Exam 3 Topic 7 Review

Question 1

What is strategy formulation

Answer 1

1. What we want to accomplish
2. Why we want to accomplish is
3. How we will accomplish it

Question 2

what are the two parts to strategy implementation

Answer 2

strategy formulation; strategy implementation/ execution

Question 3

What is strategy implementation/ execution

Answer 3

carrying out the formulated plan

Question 4

which are do companies spend more time and money on (Strategy formulation or implementations)

Answer 4

Strategy Formulation

Question 5

Bulk of where companies fall short is in what area

Answer 5

How they execute/ implement plans

Question 6

Even if you have a great strategy, you can botch the ______________

Answer 6

implementation

Question 7

What is culture?

Answer 7

a system of shared beliefs and values

Question 8

What does culture impact

Answer 8

the extent of cooperation, degree of dedication, and depth of strategic thinking within the organization

Question 9

top management sets the culture’s ___________, _________ and __________ within the organizatiion

Answer 9

tone, pace, and character

Question 10

__________ and __________ are the lifeblood of implementation

Answer 10

culture; communication

Question 11

Culture determine what about employees

Answer 11

How hard they are going to work

Question 12

What are the three best cultures you can implement for your company

Answer 12

agility, teamwork, ambition

Question 13

What does agile mean in the context of culture?

Answer 13

being able to pivot quickly in rapidly changing situations

Question 14

What does teamwork mean in context of culture?

Answer 14

Build inside a company, share knowledge, serve each other and not just clients

Question 15

What does ambition mean in context of culture?

Answer 15

Do employees stretch and rebuild themselves/ processes/ how we do things

Question 16

Top management’s _____________ to the strategic direction of the organization is a prerequisite for strategy implementation

Answer 16

commitment

Question 17

What is an open communications plan?

Answer 17

Top managers must not assume that lower level managers have the same perception and make no assumptions

Question 18

What is the 5% statistic

Answer 18

less than 5% of the people going to work today understand what their firm is attempting to accomplish strategically

Question 19

communication does not equate to __________

Answer 19

understanding

Question 20

Open communication is a must and always develop an _____________

Answer 20

integrated communications plan

Question 21

what are the 5 parts of an integrated communications plan

Answer 21

Who; what; why; when; how

Question 22

What is the “who” part of the integrated communications plan?

Answer 22

Related to those who are directly linked with implementation
- get rid of underperformers
- who needs to be infromed- employees
-auditors

Question 23

what is the the “what” part of the integrated communication plan

Answer 23

the message and level of specificity
- what do people need to know
-what message do people need to understand

Question 24

What is the “why” part of an integrated communications plan

Answer 24

Justifying the project/ change
- if you cant justify how you do thing how do you expect employees to be on board?

Question 25

What is the "when" part of integrated communications plan

Answer 25

the timing of change - map out a timeline of the change - provides clarity

Question 26

What is the "how" of an integrated communications plan

Answer 26

how will the change be implented

Question 27

Need to clearly identify ___________ to full understand what decisions are more important than others

Answer 27

priorities

Question 28

If an employee does not understand the companies priorities, that is a failure on ___________ part

Answer 28

management's

Question 29

management needs to communicate the _________ and _________ of priorities

Answer 29

critical number; types

Question 30

what is the target range of critical number of priorities set by management

Answer 30

5 - 10 (people can handle at least 5 but NO MORE THAN 10)

Question 31

How does management pick the critical number and types of priorities?

Answer 31

They choose the ones with the greatest impact on performance

Question 32

What does it mean to consider your employees in the strategy implementation

Answer 32

Employees need to be a part of the planning process as when executing the plan you will need the employees. If they are not a part of the process they will not feel rewarded

Question 33

Failure is often the result of people being __________ from strategic planning

Answer 33

absent

Question 34

Not considering the employees in strategic planning negatively impacts what

Answer 34

strategic consensus

Question 35

Unclear assignment of responsibilities creates ___________ problems as people do not know who is responsible for what.

Answer 35

implementation

Question 36

What is strategic consensus?

Answer 36

Agreement and buy in to executing on the strategy

Question 37

Do you want to achieve strategic consensus?

Answer 37

Yes

Question 38

Implementation consists mostly of ________________ so by changing the way employees view and practice strategy implementation, senior executives can effectively transform change barriers into gateways for a successful execution

Answer 38

psychological aspects

Question 39

What should employees be rewards for?

Answer 39

reward for superior execution

Question 40

only reward those that contribute to _________________ success

Answer 40

strategy implementation success

Question 41

every single employee should be rewarded based upon _____ indicators and no more than ____

Answer 41

3; 5

Question 42

do not reward based on ________ needs

Answer 42

assumed

Question 43

joint ventures and alliances falls under what

Answer 43

organizational forms

Question 44

what are joint ventures and alliances

Answer 44

cooperative relationships where two firms (typically, its two firms, but can be more) come together for mutually- beneficial purposes but still stay legally seperate entities

Question 45

what are some characteristics to looks for in a partner of a joint venture or alliance

Answer 45

- complementary skills and resources - complementary products - the relative safeness of the relationship - trust

Question 46

what is a joint venture

Answer 46

2 companies come together and create a company which is co managed by the parents

Question 47

What is the most common percentage split between partners in a JV

Answer 47

50-50 (50% of risk, responsibility and decision making

Question 48

What is the second most common split between partners in a JV

Answer 48

51-49

Question 49

JV will have its own:

Answer 49

management team and structure

Question 50

what is an alliance

Answer 50

2 companies come together for mutually beneficial purposes, BUT they do NOT create a company

Question 51

Joint ventures and alliances both have two companies coming together but which one results in a new company being formed?

Answer 51

joint venture

Question 52

what are the two scopes of coopertive realtionahips

Answer 52

comprehensive and functional

Question 53

what is a comprehensive relationship

Answer 53

where both businesses work closely together with shared goals, aligned values, and long-term outlook

Question 54

what is a functional relationship

Answer 54

interaction is primarily transactional, limited in scope, and typically focused on fulfilling specific needs (like providing a product, service, or resource)

Question 55

if two companies have a comprehensive relationship should they form a JV or alliance

Answer 55

JV

Question 56

if two companies have a functional relationship they should they form a JV or alliance

Answer 56

alliance

Question 57

if the scope of a relationship is very bread should they form a JV or alliance

Answer 57

JV

Question 58

what would broad scope mean

Answer 58

requires multiple functions like marketing, sales, etc

Question 59

what is the biggest factor in selecting a partner

Answer 59

TRUST

Question 60

what is a merger

Answer 60

when two firms become one firm

Question 61

who manages the new firm of a merger

Answer 61

co-managed by execs from both organizations

Question 62

which is more common: mergers or acquisition

Answer 62

acquisitions

Question 63

what is an acquisitions

Answer 63

when one firm purchases a controlling, if not 100%, stake in another organization

Question 64

optimal control is structured as an ___________________

Answer 64

acquisition

Question 65

Why are acquisitions costly

Answer 65

have to pay goodwill; you get debt' future liabilities

Question 66

what are the most important areas to consider in mergers and acquisitions

Answer 66

- cost - complexity of negotiations - integration difficulties

Question 67

what is licensing

Answer 67

securing the legal right to manufacture, market and distribute a product or products in a particular region

Question 68

what are some issues to consider with licenses

Answer 68

- risk/ return (the royalty issue) - licensing terms

Question 69

licensing is only as good as _______________

Answer 69

the terms/ conditions of the contract

Question 70

contract duration:

Answer 70

how long the relationship will last, may not

Question 71

what is franchising

Answer 71

a franchise is a business arrangement under which one party (the frnachiser) allows (the franchisee) to operate an enterprise using its trademark, logo, product line, and methods of operation in return for a fee

Question 72

is franchising the product, licensing, or hte entire thing

Answer 72

entire thing

Question 73

what method to go for if you need to penetrate quickly

Answer 73

franchising

Question 74

issues to consider with franchising

Answer 74

- proven brand - only a percentage of the profits accrue to the company - penetrate a market quickly with many outlets

Question 75

are licensing and franchising optimal control

Answer 75

no

Question 76

what is a new wholly-owned subsidiary

Answer 76

when a company enters a new market via organic means (AKA a greenfield venture)

Question 77

which have the most control

Answer 77

acquisitions and greenfield/ wholly owned