Deck 15: The Practice of Strategy

Question 1

Which of the following is not one of the three important qualities that senior managers need if they are to contribute effectively to high- level strategy making?

A) Social and influencing skills
B) Experience in a contrasting industry or sector
C) Mastering analytical concepts and techniques
D) Group acceptance as a player

Answer 1

B

Question 2

Which of the following is not one of the four elements that must be considered when shaping how strategy will be communicated to employees?

A) Employee- engagement
B) Media
C) Focus
D) Impact
E) Risk of conflict

Answer 2

E

Question 3

Which two of the following are benefits of involving middle managers in strategy formulation?

A) It gives senior management more time to take more important decisions.
B) It may improve implementation.
C) It releases front line managers for activities relating to strategy implementation.
D) They have direct experience of the realities of the organisation so may make better strategic decisions.

Answer 3

B, D

Question 4

A particular issue relating to an acquisition opportunity is of high urgency. Who should probably deal with it?

A) A strategy workshop
B) A small, special project team
C) Strategic conversation throughout the organisation
D) Relevant managers

Question 5

Which of the following will generally be the last consideration for a team working to create a strategic plan?

A) Organisational analysis
B) Proposed strategy
C) The organisation's mission, vision and values
D) Resources
E) Environmental analysis

Question 6

Which approach to assessing options and making decisions starts with a proposition which is then tested using real- world data?

A) What- if analysis
B) Hypothesis testing
C) Reality testing
D) How- if analysis

Question 7

Which of the following best describes the role of the CEO during a strategy workshop?

A) To stay away so that all can discuss issues freely
B) To make frequent visits to show commitment
C) To open and close the proceedings but leave discussion to others
D) To demonstrate complete commitment by being involved throughout

Question 8

When planning strategy, many CEOs or divisional heads may ask specific departments for reports on, for example, the financial or HR implications. What term is used for this channel?

A) Corporate
B) Delegated
C) Line
D) Staff

Question 9

What is the key advantage of involving non- executive directors in strategy development?

A) They have no executive management responsibilities.
B) They can offer an external and objective view.
C) They have time to carefully study and analyse all the relevant documentation.
D) They are accepted by the employees as being chief strategists.

Question 10

Which of the following is not generally an important aspect of strategic issue selling?

A) Balancing formal and informal channels of influence
B) Decision making
C) Timing
D) Packaging or framing the issue

Question 11

Which three key measures can client organisations take to improve outcomes in strategy consulting?

A) Professionalise their purchasing of consulting services
B) Take care to limit the information that consultants receive
C) Develop supervisory skills
D) Form effective partnerships with consultants

Question 12

An organisation needs to plan a rapid reaction to a competitor's pricing move. Which of the following approaches is probably best?

A) A small, special project team
B) Strategic conversation by managers throughout the organisation
C) A strategy workshop
D) Discussion by marketing and finance managers

Question 13

Analysis is now always simply about providing the information for good strategic decisions. Which of the following are other reasons why analysis my occur? Choose all that apply.

A) To get buy- in from managers
B) For political reasons, forwarding the agenda of a particular manager or group
C) For time- management reasons, ensuring that managers are fully employed.
D) To symbolise analysis, even though the decision has already been taken
E) To procrastinate, putting off the decision

Question 14

Which of the following is not one of Eisenhardt's suggestions for managers making decisions in fast- moving environments?

A) Aim for consensus but not at any cost
B) Carry out full analysis of all options before decision making
C) Build multiple, simultaneous alternatives
D) Seek the views of trusted advisors
E) Track real- time information

Question 15

Which two of the following are ways in which use of SWOT in practice often deviates from textbook recommendations?

A) O and T factors are often considered of more importance than S and W factors.
B) Factors are rarely probed or refined.
C) S and W factors are often considered of more importance than O and T factors.
D) It produces lists that are unmanageably long.

Question 16

Which of the following is not one of the roles which consultants may play in strategy development?

A) Transferring knowledge
B) Implementing strategic change
C) Promoting strategic decisions
D) Blame- taking if strategy fails
E) Analysing, prioritising and generating options

Question 17

Which of the following will typically be considered to be the 'chief strategist'?

A) The senior external consultant
B) The most experienced non- executive director
C) The chief executive officer
D) The most experienced member of the top management team

Question 18

Which of the following are likely to increase the effectiveness of a strategy workshop? Choose all that apply.

A) Insist on prior preparation
B) Break organisational routines
C) Involve participants from outside the senior executive team
D) Centre the workshop on a series of lectures and other information- passing activities
E) Involve outside consultants as facilitators

Question 19

Which of the following provides the data and argument in support of a particular strategy for the whole organisation over a substantial period of time?

A) Business case
B) Strategy project
C) Mission
D) Strategic plan

Question 20

What term is used for a team of people assigned to work on particular strategy issues over a defined period of time?

A) Strategy project
B) Off- site testing
C) Hypothesis testing
D) Strategy workshop

Question 21

In which three ways are the top management team constrained?

A) They tend to work for consensus and avoid conflict.
B) They are often appointed by the CEO so may lack independence.
C) They can only offer an external view of the organisation.
D) They typically also hold operational responsibilities which may distract them.

Question 22

Which of the following is not generally an important aspect of strategic issue selling?

A) Deciding whether to sell alone or in a coalition
B) Balancing formal and informal channels of influence
C) Ensuring that you sell multiple issues
D) Timing

Question 23

Strategy has a number of purposes. What are the two key implications for managers?

A) Ensure that all issues are thoroughly analysed before proceeding to decision- making.
B) Invest appropriately in technical quality.
C) Design the analysis according to the real purpose.
D) Ensure buy- in and political input from all involved.

Question 24

Which three of the following are trends leading to increasing middle management involvement in strategy making?

A) Middle managers are no longer expected to implement strategy.
B) Many organisations are decentralising their organisational structures.
C) Middle managers have become better trained and confident in strategy.
D) The shift from manufacturing to one based on professional services means that knowledge held by middle managers is often a source of competitive advantage.

Question 25

Which of the following forms the critical starting place for a team working to create a strategic plan?

A) Resources
B) Environmental analysis
C) Organisational analysis
D) The organisation's mission, vision and values
E) Proposed strategy

Question 26

Which of the following is not one of the four key needs of a strategy project?

A) Appropriate resources
B) A long timescale
C) Top management commitment
D) A clear brief or mandate
E) Milestones and reviews

Question 27

Which form of testing uses a project team's existing experience and easily accessed data, thus allowing for rapid decision making?

A) What- if analysis
B) Quick and dirty testing
C) Hypothesis testing
D) Organisational learning

Question 28

What term is used for the fact that people tend to exaggerate a case in favour of this particular proposal?

A) Horn's effect
B) Halo effect
C) Champion's bias
D) Sunflower syndrome

Question 29

Which three of the following are key guidelines for using SWOT?

A) Spend time identifying all the relevant factors
B) Use the list to decide what to investigate further.
C) Plan concrete actions on prioritised factors.
D) Focus on the key factors.

Question 30

Most organisations have a formal channel for issue selling that moves from operational managers to divisional heads to the CEO. What term is used for this channel?

A) Line
B) Staff
C) Corporate
D) Symbolic

Question 31

Which approach to communicating strategy involves tasking each level of managers to convey the strategy directly to the level below?

A) Roadshows
B) Impacting
C) Delegating
D) Cascading

Question 32

Eisenhardt suggests that managers in a fast- moving environment should aim for consensus but not at any cost. What two points result from that guideline?

A) The CEO should always base a decision on the majority view, not their own opinion.
B) Managers who disagree with a decisions would work constructively to change it in future.
C) Other managers should accept the decision and get on with implementation.
D) The CEO should have the courage to make a decision at some point.

Question 33

Which two comments summarise the access/execution paradox?

A) Middle managers normally take responsibility for planning strategy.
B) Those with most access to the CEO are strategic planners and strategy consultants.
C) Middle managers have knowledge of the business on the ground and have responsibility for strategy implementation.
D) Senior management has the greatest understanding of operational issues.

Question 34

Eisenhardt suggests that decision makers in fast- moving environments must use real time information. What did she mean by this term?

A) Information that is available to the decision makers without needing reference to others
B) Information that is quantitative and statistically significant
C) Up- to- date information
D) Information from current operations rather than statistical trends

Question 35

Which of the following provides the data and argument in support of, for example, investment in new equipment?

A) Strategic plan
B) Business case
C) Strategy project
D) Mission

Question 36

What three important tasks do strategic planners have?

A) To make strategic decisions
B) To manage the strategy process
C) To provide information and analysis
D) To support top management on special projects

Question 37

What term is used for events in which groups of executives work intensively for one or two days or organisational strategy?

A) Managerial engagements
B) Intense- day
C) Cascading
D) Strategy workshops

Question 38

Which of the following approaches is most suitable for a public sector organisation that wants to encourage debate among a wide range of stakeholders about a controversial policy issue?

A) Discussion in the relevant council or funding organisation.
B) Formation of a sub- committee of relevant managers
C) An internet discussion forum
D) A strategy workshop for the organisation's employees

Question 39

An organisation wants to consider the long- run evolution of their market. Which of the following approaches is probably best?

A) Strategic conversation by managers throughout the organisation
B) A small, special project team
C) A strategy workshop
D) Discussion by marketing managers

Question 40

What term is used for the process of winning the attention and support of top management and other important stakeholders for strategic issues?

A) Strategic issue selling
B) Strategic analysis
C) Procrastination
D) Executive expansion

Question 41

McKinsey & Co research indicates that the people involved in strategy making should remain constant over a period of years to ensure continuity.

Question 42

What term is used for the fact that people tend to follow the lead taken by the most senior person in the decision- making process?

A) Champion's bias
B) Horn's effect
C) Sunflower syndrome
D) Halo effect

Question 43

A project team is planning to make a business case. Which of the following guidelines should they follow? Choose all that apply.

A) Focus on strategic needs.
B) Provide clear progress measures.
C) Support your argument with key data.
D) Demonstrate solutions and actions.
E) Think long term.

Question 44

Middle managers may not be formally involved in making strategy. In which three ways may they have an informal influence?

A) By having access to organisational networks
B) By aiming for promotion to senior positions in future
C) By holding key organisational positions
D) Through discussion with front line managers
E) By having access to the organisation's 'strategic conversation'

Question 45

McKinsey & Co research indicates that the people involved in making strategic decisions should vary according to the nature of the decision.

Question 46

Strategic planners are also sometimes known as corporate development managers.

Question 47

Where possible, project teams should include a mix of consultants and managers from the client organisation.

Question 48

Holding a strategy workshop offsite and adopting a casual style ensure that normal organisational politics is largely suspended.

Question 49

What term is used for managers spending too long perfecting their analysis, leaving little time to make decisions and plan action?

A) Swotting
B) Analysisation
C) Paralysis by analysis
D) Quick and dirty

Question 50

What two key points must be balanced when carrying out SWOT analysis?

A) Purpose
B) Politics
C) Cost
D) Technical quality