Question 1

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. B

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. B

Question 3

The disadvantages of a centralized organizational structure include

Accepted Answer

A)   making the organization sluggish in responding to changing conditions.
B)   a loss of top 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 capture of strategic fits. A

Question 4

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.

Question 5

The chief advantage of a decentralized organizational structure is to

Accepted Answer

A)   put decision-making authority in the hands of those closest and most knowledgeable about the situation.
B)   make it easy to fix accountability when company performance targets are not met.
C)   increase productivity on the part of the workforce.
D)   enhance cross-unit coordination and capture of strategic fits.
E)   create a collegial,collaborative culture where teamwork is a core value and decisions are made on the basis of consensus.

Question 6

Putting constructive pressure on the organization to achieve good results and operating excellence entails

Accepted Answer

A)   setting stretch objectives and creating an expectation that company personnel are to do their best in achieving performance targets.
B)   utilizing the full range of motivational techniques and compensation incentives to reward high performance.
C)   treating employees with dignity and respect.
D)   encouraging employees to use initiative and creativity in performing their work.
E)   All of these.

Question 7

Identify and briefly discuss four steps that managers can take to change a culture that is out of step with the company's strategy.

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Question 8

Explain the difference between a centralized and a decentralized organization structure.Which one is more likely to further the cause of good strategy execution? Why?

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Question 9

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.

Question 10

Once company managers have decided on a strategy,the emphasis turns to

Accepted Answer

A)   converting the strategy into actions and good results.
B)   empowering employees to revise and reorganize value chain activities to match the strategy.
C)   establishing policies and procedures that instruct company personnel in the ways and means of executing the strategy.
D)   developing a detailed implementation plan that sets forth exactly what every department and every manager needs to do to proficiently execute the company's strategy.
E)   building the core competencies and competitive capabilities needed to execute the strategy.

Question 11

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.

Question 12

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.

Question 13

Give at least three nonmonetary examples of motivation and rewards practices that have the capability to foster good strategy execution and explain how they act to produce such a result.

Accepted Answer

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Question 14

The overriding aim in building a management team should be to

Accepted Answer

A)   select people who are committed to decentralizing decision making and empowering employees.
B)   assemble a critical mass of talented managers who can function as agents of change and further the cause of first-rate strategy execution.
C)   choose managers experienced in controlling costs and flattening the organization structure.
D)   select people who have similar management styles,leadership approaches,business philosophies,and personalities.
E)   choose managers who believe in having a strong corporate culture and deeply ingrained core values.

Question 15

The guidelines for designing an incentive compensation system that will help drive successful strategy execution include

Accepted Answer

A)   making the payoff for meeting or beating performance targets a major,not minor,piece of the total compensation package.
B)   having a bonus and incentive plan that applies to managers only (employees should generally not be included in incentive pay plans but should have attractive wages and salaries) .
C)   having an outside wage and salary expert administer the system,so that there is no doubt as to its fairness and impartiality.
D)   basing the incentives on group performance rather than individual performance.
E)   making minimal use of nonmonetary incentives and rewarding people for diligently performing their assigned duties.

Question 16

Total quality management (TQM)emphasizes all but which one of the following?

Accepted Answer

A)   100% accuracy in performing tasks
B)   Continuous improvement in all phases of operations
C)   Widespread adoption of industry standard operating practices
D)   Benchmarking and total customer satisfaction
E)   Empowerment of employees and team-based work design

Question 17

The single most visible factor that distinguishes successful culture-change efforts from failed attempts is

Accepted Answer

A)   forceful management actions to empower employees to adopt new operating practices.
B)   competent leadership at the top.
C)   de-layering the management hierarchy.
D)   developing a new values statement that inspires company personnel to put forth their best efforts to achieve performance targets.
E)   convincing employees that top management is genuinely committed to high ethical standards and the exercise of corporate social responsibility.

Question 18

Identify types of support systems that a company can install to support the execution of its strategy.

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Question 19

Identify three actions that are key elements of leading the strategy execution process.

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Question 20

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.

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