Question 1

Management's most powerful tool for winning employee commitment to good strategy execution is:

Accepted Answer

A)   the establishment of strategy-supportive policies and procedures.
B)   empowering employees and encouraging them to adopt best practices.
C)   setting stretch objectives.
D)   a structure of rewards and incentives tied tightly to the achievement of the organization's strategic priorities.
E)   aggressive use of TQM and Six Sigma quality control programs. D

Question 2

Six Sigma programs:

Accepted Answer

A)   utilize advanced statistical methods to improve quality by reducing defects and variability in the performance of business processes.
B)   consist 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)   are based on three principles: (1)  all work is a statistically controllable process; (2)  no well-controlled process allows variability; and (3)  defect-free work requires tight statistical controls.
D)   suggest that all activities can be controlled, employee empowerment is the best control tool, and 100 percent control is possible.
E)   radically redesign and streamline how an activity is performed. A

Question 3

Identify and describe ways that policies and procedures facilitate strategy execution.

Accepted Answer

Well-conceived policies and operating procedures facilitate strategy execution in three ways:
•By providing top-down guidance regarding how things need to be done: policies and procedures represent a store of organizational or managerial knowledge about efficient and effective ways of doing things-a set of well-honed routines for running the company.
•By helping ensure consistency in how execution-critical activities are performed: Policies and procedures serve to standardize the way that activities are performed.This can be important for ensuring the quality and reliability of the strategy execution process.
•By promoting the creation of a work climate that facilitates good strategy execution: A company's policies and procedures help to set the tone of a company's work climate and contribute to a common understanding of "how we do things around here."

Question 4

Cavco Construction divests funds from its commercial property ventures to invest in gated community properties close to New York,signaling a change of strategy.Which of the following statements about Cavco is most likely true?

Accepted Answer

A)   Cavco is impeding the efforts to proficiently execute the strategy.
B)   Cavco is merely fine-tuning its existing strategy to test efficiency.
C)   Cavco is marshalling resources to support new strategic initiative.
D)   Cavco is hampering work climate conducive for good strategy execution.
E)   Cavco is focusing on activities that are a low priority in the strategy execution effort.

Question 5

Business process reengineering is a tool for:

Accepted Answer

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

Question 6

Without a strategic framework,managers lack the context in which to:

Accepted Answer

A)   fix things that really matter to business-unit performance and competitive success.
B)   carry out company-wide goals related to the dynamics of a single business model.
C)   employ the company's resources in the pursuit of sustainable competitive advantage.
D)   communicate aspirations for the company.
E)   analyze the emerging market opportunities more precisely.

Question 7

Which of the following does NOT exemplify business process reengineering?

Accepted Answer

A)   Blue Mountain creates teams of mixed-occupation freelancers to design Christmas cards.
B)   Speedmore integrates three distribution units to form a consolidated zonal distribution center.
C)   Bank of America automates global transaction services in a quest for operational efficiencies.
D)   PayPal segregates payment notification operations from mobile transfer operations to expand its customer base.
E)   Florida Power eliminates work depots, entrusting the task of repair to crew members in a mobile van.

Question 8

Which of the following does NOT facilitate strategy execution?

Accepted Answer

A)   Hyundai service centers follow same routines when receiving vehicles for servicing.
B)   Ford encourages staff to skip practices out of sync with the company's mission.
C)   General Motors showrooms have similar operating practices across regions.
D)   Chevrolet Service center replicates the caliber of customer service across locations.
E)   Renault is averse to standardization of the way activities are performed at its service centers.

Question 9

Motivational and incentive compensation practices that aim at winning the commitment of company personnel to good strategy execution typically:

Accepted Answer

A)   use only positive rewards and never involve the use of tension, fear, job insecurity, stress, or anxiety.
B)   entail decidedly positive rewards for meeting or beating performance targets, but also impose sufficiently negative consequences when actual performance falls short of the target.
C)   aim at creating a no-pressure/no-adverse-consequences work environment.
D)   entail paying the highest wages and salaries in the industry for all jobholder positions and also stressing nonmonetary rewards, like cash bonuses for high-performing employees.
E)   put top priority on making employees happy and secure in their jobs.

Question 10

Which of the following exemplifies one of the most widely used methods of gauging how well a company is executing its strategy?

Accepted Answer

A)   Merrill & Company has a disconnected organizational arrangement whereby pieces of an activity are performed in different functional departments.
B)   Oceania identifies agents of change who are convinced about sticking to the old ways of doing things.
C)   Honwell narrates success stories of rival brands to convince its personnel about traditional wisdom.
D)   Fizz-Cola judges the efficiency of internal operations by benchmarking them against best-in-industry performers.
E)   Motorola develops the data to measure how poorly rival brands perform against the best-practice standards across industry.

Question 11

Company strategies cannot be implemented or executed well without a number of real-time state-of-the-art support and control information systems to carry out business operations.Discuss the benefits of real-time systems by industry.

Accepted Answer

The answer of Company strategies cannot be implemented or executed...

Question 12

A company that successfully and methodically applies Six Sigma methods to its value chain,activity by activity,can:

Accepted Answer

A)   clearly consider what it will take to overtake rivals with the industry's overall best strategy.
B)   make major strides in improving the proficiency with which its strategy is executed without sacrificing innovation.
C)   increase its bargaining power with suppliers and create better seller-supplier collaborations.
D)   assess the extent to which rivals have competitively valuable competencies or capabilities.
E)   construct a business model that entails a value proposition based on quality.

Question 13

The broad areas that internal information business systems need to cover include all of the following EXCEPT:

Accepted Answer

A)   financial performance data.
B)   corporate culture data.
C)   customer data.
D)   operations data.
E)   employee data.

Question 14

Installing well-conceived,state-of-the-art support systems is an important managerial component of implementing and executing strategy because:

Accepted Answer

A)   such systems are essential to being able to engage in effective benchmarking and continuous improvement.
B)   such support systems not only enable better strategy execution but also strengthen organizational capabilities (perhaps enough to provide a competitive edge over rivals) .
C)   they help managers run a tight ship and preserve strong, centralized control over internal activities.
D)   they are the basis for revamping value chains, boosting labor productivity, and reducing operating costs.
E)   decentralized decision making and employee empowerment cannot work well without having well-conceived information and operating systems to accurately benchmark internally performed value chain activities against best-in-industry and best-in-class performers.

Question 15

Identify five guidelines for creating an incentive compensation system that will help drive successful strategy execution.

Accepted Answer

The answer of Identify five guidelines for creating an incentive...

Question 16

Which of the following takes the route of business process reengineering to attain operational excellence?

Accepted Answer

A)   AT&T works toward creating a total quality culture by continuously reviewing the performance of every value chain activity.
B)   Acer Phones uses advanced statistical methods to remove the causes of defects at its manufacturing units.
C)   Ericsson introduces continuous-improvement business philosophy at its customer care centers.
D)   Cellkon pulls the pieces of an activity out of different departments to create a cross-functional work group.
E)   Honeywell strives to incrementally reduce defects through an ongoing assessment process.

Question 17

Although it is relatively easy for rivals to implement process management tools,it is much more difficult and time-consuming for them to:

Accepted Answer

A)   instill a deeply ingrained culture of operating excellence.
B)   keep employees well-informed about the strides being made with continuous improvement.
C)   unify the managerial efforts behind improving operating practices as a commendable goal.
D)   combine the pursuit of financial objectives with the pursuit of its strategic objectives.
E)   understand the barriers to installing new operating activities.

Question 18

The broad areas that internal information business systems need to cover include all of the following EXCEPT:

Accepted Answer

A)   financial performance data.
B)   supplier/strategic partner data.
C)   customer data.
D)   operations data.
E)   competitor data.

Question 19

Merely fine-tuning the execution of a company's existing strategy normally requires :

Accepted Answer

A)   big shifts of resources from one area to another.
B)   a larger allocation of resources to the effort.
C)   trimming costs and shifting resources to activities that have a higher priority.
D)   creativity in finding ways for cost reductions, i.e. ways to do less with less .
E)   cost-cutting in key value chain activities.

Question 20

In creating a strategy-supportive reward structure,it is important to define jobs and assignments in terms of the results to be accomplished not just in terms of the duties to be performed.True or false? Explain and justify your answer.

Accepted Answer

The answer of In creating a strategy-supportive reward structure,it is...

Exam 11: Managing Internal Operations

Management's most powerful tool for winning employee commitment to good strategy execution is:

Six Sigma programs:

Identify and describe ways that policies and procedures facilitate strategy execution.

Cavco Construction divests funds from its commercial property ventures to invest in gated community properties close to New York,signaling a change of strategy.Which of the following statements about Cavco is most likely true?

Business process reengineering is a tool for:

Without a strategic framework,managers lack the context in which to:

Which of the following does NOT exemplify business process reengineering?

Which of the following does NOT facilitate strategy execution?

Motivational and incentive compensation practices that aim at winning the commitment of company personnel to good strategy execution typically:

Which of the following exemplifies one of the most widely used methods of gauging how well a company is executing its strategy?

Company strategies cannot be implemented or executed well without a number of real-time state-of-the-art support and control information systems to carry out business operations.Discuss the benefits of real-time systems by industry.

A company that successfully and methodically applies Six Sigma methods to its value chain,activity by activity,can:

The broad areas that internal information business systems need to cover include all of the following EXCEPT:

Installing well-conceived,state-of-the-art support systems is an important managerial component of implementing and executing strategy because:

Identify five guidelines for creating an incentive compensation system that will help drive successful strategy execution.

Which of the following takes the route of business process reengineering to attain operational excellence?

Although it is relatively easy for rivals to implement process management tools,it is much more difficult and time-consuming for them to:

The broad areas that internal information business systems need to cover include all of the following EXCEPT:

Merely fine-tuning the execution of a company's existing strategy normally requires :

In creating a strategy-supportive reward structure,it is important to define jobs and assignments in terms of the results to be accomplished not just in terms of the duties to be performed.True or false? Explain and justify your answer.