In Adaptive Corporate Cultures

question 73

Multiple Choice

In adaptive corporate cultures:

• A) the prevailing view is that the best way to look out for the interests of employees is to change core values and cultural norms in whatever ways are needed to fit the changing requirements of an evolving strategy.
• B) company personnel are amenable to changing policies and operating practices as long as the core elements of the company's strategic vision and strategy remain intact.
• C) members are willing to embrace a proactive approach to trying new ideas,altering operating practices,and changing pieces of the strategy provided it doesn't imperil their job security,entail cuts in compensation,or require different work practices.
• D)There's a spirit of doing what's necessary to ensure long-term organizational success provided that core values and business principles are not compromised and provided top management undertakes the changes in a manner that exhibits genuine concern for the legitimate interests of stakeholders.
• E) there is little need for policies and procedures because group members willingly accept experimentation and innovation.

---

Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, showing the proportion of fixed to variable costs.

Fixed Costs

Overheads, such as rent, insurance fees, and payroll, that stay the same, independent of the amount of goods produced or sold.

Sensitivity Analysis

An analysis method to evaluate how changes in the values of an independent variable influence a dependent variable, based on a set of given assumptions.

NPV

Stands for Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment or project.