Deck 1: Introduction: Stories of Change

Question 1

The event that was to become the catalyst for IBM's interest in the opportunities afforded by the emerging internet broadcast capabilities was:

A) The 1994 Superbowl
B) The 1994 Winter Olympics
C) Broadcasting of popular music videos via the internet
D) The election results coverage of Nelson Mandela in South Africa

Answer 1

B

Question 2

The CEO of Hewlett-Packard that managed the merger with Compaq Computers and who was eventually removed from the post as a result of the merger was:

A) David Grossman
B) Abby Kohnstamm
C) Walter Hewlett
D) Carly Fiorina

Answer 2

D

Question 3

How many additional personnel were added to HP after the merger with Compaq Computers, Inc.?

A) 25,000
B) 45,000
C) 65,000
D) 85,000

Answer 3

C

Question 4

Which of the following was NOT an action taken by Kodak when implementing change when entering the digital camera market?

A) A reduction of employees worldwide
B) A reduction in square footage of worldwide facilities
C) An increase of shareholder dividends to encourage investment
D) Raising capital for new technology purchases

Question 5

One of the first steps taken by CEO Mark Hurd, after taking over HP, was to:

A) Cut jobs and restructure the organization
B) Engage in a back to basics marketing campaign and introduce "management by wandering around"
C) Augment company product lines and drastically reduce prices to the consumer
D) Centralize operations and reduce the power of divisional managers

Question 6

Which of the following was NOT an obstacle that HP management had to contend with after the merger with Compaq Computer Corp.?

A) A lawsuit attempting to dissolve the merger
B) The integration of two different corporate cultures
C) Employees fearing job cuts as a result of the merger
D) A corporate takeover attempt by Dell Computers

Question 7

According to the text, the organization that announced a complete move away from traditional products, consolidation of operations, a cut in dividends and a severe reduction in employment worldwide was:

A) Hewlett-Packard
B) IBM
C) Kodak
D) McDonald's

Question 8

Which of the following was NOT one of the actions taken by CEO Samuel Palmisano at IBM?

A) Organizational restructuring
B) Acquisition of a consulting firm to improve delivery of global services
C) Diversification of antiquated technologies and product divisions
D) Implementation of communication techniques to enhance new product development

Question 9

Which of the following is NOT a company reviewed by the authors of your text with respect to prominent stories of change?

A) McDonald's
B) Kodak
C) IBM
D) Microsoft

Question 10

Which of the following is NOT a management team created by CEO Samuel Palmisano at IBM?

A) Strategy
B) Technology
C) Operations
D) Communications

Question 11

CEO Samuel Palmisano's changes in structure at IBM made the organization:

A) Taller
B) Flatter
C) Centralized
D) Bureaucratic

Question 12

Grossman and Patrick's creation of an underground community of Web fans within IBM is an example of:

A) Change from above
B) Change from below
C) The downside of change
D) Resistance to change

Question 13

What complaints about business operations did Ford and Boeing make to Hewlett-Packard?

A) Separate sales teams were marketing individual products
B) Product delivery was chronically late
C) HP was deficient in technological know-how
D) HP ignored customer complaints

Question 14

Which of the following actions was taken by Kodak when implementing change to the digital camera market?

A) Cutting shareholder dividends and raising capital for new technology purchases
B) Executive pay bonuses linked to increased downsizing
C) Massive advertising increases and personnel decreases
D) The filing of numerous patents and lawsuits to protect new and emerging technologies developed by the company

Question 15

Which of the following is NOT one of the problems CEO Samuel Palmisano addressed at IBM?

A) The gap in executive compensation between CEO and his/her team
B) The need to eliminate hierarchy and bureaucracy
C) The need to improve the delivery of global services
D) The need to eliminate company nepotism

Question 16

Which of the following is NOT one of the steps taken by McDonald's in 2004 in response to pressure on the organization?

A) Happy Meals for adults
B) New salad menu
C) Overhaul of the advertising campaign
D) Acceleration of new store openings

Question 17

The IBM executive that possessed technical know-how and was a champion of the company's involvement in the internet revolution was:

A) David Grossman
B) John Patrick
C) Abby Kohnstamm
D) Lou Gerstner

Question 18

One of the first change implemented by CEO Samuel Palmisano at IBM was to:

A) Announce massive reductions in the workforce
B) Revamp the marketing department to exploit alternative sources of revenue
C) Implement a "back to basics" campaign
D) To readjust executive compensation

Question 19

A key issue for CEO Carly Fiorina after the merger with Compaq Computers, Inc. was:

A) Designing a new logo for the company
B) Communicating a vision for the future of the company
C) Combating the government's charge of antitrust violations
D) Keeping Deutsch Bank from reneging on the loan

Question 20

The IBM change story from Chapter 1 of the text is indicative of:

A) Change from above
B) Change from below
C) Both, change from above and below
D) Neither change from above nor below

Question 21

Which of the following effects of the new McDonald's menu was NOT discussed in the text?

A) An increase in the number of female customers
B) An increase in the number of evening customers
C) New online training programs to address customer service issues
D) Fewer lawsuits being filed against the company

Question 22

The 'Internet message' was spread through IBM's culture through the advocacy of lower-level personnel.

Question 23

CEO Samuel Palmisano at IBM restructured the organization in an effort to become more creative when striving to meet consumer needs.

Question 24

In analyzing the HP-Compaq merger, Deutsch Bank decided that a failure to continue with the merger would be more disastrous than the merger itself.

Question 25

Which of the following was NOT one of the problems faced by Kodak during periods of change and transition as discussed in your text?

A) The adverse effects on employees as a result of downsizing and restructuring
B) Investor concerns regarding high debt accumulation
C) Intense pressure from buy-out groups
D) A charge of antitrust violations from the federal government

Question 26

By the late 1990s, IBM's trading in the e-business sector accounted for approximately one-half of its revenue.

Question 27

The year that became the turning point for McDonald's in which the company experienced four consecutive quarters of declining sales and began to lose market share to Wendy's and Burger King was:

A) 1996
B) 1999
C) 2002
D) 2005

Question 28

Which of the following external worldwide pressures did NOT have an impact on McDonald's operations during 2004?

A) An epidemic of mad cow disease
B) An epidemic of foot and mouth disease
C) The SARS epidemic in the Asia-Pacific region
D) A massive tsunami in Indonesia

Question 29

Which of the following was NOT an action taken by McDonald's to combat the perception of an unhealthy menu offering?

A) A new salad menu
B) A focus on nutritional standards
C) Revamping the children's play areas
D) Publicly acknowledging a link between company products and obesity

Question 30

Which of the following was NOT one of the diet restrictions placed upon Morgan Spurlock during his documentary about the effects of eating McDonald's food?

A) No food or drink other than McDonald's menu items
B) Meals super-sized when given the option
C) Every item on the menu eaten at least once
D) No item on the menu could be consumed on consecutive days

Question 31

When Samuel Palmisano became CEO of IBM, he almost immediately reduced the gap in pay between the CEO an his management team.

Question 32

Organizational change is frequently a messy and frustrating process that requires creativity.

Question 33

The documentary that claimed McDonald's food caused significant health concerns when consumed exclusively for one month was:

A) Big Mac Attack
B) Super Size Me
C) He Who Eats Fries, Dies
D) Quarter-Pounder and Then Some

Question 34

McDonald's had traditionally expressed little concern about the claims that its products were linked to obesity.

Question 35

The son of the co-founder of Hewlett-Packard publicly opposed the merger with Compaq Computers.

Question 36

Which of the following was NOT a reason for concern for Kodak investors after the announcement that the company was going to aggressively enter the digital camera market?

A) The revelation that dividends would be severely cut
B) The previous failure of a $1 billion investment into APS cameras in 1996
C) The competitive advantage of HP, Canon Inc. and Seiko Epson Corp
D) The fear of future government regulation of the industry

Question 37

The employees of HP demonstrated radical resistance to change before the merger with Compaq Computers.

Question 38

The employment reductions announced by Kodak in 2003 during the movement into the digital market were the largest in company history.

Question 39

What actions did McDonald's take in 2004 to reinvent the company's image and connect with the younger generation?

A) Introduced the "Plan to Win" strategy and hired Brittany Spears to perform in commercials
B) Introduced the "I'm Loving It" slogan and featured Justin Timberlake in commercials
C) Became the official sponsor of the X-Games and reinvented the company uniforms
D) Relocated several stores to locations near malls and urban areas known to have high youth traffic

Question 40

Kodak planned on reducing employment worldwide with ____ job cuts by 2007.

A) 5,000
B) 10,000
C) 15,000
D) 20,000