Question 1

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 2

Which of the following is a disadvantage of a centralized organizational structure?

Accepted Answer

A)  lengthening response times and discouraging lower-level managers and rank-and-file employees from exercising initiative 
B)  losing top-level management control 
C)  putting too much decision-making authority in the hands of lower-level company personnel 
D)  making it hard to fix accountability when things do not go well and putting the organization at risk when bad decisions are made 
E)  impeding cross-unit coordination and the capture of strategic fits 
A)  lengthening response times and discouraging lower-level managers and rank-and-file employees from exercising initiative 
B)  losing top-level management control 
C)  putting too much decision-making authority in the hands of lower-level company personnel 
D)  making it hard to fix accountability when things do not go well and putting the organization at risk when bad decisions are made 
E)  impeding cross-unit coordination and the capture of strategic fits

Question 3

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.

Question 4

A multidivisional structure consists of a

Accepted Answer

A)  centralized structure combining corporate overhead with support functions. 
B)  decentralized structure with of a set of operating divisions organized along business, product, customer groups or geographic lines, and a central corporate headquarters that allocates resources, provides support functions, and monitors divisional activities. 
C)  decentralized structure or divisional structure that monitors performance and allocates funding to those divisions wanting to grow. 
D)  decentralized format of senior executives with large overhead staff to manage and control all the business lines. 
E)  centralized structure that controls the coordination across the more diversified and complex functions within the organization. 
A)  centralized structure combining corporate overhead with support functions. 
B)  decentralized structure with of a set of operating divisions organized along business, product, customer groups or geographic lines, and a central corporate headquarters that allocates resources, provides support functions, and monitors divisional activities. 
C)  decentralized structure or divisional structure that monitors performance and allocates funding to those divisions wanting to grow. 
D)  decentralized format of senior executives with large overhead staff to manage and control all the business lines. 
E)  centralized structure that controls the coordination across the more diversified and complex functions within the organization.

Question 5

In formulating an action agenda to implement and execute a new or different strategy, the place for managers to begin is with

Accepted Answer

A)  the task of revising and enhancing the company's core competencies. 
B)  choosing which leadership style to employ in trying to carry out the strategy successfully. 
C)  evaluating whether existing policies and procedures are adequately strategy-supportive. 
D)  allocating more resources to strategy-critical parts of the business. 
E)  a probing assessment of what the organization must do differently and better to carry out the strategy successfully. 
A)  the task of revising and enhancing the company's core competencies. 
B)  choosing which leadership style to employ in trying to carry out the strategy successfully. 
C)  evaluating whether existing policies and procedures are adequately strategy-supportive. 
D)  allocating more resources to strategy-critical parts of the business. 
E)  a probing assessment of what the organization must do differently and better to carry out the strategy successfully.

Question 6

Which of the following is NOT a characteristic of a highly centralized organizational structure?

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 7

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.

Question 8

Which of the following is unlikely to be a primary building block in a company's organizational structure

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 9

The managerial approach to implementing and executing a strategy should always

Accepted Answer

A)  be customized to fit the particulars of a company's situation. 
B)  involve only minor changes to the existing strategy. 
C)  require radical strategy changes for successful execution. 
D)  rely on the active support of frontline employees. 
E)  focus on market conditions and the company's resources and capabilities. 
A)  be customized to fit the particulars of a company's situation. 
B)  involve only minor changes to the existing strategy. 
C)  require radical strategy changes for successful execution. 
D)  rely on the active support of frontline employees. 
E)  focus on market conditions and the company's resources and capabilities.

Question 10

Coordinating the work efforts of internal organization units is best accomplished by

Accepted Answer

A)  establishing a corporate culture where teamwork is a core value and decisions are made by general consensus among team leaders in the affected work units. 
B)  having closely related activities report to a single executive who has the authority and organizational clout to coordinate, integrate, and arrange for the cooperation of units under their supervision. 
C)  having the heads of support activities report to the heads of primary, strategy-critical activities. 
D)  establishing monetary incentives that reward people for being cooperative team players. 
E)  having frequent meetings among the heads of closely related activities and work units to establish mutually agreeable deadlines. 
A)  establishing a corporate culture where teamwork is a core value and decisions are made by general consensus among team leaders in the affected work units. 
B)  having closely related activities report to a single executive who has the authority and organizational clout to coordinate, integrate, and arrange for the cooperation of units under their supervision. 
C)  having the heads of support activities report to the heads of primary, strategy-critical activities. 
D)  establishing monetary incentives that reward people for being cooperative team players. 
E)  having frequent meetings among the heads of closely related activities and work units to establish mutually agreeable deadlines.

Question 11

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 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 a firm.

Question 12

A company must do all of the following to match structure to strategy EXCEPT

Accepted Answer

A)  choose a basic organizational design and modify it to fit the company's particular business. 
B)  supplement the design structure with coordinating mechanisms. 
C)  institute networking and communication arrangements to support strategy execution. 
D)  set up "ideal" organizational arrangements despite having to disturb existing relationships. 
E)  knit the efforts of outsourced groups together. 
A)  choose a basic organizational design and modify it to fit the company's particular business. 
B)  supplement the design structure with coordinating mechanisms. 
C)  institute networking and communication arrangements to support strategy execution. 
D)  set up "ideal" organizational arrangements despite having to disturb existing relationships. 
E)  knit the efforts of outsourced groups together.

Question 13

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

Accepted Answer

Basic tenets of centralized organization

Question 14

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 15

Core competencies and competitive capabilities are usually

Accepted Answer

A)  lodged in the narrow skills and specialized work efforts of a single department, as opposed to the combined expertise and capabilities of specialists scattered across several departments. 
B)  observed to stem from collaborative efforts with strategic allies. 
C)  bundles of skills and know-how that most often grow out of the collaborative efforts of cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain. 
D)  found to result in competitive advantage when they involve highly specific technologies and are grounded in a company's own deep technical expertise. 
E)  built rapidly, usually in conjunction with important product innovations. 
A)  lodged in the narrow skills and specialized work efforts of a single department, as opposed to the combined expertise and capabilities of specialists scattered across several departments. 
B)  observed to stem from collaborative efforts with strategic allies. 
C)  bundles of skills and know-how that most often grow out of the collaborative efforts of cross-functional work groups and departments performing complementary activities at different locations in a firm's value chain. 
D)  found to result in competitive advantage when they involve highly specific technologies and are grounded in a company's own deep technical expertise. 
E)  built rapidly, usually in conjunction with important product innovations.

Question 16

Which of the following is one of the first steps to take in launching the strategy execution process?

Accepted Answer

A)  Ensure all requirements of the value chain are fulfilled. 
B)  Form a mission statement as a basis for managers to achieve organizational objectives. 
C)  Go on the offensive by employing moves to make its product offering more distinctive and appealing to buyers. 
D)  Put together a talented management team with the right mix of experiences, skills, and abilities to get things done. 
E)  Strive to be more profitable than rivals and aim for a competitive edge based on bigger profit margins. 
A)  Ensure all requirements of the value chain are fulfilled. 
B)  Form a mission statement as a basis for managers to achieve organizational objectives. 
C)  Go on the offensive by employing moves to make its product offering more distinctive and appealing to buyers. 
D)  Put together a talented management team with the right mix of experiences, skills, and abilities to get things done. 
E)  Strive to be more profitable than rivals and aim for a competitive edge based on bigger profit margins.

Question 17

If management is to match a company's organization structure to its strategy in an effective way, then it is essential

Accepted Answer

A)  that company personnel be empowered to make both strategic decisions and operating decisions. 
B)  for strategy-critical value-chain activities to be the main building blocks on the organization chart. 
C)  that value chain activities be deliberately organized so as to produce maximum strategic fit. 
D)  to define the jobs of company personnel in terms of the functions to be performed rather than in terms of the results to be achieved. 
E)  for the company to be organized around cross-functional teams rather than around functional specialties and functional departments. 
A)  that company personnel be empowered to make both strategic decisions and operating decisions. 
B)  for strategy-critical value-chain activities to be the main building blocks on the organization chart. 
C)  that value chain activities be deliberately organized so as to produce maximum strategic fit. 
D)  to define the jobs of company personnel in terms of the functions to be performed rather than in terms of the results to be achieved. 
E)  for the company to be organized around cross-functional teams rather than around functional specialties and functional departments.

Question 18

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 19

In companies where intellectual capital is crucial to good strategy execution, which of the following is generally NOT among the practices companies use to establish a talented knowledge base?

Accepted Answer

A)  providing promising employees with challenging, interesting, and skill-stretching assignments and also rotating them through jobs that not only have great content but also span functional and geographic boundaries 
B)  providing employees promotions, salary increases, performance bonuses, stock options, and other perks 
C)  coaching underperformers and benchwarmers to improve their skills and capabilities 
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)  providing promising employees with challenging, interesting, and skill-stretching assignments and also rotating them through jobs that not only have great content but also span functional and geographic boundaries 
B)  providing employees promotions, salary increases, performance bonuses, stock options, and other perks 
C)  coaching underperformers and benchwarmers to improve their skills and capabilities 
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 20

Building an organization capable of good strategy execution entails

Accepted Answer

A)  investing heavily in employee training, using an empowered organization design and organization structure in order to maximize labor productivity, and employing effective incentive compensation systems. 
B)  staffing the organization, building core competencies and competitive capabilities, and structuring the organization and work effort. 
C)  empowering employees, maximizing internal operating efficiency, and optimizing core competencies. 
D)  decentralizing authority for performing strategy-critical value chain activities, establishing at least two distinctive competencies, and hiring talented employees. 
E)  centralizing authority in the hands of a chief strategy implementer so as to create the leadership authority for driving implementation forward at a rapid pace. 
A)  investing heavily in employee training, using an empowered organization design and organization structure in order to maximize labor productivity, and employing effective incentive compensation systems. 
B)  staffing the organization, building core competencies and competitive capabilities, and structuring the organization and work effort. 
C)  empowering employees, maximizing internal operating efficiency, and optimizing core competencies. 
D)  decentralizing authority for performing strategy-critical value chain activities, establishing at least two distinctive competencies, and hiring talented employees. 
E)  centralizing authority in the hands of a chief strategy implementer so as to create the leadership authority for driving implementation forward at a rapid pace.

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

Which of the following is a disadvantage of a centralized organizational structure?

The two best signs of good strategy execution are whether

A multidivisional structure consists of a

In formulating an action agenda to implement and execute a new or different strategy, the place for managers to begin is with

Which of the following is NOT a characteristic of a highly centralized organizational structure?

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

Which of the following is unlikely to be a primary building block in a company's organizational structure

The managerial approach to implementing and executing a strategy should always

Coordinating the work efforts of internal organization units is best accomplished by

A dynamic capability is the

A company must do all of the following to match structure to strategy EXCEPT

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

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

Core competencies and competitive capabilities are usually

Which of the following is one of the first steps to take in launching the strategy execution process?

If management is to match a company's organization structure to its strategy in an effective way, then it is essential

Good strategy execution requires which of the following?

In companies where intellectual capital is crucial to good strategy execution, which of the following is generally NOT among the practices companies use to establish a talented knowledge base?

Building an organization capable of good strategy execution entails

What Is Strategy and Why Is It Important

Leading the Process of Crafting and Executing Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources and Competitive Position

The Five Generic Competitive Strategies: Which One to Employ

Supplementing the Chosen Competitive Strategy: Other Important Business Strategy Choices

Strategies for Competing in Foreign Markets

Diversification: Strategies for Managing a Group of Businesses

Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

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Exam 10: Building an Organization Capable of Good Strategy Execution

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

Which of the following is a disadvantage of a centralized organizational structure?

The two best signs of good strategy execution are whether

A multidivisional structure consists of a

In formulating an action agenda to implement and execute a new or different strategy, the place for managers to begin is with

Which of the following is NOT a characteristic of a highly centralized organizational structure?

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

Which of the following is unlikely to be a primary building block in a company's organizational structure

The managerial approach to implementing and executing a strategy should always

Coordinating the work efforts of internal organization units is best accomplished by

A dynamic capability is the

A company must do all of the following to match structure to strategy EXCEPT

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

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

Core competencies and competitive capabilities are usually

Which of the following is one of the first steps to take in launching the strategy execution process?

If management is to match a company's organization structure to its strategy in an effective way, then it is essential

Good strategy execution requires which of the following?

In companies where intellectual capital is crucial to good strategy execution, which of the following is generally NOT among the practices companies use to establish a talented knowledge base?

Building an organization capable of good strategy execution entails

What Is Strategy and Why Is It Important

Leading the Process of Crafting and Executing Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources and Competitive Position

The Five Generic Competitive Strategies: Which One to Employ

Supplementing the Chosen Competitive Strategy: Other Important Business Strategy Choices

Strategies for Competing in Foreign Markets

Diversification: Strategies for Managing a Group of Businesses

Ethical Business Strategies, Social Responsibility, and Environmental Sustainabil ITY

Managing Internal Operations: Actions That Promote Good Strategy Execution

Corporate Culture and Leadership: Keys to Good Strategy Execution

Filters