Deck 9: Strategy Implementation: Organizing for Action

Question 1

According to a survey of Fortune 500 firms, the most frequently cited problem with implementing a strategic change is that implementation took more time than originally planned.

Answer 1

True

Question 2

The concept that structure follows strategy was developed by Alfred Chandler.

Answer 2

True

Question 3

The first stage of corporate development is the simple structure.

Answer 3

True

Question 4

Successful late movers tend to be large firms with considerable resources and related experience.

Question 5

Many of the people in the organization who are crucial to successful strategy implementation probably have little to do with the development of the corporate and business strategy.

Question 6

Standard operating procedures typically detail the various activities that must be carried out to complete a corporation's programs.

Question 7

Research generally supports Chandler's proposition that structure follows strategy as well as the reverse proposition that structure influences strategy.

Question 8

The greatest strengths of a Stage I corporation are its flexibility and dynamism.

Question 9

Strategy formulation is the sum total of the activities and choices required for the execution of a strategic plan.

Question 10

Firms in the same industry seldom organize themselves in similar ways.

Question 11

Strategy formulation and strategy implementation should be considered as two sides of the same coin.

Question 12

Once in place, procedures seldom have to be updated to reflect changes in technology or strategy.

Question 13

The purpose of a program or tactic is to make the strategy action-oriented.

Question 14

After programs have been developed, the budget process begins.

Question 15

The greatest weakness of a Stage II corporation is that all its eggs are in one basket.

Question 16

One of the goals to be achieved in strategy implementation is synergy between and among functions and business units.

Question 17

Those who implement strategy will probably be a much more diverse set of people than those who formulate it.

Question 18

Poor implementation is often blamed for strategic failure.

Question 19

Any change in corporate strategy is very likely to require some sort of change in the way an organization is structured and in the kind of skills needed in particular positions.

Question 20

The matrix of change was designed to help managers decide how quickly change should proceed, in what order changes should take place, whether to start at a new site, and whether the proposed systems are stable and coherent.

Question 21

Lean Six Sigma incorporates the statistical approach of Six Sigma with the lean manufacturing program originally developed by Toyota.

Question 22

The corporation's life cycle can be extended by managerial and product innovation.

Question 23

In order to implement reengineering, Hammer suggests that those who use the output of the process perform the reengineering process.

Question 24

As industries move from being multidomestic to more globally integrated, multinational corporations are increasingly switching from the geographic-area to the product-group structure.

Question 25

Asking "What would Walt do" at Disney years after his death could present blocks to needed change.

Question 26

The network structure becomes most useful when the environment of a firm is unstable and is expected to remain so.

Question 27

Microbreweries that make beer for sale for local customers, use guerilla warfare against national brewers like Anheuser-Busch.

Question 28

Stage III (Divisional Structure)is the point when the entrepreneur is replaced by a team of managers who have functional specialization.

Question 29

Job enlargement is the movement of workers through several jobs to increase variety.

Question 30

A crisis of control may develop in the Stage III divisional structure.

Question 31

The use of SBUs may result in a red tape crisis in which the corporation has grown too large and complex to be managed through formal programs, and rigid systems and procedures take precedence over problem-solving.

Question 32

The second stage of the organizational life cycle is maturity.

Question 33

Studies of the performance of reengineering programs show clear, consistent, and overwhelming evidence of success and improved productivity.

Question 34

The sum total of the activities and choices required for the execution of a strategic plan is known as

A) strategic formulation.
B) environmental scanning.
C) strategy implementation.
D) evaluation and control.
E) strategic development.

Question 35

Pioneered in the automobile industry, the matrix structure was developed to combine the flexibility of the functional structure with the stability of the product formulation.

Question 36

Stage 4 of international development is a multinational corporation with global emphasis - denationalizing its operations.

Question 37

Stage IV of a corporation could involve a pressure-cooker crisis.

Question 38

Which statement below is NOT true of strategy implementation?

A) It is the process by which strategies and policies are put into action through the development of programs/tactics, budgets, and procedures.
B) Implementation is often considered after strategy has been formulated.
C) Strategy implementation is the sum total of the activities and choices required for the execution of a strategic plan.
D) Strategy implementation should be kept separate and distinct from that of strategic management.
E) Strategy formulation and strategy implementation are two sides of the same coin.

Question 39

The geographic-area structure allows the company to introduce and manage a similar line of products around the world.

Question 40

When using a network structure, many corporate activities are outsourced.

Question 41

The term used in strategic implementation that describes a statement of activities or steps needed to accomplish a single-use plan and whose use is to make the strategy action-oriented is

A) program.
B) guidelines.
C) budgets.
D) course of action.
E) procedures.

Question 42

When the return on investment for each division of a corporation is greater than what the return would be if each division were an independent business, that corporation is said to have achieved

A) synergy.
B) a leveraged buyout.
C) its hurdle rate.
D) the status of a true conglomerate.
E) Stage III.

Question 43

It is advisable to have management from all levels participate in the strategy formulation process

A) because it is a legal requirement.
B) because collective bargaining agreements often mandate worker participation.
C) to gain an insight as to what work needs to be done and to gain cooperation in the implementation of the strategy.
D) because it is part of their job responsibilities to provide input regarding their respective area of expertise.
E) because it helps boost the self-image and ego of all managers to be asked for advice.

Question 44

According to Goold and Campbell, when companies coordinate the flow of products or services of one unit with that of another unit to reduce inventory, the synergistic effect is known as

A) pooled negotiating power.
B) shared know-how.
C) coordinated strategies.
D) economies of scale or scope.
E) new business creation.

Question 45

The innovative bottle design of Ecologic Brands was influenced by a pulp tray used to ship

A) soda.
B) iPhones.
C) beer.
D) yogurt.
E) reusable totes.

Question 46

Under Stage III, when various units of the company optimize their sales and profits without regard to the overall corporation, the organization may be experiencing a

A) crisis of leadership.
B) crisis of control.
C) crisis of autonomy.
D) crisis of decentralization.
E) crisis of empowerment.

Question 47

An external block preventing a corporation from moving from one stage to another is

A) unfavorable economic conditions.
B) strategic myopia.
C) organizational inflexibility.
D) lack of operating efficiency.
E) lack of managerial resources.

Question 48

According to Chandler and others, which factors MUST be closely aligned to avoid the consequences of poor organizational performance?

A) management, workforce, and customers
B) operations, marketing, and finance
C) strategy, structure, and environment
D) rules, goals, and tasks
E) hierarchy, contacts, and integrators

Question 49

According to Goold and Campbell, which of the following is NOT one of the forms that synergy can take?

A) shared know-how
B) coordinated strategies
C) value chain creation
D) pooled negotiating power
E) economies of scale or scope

Question 50

A corporation run by a team of managers with functional specializations and which successfully operates in one industry is said to be a

A) Stage I company.
B) Stage II company.
C) Stage III company.
D) Stage IV company.
E) Stage V company.

Question 51

Which form of synergy was demonstrated when P&G purchased Gillette to combine P&G's knowledge of the female consumer with Gillette's knowledge of the male consumer?

A) shared tangible resources
B) shared know-how
C) coordinated strategies
D) economies of scale
E) new business creation

Question 52

The term used in strategic implementation that describes a system of sequential steps or techniques that describe in detail how a particular task or job is to be done is

A) program.
B) guidelines.
C) budgets.
D) course of action.
E) procedures.

Question 53

Objectives which are personal and subjective and are typified by an entrepreneurial spirit describe what stage of corporate development?

A) Stage I company
B) Stage II company
C) Stage III company
D) Stage IV company
E) Stage V company

Question 54

When the people managing diversified product lines in a functionally structured corporation need more decision-making freedom than top management is willing to delegate to them, this type of crisis is called

A) a crisis of autonomy.
B) a crisis of confidence.
C) a crisis of clarity.
D) a crisis of differentiation.
E) a crisis of leadership.

Question 55

A survey of 93 Fortune 500 firms found ten major problems that over half of the group experienced when they attempted to implement a strategic change.Which of the following is NOT one of the implementation problems?

A) ineffective coordination of activities
B) uncontrollable external environmental factors
C) time allocated for implementation was adequate, but was used inappropriately
D) poor definition of key implementation tasks and activities
E) crises that distracted attention away from implementation

Question 56

When the drive of the entrepreneur is no longer enough to keep the Stage I company from floundering, this type of crisis is called

A) a crisis of autonomy.
B) a crisis of confidence.
C) a crisis of clarity.
D) a crisis of differentiation.
E) a crisis of leadership.

Question 57

Alfred Chandler, known for his study of large American corporations, concluded that

A) organic structure is best for firms in a changing environment.
B) mechanistic structure is best for firms in a changing environment.
C) structure follows strategy.
D) strategy follows structure.
E) strategic business units are the key to effective decentralization.

Question 58

Which of the following is NOT true of a Stage I corporation?

A) It is typified by the entrepreneur.
B) The entrepreneur tends to make all the important decisions personally.
C) The Stage I corporation has little formal structure.
D) Planning tends to be long range and progressive.
E) The greatest strength of a Stage I corporation is its flexibility and dynamism.

Question 59

Who typically implements strategy in large, multi-industry corporations?

A) the board of directors
B) top management
C) middle management
D) first level management
E) everyone in the organization

Question 60

A candidate for a fourth stage in corporate development is

A) conglomerate structure.
B) strategic business units.
C) divisional structure.
D) matrix structure.
E) hybrid structure.

Question 61

There are three distinct phases in the development of a matrix structure.Which phase occurs when both the functional and product structures become permanent in a true dual-authority structure?

A) temporary cross-functional task forces
B) true dual-authority structure
C) product/brand management
D) immature matrix
E) mature matrix

Question 62

The radical redesign of business processes to achieve major gains in cost, service, or time is called

A) total quality management.
B) reengineering.
C) management by objectives.
D) action planning.
E) statistical process control.

Question 63

During Stage II of the organizational life cycle, the structure most likely to be implemented is

A) entrepreneur-dominated.
B) functional management.
C) decentralization into profit or investment centers.
D) structural surgery.
E) dismemberment of structure.

Question 64

Which structure simultaneously combines functional and product forms at the same level of the organization?

A) strategic business units
B) functional structure
C) network structure
D) divisional structure
E) matrix structure

Question 65

Which structure is often called a virtual organization?

A) strategic business units
B) functional structure
C) divisional structure
D) network structure
E) matrix structure

Question 66

Stage III in the organizational life cycle is the

A) birth stage.
B) growth stage.
C) maturity stage.
D) decline stage.
E) death stage.

Question 67

During Stage V of the organizational life cycle, the popular strategy is

A) concentration in a niche.
B) horizontal and vertical growth.
C) liquidation or bankruptcy.
D) concentric and conglomerate diversification.
E) profit strategy followed by retrenchment.

Question 68

What term refers to the study of individual tasks in an attempt to make them more relevant to the company and to the employee(s)?

A) position matching
B) functional duties
C) job design
D) task conversion
E) responsibility shift

Question 69

Which structure is described as a "non-structure" by its virtual elimination of inhouse business functions?

A) strategic business units
B) functional structure
C) network structure
D) divisional structure
E) matrix structure

Question 70

Which of the following is NOT a principle of reengineering identified by Hammer?

A) puts the decision point where the work is performed
B) organizes around outcomes, not tasks
C) treats geographically dispersed resources as though they were centralized
D) links parallel activities
E) captures information once at the source

Question 71

Which of the following is NOT descriptive of a network structure?

A) The network organization is a series of independent firms or business units linked together through design, production, and marketing.
B) Independent inventors and entertainment companies often use the network structure.
C) The network structure typically is located in a large, single building or areas with many work projects in operation on the site.
D) The network structure provides an organization with increased flexibility and adaptability to cope with rapid technological changes.
E) The network structure is particularly suited to coping with the shifting patterns of international trade and competition.

Question 72

The movement of workers through several jobs to increase variety is referred to as

A) job combination.
B) job rotation.
C) job enrichment.
D) job enlargement.
E) job motivation.

Question 73

Which of the following is NOT descriptive of the matrix structure?

A) People from functional units are often assigned on a temporary basis to product units.
B) Although employees often work on one or more product units, they maintain only one direct supervisor.
C) The matrix structure is very useful when the external environment is very uncertain.
D) The matrix structure can produce conflicts revolving around duties, authority, and resource allocation.
E) The matrix structure was developed to combine the stability of functional structure with the flexibility of the product form.

Question 74

There are three distinct phases in the development of a matrix structure.Which is the first phase to occur usually when a new product line is being introduced?

A) temporary cross-functional task forces
B) true dual-authority structure
C) product/brand management
D) immature matrix
E) mature matrix

Question 75

Stage V in the organizational life cycle is the

A) birth stage.
B) growth stage.
C) maturity stage.
D) decline stage.
E) death stage.

Question 76

When Kimberly-Clark introduced Huggies disposable diapers against Procter & Gamble's market leading Pampers, they were using the offensive tactic known as a(n)

A) flanking maneuver.
B) frontal assault.
C) encirclement.
D) bypass attack.
E) guerilla attack.

Question 77

The program which incorporates the statistical approach of Six Sigma with the lean manufacturing program originally developed by Toyota is known as

A) reengineering.
B) Lean Six Sigma.
C) job enlargement.
D) just-in-time.
E) flexible manufacturing.

Question 78

An organization which is composed of cells that can operate alone but that can interact with other cells to produce a more potent and competent business mechanism is referred to as a(n)

A) reengineered organization.
B) virtual organization.
C) modular organization.
D) network organization.
E) ongoing organization.

Question 79

What is the additional phase in the organizational life cycle that may occur sometime during the maturity or decline stages?

A) pause phase
B) acquisition phase
C) recovery phase
D) temporal displacement phase
E) revival phase

Question 80

When Yamaha entered the market with a broader range of pianos, keyboards, and other musical instruments, it was using which offensive tactic?

A) flanking maneuver
B) frontal assault
C) encirclement
D) bypass attack
E) guerilla attack