Deck 8: Strategic Control and Restructuring

Question 1

Feedforward control provides managers with information concerning outcomes from organizational processes.

Answer 1

False

Question 2

One example of a leveraged buyout is when a business unit is purchased by its managers.

Answer 2

True

Question 3

Restructuring typically involves a renewed emphasis on the things an organization does well,combined with a variety of tactics to revitalize the organization and strengthen its competitive position.

Answer 3

True

Question 4

Most firms that file for Chapter XI protection are able to retain most of their assets through the end of the reorganization process.

Question 5

When managers are trying to anticipate changes in the internal and external environments,they are using:

A)Feedforward control
B)Vertical control
C)Feedback control
D)Horizontal control
E)Integrative control

Question 6

No strategy or organizational design works indefinitely.

Question 7

A control system that consists of rules,policies and guidelines to guide the behavior of organizational members is:

A)Bureaucratic control
B)Output control
C)Clan control
D)Process control
E)Human resources systems

Question 8

Feedforward control systems are especially important because of:

A)Rapid changes in the broad environment
B)Stability in the environment
C)High profits
D)The decreasing role of government regulation in the world economy
E)Social audits

Question 9

A strategic control system helps top managers evaluate organizational progress.

Question 10

Feedback control systems perform the following functions in organizations:

A)They help managers decide when and how to intervene in organizational processes by identifying areas requiring further attention
B)They motivate managers to pursuer organizational interests
C)Creating specific objectives ensures that managers understand the plans and strategies that guide organizational decisions
D)All of these are true
E)A and B are true,but not C

Question 11

Restructuring can be defined as a detailed analysis of a firm's competitors and other external stakeholders and competitive forces.

Question 12

Feedback control includes a timeframe for measuring performance.

Question 13

Which type of control provides managers with information concerning outcomes from organizational activities?

A)Feedforward control
B)Vertical control
C)Feedback control
D)Horizontal control
E)Integrative control

Question 14

Feedback control systems can motivate managers to pursue organizational interests as opposed to purely personal interests.

Question 15

Downscoping involves increasing an organization's diversification while reducing its size.

Question 16

The first step in a strategic control system is measuring actual firm performance.

Question 17

A control system that is based on socialization of organizational members is:

A)Bureaucratic control
B)Output control
C)Clan control
D)Process control
E)Human resources systems

Question 18

Budgets are a common type of feedforward control.

Question 19

A strategic control system helps managers to assess the relevance of the organization's strategy:

A)To its profitability
B)To its progress in the accomplishment of its goals
C)To the needs of its employees
D)In order to specify product line extensions
E)To its competitors' strategies

Question 20

The elements in a feedback control system include all of the following except:

A)Establishment of targets and time frames in which they should be accomplished
B)Assignment of responsibility for achieving specific targets to managers
C)Development of an action plan
D)Establishment of policies
E)Identification of key result areas

Question 21

A firm's business cycle orientation includes:
A)Business-cycle sensitive management principles

A)Forecasting resources
B)Business cycle literacy
C)Supportive organizational culture
D)All of the above

Question 22

What is a divestiture? Describe the two common types of divestitures.What types of businesses should be divested?

Question 23

Common restructuring techniques include all of the following except:

A)Chapter XI reorganization
B)Leveraged buyouts
C)Retrenchment
D)Refocusing corporate assets on distinctive competencies
E)These are all common restructuring techniques; there is no exception

Question 24

Which of the following provides an opportunity for an organization to work out a plan for solving its financial problems under the supervision of a federal court?

A)Prepackaged reorganization strategy
B)Chapter XIII bankruptcy
C)Restructuring
D)Downscoping
E)Chapter XI reorganization

Question 25

Which of the following restructuring actions is most likely to involve the divestiture of a business unit?

A)Leveraged buyout
B)Joint venture
C)Downscoping
D)Acquisition
E)None of the above

Question 26

What is restructuring? Why might a firm restructure? What are some of the common restructuring techniques?

Question 27

Businesses that should be strongly considered for divestiture during restructuring include those:

A)With high value in the financial markets
B)With high R&D expenses
C)With low operational relatedness
D)With low to moderate risk
E)With high capital intensity

Question 28

If a firm sells units that are not consistent with the strategic direction of the organization,it is involved in:

A)Low-cost leadership
B)Leveraged buyouts
C)Downscoping
D)Outsourcing
E)Downsizing

Question 29

Which of the following is a common outcome from leveraged buyouts?

A)Work force stabilization or increase
B)Opening of new plants
C)Increase in debt
D)Low financial returns for the executives who initiate the buyouts
E)Increased innovation and R&D

Question 30

National cultures can be classified on their levels of Confucian dynamics.This means:

A)The degree to which decisions are focused on the long term or short term
B)The degree to which society draws strong distinctions between gender roles
C)The degree to which members of society accept uneven power distribution
D)The degree to which the focus of society is on the individual or the group
E)The degree to which members of society are tolerant of uncertainty and ambiguity

Question 31

What is a strategic control system? What is the difference between feedforward and feedback controls?

Question 32

Which of the following is not a dimension used to describe national cultures?

A)The degree to which members of the society accept or expect uneven power distributions in society
B)The degree to which the focus of society is on individuals or the group
C)The degree to which the society draws strong distinctions between gender roles
D)The degree to which members of the society reflect established ethical norms
E)The degree to which members of society are tolerant of uncertainty and ambiguity

Question 33

Chapter XI reorganization:

A)Means that an organization must liquidate its assets
B)Means that some management decisions must be approved by a court
C)Is intended for companies that have lots of liquid assets but are locked into an unfair labor contract
D)Is most successful if an organization has very high debt levels
E)None of the above

Question 34

Retrenchment:

A)Often involves work force reductions
B)Is a growth strategy
C)Involves an increase in the firm's workforce
D)Involves a loosening of cost controls
E)Typically builds on the existing corporate culture