Question 1

What is the advantage of acquiring capabilities through merger and acquisition?

Accepted Answer

A)  Speed,since developing new capabilities internally can take many years of effort 
B)  Empowerment,since you can capture the essence of the capability and refocus the firm 
C)  Price,as it is always cheaper to buy a whole company and pull out the capabilities individually 
D)  Assets,as it the basis of the sale 
E)  Investment,since resources and capabilities are considerable stronger 
A)  Speed,since developing new capabilities internally can take many years of effort 
B)  Empowerment,since you can capture the essence of the capability and refocus the firm 
C)  Price,as it is always cheaper to buy a whole company and pull out the capabilities individually 
D)  Assets,as it the basis of the sale 
E)  Investment,since resources and capabilities are considerable stronger

Question 2

Identify and briefly discuss the four types of organizational structures that can be aligned with strategy execution.

Accepted Answer

As firms grow and their needs for struct

Question 3

Delegating greater authority to subordinate managers and employees:

Accepted Answer

A)  creates a more horizontal or flatter organizational structure with fewer management layers and usually acts to shorten organizational response times. 
B)  usually slows down decision making because so many more people are involved and it takes longer to reach a consensus on what to do and when to do it. 
C)  can be a de-motivating factor because it requires people to take responsibility for their decisions and actions. 
D)  is very risky because it usually results in lots of "bad" decisions on the part of employees,as well as lower levels of financial performance. 
E)  enhances greater cross-unit coordination and aids the capture of strategic fit benefits across related businesses. 
A)  creates a more horizontal or flatter organizational structure with fewer management layers and usually acts to shorten organizational response times. 
B)  usually slows down decision making because so many more people are involved and it takes longer to reach a consensus on what to do and when to do it. 
C)  can be a de-motivating factor because it requires people to take responsibility for their decisions and actions. 
D)  is very risky because it usually results in lots of "bad" decisions on the part of employees,as well as lower levels of financial performance. 
E)  enhances greater cross-unit coordination and aids the capture of strategic fit benefits across related businesses.

Question 4

Which of the following is generally NOT among the common practices that companies use to staff jobs with talented people,particularly if intellectual capital greatly aids good strategy execution?

Accepted Answer

A)  Careful screening and evaluation of job applicants,along with continuous training and retraining programs for employees that continue throughout their careers 
B)  Rotating people through jobs that not only have great content but also span functional and geographic boundaries 
C)  Eliminating the bottom 10 percent of the lowest-performing employees each year to increase the overall quality performance metrics to above-average industry standards 
D)  Encouraging employees to challenge existing ways of doing things,to be creative and innovative in proposing better ways of operating,and to push their ideas for new products or businesses 
E)  Fostering a stimulating and engaging work environment such that employees will consider the company a great place to work 
A)  Careful screening and evaluation of job applicants,along with continuous training and retraining programs for employees that continue throughout their careers 
B)  Rotating people through jobs that not only have great content but also span functional and geographic boundaries 
C)  Eliminating the bottom 10 percent of the lowest-performing employees each year to increase the overall quality performance metrics to above-average industry standards 
D)  Encouraging employees to challenge existing ways of doing things,to be creative and innovative in proposing better ways of operating,and to push their ideas for new products or businesses 
E)  Fostering a stimulating and engaging work environment such that employees will consider the company a great place to work

Question 5

The organizing challenge of a decentralized structure that stresses employee empowerment is:

Accepted Answer

A)  how to keep empowered employees from making lots of stupid decisions. 
B)  establishing a collegial,collaborative culture so that decisions can be made by gaining a quick consensus on what to do and when to do it. 
C)  how to avoid de-motivating employees (because empowered employees are expected to take responsibility for their actions and decisions). 
D)  how to exercise control over the actions and decisions of empowered employees so that the business is not put at risk while trying to capture the benefits of empowerment. 
E)  how to convince lower-level managers and employees that they are empowered. 
A)  how to keep empowered employees from making lots of stupid decisions. 
B)  establishing a collegial,collaborative culture so that decisions can be made by gaining a quick consensus on what to do and when to do it. 
C)  how to avoid de-motivating employees (because empowered employees are expected to take responsibility for their actions and decisions). 
D)  how to exercise control over the actions and decisions of empowered employees so that the business is not put at risk while trying to capture the benefits of empowerment. 
E)  how to convince lower-level managers and employees that they are empowered.

Question 6

Good strategy execution requires which of the following?

Accepted Answer

A)  Putting those resources and capabilities into place,strengthening them as needed,and then modifying them as market conditions evolve 
B)  A universal business model to raise profits and lower costs 
C)  Strengthening the competitive environment arena outside the company's operating territory 
D)  A planned budget to protect the company's financial condition and eliminate wasteful use of cash 
E)  Passive pressures stemming from the dominance of outside market buyers 
A)  Putting those resources and capabilities into place,strengthening them as needed,and then modifying them as market conditions evolve 
B)  A universal business model to raise profits and lower costs 
C)  Strengthening the competitive environment arena outside the company's operating territory 
D)  A planned budget to protect the company's financial condition and eliminate wasteful use of cash 
E)  Passive pressures stemming from the dominance of outside market buyers

Question 7

Who is most likely to have strong strategy implementation capabilities?

Accepted Answer

A)  Michael has a talent for asking tough,incisive questions. 
B)  Samantha is often sympathetic to her team members' failures. 
C)  Carl can complete a job in half the time as his colleagues. 
D)  Lily prefers completing a task by herself. 
E)  Rodrigo advocates promoting qualified people from within the firm. 
A)  Michael has a talent for asking tough,incisive questions. 
B)  Samantha is often sympathetic to her team members' failures. 
C)  Carl can complete a job in half the time as his colleagues. 
D)  Lily prefers completing a task by herself. 
E)  Rodrigo advocates promoting qualified people from within the firm.

Question 8

Which of the following statements about outsourcing the performance of value chain activities to outside specialists is FALSE?

Accepted Answer

A)  Outsourcing support services often has the disadvantage of raising fixed and variable costs. 
B)  Outsourcing critics contend that shifting responsibility for performing value chain activities to outside specialists can hollow out a company's knowledge base and capabilities,leaving it at the mercy of outsider suppliers,and short of the resource strengths to be a master of its own destiny. 
C)  Outsourcing the performance of certain value chain activities to able supplierscan add to a company's arsenal of capabilities and contribute to better strategy execution. 
D)  The real debate surrounding outsourcing is not about whether too much outsourcing risks loss of control but about how to use outsourcing in a manner that produces greater competitiveness. 
E)  Outsourcing can enable a company to heighten its strategic focus and concentrate its full energies and resources on even more competently performing those value chain activities that are at the core of its strategy and for which it can create unique value. 
A)  Outsourcing support services often has the disadvantage of raising fixed and variable costs. 
B)  Outsourcing critics contend that shifting responsibility for performing value chain activities to outside specialists can hollow out a company's knowledge base and capabilities,leaving it at the mercy of outsider suppliers,and short of the resource strengths to be a master of its own destiny. 
C)  Outsourcing the performance of certain value chain activities to able supplierscan add to a company's arsenal of capabilities and contribute to better strategy execution. 
D)  The real debate surrounding outsourcing is not about whether too much outsourcing risks loss of control but about how to use outsourcing in a manner that produces greater competitiveness. 
E)  Outsourcing can enable a company to heighten its strategic focus and concentrate its full energies and resources on even more competently performing those value chain activities that are at the core of its strategy and for which it can create unique value.

Question 9

Which of the following does NOT exemplify a policy or procedure that facilitates strategy execution?

Accepted Answer

A)  A nonprofit agency that addresses only specific societal problems through public services 
B)  A toy manufacturing company that plans on reaching three different segments of the market 
C)  A fast food joint that has an onsite kindergarten and provides afterschool programs for its employees' children 
D)  A sporting goods seller that monitors consumers' preferences for gear and accessories on its blog 
E)  A bedding linen manufacturing company that recycles its water to cool the machines in the factory 
A)  A nonprofit agency that addresses only specific societal problems through public services 
B)  A toy manufacturing company that plans on reaching three different segments of the market 
C)  A fast food joint that has an onsite kindergarten and provides afterschool programs for its employees' children 
D)  A sporting goods seller that monitors consumers' preferences for gear and accessories on its blog 
E)  A bedding linen manufacturing company that recycles its water to cool the machines in the factory

Question 10

Recruiting and retaining capable employees is:

Accepted Answer

A)  usually much more important to good strategy execution than is assembling a capable top-management team. 
B)  important because the quality of an organization's people is always an essential ingredient of successful strategy execution. 
C)  more important during periods of rapid growth than during periods of crisis and attempted turnarounds. 
D)  an important organization-building element,particularly when it comes to transforming a competence into a core competence or distinctive competence. 
E)  easily the most critical aspect in building competitively valuable core competencies and capabilities. 
A)  usually much more important to good strategy execution than is assembling a capable top-management team. 
B)  important because the quality of an organization's people is always an essential ingredient of successful strategy execution. 
C)  more important during periods of rapid growth than during periods of crisis and attempted turnarounds. 
D)  an important organization-building element,particularly when it comes to transforming a competence into a core competence or distinctive competence. 
E)  easily the most critical aspect in building competitively valuable core competencies and capabilities.

Question 11

The principal managerial components of the strategy execution process include:

Accepted Answer

A)  deciding how much to spend on employee training. 
B)  instituting policies and procedures that facilitate strategy execution and tying rewards and incentives to the achievement of strategic and financial targets. 
C)  doing an effective job of empowering employees. 
D)  revamping the value chain in a manner calculated to maximize operating efficiency. 
E)  selecting a capable top management team. 
A)  deciding how much to spend on employee training. 
B)  instituting policies and procedures that facilitate strategy execution and tying rewards and incentives to the achievement of strategic and financial targets. 
C)  doing an effective job of empowering employees. 
D)  revamping the value chain in a manner calculated to maximize operating efficiency. 
E)  selecting a capable top management team.

Question 12

The approach to identifying the items needed to be placed on management's action agenda of the strategy execution plan always involves:

Accepted Answer

A)  generalized activities that will underscore the particulars of the company's situation. 
B)  some definitive managerial recipe for successful strategy execution that works for all company situations and all types of strategies,or that works for all types of managers. 
C)  a set of unimportant managerial tasks that must be covered no matter what the circumstances. 
D)  senior management's judgment about how to proceed in light of prevailing circumstances. 
E)  a high-end differentiation strategy for proficient implementation and execution. 
A)  generalized activities that will underscore the particulars of the company's situation. 
B)  some definitive managerial recipe for successful strategy execution that works for all company situations and all types of strategies,or that works for all types of managers. 
C)  a set of unimportant managerial tasks that must be covered no matter what the circumstances. 
D)  senior management's judgment about how to proceed in light of prevailing circumstances. 
E)  a high-end differentiation strategy for proficient implementation and execution.

Question 13

When are capabilities-motivated acquisitions essential?

Accepted Answer

A)  When industry conditions,like technology advances are central to growth and rivalry is intense 
B)  When first-mover advantages for products or services can be added to the portfolio lineup 
C)  When the acquired firm can be purchased at a discount due to underperformance 
D)  When a market opportunity can slip by faster than a needed capability can be created internally 
E)  When the capabilities involve tacit knowledge and complex routines 
A)  When industry conditions,like technology advances are central to growth and rivalry is intense 
B)  When first-mover advantages for products or services can be added to the portfolio lineup 
C)  When the acquired firm can be purchased at a discount due to underperformance 
D)  When a market opportunity can slip by faster than a needed capability can be created internally 
E)  When the capabilities involve tacit knowledge and complex routines

Question 14

When an organization is referred to as a line and staff structure or a flat structure,it is normally considered:

Accepted Answer

A)  a simple structure. 
B)  a functional structure. 
C)  a matrix structure. 
D)  a multidivisional structure. 
E)  a departmental structure. 
A)  a simple structure. 
B)  a functional structure. 
C)  a matrix structure. 
D)  a multidivisional structure. 
E)  a departmental structure.

Question 15

Management's handling of the strategy implementation/execution process can be considered successful:

Accepted Answer

A)  when the internal organization develops two or more core competencies in performing value chain activities. 
B)  if and when the company meets or beats its performance targets and shows good progress in achieving its strategic vision for the company. 
C)  if the company's culture is strong and strategy-supportive. 
D)  if management is able to marshal adequate resources to put the strategy in place within 6 to 12 months. 
E)  if managers and employees express strong support for the company's strategy and long-term direction. 
A)  when the internal organization develops two or more core competencies in performing value chain activities. 
B)  if and when the company meets or beats its performance targets and shows good progress in achieving its strategic vision for the company. 
C)  if the company's culture is strong and strategy-supportive. 
D)  if management is able to marshal adequate resources to put the strategy in place within 6 to 12 months. 
E)  if managers and employees express strong support for the company's strategy and long-term direction.

Question 16

Which of the following does NOT describe the standard type of structural form of organization?

Accepted Answer

A)  A functional structure where function is a major step in the firm's value chain 
B)  A simple structure where all major decisions and oversight are a duty of the central executive 
C)  A multidivisional structure where each division of the firm is an independent profit center 
D)  A matrix structure where there are two or more divisions organized to enhance cross-communication 
E)  A network structure where independent organizations are involved in a common undertaking 
A)  A functional structure where function is a major step in the firm's value chain 
B)  A simple structure where all major decisions and oversight are a duty of the central executive 
C)  A multidivisional structure where each division of the firm is an independent profit center 
D)  A matrix structure where there are two or more divisions organized to enhance cross-communication 
E)  A network structure where independent organizations are involved in a common undertaking

Question 17

Accessing capabilities through an external source can be accomplished through all of these EXCEPT:

Accepted Answer

A)  outsourcing,but depends on what can safely be delegated to outside suppliers. 
B)  joint ventures,which depend on how well the partners will work together. 
C)  strategic alliances,which should be selected as much for management style,culture,and goals as for their resources and capabilities. 
D)  learning-based collaborative partnerships for the purpose of learning how the partner does things,internalizing its methods,and thereby acquiring its capabilities. 
E)  promoting qualified people with the right know-how in a timely and cost-effective manner. 
A)  outsourcing,but depends on what can safely be delegated to outside suppliers. 
B)  joint ventures,which depend on how well the partners will work together. 
C)  strategic alliances,which should be selected as much for management style,culture,and goals as for their resources and capabilities. 
D)  learning-based collaborative partnerships for the purpose of learning how the partner does things,internalizing its methods,and thereby acquiring its capabilities. 
E)  promoting qualified people with the right know-how in a timely and cost-effective manner.

Question 18

Which of the following is TRUE of the capability building process?

Accepted Answer

A)  It requires two things: (1)developing the ability to do something,however imperfectly or inefficiently,and (2)molding these efforts into an organizational ability and as experience grows and personnel perform the activity consistently well and at an acceptable cost,it is transformed into a tried-and-true competence and as they continue to polish and refine their know-how into further improvements,they then create a real competitive capability. 
B)  It entails (1)deciding which value chain activities to perform internally and which ones to outsource;and (2)deciding how much authority to centralize at the top and how much to delegate to down-the-line managers and employees. 
C)  It is essential (1)when the company does not have the ability to create the needed capability internally (perhaps because it is too far afield from its existing capabilities),and (2)when industry conditions,technology,or competitors are moving at such a rapid clip that time is of the essence. 
D)  It involves (1)staffing the organization with people capable of executing the strategy well,(2)developing the resources and building the organizational capabilities needed for successful strategy execution,and (3)creating an organizational structure supportive of the strategy execution process. 
E)  It must (1)supplement the design with appropriate coordinating mechanisms,and (2)institute whatever networking and communications arrangements are necessary to support effective execution of the firm's strategy. 
A)  It requires two things: (1)developing the ability to do something,however imperfectly or inefficiently,and (2)molding these efforts into an organizational ability and as experience grows and personnel perform the activity consistently well and at an acceptable cost,it is transformed into a tried-and-true competence and as they continue to polish and refine their know-how into further improvements,they then create a real competitive capability. 
B)  It entails (1)deciding which value chain activities to perform internally and which ones to outsource;and (2)deciding how much authority to centralize at the top and how much to delegate to down-the-line managers and employees. 
C)  It is essential (1)when the company does not have the ability to create the needed capability internally (perhaps because it is too far afield from its existing capabilities),and (2)when industry conditions,technology,or competitors are moving at such a rapid clip that time is of the essence. 
D)  It involves (1)staffing the organization with people capable of executing the strategy well,(2)developing the resources and building the organizational capabilities needed for successful strategy execution,and (3)creating an organizational structure supportive of the strategy execution process. 
E)  It must (1)supplement the design with appropriate coordinating mechanisms,and (2)institute whatever networking and communications arrangements are necessary to support effective execution of the firm's strategy.

Question 19

When a company uses outsourcing to zero in on even better performance of those truly strategy-critical activities where its expertise is most needed,then it may also be able to:

Accepted Answer

A)  create a values-based corporate culture that excels in product innovation. 
B)  decrease internal bureaucracies,flatten its organizational structure,and shorten the time it takes to respond to changing market conditions. 
C)  devote more resources to its social responsibility strategy,better empower employees,and reduce employee turnover. 
D)  better police compliance with ethical standards,lower overall operating costs,and create two or more distinctive competencies. 
E)  reduce the potential for information overload and improve the quality of decision making in each domain. 
A)  create a values-based corporate culture that excels in product innovation. 
B)  decrease internal bureaucracies,flatten its organizational structure,and shorten the time it takes to respond to changing market conditions. 
C)  devote more resources to its social responsibility strategy,better empower employees,and reduce employee turnover. 
D)  better police compliance with ethical standards,lower overall operating costs,and create two or more distinctive competencies. 
E)  reduce the potential for information overload and improve the quality of decision making in each domain.

Question 20

Identify and discuss the basic tenets,the chief advantages,and the chief disadvantages of decentralized organizational structures.

Accepted Answer

Basic tenets of decentralized organizati

What is the advantage of acquiring capabilities through merger and acquisition?

Identify and briefly discuss the four types of organizational structures that can be aligned with strategy execution.

Delegating greater authority to subordinate managers and employees:

Which of the following is generally NOT among the common practices that companies use to staff jobs with talented people,particularly if intellectual capital greatly aids good strategy execution?

The organizing challenge of a decentralized structure that stresses employee empowerment is:

Good strategy execution requires which of the following?

Who is most likely to have strong strategy implementation capabilities?

Which of the following statements about outsourcing the performance of value chain activities to outside specialists is FALSE?

Which of the following does NOT exemplify a policy or procedure that facilitates strategy execution?

Recruiting and retaining capable employees is:

The principal managerial components of the strategy execution process include:

The approach to identifying the items needed to be placed on management's action agenda of the strategy execution plan always involves:

When are capabilities-motivated acquisitions essential?

When an organization is referred to as a line and staff structure or a flat structure,it is normally considered:

Management's handling of the strategy implementation/execution process can be considered successful:

Which of the following does NOT describe the standard type of structural form of organization?

Accessing capabilities through an external source can be accomplished through all of these EXCEPT:

Which of the following is TRUE of the capability building process?

When a company uses outsourcing to zero in on even better performance of those truly strategy-critical activities where its expertise is most needed,then it may also be able to:

Identify and discuss the basic tenets,the chief advantages,and the chief disadvantages of decentralized organizational structures.

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

Managing Internal Operations

Corporate Culture and Leadership

Filters

Exam 10: Building an Organization Capable of Good Strategy Execution

What is the advantage of acquiring capabilities through merger and acquisition?

Identify and briefly discuss the four types of organizational structures that can be aligned with strategy execution.

Delegating greater authority to subordinate managers and employees:

Which of the following is generally NOT among the common practices that companies use to staff jobs with talented people,particularly if intellectual capital greatly aids good strategy execution?

The organizing challenge of a decentralized structure that stresses employee empowerment is:

Good strategy execution requires which of the following?

Who is most likely to have strong strategy implementation capabilities?

Which of the following statements about outsourcing the performance of value chain activities to outside specialists is FALSE?

Which of the following does NOT exemplify a policy or procedure that facilitates strategy execution?

Recruiting and retaining capable employees is:

The principal managerial components of the strategy execution process include:

The approach to identifying the items needed to be placed on management's action agenda of the strategy execution plan always involves:

When are capabilities-motivated acquisitions essential?

When an organization is referred to as a line and staff structure or a flat structure,it is normally considered:

Management's handling of the strategy implementation/execution process can be considered successful:

Which of the following does NOT describe the standard type of structural form of organization?

Accessing capabilities through an external source can be accomplished through all of these EXCEPT:

Which of the following is TRUE of the capability building process?

When a company uses outsourcing to zero in on even better performance of those truly strategy-critical activities where its expertise is most needed,then it may also be able to:

Identify and discuss the basic tenets,the chief advantages,and the chief disadvantages of decentralized organizational structures.

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

Managing Internal Operations

Corporate Culture and Leadership

Filters