Deck 17: Leading Rapid Growth, crises, and Recovery

Question 1

What was the core theme of Jack Stack's management approach at Springfield Remanufacturing Corporation?

A) Education
B) Profit sharing
C) Long-term goals
D) Communication

Answer 1

A

Question 2

One challenge fast-growth firms face is an over-abundance of viable opportunities.

Answer 2

True

Question 3

In periods of fast growth,strategy and planning become the drivers of success.

Answer 3

False

Question 4

Studies have shown that as long as proper systems are in place,organizational culture is not a major factor in how well a particular firm will deal with growth.

Question 5

Culture and climate is created both by the expectations people bring to the organization and by the practices and attitudes of the key managers.

Question 6

Which bankruptcy filing gives a firm immediate protection from creditors?

A) Chapter 7
B) Chapter 11
C) Chapter 13
D) None of the above

Question 7

The prospect of bankruptcy can provide a foundation for bargaining with creditors in a turnaround situation.

Question 8

With regard to selling inventory to raise quick cash,the sale of raw materials inventory to competitors is generally considered the best route.

Question 9

Most causes of failure are external and out of the control of company management.

Question 10

Bankruptcy law defines the priority of creditors' claims when the firm is liquidated.

Question 11

Bankruptcy can provide only for the liquidation of the business;reorganization is not an option.

Question 12

Net Liquid Balance can be thought of as the "uncommitted cash," a firm has available to meet _________.

Question 13

The faster the rate of growth,the greater the potential for difficulty.

Question 14

Which of the following can be the most disrupting event during a period of explosive growth?

A) Bringing in new senior management
B) Closing a round of expansion funding
C) Expanding of space or facilities
D) Overcoming a challenge from an entrenched competitor

Question 15

Many emerging businesses have no standard costs against which they can compare the actual costs of manufacturing products.The result is they have no variance reporting,and therefore will know only after the fact how ________ a product is.

Question 16

Which of the following is a primary cause of trouble in a company?

A) Sea changes
B) Management
C) Regulatory changes
D) Competitive pressure

Question 17

With small companies,turnaround experts report that most strategic errors relate to the involvement of firms in which area?

A) New competition
B) Change in management of advisors
C) Launching of a big project
D) All of the above

Question 18

What is a major protection against and the biggest help in getting out of trouble?

A) A long term strategy
B) Cash budgets and projections
C) Experienced advisors and directors
D) Depends on the venture

Question 19

What is the primary source of reducing expenses in a troubled company?

A) Advertising
B) Workforce reduction
C) Underutilized assets
D) Working capital

Question 20

Except for the owners,which group had the lowest claim in a bankruptcy situation?

A) Commercial banks
B) Investors
C) Trade debt
D) Leasing companies

Question 21

What are the three most commonly found areas for potential cuts/improvements in a troubled company?

Question 22

List four key elements of effective entrepreneurial leadership.

Question 23

Identify three external forces that can cause a company to get into trouble.

Question 24

________ is not as liquid as receivables but still can be liquidated to generate quick cash.

Question 25

Explain how having a turnaround plan in place can help a troubled company.

Question 26

In rapid growth situations where cash burn rates are racing ahead of collections,what measures need to be in place to avoid chaos and possible collapse?

Question 27

Explain how a 'big project' can get a company into trouble.

Question 28

Bankruptcy is a tremendous source of ________ power for a troubled company.

Question 29

________ is the most liquid noncash asset.

Question 30

List four dimensions of organizational climate.

Question 31

In the Chain of Greatness model,an entrepreneurial mind set leads to ________.

Question 32

Describe how effective group communication is facilitated in successful entrepreneurial firms.

Question 33

The best route to quick cash is ________.

Question 34

In the ________ approach,the manager is seen as willing to relinquish his or her priorities and power in the interests of an overall goal,and the appropriate people are included in setting cross-functional or cross-departmental goals and in making decisions.

Question 35

What three areas does a turnaround specialist examine?

Question 36

In highly successful ventures,leadership is based on ________ rather than on authority.

Question 37

Identify four non-quantitative signals that would indicate the possibility of trouble.

Question 38

A company focuses on growth without considering profitability.Instead of developing a strategy,the firm takes on low-margin business and adds capacity in an effort to grow.What is the likely result?

Question 39

Describe the decline in morale at a troubled company.

Question 40

What is the formula for calculating a company's Net Liquid Balance (NLB)?