building the right expertise on the board; (2) keeping the board size manageable; (3) choosing directors who can participate fully; (4) balancing the need to focus on the past, the present, and the future; (5) considering management talent development; (6) getting a broad view; and (7) maintaining norms of transparency and trust.

Question 2

For businesses facing complex and turbulent business environments, which of the following is true?

Accepted Answer

A)  Goals and objectives that are uncertain prevent opportunism. 
B)  Traditional strategic controls are usually inappropriate. 
C)  Complacency about predetermined milestones can prevent adaptability. 
D)  Detailed plans are needed to maintain order. 
A)  Goals and objectives that are uncertain prevent opportunism. 
B)  Traditional strategic controls are usually inappropriate. 
C)  Complacency about predetermined milestones can prevent adaptability. 
D)  Detailed plans are needed to maintain order. B

Question 3

Discuss the differences between informational control and behavioural control and when each is appropriate.

Accepted Answer

Adapting to and anticipating both internal and external environmental change is an integral part of strategic control. The relationships between strategy formulation, implementation, and control are highly interactive, as suggested by Exhibit 9.2. The exhibit also illustrates two different types of strategic control: informational control and behavioral control. Informational control is a method of organizational control in which a firm gathers and analyzes information from the internal and external environment in order to obtain the best fit between the organization's goals and strategies and the strategic environment. It is primarily concerned with whether the organization is doing the right things. Behavioral control is a method of organizational control in which a firm influences the actions of employees through culture, rewards, and boundaries. It asks if the organization is doing things right in the implementation of its strategy. Both the informational and behavioral components of strategic control are necessary, but not sufficient, conditions for success. What good is a well-conceived strategy that cannot be implemented? Or what use is an energetic and committed workforce if it is focused on the wrong strategic target?

Question 4

Contemporary strategic controls involve comparing actual performance to predetermined goals.

Accepted Answer

A) True 
 B)False

Question 5

In emerging economies and continental Europe, firms often can be characterized by all the following except

Accepted Answer

A)  concentrated ownership. 
B)  low family ownership and control. 
C)  business group structures. 
D)  weak legal protection for minority shareholders. 
A)  concentrated ownership. 
B)  low family ownership and control. 
C)  business group structures. 
D)  weak legal protection for minority shareholders.

Question 6

When would single-loop control systems be most appropriate?

Accepted Answer

The traditional approach to strategic co

Question 7

Which of the following is not an example of how organizational culture exerts behavioral control?

Accepted Answer

A)  Culture helps maintain control by creating behavioral norms. 
B)  Culture generates unwritten standards of acceptable behavior. 
C)  Culture encourages individual identification with the organization and its objectives. 
D)  Culture sets explicit boundaries. 
A)  Culture helps maintain control by creating behavioral norms. 
B)  Culture generates unwritten standards of acceptable behavior. 
C)  Culture encourages individual identification with the organization and its objectives. 
D)  Culture sets explicit boundaries.

Question 8

Single-loop learning, according to Chris Argyris, is most appropriate when the environment is ________, goals and objective can be measured with a ________ of certainty, and there is ________ need for complex measures of performance.

Accepted Answer

A)  stable; high level; little 
B)  unstable; low level; great 
C)  stable; low level; great 
D)  unstable; high level; little 
A)  stable; high level; little 
B)  unstable; low level; great 
C)  stable; low level; great 
D)  unstable; high level; little

Question 9

Double-loop learning in the contemporary approach to strategic control means that the organizational assumptions, premises, goals and strategies are occasionally monitored, tested, andreviewed.

Accepted Answer

A) True 
 B)False

Question 10

Brent Beshore, CEO of adventur.es, a private investment firm, walks around the office every day thanking people for their contributions. What purpose does this serve in terms of attainingbehavioral control?

Accepted Answer

A)  It reminds employees of adventur.es rules and regulations. 
B)  It helps reinforce and sustain the adventur.es culture. 
C)  It demonstrates to employees the importance of articulating explicit goals and objectives. 
D)  It makes the adventur.es reward system very explicit. 
A)  It reminds employees of adventur.es rules and regulations. 
B)  It helps reinforce and sustain the adventur.es culture. 
C)  It demonstrates to employees the importance of articulating explicit goals and objectives. 
D)  It makes the adventur.es reward system very explicit.

Question 11

As firms downsize, a control system based on rewards and culture becomes dysfunctional.

Accepted Answer

A) True 
 B)False

Question 12

The power of shareholders has intensified in recent years because of the

Accepted Answer

A)  decreasing influence of large institutional investors. 
B)  increasing influence of large institutional investors. 
C)  decline in the number of interested institutional investors. 
D)  increasing influence of small individual investors. 
A)  decreasing influence of large institutional investors. 
B)  increasing influence of large institutional investors. 
C)  decline in the number of interested institutional investors. 
D)  increasing influence of small individual investors.

Question 13

For the maximum benefit of each part, a corporation is a mechanism created to allow different parties to contribute all the following except

Accepted Answer

A)  buildings. 
B)  capital. 
C)  expertise. 
D)  labor. 
A)  buildings. 
B)  capital. 
C)  expertise. 
D)  labor.

Question 14

As firms simultaneously downsize and face the need for increased coordination across organizational boundaries, a control system based primarily on ________ is dysfunctional.

Accepted Answer

A)  boundaries and constraints 
B)  culture and rewards 
C)  organizational loyalty 
D)  innovation and risk taking 
A)  boundaries and constraints 
B)  culture and rewards 
C)  organizational loyalty 
D)  innovation and risk taking

Question 15

One of the most critical roles of the board of directors is to create incentives that align the interests of the CEO and top executives with the interests of shareholders.

Accepted Answer

A) True 
 B)False

Question 16

In order to have effective board operations, firms need to cultivate engaged and committed boards.

Accepted Answer

A) True 
 B)False

Question 17

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the U.K. food business had booked income early and delayed the bookingofcosts in order to improve appearances of financial performance. This scandal results from ________ and ________.

Accepted Answer

A)  poor environment; management systems 
B)  poor governance; control 
C)  external environmental factors; internal environmental factors 
D)  leadership; financial systems 
A)  poor environment; management systems 
B)  poor governance; control 
C)  external environmental factors; internal environmental factors 
D)  leadership; financial systems

Question 18

Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations. Which of thefollowing is not a technique for moving in that direction?

Accepted Answer

A)  Hire people who identify with the dominant values of the organization. 
B)  Develop managerial role models. 
C)  Minimize training and indoctrination. 
D)  Align reward systems with organizational goals and objectives. 
A)  Hire people who identify with the dominant values of the organization. 
B)  Develop managerial role models. 
C)  Minimize training and indoctrination. 
D)  Align reward systems with organizational goals and objectives.

Question 19

Effectively implementing strategy requires manipulating three key control levers: culture, rewards, and boundaries. What are the compelling reasons for an increased emphasis on cultureandrewards in a system of behavior controls?

Accepted Answer

There are two compelling reasons for an

Question 20

Expropriation of minority shareholders means that minority shareholders

Accepted Answer

A)  must sell their shares upon demand. 
B)  cannot own shares in foreign firms. 
C)  do not receive dividends. 
D)  are adversely affected by the actions of controlling shareholders. 
A)  must sell their shares upon demand. 
B)  cannot own shares in foreign firms. 
C)  do not receive dividends. 
D)  are adversely affected by the actions of controlling shareholders.

Discuss several actions that can have a positive influence on board of director dynamics as the board works to both oversee and advise management.

For businesses facing complex and turbulent business environments, which of the following is true?

Discuss the differences between informational control and behavioural control and when each is appropriate.

Contemporary strategic controls involve comparing actual performance to predetermined goals.

In emerging economies and continental Europe, firms often can be characterized by all the following except

When would single-loop control systems be most appropriate?

Which of the following is not an example of how organizational culture exerts behavioral control?

Single-loop learning, according to Chris Argyris, is most appropriate when the environment is , goals and objective can be measured with a of certainty, and there is need for complex measures of performance.

Double-loop learning in the contemporary approach to strategic control means that the organizational assumptions, premises, goals and strategies are occasionally monitored, tested, andreviewed.

Brent Beshore, CEO of adventur.es, a private investment firm, walks around the office every day thanking people for their contributions. What purpose does this serve in terms of attainingbehavioral control?

As firms downsize, a control system based on rewards and culture becomes dysfunctional.

The power of shareholders has intensified in recent years because of the

For the maximum benefit of each part, a corporation is a mechanism created to allow different parties to contribute all the following except

As firms simultaneously downsize and face the need for increased coordination across organizational boundaries, a control system based primarily on ________ is dysfunctional.

One of the most critical roles of the board of directors is to create incentives that align the interests of the CEO and top executives with the interests of shareholders.

In order to have effective board operations, firms need to cultivate engaged and committed boards.

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the U.K. food business had booked income early and delayed the bookingofcosts in order to improve appearances of financial performance. This scandal results from and .

Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations. Which of thefollowing is not a technique for moving in that direction?

Effectively implementing strategy requires manipulating three key control levers: culture, rewards, and boundaries. What are the compelling reasons for an increased emphasis on cultureandrewards in a system of behavior controls?

Expropriation of minority shareholders means that minority shareholders

Strategic Management Creating Competitive Advantages

Analyzing the External Environment of the Firm Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's Tangible Resources

Business-Level Strategy Creating and Sustaining Competitive Advantages

Corporate-Level Strategy Creating Value through Diversification

International Strategy Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Creating Effective Organizational Designs

Strategic Leadership Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Exam 9: Strategic Control and Corporate Governance

Discuss several actions that can have a positive influence on board of director dynamics as the board works to both oversee and advise management.

For businesses facing complex and turbulent business environments, which of the following is true?

Discuss the differences between informational control and behavioural control and when each is appropriate.

Contemporary strategic controls involve comparing actual performance to predetermined goals.

In emerging economies and continental Europe, firms often can be characterized by all the following except

When would single-loop control systems be most appropriate?

Which of the following is not an example of how organizational culture exerts behavioral control?

Single-loop learning, according to Chris Argyris, is most appropriate when the environment is ________, goals and objective can be measured with a ________ of certainty, and there is ________ need for complex measures of performance.

Double-loop learning in the contemporary approach to strategic control means that the organizational assumptions, premises, goals and strategies are occasionally monitored, tested, andreviewed.

Brent Beshore, CEO of adventur.es, a private investment firm, walks around the office every day thanking people for their contributions. What purpose does this serve in terms of attainingbehavioral control?

As firms downsize, a control system based on rewards and culture becomes dysfunctional.

The power of shareholders has intensified in recent years because of the

For the maximum benefit of each part, a corporation is a mechanism created to allow different parties to contribute all the following except

As firms simultaneously downsize and face the need for increased coordination across organizational boundaries, a control system based primarily on ________ is dysfunctional.

One of the most critical roles of the board of directors is to create incentives that align the interests of the CEO and top executives with the interests of shareholders.

In order to have effective board operations, firms need to cultivate engaged and committed boards.

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the U.K. food business had booked income early and delayed the bookingofcosts in order to improve appearances of financial performance. This scandal results from ________ and ________.

Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations. Which of thefollowing is not a technique for moving in that direction?

Effectively implementing strategy requires manipulating three key control levers: culture, rewards, and boundaries. What are the compelling reasons for an increased emphasis on cultureandrewards in a system of behavior controls?

Expropriation of minority shareholders means that minority shareholders

Strategic Management Creating Competitive Advantages

Analyzing the External Environment of the Firm Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's Tangible Resources

Business-Level Strategy Creating and Sustaining Competitive Advantages

Corporate-Level Strategy Creating Value through Diversification

International Strategy Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Creating Effective Organizational Designs

Strategic Leadership Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Single-loop learning, according to Chris Argyris, is most appropriate when the environment is , goals and objective can be measured with a of certainty, and there is need for complex measures of performance.

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the U.K. food business had booked income early and delayed the bookingofcosts in order to improve appearances of financial performance. This scandal results from and .