Deck 10: Organisational Models and Approaches to Strategy

Question 1

Why is the classical approach to strategy development limited?

Answer 1

The classical approach to strategy development involves analysis and evaluation of data before making a strategic decision. Strategic decisions are therefore planned in advance. This is potentially limiting because it may set the organization on a course of action which may not turn out to be the best course of action. In other words, the classical approach is not opportunistic.

Question 2

What are the benefits of the incremental approach to strategy development?

Answer 2

The incremental approach to strategy development involves making small changes to the organization over a period of time. It involves trial and error and experimentation. It is a low risk approach to strategy in the short term but in the long term the organization may not have changed enough to keep in step with the external environment. Incremental change does not change the underlying organizational culture which means it causes minimal disruption to day to day operations.

Question 3

What gives individuals and groups power in an organization?

Answer 3

French and Raven (1960) suggest that power can be gained by reward, coercion, legitimate authority, expertise and referent power (where people want to identify with that person). There are many other authors in this area who identify various sources of power. It is important to realize that power in an organization isn't always based on formal sources of power.

Question 4

What can we learn from discourse theory in understanding strategy?

Question 5

What did Goffman (1968) mean by 'total institutions'?

A) Highly routinized and inflexible organizations
B) Highly creative organizations
C) Very powerful organizations
D) Non commercial organizations such as government organizations.

Question 6

An organizational sub-culture can be defined as

A) separate culture groups within an organization which align with and tolerate the dominant organizational culture
B) The 'real' organizational culture
C) separate culture groups within an organization that conflict with the dominant organizational culture
D) Aspects of organizational culture that can be observed through symbols

Question 7

A relatively new perspective on strategy has emerged in response to the criticism that much of strategy literature is divorced from the real work of strategy. What is this perspective known as?

A) Strategy in action
B) Strategy as practice
C) Real strategy
D) Strategy ethnography

Question 8

What can we learn about strategy making if we look at it from a discourse point of view?

A) The influence of power in strategy making
B) The influence of social class in strategy making
C) The influence of personality in strategy making
D) The influence of language in strategy making

Question 9

Hickson et al (1971) propose a contingency view of power. What does this mean?

A) The degree of power that an individual holds matches their level of seniority
B) Power does not necessarily correspond to level of seniority
C) The degree of power that an individual holds tends to match their length of tenure in the organization
D) The degree of power than an individual holds diminishes beyond a particular length of tenure in the organization

Question 10

Simon, Herbert and March argue that strategists cannot make rational strategic decisions because they are

A) boundedly rational
B) boundedly irrational
C) boundedly emotional
D) emotional

Question 11

Cyert and March (1963) believe that strategists will not necessarily choose the best option. Which term do they use to describe this behaviour?

A) path of least resistance
B) sub-optimal
C) Satisficing
D) Incremental

Question 12

Which term does Mintzberg (1994) use to describe the classical school of strategy?

A) Rational school
B) Design school
C) Mainstream school
D) Prescriptive school

Question 13

Which of the following statements most closely agrees with Chandler's findings about the link between strategy and structure?

A) Firms follow a strategy that derives from the organizational structure
B) A centralized structure is most suitable for diversified firms
C) Firms adopt their structure to fit the strategy being followed
D) The multi-divisional structure is most suitable for diversified firms

Question 14

Peters and Waterman (1982) wrote a very popular management book on the subject of

A) Charismatic leaders
B) Knowledge management
C) Emotional intelligence
D) Organizational culture

Question 15

Prahalad and Hamel (2005) refer to the concept of 'strategic intent'. What is strategic intent?

A) A set of aspirations that unites the whole organization
B) The corporate rationale of the firm
C) A long term plan
D) An emergent set of actions that become the firm's strategy

Question 16

What is meant by 'value engineering'?

A) Re-engineering the value chain to make the organization more efficient
B) Changing the ethical stance of the organization
C) Creating more value for customers
D) Creating strong organizational cultures

Question 17

It is argued that strategic decisions get shaped by 'dominant coalitions'. What do dominant coalitions have that enables them to shape strategic decisions?

A) Money
B) Power
C) Charisma
D) Size

Question 18

French and Raven (1960) define five ways that power can be gained. One of these is 'referent' power. How is referent power defined?

A) The extent to which others want to identify with A
B) The extent to which others fear A
C) The extent to which A has control over resources
D) The extent to which A has knowledge that others need

Question 19

When viewing strategy as a behavioural process that is also shaped by power and politics, we can deduce that organizations are likely to

A) Repeat past behaviour
B) Break with past behaviour
C) Be creative
D) Be innovative

Question 20

What does the Darwinian view of strategy say about strategic decision making?

A) Strategic decision making is rather pointless - it is the market that decides survival of the firm
B) Strategic decision making evolves over time
C) The best leader will rise to the top and their strategy will be adopted
D) Strategies will be chosen that adapt the organization to its environment

Question 21

The perspective which sees the environment as the key influence over a firm's destiny is called

A) Managerial agency
B) Managerial determinism
C) Environmental determinism
D) Environmental agency

Question 22

In the population ecology perspective 'environmental niches' can be seen in the form of

A) Strategic groups
B) Firms with specialist resources
C) Small market segments
D) Blue oceans

Question 23

Analytical tools such as Porter's Five Forces and the Ansoff Matrix are rooted in which approach to strategy?

A) Evolutionary
B) Classical
C) Systemic
D) Processual

Question 24

Strategic decisions usually have to take into account viewpoints and desires of a range of individuals and groups. These individuals and groups are commonly referred to as

A) Negotiators
B) Players
C) Shareholders
D) Stakeholders