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Strategic Management Practice Test: Corporate Culture and Leadership: Keys to Good Strategy Execution

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Strategic Management Practice Test: Corporate Culture and Leadership: Keys to Good Strategy Execution

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25 Questions

1. Which of the following is not one of the leadership roles that senior managers have to play in pushing for good strategy execution and operating excellence?

Weeding out managers who are consistently in the ranks of the lowest performers (the bottom 10%) and who are not enthusiastic about the strategy or how it is being executedLearning the obstacles in the path of good execution and clearing the way for progressBeing out in the field, seeing how well operations are going.Delegating authority to middle and lower-level managers and creating a sense of empowerment among employees to move the implementation process forward.Being out front personally leading the execution process and driving the pace of progress.

2. The hallmarks of a high performance corporate culture include

a balanced scorecard approach to measuring performance, strong emphasis on teamwork, strict enforcement of company policies and procedures, and incentive compensation for all employees.frequently revised and updated values and ethics statements, a deep commitment to employee training, and unusually attractive fringe benefit packages for company personnel.a deep commitment to top-notch quality and superior customer service, dedicated use of TQM and/or Six Sigma quality control programs, and the payment of big performance bonuses and stock options.a deep commitment to pioneering new best practices, a preference for being a fast-follower as opposed to a first-mover or late-mover, and across-the-board bonuses for all personnel when the company meets or beats stretch objectives.a “can-do” spirit, pride in doing things right, no-excuses accountability, and a pervasive results-oriented work climate where people go the extra mile to meet or beat stretch objectives.

3. Which one of the following is a substantive culture-changing action that a company’s managers can undertake to alter a problem culture?

Empowering employees to adopt whatever new work practices they believe will be an improvementRevising policies and procedures in ways that will help drive cultural change and replacing senior executives who are strongly identified with the old culture and may be stonewalling needed changes.Making a concerted effort to turn the company’s core competencies into distinctive competenciesIdentifying aspects of the present culture that pose problemsShifting from decentralized to centralized decision-making so as to give senior executives more authority and control in driving cultural change

4. When a company’s culture is out of sync with what is needed for strategic success and good strategy execution,

the culture has to be changed to accommodate the requirements of good strategy execution as rapidly as can be managed.management must urge company to participate in an all-out effort to create a different portfolio of competencies and capabilities that will permit the strategy to be changed in ways that will fit the culture.management needs to go on the offensive to reinterpret the culture and explain to company personnel why there really is good overall cultural fit with the strategy.the strategy has to be changed to fit the culture as rapidly as possible.the company’s strategic vision, strategic intent, and strategy have to be adjusted to better reflect ingrained core values and cultural norms.

5. A company’s stated core values and ethical principles

are important because of their role in ensuring that company executives will not engage in unethical behavior or behave in a manner that is contrary to the company’s core values.are strictly enforced in strong culture companies and weakly enforced in weak culture companies.are the best indicators of a company’s social responsibility strategy.are typically tightly linked to its strategic vision and strategy.help create a work climate where company personnel share common and strongly-held convictions about how the company’s business is to be conducted and signal employees that they are expected to display the core values in their actions and behaviors and uphold the company’s ethical standards.

6. Changing a problem culture to create better alignment with strategy generally does not involve

replacing old-culture managers with new-breed managers.designing compensation incentives that boost the pay of teams and individuals who display the desired cultural behaviors and hit change-resisters in the pocketbook.using company gatherings and ceremonial occasions to praise individuals and groups that display the desired new cultural traits and behaviors.both symbolic and substantive actions by executives to implant new cultural behaviors. altering the company's strategic vision and/or its strategic and financial objectives.

7. Which of the following statements about the match between a company’s culture and it strategy is false?

It is in management’s best interest to dedicate considerable effort to embedding a corporate culture that encourages behaviors and work practices conducive to good strategy execution.When a company’s culture is grounded in many of the needed strategy-executing behaviors, employees feel genuinely better about their jobs and what the company is trying to accomplish; as a consequence, greater numbers of company personnel exert their bestWhen a company’s present work climate promotes attitudes and behaviors that are well suited to first-rate strategy execution, its culture functions as a valuable ally in the strategy execution process.A tight strategy-culture alignment facilitates building core competencies and distinctive competencies that lead to low operating costs and a cost-based competitive advantage.A deeply embedded culture tightly matched to the strategy aids the cause of competent strategy execution by steering company personnel to culturally-approved behaviors and work practices and thus making it far simpler to root out operating practices that

8. The place for management to begin in trying to change a problem culture is

identifying facets of the present culture that are obstacles to operating excellence and then selling company personnel on a new set of behaviors and work practices.writing a new values statement and describing in highly motivating terms the kind of culture that is needed.to institute incentive compensation programs that generously reward employees for adopting best practices. by spending heavily on programs to train employees in the ways and beliefs of the new culture to be implanted.to visibly praise and reward people who exhibit traits and behaviors that undermine the existing culture.

9. Which one of the following is something to look for in identifying a company’s culture?

Its strategic intent and competitive strategyThe company’s track record in meeting or beating its financial and strategic performance targetsIts resource strengths, core competencies, and competitive capabilities The spirit and character that pervades the work climate and the values, business principles, and ethical standards that management preaches and practicesThe make-up of the company’s value chain

10. Codes of ethics and statements of core values

need to be personally written by the CEO in order to be taken seriously by employees.serve as cornerstones of the corporate culture at companies where executives are truly committed to practicing the values and ethical standards that have been espoused.are the single most effective means of enforcing ethical behavior and cultural norms, provided they are written down and every employee is given a copy.are the best benchmarks for judging whether the corporate culture is deeply planted or not.should always be given top priority emphasis in every employee training program a company conducts.

11. Which of the following is not a factor in contributing to the emergence and sustainability of a strong culture?

Centralized decision-making, strict enforcement of company policies, and a strong commitment to being the market share leaderA founder or strong leader who establishes values, principles, and practices that are consistent and sensible in light of customer needs, competitive conditions, and strategic requirementsA genuine concern for the well-being of the organization’s three biggest constituencies—customers, employees, and shareholdersContinuity of leadership, small group size, stable group membership, geographic concentration, and considerable organizational success A sincere, long-standing company commitment to operating the business according to established traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms

12. The task of top executives in making corrective adjustments includes

deciding when adjustments are needed and what adjustments to make.knowing when to continue with the present corporate culture and when to shift to a different and better corporate culture.deciding whether to try to fix the problems of poor strategy execution or simply shift to a strategy that is easier to execute correctly.deciding how to identify the problems that need fixing. being good at figuring out whether to arrive at decisions quickly or slowly in choosing among the various alternative adjustments.

13. Which one of the following is not particularly helpful in perpetuating a company’s culture?

Systematic indoctrination of new members in the culture's fundamentals Frequent reiteration of core values by senior managers and group membersMaintaining a consistent strategic vision and strategic intent over time.Visibly rewarding those who display cultural norms and penalizing those who don’tTelling and retelling of company legends and regular ceremonies honoring members who display desired cultural behaviors.

14. In leading the push for proficient strategy execution and operating excellence, the roles of top-level managers include

Delegating authority to middle and lower-level managers and creating a sense of empowerment among employees to move the implementation process forward.Learning the obstacles in the path of good execution and clearing the way for progress.Gathering information firsthand and gauging the progress being made.Being out in the field, seeing how well operations are going.All of the above

15. Which of the following is not an example of an unhealthy company culture?

Insular inwardly-focused culturesUnethical and greed-driven culturesHyper-adaptive culturesChange-resistant culturesPoliticized cultures

16. Once established, company cultures can be perpetuated by

avoiding frequent or dramatic reorganizations that could disturb existing relationships and networking among departments and company personnel.rewarding departments that observe cultural norms with above-average budget increases and penalizing those who don't with budget cuts.making cultural values and beliefs the centerpiece of the company's competitive strategy.systematic indoctrination of new members in the culture's fundamentals, frequent reiteration of core values by senior managers and group members, and regular ceremonies honoring members who display desired cultural behaviors.making adherence to cultural beliefs and cultural norms the defining features of the company's strategic vision.

17. Which of the following statements about a strong-culture company is false?

Centralized decision-making, strict enforcement of company policies, diligent pursuit of a distinctive competence, and a bold strategic intent are the hallmarks of a strong-culture company.In a strong-culture company, culturally-approved behaviors and ways of doing things are nurtured while culturally-disapproved behaviors and work practices get squashed.In strong culture companies, senior managers make a point of reiterating key principles and core values to organization members; more importantly, they make a conscious effort to display these principles and values in their own actions and behavior and thIn a strong-culture company, values and behavioral norms are like crabgrass: deeply rooted and hard to weed out. Continuity of leadership, small group size, stable group membership, geographic concentration, and considerable organizational success all contribute to the emergence and sustainability of a strong culture.

18. Which of the following contribute to the emergence and sustainability of a strong culture?

A strong emphasis on developing innovative core competencies and competitive capabilities Centralized decision-making and strict enforcement of company policiesA longstanding commitment to strict enforcement of established policies and procedures and steadfast unwillingness to change these policies and proceduresSenior executives that walk the talk of high ethical standards A sincere, long-standing company commitment to operating the business according to established traditions, thereby creating an internal environment that supports decision making and strategies based on cultural norms

19. The leadership challenges that top executives face in making corrective adjustments when things are not going well include

being able to discern whether to emphasize adjustments that will promote better achievement of strategic performance targets or whether to emphasize adjustments that will promote better achievement of financial performance targets.deciding whether the company would be better off making adjustments that curtail the achievement of strategic objectives or that curtail the achievement of financial objectives or that curtail the achievement of some of both. knowing when to replace poorly performing subordinates and when to do a better job of coaching them to do the right things.deciding when adjustments are needed and what adjustments to make.having the analytical skills to separate the problems due to a bad strategy from the problems due to bad strategy execution.

20. The character of a company’s corporate culture is a product of

the company’s approach to people management and the “chemistry” and “personality” that permeates its work environment.the work practices and behaviors that define “how we do things around here.”All of these.its standards of what is ethically acceptable and what is not and the stories that get told over and over to illustrate and reinforce the company’s values, business practices, and traditions.the core values and business principles that management preaches and practices.

21. At companies where executives believe in the merits of practicing the values and ethical standards that have been espoused

the company's chances for strategic success and market leadership are substantially reduced because company personnel are hesitant to engage in business practices that are unethical.the core values and ethical standards are made a prominent and visible part of the company’s strategic intent and strategy.the stated core values and ethical principles are the cornerstones of the corporate culture.the company’s pursuit of higher profits is tempered, so that the company will not come across to customers and the general public as greedy.the executives have usually personally written the statement of core values and the code of ethics.

22. Which one of the following is not a typical characteristic of a weak company culture?

A complicated value chain and a very diverse set of core competencies—both of which act to create multiple subculturesFew widely-revered traditions and few culture-induced normsA tendency among employees to view their jobs as a just a way of making a living.A lack of values and principles that are consistently preached or widely sharedNo strong employee allegiance to what the company stands for or to operating the business in well-defined ways

23. Unhealthy company cultures typically have such characteristics as

tight budget controls, overly strict enforcement of longstanding polices and procedures, and low ethical standards.a politicized internal environment, hostility to change and an aversion to looking outside the company for best practices, new managerial approaches, and innovative ideas.overemphasis on employee empowerment, a complacent approach to building competencies and capabilities, no coherent business philosophy, and excessively bureaucratic policies and procedures.a preference for conservative strategies, an aversion to incentive compensation, and excessive emphasis on profitability.too little emphasis on innovation, a strong preference for hiring managers from outside the company, very few core values and traditions, and a weakly enforced code of ethics.

24. Leading the drive for good strategy execution and operating excellence calls upon senior executives to

delegate little to subordinates and, instead, personally exert a strong, highly visible influence on the company’s approaches to strategy execution.be very personable, an effective communicator, and skilled in the empowerment of company personnel.be out front personally leading the implementation process and driving the pace of progress.be creative in establishing policies and procedures that will instill high standards of operating excellence.be charismatic, a decisive decision-maker, and make inspiring speeches at company events.

25. A work environment where the culture is well-matched to the conditions and behaviors requisite for good strategy execution is a valuable managerial ally because

there is much less risk of embarrassing ethical violations.there is reduced need to employ benchmarking, best practice programs, reengineering, Six Sigma, and TQM to achieve competitive advantage.it provides company personnel with clear guidance regarding “how we do things around here” and produces significant peer pressures from co-workers to conform to culturally acceptable norms.there is reduced need to incorporate negative motivational practices and punitive-type incentives into the reward structure and in the company's approach to people management.the culture can then be readily incorporated into the company's strategic vision and facilitate the achievement of stretch objectives.

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25 Questions

❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know? Privacy | Terms |

Without work one finishes nothing. - Ralph Waldo Emerson© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.

About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | OSHA Basics Quiz | What Should We Know?
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Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com