10

Student: ___________________________________________________________________________

1.

Which of the following is not among the types of actions and initiatives undertaken by management in the
strategy execution process?
A. Building an organization capable of executing the strategy
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. 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
execution

2.

The principal managerial actions and initiatives undertaken in the strategy execution process include
which of the following?
A. Deciding how much to spend on employee training
BInstituting policies and procedures that facilitate rather than impede strategy execution and tying
. rewards to the achievement of strategic and financial targets and to good strategy execution
C. Doing an effective job of empowering employees
D. Revamping the value chain fin a manner calculated to maximize operating efficiency
E. Selecting a capable top management team

3.

Putting together a capable top management team

A. should take top priority in building competitively valuable core competencies.
B is particularly important when the firm is pursuing unrelated diversification or making a number of new
. acquisitions in related businesses.
Cis important in building an organization capable of proficient strategy execution, but is nearly always
. less crucial than doing a superior job of training and retraining employees.
D entails filling key managerial slots with people who are good at figuring out what needs to be done and
. skilled in "making it happen" and delivering good results.
E is particularly essential for executing a strategy to keep a company's costs lower than rivals and become
. the industry's low-cost leader.

4.

The overriding aim in building a management team should be to

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.

5.

Recruiting and retaining capable employees

A. is usually much more important to good strategy execution than is assembling a capable top
management team.
Bis important because the quality of an organization's people is always an essential ingredient of
. successful strategy executionknowledgeable, 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.

6.

Which one of the following statements about recruiting and retaining capable employees is true?
AThe quality of an organization's people is always an essential ingredient of successful strategy
. executionknowledgeable, engaged employees are a company's best source of creative ideas for the
nuts-and-bolts operating improvements that lead to operating excellence
B. Recruiting and retaining capable employees is an essential element of developing a distinctive
competence
C. Recruiting and retaining capable employees is closely tied to developing strong information capital
capabilities
DIt is very difficult for a company to competently execute its strategy and achieve operating excellence
. without a cadre of young managerial talent committed to staying with the company for at least a decade
EIn many industries, adding to a company's talent base and building intellectual capital is more important
. than having a good situational fit between the company's strategy and its external environment

7.

Which of the following is generally not among the practices that companies use to staff jobs with the best
people they can find?
A. Careful screening and evaluation of job applicants
B. Rotating people through jobs that span functional and geographic boundaries
C. Weeding out the 20% lowest performing employees each year
D. Striving to retain talented, high-performing employees via promotions, salary increases, and other
perks
E. Coaching average performers to improve their skills and capabilities

8.

Building dynamic capabilities and core competencies

A. is best and most cost-effectively accomplished by forming alliances with outsiders.
B. involves a multi-stage process that occurs over a period of months and years.
C. entails developing more breadth and depth in a company's knowledge base and stock of intellectual
capital than rivals have.
Dcan be done quickest by creating a new department and assigning it the task of imitating the desired
. capabilities that one or more rivals (or even companies outside the industry) have already developed.
Eentails hiring a cadre of people with the right talent and expertise and letting them lead the effort to
. establish a strong corporate culture that features the desired competence or capability.

9.

If management is to match a company's organization structure to its strategy in an effective way, then it is
essential
A. that company personnel be empowered to make both strategic decisions and operating decisions.
B. for strategy-critical activities to be the main building blocks on the organization chart.
C. that value chain activities be deliberately organized so as to produce maximum strategic fit.
D to define the jobs of company personnel in terms of the functions to be performed rather than in terms
. of the results to be achieved.
E.for the company to be organized around cross-functional teams rather than around functional specialties
and functional departments.

10. The rationale for making strategy-critical value chain activities the primary building blocks in a
company's organizational chart is based on
A. the much shorter time it takes to build core competencies and competitive capabilities.
B. the benefit such an organizational scheme has in reducing costs.
C. the benefit such an organizational scheme has in improving the productivity of geographicallyscattered organizational units.
Dthe thesis that if activities crucial to strategic success are to have the resources, decision-making
. influence, and organizational impact they need, they have to be centerpieces in the organizational
scheme.
E. the benefit such an organizational scheme has in making the empowerment of employees more
effective.

11. A decentralized organizational structure is predicated on a belief that

A top executives should establish a collegial, collaborative culture where decisions are made by general
. consensus on what to do and when.
Bstrict enforcement of detailed procedures backed by rigorous managerial oversight is necessary because
. company personnel cannot be counted on act wisely or keep costs to a bare bones level.
C decision-making authority should be pushed down to the lowest organizational level capable of making
. timely, informed, competent decisions.
Dmost company personnel have neither the time nor the inclination to direct and properly control the
. work they are performing and that they lack the knowledge and judgment to make wise decisions about
how best to do their work.
E lower-level managers and employees should go up the ladder of command for approval on most all
. strategic and operating issues of much importance.
12. The chief advantage of a decentralized organizational structure is to
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 work force.
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.
13. The organizing challenge of a decentralized structure which stresses employee empowerment is
A. how to keep empowered employees from making lots of stupid decisions.
B establishing a collegial, collaborative culture so that decisions can be made by gaining a quick
. consensus on what to do and when to do it.
C how to avoid de-motivating employees (because empowered employees are expected to take
. responsibility for their actions and decisions).
Dhow to exercise control over the actions and decisions of empowered employees so that the business is
. not put at risk while trying to capture the benefits of empowerment.
E. how to convince lower-level managers and employees that they are empowered.
14. The disadvantages of a centralized organizational structure include
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.
15. 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
Achanges in strategy often require resource reallocation and because organizational units 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 organization unit.
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.

16. A change in strategy nearly always entails budget reallocations because

A. revamping the performance of value chain activities can be costly.
B. the accompanying policy revisions and compensation incentives tend to require different levels of
funding than before.
Cunits important in the prior strategy but having a lesser role in the new strategy may need downsizing
. while units and activities that now have a bigger and more critical strategic role may need more people,
new equipment, additional facilities, and above-average increases in their operating budgets.
D.empowering employees to carry out the new strategy elements typically requires substantial new
funding and budget revisions.
E. adopting best practices and pushing for continuous improvement tends to reduce costs and reduce
overall resource requirements.
17. Which one of the following is not a benefit of prescribing policies and operating procedures to aid
management's task of implementing strategy?
A. Painting a set of white lines that provides boundaries for the independent actions of empowered
personnel.
B.Providing top-down guidance to operating managers, supervisory personnel, and employees regarding
how things need to be done
C. Promoting the creation of a work climate that facilitates good strategy execution
D. Helping build employee commitment to adopting best practices and using the tools of TQM and Six
Sigma
E. Helping enforce consistency in how particular activities are performed
18. A useful guideline in designing strategy-facilitating policies and operating procedures is
Ato prescribe enough policies to give organizational members clear direction in implementing strategy
. and to place desirable boundaries on their actions, then empower them to act within these boundaries
however they think makes sense.
B. that strictly-enforced policies work better than loosely-enforced policies.
C.that more policies/procedures work better than few policies/procedures and that strict enforcement
always beats lax enforcement.
Dto let individuals act in an empowered and self-directed way, subject only to the constraint that their
. actions and behavior be ethical and in step with the corporate culture.
Eto prescribe enough policies and procedures that little is left to chance in performing value chain
. activities-employees should have no leeway to do things in a manner that deviates from the
company's best practices standard.
19. The backbone of identifying, studying, and implementing best practices is
A. business process reengineering.
B. a corporate culture that has a core value of operating excellence.
C. benchmarking.
D. Six Sigma quality control techniques.
E. innovative application of TQM techniques.
20. Which one of the following is not a tool that company managers can use to promote operating excellence
in performing value chain activities?
A. Benchmarking
B. Adoption of best practices
C. TQM and/or Six Sigma quality control techniques
D. Business process reengineering
E. Adoption of standard industry techniques

21. Business process reengineering is a tool for

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.
22. Reengineering how a firm performs a business process
Ais a tool for pulling the pieces of strategy-critical processes out of different departments and unifying
. their performance in a single department or cross-functional work group.
B. is the most frequently used tool of total quality management (TQM).
C. requires that a company have many strategic partnerships and alliances with outsiders.
D. is typically cheaper and easier-to-do than using Six Sigma techniques to achieve the same cost
savings.
E. is usually a company's most important "best practice" for achieving operating excellence.
23. Total quality management (TQM)
Ais a philosophy of managing a set of business practices that emphasizes continuous improvement in all
. phases of operations, 100% accuracy in performing tasks, involvement and empowerment of employees
at all levels, team-based work design, benchmarking, and total customer satisfaction.
B. is a valuable tool for helping company managers identify what the best practice is for performing a
particular activity.
C. works best when used in conjunction with Six Sigma quality control techniques.
D is an excellent tool for reengineering business processes and making quantum gains in the efficiency
. and effectiveness with which the processes are performed.
E. is a philosophy of doing things that aims at mistake-free management of a company's entire business.
24. Total quality management (TQM) emphasizes all but which one of the following?
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
25. Total quality management (TQM) programs
A. deal exclusively with procedures to achieve defect-free manufacturing and assembly.
B nearly always contribute more to the achievement of operating excellence than either business process
. reengineering or Six Sigma quality control techniques.
C achieve the biggest success when extended to employee efforts in all departmentshuman resources,
. R&D, accounting and records, information systems, and so forth.
Dare considerably more effective in improving manufacturing and assembly activities than they are
. in improving such value chain activities as R&D, human resources management, supply chain
management, information technology, sales and marketing and finance.
E. are generally considered the best tool for reengineering strategy-critical business processes.
26. Six Sigma quality control
A is a strategy-implementer's best, most reliable tool for simultaneously achieving top-notch product
. quality and low manufacturing costs.
B consists 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 consists of a disciplined, statistics-based system aimed at producing not more than 3.4 defects per
. million iterations for any business process.
D. consists of a disciplined, statistics-based system aimed at fewer than 5.0 complaints per million
customer transactions.
Eis a powerful tool for companies whose customers are very picky about product quality and product
. performance and who can't afford for the product they use to break down and require repairs.

27. The statistical thinking underlying Six Sigma is based on the following three principles:
A. All activities can be controlled, employee empowerment is the best control tool, and 100% control is
possible.
B. All work is a process, all processes have variability, and all processes create data that explains
variability.
CAll work activities can be done accurately most of the time, empowered employees are necessary for
. effective control, and good statistical data is an empowered employee's best control tool.
D. All work is a statistically controllable process; 100% control is possible; and every well-controlled
process is defect-free.
E Most business processes are subject to control; Six Sigma can totally remove variability in how
. processes are performed; and most defects can be eliminated.
28. The Six Sigma process of define, measure, analyze, improve, and control (DMAIC) is
Aan improvement system for existing processes falling below specification and needing incremental
. improvementthe DMAIC process is a particularly good vehicle for improving performance when
there are wide variations in how well an activity is performed.
B. an improvement system used to develop new processes or products at 100% defect-free levels.
C. a system of statistical procedures for achieving 100% control over how a task is performed.
D. an improvement system used to develop new processes or products at Six Sigma levels.
E. a system of statistical procedures for eliminating 100% of the variability in how a task is performed.
29. Six Sigma's DMADV process of define, measure, analyze, design and verify is a particularly good
vehicle for
Aimproving performance when there are small variations in how well an activity is performed; if there
. are wide variations, then the Six Sigma DMVSI process has to be used.
B. achieving 100% control over how a task is performed and eliminating 100% of the variability in how a
task is performed.
C. improving performance when there are wide variations in how well an activity is performed.
D. developing new processes or products at Six Sigma quality levels.
E. improving customer satisfaction whereas Six Sigma DMADV is used to improve manufacturing
processes.
30. The big difference between business process reengineering and continuous improvement programs like
TQM or Six Sigma is that
A reengineering is a tool for installing process organization whereas TQM/Six Sigma concern defect-free
. production methods and delivering world-class customer service.
B reengineering helps create core competencies whereas TQM/Six Sigma are tools for making a core
. competence stronger and more efficient.
Creengineering is a tool for achieving one-time quantum improvement whereas TQM and Six Sigma
. programs aim at incremental improvement (striving for inch-by-inch gains again and again in a neverending stream).
D. business process reengineering requires benchmarking whereas TQM and Six Sigma do not.
Ereengineering represents an effort to totally revamp a firm's value chain whereas TQM looks at
. incrementally improving the performance of two or three targeted value-chain activities.
31. Company strategies and value creating processes can't be effectively executed without internal operating
systems that include:
A. customer data, employee data, supplier/partner data, operations data, and financial performance data.
B. TQM, reengineering, and Six Sigma programs.
C. monetary and non-monetary reward systems.
D. activity based cost accounting, benchmarking, and best practices.
E. All of these.

32. Operating systems that support company strategies and value-creating internal processes include all of the
following except
A. customer database systems.
B. information systems to track supplier/partner/collaborative ally data.
C. human resources systems that maintain employee data.
D. systems to record and report financial performance data.
E. data management systems for undertaking benchmarking, TQM, and Six Sigma quality control.
33. A well-designed reward system
Ais focused on "what to achieve" to be rewarded as opposed to "what to do" And is management's most
. powerful tool for gaining employee commitment to superior strategy execution.
B. should be free of elements that induce stress, anxiety, tension, pressure to perform, and job insecurity.
C. puts the primary emphasis on denying rewards to those who fail to perform tasks in the prescribed
fashion.
D. emphasizes weeding out employees who are consistently low performers.
E.strives for 50-50 balance between positive and negative rewards and 50-50 balance between monetary
and non-monetary rewards.
34. An important consideration in designing a strategy-supportive reward system is to
A. link the payment of all monetary rewards to the company's profitability.
B. employ incentives that will help motivate employees to work hard at performing their assigned duties
and activities.
C. choose those types of rewards and incentives that will focus employees' attention on "what to do."
D. make across-the-board wage and salary increases the cornerstone of monetary rewards.
E. make both monetary and non-monetary rewards integral parts of the reward system.
35. Management's most powerful tool for winning employee commitment to good strategy execution and
operating excellence is
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 properly designed system of rewards and incentives.
E. aggressive use of TQM and Six Sigma quality control programs.
36. The guidelines for designing an incentive compensation system that will help drive successful strategy
execution include
A. making the payoff for meeting or beating performance targets a major, not minor, piece of the total
compensation package.
Bhaving 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 non-monetary incentives and rewarding people for diligently performing their
assigned duties.
37. Which of the following is not a sound guideline for designing a reward and incentive system that helps
promote good strategy execution?
A. The reward system must be administered with scrupulous objectivity and fairness.
B. The payoff for meeting or beating performance targets must be a major, not minor, piece of the total
compensation package.
C. The incentive plan should extend to all managers and all employees, not just top management.
D. Ways must be found to reward deserving non-performers who, for some reason, do not fare well under
the incentive system.
E Make sure that the performance targets each individual or team is expected to achieve involve outcomes
. that the individual or team can personally affect.

38. Which of the following is not characteristic of a compensation and reward system designed to help drive
successful strategy execution?
A. Tying incentives to performance outcomes directly linked to good strategy execution and financial
performance
B. Keeping the time between achieving the target performance outcome and the payment of the reward as
short as possible
C Making sure that the performance targets that each individual or team is expected to achieve involve
. outcomes that the individual or team can personally affect
D. Generous rewards for people who turn in outstanding performances
E A reward system that involves 50 percent non-monetary rewards and a work environment that avoids
. placing pressure on managers and employees to perform at high levels
39. Some of the most important non-monetary approaches to enhancing motivation and helping drive
successful strategy execution include
A. adopting promotion from within policies and acting on suggestions from employees.
B. providing attractive perks and fringe benefits.
C. creating a work atmosphere in which there is genuine sincerity, caring, and mutual respect among
employees and management.
D. using frequent words of praise to recognize employees for commendable performance.
E. All of these.
40. A company's corporate culture is best defined and identified by
A. the strategy and business model that a company has adopted.
B the character of a company's internal work climateas shaped by the company's core values, beliefs,
. business principles, traditions, work practices, and style of operating.
C. its statement of core values and its code of ethics.
D. its internal politics.
E. the traditions that company executives are committed to maintain.
41. The character of a company's corporate culture is a product of
A. the company's core values and business principles.
B. its style of operating and ingrained behaviors and attitudes.
C. the "chemistry" that permeates its work environment.
D. the work practices and behaviors that define "how we do things around here."
E. All of these.
42. Which one of the following is not a fundamental part of a company's culture?
A. The work practices and behaviors that define "how we do things around here"
B. The "chemistry" that permeates its work environment
C. The company's core values and business principles
D. The company's strategic vision, strategic intent, and strategy
E. The style of operating and ingrained behaviors and attitudes
43. Which of the following is not a common trait of an unhealthy company culture?
A. A politicized internal environment
B. Hostility to change and a wariness of people who champion new ways of doing things
C. An aversion to looking outside the company for best practices, new managerial approaches, and
innovative ideas
DAn aversion to incentive compensation, failure to recruit the best and brightest employees, subpar
. support for employee training, overemphasis on working in teams, and low ethical standards
E. A disregard for high ethical standards and an overzealous pursuit of wealth and status on the part of
key executives

44. Which of the following is not an example of an unhealthy company culture?

A. Insular inwardly-focused cultures
B. Change-resistant cultures
C. Unethical and greed-driven cultures
D. Politicized cultures
E. Hyper-adaptive cultures
45. Unhealthy company cultures typically have such characteristics as
A. tight budget controls, overly strict enforcement of longstanding polices and procedures, and low ethical
standards.
B. a preference for conservative strategies, an aversion to incentive compensation, and excessive
emphasis on profitability.
C a politicized internal environment, hostility to change, an insular, inwardly focused culture, and
. unethical or greed-driven behavior on the part of executives.
Doveremphasis on employee empowerment, a complacent approach to building competencies and
. capabilities, no coherent business philosophy, and excessively bureaucratic policies and procedures.
E too little emphasis on innovation, a strong preference for hiring managers from outside the company,
. very few core values and traditions, and a weakly enforced code of ethics.
46. Companies with change-resistant cultures
A. are typically opposed to performance-based incentive compensation and employee empowerment.
Bare prone to be preoccupied with avoiding risks, are unlikely to pursue bold actions to capture emerging
. opportunities, and a widespread aversion to continuous improvement in performing value chain
activities, and prefer following rather than leading market change.
C.are often overly gung-ho about looking outside the company for best practices, new managerial
approaches, and innovative ideas.
D tend to be preoccupied with making sure the company has a safe, follow-the-industry-leader type of
. strategic vision and avoids risky business strategies.
E. are typically run by amoral managers who have little regard for high ethical standards.
47. The hallmarks of a high performance corporate culture include
Afrequently revised and updated values and ethics statements, a deep commitment to employee training,
. and unusually attractive fringe benefit packages for company personnel.
Ba "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.
Ca balanced scorecard approach to measuring performance, strong emphasis on teamwork, strict
. enforcement of company policies and procedures, and incentive compensation for all employees.
Da deep commitment to pioneering new best practices, a preference for being a fast-follower as opposed
. to a first-mover or late-mover (because the risks are more acceptable), and across-the-board bonuses for
all personnel when the company meets or beats stretch objectives.
Ea deep commitment to top-notch quality and superior customer service, dedicated use of TQM and/or
. Six Sigma quality control programs, and the payment of big performance bonuses and stock options.
48. Which one of the following statements about a high performance culture is false?
A. High performance cultures are characterized by a pride in doing things right and a no-excuses sense of
accountability.
BHigh performance cultures often have a low regard for high ethical standards, a strong preference for
. high-risk strategies, and a slow and methodical approach to responding to changes in the marketplace.
C The challenge in creating a high performance culture is to inspire high loyalty and dedication of the part
. of employees, such that they are energized to do things right and.
D. In a high performance culture, there's a razor sharp focus on what needs to be done.
E In high performance cultures, there's a strong sense of involvement on the part of company personnel
. and emphasis on individual initiative and creativity.

49. The hallmark of an adaptive corporate culture is

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 systemsespecially the payment of bonuses
and stock options.
50. Which of the following statements about adaptive corporate cultures is false?
AThe hallmark of adaptive corporate cultures is willingness on the part of organizational members to
. accept change and take on the challenge of introducing and executing new strategies.
BThe standout cultural traits are 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.
C. Change is willingly embraced by management and non-managerial employees.
D. Adaptive cultures are exceptionally well-suited to companies with fast-changing strategies and market
environments.
EFor an adaptive culture to remain intact over time, top management must orchestrate organizational
. changes in a manner that (1) do not compromise core values and long-standing business principles and
(2) tries to satisfy all their legitimate interests simultaneously.
51. The single most visible factor that distinguishes successful culture-change efforts from failed attempts
is
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.
52. Changing a problem culture
A is one of the toughest managerial tasks because of the tendency of company personnel to cling to
. familiar practices and ways of doing things.
B. is best done by instituting an aggressive program to train employees in the ways and beliefs of the new
culture to be implanted.
C. is best done by selecting a team of key employees to lead the culture change effort.
D. requires writing a new statement of core values and describing in writing the kind of culture that is
needed.
Ecan be done quickly only if managers tie incentive compensation to exhibiting the desired new cultural
. behaviors and if managers visibly praise people who exhibit the desired new cultural traits.
53. The place for management to begin in trying to change a problem culture is
A. by selling company personnel on the need for a new set of behaviors and work practices.
B. by spending heavily on programs to train employees in the ways and beliefs of the new culture to be
implanted.
C. to visibly praise and reward people who exhibit traits and behaviors that undermine the existing
culture.
D. writing a new values statement and describing in highly motivating terms the kind of culture that is
needed.
E. to institute incentive compensation programs that generously reward employees for adopting best
practices.

54. In moving to alter a problem culture, management should

A. identify which aspects of the present culture are supportive of good strategy execution and which ones
are not.
B. specify what new actions, behaviors, and work practices should be prominent in the "new" culture.
C. talk openly about the problems of the present culture and how new behaviors will improve
performance.
D.employ visible, forceful actionsboth substantive and symbolicto ingrain a new set of behaviors,
practices and cultural norms.
E. All of these.
55. When trying to change a problem culture, management should undertake such steps as
A. selecting a team of key employees to lead the culture change effort and design a plan for cultural
change.
B. identifying which aspects of the present culture are supportive of good strategy execution and which
ones are not.
C drawing up an action plan to change the present culture and then persuading company personnel why
. this plan of action is good and will be successful.
D conducting an employee survey to determine the organization's cultural norms and what company
. personnel like and dislike about the current culture.
E. employing a consultant with expertise in culture change and following his/her advice on how to
proceed.
56. Which one of the following is a substantive culture-changing action that a company's managers can
undertake to alter a problem culture?
A. Identifying aspects of the present culture that pose problems.
BRevising policies and procedures in ways that will help drive cultural change and replacing senior
. executives who may be stonewalling needed organizational and cultural changes.
C. Empowering employees to adopt whatever new work practices they believe will be an improvement.
D. Making a concerted effort to turn the company's core competencies into distinctive competencies.
E Shifting from decentralized to centralized decision-making so as to give senior executives more
. authority and control in driving cultural change.
57. Which one of the following is not a substantive culture-changing action that a company's managers can
undertake to alter a problem culture?
A Promoting individuals who have stepped forward to advocate the shift to a different culture and who
. can serve as role models for the desired cultural behavior.
B. Revising policies and procedures in ways that will help drive cultural change.
C. Screening all candidates for new positions carefully, hiring only those who appear to fit in with the
new culture.
DUrging company personnel to search outside the company for work practices and operating approaches
. that may be an improvement over what the company is presently doing.
E Designing compensation incentives that boost the pay of teams and individuals who display the desired
. cultural behaviors and hit change-resisters in the pocketbook.
58. Leading the strategy execution process requires
A. senior managers to be out in the field, seeing for themselves how well operations are going.
B. company managers to be diligent and adept in ferreting out problems and issues.
C. managers to push for better results when the strategy execution effort is not going well.
D. managers to have good business judgment in deciding what actions to take when corrective actions are
necessary.
E. All of the above

59. Identify 4 tactics that are common among companies dedicated to staffing jobs with the best people they
can find.

60. 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?

61. A decentralized organization structure is more likely to further the cause of good strategy execution than
is a centralized organization structure. True or false? Justify your answer.

62. What is meant by empowerment of employees? How does it differ from delegation of authority? In what
ways can empowerment of employees aid the cause of good strategy execution?

63. Why does a company's budget need to be closely linked to the needs of good strategy execution? Why
might a change in strategy call for budget reallocations?

64. Identify and describe two ways that policies and procedures aid the task of implementing and executing
strategy?

65. What is the value of striving for continuous improvement in internal processes? How does TQM differ
from business process reengineering?

66. What three principles underlie the statistical thinking of Six Sigma quality control programs?

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

68. The use of incentives and rewards is the single most powerful tool at management's disposal to win
strong employee commitment to carrying out the strategic plan. True or false? Explain.

69. Identify at least 4 guidelines for creating incentive compensation systems that link employee behavior to
organizational objectives.

70. Give at least 3 non-monetary 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.

71. What is meant by the term corporate culture? Why is corporate culture an important factor in
implementing and executing strategy?

72. Briefly identify 3 types of unhealthy corporate cultures.

73. What are the characteristics of unhealthy cultures?

74. What are the distinctive features of adaptive corporate cultures?

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

76. Give two examples of "symbolic" culture-changing actions and two examples of "substantive" culturechanging actions.

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

10 Key
1. (p. 213-214) C
2. (p. 213-214) B
3. (p. 215) D
4. (p. 216) B
5. (p. 216) B
6. (p. 216) A
7. (p. 216-217) C
8. (p. 217) B
9. (p. 218) B
10. (p. 218) D
11. (p. 219) C
12. (p. 219) A
13. (p. 219) D
14. (p. 220) A
15. (p. 220) A
16. (p. 220-221) C
17. (p. 221-222) D
18. (p. 222) A
19. (p. 222) C
20. (p. 222-224) E
21. (p. 222) B
22. (p. 225) A
23. (p. 223) A
24. (p. 223) C
25. (p. 223) C
26. (p. 223-224) C
27. (p. 224) B
28. (p. 223-224) A
29. (p. 224) D
30. (p. 225) C
31. (p. 226) A
32. (p. 226) E
33. (p. 226) A
34. (p. 226-227) E
35. (p. 226-227) D
36. (p. 227) A

37. (p. 227) D

38. (p. 227) E
39. (p. 228) E
40. (p. 230) B
41. (p. 230) E
42. (p. 230-231) D
43. (p. 230) D
44. (p. 230) E
45. (p. 230) C
46. (p. 231) B
47. (p. 232) B
48. (p. 232) B
49. (p. 232) C
50. (p. 232-233) B
51. (p. 233) B
52. (p. 233) A
53. (p. 234) A
54. (p. 234) E
55. (p. 234) B
56. (p. 235) B
57. (p. 235) D
58. (p. 236) E
59. (p. 216-217) Answers will vary.
60. (p. 219-220) Answers will vary.
61. (p. 219) Answers will vary.
62. (p. 219) Answers will vary.
63. (p. 220-221) Answers will vary.
64. (p. 221) Answers will vary.
65. (p. 222-223) Answers will vary.
66. (p. 223-224) Answers will vary.
67. (p. 225-226) Answers will vary.
68. (p. 226) Answers will vary.
69. (p. 227) Answers will vary.
70. (p. 228) Answers will vary.
71. (p. 230-231) Answers will vary.
72. (p. 230-232) Answers will vary.
73. (p. 230-235) Answers will vary.
74. (p. 232-233) Answers will vary.

75. (p. 233-236) Answers will vary.

76. (p. 235) Answers will vary.
77. (p. 236) Answers will vary.

10 Summary
Category
AACSB: Group/Individual Dynamics
AACSB: Technology/Technology Influence
AACSB: Value Creation
Difficulty: Easy
Difficulty: Hard
Difficulty: Medium
Gamble - Chapter 10
Learning Objective: 1
Learning Objective: 2
Learning Objective: 3
Learning Objective: 4
Learning Objective: 5
Learning Objective: 6
Learning Objective: 7
Learning Objective: 8
Topic: Adaptive Cultures
Topic: Allocating Resources to Strategy-Critical Activities
Topic: Building Dynamic Capabilities and Core Competencies
Topic: Changing a Problem Culture
Topic: Corporate Cultures and Superior Strategy Execution
Topic: Guidelines for Designing Monetary Incentive Systems
Topic: High-Performance Cultures
Topic: Installing Information and Operating Systems
Topic: Instituting Strategy-Supportive Policies and Procedures
Topic: Leading the Strategy-Execution Process
Topic: Matching Organizational Structure to the Strategy
Topic: Nonmonetary Rewards
Topic: Staffing the Organization
Topic: Striving for Continuous Improvement in Internal Processes
Topic: The Principal Managerial Components of the Strategy Execution Process
Topic: Unhealthy Corporate Cultures
Topic: Unhealthy Cultures
Topic: Using Rewards and Incentives to Promote Better Strategy Execution

# of Questions
45
3
29
9
7
61
77
18
3
3
14
3
10
25
1
3
3
1
9
4
4
2
2
3
2
9
2
6
15
2
4
2
4