Deck 7: Implementing Strategies: Management and Operations Issues

Question 1

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

Answer 1

True

Question 2

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

Answer 2

False

Question 3

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

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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 8

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

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

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

Question 15

Well-run organizations are able to completely avoid conflict.

Question 16

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 17

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 18

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

Question 19

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

Question 20

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

Question 21

The advantage of the educative change strategy is that implementation is quick and relatively easy.

Question 22

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

Question 23

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

Question 24

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

Question 25

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

Question 26

When the rational type change strategy is successful, strategy implementation can be relatively easy.

Question 27

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

Question 28

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 29

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

Question 30

A dual bonus system based on both annual objectives and long-term objectives is becoming common.

Question 31

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

Question 32

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

Question 33

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

Question 34

Restructuring is also called rightsizing.

Question 35

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

Question 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

On average, CEOs at Japanese companies are paid more than CEOs at American or European companies.

Question 41

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

Question 42

Strategy formulation

A) is managing forces during the action.
B) requires coordination among a few individuals.
C) is primarily an operational process.
D) requires special motivation and leadership skills.
E) all of the above

Question 43

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

Question 44

Organizational change today should be viewed as a project or event rather than as a continuous project.

Question 45

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

Question 46

Establishing objectives is a

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

Question 47

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 48

A force change strategy is plagued by low commitment and high resistance.

Question 49

Strategists should strive to create a work environment in which change is recognized as necessary and beneficial so that individuals can more easily adapt to change.

Question 50

Strategists should strive to preserve, emphasize, and build upon aspects of an existing culture that are antagonistic to a proposed strategy.

Question 51

The work/family issue is strictly a women's issue.

Question 52

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 53

Recruitment, promotion, and mentoring are ways to alter an organization's culture.

Question 54

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

Question 55

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

A) monitoring progress toward long-term objectives.
B) establishing divisional priorities.
C) allocating resources.
D) evaluating managers.
E) all of the above

Question 56

Which of the following is 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) All of the above

Question 57

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

Question 58

When attachments to a culture are severed in an organization's attempt to change direction, employees and managers often experience deep feelings of grief.

Question 59

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

Question 60

JIT significantly increases the costs of implementing strategies.

Question 61

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

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

Question 62

What is the best divisional structure 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 63

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 64

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 65

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

A) Avoidance
B) Furlough
C) Competition
D) Resource allocation
E) Conflict

Question 66

_______ 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 67

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 68

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

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

Question 69

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 70

Which organizational structure is the most widely used?

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

Question 71

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) all of the above

Question 72

Conflict in an organization is

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

Question 73

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 74

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 75

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 how resources will be allocated.
C) Structure should be designed to facilitate the strategic pursuit of a firm.
D) All of the above
E) None of the above

Question 76

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 77

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 78

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

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

Question 79

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 80

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