BUSINESS STRATEGY EXAM III UPDATED
QUESTIONS AND CORRECT ANSWERS
◉ The three components of building a capable organization are:
A. making periodic changes in the firm's internal organization to
keep people from getting into a comfortable rut, instituting a
decentralized approach to decision making, and developing the
appropriate competencies and capabilities.
B. hiring a capable top management team, empowering
employees, and establishing a strategy-supportive corporate
culture.
C. putting a centralized decision-making structure in place,
determining who should have responsibility for each value chain
activity, and aligning the corporate culture with key policies,
procedures, and operating practices.
D. staffing the organization, acquiring, developing, and
strengthening key resources and competitive capabilities, and
structuring the organization and work effort.
E. optimizing the number of core competencies and competitive
capabilities, making sure that all managers and employees ar
Answer: D!
◉ Managerial actions to develop core competencies and
competitive capabilities internally generally take one of two
forms. What are they?
,A. Either strengthening the company's base of skills, knowledge,
and experience or coordinating and integrating the efforts of
various work groups and departments.
B. Either putting in high incentive bonuses to reward individual
employees who train hard to develop the desired capability or
launching an extensive training effort to develop the capability
quickly with newly hired employees.
C. Either using benchmarking and the adoption of best practices
to imitate a capability that rivals have already developed or
empowering a team of employees to develop the capability
however they best fit.
D. Either using developed dynamic capabilities or acquiring the
capability from outside sources.
E. All of these.
Answer: A!!!
◉ In order to coordinate and control the complex set of activities,
managers must ensure:
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 ensure economies of scale benefits.
D. they can orchestrate the process with forceful administration
and political maneuvering.
, E. All of these.
Answer: B!!1
◉ A disadvantage of the centralized organization is:
A. it lengthens response times by those closest to the market
conditions because they must seek approval for their actions.
B. it does not encourage responsibility among lower-level
managers and rank-and-file employees.
C. it discourages lower-level managers and rank-and-file
employees from exercising any initiative.
D. it diverts authority away from those closest to, and most
knowledgeable about, the situation for actions.
E. All of these.
Answer: E!!
◉ The three dimensions of performance are often referred to in
terms of the "three pillars" and include:
A. People, planet, and profit.
B. People, which refers to the various social initiatives that make
up the CSR strategies.
C. Planet, which refers to a firm's ecological impact and
environmental practices.
D. Profit encompasses the economic impact (value and costs) that
the company has on society.
E. All of these.
QUESTIONS AND CORRECT ANSWERS
◉ The three components of building a capable organization are:
A. making periodic changes in the firm's internal organization to
keep people from getting into a comfortable rut, instituting a
decentralized approach to decision making, and developing the
appropriate competencies and capabilities.
B. hiring a capable top management team, empowering
employees, and establishing a strategy-supportive corporate
culture.
C. putting a centralized decision-making structure in place,
determining who should have responsibility for each value chain
activity, and aligning the corporate culture with key policies,
procedures, and operating practices.
D. staffing the organization, acquiring, developing, and
strengthening key resources and competitive capabilities, and
structuring the organization and work effort.
E. optimizing the number of core competencies and competitive
capabilities, making sure that all managers and employees ar
Answer: D!
◉ Managerial actions to develop core competencies and
competitive capabilities internally generally take one of two
forms. What are they?
,A. Either strengthening the company's base of skills, knowledge,
and experience or coordinating and integrating the efforts of
various work groups and departments.
B. Either putting in high incentive bonuses to reward individual
employees who train hard to develop the desired capability or
launching an extensive training effort to develop the capability
quickly with newly hired employees.
C. Either using benchmarking and the adoption of best practices
to imitate a capability that rivals have already developed or
empowering a team of employees to develop the capability
however they best fit.
D. Either using developed dynamic capabilities or acquiring the
capability from outside sources.
E. All of these.
Answer: A!!!
◉ In order to coordinate and control the complex set of activities,
managers must ensure:
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 ensure economies of scale benefits.
D. they can orchestrate the process with forceful administration
and political maneuvering.
, E. All of these.
Answer: B!!1
◉ A disadvantage of the centralized organization is:
A. it lengthens response times by those closest to the market
conditions because they must seek approval for their actions.
B. it does not encourage responsibility among lower-level
managers and rank-and-file employees.
C. it discourages lower-level managers and rank-and-file
employees from exercising any initiative.
D. it diverts authority away from those closest to, and most
knowledgeable about, the situation for actions.
E. All of these.
Answer: E!!
◉ The three dimensions of performance are often referred to in
terms of the "three pillars" and include:
A. People, planet, and profit.
B. People, which refers to the various social initiatives that make
up the CSR strategies.
C. Planet, which refers to a firm's ecological impact and
environmental practices.
D. Profit encompasses the economic impact (value and costs) that
the company has on society.
E. All of these.
