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What role do stakeholders play in relation to environmental spheres? A) They are independent of the environment B) They represent the environmental sphere C) They only focus on internal company matters D) They have no impact on company resources E) They are solely responsible for financial outcomes
B) They represent the environmental sphere Explanation: Stakeholders are embedded in their environmental spheres and represent various aspects of it, such as the natural, economic, and societal environments, which are crucial for the organization's resource access.
What is one of the most important tasks of management according to the SGMM? A) To increase product prices B) To ensure cohesion among stakeholder groups C) To minimize employee training D) To focus solely on profit maximization E) To eliminate all risks
B) To ensure cohesion among stakeholder groups Explanation: The SGMM emphasizes that a key responsibility of management is to maintain cohesion among various stakeholder groups, especially when conflicting goals arise.
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p.7
Stakeholder Engagement and Company Culture

What role do stakeholders play in relation to environmental spheres?
A) They are independent of the environment
B) They represent the environmental sphere
C) They only focus on internal company matters
D) They have no impact on company resources
E) They are solely responsible for financial outcomes

B) They represent the environmental sphere
Explanation: Stakeholders are embedded in their environmental spheres and represent various aspects of it, such as the natural, economic, and societal environments, which are crucial for the organization's resource access.

p.7
Stakeholder Engagement and Company Culture

What is one of the most important tasks of management according to the SGMM?
A) To increase product prices
B) To ensure cohesion among stakeholder groups
C) To minimize employee training
D) To focus solely on profit maximization
E) To eliminate all risks

B) To ensure cohesion among stakeholder groups
Explanation: The SGMM emphasizes that a key responsibility of management is to maintain cohesion among various stakeholder groups, especially when conflicting goals arise.

p.7
Environmental Spheres and Their Impact

How can proximity to a research institution benefit an organization?
A) It reduces employee training needs
B) It facilitates innovation and staff recruitment
C) It decreases operational costs
D) It eliminates competition
E) It guarantees higher profits

B) It facilitates innovation and staff recruitment
Explanation: Being close to a research institution provides organizations with opportunities for innovation and helps in attracting skilled staff, which can lead to strategic competitive advantages.

p.4
Stakeholder Engagement and Company Culture

What percentage of On's employees are based in Zurich?
A) 20%
B) 30%
C) 40%
D) 50%
E) 60%

C) 40%
Explanation: Approximately 40% of On's employees are based in Zurich, indicating a significant presence in its founding city.

p.4
Stakeholder Engagement and Company Culture

How many countries do On's employees come from?
A) 30
B) 40
C) 50
D) 60
E) 70

C) 50
Explanation: On employs approximately 1000 individuals from 50 different countries, showcasing its diverse workforce.

p.4
Founding and Mission of On

In which year was On founded?
A) 2005
B) 2010
C) 2015
D) 2020
E) 2000

B) 2010
Explanation: On was founded in 2010 in Zurich, marking the beginning of its journey in the sports brand industry.

p.4
Market Expansion Strategies

What is the primary market for On's sales?
A) Switzerland
B) Germany
C) USA
D) Japan
E) China

C) USA
Explanation: The largest market for On's sales is the USA, highlighting its international focus with only 5% of sales occurring in Switzerland.

p.14
Stakeholder Engagement and Company Culture

What are the key dimensions of integrative management according to recent findings in business studies?
A) Only financial performance
B) Environmental spheres, stakeholders, and interaction issues
C) Marketing strategies and sales techniques
D) Employee satisfaction and turnover rates
E) Technological advancements and innovations

B) Environmental spheres, stakeholders, and interaction issues
Explanation: The key dimensions of integrative management include environmental spheres, stakeholders, and interaction issues, which are essential for understanding the complexities of management in contemporary business studies.

p.7
Environmental Spheres and Their Impact

What do environmental spheres represent in the St. Gallen Management Model (SGMM)?
A) Spaces of opportunity for the company
B) Only financial resources
C) Internal company policies
D) Employee satisfaction levels
E) Government regulations

A) Spaces of opportunity for the company
Explanation: According to the SGMM, environmental spheres are considered spaces of opportunity from which both opportunities and threats arise, essential for organizations to access necessary resources for their products and services.

p.2
Market Expansion Strategies

What type of shoes has On developed in addition to running shoes?
A) Casual sandals
B) Specialized trail running shoes
C) Formal dress shoes
D) High-heeled shoes
E) Safety boots

B) Specialized trail running shoes
Explanation: On has developed specialized trail running shoes, indicating their focus on catering to specific athletic needs in addition to their general running shoe offerings.

p.4
Business Processes and Value Creation

What has been On's average revenue growth since its founding?
A) 50% per year
B) 70% per year
C) 85% per year
D) 90% per year
E) 100% per year

C) 85% per year
Explanation: On has experienced an impressive average revenue growth of 85% per year since its founding in 2010, making it one of the fastest-growing sports brands.

p.6
St. Gallen Management Model (SGMM)

What does the St. Gallen Management Model (SGMM) emphasize about organizations?
A) They operate independently of their environment
B) They are embedded in and define their own environment
C) They only focus on internal processes
D) They are solely influenced by economic factors
E) They do not interact with stakeholders

B) They are embedded in and define their own environment
Explanation: The SGMM highlights that organizations are both influenced by and can influence their surrounding environment, which includes various spheres such as societal, natural, technological, and economic.

p.2
Stakeholder Engagement and Company Culture

How does On maintain its company culture?
A) By having fixed offices
B) Through personal contacts and events
C) By using online communication only
D) By hiring only remote workers
E) Through strict corporate policies

B) Through personal contacts and events
Explanation: On maintains its sporty and creative culture by fostering personal contacts at sporting events and involving founders in employee meetings, which enhances engagement and connection among staff.

p.7
Stakeholder Engagement and Company Culture

Why is stakeholder participation crucial for a company's survival?
A) It reduces operational costs
B) It ensures compliance with laws
C) It helps in moderating conflicting goals
D) It increases employee turnover
E) It eliminates the need for marketing

C) It helps in moderating conflicting goals
Explanation: Stakeholder participation is vital as it allows management to ensure cohesion among different stakeholder groups and to navigate conflicting demands, especially in challenging situations like a crisis.

p.6
Environmental Spheres and Their Impact

Which of the following is NOT one of the environmental spheres mentioned in the SGMM?
A) Societal
B) Natural
C) Technological
D) Political
E) Economic

D) Political
Explanation: The environmental spheres identified in the SGMM include societal, natural, technological, and economic, but do not specifically mention political as a separate sphere.

p.12
St. Gallen Management Model (SGMM)

What are the three parts of the first-generation SGMM?
A) Company model, environmental model, and management model
B) Financial model, operational model, and strategic model
C) Marketing model, production model, and human resources model
D) Technological model, economic model, and social model
E) Stakeholder model, market model, and task model

A) Company model, environmental model, and management model
Explanation: The first-generation SGMM consists of three parts: the company model, the environmental model, and the management model, which together support management by representing the enterprise as both a productive and technical system.

p.8
Stakeholder Engagement and Company Culture

What are interaction issues in an organization?
A) Topics that are irrelevant to stakeholders
B) Topics negotiated with stakeholders representing interrelations with environmental spheres
C) Issues that only concern the management team
D) Financial issues only
E) Technical problems in production

B) Topics negotiated with stakeholders representing interrelations with environmental spheres
Explanation: Interaction issues refer to the topics that an organization negotiates with its stakeholders, reflecting the organization's relationships with various environmental spheres.

p.13
Evolution of the St. Gallen Management Model

Who developed the third-generation SGMM?
A) Schwaninger
B) Bleicher
C) Rüegg-Stürm
D) Dubs
E) Euler

C) Rüegg-Stürm
Explanation: Rüegg-Stürm developed the third-generation SGMM as part of a curriculum redesign at the University of St. Gallen, marking a significant evolution in management studies.

p.13
Evolution of the St. Gallen Management Model

What are the three system levels introduced in the second-generation SGMM?
A) Tactical, Operational, and Strategic
B) Normative, Strategic, and Operational
C) Financial, Normative, and Tactical
D) Operational, Tactical, and Normative
E) Strategic, Financial, and Corporate

B) Normative, Strategic, and Operational
Explanation: The second-generation SGMM introduced the system levels of normative, strategic, and operational dimensions, which are essential for understanding organizational structure and management.

p.5
St. Gallen Management Model (SGMM)

What must managers critically question according to the St. Gallen Management Model?
A) Their financial strategies
B) Their own managerial activities
C) The technology used in the organization
D) The organizational structure only
E) The market trends

B) Their own managerial activities
Explanation: Managers are encouraged to critically question their own managerial activities to adapt and optimize organizational value creation in a changing environment.

p.9
St. Gallen Management Model (SGMM)

How should an organization's structure be aligned according to the St. Gallen Management Model?
A) Based on employee preferences
B) According to financial performance
C) With strategic success factors
D) By geographical location
E) Based on historical practices

C) With strategic success factors
Explanation: The organization's structure must be aligned with the strategic success factors to define processes and design strategies that optimally support those processes.

p.5
St. Gallen Management Model (SGMM)

What does the St. Gallen Management Model emphasize in management?
A) Individual leadership styles
B) Integrative approach to management
C) Strict adherence to traditional methods
D) Focus on financial metrics only
E) Isolation of management from other disciplines

B) Integrative approach to management
Explanation: The St. Gallen Management Model promotes an integrative approach to management, highlighting the importance of considering various disciplines and stakeholder demands in organizational management.

p.11
Development Modes in Organizations

How did the first-generation SGMM conceptualize companies?
A) As isolated entities
B) As systems
C) As profit-driven organizations only
D) As traditional bureaucracies
E) As competitive units

B) As systems
Explanation: The first-generation SGMM was based on systems-oriented business studies, conceptualizing companies as systems, which allowed for a more holistic understanding of organizational dynamics.

p.3
Stakeholder Engagement and Company Culture

What is a key issue in On's interactions with production partners?
A) Cost reduction
B) Ongoing innovation
C) Market expansion
D) Employee training
E) Customer service

B) Ongoing innovation
Explanation: The case study highlights that ongoing innovation is a key issue in On's interactions with other actors, particularly production partners in Vietnam, emphasizing the importance of innovation in their business model.

p.3
Market Expansion Strategies

What is the primary focus of On's strategy?
A) Cost leadership
B) Innovative running shoes and related products
C) Diversification into unrelated markets
D) Reducing production costs
E) Expanding into the food industry

B) Innovative running shoes and related products
Explanation: On's strategy is centered around innovative running shoes and directly related products, which is crucial for their market positioning and growth.

p.1
Business Processes and Value Creation

What is the focus of On's product range despite its expansion into clothing?
A) Shoes
B) Accessories
C) Technology
D) Fashion
E) Sports equipment

A) Shoes
Explanation: Despite launching a clothing collection in 2016, On has maintained its primary focus on shoes, emphasizing their core product line.

p.6
Business Processes and Value Creation

How does an innovation in the technological sphere affect a company?
A) It has no impact on the company
B) It compels the company to change its production processes
C) It only affects the company's marketing strategies
D) It leads to a decrease in employee productivity
E) It eliminates the need for customer feedback

B) It compels the company to change its production processes
Explanation: Innovations in the technological sphere can compel companies to adapt their production methods to remain competitive, illustrating the dynamic interaction between organizations and their environments.

p.10
Stakeholder Engagement and Company Culture

What is a key task of management according to the SGMM?
A) Maximizing profits at all costs
B) Ensuring stakeholder cohesion
C) Reducing employee turnover
D) Increasing market share
E) Implementing strict control measures

B) Ensuring stakeholder cohesion
Explanation: One of the basic management tasks highlighted in the SGMM is ensuring stakeholder cohesion, which is essential for the sustainable functioning of an organization.

p.12
St. Gallen Management Model (SGMM)

Which classification criteria were used in the management model of the first-generation SGMM?
A) Management levels, management phases, and management functions
B) Financial goals, operational efficiency, and market share
C) Stakeholder engagement, resource allocation, and innovation
D) Corporate politics, market performance, and task structuring
E) Technological advancements, employee satisfaction, and customer loyalty

A) Management levels, management phases, and management functions
Explanation: The management model of the first-generation SGMM utilized classification criteria that included management levels, management phases, and management functions, providing a structured approach to corporate management.

p.8
Business Processes and Value Creation

What is the primary focus of management processes?
A) To create new products
B) To steer the company as a system and manage relationships with the environment
C) To handle customer complaints
D) To manage financial resources
E) To optimize production lines

B) To steer the company as a system and manage relationships with the environment
Explanation: Management processes are designed to guide the organization and its interactions with the external environment, requiring effective communication and decision-making skills.

p.8
Development Modes in Organizations

What does optimization in organizational change presuppose?
A) A complete overhaul of the organization
B) An existing structure
C) A lack of resources
D) A static environment
E) A focus on innovation only

B) An existing structure
Explanation: Optimization involves improving current operations and presupposes that there is an existing structure in place, unlike renewal, which may require structural changes.

p.1
Cloud Technology in Running Shoes

What technology is central to On's running shoes?
A) Air technology
B) Gel technology
C) Cloud technology
D) Foam technology
E) Steel technology

C) Cloud technology
Explanation: On's running shoes are based on a proprietary, patented technology known as cloud technology, which is designed to enhance the running experience.

p.10
Stakeholder Engagement and Company Culture

What is the relationship between structure and culture in an organization?
A) They are completely independent
B) Structure influences culture, which impacts functioning
C) Culture determines structure without any influence
D) They have no correlation
E) Structure and culture are the same

B) Structure influences culture, which impacts functioning
Explanation: A strong hierarchical organization leads to a culture of control, demonstrating that structure and culture are interrelated and significantly affect the organization's functioning.

p.14
Business Processes and Value Creation

What does the process-oriented view in management emphasize?
A) Strict adherence to functional roles
B) The importance of communication in management tasks
C) Reducing the number of stakeholders involved
D) Focusing solely on financial outcomes
E) Minimizing interaction with external parties

B) The importance of communication in management tasks
Explanation: The process-oriented view emphasizes the importance of communication for performing management tasks, highlighting its role in facilitating effective management processes.

p.12
St. Gallen Management Model (SGMM)

What did the second-generation SGMM emphasize?
A) The importance of financial metrics
B) The concept of integrated management
C) The separation of management functions
D) The focus on individual performance
E) The elimination of stakeholders

B) The concept of integrated management
Explanation: The second-generation SGMM, titled 'The Concept of Integrated Management,' emphasized a holistic approach to management that addresses increased complexity and dynamics in the business environment.

p.14
Evolution of the St. Gallen Management Model

What are the two development modes mentioned in the context of management?
A) Innovation and stagnation
B) Optimization and renewal
C) Growth and decline
D) Expansion and contraction
E) Standardization and customization

B) Optimization and renewal
Explanation: The two development modes highlighted are optimization and renewal, which reflect different approaches organizations can take to adapt and improve their management practices.

p.2
Stakeholder Engagement and Company Culture

What is a unique event organized by On to engage with stakeholders?
A) A marathon in New York
B) A running event called 'Run to Switzerland'
C) A cycling competition
D) A triathlon in Tokyo
E) A charity walk in Paris

B) A running event called 'Run to Switzerland'
Explanation: The 'Run to Switzerland' event, organized in London, exemplifies how On engages with its stakeholders, particularly runners and retailers, through community-oriented activities.

p.11
Development Modes in Organizations

Which spheres are included in the first-generation SGMM model?
A) Only economic and social spheres
B) Technological, ecological, and social spheres
C) Only corporate politics
D) Isolated market spheres
E) None of the above

B) Technological, ecological, and social spheres
Explanation: The first-generation SGMM includes various spheres such as the ecological environment, technological sphere, economic sphere, and social sphere, reflecting its comprehensive approach to management.

p.9
St. Gallen Management Model (SGMM)

What is the role of governance in the St. Gallen Management Model?
A) To increase market share
B) To define company purpose and management resources
C) To enhance employee engagement
D) To develop new products
E) To manage financial resources

B) To define company purpose and management resources
Explanation: Governance ensures the prerequisites for management and strategic capability by defining the company's purpose, management resources, division of powers, and processes.

p.5
St. Gallen Management Model (SGMM)

Which of the following disciplines does management science interface with?
A) Only economics
B) Sociology and psychology only
C) A wide variety of disciplines
D) Only engineering and computer science
E) None of the above

C) A wide variety of disciplines
Explanation: Management science interfaces with multiple disciplines, including economics, law, sociology, psychology, ethics, engineering, and computer science, reflecting its broad applicability.

p.11
Development Modes in Organizations

What was a key characteristic of the first-generation SGMM developed in the early 1970s?
A) A strict, recipe-like approach to knowledge
B) An open-minded approach to problems
C) A focus solely on financial metrics
D) A rigid hierarchical structure
E) A purely theoretical framework

B) An open-minded approach to problems
Explanation: The first-generation SGMM emphasized an open-minded approach to problem-solving, contrasting with a rigid, recipe-like imparting of knowledge, which reflects its innovative nature in management studies.

p.12
St. Gallen Management Model (SGMM)

Which of the following is NOT one of the five approaches analyzed in the company model?
A) The company’s environment
B) Functional areas
C) Financial performance
D) Design levels
E) Structuring of tasks

C) Financial performance
Explanation: The five approaches analyzed in the company model include the company’s environment, functional areas, design levels, and structuring of tasks, but do not specifically mention financial performance.

p.14
Development Modes in Organizations

Which of the following is NOT a structuring force in management?
A) Strategy
B) Culture
C) Technology
D) Structure
E) Development modes

C) Technology
Explanation: While strategy, structure, and culture are considered structuring forces in management, technology is not categorized as such; rather, it is often viewed as a resource or tool that supports these forces.

p.2
Stakeholder Engagement and Company Culture

Who are considered important stakeholders for On?
A) Only the founders
B) Only the end customers
C) Employees, end customers, and retailers
D) Only the shareholders
E) Only the manufacturers

C) Employees, end customers, and retailers
Explanation: On's main focus is on employees, end customers (runners), and direct customers (retailers), highlighting the importance of these groups in their stakeholder engagement strategy.

p.6
Stakeholder Engagement and Company Culture

What role do stakeholders play in the context of the SGMM?
A) They are irrelevant to organizational success
B) They only influence the economic sphere
C) They interact with organizations and influence their environment
D) They are solely concerned with profit maximization
E) They do not have any concerns or interests

C) They interact with organizations and influence their environment
Explanation: Stakeholders, including customers, employees, and investors, interact with organizations and have interests that can influence both the organization and its surrounding environment, highlighting the interconnectedness emphasized in the SGMM.

p.9
St. Gallen Management Model (SGMM)

What do structuring forces in the St. Gallen Management Model ensure?
A) Increased competition
B) Basic order in governance and strategy
C) Employee satisfaction
D) Financial profitability
E) Technological advancement

B) Basic order in governance and strategy
Explanation: Structuring forces are essential for establishing the necessary basic order in governance, strategy, organizational form, and cultural norms, which are crucial for effective management.

p.9
St. Gallen Management Model (SGMM)

Why is a clear long-term purpose important for strategy design?
A) It reduces costs
B) It ensures employee retention
C) It helps in identifying strategic success factors
D) It increases sales immediately
E) It simplifies governance

C) It helps in identifying strategic success factors
Explanation: A clear long-term purpose allows an organization to design a strategy effectively, as it defines the fields in which strategic success factors can be identified.

p.1
Market Expansion Strategies

What is the estimated volume of the global running shoes market?
A) USD 5 billion per year
B) USD 10 billion per year
C) USD 15 billion per year
D) USD 20 billion per year
E) USD 25 billion per year

D) USD 20 billion per year
Explanation: The global growth market for running shoes is estimated to have a volume of USD 20 billion per year, indicating significant market potential.

p.10
Stakeholder Engagement and Company Culture

What must the culture of an organization be consistent with?
A) The personal beliefs of the CEO
B) The company's purpose
C) The market trends
D) The financial goals
E) The employee satisfaction

B) The company's purpose
Explanation: The culture of an organization must be consistent or at least compatible with the company's purpose, ensuring alignment between values and objectives.

p.8
Business Processes and Value Creation

Which of the following is NOT a central process in companies?
A) Service creation processes
B) Customer acquisition processes
C) Financial management processes
D) Service innovation processes
E) Customer loyalty processes

C) Financial management processes
Explanation: Financial management processes are considered support processes, while service creation, customer acquisition, and loyalty processes are central to business operations.

p.3
Stakeholder Engagement and Company Culture

Which of the following best describes On's organizational structure?
A) Hierarchical and rigid
B) Flat and lean
C) Complex and multi-layered
D) Traditional and bureaucratic
E) Fragmented and disorganized

B) Flat and lean
Explanation: On is described as having a flat and lean organization, which aligns with their value chain and supports efficient decision-making and innovation.

p.1
Founding and Mission of On

Who were the founders of On?
A) Olivier Bernhard, David Allemann, and Caspar Coppetti
B) Steve Jobs, Bill Gates, and Mark Zuckerberg
C) Elon Musk, Jeff Bezos, and Tim Cook
D) Richard Branson, Larry Page, and Sergey Brin
E) Warren Buffet, Charlie Munger, and Jamie Dimon

A) Olivier Bernhard, David Allemann, and Caspar Coppetti
Explanation: The founders of On include former professional athlete Olivier Bernhard, engineer David Allemann, and HSG graduate Caspar Coppetti, united by their love of running.

p.5
St. Gallen Management Model (SGMM)

What are the three consistent elements of the St. Gallen Management Model?
A) Environment, organization, management
B) Leadership, strategy, finance
C) Innovation, marketing, operations
D) Technology, culture, ethics
E) Planning, execution, evaluation

A) Environment, organization, management
Explanation: The three consistent elements of the St. Gallen Management Model are environment, organization, and management, which serve as foundational components for understanding management practices.

p.13
Evolution of the St. Gallen Management Model

Which of the following is NOT a key topic identified in the third-generation SGMM?
A) Corporate Culture
B) Organizational Structures
C) Financial Management
D) Management Systems
E) Corporate Development

C) Financial Management
Explanation: Financial Management is not listed as a key topic in the third-generation SGMM; instead, it focuses on corporate culture, organizational structures, management systems, and corporate development.

p.13
Evolution of the St. Gallen Management Model

What does the term 'Normative Management' refer to in the context of SGMM?
A) Aligning organizational goals
B) Executing daily operations
C) Constituting the organization
D) Restructuring corporate policies
E) Developing market strategies

C) Constituting the organization
Explanation: Normative Management in the SGMM context refers to the foundational aspects of constituting the organization, which is crucial for establishing its identity and purpose.

p.2
Stakeholder Engagement and Company Culture

What is a key characteristic of On's founders in relation to the company?
A) They have no involvement in employee meetings
B) They maintain strict control over all operations
C) They are actively involved in employee meetings
D) They only communicate through emails
E) They have no influence on company culture

C) They are actively involved in employee meetings
Explanation: The founders of On are actively involved in employee meetings, which fosters a personal connection with staff and reinforces the company's culture.

p.2
St. Gallen Management Model (SGMM)

In the context of the St. Gallen Management Model (SGMM), which environmental spheres are relevant for On?
A) Only economic
B) Technological, economic, and social
C) Only social
D) Only technological
E) Environmental and political

B) Technological, economic, and social
Explanation: The relevant environmental spheres for On, as per the SGMM, include technological, economic, and social environments, which are crucial for developing purchasing power and adapting to trends.

p.1
Market Expansion Strategies

Which market did On first target for expansion in the USA?
A) New York
B) Portland, Oregon
C) San Francisco
D) Chicago
E) Los Angeles

B) Portland, Oregon
Explanation: On began its expansion into the USA with a branch in Portland, Oregon, as part of its strategy to access new geographical markets.

p.10
Development Modes in Organizations

What does the latest version of the St. Gallen Management Model (SGMM) aim to provide?
A) A detailed financial analysis
B) An empty framework for creating meaning
C) A strict hierarchical structure
D) A comprehensive marketing strategy
E) A list of management tasks

B) An empty framework for creating meaning
Explanation: The SGMM aims to create an 'empty' framework that allows for the classification of problems and facilitates discussion, reflecting its role in management development.

p.6
Development Modes in Organizations

What is the purpose of the task perspective in the SGMM?
A) To focus solely on financial outcomes
B) To provide a comprehensive view of management practices
C) To ignore external influences on organizations
D) To emphasize hierarchical structures
E) To limit the scope of management discussions

B) To provide a comprehensive view of management practices
Explanation: The task perspective in the SGMM aims to illustrate key categories and components that are essential for understanding management, integrating various influences and practices.

p.14
Environmental Spheres and Their Impact

Which of the following best describes interaction issues in management?
A) Only financial concerns
B) Resources, norms, values, concerns, and interests
C) Employee performance metrics
D) Market share and competition
E) Technological advancements

B) Resources, norms, values, concerns, and interests
Explanation: Interaction issues encompass a range of factors including resources, norms, values, concerns, and interests, which are crucial for understanding stakeholder dynamics in management.

p.10
Development Modes in Organizations

What does the SGMM framework facilitate?
A) Simplifying financial reports
B) Classifying problems and facilitating discussion
C) Creating a rigid organizational structure
D) Developing marketing campaigns
E) Enhancing employee productivity

B) Classifying problems and facilitating discussion
Explanation: The SGMM framework serves as a scaffold for classifying problems, which aids in facilitating discussions about management and organizational issues.

p.13
Evolution of the St. Gallen Management Model

What is the primary focus of 'Strategic Management' in the SGMM?
A) Executing tasks
B) Aligning organizational goals
C) Constituting the organization
D) Developing corporate culture
E) Managing financial resources

B) Aligning organizational goals
Explanation: Strategic Management in the SGMM framework focuses on aligning the goals of the organization with its overall strategy, ensuring coherence in operations and objectives.

p.1
Stakeholder Engagement and Company Culture

How does On position its pricing strategy?
A) Toward achieving budget positioning
B) Toward achieving premium positioning
C) Toward achieving competitive pricing
D) Toward achieving discount pricing
E) Toward achieving variable pricing

B) Toward achieving premium positioning
Explanation: On gears its pricing strategy toward achieving premium positioning in its target markets, reflecting the quality and innovation of its products.

p.5
St. Gallen Management Model (SGMM)

What is the primary focus of management according to the St. Gallen Management Model?
A) Financial performance
B) Goal-oriented leadership
C) Employee satisfaction
D) Market expansion
E) Technological advancement

B) Goal-oriented leadership
Explanation: The term 'management' is derived from Latin words meaning 'to lead,' emphasizing that management is fundamentally about goal-oriented leadership within organizations.

p.11
Development Modes in Organizations

Which of the following describes the thinking approach of the first-generation SGMM?
A) Linear and simplistic
B) Holistic and interdisciplinary
C) Exclusive and narrow
D) Reactive and unstructured
E) Static and unchanging

B) Holistic and interdisciplinary
Explanation: The authors of the first-generation SGMM described systems thinking as holistic, process-oriented, interdisciplinary, analytical, synthetic, and pragmatic, promoting a comprehensive view of management.

p.9
St. Gallen Management Model (SGMM)

What is the purpose of strategy in an organization according to the St. Gallen Management Model?
A) To ensure compliance with regulations
B) To ensure competitiveness
C) To increase employee morale
D) To reduce operational costs
E) To enhance brand recognition

B) To ensure competitiveness
Explanation: The purpose of strategy is to ensure the organization's competitiveness by developing strategic success factors either from within or outside the company.

p.11
Development Modes in Organizations

What does the first-generation SGMM facilitate in terms of practical issues?
A) Isolated decision-making
B) Cross-functional and cross-subdisciplinary approaches
C) Strict adherence to traditional methods
D) Focus on individual performance
E) Elimination of stakeholder input

B) Cross-functional and cross-subdisciplinary approaches
Explanation: The first-generation SGMM facilitated a cross-functional and cross-subdisciplinary approach to practical issues, allowing for integrative thinking and collaboration across different areas of expertise.

p.1
Outsourcing and Production Partnerships

Where are On's shoes produced?
A) China
B) Vietnam
C) India
D) Bangladesh
E) Thailand

B) Vietnam
Explanation: On's shoes are produced by selected partner companies in Vietnam, highlighting the company's outsourcing strategy.

p.8
Development Modes in Organizations

What are the two types of organizational change distinguished in development modes?
A) Continuous improvement and radical change
B) Continuous optimizing and renewing the organization
C) Incremental change and disruptive innovation
D) Structural change and operational change
E) Short-term and long-term change

B) Continuous optimizing and renewing the organization
Explanation: The two types of organizational change are continuous optimizing of current operations and renewing the organization, which involves challenging the status quo.

p.12
St. Gallen Management Model (SGMM)

What was a significant change in the second-generation SGMM compared to the first?
A) It removed the environmental model
B) It focused solely on financial performance
C) It addressed the dynamics of increased complexity
D) It simplified management functions
E) It eliminated the company model

C) It addressed the dynamics of increased complexity
Explanation: The second-generation SGMM claimed to meet the requirements of a paradigm shift by consciously dealing with increased complexity and dynamics in management, reflecting changes in the global business environment.

p.3
Business Processes and Value Creation

What are the key processes involved in On's value creation?
A) Only marketing and sales
B) Product development and outsourcing production
C) Customer service and feedback
D) Financial management and accounting
E) Research and development only

B) Product development and outsourcing production
Explanation: The case study emphasizes that structuring the value creation process involves product development and outsourcing production and logistics, which are essential for On's operational efficiency.

p.3
Development Modes in Organizations

What drives On's continuous optimization and development?
A) Focus on local markets
B) Consistent internationalization
C) Reducing employee turnover
D) Increasing production costs
E) Limiting product range

B) Consistent internationalization
Explanation: Continuous optimization and further development at On are driven by consistent internationalization, which is necessary due to the small home market of Switzerland.

p.1
Founding and Mission of On

What was the primary mission of On when it was founded in 2010?
A) To create the cheapest running shoes
B) To revolutionize the running experience
C) To dominate the fashion industry
D) To develop technology for other sports
E) To focus solely on clothing

B) To revolutionize the running experience
Explanation: On was founded with the radical idea of revolutionizing the running experience, emphasizing soft landings and explosive push-offs in their shoe design.

p.1
Outsourcing and Production Partnerships

Where is On's headquarters located?
A) Geneva
B) Zurich-West
C) Bern
D) Lausanne
E) Basel

B) Zurich-West
Explanation: On is headquartered in Zurich-West, which serves as the central hub for its design and development processes.

Study Smarter, Not Harder
Study Smarter, Not Harder