Management Strategy and Policy Review Questions
Review questions – Exam 2
Management Strategy & Policy
Chapter 6 1. Managerial Actions and initiatives taken in the strategy execution proce1 – p. ..117-118ss * Human capital: intangible assets such as skills, knowledge, and value required by the strategy. * Staffing the organization with people having the right skills and expertise * Information capital: intangible assets such as systems, database, and network that support the strategy. * Installing information and operating systems that enable company personnel to perform essential activities * Organizational capital: strategy supportive intangible assets such as leadership, alignment of goals, and teamwork * Exerting the internal leadership needed to propel implementation forward * Adopting an organizational structure that supports strategies intended to create customer value * Ensuring that policies and procedures facilitate rather than impede effective execution * Creating a company culture and work climate that support successful strategy execution * Pushing for continuous improvement in how value chain activities are performed * Allocating ample resources to strategy critical activities * Tying rewards and incentives directly to the achievement of performance objective 2. The main advantages of a decentralized organizational structure – p. 120 * To put adequate decision-making authority in the hands of the people closest to and most familiar with the situation. * Employees with customer contact may be empowered to do what it takes to please customer can be one example. 3. The disadvantages of a centralized organizational structure – p.121 * It makes an organization sluggish in responding to changing conditions because of the time it takes for the review/approval process to run up all the layers of the management bureaucracy. * Impractical the larger the company and the more scattered its
Management Strategy & Policy
Chapter 6 1. Managerial Actions and initiatives taken in the strategy execution proce1 – p. ..117-118ss * Human capital: intangible assets such as skills, knowledge, and value required by the strategy. * Staffing the organization with people having the right skills and expertise * Information capital: intangible assets such as systems, database, and network that support the strategy. * Installing information and operating systems that enable company personnel to perform essential activities * Organizational capital: strategy supportive intangible assets such as leadership, alignment of goals, and teamwork * Exerting the internal leadership needed to propel implementation forward * Adopting an organizational structure that supports strategies intended to create customer value * Ensuring that policies and procedures facilitate rather than impede effective execution * Creating a company culture and work climate that support successful strategy execution * Pushing for continuous improvement in how value chain activities are performed * Allocating ample resources to strategy critical activities * Tying rewards and incentives directly to the achievement of performance objective 2. The main advantages of a decentralized organizational structure – p. 120 * To put adequate decision-making authority in the hands of the people closest to and most familiar with the situation. * Employees with customer contact may be empowered to do what it takes to please customer can be one example. 3. The disadvantages of a centralized organizational structure – p.121 * It makes an organization sluggish in responding to changing conditions because of the time it takes for the review/approval process to run up all the layers of the management bureaucracy. * Impractical the larger the company and the more scattered its