Question 1

Which one of the following statements about recruiting and retaining capable employees is true?

Accepted Answer

A)  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. 
B)  Recruiting and retaining capable employees is an essential element of developing a distinctive competence. 
C)  Recruiting and retaining capable employees is closely tied to developing strong information capital capabilities. 
D)  It is very difficult for a company to competently execute its strategy and achieve operating excellence without a cadre of young managerial talent committed to staying with the company for at least a decade. 
E)  In many industries, adding to a company's talent base and building intellectual capital is more important than having a good situational fit between the company's strategy and its external environment. 
A)  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. 
B)  Recruiting and retaining capable employees is an essential element of developing a distinctive competence. 
C)  Recruiting and retaining capable employees is closely tied to developing strong information capital capabilities. 
D)  It is very difficult for a company to competently execute its strategy and achieve operating excellence without a cadre of young managerial talent committed to staying with the company for at least a decade. 
E)  In many industries, adding to a company's talent base and building intellectual capital is more important than having a good situational fit between the company's strategy and its external environment.

Question 2

Business process reengineering is a tool for

Accepted Answer

A)  expediting the redesign of existing products and shortening the design-to-market cycle. 
B)  pulling the pieces of strategy-critical activities out of different departments and unifying their performance in a single department or cross-functional work. 
C)  instituting total quality management. 
D)  making the most effective use of Six Sigma techniques. 
E)  rapid redesign of an organization's structure so as to rapidly create organizational competencies and capabilities. 
A)  expediting the redesign of existing products and shortening the design-to-market cycle. 
B)  pulling the pieces of strategy-critical activities out of different departments and unifying their performance in a single department or cross-functional work. 
C)  instituting total quality management. 
D)  making the most effective use of Six Sigma techniques. 
E)  rapid redesign of an organization's structure so as to rapidly create organizational competencies and capabilities.

Question 3

The principal managerial actions and initiatives undertaken in the strategy execution process include which of the following?

Accepted Answer

A)  Deciding how much to spend on employee training 
B)  Instituting policies and procedures that facilitate rather than impede effective strategy execution 
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 rather than impede effective strategy execution 
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 4

Companies with change-resistant cultures

Accepted Answer

A)  are typically opposed to performance-based incentive compensation and employee empowerment. 
B)  are prone to be preoccupied with avoiding risks, are unlikely to pursue bold actions to capture emerging opportunities, have a widespread aversion to continuous improvement in performing value chain activities, and prefer following rather than leading market change. 
C)  are often overly gung-ho about looking outside the company for best practices, new managerial approaches, and innovative ideas. 
D)  tend to be preoccupied with making sure the company has a safe, follow-the-industry-leader type of strategic vision and it avoids risky business strategies. 
E)  are typically run by amoral managers who have little regard for high ethical standards. 
A)  are typically opposed to performance-based incentive compensation and employee empowerment. 
B)  are prone to be preoccupied with avoiding risks, are unlikely to pursue bold actions to capture emerging opportunities, have a widespread aversion to continuous improvement in performing value chain activities, and prefer following rather than leading market change. 
C)  are often overly gung-ho about looking outside the company for best practices, new managerial approaches, and innovative ideas. 
D)  tend to be preoccupied with making sure the company has a safe, follow-the-industry-leader type of strategic vision and it avoids risky business strategies. 
E)  are typically run by amoral managers who have little regard for high ethical standards.

Question 5

The statistical thinking underlying Six Sigma is based on the following three principles:

Accepted Answer

A)  All activities can be controlled, employee empowerment is the best control tool, and 100% control is possible. 
B)  All work is a process, all processes have variability, and all processes create data that explains variability. 
C)  All work activities can be done accurately most of the time, empowered employees are necessary for effective control, and good statistical data is an empowered employee's best control tool. 
D)  All work is a statistically controllable process, 100% control is possible, and every well-controlled process is defect-free. 
E)  Most business processes are subject to control, Six Sigma can remove variability in how processes are performed, and most defects can be eliminated. 
A)  All activities can be controlled, employee empowerment is the best control tool, and 100% control is possible. 
B)  All work is a process, all processes have variability, and all processes create data that explains variability. 
C)  All work activities can be done accurately most of the time, empowered employees are necessary for effective control, and good statistical data is an empowered employee's best control tool. 
D)  All work is a statistically controllable process, 100% control is possible, and every well-controlled process is defect-free. 
E)  Most business processes are subject to control, Six Sigma can remove variability in how processes are performed, and most defects can be eliminated.

Question 6

The three components of building a capable organization are

Accepted Answer

A)  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. 
B)  hiring a capable top management team, empowering employees, and establishing a strategy-supportive corporate culture. 
C)  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. 
D)  staffing the organization, building core competencies and competitive capabilities, and structuring the organization and work effort. 
E)  optimizing the number of core competencies and competitive capabilities, making sure that all managers and employees are empowered, and maximizing internal operating efficiency. 
A)  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. 
B)  hiring a capable top management team, empowering employees, and establishing a strategy-supportive corporate culture. 
C)  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. 
D)  staffing the organization, building core competencies and competitive capabilities, and structuring the organization and work effort. 
E)  optimizing the number of core competencies and competitive capabilities, making sure that all managers and employees are empowered, and maximizing internal operating efficiency.

Question 7

The principal managerial actions and initiatives undertaken in the strategy execution process include which of the following?

Accepted Answer

A)  Building an organization with the capabilities, people, and structure needed for execution 
B)  Instituting policies and procedures that facilitate rather than impede effective strategy execution 
C)  Allocating ample resources to required activities 
D)  Tying rewards directly to achievement of performance objectives 
E)  All of these 
A)  Building an organization with the capabilities, people, and structure needed for execution 
B)  Instituting policies and procedures that facilitate rather than impede effective strategy execution 
C)  Allocating ample resources to required activities 
D)  Tying rewards directly to achievement of performance objectives 
E)  All of these

Question 8

Companies with politicized cultures

Accepted Answer

A)  are typically opposed to performance-based incentive compensation and employee empowerment. 
B)  tend to be preoccupied with making sure the company has a safe, follow-the-industry-leader type of strategic vision and it avoids risky business strategies. 
C)  tend to drive managers to consume a great deal of organizational energy and make the company's strategic agenda take a backseat role to political maneuvering. 
D)  are typically opposed to sound strategic initiatives designed to promote the well-being of specific functions. 
E)  are typically run by political managers who have little regard for high ethical standards. 
A)  are typically opposed to performance-based incentive compensation and employee empowerment. 
B)  tend to be preoccupied with making sure the company has a safe, follow-the-industry-leader type of strategic vision and it avoids risky business strategies. 
C)  tend to drive managers to consume a great deal of organizational energy and make the company's strategic agenda take a backseat role to political maneuvering. 
D)  are typically opposed to sound strategic initiatives designed to promote the well-being of specific functions. 
E)  are typically run by political managers who have little regard for high ethical standards.

Question 9

Six Sigma's DMADV process of define, measure, analyze, design and verify is a particularly good vehicle for

Accepted Answer

A)  improving performance when there are small variations in how well an activity is performed; if there are wide variations, then the Six Sigma DMVSI process has to be used. 
B)  achieving 100% control over how a task is performed and eliminating 100% of the variability in how a task is performed. 
C)  improving performance when there are wide variations in how well an activity is performed. 
D)  developing new processes or products at Six Sigma quality levels. 
E)  improving customer satisfaction whereas Six Sigma DMADV is used to improve manufacturing processes. 
A)  improving performance when there are small variations in how well an activity is performed; if there are wide variations, then the Six Sigma DMVSI process has to be used. 
B)  achieving 100% control over how a task is performed and eliminating 100% of the variability in how a task is performed. 
C)  improving performance when there are wide variations in how well an activity is performed. 
D)  developing new processes or products at Six Sigma quality levels. 
E)  improving customer satisfaction whereas Six Sigma DMADV is used to improve manufacturing processes.

Question 10

MBWA refers to

Accepted Answer

A)  modifying businesses with action. 
B)  a mission, balanced scorecard, and weighted assessment. 
C)  the managerial practice of making regular visits to field operations and talking with many people at many different levels. 
D)  the balanced scorecard perspectives of a company's strategy map. 
E)  managing businesses with authority. 
A)  modifying businesses with action. 
B)  a mission, balanced scorecard, and weighted assessment. 
C)  the managerial practice of making regular visits to field operations and talking with many people at many different levels. 
D)  the balanced scorecard perspectives of a company's strategy map. 
E)  managing businesses with authority.

Question 11

Which one of the following is not a benefit of prescribing policies and operating procedures to aid management's task of implementing strategy?

Accepted Answer

A)  Painting a set of white lines that provides boundaries for the independent actions of empowered personnel 
B)  Providing top-down guidance to operating managers, supervisory personnel, and employees regarding how things need to be done 
C)  Promoting the creation of a work climate that facilitates good strategy execution 
D)  Helping build employee commitment to adopting best practices and using the tools of TQM and Six Sigma 
E)  Helping enforce consistency in how particular activities are performed 
A)  Painting a set of white lines that provides boundaries for the independent actions of empowered personnel 
B)  Providing top-down guidance to operating managers, supervisory personnel, and employees regarding how things need to be done 
C)  Promoting the creation of a work climate that facilitates good strategy execution 
D)  Helping build employee commitment to adopting best practices and using the tools of TQM and Six Sigma 
E)  Helping enforce consistency in how particular activities are performed

Question 12

Total quality management (TQM)

Accepted Answer

A)  is a philosophy of managing a set of business practices that emphasizes continuous improvement in all phases of operations, 100% accuracy in performing tasks, involvement and empowerment of employees at all levels, team-based work design, benchmarking, and total customer satisfaction. 
B)  is a valuable tool for helping company managers identify what the best practice is for performing a particular activity. 
C)  works best when used in conjunction with Six Sigma quality control techniques. 
D)  is an excellent tool for reengineering business processes and making quantum gains in the efficiency and effectiveness with which the processes are performed. 
E)  is a philosophy of doing things that aims at mistake-free management of a company's entire business. 
A)  is a philosophy of managing a set of business practices that emphasizes continuous improvement in all phases of operations, 100% accuracy in performing tasks, involvement and empowerment of employees at all levels, team-based work design, benchmarking, and total customer satisfaction. 
B)  is a valuable tool for helping company managers identify what the best practice is for performing a particular activity. 
C)  works best when used in conjunction with Six Sigma quality control techniques. 
D)  is an excellent tool for reengineering business processes and making quantum gains in the efficiency and effectiveness with which the processes are performed. 
E)  is a philosophy of doing things that aims at mistake-free management of a company's entire business.

Question 13

A well-designed reward system

Accepted Answer

A)  is focused on "what to achieve" to be rewarded as opposed to "what to do" and is management's most powerful tool for gaining employee commitment to superior strategy execution. 
B)  should be free of elements that induce stress, anxiety, tension, pressure to perform, and job insecurity. 
C)  puts the primary emphasis on denying rewards to those who fail to perform tasks in the prescribed fashion. 
D)  emphasizes weeding out employees who are consistently low performers. 
E)  strives for 50-50 balance between positive and negative rewards and 50-50 balance between monetary and nonmonetary rewards. 
A)  is focused on "what to achieve" to be rewarded as opposed to "what to do" and is management's most powerful tool for gaining employee commitment to superior strategy execution. 
B)  should be free of elements that induce stress, anxiety, tension, pressure to perform, and job insecurity. 
C)  puts the primary emphasis on denying rewards to those who fail to perform tasks in the prescribed fashion. 
D)  emphasizes weeding out employees who are consistently low performers. 
E)  strives for 50-50 balance between positive and negative rewards and 50-50 balance between monetary and nonmonetary rewards.

Question 14

A change in strategy nearly always entails budget reallocations because

Accepted Answer

A)  revamping the performance of value chain activities can be costly. 
B)  the accompanying policy revisions and compensation incentives tend to require different levels of funding than before. 
C)  organizational units important in the prior strategy but having a lesser role in the new strategy may need downsizing, while units and activities that now have a bigger and more critical strategic role may need more people, new equipment, additional facilities, and above-average increases in their operating budgets. 
D)  empowering employees to carry out the new strategy elements typically requires substantial new funding and budget revisions. 
E)  adopting best practices and pushing for continuous improvement tends to reduce costs and reduce overall resource requirements. 
A)  revamping the performance of value chain activities can be costly. 
B)  the accompanying policy revisions and compensation incentives tend to require different levels of funding than before. 
C)  organizational units important in the prior strategy but having a lesser role in the new strategy may need downsizing, while units and activities that now have a bigger and more critical strategic role may need more people, new equipment, additional facilities, and above-average increases in their operating budgets. 
D)  empowering employees to carry out the new strategy elements typically requires substantial new funding and budget revisions. 
E)  adopting best practices and pushing for continuous improvement tends to reduce costs and reduce overall resource requirements.

Question 15

Unhealthy company cultures typically have such characteristics as

Accepted Answer

A)  tight budget controls, overly strict enforcement of longstanding policies and procedures, and low ethical standards. 
B)  a preference for conservative strategies, an aversion to incentive compensation, and excessive emphasis on profitability. 
C)  a politicized internal environment, hostility to change, an insular, inwardly focused culture, and unethical or greed-driven behavior on the part of executives. 
D)  overemphasis on employee empowerment, a complacent approach to building competencies and capabilities, no coherent business philosophy, and excessively bureaucratic policies and procedures. 
E)  too little emphasis on innovation, a strong preference for hiring managers from outside the company, very few core values and traditions, and a weakly enforced code of ethics. 
A)  tight budget controls, overly strict enforcement of longstanding policies and procedures, and low ethical standards. 
B)  a preference for conservative strategies, an aversion to incentive compensation, and excessive emphasis on profitability. 
C)  a politicized internal environment, hostility to change, an insular, inwardly focused culture, and unethical or greed-driven behavior on the part of executives. 
D)  overemphasis on employee empowerment, a complacent approach to building competencies and capabilities, no coherent business philosophy, and excessively bureaucratic policies and procedures. 
E)  too little emphasis on innovation, a strong preference for hiring managers from outside the company, very few core values and traditions, and a weakly enforced code of ethics.

Question 16

Reengineering how a firm performs a business process

Accepted Answer

A)  is a tool for pulling the pieces of strategy-critical processes out of different departments and unifying their performance in a single department or cross-functional work group. 
B)  is the most frequently used tool of total quality management (TQM). 
C)  requires that a company have many strategic partnerships and alliances with outsiders. 
D)  is typically cheaper and easier-to-do than using Six Sigma techniques to achieve the same cost savings. 
E)  is usually a company's most important "best practice" for achieving operating excellence. 
A)  is a tool for pulling the pieces of strategy-critical processes out of different departments and unifying their performance in a single department or cross-functional work group. 
B)  is the most frequently used tool of total quality management (TQM). 
C)  requires that a company have many strategic partnerships and alliances with outsiders. 
D)  is typically cheaper and easier-to-do than using Six Sigma techniques to achieve the same cost savings. 
E)  is usually a company's most important "best practice" for achieving operating excellence.

Question 17

Which of the following is most integral to the task of leading the drive for good strategy execution and operating excellence?

Accepted Answer

A)  Pushing lower-level managers and supervisors to practice MBWA 
B)  Being a good motivator and a decisive decision maker 
C)  Making sure the company has a good strategic plan, staying on top of how well things are going, pushing organization units to achieve good results, pushing for corrective actions to improve both the company's strategy and how well it is being executed, and displaying ethical integrity and leading social responsibility initiatives 
D)  Practicing enlightened empowerment of employees and using a decentralized approach to decision making 
E)  Being good at designing a strategy-supportive reward structure 
A)  Pushing lower-level managers and supervisors to practice MBWA 
B)  Being a good motivator and a decisive decision maker 
C)  Making sure the company has a good strategic plan, staying on top of how well things are going, pushing organization units to achieve good results, pushing for corrective actions to improve both the company's strategy and how well it is being executed, and displaying ethical integrity and leading social responsibility initiatives 
D)  Practicing enlightened empowerment of employees and using a decentralized approach to decision making 
E)  Being good at designing a strategy-supportive reward structure

Question 18

The hallmark of an adaptive corporate culture is

Accepted Answer

A)  a shared willingness to adapt core values to fit the changing requirements of an evolving strategy. 
B)  a conservative strategy, prudent risk taking, and strong peer pressures to observe cultural norms. 
C)  willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies. 
D)  a commitment to the types of core values and ethical standards that make a company a great place to work. 
E)  a strong preference for performance-based compensation systems, especially the payment of bonuses and stock options. 
A)  a shared willingness to adapt core values to fit the changing requirements of an evolving strategy. 
B)  a conservative strategy, prudent risk taking, and strong peer pressures to observe cultural norms. 
C)  willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies. 
D)  a commitment to the types of core values and ethical standards that make a company a great place to work. 
E)  a strong preference for performance-based compensation systems, especially the payment of bonuses and stock options.

Which one of the following statements about recruiting and retaining capable employees is true?

Business process reengineering is a tool for

The principal managerial actions and initiatives undertaken in the strategy execution process include which of the following?

Companies with change-resistant cultures

The statistical thinking underlying Six Sigma is based on the following three principles:

The three components of building a capable organization are

The principal managerial actions and initiatives undertaken in the strategy execution process include which of the following?

Companies with politicized cultures

Six Sigma's DMADV process of define, measure, analyze, design and verify is a particularly good vehicle for

MBWA refers to

Which one of the following is not a benefit of prescribing policies and operating procedures to aid management's task of implementing strategy?

Total quality management (TQM)

A well-designed reward system

A change in strategy nearly always entails budget reallocations because

Unhealthy company cultures typically have such characteristics as

Reengineering how a firm performs a business process

Which of the following is most integral to the task of leading the drive for good strategy execution and operating excellence?

The hallmark of an adaptive corporate culture is

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

Which one of the following statements about recruiting and retaining capable employees is true?

Business process reengineering is a tool for

The principal managerial actions and initiatives undertaken in the strategy execution process include which of the following?

Companies with change-resistant cultures

The statistical thinking underlying Six Sigma is based on the following three principles:

The three components of building a capable organization are

The principal managerial actions and initiatives undertaken in the strategy execution process include which of the following?

Companies with politicized cultures

Six Sigma's DMADV process of define, measure, analyze, design and verify is a particularly good vehicle for

MBWA refers to

Which one of the following is not a benefit of prescribing policies and operating procedures to aid management's task of implementing strategy?

Total quality management (TQM)

A well-designed reward system

A change in strategy nearly always entails budget reallocations because

Unhealthy company cultures typically have such characteristics as

Reengineering how a firm performs a business process

Which of the following is most integral to the task of leading the drive for good strategy execution and operating excellence?

The hallmark of an adaptive corporate culture is

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