Deck 7: Implementing Strategies: Management and Operations Issues

Question 1

Avoidance, infusion and confrontation are the classifications for the various approaches for minimizing and resolving conflict.

Answer 1

False

Question 2

Strategy formulation is the managing of forces during the action, whereas strategy implementation is the positioning of forces before the action.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

Horizontal consistency is more important than vertical consistency in developing annual objectives.

Question 5

Not allocating resources according to the priorities indicated by approved objectives is detrimental to the strategic-management process.

Question 6

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

Question 7

A bottom-up flow of communication is essential for developing top-down support.

Question 8

Conflict of any kind is avoidable in organizations.

Question 9

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

Question 10

Concerning managing and resolving conflict, defusion includes such actions as ignoring the problem in hopes that the conflict will resolve itself.

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

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

Question 16

Effective strategy formulation can usually guarantee successful strategy implementation.

Question 17

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

Question 18

Strategy formulation requires coordination among a few individuals, but strategy implementation requires coordination among many.

Question 19

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

Question 20

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

Question 21

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

Question 22

Cornerstones of reengineering are decentralization, reciprocal interdependence and information sharing.

Question 23

Restructuring is also called rightsizing.

Question 24

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

Question 25

Resistance to change can be considered the single greatest threat to successful strategy implementation.

Question 26

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

Question 27

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 28

Six Sigma is generally equally successful in retail firms and manufacturing firms.

Question 29

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

Question 30

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

Question 31

Yahoo's Terry Semel was the highest paid CEO in 2006 with a salary of over $100 million.

Question 32

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

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

An effective bonus system should be based on two key factors: annual objectives and long-term objectives.

Question 38

The most complex of all designs is a matrix structure.

Question 39

When developing an organizational chart, it is not wise to recommend a dual title for just one executive.

Question 40

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

Question 41

Changing a strategy to fit an existing culture is not as effective as changing a firm's culture to fit a new strategy.

Question 42

Work/family issues are typically focused on the benefit to working women.

Question 43

Individualism, achievement, competition, informality and doing more than expected are all stressed by Mexican businesses.

Question 44

Recently, an increasing number of companies have been implementing less rigorous environmental policies.

Question 45

Strategy formulation

A) is managing forces during the action.
B) focuses on effectiveness.
C) is primarily an operational process.
D) requires coordination among many people.
E) all of the above

Question 46

Managing environmental affairs is primarily a technical function performed by specialists in a firm.

Question 47

Ideally, the rational type change strategy is the most desirable.

Question 48

The United States leads the world in promoting women and minorities into mid- and top-level managerial positions in business.

Question 49

An important business activity in Japan is entertaining because it strengthens Wa.

Question 50

Which of these is true about strategy implementation?

A) It is positioning forces before the action.
B) It focuses on effectiveness.
C) It is primarily an operational process.
D) It is primarily an intellectual process.
E) It requires intuitive skills

Question 51

ESOPs work well even in firms with fluctuating payrolls and profits.

Question 52

Besides reducing worker alienation and stimulating productivity, ESOPs allow firms other benefits, such as substantial depreciation savings.

Question 53

The rational change strategy is one that presents information to convince people of the need for change.

Question 54

Managing as if the earth matters requires an understanding of how international trade, competitiveness and global resources are connected.

Question 55

Production processes typically constitute less than 50 percent of a firm's total assets.

Question 56

An effective, multi-method technique for studying and altering a firm's structure is known as triangulation.

Question 57

JIT significantly increases the costs of implementing strategies.

Question 58

A rational change strategy means giving orders and enforcing those orders.

Question 59

The fastest of all approaches to implement change is the rational change strategy.

Question 60

How are objectives in the areas of profitability, growth and market share commonly established?

A) Business segment
B) Geographic location
C) Customer groups
D) Product
E) all of the above

Question 61

What are guidelines, methods, procedures, rules, forms and administrative practices known as?

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

Question 62

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) Diffusion
E) Confrontation

Question 63

Medium-sized firms are more likely to use which type of structure.

A) divisional
B) matrix
C) SBU
D) functional
E) process

Question 64

How would Hershey's current divisional structure most likely be classified?

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

Question 65

Considerable time and effort should be devoted to assuring objectives are well conceived because they represent the basis for

A) monitoring processes.
B) establishing divisional priorities.
C) allocating resources.
D) evaluating managers.
E) all of the above

Question 66

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 incorporate policies.
D) They should be measurable.
E) They should be consistent

Question 67

Which term would most likely be incorporated into written objective statements?

A) Maximize
B) Minimize
C) 10% increase
D) Adequate
E) all of the above

Question 68

Conflict in an organization is

A) always bad.
B) always good.
C) sometimes good and sometimes bad.
D) a sign of bankruptcy.
E) avoidable

Question 69

Which of the following issues may not require a management policy?

A) To establish a high- or low-safety stock of inventory
B) To increase motivation
C) To offer numerous or few employee benefits
D) To discourage insider trading
E) To promote from within to or to hire from the outside

Question 70

A divisional structure by product is most effective when

A) special emphasis needs to be placed on specific products.
B) an organization offers few products.
C) an organization's products or services differ substantially.
D) special emphasis needs to be placed on specific services.
E) all of the above

Question 71

A disagreement between two or more parties on one or more issues is called an)

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

Question 72

Which term is best defined as a central management activity that allows for strategy execution.

A) Policy-making
B) Goal-setting
C) Establishing annual objectives
D) Resource allocation
E) Conflict

Question 73

Establishing objectives is a

A) top-level activity.
B) centralized activity.
C) decentralized activity.
D) centralized-decentralized activity.
E) command-and-control activity

Question 74

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) Diffusion
E) Confrontation

Question 75

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

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

Question 76

_______ is not a major factor that commonly prohibits effective resource allocation.

A) Underprotection of resources
B) Organizational politics
C) Vague strategy targets
D) Reluctance to take risks
E) Lack of sufficient knowledge

Question 77

What type of organizational structure do most small businesses follow?

A) Divisional structure by product
B) Functional structure
C) Divisional structure by customer
D) Process type structure
E) Matrix structure

Question 78

Why do changes in company strategy often require changes in the way an organization is structured?

A) Structure dictates how goals and objectives will be established.
B) Structure dictates authority over projects.
C) Structure dictates how resources will be obtained.
D) Structure dictates strategy.
E) Structure dictates how money is spent

Question 79

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

A) Avoidance, diffusion and confrontation
B) Avoidance, payoff and diffusion
C) Confrontation, ignorance and objectivity
D) Buy, sell and hold
E) There are no good ways to manage conflict

Question 80

Which organizational structure is the most simple and inexpensive?

A) departmental
B) strategic business unit
C) functional
D) decentralized
E) process