Question 1

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the U.K. food business had booked income early and delayed the bookingofcosts in order to improve appearances of financial performance. This scandal results from ________ and ________.

Accepted Answer

A)   poor environment; management systems
B)   poor governance; control
C)   external environmental factors; internal environmental factors
D)   leadership; financial systemsE) C) and D)
F) B) and D)

Question 2

The power of shareholders has intensified in recent years because of the

Accepted Answer

A)   decreasing influence of large institutional investors.
B)   increasing influence of large institutional investors.
C)   decline in the number of interested institutional investors.
D)   increasing influence of small individual investors.E) B) and C)
F) B) and D)

Question 3

In emerging economies and continental Europe, firms often can be characterized by all the following except

Accepted Answer

A)   concentrated ownership.
B)   low family ownership and control.
C)   business group structures.
D)   weak legal protection for minority shareholders.E) A) and D)
F) A) and C)

Question 4

Discuss the differences between informational control and behavioural control and when each is appropriate.

Accepted Answer

Adapting to and anticipating both internal and external environmental change is an integral part of strategic control. The relationships between strategy formulation, implementation, and control are highly interactive, as suggested by Exhibit 9.2. The exhibit also illustrates two different types of strategic control: informational control and behavioral control. Informational control is a method of organizational control in which a firm gathers and analyzes information from the internal and external environment in order to obtain the best fit between the organization's goals and strategies and the strategic environment. It is primarily concerned with whether the organization is doing the right things. Behavioral control is a method of organizational control in which a firm influences the actions of employees through culture, rewards, and boundaries. It asks if the organization is doing things right in the implementation of its strategy. Both the informational and behavioral components of strategic control are necessary, but not sufficient, conditions for success. What good is a well-conceived strategy that cannot be implemented? Or what use is an energetic and committed workforce if it is focused on the wrong strategic target?

Question 5

For businesses facing complex and turbulent business environments, which of the following is true?

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) B) and C)
F) B) and D) B

Question 6

Which of the following is not an example of how organizational culture exerts behavioral control?

Accepted Answer

A)   Culture helps maintain control by creating behavioral norms.
B)   Culture generates unwritten standards of acceptable behavior.
C)   Culture encourages individual identification with the organization and its objectives.
D)   Culture sets explicit boundaries.E) A) and B)
F) A) and C)

Question 7

When would single-loop control systems be most appropriate?

Accepted Answer

The traditional approach to strategic co...

Question 8

Double-loop learning in the contemporary approach to strategic control means that the organizational assumptions, premises, goals and strategies are occasionally monitored, tested, andreviewed.

Accepted Answer

A) True 
 B)False

Question 9

Contemporary strategic controls involve comparing actual performance to predetermined goals.

Accepted Answer

A) True 
 B)False

Question 10

As firms simultaneously downsize and face the need for increased coordination across organizational boundaries, a control system based primarily on ________ is dysfunctional.

Accepted Answer

A)   boundaries and constraints
B)   culture and rewards
C)   organizational loyalty
D)   innovation and risk takingE) B) and C)
F) A) and B)

Question 11

Expropriation of minority shareholders means that minority shareholders

Accepted Answer

A)   must sell their shares upon demand.
B)   cannot own shares in foreign firms.
C)   do not receive dividends.
D)   are adversely affected by the actions of controlling shareholders.E) A) and B)
F) All of the above

Question 12

For the maximum benefit of each part, a corporation is a mechanism created to allow different parties to contribute all the following except

Accepted Answer

A)   buildings.
B)   capital.
C)   expertise.
D)   labor.E) A) and B)
F) A) and C)

Question 13

Single-loop learning, according to Chris Argyris, is most appropriate when the environment is ________, goals and objective can be measured with a ________ of certainty, and there is ________ need for complex measures of performance.

Accepted Answer

A)   stable; high level; little
B)   unstable; low level; great
C)   stable; low level; great
D)   unstable; high level; littleE) B) and D)
F) B) and C)

Question 14

Discuss several actions that can have a positive influence on board of director dynamics as the board works to both oversee and advise management.

Accepted Answer

The actions include: (1) building the right expertise on the board; (2) keeping the board size manageable; (3) choosing directors who can participate fully; (4) balancing the need to focus on the past, the present, and the future; (5) considering management talent development; (6) getting a broad view; and (7) maintaining norms of transparency and trust.

Question 15

One of the most critical roles of the board of directors is to create incentives that align the interests of the CEO and top executives with the interests of shareholders.

Accepted Answer

A) True 
 B)False

Question 16

Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations. Which of thefollowing is not a technique for moving in that direction?

Accepted Answer

A)   Hire people who identify with the dominant values of the organization.
B)   Develop managerial role models.
C)   Minimize training and indoctrination.
D)   Align reward systems with organizational goals and objectives.E) A) and B)
F) A) and C)

Question 17

Effectively implementing strategy requires manipulating three key control levers: culture, rewards, and boundaries. What are the compelling reasons for an increased emphasis on cultureandrewards in a system of behavior controls?

Accepted Answer

There are two compelling reasons for an ...

Question 18

Brent Beshore, CEO of adventur.es, a private investment firm, walks around the office every day thanking people for their contributions. What purpose does this serve in terms of attainingbehavioral control?

Accepted Answer

A)   It reminds employees of adventur.es rules and regulations.
B)   It helps reinforce and sustain the adventur.es culture.
C)   It demonstrates to employees the importance of articulating explicit goals and objectives.
D)   It makes the adventur.es reward system very explicit.E) A) and D)
F) A) and C)

Question 19

In order to have effective board operations, firms need to cultivate engaged and committed boards.

Accepted Answer

A) True 
 B)False

Question 20

As firms downsize, a control system based on rewards and culture becomes dysfunctional.

Accepted Answer

A) True 
 B)False

Exam 9: Strategic Control and Corporate Governance

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the U.K. food business had booked income early and delayed the bookingofcosts in order to improve appearances of financial performance. This scandal results from and .

Correct Answer
verified

The power of shareholders has intensified in recent years because of the

Correct Answer
verified

In emerging economies and continental Europe, firms often can be characterized by all the following except

Correct Answer
verified

Discuss the differences between informational control and behavioural control and when each is appropriate.

For businesses facing complex and turbulent business environments, which of the following is true?

Correct Answer
verified
B

Which of the following is not an example of how organizational culture exerts behavioral control?

Correct Answer
verified

When would single-loop control systems be most appropriate?

Correct Answer
verified
The traditional approach to strategic co...
View Answer

Double-loop learning in the contemporary approach to strategic control means that the organizational assumptions, premises, goals and strategies are occasionally monitored, tested, andreviewed.

Correct Answer
verified

Contemporary strategic controls involve comparing actual performance to predetermined goals.

Correct Answer
verified

As firms simultaneously downsize and face the need for increased coordination across organizational boundaries, a control system based primarily on ________ is dysfunctional.

Correct Answer
verified

Expropriation of minority shareholders means that minority shareholders

Correct Answer
verified

For the maximum benefit of each part, a corporation is a mechanism created to allow different parties to contribute all the following except

Correct Answer
verified

Single-loop learning, according to Chris Argyris, is most appropriate when the environment is , goals and objective can be measured with a of certainty, and there is need for complex measures of performance.

Correct Answer
verified

Discuss several actions that can have a positive influence on board of director dynamics as the board works to both oversee and advise management.

One of the most critical roles of the board of directors is to create incentives that align the interests of the CEO and top executives with the interests of shareholders.

Correct Answer
verified

Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations. Which of thefollowing is not a technique for moving in that direction?

Correct Answer
verified

Effectively implementing strategy requires manipulating three key control levers: culture, rewards, and boundaries. What are the compelling reasons for an increased emphasis on cultureandrewards in a system of behavior controls?

Correct Answer
verified
There are two compelling reasons for an ...
View Answer

Brent Beshore, CEO of adventur.es, a private investment firm, walks around the office every day thanking people for their contributions. What purpose does this serve in terms of attainingbehavioral control?

Correct Answer
verified

In order to have effective board operations, firms need to cultivate engaged and committed boards.

Correct Answer
verified

As firms downsize, a control system based on rewards and culture becomes dysfunctional.

Correct Answer
verified

Exam 9: Strategic Control and Corporate Governance

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the U.K. food business had booked income early and delayed the bookingofcosts in order to improve appearances of financial performance. This scandal results from ________ and ________.

Correct AnswerverifiedShow Answer

The power of shareholders has intensified in recent years because of the

Correct AnswerverifiedShow Answer

In emerging economies and continental Europe, firms often can be characterized by all the following except

Correct AnswerverifiedShow Answer

Discuss the differences between informational control and behavioural control and when each is appropriate.

For businesses facing complex and turbulent business environments, which of the following is true?

Correct AnswerverifiedB

Which of the following is not an example of how organizational culture exerts behavioral control?

Correct AnswerverifiedShow Answer

When would single-loop control systems be most appropriate?

Correct AnswerverifiedThe traditional approach to strategic co...View AnswerShow Answer

Double-loop learning in the contemporary approach to strategic control means that the organizational assumptions, premises, goals and strategies are occasionally monitored, tested, andreviewed.

Correct AnswerverifiedShow Answer

Contemporary strategic controls involve comparing actual performance to predetermined goals.

Correct AnswerverifiedShow Answer

As firms simultaneously downsize and face the need for increased coordination across organizational boundaries, a control system based primarily on ________ is dysfunctional.

Correct AnswerverifiedShow Answer

Expropriation of minority shareholders means that minority shareholders

Correct AnswerverifiedShow Answer

For the maximum benefit of each part, a corporation is a mechanism created to allow different parties to contribute all the following except

Correct AnswerverifiedShow Answer

Single-loop learning, according to Chris Argyris, is most appropriate when the environment is ________, goals and objective can be measured with a ________ of certainty, and there is ________ need for complex measures of performance.

Correct AnswerverifiedShow Answer

Discuss several actions that can have a positive influence on board of director dynamics as the board works to both oversee and advise management.

One of the most critical roles of the board of directors is to create incentives that align the interests of the CEO and top executives with the interests of shareholders.

Correct AnswerverifiedShow Answer

Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations. Which of thefollowing is not a technique for moving in that direction?

Correct AnswerverifiedShow Answer

Effectively implementing strategy requires manipulating three key control levers: culture, rewards, and boundaries. What are the compelling reasons for an increased emphasis on cultureandrewards in a system of behavior controls?

Correct AnswerverifiedThere are two compelling reasons for an ...View AnswerShow Answer

Brent Beshore, CEO of adventur.es, a private investment firm, walks around the office every day thanking people for their contributions. What purpose does this serve in terms of attainingbehavioral control?

Correct AnswerverifiedShow Answer

In order to have effective board operations, firms need to cultivate engaged and committed boards.

Correct AnswerverifiedShow Answer

As firms downsize, a control system based on rewards and culture becomes dysfunctional.

Correct AnswerverifiedShow Answer

Tesco was forced to restate its earnings for the first half of 2014 to 431 million USD because senior managers in the U.K. food business had booked income early and delayed the bookingofcosts in order to improve appearances of financial performance. This scandal results from and .

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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B

Correct Answer
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Correct Answer
verified
The traditional approach to strategic co...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Single-loop learning, according to Chris Argyris, is most appropriate when the environment is , goals and objective can be measured with a of certainty, and there is need for complex measures of performance.

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
There are two compelling reasons for an ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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