Question 1

Changing a problem culture

Accepted Answer

A)  is one of the toughest managerial tasks because of the tendency of company personnel to cling to familiar practices and ways of doing things. 
B)  is best done by instituting an aggressive program to train employees in the ways and beliefs of the new culture to be implanted. 
C)  is best done by selecting a team of key employees to lead the culture change effort. 
D)  requires writing a new statement of core values and describing in writing the kind of culture that is needed. 
E)  can be done quickly only if managers tie incentive compensation to exhibiting the desired new cultural behaviors and if managers visibly praise people who exhibit the desired new cultural traits. 
A)  is one of the toughest managerial tasks because of the tendency of company personnel to cling to familiar practices and ways of doing things. 
B)  is best done by instituting an aggressive program to train employees in the ways and beliefs of the new culture to be implanted. 
C)  is best done by selecting a team of key employees to lead the culture change effort. 
D)  requires writing a new statement of core values and describing in writing the kind of culture that is needed. 
E)  can be done quickly only if managers tie incentive compensation to exhibiting the desired new cultural behaviors and if managers visibly praise people who exhibit the desired new cultural traits.

Question 2

Which one of the following is not a tool that company managers can use to promote continuous improvement (operating excellence) in performing value chain activities?

Accepted Answer

A)  Variability reduction analysis in work processes 
B)  Six Sigma quality control techniques 
C)  Total quality management (TQM) 
D)  Business process reengineering 
E)  Adoption of standard industry techniques 
A)  Variability reduction analysis in work processes 
B)  Six Sigma quality control techniques 
C)  Total quality management (TQM) 
D)  Business process reengineering 
E)  Adoption of standard industry techniques

Question 3

Companies engaged in a single line of business utilize an organizational structure that may vary depending upon the strategy-critical activities and can be

Accepted Answer

A)  either a functional (departmental), multidivisional, or matrix organizational structure. 
B)  either a centralized, principal, or critical-path organizational structure. 
C)  either independent, consolidated, or hybrid profit centers. 
D)  hybrid functional organizations with a combination of decentralized and centralized decision making. 
E)  None of these. 
A)  either a functional (departmental), multidivisional, or matrix organizational structure. 
B)  either a centralized, principal, or critical-path organizational structure. 
C)  either independent, consolidated, or hybrid profit centers. 
D)  hybrid functional organizations with a combination of decentralized and centralized decision making. 
E)  None of these.

Question 4

In a highly centralized organizational structure,

Accepted Answer

A)  top executive retain authority for most strategic and operating decisions. 
B)  the thesis is that strict enforcement of detailed procedures backed by rigorous managerial oversight is the most reliable way to keep the daily execution of strategy on track. 
C)  tight control from the top 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, that they lack the knowledge and judgment to make wise decisions about how best to do their work. 
E)  All of these. 
A)  top executive retain authority for most strategic and operating decisions. 
B)  the thesis is that strict enforcement of detailed procedures backed by rigorous managerial oversight is the most reliable way to keep the daily execution of strategy on track. 
C)  tight control from the top 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, that they lack the knowledge and judgment to make wise decisions about how best to do their work. 
E)  All of these.

Question 5

Which of the following is not among the types of actions and initiatives undertaken by management in the strategy execution process?

Accepted Answer

A)  Building an organization capable of executing the strategy 
B)  Instituting policies and procedures that facilitate rather than impede strategy execution 
C)  Deciding which core competencies and value chain activities to leave as is and which ones to overhaul and improve 
D)  Pushing for continuous improvement in how value chain activities are performed 
E)  Tying rewards directly to the achievement of strategic and financial targets and to good strategy execution 
A)  Building an organization capable of executing the strategy 
B)  Instituting policies and procedures that facilitate rather than impede strategy execution 
C)  Deciding which core competencies and value chain activities to leave as is and which ones to overhaul and improve 
D)  Pushing for continuous improvement in how value chain activities are performed 
E)  Tying rewards directly to the achievement of strategic and financial targets and to good strategy execution

Question 6

A company's corporate culture is best defined and identified by

Accepted Answer

A)  the strategy and business model that a company has adopted. 
B)  the character of a company's internal work climate-as shaped by the company's core values, beliefs, and business principles. 
C)  its statement of core values and its code of ethics. 
D)  its internal politics. 
E)  the traditions that company executives are committed to maintaining. 
A)  the strategy and business model that a company has adopted. 
B)  the character of a company's internal work climate-as shaped by the company's core values, beliefs, and business principles. 
C)  its statement of core values and its code of ethics. 
D)  its internal politics. 
E)  the traditions that company executives are committed to maintaining.

Question 7

Executing strategy

Accepted Answer

A)  is primarily an operations-driven activity revolving around the management of people and business processes. 
B)  tests a manager's ability to direct organizational change and achieve continuous improvement in operations and business processes. 
C)  tests a manager's ability to create and nurture a strategy-supportive culture. 
D)  tests a manager's ability to consistently meet or beat performance targets. 
E)  All of these. 
A)  is primarily an operations-driven activity revolving around the management of people and business processes. 
B)  tests a manager's ability to direct organizational change and achieve continuous improvement in operations and business processes. 
C)  tests a manager's ability to create and nurture a strategy-supportive culture. 
D)  tests a manager's ability to consistently meet or beat performance targets. 
E)  All of these.

Question 8

Which of the following is not a sound guideline for designing a reward and incentive system that helps promote good strategy execution?

Accepted Answer

A)  The reward system must be administered with scrupulous objectivity and fairness. 
B)  The payoff for meeting or beating performance targets must be a major, not minor, piece of the total compensation package. 
C)  The incentive plan should extend to all managers and all employees, not just top management. 
D)  Ways must be found to reward deserving nonperformers who, for some reason, do not fare well under the incentive system. 
E)  Make sure that the performance targets each individual or team is expected to achieve involve outcomes that the individual or team can personally affect. 
A)  The reward system must be administered with scrupulous objectivity and fairness. 
B)  The payoff for meeting or beating performance targets must be a major, not minor, piece of the total compensation package. 
C)  The incentive plan should extend to all managers and all employees, not just top management. 
D)  Ways must be found to reward deserving nonperformers who, for some reason, do not fare well under the incentive system. 
E)  Make sure that the performance targets each individual or team is expected to achieve involve outcomes that the individual or team can personally affect.

Question 9

Recruiting and retaining capable employees

Accepted Answer

A)  is usually much more important to good strategy execution than is assembling a capable top management team. 
B)  is important because the quality of an organization's people is always an essential ingredient of successful strategy execution-knowledgeable, engaged employees are a company's best source of creative ideas for the nuts-and-bolts operating improvements that lead to operating excellence. 
C)  is more important during periods of rapid growth than during periods of crisis and attempted turnarounds. 
D)  is an important organization-building element, particularly when it comes to transforming a competence into a core competence or distinctive competence. 
E)  is easily the most critical aspect in building competitively valuable core competencies and capabilities. 
A)  is usually much more important to good strategy execution than is assembling a capable top management team. 
B)  is important because the quality of an organization's people is always an essential ingredient of successful strategy execution-knowledgeable, engaged employees are a company's best source of creative ideas for the nuts-and-bolts operating improvements that lead to operating excellence. 
C)  is more important during periods of rapid growth than during periods of crisis and attempted turnarounds. 
D)  is an important organization-building element, particularly when it comes to transforming a competence into a core competence or distinctive competence. 
E)  is easily the most critical aspect in building competitively valuable core competencies and capabilities.

Question 10

The big difference between business process reengineering and continuous improvement programs such as TQM or Six Sigma is that

Accepted Answer

A)  reengineering is a tool for installing process organization whereas TQM and Six Sigma concern defect-free production methods and delivering world-class customer service. 
B)  reengineering helps create core competencies whereas TQM and Six Sigma are tools for making a core competence stronger and more efficient. 
C)  reengineering is a tool for achieving onetime quantum improvements whereas TQM and Six Sigma programs aim at incremental progress improvement (striving for inch-by-inch gains again and again in a never-ending stream). 
D)  business process reengineering requires benchmarking whereas TQM and Six Sigma do not. 
E)  reengineering represents an effort to totally revamp a firm's value chain whereas TQM looks at incrementally improving the performance of two or three targeted value chain activities. 
A)  reengineering is a tool for installing process organization whereas TQM and Six Sigma concern defect-free production methods and delivering world-class customer service. 
B)  reengineering helps create core competencies whereas TQM and Six Sigma are tools for making a core competence stronger and more efficient. 
C)  reengineering is a tool for achieving onetime quantum improvements whereas TQM and Six Sigma programs aim at incremental progress improvement (striving for inch-by-inch gains again and again in a never-ending stream). 
D)  business process reengineering requires benchmarking whereas TQM and Six Sigma do not. 
E)  reengineering represents an effort to totally revamp a firm's value chain whereas TQM looks at incrementally improving the performance of two or three targeted value chain activities.

Question 11

Which of the following is generally not among the practices that companies use to staff jobs with the best people they can find?

Accepted Answer

A)  Careful screening and evaluation of job applicants 
B)  Rotating people through jobs that span functional and geographic boundaries 
C)  Weeding out the 20% lowest-performing employees each year 
D)  Striving to retain talented, high-performing employees via promotions, salary increases, and other perks 
E)  Coaching average performers to improve their skills and capabilities 
A)  Careful screening and evaluation of job applicants 
B)  Rotating people through jobs that span functional and geographic boundaries 
C)  Weeding out the 20% lowest-performing employees each year 
D)  Striving to retain talented, high-performing employees via promotions, salary increases, and other perks 
E)  Coaching average performers to improve their skills and capabilities

Question 12

A company's ability to marshal adequate resources in support of new strategic initiatives and steer them to the appropriate organizational units is important to the strategy execution process because

Accepted Answer

A)  changes in strategy often require resource reallocation and, therefore, directing the proper amounts of resources to strategy-critical organizational units because they need the proper funding to carry out their part of the strategic plan effectively and efficiently. 
B)  accurate budgets are the key to exercising tight financial controls over organizational units. 
C)  tight budget control is management's most powerful tool for first-rate strategy execution. 
D)  lean, carefully managed budgets protect the company's financial condition and eliminate wasteful use of cash. 
E)  lean, strictly enforced budgets are management's best and most used means of getting organizational units to exercise fiscal discipline. 
A)  changes in strategy often require resource reallocation and, therefore, directing the proper amounts of resources to strategy-critical organizational units because they need the proper funding to carry out their part of the strategic plan effectively and efficiently. 
B)  accurate budgets are the key to exercising tight financial controls over organizational units. 
C)  tight budget control is management's most powerful tool for first-rate strategy execution. 
D)  lean, carefully managed budgets protect the company's financial condition and eliminate wasteful use of cash. 
E)  lean, strictly enforced budgets are management's best and most used means of getting organizational units to exercise fiscal discipline.

Question 13

The primary building blocks within a company's organizational structure

Accepted Answer

A)  are almost always the departments performing such key administrative support functions as finance, accounting, information technology, human resource management, and R&D. 
B)  can include a functional or departmental structure that includes process, geographic, product, or customer groups performing one or more major processing steps along the value chain. 
C)  typically consist of an un-empowered employee department, an empowered employee department, teams of front-line supervisors, teams of middle-level managers and administrators, and the group of top-level executives that comprise the company's "executive suite." 
D)  usually consist of supply chain management, components manufacture, assembly, distribution, and administration. 
E)  usually consist of two divisions-a division charged with performing primary value chain activities and a division charged with performing support activities. 
A)  are almost always the departments performing such key administrative support functions as finance, accounting, information technology, human resource management, and R&D. 
B)  can include a functional or departmental structure that includes process, geographic, product, or customer groups performing one or more major processing steps along the value chain. 
C)  typically consist of an un-empowered employee department, an empowered employee department, teams of front-line supervisors, teams of middle-level managers and administrators, and the group of top-level executives that comprise the company's "executive suite." 
D)  usually consist of supply chain management, components manufacture, assembly, distribution, and administration. 
E)  usually consist of two divisions-a division charged with performing primary value chain activities and a division charged with performing support activities.

Question 14

Which of the following is not an example of an unhealthy company culture?

Accepted Answer

A)  Insular inwardly focused cultures 
B)  Change-resistant cultures 
C)  Unethical and greed-driven cultures 
D)  Politicized cultures 
E)  Hyper-adaptive cultures 
A)  Insular inwardly focused cultures 
B)  Change-resistant cultures 
C)  Unethical and greed-driven cultures 
D)  Politicized cultures 
E)  Hyper-adaptive cultures

Question 15

Proficient strategy execution requires executive managers to

Accepted Answer

A)  be current with events and closely monitor progress, put constructive pressure on the organization for operating excellence, and initiate corrective action when necessary to improve performance and achieve desired results. 
B)  understand all the tasks required to implement the strategy so as to ensure staff will not shortchange any strategic-critical activity. 
C)  attach great importance to gathering statistics that define every task effort and ensure limited variability. 
D)  initiate a problem-solving search to ensure obstacles to success are identified. 
E)  All of these. 
A)  be current with events and closely monitor progress, put constructive pressure on the organization for operating excellence, and initiate corrective action when necessary to improve performance and achieve desired results. 
B)  understand all the tasks required to implement the strategy so as to ensure staff will not shortchange any strategic-critical activity. 
C)  attach great importance to gathering statistics that define every task effort and ensure limited variability. 
D)  initiate a problem-solving search to ensure obstacles to success are identified. 
E)  All of these.

Question 16

Symbolic culture-changing actions are best represented by

Accepted Answer

A)  those actions top executives take to lead by example. 
B)  frugality if a low-cost strategy is being executed. 
C)  ensuring all management actions are "walking the talk." 
D)  ceremonial events to celebrate actions that exemplify the performance culture. 
E)  All of these. 
A)  those actions top executives take to lead by example. 
B)  frugality if a low-cost strategy is being executed. 
C)  ensuring all management actions are "walking the talk." 
D)  ceremonial events to celebrate actions that exemplify the performance culture. 
E)  All of these.

Question 17

Putting together a capable top management team

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 people who are good at figuring out what needs to be done and 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 people who are good at figuring out what needs to be done and 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 18

Six Sigma quality control

Accepted Answer

A)  is a strategy-implementer's best, most reliable tool for simultaneously achieving top-notch product quality and low manufacturing costs. 
B)  consists of a disciplined, statistics-based system aimed at producing not more than 2.5 defects per million iterations for a manufacturing or assembly process. 
C)  consists of a disciplined, statistics-based system aimed at producing not more than 3.4 defects per million iterations for any business process. 
D)  consists of a disciplined, statistics-based system aimed at fewer than 5.0 complaints per million customer transactions. 
E)  is a powerful tool for companies whose customers are very picky about product quality and product performance and who can't afford for the product they use to break down and require repairs. 
A)  is a strategy-implementer's best, most reliable tool for simultaneously achieving top-notch product quality and low manufacturing costs. 
B)  consists of a disciplined, statistics-based system aimed at producing not more than 2.5 defects per million iterations for a manufacturing or assembly process. 
C)  consists of a disciplined, statistics-based system aimed at producing not more than 3.4 defects per million iterations for any business process. 
D)  consists of a disciplined, statistics-based system aimed at fewer than 5.0 complaints per million customer transactions. 
E)  is a powerful tool for companies whose customers are very picky about product quality and product performance and who can't afford for the product they use to break down and require repairs.

Question 19

The place for management to begin in trying to change a problem culture is

Accepted Answer

A)  by selling company personnel on the need for a new set of behaviors and work practices. 
B)  by spending heavily on programs to train employees in the ways and beliefs of the new culture to be implanted. 
C)  to visibly praise and reward people who exhibit traits and behaviors that undermine the existing culture. 
D)  writing a new values statement and describing in highly motivating terms the kind of culture that is needed. 
E)  to institute incentive compensation programs that generously reward employees for adopting best practices. 
A)  by selling company personnel on the need for a new set of behaviors and work practices. 
B)  by spending heavily on programs to train employees in the ways and beliefs of the new culture to be implanted. 
C)  to visibly praise and reward people who exhibit traits and behaviors that undermine the existing culture. 
D)  writing a new values statement and describing in highly motivating terms the kind of culture that is needed. 
E)  to institute incentive compensation programs that generously reward employees for adopting best practices.

Question 20

Which of the following is not characteristic of a compensation and reward system designed to help drive successful strategy execution?

Accepted Answer

A)  Tying incentives to performance outcomes directly linked to good strategy execution and financial performance 
B)  Keeping the time between achieving the target performance outcome and the payment of the reward as short as possible 
C)  Making sure the performance targets that each individual or team is expected to achieve involve outcomes that the individual or team can personally affect 
D)  Generous rewards for people who turn in outstanding performances 
E)  A reward system that involves 50 percent nonmonetary rewards and a work environment that avoids placing pressure on managers and employees to perform at high levels 
A)  Tying incentives to performance outcomes directly linked to good strategy execution and financial performance 
B)  Keeping the time between achieving the target performance outcome and the payment of the reward as short as possible 
C)  Making sure the performance targets that each individual or team is expected to achieve involve outcomes that the individual or team can personally affect 
D)  Generous rewards for people who turn in outstanding performances 
E)  A reward system that involves 50 percent nonmonetary rewards and a work environment that avoids placing pressure on managers and employees to perform at high levels

Changing a problem culture

Which one of the following is not a tool that company managers can use to promote continuous improvement (operating excellence) in performing value chain activities?

Companies engaged in a single line of business utilize an organizational structure that may vary depending upon the strategy-critical activities and can be

In a highly centralized organizational structure,

Which of the following is not among the types of actions and initiatives undertaken by management in the strategy execution process?

A company's corporate culture is best defined and identified by

Executing strategy

Which of the following is not a sound guideline for designing a reward and incentive system that helps promote good strategy execution?

Recruiting and retaining capable employees

The big difference between business process reengineering and continuous improvement programs such as TQM or Six Sigma is that

Which of the following is generally not among the practices that companies use to staff jobs with the best people they can find?

A company's ability to marshal adequate resources in support of new strategic initiatives and steer them to the appropriate organizational units is important to the strategy execution process because

The primary building blocks within a company's organizational structure

Which of the following is not an example of an unhealthy company culture?

Proficient strategy execution requires executive managers to

Symbolic culture-changing actions are best represented by

Putting together a capable top management team

Six Sigma quality control

The place for management to begin in trying to change a problem culture is

Which of the following is not characteristic of a compensation and reward system designed to help drive successful strategy execution?

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources, Cost Position, and Competitiveness

The Five Generic Competitive Strategies

Supplementing the Chosen Competitive Strategy-Other Important Strategy Choices

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Strategy, Ethics, and Corporate Social Responsibility

Filters

Exam 10: Superior Strategy Execution-Another Path to Competitive Advantage

Changing a problem culture

Which one of the following is not a tool that company managers can use to promote continuous improvement (operating excellence) in performing value chain activities?

Companies engaged in a single line of business utilize an organizational structure that may vary depending upon the strategy-critical activities and can be

In a highly centralized organizational structure,

Which of the following is not among the types of actions and initiatives undertaken by management in the strategy execution process?

A company's corporate culture is best defined and identified by

Executing strategy

Which of the following is not a sound guideline for designing a reward and incentive system that helps promote good strategy execution?

Recruiting and retaining capable employees

The big difference between business process reengineering and continuous improvement programs such as TQM or Six Sigma is that

Which of the following is generally not among the practices that companies use to staff jobs with the best people they can find?

A company's ability to marshal adequate resources in support of new strategic initiatives and steer them to the appropriate organizational units is important to the strategy execution process because

The primary building blocks within a company's organizational structure

Which of the following is not an example of an unhealthy company culture?

Proficient strategy execution requires executive managers to

Symbolic culture-changing actions are best represented by

Putting together a capable top management team

Six Sigma quality control

The place for management to begin in trying to change a problem culture is

Which of the following is not characteristic of a compensation and reward system designed to help drive successful strategy execution?

What Is Strategy and Why Is It Important

Charting a Companys Direction: Vision and Mission, Objectives, and Strategy

Evaluating a Companys External Environment

Evaluating a Companys Resources, Cost Position, and Competitiveness

The Five Generic Competitive Strategies

Supplementing the Chosen Competitive Strategy-Other Important Strategy Choices

Strategies for Competing in International Markets

Corporate Strategy: Diversification and the Multibusiness Company

Strategy, Ethics, and Corporate Social Responsibility

Filters