SpandoCorp is a diversified firm that makes industrial, military and consumer products from Spandex. SpandoCorp manages each of the businesses that it operates in as a separate division and treats each as a True profit-and-loss center. In this organization, Grace McKenna is responsible for deciding which set of businesses SpandoCorp will operate in and for encouraging behavior that is consistent with this strategy, Wells Tucker provides information to McKenna about the internal and external environments that she uses in her decision making, and Kelly Rae is one of the individuals who is responsible for evaluating the firm's decision making to ensure that it is consistent with the interests of equity holders.
-If Todd Hienz were the chief operating officer for SpandoCorp, his responsibilities would include
A) supervision of the board of directors in its monitoring role.
B) strategy implementation.
C) strategy formulation.
D) strategy control.

Question

Quizplus · Accepted Answer

As the chief operating officer, Todd Hienz would be responsible for implementing the strategies decided by Grace McKenna, who is responsible for deciding the set of businesses that SpandoCorp will operate in. This would involve overseeing the day-to-day operations of each division and ensuring that they are aligned with the overall strategy of the company. The supervision of the board of directors in its monitoring role (A) would not fall under Hienz's responsibilities, as this is typically the role of the CEO. Strategy formulation (C) would also fall under the purview of Grace McKenna as the head of the organization. While strategy control (D) is important, this would likely be the responsibility of someone in a specialized role, such as Kelly Rae who is responsible for evaluating the firm's decision making.

SpandoCorp Is a Diversified Firm That Makes Industrial, Military and Consumer