Deck 4: Strategy Execution

Question 1

Which of the following is a poor example of a resource?

A) a brand
B) an oil well
C) a distribution network
D) a production process

Answer 1

a production process

Question 2

A firm's capabilities can:

A) be traded
B) described in detail
C) be more stable than a resource
D) none of the above

Answer 2

none of the above

Question 3

An activity system illustrates how the following items relate to and reinforce each other:

A) product attributes and key resources
B) value chain activities and top management compensation
C) the firm's structure and its profitability
D) none of the above

Answer 3

product attributes and key resources

Question 4

Which of the following is not a necessary condition for the effective implementation of a pay for performance system?

A) there should be a lower bound on product quality
B) employees must be able to control the pace of production
C) team members should have roughly the same preferences for effort
D) managers should receive a high bonus for the piece rate work of their employees

Question 5

Two or more resources or activities are consistent when:

A) they don't reinforce each other
B) they jointly align with the firm's strategy
C) they come from the same source
D) they pose a barrier to imitation

Question 6

Which of the following is not a characteristic of complementary resources?

A) they support capability development
B) they produce a more effective outcome together than independently
C) they dominate a firm's organizational structure
D) none of the above

Question 7

Which of the following is not an organizational dimension of capability development?

A) organizational culture
B) investor relations
C) control systems
D) incentive systems

Question 8

Consistency among activities makes the most sense:

A) when the firm is engaged in an intense innovation cycle
B) when the firm is pursuing cost leadership or high value advantage
C) when the firm is stuck in the middle
D) when the firm is growing rapidly

Question 9

Matrix structures are developed to deal with:

A) problems in top management compensation
B) games that customers are playing with the firm
C) competing forces regarding positioning in the market
D) the CEO's inability to decide how the firm should be structured

Question 10

Which of the following is not a problem associated with incentive systems?

A) interdependency
B) customer retention
C) alignment
D) controllability

Question 11

Value Chains and Activity Systems generate the same information.

Question 12

The more consistent an organization's activities, the easier they are to change.

Question 13

Managers typically resort to hierarchical referral first when they have a problem.

Question 14

A functional organization is effective in reducing the firm's costs.

Question 15

Organizing by geography makes sense when the regions the firm competes in differ strategically.

Question 16

Matrix structures are less expensive to manage than structures without dual reporting relationships.

Question 17

The internal consistency of firms with a superior value- or cost-based market position poses a strong barrier to imitation.

Question 18

The ability to engage in both single and double loop learning is critical to effective strategy execution.

Question 19

Learning from failure is less useful in the context of well-defined goals.

Question 20

A firm's social network can strongly affect its coordination systems and culture.

Question 21

Consider Makadok's Model: Why is forecasting referred to as "resource picking"? Why should firms be concerned with their resource picking capabilities?

Question 22

How can a small group social network in an organization affect its ability to problem solve?

Question 23

Why does a firm need both financial and operational control systems for effective strategy execution?

Question 24

Give an example of a capability and describe why this capability is not easily traded.