Question 1

The two best signs of good strategy execution are whether

Accepted Answer

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. 
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

Question 2

What business case could you make to Costco to empower its employees?

Accepted Answer

The case for empowering down-the-line managers and employees at Costco to make decisions related to daily operations and strategy execution is based on the belief that a company that draws on the combined intellectual capital of all its employees can outperform a command-and-control company. The challenge in a decentralized system is maintaining adequate control. With decentralized decision-making, top management maintains control by placing limits on the authority granted to company personnel, installing companywide strategic control systems, holding people accountable for their decisions, instituting compensation incentives that reward people for doing their jobs well, and creating a corporate culture where there's strong peer pressure on individuals to act responsibly.

Question 3

Larger firms with more complex organizational structures are

Accepted Answer

A) less decentralized in their decision-making than smaller firms. 
B) more decentralized in their decision-making than smaller firms. 
C) less decentralized in their decision-making than larger firms with simpler structures. 
D) more centralized in their decision-making than smaller firms. 
E) not decentralized due to their operating size. 
A) less decentralized in their decision-making than smaller firms. 
B) more decentralized in their decision-making than smaller firms. 
C) less decentralized in their decision-making than larger firms with simpler structures. 
D) more centralized in their decision-making than smaller firms. 
E) not decentralized due to their operating size. B

Question 4

Imagine that you are proposing that your organization reconfigure itself into a highly centralized organizational structure. What would NOT be one of your supporting rationales for this change?

Accepted Answer

A) Top-level managers retain decision authority for most strategic and operating activities. 
B) Strict control and enforcement of detailed procedures backed by rigorous managerial accountability is the most reliable way to keep the daily execution of strategy on track. 
C) Tight control from the top is a more effective means for coordinating company actions and makes it easy to fix accountability when things do not go well. 
D) One of the basic tenets is that most company personnel have neither the time nor the inclination to direct and properly control the work they are performing and, further, they lack the knowledge and judgment to make wise decisions about how best to do their work. 
E) The decision about where to draw the divisional lines depends foremost on the nature of the relatedness and the strategy-critical building blocks, in terms of which businesses have key value chain activities in common. 
A) Top-level managers retain decision authority for most strategic and operating activities. 
B) Strict control and enforcement of detailed procedures backed by rigorous managerial accountability is the most reliable way to keep the daily execution of strategy on track. 
C) Tight control from the top is a more effective means for coordinating company actions and makes it easy to fix accountability when things do not go well. 
D) One of the basic tenets is that most company personnel have neither the time nor the inclination to direct and properly control the work they are performing and, further, they lack the knowledge and judgment to make wise decisions about how best to do their work. 
E) The decision about where to draw the divisional lines depends foremost on the nature of the relatedness and the strategy-critical building blocks, in terms of which businesses have key value chain activities in common.

Question 5

Diversified companies striving to capture the benefits of synergy between separate businesses have to be aware of all of the following challenges EXCEPT

Accepted Answer

A) giving business-unit heads full rein to operate independently. 
B) having pieces of strategically relevant activities and capabilities scattered across many departments, with each pursuing its own priorities, projects, and agendas. 
C) centralizing performance of functions requiring close coordination at the functional level. 
D) serving the interests of individual businesses and not the company as a whole. 
E) forming cross-business strategic fit by enforcing close collaboration. 
A) giving business-unit heads full rein to operate independently. 
B) having pieces of strategically relevant activities and capabilities scattered across many departments, with each pursuing its own priorities, projects, and agendas. 
C) centralizing performance of functions requiring close coordination at the functional level. 
D) serving the interests of individual businesses and not the company as a whole. 
E) forming cross-business strategic fit by enforcing close collaboration.

Question 6

Implementing and executing strategy successfully requires

Accepted Answer

A) the same kinds of creative management talent and innovative thinking capabilities as crafting strategy. 
B) a financially driven process aimed at squeezing the most profit out of conducting daily operations. 
C) the efforts of a company's whole management team, not just a few senior managers. 
D) a high caliber CEO that possesses the business vision, industry and competitive analysis skills, and entrepreneurial creativity needed to navigate the competitive landscape. 
E) less managerial expertise and effort to perform well, at least in comparison with crafting a winning strategy. 
A) the same kinds of creative management talent and innovative thinking capabilities as crafting strategy. 
B) a financially driven process aimed at squeezing the most profit out of conducting daily operations. 
C) the efforts of a company's whole management team, not just a few senior managers. 
D) a high caliber CEO that possesses the business vision, industry and competitive analysis skills, and entrepreneurial creativity needed to navigate the competitive landscape. 
E) less managerial expertise and effort to perform well, at least in comparison with crafting a winning strategy.

Question 7

What are the advantages of outsourcing non-critical and sometimes even critical value chain activities?

Accepted Answer

Aside from the fact that an outsider, be

Question 8

A network structure is likely to be poorly managed if

Accepted Answer

A) it ensures that the right partners are included and the activities are coordinated. 
B) it encourages more effective collaboration and cooperation among partners. 
C) it includes a hand-picked, integrated network of suppliers. 
D) the arrangement of independent organizations is involved in a common undertaking. 
E) no one firm has a central control over the others. 
A) it ensures that the right partners are included and the activities are coordinated. 
B) it encourages more effective collaboration and cooperation among partners. 
C) it includes a hand-picked, integrated network of suppliers. 
D) the arrangement of independent organizations is involved in a common undertaking. 
E) no one firm has a central control over the others.

Question 9

What are the principal managerial components of the strategy execution process developed by Zara, the world's largest fashion retail chain?

Accepted Answer

A) producing and marketing high fashion clothing that retail for luxury prices 
B) using periodic deep discounting to move unsold clothing inventory 
C) tightly aligning design, production, advertising, and real estate with the overall strategy of fast fashion 
D) meeting industry standards in how value chain activities are performed 
E) spending no money on advertising, which is a hallmark of cost-effective strategy execution 
A) producing and marketing high fashion clothing that retail for luxury prices 
B) using periodic deep discounting to move unsold clothing inventory 
C) tightly aligning design, production, advertising, and real estate with the overall strategy of fast fashion 
D) meeting industry standards in how value chain activities are performed 
E) spending no money on advertising, which is a hallmark of cost-effective strategy execution

Question 10

Outsourcing value chain activities has such strategy executing advantages as

Accepted Answer

A) shrinking internal bureaucracies, decreasing delays in decision-making, and accelerating 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) shrinking internal bureaucracies, decreasing delays in decision-making, and accelerating 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.

Question 11

The three components of building a capable organization are

Accepted Answer

A) optimizing the number of core competencies and competitive capabilities, making sure that all managers and employees are empowered, and maximizing internal operating efficiency. 
B) 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. 
C) staffing the organization, building core competencies and competitive capabilities, and structuring the organization and work effort. 
D) 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. 
E) hiring a capable top management team, empowering employees, and establishing a strategy-supportive corporate culture. 
A) optimizing the number of core competencies and competitive capabilities, making sure that all managers and employees are empowered, and maximizing internal operating efficiency. 
B) 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. 
C) staffing the organization, building core competencies and competitive capabilities, and structuring the organization and work effort. 
D) 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. 
E) hiring a capable top management team, empowering employees, and establishing a strategy-supportive corporate culture.

Question 12

Building organizational bridges with external allies is aided by

Accepted Answer

A) appointing "relationship managers" and giving them responsibility for making particular strategic partnerships or alliances generate the intended benefits. 
B) agreeing with allies to meet frequently and make all decisions pertaining to the alliance on the basis of mutual agreement and consensus. 
C) getting each strategic ally to agree to appoint someone as head of the collaborative effort and to give that person the authority to enforce tight coordination of joint activities. 
D) forming a 50-50 joint venture with each strategic partner, and then assigning people to the joint venture that has the authority and responsibility to enforce tight coordination. 
E) entering into a written agreement detailing the roles and responsibilities of the company and the ally/partner, setting forth the results that are expected, establishing deadlines for achieving these results, and designating the people who are to be responsible for making the collaborative effort work successfully. 
A) appointing "relationship managers" and giving them responsibility for making particular strategic partnerships or alliances generate the intended benefits. 
B) agreeing with allies to meet frequently and make all decisions pertaining to the alliance on the basis of mutual agreement and consensus. 
C) getting each strategic ally to agree to appoint someone as head of the collaborative effort and to give that person the authority to enforce tight coordination of joint activities. 
D) forming a 50-50 joint venture with each strategic partner, and then assigning people to the joint venture that has the authority and responsibility to enforce tight coordination. 
E) entering into a written agreement detailing the roles and responsibilities of the company and the ally/partner, setting forth the results that are expected, establishing deadlines for achieving these results, and designating the people who are to be responsible for making the collaborative effort work successfully.

Question 13

Imagine that you have been retained as a consultant to REI, a diversified U.S. retailer of outdoor adventure outerwear, gear, and travel expeditions. What might be some common approaches that you would recommend to REI for improving its core competencies and competitive capabilities?

Accepted Answer

REI might pursue one or more of the thre

Question 14

A dynamic capability is the

Accepted Answer

A) ongoing capacity to modify existing resources and capabilities to create new ones. 
B) improvement evaluation process for eliminating waste in the firm. 
C) functional and operating resources management process. 
D) ongoing capability to understand and establish a rival commitment to resource alignment. 
E) most compelling product or service in a firm. 
A) ongoing capacity to modify existing resources and capabilities to create new ones. 
B) improvement evaluation process for eliminating waste in the firm. 
C) functional and operating resources management process. 
D) ongoing capability to understand and establish a rival commitment to resource alignment. 
E) most compelling product or service in a firm.

Question 15

What is meant by empowerment of employees? How does it differ from delegation of authority? In what ways can empowerment of employees aid the cause of good strategy execution?

Accepted Answer

The case for empowering down-the-line ma

Question 16

While outsourcing has allowed Apple to reap the benefits of lower cost and more flexible manufacturing, its lack of direct control has proven to be a challenge. How did Apple step in to improve working conditions at Foxconn, one of its major suppliers?

Accepted Answer

A) Apple paid for the installation of suicide prevention nets below Foxconn's factory windows 
B) Apple discontinued its relationship with Foxconn in the best interests of Apple customers who were concerned over labor practices at the factories that manufacture the iPhone. 
C) Apple tightened its supplier standards and increased its efforts at monitoring conditions and enforcing its standards, such as over 700 comprehensive site audits each year to ensure compliance 
D) Apple used its immense sales volume and strong cash position and preferred treatment from suppliers as leverage to induce Foxconn to increase the salaries of the 1.3 million people on its payroll 
E) Apple discontinued all outsourcing activities in Asia and transferred the manufacture and production of its products to low wage countries in Latin America. 
A) Apple paid for the installation of suicide prevention nets below Foxconn's factory windows 
B) Apple discontinued its relationship with Foxconn in the best interests of Apple customers who were concerned over labor practices at the factories that manufacture the iPhone. 
C) Apple tightened its supplier standards and increased its efforts at monitoring conditions and enforcing its standards, such as over 700 comprehensive site audits each year to ensure compliance 
D) Apple used its immense sales volume and strong cash position and preferred treatment from suppliers as leverage to induce Foxconn to increase the salaries of the 1.3 million people on its payroll 
E) Apple discontinued all outsourcing activities in Asia and transferred the manufacture and production of its products to low wage countries in Latin America.

Question 17

How is a functional structure or unitary structure organized?

Accepted Answer

A) with a central executive handling all major decisions 
B) to lighten the load of senior executives so they can concentrate on value chain action agendas 
C) specifically to manage unrelated diversification opportunities 
D) into functional departments, with departmental managers who report to the CEO and small corporate staff 
E) with top-heavy management, and senior executives forming a central office of the chairman 
A) with a central executive handling all major decisions 
B) to lighten the load of senior executives so they can concentrate on value chain action agendas 
C) specifically to manage unrelated diversification opportunities 
D) into functional departments, with departmental managers who report to the CEO and small corporate staff 
E) with top-heavy management, and senior executives forming a central office of the chairman

Question 18

Managerial actions to develop core competencies and competitive capabilities internally generally take one of two forms. What are they?

Accepted Answer

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 
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

Question 19

Primary building blocks in a company's organizational structure do NOT include

Accepted Answer

A) functional departments 
B) process and operations departments 
C) empowered employee departments 
D) divisional units performing major processing steps 
E) geographic organizational units 
A) functional departments 
B) process and operations departments 
C) empowered employee departments 
D) divisional units performing major processing steps 
E) geographic organizational units

Question 20

Putting together a capable top management team with the right mix of experiences, skills, and abilities

Accepted Answer

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. 
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.

The two best signs of good strategy execution are whether

What business case could you make to Costco to empower its employees?

Larger firms with more complex organizational structures are

Imagine that you are proposing that your organization reconfigure itself into a highly centralized organizational structure. What would NOT be one of your supporting rationales for this change?

Diversified companies striving to capture the benefits of synergy between separate businesses have to be aware of all of the following challenges EXCEPT

Implementing and executing strategy successfully requires

What are the advantages of outsourcing non-critical and sometimes even critical value chain activities?

A network structure is likely to be poorly managed if

What are the principal managerial components of the strategy execution process developed by Zara, the world's largest fashion retail chain?

Outsourcing value chain activities has such strategy executing advantages as

The three components of building a capable organization are

Building organizational bridges with external allies is aided by

Imagine that you have been retained as a consultant to REI, a diversified U.S. retailer of outdoor adventure outerwear, gear, and travel expeditions. What might be some common approaches that you would recommend to REI for improving its core competencies and competitive capabilities?

A dynamic capability is the

What is meant by empowerment of employees? How does it differ from delegation of authority? In what ways can empowerment of employees aid the cause of good strategy execution?

While outsourcing has allowed Apple to reap the benefits of lower cost and more flexible manufacturing, its lack of direct control has proven to be a challenge. How did Apple step in to improve working conditions at Foxconn, one of its major suppliers?

How is a functional structure or unitary structure organized?

Managerial actions to develop core competencies and competitive capabilities internally generally take one of two forms. What are they?

Primary building blocks in a company's organizational structure do NOT include

Putting together a capable top management team with the right mix of experiences, skills, and abilities

What Is Strategy and Why Is It Important?

Charting a Companys Direction

Evaluating a Companys External Environment

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Managing Internal Operations

Corporate Culture and Leadership

Filters

Exam 10: Building an Organization Capable of Good Strategy Execution

The two best signs of good strategy execution are whether

What business case could you make to Costco to empower its employees?

Larger firms with more complex organizational structures are

Imagine that you are proposing that your organization reconfigure itself into a highly centralized organizational structure. What would NOT be one of your supporting rationales for this change?

Diversified companies striving to capture the benefits of synergy between separate businesses have to be aware of all of the following challenges EXCEPT

Implementing and executing strategy successfully requires

What are the advantages of outsourcing non-critical and sometimes even critical value chain activities?

A network structure is likely to be poorly managed if

What are the principal managerial components of the strategy execution process developed by Zara, the world's largest fashion retail chain?

Outsourcing value chain activities has such strategy executing advantages as

The three components of building a capable organization are

Building organizational bridges with external allies is aided by

Imagine that you have been retained as a consultant to REI, a diversified U.S. retailer of outdoor adventure outerwear, gear, and travel expeditions. What might be some common approaches that you would recommend to REI for improving its core competencies and competitive capabilities?

A dynamic capability is the

What is meant by empowerment of employees? How does it differ from delegation of authority? In what ways can empowerment of employees aid the cause of good strategy execution?

While outsourcing has allowed Apple to reap the benefits of lower cost and more flexible manufacturing, its lack of direct control has proven to be a challenge. How did Apple step in to improve working conditions at Foxconn, one of its major suppliers?

How is a functional structure or unitary structure organized?

Managerial actions to develop core competencies and competitive capabilities internally generally take one of two forms. What are they?

Primary building blocks in a company's organizational structure do NOT include

Putting together a capable top management team with the right mix of experiences, skills, and abilities

What Is Strategy and Why Is It Important?

Charting a Companys Direction

Evaluating a Companys External Environment

Evaluating a Companys Resources, Capabilities, and Competitiveness

The Five Generic Competitive Strategies

Strengthening a Companys Competitive Position

Strategies for Competing in International Markets

Corporate Strategy

Ethics, Corporate Social Responsibility, Environmental Sustainability, and Strategy

Managing Internal Operations

Corporate Culture and Leadership

Filters