WGU C483 Principles of Management - (Pre-Assessment)

WGU C483 Principles of Management - (Pre-Assessment) Industry and market analysis, competitor analysis, and social analysis are examples of which step in the strategic planning process? Analysis of external opportunities and threats Skilled management, positive cash flow, and well-known brands are examples of which component of the SWOT analysis? Strengths What denotes skills or expertise in an activity that constitutes the roots of competitiveness in an organization? Core competencies According to Michael Porter's competitive environment model, how can suppliers influence strategic planning? Suppliers can reduce manufacturing time and increase product quality. A company offers unique products in its industry to create a competitive advantage. Which type of strategy is the company using? Differentiation Happy Inc. is a leading provider of family entertainment and BCD is a broadcasting company with news, cable, and entertainment networks. Happy Inc. recently acquired BCD in hopes of boosting its primary business of family entertainment. Which type of corporate strategy is represented by Happy Inc.'s purchase of their distribution network? Vertical integration A local business has provided services to its customers for 40 years. The business's mission is "To give our customers the best service in town." The owner of the business has had a long-standing dream to franchise the business and become the best provider of its service in the United States. What describes the owner's dream? Strategic vision What is the first step of organizational strategic planning? Developing a strategic mission A value chain is the sequence of activities that begins with raw materials. What result does a value chain end with? Delivery of products or services What happens when an effective value chain is created? Profit margins are increased. The introduction of statistical tools to analyze the causes of product defects is associated with whic WGU C483 Principles of Management - (Pre-Assessment) Industry and market analysis, competitor analysis, and social analysis are examples of which step in the strategic planning process? Analysis of external opportunities and threats Skilled management, positive cash flow, and well-known brands are examples of which component of the SWOT analysis? Strengths What denotes skills or expertise in an activity that constitutes the roots of competitiveness in an organization? Core competencies According to Michael Porter's competitive environment model, how can suppliers influence strategic planning? Suppliers can reduce manufacturing time and increase product quality. A company offers unique products in its industry to create a competitive advantage. Which type of strategy is the company using? Differentiation Happy Inc. is a leading provider of family entertainment and BCD is a broadcasting company with news, cable, and entertainment networks. Happy Inc. recently acquired BCD in hopes of boosting its primary business of family entertainment. Which type of corporate strategy is represented by Happy Inc.'s purchase of their distribution network? Vertical integration A local business has provided services to its customers for 40 years. The business's mission is "To give our customers the best service in town." The owner of the business has had a long-standing dream to franchise the business and become the best provider of its service in the United States. What describes the owner's dream? Strategic vision What is the first step of organizational strategic planning? Developing a strategic mission A value chain is the sequence of activities that begins with raw materials. What result does a value chain end with? Delivery of products or services What happens when an effective value chain is created? Profit margins are increased. The introduction of statistical tools to analyze the causes of product defects is associated with which quality improvement approach? Six Sigma What is the principal idea of reengineering? To revolutionize key organizational systems and processes How many defects per million are there at Six Sigma, assuming a product or process is defect-free 99.99966% of the time? Less than 3.4 What is the last step to Deming's 14 points of quality management? To take action to accomplish the transformation Process checklists and project audits are components of which management process? Quality Assurance What is the main objective of an internal quality audit? To measure effectiveness of an organization's quality management system A company is trying to systematically improve processes by eliminating nonconformity of their products to product specifications. The company believes their continuous effort to reduce variation in their process outputs is key to their business success. Which quality process is the company utilizing? Six Sigma Which concept entails all aspects of interaction a company has with its customers in both sales and service-related environments? Customer relationship management Dr. Ohmae indicates that customer, corporation, and competitors should be integrated in a strategic triangle. What does Dr. Ohmae indicate that an organization can obtain by doing this? Sustained competitive advantage What designates those who take hands-on responsibility for creating innovation such as new ideas, products, or methods within an organization? Intrapreneur Why is innovation an important element of entrepreneurship? Creates unique and different products or services Most successful entrepreneurs exhibit certain characteristics. Some entrepreneurs are open-minded, able to learn quickly, and skilled at conceptualizing. Which entrepreneurial personality trait is this? Creativity, self-reliance, and ability to adapt Which personality characteristics are believed to contribute to an entrepreneur's success? Determination Why would an entrepreneurial business choose to use its own resources versus seeking outside resources in financing a business venture? To Maintain Control Which activity should management use to encourage intrapreneurship within an organization? Encourage employees to work on informal job assignments What can managers do to encourage useful conflict during a meeting to lessen inhibition about disagreeing and make the conflict less personal? Provide a devils advocate Why is consideration of intentions important in conflict situations? People respond based on their interpretation of others' intentions. What describes dimensions of conflict-handling intentions? Cooperativeness and assertiveness Two team members disagreed over how to proceed with a new project they were working on together and both felt their positions were valid. Their manager brought them together to discover ways to resolve their disagreement moving forward. Which conflict-resolution technique did the manager use to help these team members? Compromising A corporation is experiencing dysfunction in their work teams. The team leader plans to realign work groups based on employees' work locations, and also to alter rules and regulations in the groups and make additional changes to "shake things up a bit." Which conflict-stimulation technique is the team leader applying? Restructuring the organization Which type of control system is being implemented when management uses prices, profit centers, and exchange relationships as a control? Market Control What is the fourth step of the control process which ensures that operations are adjusted to achieve planned results? Taking corrective action A corporation recently disbanded its flex time schedule for employees and now requires that all employees work 9:00 a.m. to 6:00 p.m. Monday through Friday. The employees banded together in opposition of the change. What were the employees of the corporation experiencing? Peer pressure The manager of the human resources department at a corporation agreed to authorize one-hour lunch breaks for all employees of the organization as long as the production manager agreed to shorten the morning and afternoon breaks of all employees to 15 minutes. Which approach were the managers using to enlist cooperation for the change? Negotiation and reward A corporation offers concrete incentives such as higher wages for cooperation with change. Which strategy is the corporation using to overcome resistance to change? Negotiation and reward During a final job interview, the hiring manager asks candidates about age and national origin. Some of the rejected candidates suspect they did not get the job because of their age. Which law covers this type of discrimination? Equal Employment Opportunity (EEO) After a major budget increase, a company finds itself in a position to hire 50 new employees. How can strategic human resource planning benefit the company in this situation? By organizing staffing needs and looking for people with the right skills In the five dimensions of Hackman and Oldham's model of job design, what does autonomy describe? Independence and discretion in making decisions A store that has had a high rate of employee theft wants to use an employee selection technique to hire new employees who are less likely to steal from them. Which type of employee selection instrument is most appropriate in this situation? Integrity test When selecting an organizational structure, which key elements should be considered? Differentiation and integration What is the best way to succeed in a matrix organizational structure? Collaboration What is a reason to create a boundaryless organizational structure? To make information available as needed Four small, independent organizations, each with its own type of expertise, plan to work together for six months for the sole purpose of developing a new product that will help each of them improve their ability to compete with larger organizations. Which type of organization does their relationship characterize? Virtual organization Which formal structure allows job holders to have broad responsibilities, accommodates decentralized and informal decision making, and values expertise? Organic One manager is responsible for all functional areas allowing the company to sell Product A, and another manager is responsible for all functional areas that allow the company to sell Product B. Which type of design does this corporation use? Divisional Which entities protect the rights of employees and potential employees from discrimination in the workplace? Equal Employment Opportunity and Affirmative Action During an international executive meeting, an executive used a word that did not translate into English. What type of cross-cultural communication barrier is this? Barrier caused by word association A younger employee becomes irritated by the sound of an older employee's voice and finds it difficult to work on projects with the older employee. This has caused conflict in the department. What is the source of conflict between the older and younger employees? Personal variables In which situation does religious preference inappropriately affect decision making? A publicly-held company has a policy limiting financial donations to one religious group. What is a common component of effective diversity training programs? Building awareness Describe the concepts of strategic vision (intent), mission, and goals STRATEGIC VISION (INTENT): The long-term direction and strategic intent of a company -most effective inspire organization members, point to future --Enhance citizen engagement in city issues. --Sustain the natural systems and beauty of the community. --Sustain a safe community with a coherent, comprehensive, cohesive approach to safety. --Maintain economic vitality. MISSION: An organization's basic purpose and scope of operations -can be broad but often less for smaller business GOALS: -A target or end that management desires to reach -Strategic goals evolve from the mission and vision of the organization. Three level of planning hierarchy -strategic, tactical operational --correspond with the three major management levels -all levels are important and must be aligned with the other or the overall implementation of the plan will not be successful. What acronym is used to remember the qualities for goals? What does each letter stand for? SMART Specific - When goals are precise, describing particular behaviors and outcomes, employees can more easily determine whether they are working toward the goals. Measurable¬ ¬¬-- As much as possible, each goal should quantify the desired results so there is no doubt whether it has been achieved. Attainable (but challenging) — Employees need to recognize that they can attain the goals they are responsible for, or else they are likely to become discouraged. However, they should also feel challenged to work hard and be creative. Relevant - Each goal should contribute to the organization's overall mission while being consistent with its values, including the ethical standards. Goals are more likely to be relevant to the organizations overall objectives if they are consistent within and among work groups. Time-bound - Effective goals specify a target date for completion. Besides knowing what to do, employees should know when they need to deliver results. What is benchmarking? To assess and improve performance, some companies use benchmarking, the process of assessing how well one company's basic functions and skills compare with those of another company or set of companies. The goal of benchmarking is to understand the "best practices" of other firms thoroughly and to undertake actions to achieve both better performance and lower costs. What does SWOT stand for? strengths, weaknesses, opportunities, threats Explain what a Core Competency/Capability means for an organization A core capability (also referred to as "competence") is something a company does especially well relative to its competitors. A core competency is a company's unique characteristic or capability that provides a competitive advantage in the marketplace, delivers value to customers, and contributes to continued organizational growth. Core competencies typically comprise fundamental knowledge, ability or expertise in a specific subject area or skill set, allow a business to reach a wide range of markets, and cannot be easily replicated by competitors. Strategy formulation comes immediately after an analysis of the organizations internal strengths and weaknesses. An analysis of internal strengths and weaknesses is step ________ in the strategic management process. THREE. ___________ are inputs to production that can be accumulated over time to enhance the performance of the firm. Resources A company that reinvests its profits back into the company's current activities to strengthen its competitive position is implementing a(n) __________ strategy. Vertical integration. Vertical integration involves expanding the companies domain to include supplies and distributors. A _______ strategy involves expanding the domain of the organization to include supply channels and distributors. Vertical integration. Vertical integration involves expanding the companies domain to include supplies and distributors. If an automobile manufacturer expands its business from building cars into producing a line of motorcycles, it is using which strategy? concentric diversification Which of the following is the primary reason why a company might pursue a conglomerate diversification strategy? to minimize risks due to market fluctuations in one industry Effective goals specify a ____________ so that employees know when to deliver the results. Target date A contingency plan is a type of plan utilized when Initial plans do not work well or an unexpected event occurs. The final step of the planning process is Step 6: Monitor and Control The basic planning has six steps. What are they? Step 1: Situational Analysis Step 2: Alternative Goals and Plans Step 3: Goal and Plan Evaluation Step 4: Goal and Plan Selection Step 5 Implementation Step 6: Monitor and Control Companies concentrate on a single industry to __________. gain entry into an industry A strategy of ___________ involves moving into new businesses that are related to the company's original core business. concentric diversification In competition, a substitute is best described as a(n): alternative to a product. Which of the following is a component of Porter's competitive environment? Suppliers Which of the following is a demographic factor of an organization's macroenvironment? Employees' age Complexity and dynamism in the environment result in: environmental uncertainty. Why is understanding an organization's environment important? Without this understanding, organizations tend to miss opportunities or make poor decisions. Raw materials, services, equipment, capital, and information are _____ for an organization. inputs According to Michael Porter's competitive environment model, high switching costs increases _____. the power of suppliers Identifying the best-in-class performance by a company in a given area, such as customer service, and then comparing the process to one's own is called _____. benchmarking Which of the following is a controllable environmental factor that can affect an organization? Cost leadership strategy Which of the following is a characteristic of a strong culture? Everyone believing in the firm's practices Differences in the way people dress and act, their interactions with each other and with customers, and what qualities are expected and appreciated by their managers and company are examples of the _____. organization culture What is a vertical strategy? A vertical integration strategy involves expanding the domain of the organization into supply channels or to distributors. Vertical integration generally is used to eliminate uncertainties and reduce costs associated with suppliers or distributors. A concentration strategy is focuses on a single business competing in a single industry. concentric diversification A strategy of concentric diversification involves moving into new businesses that are related to the company's original core business. conglomerate diversification In contrast to concentric diversification, conglomerate diversification is a corporate strategy that involves expansion into unrelated businesses. Three Levels of Planning Hierarchy: OPERATIONAL (Managerial Level /Detail/Time Horizon) FRONTLINE workers, delivering products, delivery service, everyday workers, making the products, working with the customers directly, HIGH DETAIL SHORT 1 YEAR Three Levels of Planning Hierarchy: TACTICAL (Managerial Level /Detail/Time Horizon) MIDDLE MEDIUM DETAIL MEDIUM (1-2 years) Three Levels of Planning Hierarchy: STRATEGIC (Managerial Level /Detail/Time Horizon) TOP: CEOS, VICE PRESIDENTS, MANAGERIAL LEVEL, HIGH LEVEL MANAGEMENT LOW LEVEL OF DETAIL: "Big picture" LONG (3-7 years) Changing a task to make it inherently more rewarding, motivating, and satisfying is referred to as: job enrichment. An empowered workforce: improves quality and service. A difference between Maslow's need hierarchy and Alderfer's ERG theory is that: Maslow's needs theory has general applicability, whereas Alderfer's ERG theory aims at understanding people's needs at work. According to Hackman and Oldham's model of job design, the degree to which a job provides independence and discretion in making decisions refers to: autonomy. According to Herzberg, the key to true job satisfaction lies in the: motivators. Achievement, affiliation, personalized power, and socialized power are all components of: McClelland's needs theory. Which of the following psychological states does the Hackman and Oldham model link with the core job dimensions of skill variety, task identity, and task significance? Experienced meaningfulness of the work According to Herzberg's theory, the two factors that affect people working on their jobs are categorized into: hygiene factors and motivators. The rewards given to a person by the boss, the company, or some other person are known as _____ rewards. extrinsic Alderfer's ERG theory postulates three sets of needs: existence, relatedness, and growth. According to the Hackman and Oldham model, the best way to design an enriched job in which employees experience responsibility for the outcome of the work is to provide: autonomy. According to Maslow's need hierarchy, ____. people are motivated to satisfy the lower needs before the higher needs TQM (Total Quality Management) Total quality management (TQM) is a way of managing in which everyone is committed to continuous improvement of his or her part of the operation. In business, success depends on having high-quality products. The importance of TQM TQM is a comprehensive approach to improving product quality and thereby customer satisfaction. It is characterized by a strong orientation toward customers (external and internal) and has become an umbrella theme for -organizing work. TQM reorients managers toward involving people across departments in improving all aspects of the business. Continuous improvement requires integrative mechanisms that facilitate group problem solving, information sharing, and cooperation across business functions. As a consequence, the walls that separate stages and functions of work tend to come down, and the organization operates more in a team-oriented manner. Identify and understand the importance of statistical analysis in Total Quality Management (TQM) models/methodologies It helps an organization to be simultaneously responsive and agile. It can analyze the causes of product defects. Understand and describe key approaches to bureaucratic control The three approaches to bureaucratic control are feedforward, concurrent, and feedback. Feedforward control takes place before operations begin and includes policies, procedures, and rules designed to ensure that planned activities are carried out properly. Examples include inspection of raw materials and proper selection and training of employees. Concurrent control takes place while plans are being carried out. It includes directing, monitoring, and fine-tuning activities as they occur. Feedback control focuses on the use of information about results to correct deviations from the acceptable standard after they arise. Understand and briefly discuss the main ideas behind Six Sigma quality-control tools -analyzes the causes of product defects. -6 times the standard deviation or variation in a process. The higher the sigma level, the lower the amount of deviation.-can be applied to anything that can piss off a customer: late deliveries, wrong shipment, poor customer service, defective product. -at 6 sigma defect free 99.99966% of the time, fewer than 3.4 defects per million. -if using this approach, requires managers to restructure relationships with suppliers, and internal processes. Explain the need for organizational controls and the types of control mechanisms that exist Bureaucratic control is the use of rules, regulations, and formal authority to guide performance. It includes such items as budgets, statistical reports, and performance appraisals to regulate behavior and results. Market control involves the use of pricing mechanisms to regulate activities in organizations as though they were economic transactions. Business units may be treated as profit centers and trade resources (services or goods) with one another via such mechanisms. Managers who run these units may be evaluated on the basis of profit and loss. Clan control, (also known as cultural control), unlike the first two types, does not assume that the interests of the organization and individuals naturally diverge. Instead, clan control is based on the idea that employees may share the values, expectations, and goals of the organization and act in accordance with them. Identify the steps in the bureaucratic control process sequence (STEP 1) 1.Setting performance standards. Every organization has goals: profitability, innovation, satisfaction of customers and employees, and so on. A standard is the level of expected performance for a given goal. Standards are targets that establish desired performance levels, motivate performance, and serve as benchmarks against which to assess actual performance. Standards can be set for any activity—financial activities, operating activities, legal compliance, charitable contributions, and so on. Identify the steps in the bureaucratic control process sequence (STEP 2) Step 2: Measuring Performance The second step in the control process is to measure performance levels. For example, managers can count units produced, days absent, papers filed, samples distributed, and dollars earned. Performance data commonly are obtained from three sources: written reports, oral reports, and personal observations. Identify the steps in the bureaucratic control process sequence (STEP 3) Step 3: Comparing Performance with the Standard The third step in the control process is comparing performance with the standard. In this process, the manager evaluates the performance. The managerial principle of exception states that control is enhanced by concentrating on the exceptions to, or significant deviations from, the expected result or standard. In other words, in comparing performance with the standard, managers need to direct their attention to the exception—for example, a handful of defective components produced on an assembly line or the feedback from customers who are upset or delighted with a service. Identify the steps in the bureaucratic control process sequence (STEP 4) Step 4: Taking Action to Correct Problems and Reinforce Successes The last step in the control process is to take appropriate action when there are significant deviations. This step ensures that operations are adjusted to achieve the planned results—or to continue exceeding the plan if the manager determines that is possible. In cases in which significant variances are discovered, the manager usually takes immediate and vigorous action. When corrective action is needed to solve a systemic problem, such as major delays in work flow, often a team approach is most effective. A corrective action is more likely to have greater acceptance in the organization if it is based on a common effort and takes into account multiple points of view. Identify issues that could arise between older and younger workers in an organization. To prevent an exodus of talent, employers need strategies to help retain and attract skilled and knowledgeable older workers. Phased retirement plans that allow older employees to work fewer hours per week is one such strategy. Almost one-third of retiring faculty members at 16 University of North Carolina campuses take advantage of phased retirement, and the concept is catching on in many other public and private organizations. Other strategies include making workplace adaptations to help older workers cope with the physical problems they experience as they age, such as poorer vision, hearing, and mobility. This trend is a significant change from the practice in recent decades, when older workers were given incentives to leave to allow companies to reduce overhead and perhaps hire less expensive replacements. These companies save on turnover and training costs and capitalize on the experience of their older employees. At the same time, companies need to compete hard for the smaller pool of young talent, being prepared for applicants who know the job market and are ready to demand the working conditions they value and the praise they were raised to expect. Bruce Tulgan, founder of Rainmaker Thinking, which specializes in researching generational differences, says Generation Y—today's young workers—tend to be "high-maintenance" but also "high-performing," having learned to process the flood of information that pours in over the Internet. Many of these workers were raised by highly involved parents who filled their lives with quality experiences, so employers are scrambling to design work arrangements that are stimulating, involve teamwork, keep work hours reasonable to allow for outside activities, and provide for plenty of positive feedback. Identify and apply the Americans with Disabilities Act (ADA) legislature in the workplace. The ADA defines a disability as a physical or mental impairment that substantially limits one or more major life activities. In many cases, state governments will pay for special equipment or other accommodations that workers need. Tax credits are also available to companies that hire disabled workers. 1. Identify and apply common components in diversity training programs. Diversity training programs attempt to identify and reduce hidden biases and develop the skills needed to manage a diversified workforce effectively. Becoming multicultural and making the most of its diverse workforce should include (1) securing top management's leadership and commitment, (2) assessing the organization's progress toward goals, (3) attracting employees, (4) training employees in diversity, and (5) retaining employees. A recent study examining the performance of hundreds of companies over a 30-year period found that organizations that assigned responsibility for achieving diversity targets to certain individuals or groups made the most progress in increasing the share of female and black workers on their payrolls. Understand and be able to apply the Entrepreneurial Strategy Matrix to assess an entrepreneurial opportunity The upper-left quadrant, high innovation/low risk, depicts ventures of truly novel ideas with little risk. As examples, the inventors of Lego building blocks and Velcro fasteners could build their products by hand, at little expense. A pioneering product idea from Procter & Gamble might fit here if there are no current competitors and because, for a company of that size, the financial risks of new product investments can seem relatively small.In the upper-right quadrant, high innovation/high risk, novel product ideas are accompanied by high risk because the financial investments are high and the competition is great. A new drug or a new automobile would likely fall into this category.Most small business ventures are in the low innovation/high risk cell (lower right). They are fairly conventional entries in well-established fields. New restaurants, retail shops, and commercial outfits involve high investment for the small business entrepreneur and face direct competition from other similar businesses. Finally, the low innovation/low risk category includes ventures that require minimal investment and/or face minimal competition for strong market demand. Examples are some service businesses having low start-up costs and those involving entry into small towns if there is no competitor and demand is adequate.How is this matrix useful? It helps entrepreneurs think about their ventures and decide whether they suit their particular objectives. It also helps identify effective and ineffective strategies. You might find one cell more appealing than others. The lower-left cell is likely to have relatively low payoffs but to provide more security. The higher risk/return trade-offs are in other cells, especially the upper right. So you might place your new-venture idea in the appropriate cell and determine whether that cell is the one in which you would prefer to operate. If it is, the venture is one that perhaps should be pursued, pending fuller analysis. If it is not, you can reject the idea or take steps to move it toward a different cell. Identify the common characteristics that entrepreneurs possess 1.Commitment and determination: Successful entrepreneurs are decisive, tenacious, disciplined, willing to sacrifice, and able to immerse themselves in their enterprises. Entrepreneurial passion can play an important role in all of these things. 2.Leadership: They are self-starters, team builders, superior learners, and teachers. Communicating a vision for the future of the company—an essential component of leadership 3.Opportunity obsession: They have an intimate knowledge of customers' needs, are market driven, and are obsessed with value creation and enhancement. 4.Tolerance of risk, ambiguity, and uncertainty: They are calculated risk takers and risk managers, tolerant of stress, and able to resolve problems. 5.Creativity, self-reliance, and ability to adapt: They are open-minded, restless with the status quo, able to learn quickly, highly adaptable, creative, skilled at conceptualizing, and attentive to details. 6.Motivation to excel: They have a clear results orientation, set high but realistic goals, have a strong drive to achieve, know their own weaknesses and strengths, and focus on what can be done rather than on the reasons things can't be done. Describe common reasons behind entrepreneurial success and failure Risk, the economic environment, various management-related hazards, and initial public stock offerings (IPOs). Going Public Sometimes companies reach a point at which the owners want to go public. Initial public stock offerings (IPOs) offer a way to raise capital through federally registered and underwritten sales of shares in the company.82 You need lawyers and accountants who know current regulations. The reasons for going public include raising more capital, reducing debt or improving the balance sheet and enhancing net worth, pursuing otherwise unaffordable opportunities, and improving credibility with customers and other stakeholders—you're in the big leagues now. Disadvantages include the expense, time, and effort involved; the tendency to become more interested in the stock price and capital gains than in running the company properly; and the creation of a long-term relationship with an investment banking firm that won't necessarily always be a good one. Identify common ways in which entrepreneurs finance their ventures The company's founders may start the business with their own money, or they may seek financing in the form of debt (taking out a loan from family, friends, or a bank) or equity (taking money in exchange for an ownership share in the company). Typically, start-ups get most of their money from the owners, their families, and loans and credit lines from banks. Other kinds of investors, such as venture capital firms, generate a lot of publicity for splashy deals but provide a very small share of start-up funds. Describe what "Intrapreneurship" is and identify and apply the concepts of Bootlegging and Skunkworks Building Intrapreneurship. Building an entrepreneurial culture is the heart of the corporate strategy at Acordia, a successful insurance company that recently changed its name to Wells Fargo TPA.106 Its success in fostering a culture in which intrapreneurs flourish came from making an intentional decision to foster entrepreneurial thinking and behavior, creating new-venture teams, and changing the compensation system so that it encourages, supports, and rewards creative and innovative behaviors. In other words, building intrapreneurship derives from careful and deliberate strategy.Two common approaches used to stimulate intrapreneurial activity are skunkworks and bootlegging. Skunkworks are project teams designated to produce a new product. A team is formed with a specific goal within a specified time frame. A respected person is chosen to be manager of the skunkworks. In this approach to corporate innovation, risk takers are not punished for taking risks and failing—their former jobs are held for them. The risk takers also have the opportunity to earn large rewards. Skunkworks- A project team designated to produce a new, innovative product.Bootlegging refers to informal efforts—as opposed to official job assignments—in which employees work to create new products and processes of their own choosing and initiative. Informal can mean secretive, such as when a bootlegger believes the company or the boss will frown on those activities. But companies should tolerate some bootlegging, and some even encourage it. To a limited extent, they allow people freedom to pursue pet projects without asking what they are or monitoring progress, figuring bootlegging will lead to some lost time but also to learning and to some profitable innovations.Bootlegging- Informal work on projects, other than those officially assigned, of employees' own choosing and initiative.Merck, desiring entrepreneurial thinking and behavior in research and development, explicitly rejects budgets for planning and control. New-product teams don't get a budget. They must persuade people to join the team and commit their resources. This creates a survival-of-the-fittest process, mirroring the competition in the real world.107 At Merck, as at Wells Fargo TPA, intrapreneurship derives from deliberate strategic thinking and execution. Discuss how a larger organization can promote and maintain the spirit of entrepreneurship and innovation