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The advantages of a centralized organization structure include - (answer)Reduced potential for
conflicting actions and decisions on the part of lower-level personnel, facilitation of strong top
management leadership in crisis situations, and tight control by the manager in charge-it is easy
to know who is accountable when things do not go well
One of the disadvantages of a decentralized structure featuring employee empowerment is -
(answer)A loss of "full control" on the part of top management (because higher-level managers
may be unaware of actions taken by empowered employees under their supervision).
Which of the following is not among the principal managerial components of the strategy
execution process? - (answer)Selecting energetic and motivated employees, training employees
properly, and doing an effective job of empowering employees
Which of the following is not a shortcoming or disadvantage of a decentralized organizational
structure? - (answer)Raises employee anxiety levels, thus discouraging many company personnel
from being deeply involved in the business and lowering their motivation levels
,Management's handling of the process of implementing and executing a company's strategy can
be considered successful - (answer)If a company is meeting or beating its performance targets
and has attained real proficiency in performing strategy critical value chain activities
Which one of the following is not part of organizing a company's work effort in ways that
promote successful strategy execution? (A summary of the key components of organizing the
work effort appears in Figure 10.3.) - (answer)How to organize the performance of value chain
activities in ways that produce greater product differentiation versus the products of rivals
Which of the following is the best example of related diversification? - (answer)A producer of
golf clubs and golf bags acquiring a maker of golf shoes and golf apparel
Which one of the following is not among the outcomes that corporate executives should pursue
in order for a strategy of unrelated diversification to produce companywide financial results
above and beyond what the businesses could generate operating as stand-alone entities? -
(answer)Focus on acquiring businesses that offer the best opportunities for achieving rapid
market growth and that have a big competitive advantage over rivals (thereby satisfying the
industry attractiveness and competitive strength tests).
, A business unit's location in the nine-cell industry attractiveness-competitive strength matrix -
(answer)Signals whether each business' priority for receiving new investment capital and other
resources from its corporate parent should be high, medium, or low
Which of the following is not one of the appeals of related diversification? - (answer)It is
particularly well-suited for minimizing business risk and capturing valuable industry
attractiveness fits.
Economies of scope - (answer)are cost reductions that flow from operating in multiple related
businesses.
A "cash hog" type of business - (answer)Generates cash flows that are too small to fully fund its
operations and growth—such businesses require periodic cash infusions by the corporate parent
to provide additional working capital and finance new capital investment
Which of the following are negatives or disadvantages of pursuing unrelated diversification
strategies? - (answer)Demanding managerial requirements