Exam 10: Building an Organization Capable of Good Strategy Execution

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A firm's organizational structure should...

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It depends. Both structures have drawbac...

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A) lower costs for employee training.
B) improved strategy execution and a potential for competitive advantage.
C) an increased ability to reduce total operating costs.
D) the added ease with which strategic fit and resource fit benefits can be captured.
E) the enhanced ability to avoid the perils of outsourcing.

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A) usually consist of two divisions-a division charged with performing primary value chain activities and a division charged with performing support activities.
B) involve a functional or departmental structure that includes process, geographic, product, or customer groups performing one or more major processing steps along the value chain.
C) typically consist of an un-empowered employee department, an empowered employee department, teams of front-line supervisors, teams of middle-level managers and administrators, and the group of top-level executives that comprise the company's "executive suite."
D) are almost always the departments performing such key administrative support functions as finance, accounting, information technology, human resource management, and R&D.
E) usually consist of supply chain management, components manufacture, assembly, distribution, and administration.

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B

A) matrix structure
B) composite structure
C) divisional structure
D) network structure
E) functional structure

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B

A) facilitating collaboration with external partners and strategic allies
B) providing for cross-unit coordination and deciding which value chain activities to perform in-house and which ones to outsource
C) determining how much authority to centralize at the top and how much to delegate to down-the-line managers and employees
D) determining which functions and organizational units require superior intellectual capital
E) maintaining expertise and resource depth in performing those internally strategy-critical value chain activities that underpin its long-term competitive success and provide for the main building blocks in the organization structure

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A) updating existing capabilities.
B) establishing a new arsenal of resource capabilities by phasing out existing capabilities.
C) refreshing existing capabilities.
D) augmenting or recombining well-established capabilities with existing resources.
E) building resource capabilities from scratch so it is easy and less time-consuming.

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A) when industry conditions, like technology advances, are central to growth and rivalry is intense
B) when first-mover advantages for products or services can be added to the portfolio lineup
C) when the acquired firm can be purchased at a discount due to underperformance
D) when a market opportunity can slip by faster than a needed capability can be created internally
E) when the capabilities involve tacit knowledge and complex routines

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

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In executing strategy and conducting dai...

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A) improving a company's chances for outclassing rivals in the performance of strategy-critical activities and turning a core competence into a distinctive competence
B) promoting quick establishment of a total quality culture
C) speeding internal decision making and shortening the time it takes to respond to changing market conditions
D) capitalizing on the partnerships with outsiders to enhance its arsenal of capabilities and thus contribute to better strategy execution
E) helping decrease internal bureaucracies and flatten the organizational structure

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A) weeding out the 20% lowest-performing employees each year
B) coaching average performers to improve their skills and capabilities
C) striving to retain talented, high-performing employees via promotions, salary increases, and other perks
D) rotating people through jobs that span functional and geographic boundaries
E) careful screening and evaluation of job applicants

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A) much shorter time it takes to build core competencies and competitive capabilities.
B) benefit such an organizational scheme has in reducing costs.
C) benefit such an organizational scheme has in improving the productivity of geographically scattered organizational units.
D) thesis that if activities crucial to strategic success are to have the resources, decision-making influence, and organizational impact, they have to be centerpieces in the organizational scheme.
E) benefit such an organizational scheme has in making the empowerment of employees more effective.

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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 undertaking

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A) generalized activities that will underscore the particulars of the company's situation.
B) some definitive managerial recipe for successful strategy execution that works for all company situations and all types of strategies, or that works for all types of managers.
C) a set of unimportant managerial tasks that must be covered no matter what the circumstances.
D) senior management's judgment about how to proceed in light of prevailing circumstances.
E) a high-end differentiation strategy for proficient implementation and execution.

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A) Valery typically probes with tough, incisive questions.
B) Greg is often sympathetic to his team members' problems and shortcomings.
C) Maria can complete a job in half the time as her colleagues.
D) Jorge prefers to launch, manage, and complete projects by himself.
E) Chong advocates promoting qualified people from within the firm.

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A) a strong, confident sense of what to do and how to do it.
B) strong communication skills (both written and verbal) covering motivating intent.
C) strong management skills to ensure a systematic approach to administration.
D) strong organizational skills so as to make actions structured toward results.
E) strong empathy skills when employees run into challenging moments.

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A

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.

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