Question 1

What are the "traditional" approaches to strategic control?

Accepted Answer

Traditional control mechanisms rely on m...

Question 2

Examples of firms that have built a culture around product quality are

Accepted Answer

A)   Northern Telecom and Wal-Mart
B)   Lexus and Hewlett-Packard
C)   Four Seasons and Southwest Airlines
D)   Cirque du Soleil and 3ME) A) and D)
F) A) and C)

Question 3

In terms of corporate culture, Cirque du Soleil's focus is on customer service, not innovation.

Accepted Answer

A) True 
 B)False

Question 4

Feedback-based control systems measure outcomes and serve as a guide to corrective action.

Accepted Answer

A) True 
 B)False

Question 5

For firms facing complex and turbulent business environments

Accepted Answer

A)   goals and objectives that are uncertain prevent opportunism.
B)   traditional strategic controls are usually inappropriate.
C)   complacency about predetermined milestones can prevent adaptability.
D)   detailed plans are needed to maintain order.E) None of the above
F) B) and D)

Question 6

The failure of many auditing firms to raise red flags about accounting irregularities in companies such as Enron and WorldCom is generally attributed to all of the following factors except

Accepted Answer

A)   the desire to get future auditing contracts from the company.
B)   the desire to get consulting work from the company because most audit firms also do consulting work.
C)   the fact that auditors are appointed by the firm.
D)   the failure of U.S. audit firms to follow internationally accepted accounting standards.E) C) and D)
F) B) and D)

Question 7

The Sarbanes-Oxley Act of 2002 does not apply to Canadian publicly-listed companies operating in the U.S. that are listed on U.S. stock exchanges.

Accepted Answer

A) True 
 B)False

Question 8

What are the characteristics of short-term objectives? Provide examples of practical applications of these characteristics by organizations.

Accepted Answer

To be effective, short-term objectives m...

Question 9

In firms with overall low cost strategies, the culture should foster _____ levels of interdependence and rewards should be based primarily on _____ measures of output.

Accepted Answer

A)   low; financial
B)   low; behavioural
C)   high; financial
D)   high; behaviouralE) C) and D)
F) B) and C)

Question 10

In firms with related diversification strategies, the culture should foster _____ levels of interdependence and rewards should be based primarily on _____ measures of output.

Accepted Answer

A)   low; financial
B)   low; behavioural
C)   high; financial
D)   high; behaviouralE) B) and D)
F) A) and B)

Question 11

Reward systems that reinforce an organization's core values and contribute to organizational cohesiveness are the least effective type.

Accepted Answer

A) True 
 B)False

Question 12

"Contemporary" strategic controls involve comparing actual performance to predetermined goals.

Accepted Answer

A) True 
 B)False

Question 13

Effective short-term objectives have all of the following priorities except

Accepted Answer

A)   an emphasis on "do your best" goals.
B)   being achievable yet challenging.
C)   providing a specific time horizon for their attainment.
D)   being specific and measurable.E) None of the above
F) B) and C)

Question 14

Which of the following approaches to behavioural strategic control should be utilized least in an organization in which there is a great need for innovation and a high degree of autonomy?

Accepted Answer

A)   Culture
B)   Rewards
C)   Boundaries
D)   All of the choices are equally importantE) B) and C)
F) All of the above

Question 15

McGill University's Prof. Mintzberg, writing about leaders and strategy, had observations which

Accepted Answer

A)   said strategic control systems fail to detect changes in consumer demand.
B)   "projected the past into the future."
C)   encourage rigid planning and goal-setting processes.
D)   cast doubt on the value of rigid planning and goal-setting processes.E) C) and D)
F) A) and B)

Question 16

Unexpected events such as changes in consumer preference or new government regulations have little effect on short-term objectives that need to remain fixed to be effective.

Accepted Answer

A) True 
 B)False

Question 17

The Sarbanes-Oxley Act of 2002 requires that CEOs and CFOs of publicly-listed companies must reveal off-balance-sheet finances and vouch for the accuracy of information provided.

Accepted Answer

A) True 
 B)False

Question 18

Discuss the contingent nature of strategic controls. How would controls be different for firms pursuing overall low costs strategies versus differentiation strategies?

Accepted Answer

There is no "one best way" to design str...

Question 19

Discuss the benefits of using reward and incentive systems as a means of strategic control.

Accepted Answer

Reward and incentive systems r...

Question 20

Once a strong and healthy organizational culture has been established, it becomes self-sustaining.

Accepted Answer

A) True 
 B)False

Exam 10: Creating Effective Organizational Designs

Reward systems that reinforce an organization's core values and contribute to organizational cohesiveness are the least effective type.

Correct AnswerverifiedShow Answer

Examples of firms that have built a culture around product quality are

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act of 2002 requires that CEOs and CFOs of publicly-listed companies must reveal off-balance-sheet finances and vouch for the accuracy of information provided.

Correct AnswerverifiedShow Answer

For firms facing complex and turbulent business environments

Correct AnswerverifiedShow Answer

Unexpected events such as changes in consumer preference or new government regulations have little effect on short-term objectives that need to remain fixed to be effective.

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act of 2002 does not apply to Canadian publicly-listed companies operating in the U.S. that are listed on U.S. stock exchanges.

Correct AnswerverifiedShow Answer

"Contemporary" strategic controls involve comparing actual performance to predetermined goals.

Correct AnswerverifiedShow Answer

Discuss the contingent nature of strategic controls. How would controls be different for firms pursuing overall low costs strategies versus differentiation strategies?

Correct AnswerverifiedThere is no "one best way" to design str...View AnswerShow Answer

Feedback-based control systems measure outcomes and serve as a guide to corrective action.

Correct AnswerverifiedShow Answer

In terms of corporate culture, Cirque du Soleil's focus is on customer service, not innovation.

Correct AnswerverifiedShow Answer

In firms with related diversification strategies, the culture should foster _____ levels of interdependence and rewards should be based primarily on _____ measures of output.

Correct AnswerverifiedShow Answer

In firms with overall low cost strategies, the culture should foster _____ levels of interdependence and rewards should be based primarily on _____ measures of output.

Correct AnswerverifiedShow Answer

McGill University's Prof. Mintzberg, writing about leaders and strategy, had observations which

Correct AnswerverifiedShow Answer

Effective short-term objectives have all of the following priorities except

Correct AnswerverifiedShow Answer

Which of the following approaches to behavioural strategic control should be utilized least in an organization in which there is a great need for innovation and a high degree of autonomy?

Correct AnswerverifiedShow Answer

Once a strong and healthy organizational culture has been established, it becomes self-sustaining.

Correct AnswerverifiedShow Answer

The failure of many auditing firms to raise red flags about accounting irregularities in companies such as Enron and WorldCom is generally attributed to all of the following factors except

Correct AnswerverifiedShow Answer

Discuss the benefits of using reward and incentive systems as a means of strategic control.

Correct AnswerverifiedReward and incentive systems r...View AnswerShow Answer

What are the "traditional" approaches to strategic control?

Correct AnswerverifiedTraditional control mechanisms rely on m...View AnswerShow Answer

What are the characteristics of short-term objectives? Provide examples of practical applications of these characteristics by organizations.

Correct AnswerverifiedTo be effective, short-term objectives m...View AnswerShow Answer

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There is no "one best way" to design str...
View Answer

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In firms with related diversification strategies, the culture should foster _ levels of interdependence and rewards should be based primarily on _ measures of output.

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In firms with overall low cost strategies, the culture should foster _ levels of interdependence and rewards should be based primarily on _ measures of output.

Correct Answer
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Reward and incentive systems r...
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Traditional control mechanisms rely on m...
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Correct Answer
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To be effective, short-term objectives m...
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