BSG Exam 2
Study online at https://quizlet.com/_ct2ex7
1. Which of the following is not among the ways that strong parenting capabil-
ities can help a company committed to a strategy of unrelated diversification
build shareholder value?: Focus on acquiring businesses that offer the best opportunities for achieving a
rapid market growth and that have a big competitive advantage over rivals (thereby satisfying the industry attractiveness
and competitive strength test)
2. Strategic fit between two or more businesses exists when one or more activi-
ties comprising the value chains of different businesses are sufficiently similar
to present opportunities: for combining their related value chain activities into a single operation to
achieve lower costs and/or cross-business collaboration to create new or stronger competitively valuable resources
and capabilities that will be mutually beneficial.
3. The task of developing and strengthening a company's resources and capa-
bilities.: is sometimes best accomplished via acquisition or merger with a company having the desired resources
and capabilities or by forming collaborative partnerships with suppliers or other companies having the expertise or
capabilities the company lacks internally.
4. The key to leveraging a core competence into a distinctive competence (or a
capability into a competitively superior capability) is: concentrating more effort and more
talent than rivals on deepening and strengthening the competence or capability to achieve the dominance needed for
competitive advantage.
5. A key factor in achieving good internal cross-unit coordination is: getting managers
of execution-critical activities to voluntarily but conscientiously live up to their commitments to coordinate closely with
sister organizational units.
6. Which of the following statements about maximizing the competitive pow-
er of capabilities and competencies by dynamically managing a company's
resource pool is false?: Most companies keep their portfolio of competencies and capabilities fresh and
dynamic by either acquiring another company with recently remodeled resources and capabilities or by entering into
collaborative partnerships with suppliers that are highly regarded for their innovativeness and cutting-edge know-how.
7. Delegating greater authority to subordinate managers and employees: creates
a more horizontal organization structure with fewer management layers and enables shorter organizational response
times because empowered employees develop their own answers and action plans rather than having to go up the
organizational ladder and wait for instructions from above about what to do.
8. Which of the following statements regarding the importance of making strat-
egy-critical value chain activities the main building blocks of the organization
1/6
, BSG Exam 2
Study online at https://quizlet.com/_ct2ex7
structure is false?: It is generally agreed that the best organizational structure for a company depends on
which one of the five generic competitive strategies the company has opted to pursue.
9. Which of the following statements about implementing and executing a
company's strategy is true?: Good strategy execution requires a team effort; all managers have strate-
gy-executing responsibility in their areas of authority, and all employees are active participants in the strategy execution
process.
10. Building an organization capable of good strategy execution entails: structuring
the organization and work effort, staffing the organization, and acquiring, developing, and strengthening the resources
and capabilities important to good strategy execution.
11. Which of the following is not among the principal managerial components
of the strategy execution process?: Revamping the value chain in a manner that maximizes operating
efficiency.
12. The disadvantages of a centralized organizational structure include: longer
response times by those closest to the situation because they must go up the chain of command and allow higher-level
managers to decide (or at least approve) what actions to take.
13. As shown in Figure 10.3, structuring a company's work effort in ways that
promote successful strategy execution does not include which of the follow-
ing?: How to organize the performance of value chain activities in ways that lower operating costs below those of
rivals.
14. Which of the following is not among the chief advantages of a decentralized
organizational structure?: Making it easy to fix accountability when things do not go well.
15. The two best signs of good strategy execution are: Whether the company has attained
real proficiency in performing strategy-critical value chain activities and is meeting or beating its performance targets.
16. Which one of the following is not an execution-related benefit of outsourc-
ing?: Reducing the risk of being stuck with stale or obsolete competencies and capabilities.
17. Which of the following is generally not among the practices that companies
use to staff jobs with the best people they can find and retain them?: Weeding out
the 15% lowest performing employees each year and replacing the with more talented and motivated job applicants.
18. The first and most important rule in designing an effective reward structure
is to: make measures of good, business performance and good strategy execution the dominating basis for
evaluating individual and group efforts and for awarding incentive payments.
2/6
Study online at https://quizlet.com/_ct2ex7
1. Which of the following is not among the ways that strong parenting capabil-
ities can help a company committed to a strategy of unrelated diversification
build shareholder value?: Focus on acquiring businesses that offer the best opportunities for achieving a
rapid market growth and that have a big competitive advantage over rivals (thereby satisfying the industry attractiveness
and competitive strength test)
2. Strategic fit between two or more businesses exists when one or more activi-
ties comprising the value chains of different businesses are sufficiently similar
to present opportunities: for combining their related value chain activities into a single operation to
achieve lower costs and/or cross-business collaboration to create new or stronger competitively valuable resources
and capabilities that will be mutually beneficial.
3. The task of developing and strengthening a company's resources and capa-
bilities.: is sometimes best accomplished via acquisition or merger with a company having the desired resources
and capabilities or by forming collaborative partnerships with suppliers or other companies having the expertise or
capabilities the company lacks internally.
4. The key to leveraging a core competence into a distinctive competence (or a
capability into a competitively superior capability) is: concentrating more effort and more
talent than rivals on deepening and strengthening the competence or capability to achieve the dominance needed for
competitive advantage.
5. A key factor in achieving good internal cross-unit coordination is: getting managers
of execution-critical activities to voluntarily but conscientiously live up to their commitments to coordinate closely with
sister organizational units.
6. Which of the following statements about maximizing the competitive pow-
er of capabilities and competencies by dynamically managing a company's
resource pool is false?: Most companies keep their portfolio of competencies and capabilities fresh and
dynamic by either acquiring another company with recently remodeled resources and capabilities or by entering into
collaborative partnerships with suppliers that are highly regarded for their innovativeness and cutting-edge know-how.
7. Delegating greater authority to subordinate managers and employees: creates
a more horizontal organization structure with fewer management layers and enables shorter organizational response
times because empowered employees develop their own answers and action plans rather than having to go up the
organizational ladder and wait for instructions from above about what to do.
8. Which of the following statements regarding the importance of making strat-
egy-critical value chain activities the main building blocks of the organization
1/6
, BSG Exam 2
Study online at https://quizlet.com/_ct2ex7
structure is false?: It is generally agreed that the best organizational structure for a company depends on
which one of the five generic competitive strategies the company has opted to pursue.
9. Which of the following statements about implementing and executing a
company's strategy is true?: Good strategy execution requires a team effort; all managers have strate-
gy-executing responsibility in their areas of authority, and all employees are active participants in the strategy execution
process.
10. Building an organization capable of good strategy execution entails: structuring
the organization and work effort, staffing the organization, and acquiring, developing, and strengthening the resources
and capabilities important to good strategy execution.
11. Which of the following is not among the principal managerial components
of the strategy execution process?: Revamping the value chain in a manner that maximizes operating
efficiency.
12. The disadvantages of a centralized organizational structure include: longer
response times by those closest to the situation because they must go up the chain of command and allow higher-level
managers to decide (or at least approve) what actions to take.
13. As shown in Figure 10.3, structuring a company's work effort in ways that
promote successful strategy execution does not include which of the follow-
ing?: How to organize the performance of value chain activities in ways that lower operating costs below those of
rivals.
14. Which of the following is not among the chief advantages of a decentralized
organizational structure?: Making it easy to fix accountability when things do not go well.
15. The two best signs of good strategy execution are: Whether the company has attained
real proficiency in performing strategy-critical value chain activities and is meeting or beating its performance targets.
16. Which one of the following is not an execution-related benefit of outsourc-
ing?: Reducing the risk of being stuck with stale or obsolete competencies and capabilities.
17. Which of the following is generally not among the practices that companies
use to staff jobs with the best people they can find and retain them?: Weeding out
the 15% lowest performing employees each year and replacing the with more talented and motivated job applicants.
18. The first and most important rule in designing an effective reward structure
is to: make measures of good, business performance and good strategy execution the dominating basis for
evaluating individual and group efforts and for awarding incentive payments.
2/6
