Ch10 Crafting And Executing Strategy

Front 1

Organizational Structure

Back 1

comprises the formal and informal arrangement of tasks, responsibilities, lines of authority and reporting relationships by which the firm is administered

Front 2

simple structure

Back 2

consists of a central executive who handles all major decisions and oversees all operations witht he help of a small staff

Front 3

functional structure

Back 3

is organized into functional departments with departmental managers who report to the CEO and small corporate corporate staff

Front 4

multi-divisional structure

Back 4

is a decentralized structure consisting of a set of operating divisions organized along business, product, customer group, or geographic lines and a central corporate head quarters that allocates resources, provides support functions and monitors divisional activities

Front 5

matrix structure

Back 5

is a structure that combines two or more organizational forms, with multiple reporting relationships. it is also used to foster cross-unit collaboration

Front 6

network structure

Back 6

is the arrangement linking a number of independent organizations involved in some common undertaking

Front 7

What makes the managerial task of executing strategy so challenging and demanding is

Back 7

the demanding people-management skills required, the resistance to change that has to be overcome, and the perseverance necessary to get a variety of initiatives launched and kept moving along

Front 8

While ultimate responsibility for implementing and executing strategy falls upon the shoulders of senior executives,

Back 8

top-level managers still have to rely on the active support and cooperation of middle and lower-level managers in pushing needed changes in functional areas and operating units.

Front 9

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

Back 9

Selecting and retaining capable employees, thereby enhancing the company’s intellectual capital resources

Front 10

Building an organization capable of good strategy execution entails

Back 10

staffing the organization, building core competencies and competitive capabilities, and structuring the organization and work effort.

Front 11

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

Back 11

Recruiting and retaining capable employees is usually much more important to good strategy execution and the achievement of true operating excellence than is assembling a capable top management team.

Front 12

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

Back 12

Core competencies generally grow out of company efforts to master a strategy-critical technology or to invent and patent a valuable technology.

Front 13

When it is difficult or impossible to out-strategize rivals (beat them with a superior strategy), the other main avenue to competitive advantage is to

Back 13

out execute them (beat them by performing certain value chain activities in superior fashion

Front 14

Which one of the following is not a reason why companies might use outsourcing to improve performance of strategy-critical activities?

Back 14

Promoting quick establishment of a total quality culture

Front 15

A decentralized organizational structure is predicated on a belief that

Back 15

decision-making authority should be pushed down to the lowest organizational level capable of making timely, informed, competent decisions.

Front 16

The chief advantages of a decentralized organizational structure include

Back 16

reducing the layers of management and encouraging lower-level managers and rank-and-file employees to exercise initiative and act responsibly

Front 17

A company's culture is NOT manifested in which one of the following?

Back 17

Its strategic vision, strategic intent, and strategy

Front 18

corporate culture

Back 18

refers to the character of a company's internal work climate - as shaped by a system of shared values, beliefs, ethical standards and traditions

Front 19

At companies where executives believe in the merits of practicing the values and ethical standards that have been espoused

Back 19

the stated core values and ethical principles are the cornerstones of the corporate culture

Front 20

strong culture company

Back 20

deeply rooted values and norms of behavior are widely shared and regulate the conduct of business

Front 21

Frequently, a significant part of a company’s culture is captured in

Back 21

the stories that get told over and over again to illustrate to newcomers the importance of certain values

Front 22

managing by walking around

Back 22

is one of the techiques that effective leaders use to stay informed about how well the strategy execution process is progressing

Front 23

Which one of the following statements about a company’s culture is FALSE?

Back 23

A company’s culture, once established, tends to remain stable and entrenched over time

Front 24

Which of the following is NOT a factor in contributing to the emergence and sustainability of a strong culture?

Back 24

Centralized decision-making, strict enforcement of company policies, and a strong commitment to being the market share leader

Front 25

Which one of the following statements about a weak company culture is TRUE?

Back 25

Weak cultures provide little assistance in executing strategy because there are no traditions, values, or behavioral norms that management can use as levers to mobilize commitment to executing the chosen strategy

Front 26

Which of the following statements about the match between a company’s culture and its strategy is FALSE?

Back 26

A tight strategy-culture alignment facilitates building core competencies and distinctive competencies that lead to low operating costs and a cost-based competitive advantage

Front 27

The hallmarks of a high performance corporate culture include

Back 27

a “can-do” spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives

Front 28

The hallmark of an adaptive corporate culture is

Back 28

willingness on the part of organizational members to accept change and take on the challenge of introducing and executing new strategies.

Front 29

Unhealthy company cultures typically have such characteristics as

Back 29

a politicized internal environment, hostility to change and an aversion to looking outside the company for best practices, new managerial approaches, and innovative ideas

Front 30

Business ethics concerns

Back 30

the application of general ethical principles and standards to the actions and decisions of companies and the behavior of company personnel

Front 31

The contentions that (1) many of the same standards of what’s ethical and what’s unethical resonate with peoples of most societies regardless of local traditions and cultural norms and (2) to the extent there is common moral agreement about right and wrong actions, common ethical standards can be used to judge the conduct of personnel at companies operating in a variety of country markets and cultural circumstances are defining beliefs of

Back 31

the school of ethical universalism

Front 32

If one concurs with the school of ethical universalism, then one believes that

Back 32

many basic moral standards travel well across cultures and countries and really do not vary significantly according to local cultural beliefs, social mores, religious convictions, and/or the circumstances of the situation.

Front 33

ethical relativism

Back 33

holds that differing religious beliefs, customs and behavioral norms across countries and cultures give rise to multiple sets of standards concerning what is ethically right or wrong

Front 34

Which one of the following is not a key element of integrated social contracts theory?

Back 34

Integrated social contracts theory rejects the slippery slope of ethical relativism and embraces ethical universalism

Front 35

integrated social contacts theory

Back 35

universal ethical principles based on the collective views of multiple societies from a "social contract" that all individuals and organizations have a duty to observe in all situations.

Front 36

The strength of integrated social contracts theory is that it

Back 36

accommodates the best parts of ethical universalism and ethical relativism

Front 37

The litmus test of a company’s code of ethics is

Back 37

the extent to which it is embraced in crafting strategy and in the day-to-day operations of the business.

Front 38

self-dealing

Back 38

occurs when managers take advantage of their position to further their own private interest rather that those of the firm.

Front 39

short-termism

Back 39

is the tendency for maangers to focus excessively on short-term performance objectives at the expense of longer-term objectives

Front 40

Which one of the following is not one of the major drivers of unethical managerial behavior

Back 40

Intense competitive pressures

Front 41

The business case for an ethical strategy

Back 41

emphasizes that pursuing unethical strategies not only damages a company’s reputation but can also have costly consequences that are wide ranging

Front 42

Which of the following is not something a company should usually consider in crafting a strategy of social responsibility

Back 42

Actions to benefit shareholders (such as raising the dividend or boost the stock price)

Front 43

Which of the following statements regarding a company’s social responsibility and sustainability strategy is false?

Back 43

A company is not demonstrating an adequate degree of social responsibility or endeavoring to be a model corporate citizen unless it spends 5% (or more) of pretax profits on social responsibility initiatives.

Front 44

corporate social responsibility

Back 44

refers to a company's duty to operate in a honorable manner, provide good working conditions for employees, encourage workforce diversityand actively work to better the quality of life in the local communities where it operates and in society at large.

Front 45

corporate social responsibility strategy

Back 45

is defined by the specific combination of socially beneficial activities the company opts to support with its contributions of time, money, and other resources.

Front 46

sustainable business practices

Back 46

are those that meet the needs of the present without comprising the ablity to meet the needs of the future

Front 47

environmental sustainability strategy

Back 47

consists of its deliberate actions to protect the environment, provide for the logevity of natural resources, maintainecological support systems

Front 48

price earning ratio

Back 48

current market price per share / earning per share

Front 49

diluted eps

Back 49

earnings after taxes (cont ops) / diluted shares outstanding

Front 50

free cash flow

Back 50

after tax profits + depreciation - capital expenditures - dividends

Front 51

free sach flow per share

Back 51

free cahs flow / # of diluted shares outstanding

Front 52

book value per share

Back 52

total equity / # of diluted shares outstanding

Front 53

firm's price/book value per share

Back 53

stock price / (total equity / # of diluted shares)

Front 54

gross profit margin

Back 54

(revenues - COGS) / revenues

Front 55

operating profit

Back 55

operating income / revenues

Front 56

working capital

Back 56

current assents - current liabilities