Question 1

Why is the classical approach to strategy development limited?

Accepted Answer

The classical approach to strategy development involves analysis and evaluation of data before making a strategic decision. Strategic decisions are therefore planned in advance. This is potentially limiting because it may set the organization on a course of action which may not turn out to be the best course of action. In other words, the classical approach is not opportunistic.

Question 2

What are the benefits of the incremental approach to strategy development?

Accepted Answer

The incremental approach to strategy development involves making small changes to the organization over a period of time. It involves trial and error and experimentation. It is a low risk approach to strategy in the short term but in the long term the organization may not have changed enough to keep in step with the external environment. Incremental change does not change the underlying organizational culture which means it causes minimal disruption to day to day operations.

Question 3

What gives individuals and groups power in an organization?

Accepted Answer

French and Raven (1960) suggest that power can be gained by reward, coercion, legitimate authority, expertise and referent power (where people want to identify with that person). There are many other authors in this area who identify various sources of power. It is important to realize that power in an organization isn't always based on formal sources of power.

Question 4

What can we learn from discourse theory in understanding strategy?

Accepted Answer

The answer of What can we learn from discourse theory...

Question 5

What did Goffman (1968) mean by 'total institutions'?

Accepted Answer

Goffman (1968) described 'total institutions' as places where individuals are isolated from the wider society and lead an enclosed, formally administered life, characterized by highly routinized and inflexible structures.

Question 6

An organizational sub-culture can be defined as

Accepted Answer

Sub-cultures within an organization are groups that align with and tolerate the dominant organizational culture, even if they have their own distinct characteristics.

Question 7

A relatively new perspective on strategy has emerged in response to the criticism that much of strategy literature is divorced from the real work of strategy. What is this perspective known as?

Accepted Answer

The answer of A relatively new perspective on strategy has...

Question 8

What can we learn about strategy making if we look at it from a discourse point of view?

Accepted Answer

From a discourse point of view, strategy making is analyzed in terms of language, communication, and the narratives constructed, highlighting the influence of language.

Question 9

Hickson et al (1971) propose a contingency view of power. What does this mean?

Accepted Answer

Hickson et al (1971) suggest that power is contingent on various factors and does not necessarily align with seniority, meaning individuals can hold power regardless of their position in the hierarchy.

Question 10

Simon, Herbert and March argue that strategists cannot make rational strategic decisions because they are

Accepted Answer

Simon, Herbert, and March argue that strategists are "boundedly rational," meaning their decision-making is limited by the information they have, their cognitive limitations, and the finite amount of time they have to make decisions.

Question 11

Cyert and March (1963) believe that strategists will not necessarily choose the best option. Which term do they use to describe this behaviour?

Accepted Answer

Cyert and March (1963) use the term "satisficing" to describe the behavior where decision-makers settle for a satisfactory solution rather than the optimal one, due to limitations in information, time, and cognitive capacity.

Question 12

Which term does Mintzberg (1994) use to describe the classical school of strategy?

Accepted Answer

The answer of Which term does Mintzberg (1994) use to...

Question 13

Which of the following statements most closely agrees with Chandler's findings about the link between strategy and structure?

Accepted Answer

Chandler's findings suggest that firms adapt their organizational structure to fit the strategy they are pursuing, indicating that structure follows strategy.

Question 14

Peters and Waterman (1982) wrote a very popular management book on the subject of

Accepted Answer

Peters and Waterman's book "In Search of Excellence" focuses on organizational culture and the practices of successful companies.

Question 15

Prahalad and Hamel (2005) refer to the concept of 'strategic intent'. What is strategic intent?

Accepted Answer

Strategic intent is a set of aspirations that unites the whole organization, focusing on a shared vision and long-term goals that drive the company forward.

Question 16

What is meant by 'value engineering'?

Accepted Answer

Value engineering is the systematic application of organized creative techniques and ideas to achieve essential functions at the lowest overall cost.

Question 17

It is argued that strategic decisions get shaped by 'dominant coalitions'. What do dominant coalitions have that enables them to shape strategic decisions?

Accepted Answer

Dominant coalitions have power, which enables them to influence and shape strategic decisions within an organization.

Question 18

French and Raven (1960) define five ways that power can be gained. One of these is 'referent' power. How is referent power defined?

Accepted Answer

Referent power is defined as the extent to which others want to identify with or be like the person who holds the power, often due to admiration or respect.

Question 19

When viewing strategy as a behavioural process that is also shaped by power and politics, we can deduce that organizations are likely to

Accepted Answer

Organizations tend to repeat past behavior because power and politics often reinforce existing structures and practices, making it challenging to implement changes or new strategies.

Question 20

What does the Darwinian view of strategy say about strategic decision making?

Accepted Answer

The Darwinian view of strategy suggests that the market environment determines which firms survive, making strategic decision-making less impactful compared to market forces.

Quiz 10: Organisational Models and Approaches to Strategy