Professional Documents
Culture Documents
Jim Warnick
Should be able to bring external contacts that could potentially bring value to the firm
2. Describe the benefits MBO and TQM can bring to a new strategic plan.
The MBO connects a strategy to its performance. In order to use the MBO there must be specific
The ongoing need to always be better with whatever you are doing
Lower Costs
3. Evaluate the part corporate culture can play when contemplating implementing a new
Assimilation- Acquiring a firm’s culture and keeping it intact, but subservient to that of
Separation- Conflicting cultures kept intact, but kept separate in different units
Deculturation- Force replacement of conflicting acquired firm’s culture with that of the
4. Discuss the 3 types of controls that a firm can use to evaluate a strategy. Explain
Output Controls- The end results are the key to measuring this control. Results are compared to
projected objectives. Examples are –MBO’s, revenue results, share of market, customer
satisfaction findings
Behavior Controls- The use of policies, rules, and procedures are used as guidelines with this
type of control. Examples are; Absentee rates, turnover issues, and following company policies.
Input Controls- These controls tend to use people skills, motivational tools, abilities and values.
Examples are: number of college graduates, hours spent on personnel development courses, and
Return on investment (ROI) - Result of dividing net income before taxes by the total amount
Earnings per Share (EPS) Dividing net earnings by the amount of common stock
Return of Equity (ROE) Involves dividing net income by total equity
Operating Cash Flow (OCF) The amount of money generated by a company before the cost of
Free Cash Flow (FCF) The amount of money a new owner can take out of the firm without
6. Describe a specific strategic incentive management method you would use for your strategic
Audit Firm
Weighted-Factor method, Used for measuring and rewarding personnel working on SBU or
group projects where performance factors may vary according to the SBU’s involved.
Long Term evaluation method, Involved with rewarding management personnel working on
Strategic Funds Method, Focuses on using developmental expenses as a way of working towards