QuestionQuestion: In companies where intellectual capital is crucial to

Question: In companies where intellectual capital is crucial to good strategy execution, which of the following is generally not among the practices that companies use to establish a talented knowledge base?

A Providing promising employees with challenging, interesting, and skill-stretching assignments and also rotating them through jobs that not only have great content but also span functional and geographic boundaries

B Expecting employees to take full responsibility for staying up to date, thereby minimizing the need to train or retrain employees

C Coaching average performers to improve their skills and capabilities, while weeding out underperformers and benchwarmers

D Encouraging employees to challenge existing ways of doing things, to be creative and innovative in proposing better ways of operating, and to push their ideas for new products or businesses

E Fostering a stimulating and engaging work environment such that employees will consider the company a great place to work

Question: Diversification merits strong consideration whenever a single-business company

A Has integrated backward and forward as far as it can

B Is faced with diminishing market opportunities and stagnating sales in its principal business

C Has achieved industry leadership in its main line of business

D Encounters declining profits in its mainstay business

E Faces strong competition and is struggling to earn a good profit

Question: According to integrated social contracts theory

A Universal ethical principles apply in those situations where most all societies – endowed with rationality and moral knowledge – have common moral agreement on what is wrong and thereby put limits on what actions and behaviors fall inside the boundaries of what is right and which ones fall outside

B Commonly held views about what is morally right and wrong form a contract with society that is binding on all individuals, groups, organizations, and businesses in terms of establishing right and wrong and in drawing the line between ethical and unethical behaviors

C Universal ethical principles or norms leave some moral free space for the people in a particular country (or local culture or even a company) to make specific interpretations of what other actions may or may not be permissible within the bounds defined by universal ethical principles

D Universal ethical norms always take precedence over local ethical norms

E All of the above

Question: Once company managers have decided on a strategy, the emphasis turns to

A Converting the strategy (and any associated strategic plan) into actions and good results

B Empowering employees to revise and reorganize value chain activities to match the strategy

C Establishing policies and procedures that instruct company personnel in the ways and means of executing the strategy

D Developing a detailed implementation plan that sets forth exactly what every department and every manager needs to do to proficiently execute the company’s strategy

E Building the core competencies and competitive capabilities needed to execute the strategy

Question: A company’s culture is typically grounded in and shaped by

A Its core competencies and competitive capabilities

B Its long-term strategic success or lack thereof

C The degree to which top management is committed to achieving market leadership

D Its core values and the bar it sets for ethical standards

E The company’s strategic intent and its reward system

Question: Putting together a capable top management team

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