chapter 11a

chapter 11a - Your Results: The correct answer for each...

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Your Results: The correct answer for each question is indicated by a . 1 INCORRECT Which one of the following is not a valid strategy-related reason why managers need to be deeply involved in the budgeting and resource allocation process? A) Too little funding deprives organizational units of the resources to carry out their piece of the strategic plan and too much funding wastes organizational resources and reduces financial performance. B) A change in strategy nearly always calls for budget reallocations and resource shifting. C) The funding requirements of any change in strategy need to drive capital allocations and the size of each unit's operating budget. D) Without budget reallocations it is hard, if not impractical, to match organization structure to the chosen strategy; moreover, aggressive resource reallocation is a prerequisite to creating needed core competencies and organizational capabilities. E) Visible actions to reallocate operating funds and move people into new organizational units signal a determined commitment to strategic change and frequently are needed to catalyze the implementation process and give it credibility. 2 INCORRECT From a strategy-implementing/strategy-executing perspective, budget allocations should A) primarily be based on creating more core competencies than rivals have. B) be strategy-driven and based primarily on how much each organizational unit needs to carry out its piece of the strategic plan efficiently and effectively. C) be based on the resources needed to lower the costs of performing each value chain activity. D) provide each operating unit with sufficient funds to undertake benchmarking, adopt best practices, implement Six Sigma and/or TQM, and do cutting-edge business process reengineering. E) strongly support the company's established policies and procedures regarding how things are to be done. 3 INCORRECT Prescribing policies and operating procedures aid the task of implementing strategy by A) helping empower product champions and work teams. B) paving the way for instituting TQM or Six Sigma programs and adopting best practices. C) by helping align the actions and behavior company personnel with
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the requirements for good strategy execution, placing limits on independent action, helping overcome resistance to change, helping enforce consistency in how things are done in scattered geographic units, and promoting the creation of a work climate that facilitates good strategy execution. D) helping prevent the corporate culture from being unhealthy and weak. E) pushing employees to accept the need for state-of-the-art operating and support systems. 4 INCORRECT Which one of the following is false when it comes to designing strategy- facilitating policies and operating procedures? A)
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This note was uploaded on 10/02/2011 for the course FIN 685 taught by Professor Grady during the Spring '11 term at Texas A&M.

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chapter 11a - Your Results: The correct answer for each...

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