When a Company's Culture Is Out of Sync with What

question 79

Multiple Choice

When a company's culture is out of sync with what is needed for strategic success and good strategy execution

• A)the strategy has to be changed as rapidly as possible to regain harmony with cultural norms.
• B)company personnel need to cling to familiar practices, be wary of change, and blame top management for any shortfalls in performance.
• C)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.
• D)any unhealthy or dysfunctional cultural traits must be changed as fast as possible and management needs to be aggressively striving to ingrain new behaviors and work practices that will enable first-rate strategy execution.
• E)management must sanction any company personnel who refuse 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.

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Definitions:

Net Realizable Value

The estimated selling price in the ordinary course of business, minus any costs related to the sale or completion of goods.

Specific Write-off

The action of recognizing that a specific asset, often an account receivable, has become uncollectible and removing its value from the books.

Allowance for Doubtful Accounts

A contra-asset account that reduces the total amount of accounts receivable to reflect the amount that is expected to be uncollectible.

Bad Debts Expense

An expense account reflecting amounts that are not expected to be collected due to customer defaults.