Fred r david – strategic management, 13th edition ch10

Particular attention should be given to leadership because leaders of the organization not only shape the culture anddevelop and oversee strategy implementation, but are also the ones wh

According to the GCC's definition, farsighted vision is a short-term outlook that recognizes the importance

of building sustainable institutions for the current generation

7)

22)

The tradition-driven leaders usually make decisions at the top and centralize control, and maintain

formality in operational aspects and conduct

Having a succession plan shows CEOs are preoccupied with the future and not focused on building a strongculture immediately

The articulation of corporate values enhances loyalty among employees and creates a positive image in the marketplace

All of the following UAE based Arab companies were recognized by Boston Consulting Group as being

among the top 100 global challengers, except

60)

The Arab companies recognized by Boston Consulting Group as being among the top 100 global

challengers were selected for their

to equate their corporations with the rest of the market and achieve competitive advantage

C)

regional and global perspective

D) cross-cultural discrimination

C)

practical openness

D) global perspective

regional perspective

C)

practical openness

D) global perspective

C)

regional perspective

D) farsighted vision

67)

Executives such as Mohammad Omran (Chairman, Etisalat), Ibrahim S Dabdoub (CEO, National Bank of Kuwait), Ahmed Heikal (Chairman of Citadel Capital) and Abdel Hamid Shoman (Chairman, the Arab Bank) are given as examples of people who have

been fortunate that their organizations have been credible players in the marketplace without any

attempts to shape a strong organizational culture

C)

formally

D) informally

decentralization of decision-making

C)

attention to input from subordinates

D) coaching

C)

Strategic managerial roles

D) Operationally-related managerial roles

76)

The strategic managerial roles of Arab CEOs include activites that are related to which of the following? 76)

Unlike most of their counterparts in the west, Arab CEOs face three interwoven challenges Which of the

following is not one of those challenges?

Gut feelings and unique insights grounded on a keen alertness to emerging opportunities, as well as basic common sense

Which of the following is not a standard activity that companies should pursue in order to increase their

chances of finding a good CEO that will maintain quality performance?

Issue a communication that the previous CEO is still in charge in the short term; stay confident but

remember how much there is to learn; alert shareholders to the possibility of a period of turbulence

Which of the following is not a characteristic of a strong culture?

C)

Adaptability

D) Social norms

Discourage any questionning of organizational priorities

C)

Politicized culture

D) Insular or inward focus

C)

manager-line staff relationships

D) culture-strategy relationships

C)

corporate citizenship

D) organizational image

ESSAY Write your answer in the space provided or on a separate sheet of paper

15) TRUE 16) FALSE 17) TRUE 18) FALSE 19) TRUE 20) FALSE 21) TRUE 22) FALSE 23) TRUE 24) TRUE 25) TRUE 26) TRUE 27) FALSE 28) TRUE 29) TRUE 30) TRUE 31) TRUE 32) FALSE 33) TRUE 34) TRUE

35) FALSE 36) FALSE 37) TRUE 38) TRUE 39) FALSE 40) TRUE 41) FALSE 42) TRUE 43) FALSE 44) TRUE 45) FALSE 46) TRUE 47) FALSE 48) TRUE 49) FALSE 50) TRUE 51) FALSE 52) TRUE 53) TRUE 54) TRUE

55) FALSE 56) TRUE 57) FALSE 58) TRUE 59)

A 60)

A 61)

C 62)

C 63)

D 64)

B 65)

C 66)

B 67)

B 68)

D 69)

D 70)

B 71)

C 72)

D 73)

B 74)

A

75)

B 76)

E 77)

C 78)

B 79)

B 80)

A 81)

B 82)

C 83)

D 84)

C 85)

C 86)

A 87)

D 88)

B 89)

E 90)

B 91)

A 92)

D 93)

A 94)

Autocratic - Leadership decisions are made at the top, and there are strict rules and regulations regarding

procedures and coordination Consultation rarely takes place and sharing of strategic information or

coaching of subordinates is not likely to happen Therefore, implementation may fall short of expectations

Benevolent (Sheikocratic) - Tends to involve a centralized authority and an inclination toward personal

relations These leaders, too, may set specified rules and policies, but may manage business affairs informally Input is received from subordinates but may not necessarily be incorporated Often, leaders rely

on intuition rather than on objective data Implementation of directions depends on how the leader is involved and the degree of his subordinates’ commitment to the success of the organization

Tradition-Driven (Group-Oriented) - Concerned with group harmony and the viability of the

organization to be sustained through coaching, involvement, and attentiveness to input from subordinates.Leaders might make decisions at the top and centralize control, but are often attentive to feedback from subordinates and maintain informality in operational aspects and conduct Because of their involvement in performance, subordinates may exhibit commitment to goal implementation

Spiritually Enlightened - Organizational interests are aligned with the welfare and viability of the

community Leaders are guided by ehsan and general Islamic assumptions They seek to take advantage of

opportunities in business and the political arena but are directly influenced by an in-built motivation to pursue goodness and are guided by deeply held beliefs In articulating their strategic vision, they seek input and participation from their subordinates

95)

Leadership and organizational culture are instrumental for strategy formulation and execution Particular attention should be given to leadership because leaders of the organization not only shape the culture anddevelop and oversee strategy implementation, but are also the ones who are ultimately responsible for steering organizational direction and cultural change

These roles involve motivating and inspiring others to action, providing critical information and guidance, clarifying cultural norms and values, fostering cooperative environments, and resolving conflicts, among others Managers in the Arab world are generally comfortable with these activities and roles Because of the personal aspects of relationships, these activities take on an added value and managers undertake them with exceptional enthusiasm Increasingly in the Arab world, corporations have become an

influencing factor in economic development and improving the welfare of the people Accordingly,

organizational leaders have vital roles, both in their organizations and in society How leaders develop and act, therefore, is important for organizational performance and growth

Their strategic roles should be given priority and their aspirations and relations to employees and

customers are essential for enhancing loyalty and performance in the marketplace Likewise, culture can either make strategy implementation easier or harder So, linking strategy to culture is vital for high-performance organizations Managing strategy—culture relationships gives insight on what has to be done

to energize employees, deploy resources, and achieve high performance

96)

Strategic Managerial Roles

These activities are related to strategy formulation, innovation activities, making critical information available, setting long-term objectives, articulating an organizational vision,

securing scarce resources, and enhancing the image of the corporation

Operations-Related Managerial Roles

Operational roles center on strategy implementation, fair and efficient division of labor, effective control systems, reward systems, providing feedback, and anticipation of problems In the Gulf region, there are two major obstacles to senior managers’ involvements in such activities a heavy reliance on expatriates to perform tasks and an unwillingness to involve themselves in details

Leadership Roles

These roles involve motivating and inspiring others to action, providing critical

information and guidance, clarifying cultural norms and values, fostering cooperative environments, and resolving conflicts, among others

• Use the interim period wisely The period between the announcement of the appointment and the actual

‘changing of the guard’ (the assumption of responsibility) should be considered a honeymoon period for the new CEO During this period, the new CEO should become familiar with who’s who within the

organization, its history, and its strategic intent is essential and should be treated as an opportunity for building social and political capital

• Stay confident but remember how much there is to learn Whether the new CEO is from within or from outside the organization, the role of CEO is different from other operating roles This is because only the CEO can link external consistencies with internal organization The new CEO has to learn independently while keeping spirit and confidence up, even in times of adversity

98)

Culture shapes and influences strategy execution as it represents the shared values and beliefs across an organization The wider and more deeply held these values and beliefs within an organization, the strongerthe corporate culture Business organizations such as Dallah Albaraka and Zain, that have sustained growth and achieved remarkable market positions, have a strong organizational culture For example, Dallah Albaraka communicates elements of its culture to all stakeholders in its brochures, website, and other activities This articulation of corporate values such as society, customers, partners, and employees enhances loyalty among employees and creates a positive image in the marketplace

A company’s deeply held values and beliefs provide employees with both a sense of identity with the company, and an understanding of what is acceptable or unacceptable behavior Thus, employees who may think of violating cultural standards will experience tremendous pressure from other employees and managers to observe those standards Senior managers’ own behavior and general conduct are also crucial in setting a standard for other employees, and for expressing to stakeholders the values and culture

of the company Over time, employees’ patterns of behavior become part of the company culture and reinforce their commitment to the company, which also helps to ensure strategies are executed effectively.99)

Students should choose from the following

1 Reiterating the roots of the organization, how it was started and evolved, and the role of the founder

2 Emphasize ethical standards

3 Acknowledge the contribution of others to the progress and achievement of the firm

4 Highlight important norms and themes

5 Communicate and promote company legends

6 Make sure that there is no place within the company for those who break cultural standards

7 Reorient members of the organization to guiding values and top priorities, and introduce new

employees to themes, stories, and norms

8 Senior managers must reinforce important values and norms through their actions and

pronouncements within and outside the organization

100)

An unhealthy culture exhibits several characteristics Chief among them are

• Politicized culture - Political infighting and conflicting priorities among senior members of the

organization create a climate that is not conducive to smooth operations, and end up consuming the energy and resources of the company on issues which have nothing to do with corporate goals For

example, in 2007, Forsyth Partners of Dubai was forced to close down due to “irreconcilable differences of opinion and infighting” among its board members

• Change-resistance - Resistance to change can be damaging to company progress and growth; it not onlyreinforces avoiding taking risk but also makes it harder to engage in creative opportunities, or compete in open and dynamic markets For example, in the GCC area, it was reported that contractors are resistant to new ideas and tend to look at the bottom line rather than the design

• Insular or inward focus - The dominant aspect of the inwardly-focused culture is that managers and senior personnel discount developments taking place in the market, and are skeptical about the worth of suggestions and input from their customers, suppliers, or competitors This can mean the company will have difficulty coping with current developments and will miss benefiting from important market trends

• Unethical and greed-driven - When senior managers encourage, tolerate, or overlook the violation of ethical standards and behavior, corruption and scandals thrive For example, the Algerian government had

to intervene in enforcing rules and regulations as a result of corruption scandals hitting Sonatrach, a state oil and gas company The scandal halted the development of several petrochemicals and refining projects due to the involvement of senior executives, as some of the contracts were awarded through an over-the-counter (OTC) or off-exchange trading basis, without tendering

101)

A strategy—culture fit helps a company’s strategy execution in three ways

1 Culture that encourages actions, behaviors, and work practices supportive of effective

strategy execution provides personnel with clear guidance on how to get things

done and its members consciously exercise pressure on each other to conform to

acceptable behaviors and norms

2 Deeply rooted culture directs organizational energy towards effective strategy

implementation

3 A culture grounded in many of the needed strategy-executing behaviors helps

employees feel better about their jobs, the company they work for, and the merits of

what the company is attempting to achieve

102)

Engage in a major overhaul of existing staff and start restructuring (change culture)

For example, where the required change is vast and represents a departure from the previous

organizational culture, a new owner may find it useful to change the management staff and recruit new managers who share the new owner's beliefs This too may require reorienting employees to new norms of competition, performance standards, and productivity In a situation where there is no change in ownershipbut senior managers are planning to change direction, engage in innovation, enter new markets, and acquire new technologies, senior executives need to examine what has to be done They may have to co-opt some managers, restructure the organization, recruit new managers, or introduce changes gradually Ifall these attempts are not producing desired results, a major overhaul may be the only choice

Avoid clashing with the existing culture

If a company requires a few strategic changes that have low compatibility with the existing culture, then senior executives must consider options which do not clash directly with the culture or which minimize resentment of change for example, creating a separate firm or division; using teams, taskforces, or projectcoordinators; subcontracting, bringing in outsiders, or selling the company

Link up to a reward system and underscore the importance of identifying with the organization