Capstone: Chs 9, 10, 12

Q: How do ethical principles apply to businesses?

They are generally more stringent than the ethical principles for society at large.

They are generally less stringent than the ethical principles for society at large.

They chiefly deal with the actions and behaviors required to operate companies in a socially responsible manner.

They are not materially different from ethical principles in general.

They chiefly deal with the rules each company's top management and board of directors make about "what is right" and "what is wrong."

They are not materially different from ethical principles in general.

Q: According to the school of ethical universalism

concepts of what is ethical and what is unethical are socially determined, leaving room for variation from country to country or circumstance to circumstance.

concepts of right and wrong are universal within countries/societies but not across countries or cultures.

all societies and countries are obligated to apply universally defined ethical principles of right and wrong as set forth by a global body that formulates the Code of Ethical Behavior for the world.

to the extent there is common moral agreement about right and wrong actions and behaviors across multiple cultures and countries, there exists a set of universal ethical standards to which all societies and all individuals can be held accountable.

concepts of what constitute ethical behavior and unethical behavior are dictated by subjectively provable moral principles but not by objectively provable moral principles.

to the extent there is common moral agreement about right and wrong actions and behaviors across multiple cultures and countries, there exists a set of universal ethical standards to which all societies and all individuals can be held accountable.

Q: The school of ethical relativism holds that

concepts of right and wrong as they apply to business behavior are always absolute and usually more stringent than universal ethical principles.

concepts of right and wrong are always governed by business norms in each country, culture, or society.

concepts of right and wrong are always a function of each individual's own set of values, beliefs, and ethical convictions.

what constitutes ethical or unethical conduct should be determined by the religious convictions of each society or each culture within a country.

when there are cross-country or cross-cultural differences in what is deemed ethical or unethical in business situations, it is appropriate for local moral standards to take precedence over what the ethical standards may be elsewhere.

when there are cross-country or cross-cultural differences in what is deemed ethical or unethical in business situations, it is appropriate for local moral standards to take precedence over what the ethical standards may be elsewhere.

Q: Notions of right and wrong, fair and unfair, moral and immoral, ethical and unethical

vary enormously from country to country across the world.

are present in all societies, organizations, and individuals.

ultimately depend on a person's own values and beliefs.

are governed mainly by religious views held in different geographic regions of the world.

ultimately depend on the circumstances—nothing is really black or white when it comes to ethical standards.

are present in all societies, organizations, and individuals.

Q: Which of the following is NOT generally an action for a company to consider in crafting a strategy of social responsibility?

taking steps to provide suppliers, distributors, and other value chain partners with handsome profit margins

pursuing actions to protect the environment and, in particular, to minimize or eliminate any adverse impact on the environment stemming from the company's own business activities

initiating actions to build a workforce that is diverse with respect to gender, race, national origin, and other aspects that different people bring to the workplace

making charitable contributions, donating money and the time of company personnel to community service endeavors, supporting various worthy organizational causes

devoting efforts to employ an ethical strategy and observe ethical principles in operating the business

taking steps to provide suppliers, distributors, and other value chain partners with handsome profit margins

Q: Good corporate citizens

identify up-and-coming managers who have a future in local- or state-level politics.

provide work-from-home options to working mothers residing in distant locations.

develop and market only products that are "environmentally friendly."

go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all.

create a democratic workplace whereby the voices of lower-level employees are heard through representation on the board of directors.

go beyond meeting society's expectations for ethical strategies and business behavior by fostering social benefit and balancing the interests of all

Q: The "triple bottom line" refers to what three performance metrics a company should simultaneously succeed in?

legal, social, and economical

pay, power, and performance

economic, social, and environmental

planning, execution, and results

legal, social, and environmental

economic, social, and environmental

Q: An environmental sustainability strategy consists of a company's deliberate actions to

meet the current needs of customers, suppliers, shareholders, employees, and other stakeholders in a manner that protects the environment, provides for the longevity of natural resources, maintains ecological support systems for future generations, and guards against ultimate endangerment of the planet.

balance commonly held views about what constitutes environmentally appropriate actions against its ability to make a profit.

apply universal norms regarding the protection of the environment to its everyday operations and to function below the levels required by prevailing environmental regulations.

operate in an honorable manner, provide good working conditions for employees, and actively work to enhance the quality of life in the local communities where it operates and in society at large.

protect and enhance natural resources and ecological support systems, taking into account the current consumption for the current generation.

meet the current needs of customers, suppliers, shareholders, employees, and other stakeholders in a manner that protects the environment, provides for the longevity of natural resources, maintains ecological support systems for future generations, and guards against ultimate endangerment of the planet.

Q: Which of the following is NOT a part of the business case for why companies should act in a socially responsible manner?

Every business has a moral duty to be a good corporate citizen

Acting in a socially responsible manner is in the overall best interest of shareholders.

Acting in a socially responsible manner can generate internal benefits (as concerns employee recruiting, workforce retention, employee morale, and training costs).

To the extent that a company's socially responsible behavior wins applause from consumers and fortifies its reputation, a company may win additional patronage.

Acting in a socially responsible manner reduces the risk of reputation-damaging incidents.

Every business has a moral duty to be a good corporate citizen

Q: Which of the following is most likely to be morally valid from the perspective of ethical relativism?

bribing a government official in an underdeveloped country to obtain a permit to build a hospital

employing as laborers children under the age of nine

bribing a government official to allow you to transfer gambling winnings to a tax haven

agreeing to a country's policy of prohibiting the education of females

performing genital mutilations on nonconsenting female teens

bribing a government official in an underdeveloped country to obtain a permit to build a hospital

Q: Which one of the following statements is most accurate?

The implementation of a company's strategy should always

Be customized to fit the particulars of a company's situation.

Rely on the active support of all stakeholders.

Require radical strategy changes.

Involve only minor changes to the existing strategy.

Be customized to fit the particulars of a company's situation.

Q: Which of the following summarizes the most valid reasons to explain what makes the managerial task of strategy implementation so challenging?

There is a lot of time and effort necessary to build core competencies

There is a lot of trial-and-error experimentation that is required to come up with a workable organizational structure

Strategy execution is challenging because of the development of people-management skills required to implement successfully—those that overcome resistance to change and those that ensure the perseverance necessary to get a variety of initiatives moving along

There is a lot of time, training, and creative effort necessary to empower employees and teach them responsible decision making

Strategy execution is challenging because of the development of people-management skills required to implement successfully—those that overcome resistance to change and those that ensure the perseverance necessary to get a variety of initiatives moving along

Q: The most common building blocks for a company's organizational structure

Are almost always the departments performing such key administrative support functions as finance, accounting, information technology, human resource management, and R&D

Involve a functional or departmental structure that includes process, geographic, product, or customer groups performing one or more major processing steps

Usually consist of supply chain management, components manufacture, assembly, distribution, and administration

Usually consist of two divisions, one charged with primary value chain activities and another charged with support activities

Involve a functional or departmental structure that includes process, geographic, product, or customer groups performing one or more major processing steps

Q: Which of the following is most likely one of the first steps to take in launching a successful process of implementing the organization's strategy?

Strive to be more profitable than rivals and aim for a competitive edge based on bigger profit margins

Ensure all requirements of the value chain are fulfilled

Put together a talented management team with the right mix of experiences, skills, and abilities to get things done

Form a mission statement as a basis for managers to achieve organizational objectives

Put together a talented management team with the right mix of experiences, skills, and abilities to get things done

Q: Which one of the following managers is most likely to have strong capabilities oriented toward effective strategy implementation?

Valery typically probes with tough, incisive questions

Greg is often sympathetic to his team members' problems and shortcomings

Jorge prefers to launch, manage, and complete projects by himself

Maria can complete a job in half the time as her colleagues

Valery typically probes with tough, incisive questions

Q: Which of the following descriptions characterizes core competencies/and capabilities in the least accurate way?

Core competencies generally grow out of company efforts to master a strategy-critical technology or to invent and patent a valuable technology

Core competencies have to be tweaked to keep them fresh and responsive to changing customer needs and market conditions

Core competencies tend to emerge gradually rather than blossom quickly

Core competencies typically are lodged in the combined efforts of different work groups and departments

Core competencies generally grow out of company efforts to master a strategy-critical technology or to invent and patent a valuable technology

Q: Superior strategy execution capabilities

Are socially simple

Develop relatively quickly

Are hard for rivals to imitate

Are easy for rivals to copy

Are hard for rivals to imitate

Q: Larger firms with more complex organizational structures are

Not decentralized due to their operating size

Less decentralized in their decision making than larger firms with simpler structures.

More decentralized in their decision making than smaller firms

Less decentralized in their decision making than smaller firms

More decentralized in their decision making than smaller firms

Q: A key organizing challenge of a decentralized structure that underscores employee empowerment is

How to balance the benefits of empowerment with the risks of less control over the decisions and actions of empowered employees

Establishing a collegial, collaborative culture so that decisions can be made by gaining a quick consensus

How to keep empowered employees from making stupid decisions

How to avoid de-motivating employees (because empowered employees are expected to take responsibility for their actions and decisions)

How to balance the benefits of empowerment with the risks of less control over the decisions and actions of empowered employees

Q: Which of the following statements describes a key disadvantage of a decentralized organizational structure?

May put the organization at risk if higher-level management is unaware of the actions of empowered personnel under their supervision

Might increase corporate bureaucracy

Could decrease the response times to changing external events

Lower-level managers and rank-and-file employees would exercise less initiative

May put the organization at risk if higher-level management is unaware of the actions of empowered personnel under their supervision

Q:A company's culture indicates all of the following except

Its core competencies and capabilities along the value chain

Its traditions and norms defining acceptable organizational behavior

Its unwritten rules and how things are done

Its organizational DNA

Its core competencies and capabilities along the value chain

Q: Which of the following statement is most accurate about a company's value statement and code of ethics?

They help to mold the culture and communicate what kinds of actions & behaviors are expected of all company personnel

They are the most important factors determining its reputations with customers, suppliers, employers, shareholders, and society at large

They help prevent it from coming across to customers and the general public as greatly

They serve the valuable purpose of making its suppliers hesitant to engage in business practices that are unethical

They help to mold the culture and communicate what kinds of actions & behaviors are expected of all company personnel

Q: What is most likely the first step that must be taken by the organization, once values and ethical standards have been formally established.

Values and ethical behavior must be instilled via indoctrination and storytelling

Managers who adopt most deeply the values and ethical conduct should be promoted

It must be made clear that the values and ethical standards become enforceable norms of organizational behavior

Employees must learn by hearing the company's values and ethical standards

It must be made clear that the values and ethical standards become enforceable norms of organizational behavior

Q: Even when the organizational culture is strong, it is prone to failure unless it

Instills commitment to best practices and operational excellence

Is compatible with what is needed for effective implementations of the chosen strategy

Rewards identification with a low-cost strategy

Rewards innovation and creativity for technological alignment with the external environment

Is compatible with what is needed for effective implementations of the chosen strategy

Q: The hallmarks of a high-performance corporate culture include

A deep commitment to employee training, unusually attractive fringe benefit packages for company personnel, and frequently revised and updated values and ethics statements.

A deep commitment to top notch quality and superior customer service, dedicate use of TQM and/or Six Sigma quality control programs, and the payment of big performance bonuses and stock option

A strong emphasis on teamwork, strict enforcement of company policies and procedures, and incentive compensations for all employees aligned with a balances score and approach to measuring performance.

A can-do spirit, pride in doing tings right, no-excuses, accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives

A can-do spirit, pride in doing tings right, no-excuses, accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives

Q: Sometimes multiple cultures are formed within the same organization. When is this likely to become a serious problem?

When the subcultures don't clash but rater help coordinating efforts to execute strategy within each subculture with ease

When all subcultures compatible with overarching culture

When they support incompatible business philosophies of behaviors within the organization that are not consistent with an effective strategy implementation

When they promote a collaborative approach to strategy execution

When they support incompatible business philosophies of behaviors within the organization that are not consistent with an effective strategy implementation

Q: How can executives and other-level manager stay informed on the effectiveness of the strategy implementation?

Use management-by-walking-around approach to getting informed

Specifically manager mundane work activities that burden the strategy

Become well-advised

Using fashion forward management

Use management-by-walking-around approach to getting informed

Q: Which statement most accurately completes the following sentence? The process of implementation of corrective adjustment during strategic implementation_______

Is an example of a work environment focused on results in which people will go out of their way to achieve the company's objectives, regardless of how difficult they are

Is a common mechanism to align, constrain, and regulate the behaviors of employees

Varies according to the situation

Allows the organization to train new employees rapidly into the company's widely shared behavioral norms

Varies according to the situation

Q: The character of a company's culture is not a product of

Core values and beliefs espoused by executives

its traditions and the stories that get told over and over

Standards of what is ethically acceptable and what is not

Organizational learning from past errant behavior on the part of executives and employees

Organizational learning from past errant behavior on the part of executives and employees

Q: All of the following will most likely hinder the development of a healthy and strong culture, except

Using empowerment to help create a motivated workforce

Procrastinating in setting objectives and only occasionally communicating expectations for reaching targets

Treating employees as indentured servants

Following a "must be-invented-here" mindset

Using empowerment to help create a motivated workforce