Deck 7: Implementing Strategies: Management and Marketing Issues

Question 1

Annual objectives are key components in the strategic-management process because they dictate how resources will be allocated.

Answer 1

True

Question 2

What are five differences between strategy formulation and strategy implementation?

Answer 2

Student answers should include five of the following: Strategy formulation is positioning forces before the action, whereas strategy implementation is managing forces during the action. Strategy formulation focuses on effectiveness, whereas strategy implementation focuses on efficiency. Strategy formulation is primarily an intellectual process, whereas strategy implementation is primarily an operational process. Strategy formulation requires good intuitive and analytical skills, whereas strategy implementation requires special motivational and leadership skills. Strategy formulation requires coordination among a few individuals, whereas strategy implementation requires coordination among many individuals. Strategy formulation is science with tools and techniques, whereas strategy implementation is an art to energize people. Strategy formulation and strategy implementation are both difficult to do well, but strategy implementation is considerably more difficult to do well. Strategy orientation is process oriented, whereas strategy implementation is people oriented. Strategy formulation is primarily the responsibility of top managers, whereas strategy implementation is primarily the responsibility of mid and lower level managers.

Question 3

Which of the following is NOT a management issue central to strategy implementation?

A) Devising policies
B) Revising reward and incentive plans
C) Minimizing resistance to change
D) Developing an effective human resources function
E) Developing budgets

Answer 3

E

Question 4

It is always easier to say you are going to do something (strategy formulation) than to actually do it (strategy implementation).

Question 5

Policies refer to specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals.

Question 6

Unlike strategy formulation, strategy implementation varies considerably among different types and sizes of organizations.

Question 7

Which is NOT a characteristic of policies?

A) Let both employees and managers know what is expected of them
B) Provide a basis for management control
C) Allow coordination across organizational units
D) Reduce the amount of time managers spend making decisions
E) Represent the basis for allocating resources

Question 8

Undesirable conduct such as distorting the records can be a result of overemphasis on achieving objectives.

Question 9

Which of the following is NOT true about objectives?

A) They should be communicated throughout the organization.
B) They should have an appropriate time dimension.
C) They should use terms like "maximize," "minimize," and "as soon as possible."
D) They should be measurable.
E) They should be consistent.

Question 10

Effective strategy formulation can usually guarantee successful strategy implementation.

Question 11

Annual objectives are essential for strategy implementation for all of the following reasons EXCEPT

A) they represent the basis for allocating resources.
B) they are a primary mechanism for evaluating managers.
C) they are essential for keeping a strategic plan on track.
D) they establish organizational, divisional, and departmental priorities.
E) they help improve organizational morale.

Question 12

Policies help an organization in all of the following ways EXCEPT

A) let both employees and managers know what is expected of them.
B) provide a basis for management control.
C) allow coordination across organizational units.
D) reduce the amount of time managers spend making decisions.
E) reduce work load of employees.

Question 13

List three of the primary reasons annual objectives are essential for strategy implementation.

Question 14

What term is used to describe specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals?

A) Long-term objectives
B) Policies
C) Annual objectives
D) Strategies
E) Values

Question 15

"All of our locations will be open at least two evenings per week until 8:30 p.m." is an example of a(n)

A) administration.
B) goal.
C) objective.
D) policy.
E) procedure.

Question 16

Which word or phrase would be most suitable to use in written objective statements?

A) Maximize
B) Minimize
C) 10 percent increase
D) Adequate
E) As soon as possible

Question 17

Horizontal consistency is less important than vertical consistency in developing annual objectives, but it still contributes to improved objectives.

Question 18

Which of the following is NOT a management issue central to strategy implementation?

A) Devising policies
B) Revising reward and incentive plans
C) Performing an internal audit
D) Minimizing resistance to change
E) Developing an effective human resources function

Question 19

A firm's annual objectives can be stated by business segment.

Question 20

Implementing strategy affects all the functional areas of a business and may influence some divisional areas of a business.

Question 21

Which approach for managing and resolving conflict involves exchanging members of conflicting parties so that each can gain an appreciation of the other's point of view?

A) Avoidance
B) Resistance
C) Compliance
D) Defusion
E) Confrontation

Question 22

Alfred Chandler's conclusions on the relationship between strategy and structure can be summed up as

A) structure shapes strategy.
B) strategy and structure are independent factors.
C) structure and strategy are unrelated.
D) structure follows strategy.
E) strategy follows structure.

Question 23

Which is NOT a major factor that commonly prohibits effective resource allocation?

A) Underprotection of resources
B) Organizational politics
C) Having vague strategy targets
D) A reluctance to take risks
E) A lack of sufficient knowledge

Question 24

The approaches for managing and resolving conflict in an organization can be classified into three categories. Name these three categories and give an example for each.

Question 25

Exchanging members of conflicting parties so each can gain an appreciation of the other's point of view exemplifies a confrontation approach.

Question 26

Holding a meeting at which conflicting parties present their views and work through their differences is part of the defusion technique of managing conflict.

Question 27

"Beginning in March, production employees will have the option of working up to 12 hours of overtime per week." is an example of a procedure.

Question 28

Four types of resources that can be used to achieve desired objectives are financial, physical, human, and technological.

Question 29

A disagreement between two or more parties on one or more issues is called a(n)

A) integrated solution.
B) conflict.
C) compromise.
D) defusion.
E) avoidance.

Question 30

In the context of conflict management and resolution, ignoring the problem in the hopes that the conflict will resolve itself is classified as a defusion technique.

Question 31

An absence of conflict can signal ________ within an organization.

A) indifference and apathy
B) insight and apathy
C) indifference and indignation
D) disputes
E) profitability

Question 32

Conflict in an organization is

A) always bad.
B) always good.
C) not always bad.
D) a sign of bankruptcy.
E) completely avoidable.

Question 33

Conflict is highly unusual in well-run organizations.

Question 34

Structure dictates how resources will be allocated.

Question 35

Which approach for managing and resolving conflict involves playing down differences between conflicting parties, while accentuating similarities and common interests?

A) Avoidance
B) Resistance
C) Compliance
D) Defusion
E) Confrontation

Question 36

Avoidance, defusion, and confrontation are the classifications for the various types of conflict that can arise in organizations.

Question 37

Which approach for managing and resolving conflict involves ignoring the problem in hopes that the conflict will resolve itself?

A) Avoidance
B) Resistance
C) Compliance
D) Defusion
E) Confrontation

Question 38

Name at least six issues indicated by the authors that may require a management policy.

Question 39

What are the three categories of approaches for managing and resolving conflict?

A) Avoidance, defusion, and confrontation
B) Avoidance, apathy, and defusion
C) Ignorance, indifference, and apathy
D) Defusion, apathy, and avoidance
E) Indifference, avoidance, and role playing

Question 40

Strategies clarify what can and cannot be done in pursuit of an organization's objectives.

Question 41

Which organizational structure has the disadvantage of ambiguous roles for some senior executives?

A) Functional
B) Divisional
C) Strategic Business Unit (SBU)
D) Matrix
E) Process

Question 42

With a divisional structure, it is possible that competition between divisions may become so intense that it leads to improved sharing of ideas and resources for the common good of the firm.

Question 43

What is NOT one of the basic ways a divisional structure can be organized?

A) By geographic area
B) By product
C) By customer
D) By process
E) By cost

Question 44

What is the most complex form of organizational structure?

A) Divisional
B) SBU
C) Matrix
D) Functional
E) Geographic

Question 45

A functional structure can be effective at eliminating short-term and narrow thinking.

Question 46

Which organizational structure is the most widely used?

A) Departmental
B) Strategic business unit
C) Functional
D) Decentralized
E) Matrix

Question 47

Medium-sized firms tend to use which type of structure?

A) Divisional
B) Matrix
C) SBU
D) Functional
E) Centralized

Question 48

Tasks and activities are grouped together by business function in a divisional organizational structure.

Question 49

According to Alfred Chandler "changes in strategy lead to changes in organizational structure."

Question 50

The Omega Company sells two very different types of products, each of which needed special emphasis. The type of structure that would best suit the Omega Company is the ________ structure.

A) divisional-by-size
B) divisional-by-process
C) divisional-by-geography
D) divisional-by-region
E) divisional-by-product

Question 51

What type of organizational structure promotes specialization of labor and allows rapid decision making?

A) Divisional structure by product
B) Functional structure
C) Divisional structure by customer
D) Strategic business unit
E) Matrix structure

Question 52

Which divisional structure stands out for effectiveness when a few major customers are of paramount importance and many different services are provided to these customers?

A) By geographic area
B) By customer
C) By product
D) By process
E) By cost

Question 53

With the matrix structure it is common for functional resources to be duplicated.

Question 54

With a divisional structure by customer, an organization can effectively cater to the requirements of clearly defined customer groups.

Question 55

Medium-sized firms tend to be divisionally structured, whereas large firms tend to use an SBU (strategic business unit) or matrix structure.

Question 56

A divisional structure by geographic area is most appropriate when

A) organizations have similar branch facilities located in widely dispersed areas.
B) an organization offers only a limited number of products or services.
C) consumption patterns for its products and/or services are the same worldwide.
D) the company's customers in different geographic locations have similar needs and characteristics.
E) the firm serves one geographic area.

Question 57

The most complex of all organizational structures is a matrix structure.

Question 58

Policies largely dictate how structure will be established.

Question 59

Because activities are organized according to the way work is actually performed, a divisional structure by process is similar to the matrix structure.

Question 60

Most large companies have abandoned the functional structure in favor of decentralization.

Question 61

Reengineering always affects the organizational structure and involves job loss.

Question 62

What action involves reconfiguring or redesigning work, jobs, and processes for the purpose of improving cost, quality, service, and speed?

A) Restructuring
B) Downsizing
C) Reengineering
D) Delayering
E) Recruiting

Question 63

Which term is primarily concerned with shareholder well-being rather than employee well-being?

A) Benchmarking
B) Reengineering
C) Product redesign
D) Process management
E) Restructuring

Question 64

When developing an organizational chart, you should

A) recommend dual titles for executives.
B) use the title "president" for the top executive of the firm.
C) make sure that the chief financial officer is not at the same level as the chief operating officer (COO).
D) have division presidents report to a chief operating officer (COO).
E) have employees report to more than one person in the chain of command.

Question 65

When developing an organizational chart, it is not wise to recommend that any executive have a dual title.

Question 66

Production processes typically constitute more than ________ percent of a firm's total assets.

A) 30
B) 40
C) 50
D) 60
E) 70

Question 67

Restructuring is sometimes called

A) outsourcing.
B) downsizing.
C) strategizing.
D) unfreezing.
E) planning.

Question 68

In publicly held U.S. companies it is becoming increasingly common to combine the positions of chairperson of the board and the CEO.

Question 69

In terms of number of employees, restructuring usually involves increasing the size of the firm.

Question 70

In developing an organizational chart, avoid having a particular person reporting to more than one person in the chain of command.

Question 71

Just-in-time describes

A) implementing strategies just before bankruptcy.
B) delivering materials just as they are needed.
C) a scheduling method for meetings.
D) a personnel planning method.
E) a process for improving quality.

Question 72

Reengineering does not usually affect the organizational structure or chart, nor does it imply job loss or employee layoffs.

Question 73

The focus of restructuring is changing the way work is actually carried out.

Question 74

The primary benefit sought from restructuring is

A) employee involvement.
B) cost reduction.
C) increased morale.
D) increased number of hierarchical levels in the organization.
E) increased innovation.

Question 75

People's anxieties are raised with the thought of change because they fear economic loss, inconvenience, uncertainty, and a break in normal social patterns.

Question 76

A change strategy that attempts to convince people that the change is to their personal advantage is

A) defusion.
B) force.
C) educative.
D) rational.
E) compromise.

Question 77

When developing an organizational chart, the title "president" should be reserved for the top executive of the firm.

Question 78

What change strategy involves giving orders and enforcing those orders?

A) Self-interest
B) Educative
C) Force
D) Rational
E) Defusion

Question 79

What are the advantages and disadvantages of a divisional organizational structure?

Question 80

List the four basic ways a divisionally structured firm could be organized.