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

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.

Answer 2

True

Question 3

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

Answer 3

True

Question 4

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

Question 5

After programs have been developed, the budget process begins.

Question 6

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

Question 7

The concept that structure follows strategy was developed by Mintzberg.

Question 8

Poor implementation is seldom blamed for strategic failure.

Question 9

An example of shared tangible resources is the alliance between Renault and Nissan to build factories that built both Nissan and Renault vehicles.

Question 10

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

Question 11

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

Question 12

Once in place, procedures seldom have to be updated.

Question 13

Those who implement strategy will be less diverse than those who formulate it.

Question 14

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

Question 15

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

Question 16

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 17

The first stage of corporate development is simple structure.

Question 18

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

Question 19

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

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

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

Question 22

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, 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 23

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

Question 24

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

Question 25

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

Question 26

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

Question 27

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

Question 28

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

Question 29

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

Question 30

In a matrix structure, functional and product forms are combined simultaneously at the same level of the organization.

Question 31

Studies of the performance of reengineering programs show overwhelming success and improved productivity.

Question 32

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

Question 33

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

Question 34

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 35

The second stage of the organizational life cycle is maturity.

Question 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

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 41

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 42

Where a change could begin refers to which aspect of the matrix of change?

A)feasibility
B)sequence of execution
C)location
D)pace and nature of change
E)stakeholder evaluations

Question 43

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 44

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 45

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 46

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 47

According to Chandler and others, which factors MUST be closely aligned or else face 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 48

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 49

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 50

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 51

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 52

Under Stage III, when various units of the company optimize its 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 53

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 54

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 55

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 56

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 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

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 59

According to Goold and Campbell, when companies coordinate the flow of products or services of one unit with that of another unit which can 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 60

According to Goold and Campbell, when combined units benefit from sharing knowledge or skills, the synergistic effect is known as

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

Question 61

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 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

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

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

Question 64

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 65

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 66

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 67

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 68

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 69

All of the following are changing structural characteristics typically found in the "old organization design" EXCEPT

A)one large corporation.
B)work/quality teams.
C)minimal training.
D)vertical communication.
E)cross-functional work teams.

Question 70

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 71

All of the following are changing structural characteristics found in the modern organization design EXCEPT

A)horizontal communication.
B)autonomous work teams.
C)extensive training.
D)value-chain team-focused job design.
E)centralized top-down decision making.

Question 72

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

A)determines internal as well as external customers
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 73

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 74

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 75

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 76

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 77

One study of North American financial firms found that the average reengineering project took ________ months.

A)23
B)15
C)12
D)36
E)6

Question 78

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 79

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 80

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.