Question 1

A dynamic industry expert is someone with an analytical mind who is highly knowledgeable in other industries and can manage diverse product lines.

Accepted Answer

A dynamic industry expert is someone who is highly knowledgeable and adaptable within their specific industry, rather than across multiple unrelated industries. They may specialize in managing diverse product lines within their industry, but their expertise is focused rather than broadly spread across different fields.

Question 2

Staffing issues can involve hiring new people with new skills, firing people with inappropriate or substandard skills, and/or training existing employees to learn new skills.

Accepted Answer

Staffing issues can indeed involve any of these actions in order to ensure that the organization has the appropriate skill sets needed to achieve its goals.

Question 3

To successfully downsize, companies must invest in the remaining employees.

Accepted Answer

When downsizing occurs, it can cause anxiety and uncertainty for the remaining employees. To maintain the morale of the workforce and ensure that the company continues to thrive after downsizing, it is essential to invest in the remaining employees by providing training, support, and development opportunities. This can help them feel valued and enable them to take on new roles or responsibilities, ultimately benefiting the company's bottom line.

Question 4

There is a very strong connection between strategy and training at successful organizations.

Accepted Answer

Strategy and training are both important components of organizational success. A well-defined strategy provides direction and focus to the organization, while effective training ensures that employees have the necessary skills and knowledge to execute the strategy. Successful organizations recognize this connection and invest in training programs that are aligned with their strategic objectives.

Question 5

Succession planning has become the most important topic discussed by boards of directors.

Accepted Answer

Succession planning is a critical aspect of corporate governance and is becoming increasingly important for boards of directors to address.

Question 6

Staffing requirements are likely to follow a change in strategy.

Accepted Answer

When a company changes its strategy, it may require different skills and expertise in its workforce, which can impact staffing requirements.

Question 7

Firms in trouble seldom choose outsiders to lead them.

Accepted Answer

Firms in trouble often bring in outsider leaders to bring a fresh perspective and implement necessary changes.

Question 8

Executive succession is the process of replacing a key top manager.

Accepted Answer

Executive succession refers to the process of replacing a key top manager, such as a CEO, when they retire, resign, or are terminated.

Question 9

To improve organizational learning, many multinational corporations are providing their managers with international assignments as long as five years.

Accepted Answer

Assigning managers to international assignments for longer periods of time allows them to gain a deeper understanding of different cultures and business practices, which can improve organizational learning.

Question 10

Analyzers tend to have CEOs with a marketing/sales background.

Accepted Answer

Analyzers are focused on efficiency and profitability, and typically have CEOs who bring a strong business acumen to their leadership style, often from a background in marketing and sales.

Question 11

Training and development can be especially important for organizations implementing an overall low cost or differentiation strategy, but not for those in retrenchment.

Accepted Answer

Organizations implementing a low-cost or differentiation strategy often rely on their human resources to create and maintain a competitive advantage, making training and development essential. However, organizations in retrenchment may be focused on reducing costs and may not have the resources to invest in training and development.

Question 12

Research indicates that a multinational corporation performs at a higher level when its CEO has international experience.

Accepted Answer

Research has shown that multinational corporations with CEOs who have international experience are more likely to have better financial performance and engage in more international activities compared to those without such experience. This is because international experience helps CEOs to better understand and navigate cultural differences, global markets, and regulatory frameworks, among other factors that influence organizational performance.

Question 13

A good retrenchment strategy can be implemented well in terms of organizing, but poorly in terms of staffing.

Accepted Answer

Organizing refers to the restructuring of the company and its operations to minimize costs and increase efficiency. This can be done well in a retrenchment strategy. However, staffing refers to the reduction of employees and this can have negative consequences such as decreased morale and loss of valuable talent. Therefore, staffing can be poorly implemented in a retrenchment strategy.

Question 14

Companies that pursue related diversification strategies through internal development make greater use of interdivisional transfers of people than do companies that grow through unrelated acquisitions.

Accepted Answer

Companies pursuing related diversification strategies through internal development often use interdivisional transfers of people to share knowledge, skills, and resources between divisions. In contrast, companies growing through unrelated acquisitions may not have as strong of a need for interdivisional transfers of people, as the acquired company may operate independently from the rest of the organization.

Question 15

European multinational corporations seldom use people with an international orientation to staff their management positions.

Accepted Answer

This statement is false. European multinational corporations often prefer to hire people with an international background or experience to staff their management positions to bring diversity and a global perspective to their organization.

Question 16

Chandler proposed that the most appropriate CEO for a firm remains constant as the company proceeds through its life cycle.

Accepted Answer

Chandler's theory suggested that the appropriate CEO for a firm changes as the company evolves through different stages of its life cycle.

Question 17

IHOP's CEO, Julia Stewart, built a reputation as a turnaround specialist.

Accepted Answer

Julia Stewart became CEO of IHOP in 2002 when the company was struggling financially. She successfully implemented a turnaround strategy that brought the restaurant chain back to profitability and ultimately led to its acquisition of Applebee's in 2007.

Question 18

Downsizing refers to the planned elimination of positions or jobs; it is often used to implement retrenchment strategies.

Accepted Answer

Downsizing is a strategy used by organizations to reduce costs and improve efficiency by eliminating positions or jobs. It is a form of retrenchment and often accompanies other cost-cutting measures such as outsourcing or restructuring.

Question 19

A professional liquidator was the executive type called in to Montgomery Ward when the company declared bankruptcy for the second time.

Accepted Answer

The statement accurately describes a professional liquidator being brought in during Montgomery Ward's second bankruptcy.

Question 20

Research indicates that companies undertaking cost-cutting programs are four times more likely than others to cut costs again, typically by reducing staff.

Accepted Answer

According to the statement, companies that have already undertaken cost-cutting programs are more likely to cut costs again by reducing staff.

Quiz 10: Strategy Implementation: Staffing and Directing