Chapter - 7. MCQ

Chapter 7: Implementing Strategies: Management and Operations Issues
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
58) Strategy formulation
A. requires special motivation and leadership skills.
B. is managing forces during the action.
C. requires coordination among a few individuals.
D. is primarily an operational process.
E. all of the above
Diff: 1 Page Ref: 245
Topic: The Nature of Strategy Implementation
Objective: 7.01 Explain why strategy implementation is more difficult than strategy formulation.
59) Which of these is true about strategy implementation?

A. It is positioning forces before the action.
B. It is primarily an intellectual process.
C. It requires intuitive skills.
D. It focuses on effectiveness.
E. It is primarily an operational process.
60) Which of the following is a management issue central to strategy implementation?

A. Revising reward and incentive plans
B. Linking performance and pay to strategies
C. Devising policies
D. Minimizing resistance to change
E. All of the above
Diff: 2 Page Ref: 246-247
61) Establishing objectives is a

A. centralized activity.
B. centralized-decentralized activity.
C. top-level activity.
D. command-and-control activity.
E. decentralized activity.
Topic: Annual Objectives
Objective: 7.02 Discuss the importance of annual objectives and policies in achieving organizational commitment for
strategies to be implemented.
62) Considerable time and effort should be devoted to assuring objectives are well conceived because they
represent the basis for
A. allocating resources.
B. evaluating managers.
C. monitoring progress toward long-term objectives.
D. establishing divisional priorities.
E. all of the above
63) Which of the following is not true about objectives?

A. They should be consistent.
B. They should use terms like "maximize," "minimize," and "as soon as possible."
C. They should be communicated throughout the organization.
D. They should be measurable.
E. They should have an appropriate time dimension.
64) Which phrase would most likely be incorporated into written objective statements?
A. Adequate
B. Maximize
C. Minimize
D. 10% increase
E. All of the above
65) What term is used to describe specific guidelines, methods, procedures, rules, forms and administrative
practices established to support and encourage work toward stated goals?
A. Annual objectives
B. Long-term objectives
C. Policies
D. Values
E. Strategies
Topic: Policies
66) Policies
A. allow coordination across organizational units.
B. reduce the amount of time managers spend making decisions.
C. provide a basis for management control.
D. let both employees and managers know what is expected of them.
E. all of the above
Topic: Policies
67) Which term is best defined as a central management activity that allows for strategy execution?
A. Conflict
B. Furlough
C. Competition
D. Resource allocation
E. Avoidance
Topic: Resource Allocation
68) _______ is/are not a major factor that commonly prohibits effective resource allocation.
A. A reluctance to take risks
B. Vague strategy targets
C. Organizational politics
D. A lack of sufficient knowledge
E. Underprotection of resources
Topic: Resource Allocation
69) A disagreement between two or more parties on one or more issues is called a(n)
A. diffusion.
B. avoidance.
C. conflict.
D. compromise.
E. integrated solution.
Topic: Managing Conflict
70) Conflict in an organization is

A. always bad.
B. always good.
C. a sign of bankruptcy.
D. completely avoidable.
E. not always bad.
71) What are the three categories of approaches for managing and resolving conflict?
A. Avoidance, defusion and confrontation
B. Ignorance, indifference and apathy
C. Defusion, apathy and avoidance
D. Avoidance, apathy and defusion
E. Indifference, avoidance and role-playing
72) Which approach for managing and resolving conflict involves exchanging members of conflicting parties so
that each can gain an appreciation of the other's point of view?
A. Confrontation
B. Defusion
C. Compliance
D. Avoidance
E. Resistance
73) Which approach for managing and resolving conflict involves ignoring the problem in hopes that the conflict
will resolve itself?
A. Compliance
B. Defusion
C. Resistance
D. Confrontation
E. Avoidance
74) Which approach for managing and resolving conflict involves playing down differences between conflicting
parties while accentuating similarities and common interests?
A. Defusion
B. Resistance
C. Avoidance
D. Compliance
E. Confrontation
75) 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 should be designed to facilitate the strategic pursuit of a firm.
C. Structure dictates how resources will be allocated.
D. All of the above
E. None of the above
Topic: Matching Structure with Strategy
Objective: 7.03 Explain why organizational structure is so important in strategy implementation.
76) What type of organizational structure do most small businesses follow?

A. Functional structure
B. Divisional structure by customer
C. Matrix structure
D. Strategic business unit
E. Divisional structure by product
77) Which organizational structure is the most simple and inexpensive?

A. Strategic business unit
B. Departmental
C. Functional
D. Matrix
E. Decentralized
78) Medium-sized firms are more likely to use which type of structure?
A. Functional B. Centralized C. Divisional D. Matrix E. SBU
79) What is not one of the basic ways a divisional structure can be organized?
A. By product or service
B. By customer
C. By geographic area
D. By process
E. By cost
80) A divisional structure by product is most effective when

A. an organization's products or services differ substantially.
B. special emphasis needs to be placed on specific services.
C. an organization offers few products.
D. special emphasis needs to be placed on specific products.
E. all of the above
81) How would Hershey's current divisional structure most likely be classified?
A. By geographic area
B. By process
C. By service
D. By product
E. By customer
82) A divisional structure by geographic area is most appropriate when

A. the company's customers in different geographic locations have similar needs and characteristics .
B. the firm serves one geographic area.
C. an organization offers only a limited number of products or services.
D. organizations have similar branch facilities located in widely dispersed areas.
E. consumption patterns for its products and/or services are the same worldwide.
83) 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 area
B. By cost
C. By product
D. By customer
E. By process
84) Which organizational structure has the disadvantage of ambiguous roles for senior executives?
A. Matrix
B. Divisional
C. Strategic business unit
D. Functional
E. Process
85) What is the most complex form of organizational structure?

A. SBU B. Matrix C. Functional D. Divisional E. Geographic
86) When developing an organizational chart, you should
A. make sure that the chief financial officer is not at the same level as the chief operating officer.
B. use the title "president" for the top person.
C. have division presidents report to a chief operating officer.
D. recommend dual titles for executives.
E. have the controller or treasurer report directly to the president.
87) Restructuring is also referred to as

A. delayering.
B. diversifying.
C. integrating.
D. reengineering.
E. upsizing.
Topic: Restructuring, Reengineering, and E-Engineering
Objective: 7.04 Compare and contrast restructuring and reengineering.
88) Which term is most often concerned primarily with shareholder well-being rather than employee well-being?
A. Benchmarking
B. Restructuring
C. Reengineering
D. Product redesign
E. Process management
89) Which of these involves comparing a firm against the best firms in the industry on a wide variety of
performance-related criteria?
A. Process redesign
B. Benchmarking
C. Restructuring
D. Delayering
E. Reengineering
90) The primary benefit sought from restructuring is

A. increased number of hierarchical levels in the organization.
B. employee involvement.
C. cost reduction.
D. increased morale.
E. increased innovation.
91) What action involves reconfiguring or redesigning work, jobs and processes for the purpose of improving
costs, quality, service and speed?
A. Benchmarking
B. Restructuring
C. Delayering
D. Reengineering
E. Downsizing
92) 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 in
A. rightsizing.
B. reengineering.
C. restructuring.
D. delayering.
E. benchmarking.
93) Which pay strategy is not a form of incentive compensation?

A. Hourly wage
B. Bonus system
C. Profit sharing
D. Gain sharing
E. All of the above are forms of incentive compensation.
Topic: Linking Performance and Pay to Strategies
Objective: 7.06 Explain how a firm can effectively link performance and pay to strategies.
94) All of the following statements regarding the recent trend in Japan of switching from seniority-based pay to
performance-based approaches are true except:
A. the switch is an effort to increase productivity.
B. the switch is boosting employee morale.
C. the switch opposes the traditional training of Japanese employees to cooperate rather than compete.
D. the switch goes against decades of encouraging workers to work in groups instead of individually.
E. the switch is an effort to cut costs.
95) What pay strategy requires employees or departments to establish performance targets, which, if exceeded,
result in bonuses for all members?
A. Bonus system
B. Gain sharing
C. Salary
D. Hourly wage system
E. Profit sharing
96) Which of these is not one of the tests used to determine whether a performance-pay plan will benefit an
organization?
A. Is the plan improving communications?
B. Does the plan reduce management layers?
C. Do employees understand the plan?
D. Does the plan pay out when it should?
E. Does the plan capture attention?
97) What change strategy involves giving orders and enforcing those orders?
A. Self-interest B. Rational C. Defusion D. Force E. Educative
Topic: Managing Resistance to Change
Objective: 7.08 Describe how to modify an organizational culture to support new strategies.
98) Resistance to change can manifest itself through

A. sabotaging production machines.
B. absenteeism.
C. unwillingness to cooperate.
D. filing unfounded grievances.
E. all of the above
99) A change strategy that attempts to convince people that the change is to their personal advantage is
A. force. B. rational. C. compromise. D. educative. E. defusion.
100) Which of the following is in keeping with the current view of organizational change?
A. Organizational change is a continuous process.
B. Organizational change is an event.
C. Organizational change involves unfreezing behavior, changing the behavior, and then refreezing the
new behavior.
D. Organizational change is a project.
E. All of the above
Topic: Managing the Natural Environment
101) Formal statements of organizational philosophy, charters, creeds, materials used for recruitment and selection
and socialization help an organization
A. increase profits.
B. link culture to strategy.
C. abide by SEC laws.
D. manage conflicts between stakeholders.
E. set guidelines for firing.
Topic: Creating a Strategy-Supportive Culture
102) Changing a strategy to fit an existing culture

A. is usually more effective than changing a firm's culture to fit a new strategy.
B. is always the best option.
C. is just as likely to be effective as changing a firm's culture to fit a new strategy.
D. is usually less effective than changing a firm's culture to fit a new strategy.
E. none of the above
103) Which of the following statements is true?

A. In Japan, individual excellence is emphasized over harmony among managers.
B. The CEO of a Japanese company earns more than the CEO of a European company.
C. Seniority rather than performance has been the key factor in determining pay in Japan.
D. The pay of the CEO of a Japanese company is about half the pay of the CEO of an American company.
E. All of the above
Objective: 7.09 Discuss the culture in Mexico and Japan.
104) All of the following are ways and means for altering an organization's culture except:
A. redesigning physical spaces/facades.
B. recruitment.
C. retrenchment.
D. role modeling.
E. restructuring.
105) Aspects of an existing culture that are antagonistic to a proposed strategy should be
A. built upon. B. preserved. C. celebrated. D. emphasized. E. changed.
106) Just-in-time describes
A. a personnel planning method.
B. implementing strategies just before bankruptcy.
C. delivering materials just as they are needed.
D. a scheduling method for meetings.
E. a process for improving quality.
Topic: Production/Operations Concerns When Implementing Strategies
Objective: 7.05 Describe the relationships between production/operations and strategy implementation.
107) A concern in matching managers with strategy is that jobs have relatively ________ responsibilities, while
people are ________ in their development.
A. dynamic; static
B. dull; exciting
C. quick; slow
D. exciting; dull
E. static; dynamic
Topic: Human Resource Concerns when Implementing Strategies
Objective: 7.07 Discuss employee stock ownership plans (ESOPs) as a strategic-management concept.
108) Approximately how many people in the United States are now part of two-career families?
A. 2 million B. 21 million C. 8 million D. 85 million E. 60 million
Objective: 7.10 Describe the glass ceiling in the United States.
109) Of the Fortune 500 firms, how many have a woman CEO?
A. Two B. Nine C. Thirteen D. Five E. Twenty-four
110) What is the stated reason for Boeing's firing of CEO Harry Stonecipher?
A. Having an extramarital affair
B. Enforcing discriminatory hiring practices
C. Poor company performance
D. Stealing from the company
E. Exorbitant use of company planes
111) Which company has committed almost $8 billion over 10 years to diversify its workforce and to use more
minority suppliers?
A. Toyota
B. Boeing
C. Coca-Cola
D. Ford Motor Company
E. TJX

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Chapter - 7. MCQ

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Chapter 7: Implementing Strategies: Management and Operations Issues

59) Which of these is true about strategy implementation?

60) Which of the following is a management issue central to strategy implementation?

61) Establishing objectives is a

63) Which of the following is not true about objectives?

70) Conflict in an organization is

76) What type of organizational structure do most small businesses follow?

77) Which organizational structure is the most simple and inexpensive?

80) A divisional structure by product is most effective when

82) A divisional structure by geographic area is most appropriate when

85) What is the most complex form of organizational structure?

87) Restructuring is also referred to as

90) The primary benefit sought from restructuring is

93) Which pay strategy is not a form of incentive compensation?

98) Resistance to change can manifest itself through

102) Changing a strategy to fit an existing culture

103) Which of the following statements is true?

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