Question 1

The backbone of the process of identifying,studying,and implementing best practices is:

Accepted Answer

A)  business process reengineering 
B)  a corporate culture that has a core value of operating excellence 
C)  benchmarking 
D)  Six Sigma quality control techniques 
E)  the innovative application of TQM techniques 
A)  business process reengineering 
B)  a corporate culture that has a core value of operating excellence 
C)  benchmarking 
D)  Six Sigma quality control techniques 
E)  the innovative application of TQM techniques

Question 2

Because functional organization structures often result in pieces of strategically relevant activities and capabilities being scattered across many different functional departments,companies have found that:

Accepted Answer

A)  it is necessary to give these functional departments the freedom to collaborate closely with each other to achieve the desired degree of coordination. 
B)  it is necessary to outsource those activities that are fragmented to strategic partners in order to achieve the needed coordination. 
C)  there is merit in using business process reengineering to radically redesign and streamline strategy-critical processes and workflow from different departments and unifying their performance into a single department or cross-functional work group that has charge over the whole process. 
D)  TQM is a potent way to reengineer the work effort,avoid the shortcomings of a functional organization structure,and achieve rapid-response capability. 
E)  it makes good organizational sense to combine those functional departments where fragmentation is a problem into a single department. 
A)  it is necessary to give these functional departments the freedom to collaborate closely with each other to achieve the desired degree of coordination. 
B)  it is necessary to outsource those activities that are fragmented to strategic partners in order to achieve the needed coordination. 
C)  there is merit in using business process reengineering to radically redesign and streamline strategy-critical processes and workflow from different departments and unifying their performance into a single department or cross-functional work group that has charge over the whole process. 
D)  TQM is a potent way to reengineer the work effort,avoid the shortcomings of a functional organization structure,and achieve rapid-response capability. 
E)  it makes good organizational sense to combine those functional departments where fragmentation is a problem into a single department.

Question 3

To build a total quality culture and achieve full value from the use of TQM or Six Sigma initiatives,managers can take such action steps as:

Accepted Answer

A)  signaling unequivocal and unyielding commitment to total quality,continuous improvement,and operating excellence;encouraging quality-supportive behaviors on the part of employees,empowering employees to make changes to improve quality;and using online systems to give employees immediate access to best practice information and experiences. 
B)  requiring all company personnel to attend Six Sigma training programs and achieve "black belt" status. 
C)  instituting greater centralization of decision making to help enforce strict compliance with quality control policies and procedures. 
D)  stressing 100 percent accurate individual performance rather than group or team performance. 
E)  dismissing employees who repeatedly fail to achieve 100percent accuracy in their work after a 12-month trial period. 
A)  signaling unequivocal and unyielding commitment to total quality,continuous improvement,and operating excellence;encouraging quality-supportive behaviors on the part of employees,empowering employees to make changes to improve quality;and using online systems to give employees immediate access to best practice information and experiences. 
B)  requiring all company personnel to attend Six Sigma training programs and achieve "black belt" status. 
C)  instituting greater centralization of decision making to help enforce strict compliance with quality control policies and procedures. 
D)  stressing 100 percent accurate individual performance rather than group or team performance. 
E)  dismissing employees who repeatedly fail to achieve 100percent accuracy in their work after a 12-month trial period.

Question 4

The first principle in designing an effective compensation system and the most dependable way to keep people focused on strategy execution and the achievement of performance targets is to:

Accepted Answer

A)  establish ethical compensation policies and convince employees that they are the firm's most valuable competitive asset. 
B)  design monetary and nonmonetary incentives that boost labor productivity and help lower the firm's overall labor costs. 
C)  generously reward and recognize people who meet or beat performance targets and to deny rewards and recognition to those who don't. 
D)  pay employees a bonus for each strategic and financial objective that the company achieves. 
E)  allow employees to propose what rewards they would like to receive to achieve the company's stretch objectives. 
A)  establish ethical compensation policies and convince employees that they are the firm's most valuable competitive asset. 
B)  design monetary and nonmonetary incentives that boost labor productivity and help lower the firm's overall labor costs. 
C)  generously reward and recognize people who meet or beat performance targets and to deny rewards and recognition to those who don't. 
D)  pay employees a bonus for each strategic and financial objective that the company achieves. 
E)  allow employees to propose what rewards they would like to receive to achieve the company's stretch objectives.

Question 5

Reengineering how a firm performs a business process:

Accepted Answer

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. 
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.

Question 6

Which of the following is NOT a method that company managers can use to promote operating excellence in performing value chain activities?

Accepted Answer

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. 
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.

Question 7

Why does it make sense to create some job anxiety,insecurity,and stress as part of a company's motivational and reward scheme for promoting competent strategy execution?

Accepted Answer

As a general rule,it is unwise to take o

Question 8

To obtain maximum benefits from benchmarking,best practices,reengineering,TQM,and Six Sigma programs aimed at facilitating better strategy execution,managers need to:

Accepted Answer

A)  start with a clear idea of what specific outcomes really matter,such as a Six Sigma defect rate or superior customer satisfaction,and then build a total quality culture that is genuinely committed to achieving these outcomes. 
B)  have annual contests to see which part of the company is making the greatest strides in approaching operating excellence. 
C)  strive for 100 percent control over the variability in how each and every value chain activity is performed. 
D)  have at least 50 percent of company personnel earn "green belts" in Six Sigma techniques. 
E)  build core competencies in TQM,Six Sigma,benchmarking,best practices adoption,and business process reengineering. 
A)  start with a clear idea of what specific outcomes really matter,such as a Six Sigma defect rate or superior customer satisfaction,and then build a total quality culture that is genuinely committed to achieving these outcomes. 
B)  have annual contests to see which part of the company is making the greatest strides in approaching operating excellence. 
C)  strive for 100 percent control over the variability in how each and every value chain activity is performed. 
D)  have at least 50 percent of company personnel earn "green belts" in Six Sigma techniques. 
E)  build core competencies in TQM,Six Sigma,benchmarking,best practices adoption,and business process reengineering.

Question 9

It is often said that benchmarking is the backbone of the process of identifying,studying,and implementing best practices.Explain the role of benchmarking.

Accepted Answer

The role of benchmarking is to look outw

Question 10

An ambidextrous organization is one that:

Accepted Answer

A)  pursues incremental improvements in operating efficiency,while R&D and other processes that allow the company to develop new ways of offering value to customers are given freer rein. 
B)  is capable of using efficiency and effectiveness with equal skill. 
C)  is very skillful and versatile with operating activity. 
D)  is managed by employing continuous improvement in operating practices while managing employees as a loosely integrated network of efficiency. 
E)  employs identical improvement methods for both operating processes and R&D. 
A)  pursues incremental improvements in operating efficiency,while R&D and other processes that allow the company to develop new ways of offering value to customers are given freer rein. 
B)  is capable of using efficiency and effectiveness with equal skill. 
C)  is very skillful and versatile with operating activity. 
D)  is managed by employing continuous improvement in operating practices while managing employees as a loosely integrated network of efficiency. 
E)  employs identical improvement methods for both operating processes and R&D.

Question 11

Although it is relatively easy for rivals to implement process management tools,it is much more difficult and time-consuming for them to:

Accepted Answer

A)  instill a deeply ingrained culture of operating excellence. 
B)  keep employees well-informed about the strides being made with continuous improvement. 
C)  unify the managerial efforts behind improving operating practices as a commendable goal. 
D)  combine the pursuit of financial objectives with the pursuit of its strategic objectives. 
E)  understand the barriers to installing new operating activities. 
A)  instill a deeply ingrained culture of operating excellence. 
B)  keep employees well-informed about the strides being made with continuous improvement. 
C)  unify the managerial efforts behind improving operating practices as a commendable goal. 
D)  combine the pursuit of financial objectives with the pursuit of its strategic objectives. 
E)  understand the barriers to installing new operating activities.

Question 12

Total quality management (TQM)emphasizes all of the following EXCEPT which?

Accepted Answer

A)  100 percent accuracy in performing tasks 
B)  Continuous improvement in all phases of operations 
C)  Adoption of industry standard operating practices 
D)  Benchmarking and total customer satisfaction 
E)  Empowerment of employees and team-based work design 
A)  100 percent accuracy in performing tasks 
B)  Continuous improvement in all phases of operations 
C)  Adoption of industry standard operating practices 
D)  Benchmarking and total customer satisfaction 
E)  Empowerment of employees and team-based work design

Question 13

Total quality management (TQM)programs:

Accepted Answer

A)  deal exclusively with procedures to achieve defect-free manufacturing and assembly. 
B)  nearly always contribute more to the achievement of operating excellence than either business process reengineering or Six Sigma quality control techniques. 
C)  entail creating a corporate culture bent on continuously improving the performance of every task and every value chain activity. 
D)  are considerably more effective in improving manufacturing and assembly activities than they are in improving such value chain activities as R&D,human resources management,supply chain management,information technology,sales,and marketing and finance. 
E)  are generally considered the best tool for reengineering strategy-critical business processes. 
A)  deal exclusively with procedures to achieve defect-free manufacturing and assembly. 
B)  nearly always contribute more to the achievement of operating excellence than either business process reengineering or Six Sigma quality control techniques. 
C)  entail creating a corporate culture bent on continuously improving the performance of every task and every value chain activity. 
D)  are considerably more effective in improving manufacturing and assembly activities than they are in improving such value chain activities as R&D,human resources management,supply chain management,information technology,sales,and marketing and finance. 
E)  are generally considered the best tool for reengineering strategy-critical business processes.

Question 14

The top management at a new social media technology company would like to revamp its incentive compensation system to attract ambitious employees.What would be their best approach?

Accepted Answer

A)  Make the performance bonus at least 3 to 4 percent of base salary to have some impact. 
B)  Make the performance bonus at least 10 to 12 percent of base salary to have some impact. 
C)  Make the performance payoff equal for average and below-average performers. 
D)  Set unrealistic performance standards,but with an equally high compensation. 
E)  Reward people who work very hard,even if they fall short of achieving performance targets. 
A)  Make the performance bonus at least 3 to 4 percent of base salary to have some impact. 
B)  Make the performance bonus at least 10 to 12 percent of base salary to have some impact. 
C)  Make the performance payoff equal for average and below-average performers. 
D)  Set unrealistic performance standards,but with an equally high compensation. 
E)  Reward people who work very hard,even if they fall short of achieving performance targets.

Question 15

Six Sigma processes:

Accepted Answer

A)  are based on three principles: (1)all work is a statistically controllable process;(2)no well-controlled process allows variability;and (3)defect-free work requires tight statistical controls. 
B)  can be used for both improving existing business processes and for developing new processes or products. 
C)  can be used for improving products or business processes but not for developing new products or new processes. 
D)  consists of a disciplined,statistics-based system aimed at producing not more than 10 defects per million iterations for a manufacturing or assembly process. 
E)  can be used for developing new products or new business processes but not for improving existing products or business processes. 
A)  are based on three principles: (1)all work is a statistically controllable process;(2)no well-controlled process allows variability;and (3)defect-free work requires tight statistical controls. 
B)  can be used for both improving existing business processes and for developing new processes or products. 
C)  can be used for improving products or business processes but not for developing new products or new processes. 
D)  consists of a disciplined,statistics-based system aimed at producing not more than 10 defects per million iterations for a manufacturing or assembly process. 
E)  can be used for developing new products or new business processes but not for improving existing products or business processes.

Question 16

The resolute standard for judging whether individuals,teams,and organizational units have done a good job must be measured by:

Accepted Answer

A)  comparing industry performance standards against the company's own internal criteria. 
B)  the level of rapid growth in industry (buyer)demand. 
C)  whether they meet or beat performance targets that reflect good strategy execution. 
D)  the number of rivals existing in the marketplace and their growth results. 
E)  the relative competitive strengths of the industry leaders and how vulnerable they are to mimicry. 
A)  comparing industry performance standards against the company's own internal criteria. 
B)  the level of rapid growth in industry (buyer)demand. 
C)  whether they meet or beat performance targets that reflect good strategy execution. 
D)  the number of rivals existing in the marketplace and their growth results. 
E)  the relative competitive strengths of the industry leaders and how vulnerable they are to mimicry.

Question 17

Total quality management (TQM):

Accepted Answer

A)  entails creating a total quality culture that strives for continuously improving the performance of every value chain activity and is driven by a philosophy of managing a set of business practices: 100 percent accuracy in performing tasks (zero defects),involvement and empowerment of employees at all levels,team-based work design,benchmarking,and total customer satisfaction. 
B)  is a valuable tool for helping company managers identify what the best practice is for performing a particular activity at a high level of quality. 
C)  works best when used in conjunction with Six Sigma quality control techniques. 
D)  is an excellent tool for reengineering business processes and making quantum gains in the efficiency and effectiveness with which the processes are performed. 
E)  is a philosophy of doing things that aims at mistake-free management of a company's entire business. 
A)  entails creating a total quality culture that strives for continuously improving the performance of every value chain activity and is driven by a philosophy of managing a set of business practices: 100 percent accuracy in performing tasks (zero defects),involvement and empowerment of employees at all levels,team-based work design,benchmarking,and total customer satisfaction. 
B)  is a valuable tool for helping company managers identify what the best practice is for performing a particular activity at a high level of quality. 
C)  works best when used in conjunction with Six Sigma quality control techniques. 
D)  is an excellent tool for reengineering business processes and making quantum gains in the efficiency and effectiveness with which the processes are performed. 
E)  is a philosophy of doing things that aims at mistake-free management of a company's entire business.

Question 18

A company that successfully and methodically applies Six Sigma methods to its value chain,activity by activity,can:

Accepted Answer

A)  clearly consider what it will take to overtake rivals with the industry's overall best strategy. 
B)  make major strides in improving the proficiency with which its strategy is executed without sacrificing innovation. 
C)  increase its bargaining power with suppliers and create better seller-supplier collaborations. 
D)  assess the extent to which rivals have competitively valuable competencies or capabilities. 
E)  construct a business model that entails a value proposition based on quality. 
A)  clearly consider what it will take to overtake rivals with the industry's overall best strategy. 
B)  make major strides in improving the proficiency with which its strategy is executed without sacrificing innovation. 
C)  increase its bargaining power with suppliers and create better seller-supplier collaborations. 
D)  assess the extent to which rivals have competitively valuable competencies or capabilities. 
E)  construct a business model that entails a value proposition based on quality.

Question 19

A "best practice" refers to:

Accepted Answer

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. 
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.

Question 20

Cavco Construction divests funds from its commercial property ventures to invest in gated community properties close to New York,signaling a change of strategy.Which of the following statements about Cavco is most likely true?

Accepted Answer

A)  Cavco is impeding the efforts to proficiently execute the strategy. 
B)  Cavco is merely fine-tuning its existing strategy to test efficiency. 
C)  Cavco is marshalling resources to support new strategic initiative. 
D)  Cavco is hampering work climate conducive for good strategy execution. 
E)  Cavco is focusing on activities that are a low priority in the strategy execution effort. 
A)  Cavco is impeding the efforts to proficiently execute the strategy. 
B)  Cavco is merely fine-tuning its existing strategy to test efficiency. 
C)  Cavco is marshalling resources to support new strategic initiative. 
D)  Cavco is hampering work climate conducive for good strategy execution. 
E)  Cavco is focusing on activities that are a low priority in the strategy execution effort.

The backbone of the process of identifying,studying,and implementing best practices is:

Because functional organization structures often result in pieces of strategically relevant activities and capabilities being scattered across many different functional departments,companies have found that:

To build a total quality culture and achieve full value from the use of TQM or Six Sigma initiatives,managers can take such action steps as:

The first principle in designing an effective compensation system and the most dependable way to keep people focused on strategy execution and the achievement of performance targets is to:

Reengineering how a firm performs a business process:

Which of the following is NOT a method that company managers can use to promote operating excellence in performing value chain activities?

Why does it make sense to create some job anxiety,insecurity,and stress as part of a company's motivational and reward scheme for promoting competent strategy execution?

To obtain maximum benefits from benchmarking,best practices,reengineering,TQM,and Six Sigma programs aimed at facilitating better strategy execution,managers need to:

It is often said that benchmarking is the backbone of the process of identifying,studying,and implementing best practices.Explain the role of benchmarking.

An ambidextrous organization is one that:

Although it is relatively easy for rivals to implement process management tools,it is much more difficult and time-consuming for them to:

Total quality management (TQM)emphasizes all of the following EXCEPT which?

Total quality management (TQM)programs:

The top management at a new social media technology company would like to revamp its incentive compensation system to attract ambitious employees.What would be their best approach?

Six Sigma processes:

The resolute standard for judging whether individuals,teams,and organizational units have done a good job must be measured by:

Total quality management (TQM):

A company that successfully and methodically applies Six Sigma methods to its value chain,activity by activity,can:

A "best practice" refers to:

Cavco Construction divests funds from its commercial property ventures to invest in gated community properties close to New York,signaling a change of strategy.Which of the following statements about Cavco is most likely true?

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, Andstrategy

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

Building an Organization Capable of Good Strategy Execution

Corporate Culture and Leadership

Filters

Exam 11: Managing Internal Operations

The backbone of the process of identifying,studying,and implementing best practices is:

Because functional organization structures often result in pieces of strategically relevant activities and capabilities being scattered across many different functional departments,companies have found that:

To build a total quality culture and achieve full value from the use of TQM or Six Sigma initiatives,managers can take such action steps as:

The first principle in designing an effective compensation system and the most dependable way to keep people focused on strategy execution and the achievement of performance targets is to:

Reengineering how a firm performs a business process:

Which of the following is NOT a method that company managers can use to promote operating excellence in performing value chain activities?

Why does it make sense to create some job anxiety,insecurity,and stress as part of a company's motivational and reward scheme for promoting competent strategy execution?

To obtain maximum benefits from benchmarking,best practices,reengineering,TQM,and Six Sigma programs aimed at facilitating better strategy execution,managers need to:

It is often said that benchmarking is the backbone of the process of identifying,studying,and implementing best practices.Explain the role of benchmarking.

An ambidextrous organization is one that:

Although it is relatively easy for rivals to implement process management tools,it is much more difficult and time-consuming for them to:

Total quality management (TQM)emphasizes all of the following EXCEPT which?

Total quality management (TQM)programs:

The top management at a new social media technology company would like to revamp its incentive compensation system to attract ambitious employees.What would be their best approach?

Six Sigma processes:

The resolute standard for judging whether individuals,teams,and organizational units have done a good job must be measured by:

Total quality management (TQM):

A company that successfully and methodically applies Six Sigma methods to its value chain,activity by activity,can:

A "best practice" refers to:

Cavco Construction divests funds from its commercial property ventures to invest in gated community properties close to New York,signaling a change of strategy.Which of the following statements about Cavco is most likely true?

What Is Strategy and Why Is It Important

Charting a Companys Direction: Its Vision, Mission, Objectives, Andstrategy

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

Building an Organization Capable of Good Strategy Execution

Corporate Culture and Leadership

Filters