Test Bank – Essentials of Strategic
Management: The Quest for Competitive
Advantage | Chapter 10
Once company managers have decided on a strategy, the emphasis turns to
converting the strategy into actions and good results.
empowering employees to revise and reorganize value chain activities to match the strategy.
establishing policies and procedures that instruct company personnel in the ways and means of
executing the strategy.
developing a detailed implementation plan that sets forth exactly what every department and every
manager needs to do to proficiently execute the company’s strategy.
,2. Award: 1.00 po int
building the core competencies and competitive capabilities needed to execute the strategy.
Once managers have decided on a strategy, the emphasis turns to converting it into actions and good
results.
Strategy execution
consists of choosing among broad or narrow low cost and differentiation strategies to compete
against rivals.
involves selecting a capable management team.
requires revamping the value chain in order to maximize operating efficiency.
requires deciding which core competencies and value chain activities to leave as is and which ones
to overhaul and improve.
depends on management’s ability to direct organizational change.
Successful strategy execution depends on management’s ability to direct organizational change and do a
good job of allocating resources, building and strengthening competitive capabilities, instituting strategy-
supportive policies, improving processes and systems, motivating and rewarding people, creating and
nurturing a strategy-supportive culture, and consistently meeting or beating performance targets.
Good strategy execution involves
continuous improvements in the value chain in order to maximize operating efficiency.
,3. Award: 1.00 po int
selecting a capable management team.
making choices among broad or narrow low cost and differentiation strategies to compete against
rivals.
only senior-level managers to be accomplished on a timely basis.
team participation to perform strategy-critical activities in light of prevailing circumstances.
Good strategy execution requires a team effort. All managers have strategy execution responsibility in
their areas of authority, and all employees are active participants in the strategy execution. In this process,
it is middle and lower-level managers who must see to it that front-line employees and work groups
competently perform the strategy-critical activities that allow companywide performance targets to be
met. Strategy execution requires every manager to think through the answer to the questions “What does
my area have to do to implement its part of the strategic plan, and what should I do to get these things
accomplished effectively and efficiently?”
What does a successful strategy execution require?
Little consensus building is required, despite the magnitude of the proposed changes, because
employees know the benefits to be gained from the planning process.
A team effort is required, with all managers having strategy executing responsibility in their areas of
authority, and all employees should be active participants in the strategy execution process.
Additional investments in capital projects are necessary, rather than adding to a company’s talent
base and building intellectual capital.
Making choices among broad or narrow low cost and differentiation strategies to compete against
rivals is a requirement.
Incremental changes to current operating practices should be implemented to ensure existing
resource capabilities are not impacted too severely.
, 4. Award: 1.00 po int
Good strategy execution requires a team effort. All managers have strategy-executing responsibility in
their areas of authority, and all employees are active participants in the strategy execution process.
Imagine that you are about to become the manager of a local chain consisting of four upscale restaurants.
To prepare for the position, you have been reviewing the eight managerial tasks of successful strategy
execution. What would not be among those tasks?
creating and nurturing a strategy-supportive culture across all restaurant locations
developing and meeting (or exceeding) performance targets consistently
managing the people, talents, and business processes of an operations-driven restaurant chain
directing organizational change and achieving continuous improvement in restaurant operations
and business processes at and across all locations
focusing on how market conditions impact your restaurant chain’s resources and capabilities
Executing strategy is an action-oriented, make-things-happen task that tests a manager’s ability to direct
organizational change, achieve continuous improvement in operations and business processes, create and
nurture a strategy-supportive culture, and consistently meet or beat performance targets.
See Figure 10.1. Eight managerial tasks crop up repeatedly in company efforts to execute strategy, not one
of which includes decisions on core competencies and value chain activities. The correct answers include:
(1) building an organization—consisting of the capabilities, people, and structure needed to execute the
strategy successfully; (2) allocating ample resources to strategy-critical activities—budget reallocations
and resource-shifting (growing or downsizing strategic business units); (3) ensuring that policies and
procedures facilitate rather than impede effective strategy execution—enforcing consistency, supporting
change, and promoting a can-do work climate; (4) adopting process management programs that drive
continuous improvement in how strategy execution activities are performed—continuous improvement
via business process reengineering, TQM, and Six Sigma; (5) installing information and operating systems
that enable company personnel to perform essential activities—tracking real-time operating and
performance data; (6) tying rewards directly to the achievement of performance objectives—both
substantive (financial compensation) and symbolic (culture-affirming); (7) fostering a corporate culture
that promotes good strategy execution—transforming an unhealthy culture into an adaptive or high-
Management: The Quest for Competitive
Advantage | Chapter 10
Once company managers have decided on a strategy, the emphasis turns to
converting the strategy into actions and good results.
empowering employees to revise and reorganize value chain activities to match the strategy.
establishing policies and procedures that instruct company personnel in the ways and means of
executing the strategy.
developing a detailed implementation plan that sets forth exactly what every department and every
manager needs to do to proficiently execute the company’s strategy.
,2. Award: 1.00 po int
building the core competencies and competitive capabilities needed to execute the strategy.
Once managers have decided on a strategy, the emphasis turns to converting it into actions and good
results.
Strategy execution
consists of choosing among broad or narrow low cost and differentiation strategies to compete
against rivals.
involves selecting a capable management team.
requires revamping the value chain in order to maximize operating efficiency.
requires deciding which core competencies and value chain activities to leave as is and which ones
to overhaul and improve.
depends on management’s ability to direct organizational change.
Successful strategy execution depends on management’s ability to direct organizational change and do a
good job of allocating resources, building and strengthening competitive capabilities, instituting strategy-
supportive policies, improving processes and systems, motivating and rewarding people, creating and
nurturing a strategy-supportive culture, and consistently meeting or beating performance targets.
Good strategy execution involves
continuous improvements in the value chain in order to maximize operating efficiency.
,3. Award: 1.00 po int
selecting a capable management team.
making choices among broad or narrow low cost and differentiation strategies to compete against
rivals.
only senior-level managers to be accomplished on a timely basis.
team participation to perform strategy-critical activities in light of prevailing circumstances.
Good strategy execution requires a team effort. All managers have strategy execution responsibility in
their areas of authority, and all employees are active participants in the strategy execution. In this process,
it is middle and lower-level managers who must see to it that front-line employees and work groups
competently perform the strategy-critical activities that allow companywide performance targets to be
met. Strategy execution requires every manager to think through the answer to the questions “What does
my area have to do to implement its part of the strategic plan, and what should I do to get these things
accomplished effectively and efficiently?”
What does a successful strategy execution require?
Little consensus building is required, despite the magnitude of the proposed changes, because
employees know the benefits to be gained from the planning process.
A team effort is required, with all managers having strategy executing responsibility in their areas of
authority, and all employees should be active participants in the strategy execution process.
Additional investments in capital projects are necessary, rather than adding to a company’s talent
base and building intellectual capital.
Making choices among broad or narrow low cost and differentiation strategies to compete against
rivals is a requirement.
Incremental changes to current operating practices should be implemented to ensure existing
resource capabilities are not impacted too severely.
, 4. Award: 1.00 po int
Good strategy execution requires a team effort. All managers have strategy-executing responsibility in
their areas of authority, and all employees are active participants in the strategy execution process.
Imagine that you are about to become the manager of a local chain consisting of four upscale restaurants.
To prepare for the position, you have been reviewing the eight managerial tasks of successful strategy
execution. What would not be among those tasks?
creating and nurturing a strategy-supportive culture across all restaurant locations
developing and meeting (or exceeding) performance targets consistently
managing the people, talents, and business processes of an operations-driven restaurant chain
directing organizational change and achieving continuous improvement in restaurant operations
and business processes at and across all locations
focusing on how market conditions impact your restaurant chain’s resources and capabilities
Executing strategy is an action-oriented, make-things-happen task that tests a manager’s ability to direct
organizational change, achieve continuous improvement in operations and business processes, create and
nurture a strategy-supportive culture, and consistently meet or beat performance targets.
See Figure 10.1. Eight managerial tasks crop up repeatedly in company efforts to execute strategy, not one
of which includes decisions on core competencies and value chain activities. The correct answers include:
(1) building an organization—consisting of the capabilities, people, and structure needed to execute the
strategy successfully; (2) allocating ample resources to strategy-critical activities—budget reallocations
and resource-shifting (growing or downsizing strategic business units); (3) ensuring that policies and
procedures facilitate rather than impede effective strategy execution—enforcing consistency, supporting
change, and promoting a can-do work climate; (4) adopting process management programs that drive
continuous improvement in how strategy execution activities are performed—continuous improvement
via business process reengineering, TQM, and Six Sigma; (5) installing information and operating systems
that enable company personnel to perform essential activities—tracking real-time operating and
performance data; (6) tying rewards directly to the achievement of performance objectives—both
substantive (financial compensation) and symbolic (culture-affirming); (7) fostering a corporate culture
that promotes good strategy execution—transforming an unhealthy culture into an adaptive or high-
