Learn Smart 10 Flashcards
A company may choose to outsource certain value chain activities because
- another company may have the capability to perform those activities more efficiently
- outsourcing an activity may allow a company to concentrate its efforts on activities that are at the core pf its strategy
A Companys formal and informal arrangements of tasks, responsibilities, and lines of authority and communications make up the companys _______ structure
organizational
Staffing the organization of a company involves
assembling a management team and hiring employees
the type of organizational structure that best suits a firm depends on which of the following?
firms size and complexity
which of the following groups are involved in executing a new business strategy?
- mid level managers
- senior managers
which of the following is an example of outsourcing a value chain activity?
a winery contracts farmers to produce grapes
Acquiring capabilities through a merger or an acquisition
often allows a company to add capabilities more quickly than developing new capabilities internally
Cross-business strategic fit can be defined as
the efficient coordination of individual business units in a corporation?
which of the following statements regarding the execution of a strategy are true?
- some managers have more successful than other managers with certain approaches to implementing new strategy in a high-performance company
- many of the policies and procedures in a business strategy need to be customized to fit the particular of a companys situation
which of the following are characteristic of a well managed business network structure?
- it often has one firm playing the central role of coordinating activity among partners
- it encourages cooperation and collaboration among partners
which of the following statements about delegating authority in a company is most accurate?
top managers have a variety of options when considering how much authority to delegate to people at lower levels of the organization
some regularly used methods of capability building include
- merging with other companies
- establishing partnerships with other companies
- developing capabilities within the company
When assembling a strong management team, it is crucial to fill positions with more people who
- have experience delivering results
- are clear thinkers
which of the following are ways that a company can access a capability through a collaborative partnership?
- by outsourcing the value chain activity in which the company’s capabilities are substandard
- by engaging in a joint venture with another firm that has a complementary set of capabilities
- by collaborating with a company, internalizing its methods and acquiring its capabilities?
What are three key actions required to build an organization capable of good strategy 3execution?
finding and growing the needed resource and skills necessary for strong strategy execution
- developing strong management and finding the right employees for the organization
- implementing sound structure within the organization
a substandard management team is likely to
waste the effort of the people working under them
which of the following correctly describes the two extremes in organizational decision making?
- to centralize decision making, which gives top executives considerable control over daily operations
- to decentralize decision making which can gives mid level managers more authority to make decisions
when attempting to collaborate through a joint venture or strategic alliance, a company should
select a partner based on the degree of compatibility between the two companies
what are the four basic types of organizational structure
- functional
- matrix
- multi divisional
- simple structure
the process of executing strategy
usually involves all value chain activities
in a diversified company, the corporate parent
may need to centralize operations to achieve a cross business strategic fit among its separate businesses
which of the following statements about a functional organizational structure are true?
- functional structures are known as departmental structures
- the main advantages structures over simple structure is greater task specialization
managers can accelerate the process of capability building by
developing “stretch objectives”
Which of the following are risks for a company that transfers capabilities through mergers or acquisitions?
- the new company may experience a prolonged slump in stock price if the transfer process does not go smoothly
- incompatibilities between the two formerly separate companies may disrupt the transfer process
Which of the following statements decentralized organizational structures?
mid-level managers front line employees are inclined to show initiative and be more productive in decentralized systems
which of following are are advantages of a multi-divisional organizational structure?
- improved decision making within each division
- a hierarchical structure that allows executives to oversee a diverse set of operations
when implementing a business strategy a manager needs the skill to
- integrate thee work of different groups into a cohesive whole
- build a consensus and keep projects moving
which of the following scenarios best corresponds to the disadvantage of decentralized organizational systems?
quarterly profits fall because of minimal collaboration among different units in the company
the many roles of a relationship manager include which of the following ?
- facilitating communication and cooperation
- getting the right people together for an initiative
which of the following statements accurately a discharge of centralized decision making?
a business with a centralized decision making structure may be slow to respond to changing market conditions
developing an organizational capability into a tried and true competence requires
- maintaining appropriate levels of resource investment
- mastering the ability through repetition and sustained time on task
the main disadvantage of a multi divisional business structure is that it can
inhibit cross business collaboration
the bigger the corporation the more strategy execution depends on
operating managers who direct the implementation of changes at the lower levels of the company
When devising an action agenda, each manager within an organization needs to determine
- what needs to be accomplished in his or her area of responsibility in order to carry out the strategy
- how to accomplish the various things that must get done in order to execute the strategy
During the early period of capability, progress is often
fitful and delayed by mistakes
In addition to helping companies develop strategy-critical competencies, outsourcing can also help a company
- eliminate bureaucracies that can stall business processes
- adopt to changes in the market quickly
To match a structure to strategy effectively, a strategy implementer does which of the following?
- picks an organizational design and alters the design appropriately to meet the company’s needs
- supplements the organizational designs with task forces and teams to facilitate coordination
- sets up the communication and reporting mechanisms that will best help the company execute its strategy
Which of the following statements about multi-divisional organization structures are true?
- each division within a multi-divisional structure is essentially a business
- the individual within a multi-divisional organization often operate as independent profit centers
When setting an action agenda for implementing a business strategy, a business manager should begin by
assessing what the organization needs to do differently in order to carry out the strategy
which of the following statements regarding the matrix organizational structure is true?
An employee in a matrix structure may be required to report to several different managers
Outsourcing can help
- consumer electronics companies get next generation products to market ahead of the competition
- car companies produce new models more quickly
to help meet find, retain and develop talented employees, Deloitte offers which of the following programs?
- A definitive and clearly communicated route through the firms hierarchy
- Training programs for all employees as they are promoted through the ranks
- incentives for top performers, including fellowships and coaching
- guidance in the form of closing mentoring relationships or sponsorship’s
Some companies avoid establishing ideal organizational relationships in order to
keep existing reporting relationships intact
A multidivisional organizational structure is
a decentralized structure consisting of a set of operating divisions with a central headquarters that monitors divisional activities
a simple organizational structure is
a structure in which a central executive handles all major decisions and overseas organizational operations
which of the following are common measures that companies ave taken to demonstrate their commitment to ongoing training
- reimbursing employees for tuition payments for additional college training in their field
- establishing internal universities
Deloitte has been recognized on lists of the best companies to work for due to its
close attention to finding, keeping an developing skilled employees
which of the following is a disadvantage of matrix organizational structures?
the matrix structure can increase internal costs by adding a layer of management to oversee business operations
Which of the following statements about the relationship between value chain activities are true?
- some value chain activities are more critical than others for effective strategy execution
- companies should make critical value chain activities the centerpieces of their organizational structure
in general, companies seeking to update and remodel existing capabilities find it less time consuming to begin the process by doing which of the following?
- recombining proven company capabilities
- working from an established template
Which of the following statements about the benefits of assembling a highly capable management team is correct?
managers who work well together can produce better results than one or two managers working on their own
which of the following is an action that is likely to be taken by a stronger manager?
scheduling a weekly meeting with mid-level managers to check on the progress of frontline employees
Which of the following statements concerning the disadvantages of a decentralized system are true?
- top level executives may experience difficulty monitoring the actions of personnel under their supervision
- managers and employees can more readily make decisions that undermine the interest of other areas of the company
if strategy-critical activities are the centerpiece of a company’s organizational structure, it is likely that
the company will dedicate the necessary resources to those activities
as individual and team experience grows, the process of capability building can be accelerated by
motivating individuals and teams through incentives
In small organizations, top managers are typically required to
establish action steps interact directly with frontline managers and employees
which of the following statements is true about decentralized organizational structures?
mid level managers and frontline employees are inclined to show initiative and be more productive in decentralized systems
Characteristics of the simple structure include
- few rules
- minimal use of training
which of the following scenarios best corresponds to characterisitcs of decentralized organizational system?
a company experiences a sustained period of high morale because people feel empowered to direct their own work.
the first step to developing an organizational ability involves
- identify the right people to lead the process
- shaping the work of individuals into a collaborative effort
