Question 1

When a company uses outsourcing to zero in on even better performance of those truly strategy-critical activities where its expertise is most needed,then it may also be able to:

Accepted Answer

A)   create a values-based corporate culture that excels in product innovation.
B)   decrease internal bureaucracies, flatten its organizational structure, and shorten the time it takes to respond to changing market conditions.
C)   devote more resources to its social responsibility strategy, better empower employees, and reduce employee turnover.
D)   better police compliance with ethical standards, lower overall operating costs, and create two or more distinctive competencies.
E)   reduce the potential for information overload and improve the quality of decision making in each domain.F) A) and D)
G) A) and C)

Question 2

Which of the following is NOT accurate as concerns a company's competencies and capabilities?

Accepted Answer

A)   Competencies and capabilities that grow stale can impair competitiveness unless they are refreshed, modified, or even phased out and replaced in response to ongoing market changes and shifts in company strategy.
B)   Core competencies have to be tweaked and adjusted to keep them fresh and responsive to changing customer needs and market conditions.
C)   The imperatives of keeping capabilities in step with ongoing strategy and market changes make it appropriate to view a company as a bundle of evolving competencies and capabilities.
D)   Even after core competencies and competitive capabilities are in place and functioning, company managers can't relax. They still have to wrestle with when and how to recalibrate existing competencies and capabilities and when and how to develop new ones.
E)   When a company succeeds in hiring talented employees and training them properly, competencies and capabilities tend to develop quickly and, once put in place, can last for a decade or more.F) A) and E)
G) All of the above

Question 3

Identify and briefly discuss four of the recommended practices companies have used to recruit and retain the best employees to make the rank-and-file employees a genuine competitive asset.

Accepted Answer

In recognition of the importance of a ta...

Question 4

General Electric has an up-or-out policy,where key personnel in underperforming units are pressured to boost performance to acceptable levels and keep it there or risk being replaced.What is this an example of?

Accepted Answer

A)   Staffing the organization with managers and employees capable of executing the strategy well
B)   Developing the resources and organizational capabilities required for successful strategy execution
C)   Tying rewards and incentives directly to the achievement of strategic and financial targets
D)   Adopting best practices and business processes to drive continuous improvement in strategy execution activities
E)   Exercising the internal leadership needed to propel strategy implementation forwardF) C) and E)
G) B) and C)

Question 5

In which one of the following instances is the training and retraining of employees likely to make the LEAST important contribution to good strategy execution?

Accepted Answer

A)   When a company shifts to a strategy requiring different skills, competitive capabilities, managerial approaches, and operating methods
B)   When an organization is striving to build skills-based competencies
C)   When technical know-how is changing so rapidly that a company loses its ability to compete unless its skilled people have cutting-edge knowledge and expertise
D)   When the chosen strategy calls for a deeper technological capability or building and using new capabilities
E)   When the strategy execution effort is based on tried-and-true operating practices that vary little from year to yearF) A) and D)
G) None of the above

Question 6

What does a good strategy execution require?

Accepted Answer

A)   A team effort with all managers having strategy executing responsibility in their areas of authority, and making all employees active participants in the strategy execution process
B)   Incremental changes to current operating practices be implemented to ensure existing resource capabilities are not impacted too severely
C)   Little consensus building, despite the magnitude of the proposed changes, because employees know the benefits gained from the planning process
D)   The strategy-critical value chain activities to be simplified so that all company personnel can be cognizant of the benefits of the execution parameters
E)   Additional investments in capital projects rather than adding to a company's talent base and building intellectual capitalF) C) and D)
G) B) and E)

Question 7

Identify and briefly discuss the three common approaches to building core competencies and competitive capabilities.

Accepted Answer

The most common approaches to capability...

Question 8

What is the rule for organizing the work effort to support good strategy execution?

Accepted Answer

A)   Match the firm's organizational structure to its unique strategy.
B)   Decide on how much to spend on training managers and employees.
C)   Choose an organization structure that is a tight fit with the corporate culture.
D)   Ensure the firm hires a capable management team.
E)   Learn how the collaborative partner does things.F) A) and E)
G) A) and D)

Question 9

Which of the following does NOT describe the standard type of structural form of organization?

Accepted Answer

A)   A functional structure where function is a major step in the firm's value chain
B)   A simple structure where all major decisions and oversight are a duty of the central executive
C)   A multidivisional structure where each division of the firm is an independent profit center
D)   A matrix structure where there are two or more divisions organized to enhance cross-communication
E)   A network structure where independent organizations are involved in a common undertakingF) All of the above
G) A) and B)

Question 10

Which of the following is NOT a characteristic of a highly centralized organizational structure?

Accepted Answer

A)   Top-level managers retain decision authority for most strategic and operating activities.
B)   Strict control and enforcement of detailed procedures backed by rigorous managerial accountability is the most reliable way to keep the daily execution of strategy on track.
C)   Tight control from the top is a more effective means for coordinating company actions and 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, they lack the knowledge and judgment to make wise decisions about how best to do their work.
E)   The decision about where to draw the divisional lines depends foremost on the nature of the relatedness and the strategy-critical building blocks, in terms of which businesses have key value chain activities in common.F) A) and C)
G) C) and E)

Question 11

Identify and briefly discuss/explain three components of structuring a company's work effort to promote successful strategy execution.

Accepted Answer

A firm's organizational structure should...

Question 12

Which of the following is NOT one of the traits of core competencies and/or competitive capabilities?

Accepted Answer

A)   The key to leveraging core competencies into competitive advantage is concentrating sufficient effort and talent on deepening and strengthening them so the firm achieves dominating depth and gains the capability to outperform rivals by a meaningful margin.
B)   Core competencies have to be tweaked and adjusted to keep them fresh and responsive to changing customer needs and market conditions.
C)   Core competencies typically are lodged in the combined efforts of different work groups and departments.
D)   Core competencies generally grow out of company efforts to master a strategy-critical technology or to invent and patent a valuable technology.
E)   Core competencies tend to emerge gradually rather than blossom quickly.F) B) and D)
G) B) and C)

Question 13

What is the advantage of acquiring capabilities through merger and acquisition?

Accepted Answer

A)   Speed, since developing new capabilities internally can take many years of effort
B)   Empowerment, since you can capture the essence of the capability and refocus the firm
C)   Price, as it is always cheaper to buy a whole company and pull out the capabilities individually
D)   Assets, as it the basis of the sale
E)   Investment, since resources and capabilities are considerable strongerF) A) and B)
G) A) and C)

Question 14

Delegating greater authority to subordinate managers and employees:

Accepted Answer

A)   creates a more horizontal or flatter organizational structure with fewer management layers and usually acts to shorten organizational response times.
B)   usually slows down decision making because so many more people are involved and it takes longer to reach a consensus on what to do and when to do it.
C)   can be a de-motivating factor because it requires people to take responsibility for their decisions and actions.
D)   is very risky because it usually results in lots of "bad" decisions on the part of employees, as well as lower levels of financial performance.
E)   enhances greater cross-unit coordination and aids the capture of strategic fit benefits across related businesses.F) B) and E)
G) A) and D)

Question 15

Which structure combines two or more organizational forms,with multiple reporting relationships,and is used to foster cross-unit collaboration?

Accepted Answer

A)   Matrix structure
B)   Composite structure
C)   Divisional structure
D)   Network structure
E)   Functional structureF) A) and E)
G) A) and B)

Question 16

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

Accepted Answer

Aside from the fact that an outsider,bec...

Question 17

In order to coordinate and control the complex set of activities,managers must ensure:

Accepted Answer

A)   the organizational structure enables bureaucratic waste and strives for eliminating imposed capacity limitations of the strategy.
B)   the various parts of the organizational structure are aligned with one another and also matched to the requirements of the strategy.
C)   they have enough employees dedicated to the various functions to attain economies of scale benefits.
D)   they can orchestrate the process with forceful administration and political maneuvering.
E)   they accommodate situational idiosyncrasies to build a competitively capable organization.F) A) and D)
G) C) and E)

Question 18

Which of the following is NOT among the principal managerial components of the strategy execution process?

Accepted Answer

A)   Building an organization with the competencies, capabilities, and resource strengths needed to execute strategy successfully
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)   Adopting best practices and 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 executionF) A) and E)
G) A) and B)

Question 19

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.F) C) and E)
G) A) and E)

Question 20

Which of the following does NOT exemplify a policy or procedure that facilitates strategy execution?

Accepted Answer

A)   A nonprofit agency that addresses only specific societal problems through public services
B)   A toy manufacturing company that plans on reaching three different segments of the market
C)   A fast food joint that has an onsite kindergarten and provides afterschool programs for its employees' children
D)   A sporting goods seller that monitors consumers' preferences for gear and accessories on its blog
E)   A bedding linen manufacturing company that recycles its water to cool the machines in the factoryF) D) and E)
G) A) and D)

Exam 10: Building an Organization Capable of Good Strategy Execution

What is the rule for organizing the work effort to support good strategy execution?

Correct AnswerverifiedShow Answer

In order to coordinate and control the complex set of activities,managers must ensure:

Correct AnswerverifiedShow Answer

Which of the following does NOT exemplify a policy or procedure that facilitates strategy execution?

Correct AnswerverifiedShow Answer

Identify and briefly discuss four of the recommended practices companies have used to recruit and retain the best employees to make the rank-and-file employees a genuine competitive asset.

Correct AnswerverifiedIn recognition of the importance of a ta...View AnswerShow Answer

Which of the following is NOT among the principal managerial components of the strategy execution process?

Correct AnswerverifiedShow Answer

What does a good strategy execution require?

Correct AnswerverifiedShow Answer

Identify and briefly discuss the three common approaches to building core competencies and competitive capabilities.

Correct AnswerverifiedThe most common approaches to capability...View AnswerShow Answer

Which of the following is NOT one of the traits of core competencies and/or competitive capabilities?

Correct AnswerverifiedShow Answer

General Electric has an up-or-out policy,where key personnel in underperforming units are pressured to boost performance to acceptable levels and keep it there or risk being replaced.What is this an example of?

Correct AnswerverifiedShow Answer

Which of the following does NOT describe the standard type of structural form of organization?

Correct AnswerverifiedShow Answer

In which one of the following instances is the training and retraining of employees likely to make the LEAST important contribution to good strategy execution?

Correct AnswerverifiedShow Answer

Outsourcing value chain activities has such strategy executing advantages as:

Correct AnswerverifiedShow Answer

Delegating greater authority to subordinate managers and employees:

Correct AnswerverifiedShow Answer

Which structure combines two or more organizational forms,with multiple reporting relationships,and is used to foster cross-unit collaboration?

Correct AnswerverifiedShow Answer

Which of the following is NOT accurate as concerns a company's competencies and capabilities?

Correct AnswerverifiedShow Answer

Which of the following is NOT a characteristic of a highly centralized organizational structure?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedAside from the fact that an outsider,bec...View AnswerShow Answer

Identify and briefly discuss/explain three components of structuring a company's work effort to promote successful strategy execution.

Correct AnswerverifiedA firm's organizational structure should...View AnswerShow Answer

What is the advantage of acquiring capabilities through merger and acquisition?

Correct AnswerverifiedShow Answer

When a company uses outsourcing to zero in on even better performance of those truly strategy-critical activities where its expertise is most needed,then it may also be able to:

Correct AnswerverifiedShow Answer

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In recognition of the importance of a ta...
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The most common approaches to capability...
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Aside from the fact that an outsider,bec...
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A firm's organizational structure should...
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Correct Answer
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Correct Answer
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