Strategic Management

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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 operations 4. Best definition of a company’s corporate culture – p.123 * It is a company’s internal work climate, shaped by its core value, beliefs, business principles, traditions, work practices, and style of operating. 5. The character of a company’s corporate culture is a product of what? – p.123 * The character of a company’s culture or work climate is a product of the work practices and behaviors that define “how we do things around here”, its approach to people management and the “chemistry” that permeates its work environment. 6. What are the fundamental parts of a company’s culture? P. 123??????????????????????????? * Its influence on the organization’s actions and approaches to conducting business. * It varies widely. For some it is dedication to customer satisfaction, zealous pursuit of low costs and frugal operating practices, a strong work ethics etc…. 7. What are the common traits of an unhealthy culture? P.123 * Politicized cultures. A highly politicized internal environment in which many issues get resolved and decisions are made on the basis of which individuals or groups have the most political clout (strong influence) * Change-resistant cultures. Hostility to change and a general wariness of people who champion new ways of doing things * Insular, Inwardly focused cultures. An insular “not-invented-here” mindset that makes company personnel averse to looking outside the company for best practices, new managerial approaches, and innovative ideas. (Underestimate the competencies and accomplishments of rival companies and overestimate its own progress). * Unethical and greed-driven culture. A disregard for high ethical standards and an overzealous pursuit of wealth and status on the part of key executives 8. What are the characteristics of high performance culture? P. 125 ?????? * Strong sense of involvement on the part of company personnel and emphasis on individual initiative and creativity * Issues and problems are promptly...
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