Question 1

You are the CEO of a major corporation. You have been tasked by the board of directors to turn the company around as they just let the last CEO go for a difference in opinion. Being new, where would you focus your attention first?

Accepted Answer

A survey of 769 global CEOs from 40 countries revealed that "excellence in execution" was their most important concern-more important than "profit growth," "customer loyalty," "stimulating innovation," and "finding qualified employees." Execution consists of using questioning, analysis, and follow-through to mesh strategy with reality, align people with goals, and achieve promised results.

Question 2

A company's overall ability to execute is a function of effectively executing according to three processes, but Bossidy and Charan believe that the ________ process is the most important.

Accepted Answer

A company's overall ability to execute is a function of effectively executing according to three processes: people, strategy, and operations. Because all work ultimately entails some human interaction, effort, or involvement, Bossidy and Charan believe that the people process is the most important.

Question 3

In 2003, Myspace launched a social networking website offering an interactive, user-submitted network of friends, personal profiles, blogs, groups, photos, music, and videos. Myspace was the largest social networking site in the world, from 2005 to 2009. Recently, it was purchased by Specific Media, an online platform where music fans can interact with their favorite entertainers, listen to music, watch videos, share and discover cool stuff and just connect. Which of the following describes Specific Media's strategy?

Accepted Answer

A growth strategy is a grand strategy that involves expansion-as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served. Often a growth strategy takes the form of an innovation strategy, growing market share or profits by innovating improvements in products or services (as in using an e-business approach in calculatedly disseminating information).

Question 4

Effective execution requires managers to build a foundation for execution within which three core processes found in any business?

Accepted Answer

Bossidy and Charan outline how organizations and managers can improve the ability to execute. Effective execution requires managers to build a foundation for execution within three core processes found in any business: people, strategy, and operations.

Question 5

Many stores today have changed how customers shop. You can go online to buy your groceries, have a store clerk pick them out for you and then either drive up and pick them up or have them delivered. Besides groceries, you can do this with electronics, clothing, shoes, and even pharmaceuticals. How would you describe this change in business practices?

Accepted Answer

Putting strategic plans into effect is strategy implementation. An example is customers can now check store inventory on a mobile app before they travel to the store, and they can order online and pickup at the store, which usually generates additional purchases.

Question 6

Why is the feedback loop important?

Accepted Answer

To keep strategic plans on track, managers need control systems to monitor progress and take corrective action-early and rapidly-when things start to go awry. Corrective action constitutes a feedback loop in which a problem requires that managers return to an earlier step to rethink policies, redo budgets, or revise personnel arrangements.

Question 7

In 2009 and 2010, Toyota had to recall millions of automobiles due to uncontrollable acceleration. This recall forced upper-level management to rethink many things. For example, Toyota had become too focused on profits. As a business coach, where would you recommend Toyota begin?

Accepted Answer

The strategic-management process is often touched off by a crisis, such as the one Toyota faced in having to recall millions of automobiles due to uncontrollable acceleration. The mission, vision, and values statements were clear and did not need to be revised. The current reality had been assessed, they needed to change. Step 3: Formulate a grand strategy would be where Toyota needed to begin.

Question 8

In the BCG matrix, ________ are organizations that have slow growth but high market share, with income that often finances stars and question marks.

Accepted Answer

In the BCG matrix, cash cows have slow growth but high market share, and income from them often finances stars and question marks.

Question 9

This question contains two parts; be sure to answer both.
First, list the three sources from which strategic position emerges, providing an example of a company with each strategic position. (You will be providing three examples.)
Second, select either McDonald's or Apple Computer and discuss the company's strategic position.

Accepted Answer

The answer of This question contains two parts; be sure...

Question 10

Which of the following is NOT part VRIO?

Accepted Answer

VRIO is a way to analyze a firm's competitive potential by asking four questions about value, rarity, imitability, and organization. A yes answer to each question means the resource or capability-that is, the business idea-has a competitive advantage.

Question 11

In the BCG matrix, ________ are companies that have high growth and high market share, and are definite keepers.

Accepted Answer

In the BCG matrix, stars have high growth and high market share, and are definite keepers.

Question 12

Explain whether strategic management works as well for small companies as it does for large organizations, providing an example of how a small company can offer personal connections as a source of competitive advantage.

Accepted Answer

The answer of Explain whether strategic management works as well...

Question 13

In a staff meeting, Mark is employing Dr. De Bono's Six Thinking Hats. Doug expresses all the positives about being open on Thanksgiving. Rashmi presents the data from the last three years on sales from that day. Rafael explains why staying open late on Thanksgiving will not be in the employees or client's best interests. Sophie explores using the Internet only and not having the brick and mortar stores open. Which color hat would Rafael wear?

Accepted Answer

The Black Hat entails judgment. When wearing this hat, you explore the reasons "why something may not work." Look for the dangers or difficulties associated with the issue at hand. This can be formalized by using a devil's advocate. This individual is given the role of providing a counterargument to what is being proposed.

Question 14

In order to avoid failure, organizations need to consider

Accepted Answer

In most organizations, the strategies developed fail to consider the "how" of execution.

Question 15

In Dr. De Bono's Six Thinking Hats, who wears the blue hat?

Accepted Answer

The Blue Hat is the control function. It is used to ensure that all six hats are being used.

Question 16

Global CEOs desire ________ even more than profit growth, stimulating innovation, customer loyalty, and finding qualified employees.

Accepted Answer

How important is execution to organizational success in today's global economy? A survey of 769 global CEOs from 40 countries revealed that "excellence in execution" was their most important concern, more important than "profit growth," "customer loyalty," "stimulating innovation," and "finding qualified employees."

Question 17

Joelle wants to broaden her functional knowledge. Which of the following activities should she engage in?

Accepted Answer

Strategic thinking requires making connections between concepts, ideas, people, and events. The more ideas and experiences you have, the greater the ability to make connections. One way to gain more experience and have more ideas is to attend industry or functional conferences.

Question 18

Grandma's Bakery wants to begin selling gluten-free products and vegan products. The C-Suite executives have made the decision and are now wanting the change implemented. Whose planning will move this from the decision level into production?

Accepted Answer

Functional-level strategy applies to the key functional departments or units within the business units. Functional managers lead planning discussions at this level, and the focus is on more tactical issues that support business-level strategies.

Question 19

The BCG matrix is a means of evaluating strategic business units on the basis of their

Accepted Answer

The BCG matrix is a means of evaluating strategic business units on the basis of (1) their business growth rates and (2) their share of the market.

Question 20

You have been asked by a new a hair salon, Twist & Braid, to identify whether or not they should expand the business either by opening a new salon or expanding the current salon to offer new services. As a first step, you interview the owner and clients as they come in for their appointments. You also visit a few other local businesses and conduct interviews of people as they pass by. You also review Yelp and Facebook for reviews of the salon. Which of the following best describes the process you are implementing?

Accepted Answer

SWOT analysis should provide a realistic understanding of the organization in relation to its internal and external environments, so you can better formulate strategy in pursuit of the firm's mission.

Quiz 6: Strategic Management: How Exceptional Managers Realize a Grand Design