Question 1

Executing strategy is a make-things-happen task that tests a manager's ability to perform all of the following EXCEPT

Accepted Answer

A)  manage the people, talents, and business processes of an operations-driven activities company. 
B)  direct organizational change and achieve continuous improvement in operations and business processes. 
C)  create and nurture a strategy-supportive culture. 
D)  meet or beat performance targets consistently. 
E)  focus on market conditions and the company's resources and capabilities. 
A)  manage the people, talents, and business processes of an operations-driven activities company. 
B)  direct organizational change and achieve continuous improvement in operations and business processes. 
C)  create and nurture a strategy-supportive culture. 
D)  meet or beat performance targets consistently. 
E)  focus on market conditions and the company's resources and capabilities.

Question 2

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

Accepted Answer

A)  increasing the size of the corporate bureaucracy 
B)  reducing a company's response times to changing external events 
C)  discouraging lower-level managers and rank-and-file employees from exercising initiative 
D)  putting the organization at risk if higher-level management is unaware of their actions 
E)  creating more layers of management 
A)  increasing the size of the corporate bureaucracy 
B)  reducing a company's response times to changing external events 
C)  discouraging lower-level managers and rank-and-file employees from exercising initiative 
D)  putting the organization at risk if higher-level management is unaware of their actions 
E)  creating more layers of management

Question 3

Encouraging employees to challenge existing ways of doing things, and to be creative and innovative in proposing better ways of operating, requires the company to create a supporting environment. In many firms, this means empowering their employees. 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 4

Sometimes a company can short-circuit the task of building an organizational capability in-house by

Accepted Answer

A)  putting in high-incentive bonuses to reward individual employees who train hard to develop the desired capability. 
B)  launching an extensive training effort to develop the capability quickly with newly hired employees. 
C)  either acquiring a company that has already developed the capability or else acquiring the desired capability through collaborative efforts with outsiders having the requisite skills, know-how, and expertise. 
D)  using benchmarking and the adoption of best practices to imitate a capability that rivals have already developed. 
E)  empowering a team of employees to develop the capability however they best see fit. 
A)  putting in high-incentive bonuses to reward individual employees who train hard to develop the desired capability. 
B)  launching an extensive training effort to develop the capability quickly with newly hired employees. 
C)  either acquiring a company that has already developed the capability or else acquiring the desired capability through collaborative efforts with outsiders having the requisite skills, know-how, and expertise. 
D)  using benchmarking and the adoption of best practices to imitate a capability that rivals have already developed. 
E)  empowering a team of employees to develop the capability however they best see fit.

Question 5

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 6

Outsourcing value chain activities has such strategy executing advantages as

Accepted Answer

A)  less internal bureaucracy, speedier decision making, and quicker 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)  less internal bureaucracy, speedier decision making, and quicker 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 7

Building an organization capable of good strategy execution entails

Accepted Answer

A)  staffing the organization, acquiring, developing, and strengthening key resources and competitive capabilities, and structuring the organization and work effort. 
B)  decentralizing authority for performing strategy-critical value chain activities, establishing at least two distinctive competencies, and hiring talented employees. 
C)  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. 
D)  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. 
E)  empowering employees, maximizing internal operating efficiency, and optimizing core competencies. 
A)  staffing the organization, acquiring, developing, and strengthening key resources and competitive capabilities, and structuring the organization and work effort. 
B)  decentralizing authority for performing strategy-critical value chain activities, establishing at least two distinctive competencies, and hiring talented employees. 
C)  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. 
D)  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. 
E)  empowering employees, maximizing internal operating efficiency, and optimizing core competencies.

Question 8

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

Accepted Answer

Basic tenets of decentralized organizati

Question 9

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 10

A disadvantage of the centralized organization is that it

Accepted Answer

A)  lengthens response times by those closest to the market conditions because they must seek approval for their actions. 
B)  does not encourage responsibility among lower-level managers and rank-and-file employees. 
C)  discourages lower-level managers and rank-and-file employees from exercising any initiative. 
D)  diverts authority away from those closest to, and most knowledgeable about, the situation for actions. 
E)  results in higher-level managers being unaware of actions taken by empowered personnel under their supervision. 
A)  lengthens response times by those closest to the market conditions because they must seek approval for their actions. 
B)  does not encourage responsibility among lower-level managers and rank-and-file employees. 
C)  discourages lower-level managers and rank-and-file employees from exercising any initiative. 
D)  diverts authority away from those closest to, and most knowledgeable about, the situation for actions. 
E)  results in higher-level managers being unaware of actions taken by empowered personnel under their supervision.

Question 11

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 12

What makes the managerial task of executing strategy so challenging and demanding is the

Accepted Answer

A)  trial-and-error experimentation that is required to come up with a workable organizational structure. 
B)  people-management skills required, the resistance to change that has to be overcome, and the perseverance necessary to get a variety of initiatives launched and kept moving along. 
C)  time and effort it takes to build core competencies. 
D)  time, training, and creative effort it takes to empower employees and teach them responsible decision making. 
E)  supervisory requirements associated with getting company personnel to do things the right way. 
A)  trial-and-error experimentation that is required to come up with a workable organizational structure. 
B)  people-management skills required, the resistance to change that has to be overcome, and the perseverance necessary to get a variety of initiatives launched and kept moving along. 
C)  time and effort it takes to build core competencies. 
D)  time, training, and creative effort it takes to empower employees and teach them responsible decision making. 
E)  supervisory requirements associated with getting company personnel to do things the right way.

Question 13

Critics of companies that use outsourcing contend that shifting responsibility for performing value chain activities to outside specialists

Accepted Answer

A)  has the disadvantage of raising fixed costs and reducing variable costs and makes it harder to develop distinctive competencies. 
B)  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)  results in less organizational flexibility and leads to sometimes exorbitant costs in collaborating with outside suppliers and strategic partners. 
D)  slows down decision making on key strategic issues because outside suppliers have to be consulted first. 
E)  lowers the morale of company employees, dampens a company's ability to implement best practices, and results in greater bureaucracy and slower decision making. 
A)  has the disadvantage of raising fixed costs and reducing variable costs and makes it harder to develop distinctive competencies. 
B)  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)  results in less organizational flexibility and leads to sometimes exorbitant costs in collaborating with outside suppliers and strategic partners. 
D)  slows down decision making on key strategic issues because outside suppliers have to be consulted first. 
E)  lowers the morale of company employees, dampens a company's ability to implement best practices, and results in greater bureaucracy and slower decision making.

Executing strategy is a make-things-happen task that tests a manager's ability to perform all of the following EXCEPT

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

Sometimes a company can short-circuit the task of building an organizational capability in-house by

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

Outsourcing value chain activities has such strategy executing advantages as

Building an organization capable of good strategy execution entails

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

The three components of building a capable organization are

A disadvantage of the centralized organization is that it

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

What makes the managerial task of executing strategy so challenging and demanding is the

Critics of companies that use outsourcing contend that shifting responsibility for performing value chain activities to outside specialists

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

Exam 10: Building an Organization Capable of Good Strategy Execution

Executing strategy is a make-things-happen task that tests a manager's ability to perform all of the following EXCEPT

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

Sometimes a company can short-circuit the task of building an organizational capability in-house by

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

Outsourcing value chain activities has such strategy executing advantages as

Building an organization capable of good strategy execution entails

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

The three components of building a capable organization are

A disadvantage of the centralized organization is that it

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

What makes the managerial task of executing strategy so challenging and demanding is the

Critics of companies that use outsourcing contend that shifting responsibility for performing value chain activities to outside specialists

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