Multiple Choice

The Nature of Strategy Implementation

1. Strategy formulationa. is managing forces during the action.b. focuses on effectiveness.c. is primarily an operational process.d. requires coordination among many people.e. all of the above.

Ans: b Page: 262

2. Which of these is true about strategy implementation?a. It is positioning forces before the action.b. It focuses on effectiveness.c. It is primarily an operational process.d. It is primarily an intellectual process.e. It requires intuitive skills.

Ans: c Page: 262

Annual Objectives

3. How are objectives in the areas of profitability, growth and market share commonly established?a. Business segmentb. Geographic locationc. Customer groupsd. Producte. All of the above

Ans: e Page: 264

4. Establishing objectives is aa. top-level activity.b. centralized activity.c. decentralized activity.d. centralized-decentralized activity.e. command-and-control activity.

Ans: c Page: 264

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5. Considerable time and effort should be devoted to assuring objectives are well conceived because they represent the basis fora. monitoring processes.b. establishing divisional priorities.c. allocating resources.d. evaluating managers.e. all of the above.

Ans: e Page: 264

6. Which of the following is not true about objectives?a. They should be communicated throughout the organization.b. They should have an appropriate time dimension.c. They should incorporate policies.d. They should be measurable.e. They should be consistent.

Ans: c Page: 266

7. Which term would most likely be incorporated into written objective statements?a. Maximizeb. Minimizec. 10% increased. Adequatee. All of the above

Ans: c Page: 266

Policies

8. What are guidelines, methods, procedures, rules, forms and administrative practices known as?a. Long-term objectivesb. Policiesc. Annual objectivesd. Strategiese. Goals

Ans: b Page: 266

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9. Which of the following issues may not require a management policy?a. To establish a high- or low-safety stock of inventory b. To increase motivationc. To offer numerous or few employee benefitsd. To discourage insider tradinge. To promote from within to or to hire from the outside

Ans: b Page: 267

Resource Allocation

10. Which term is best defined as a central management activity that allows for strategy execution.a. Policy-makingb. Goal-settingc. Establishing annual objectivesd. Resource allocatione. Conflict

Ans: d Page: 268

11. _______ is not a major factor that commonly prohibits effective resource allocation.a. Underprotection of resourcesb. Organizational politicsc. Vague strategy targetsd. Reluctance to take riskse. Lack of sufficient knowledge

Ans: a Page: 269

Managing Conflict

12. A disagreement between two or more parties on one or more issues is called a(n)a. integrated solution.b. conflict.c. compromise.d. diffusion.e. avoidance.

Ans: b Page: 269

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13. Conflict in an organization isa. always bad.b. always good.c. sometimes good and sometimes bad.d. a sign of bankruptcy.e. avoidable.

Ans: c Page: 269

14. What are three categories of approaches for managing and resolving conflict?a. Avoidance, diffusion and confrontationb. Avoidance, payoff and diffusionc. Confrontation, ignorance and objectivityd. Buy, sell and holde. There are no good ways to manage conflict

Ans: a Page: 269 - 270

15. Which approach for managing and resolving conflict involves exchanging members of conflicting parties of that each can gain an appreciation of the others point of view?a. Avoidanceb. Resistancec. Complianced. Diffusione. Confrontation

Ans: e Page 269-270

16. Which approach for managing and resolving conflict involves ignoring the problem in hopes that the conflict will resolve itself? a. Avoidanceb. Resistancec. Complianced. Diffusione. Confrontation

Ans: a Page 269-270

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17. Which approach for managing and resolving conflict involves playing down differences between conflicting parties while accentuating similarities and common interests?a. Avoidanceb. Resistancec. Complianced. Diffusione. Confrontation

Ans: d Page 269-270

Matching Structure with Strategy

18. Why do changes in company strategy often require changes in the way an organization is structured?a. Structure dictates how goals and objectives will be established.b. Structure dictates authority over projects.c. Structure dictates how resources will be obtained.d. Structure dictates strategy.e. Structure dictates how money is spent.

Ans: a Page: 270

19. What type of organizational structure do most small businesses follow?a. Divisional structure by productb. Functional structurec. Divisional structure by customerd. Process type structuree. Matrix structure

Ans: b Page: 271

20. Which organizational structure is the most simple and inexpensive?a. departmentalb. strategic business unitc. functionald. decentralizede. process

Ans: c Page: 271

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21. Medium-sized firms are more likely to use which type of structure.a. divisionalb. matrixc. SBUd. functionale. process

Ans: a Page: 271

22. What is not one of the basic ways a divisional structure can be organized?a. By geographic areab. By product or servicec. By customerd. By processe. By cost

Ans: e Page: 272

23. A divisional structure by product is most effective whena. special emphasis needs to be placed on specific products.b. an organization offers few products.c. an organization’s products or services differ substantially.d. special emphasis needs to be placed on specific services.e. All of the above

Ans: e Page: 273

24. How would Hershey’s current divisional structure most likely be classified?a. By geographic areab. By productc. By serviced. By customere. By process

Ans: a Page 273

25. A divisional structure by geographic area is most appropriate whena. organizations have similar branch facilities located in widely dispersed areas.b. an organization offers only a limited number of products or services.c. strict control and attention to product lines are needed.d. an organization has many skilled managers.e. the firm serves one geographic area.

Ans: a Page: 273

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26. What is the best divisional structure when a few major customers are of paramount importance and many different services are provided to these customers?a. by geographic areab. by customerc. by productd. by processe. by cost

Ans: b Page: 273

27. What is the most complex form of organizational structure?a. Divisionalb. SBUc. Matrixd. Functionale. Geographic

Ans: c Page: 275

28. Which organizational structure has ambiguous roles for senior executives as a major disadvantage?a. functionalb. divisionalc. strategic business unit (SBU)d. matrixe. process

Ans: c Page: 276

29. When developing an organizational chart, you should:a. Recommend dual titles for executivesb. Use the title “president” for the top personc. Make sure that the chief financial officer is not at the same level as the chief

operating officerd. Have division presidents report to a chief operating officere. Have the controller or treasurer report directly to the president

Ans: d Page 277

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Restructuring, Reengineering and E-Engineering

30. Restructuring is also referred to as a. starting over.b. delayering.c. diversifying.d. job security.e. integrating.

Ans: b Page: 278

31. Which term is most often concerned primarily with shareholder well-being rather than employee well-being?a. Benchmarkingb. Reengineeringc. Product redesignd. Process managemente. Restructuring

Ans: e Page: 278

32. Which of these involves comparing a firm against the best firms in the industry on a wide variety of performance-related criteria?a. Restructuringb. Process redesignc. Reengineeringd. Delayeringe. Benchmarking

Ans: e Page: 279

33. The primary benefit sought from restructuring isa. employee involvement.b. cost reduction.c. increased morale.d. increased number of hierarchical levels in the organization.e. increased innovation.

Ans: b Page: 279

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34. What action involves reconfiguring or redesigning work, jobs and processes for the purpose of improving costs, quality, service and speed?a. Restructuringb. Downsizingc. Reengineeringd. Delayeringe. Benchmarking

Ans: c Page: 280

35. A firm uses information technology to break down functional barriers and create a work system based on business processes, products, or outputs rather than on functions or inputs ina. restructuring.b. benchmarking.c. reengineering.d. decentralization.e. delayering.

Ans: c Page: 280

Linking Performance and Pay to Strategies

36. Which pay strategy is not a form of incentive compensation?a. Bonus systemb. Hourly wagec. Gain sharingd. Profit sharinge. All of these are forms of incentive compensation.

Ans: b Page: 281-282

37. What pay strategy requires employees or departments to establish performance targets, such as “if actual results exceed objectives then all members get bonuses.”a. Profit sharingb. Bonus systemc. Salaryd. Gain sharinge. Hourly wage system

Ans: d Page: 281-282

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38. Which of these is not one of the tests used to determine whether a performance-pay plan will benefit an organization?a. Does the plan capture attention?b. Do employees understand the plan?c. Is the plan improving communications?d. Does the plan pay out when it should?e. Does the plan reduce management layers?

Ans: e Page: 282

39. Which Fortune 500 CEO had the greatest salary in 2004?a. Richard Kinder from Kinder Morgan Energyb. Bob Nardelli from Home Depotc. Steve Jobs from Apple Computerd. Jeff Bezos from Amazone. Warren Buffett from Berkshire Hathaway

Ans: b Page 283

Managing Resistance to Change

40. What change strategy involves giving orders and enforcing those orders?a. self-interestb. educativec. forced. rationale. diffusion

Ans: c Page: 283

41. Resistance to change can manifest itself througha. absenteeism.b. sabotaging production machines.c. filing unfounded grievances.d. unwillingness to cooperate.e. all of the above.

Ans: e Page: 283

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42. A change strategy that attempts to convince people the change is to their personal advantage isa. diffusion.b. force.c. educative.d. rational.e. compromise.

Ans: d Page: 283-284

Managing the Natural Environment

43. What challenge facing all organizations requires managers to formulate strategies that preserve and conserve natural resources and control pollution?a. economicb. ecologicalc. compensationald. benchmarkinge. global

Ans: b Page: 285

Creating a Strategy-Supportive Culture

44. Formal statements of organizational philosophy, charters, creeds, materials used for recruitment and selection and socialization help an organizationa. abide by SEC laws.b. link culture to strategy.c. set guidelines for firing.d. increase profits.e. manage conflicts between stakeholders.

Ans: b Page: 287

45. Which strategy could be best defined as an effective, multi-method technique of studying and altering a firm’s culture?a. Benchmarkingb. Deliveringc. Triangulationd. Process managemente. Educative change strategy

Ans: c Page: 287

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46. Desire for __________ is a part of the social fabric in worker-manager relations in Mexico.a. harmonyb. frictionc. conflictd. independencee. punctuality

Ans: a Page: 288

47. How is life in Mexico in comparison to life in the United States?a. Fasterb. More affluentc. Time-dictatedd. Slowere. Less harmonious

Ans: d Page: 289

48. The Russian people are known for theira. drive.b. desire to succeed.c. laziness.d. lack of motivation.e. lack of education.

Ans: a Page: 289

49. Which of the following does not describe most Japanese managers?a. Reservedb. Quietc. Distantd. Impulsivee. Introspective

Ans: d Page: 290

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Production/Operations Concerns When Implementing Strategies

50. Just in time describesa. implementing strategies just before bankruptcy.b. delivering materials just as they are needed.c. a scheduling method for meetings.d. a personnel planning method.e. a process for improving quality.

Ans: b Page: 292

Human Resource Concerns When Implementing Strategies

51. A concern in matching managers with strategy is that jobs have relatively __________ responsibilities, while people are __________ in their development.a. static; dynamicb. dynamic; staticc. quick; slowd. exciting; dulle. dull; exciting

Ans: a Page: 293

52. Approximately how many people in the United States are now part of two-career families?a. 2 millionb. 8 millionc. 21 milliond. 60 millione. 85 million

Ans: d Page: 295

53. Of the Fortune 500 firms, how many have a woman CEO?a. twob. fourc. fived. twelvee. twenty-four

Ans: c Page: 296

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54. What is the stated reason for Boeing’s recent firing of CEO Harry Stonecipher?a. Poor company performanceb. Enforcing discriminatory hiring practicesc. Having an extramarital affair with a coworkerd. Stealing from the companye. Exorbitant use of company planes

Ans: c Page 296

55. What is not a major benefit of having a diverse workforce?a. Improvement of the bottom lineb. An increase in training costsc. An increase in productivityd. A decrease in complaints and litigatione. Higher retention of employees

Ans: b Page: 297

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