MBA Exam 3 Learning Objectives
Chapter 10
Define corporate governance and explain why AND how it is used to monitor and control top managers’ strategic decisions.
Explain what is meant by the separation of ownership and managerial control.
What is the significance of the separation of ownership and managerial control?
Define an agency relationship and managerial opportunism and describe their strategic implications.
Explain product diversification and a firm’s free cash flows as potential agency problems.
Define agency costs.
What are governance mechanisms and what are they used for?
Identify and describe 3 internal governance mechanisms.
Explain how these 3 internal governance mechanisms are used to monitor and control managerial decisions.
Define ownership concentration, large-block shareholders, institutional owners, board of directors, and executive compensation.
Identify and describe 3 types of directors/board members.
Describe how the market for corporate control acts as a governance mechanism.
What are managerial defense tactics and what are they used for?
Chapter 11
Define organizational structure and controls.
Describe the relationship between strategy and structure
Define specialization, centralization and formalization.
Explain Figure 11.1.
What is a simple structure and when should it be used?
What is a functional structure and when should it be used?
Discuss the functional structures used to implement business-level strategies.
What is a multidivisional structure and when should it be used?
Explain the use of 3 versions of the M-form structure to implement different diversification strategies.
Identify and describe the organizational structures used to implement 3 international strategies.
Describe the match between cooperative strategies and network structures.
Define organizational controls.
What are strategic, financial, and behavioral controls and what are they used for?
Chapter 12
What is strategic leadership and why is it important?
Who are strategic leaders and what do they do?
What is managerial discretion and why is it important?
Describe three factors that affect managerial discretion.
What is a top management team and what do they do?
Why should TMT fit strategy?
What is heterogeneity and why is it important?
Briefly explain the relationships between TMT and (1) firm performance, (2) strategic change, and (3) power.
What is managerial succession and why is it important?
Identify and explain two types of managerial labor markets.
Explain Figure 12.3.
Describe the relationship between succession, TMT composition, and strategy.
Identify and explain in some detail 5 key strategic leadership actions identified in Figure 12.4 and what is involved in each.
What are policies and procedures and why should they match strategy?
Describe what is meant by and then explain the importance of matching reward systems to strategy?
Describe the McKinsey 7-S Framework. How can it be used to help implement strategy?
Chapter 13
Define and describe strategic entrepreneurship and corporate entrepreneurship.
Define and describe entrepreneurship and explain its purpose.
Identify and describe 3 types of innovation activities.
Define and describe entrepreneurs and entrepreneurial mind set.
Identify and describe 3 ways that firms can innovate.
Identify and describe 2 ways that firms innovate internally.
Identify and describe 2 types of internal innovations.
What are process improvements and how are they different from product improvements?
Describe 6 common process improvement tools and explain how they can assist in implementing strategy.