Question 1

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?

Accepted Answer

The problem described in choice C suggests that the time allocated was adequate, which implies that the issue was not with the time allocation itself, but rather with how it was used. This does not align with the typical implementation problems where time is often inadequate.

Question 2

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

Accepted Answer

A crisis of leadership occurs when the entrepreneur's skills and drive are no longer enough to lead and manage the company effectively, resulting in a decline in performance and potential failure of the company.

Question 3

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?

Accepted Answer

Shared know-how, also known as knowledge and skills transfer, occurs when two firms bring their unique expertise and capabilities together for mutual benefit. In this case, P&G was able to gain insight from Gillette's understanding of male consumers while also sharing their knowledge of female consumers, leading to a synergistic effect on both companies.

Question 4

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

Accepted Answer

A program is a statement of activities or steps needed to accomplish a single-use plan, making the strategy action-oriented.

Question 5

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

Accepted Answer

Unfavorable economic conditions are external factors that can prevent a corporation from progressing, unlike the other options which are internal issues.

Question 6

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

Accepted Answer

In Stage III, when units focus on their own goals without considering the corporation's overall objectives, it leads to a crisis of control, where the central management struggles to maintain coherence and alignment across the organization.

Question 7

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

Accepted Answer

A corporation with functional specializations and successful operation in one industry is typically a Stage II company. Stage I companies are typically led by an entrepreneurial founder, while Stage III, IV, and V companies are characterized by more complex structures and strategies, such as expansion into new markets or industries.

Question 8

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

Accepted Answer

The answer of Who typically implements strategy in large, multi-industry...

Question 9

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

Accepted Answer

The synergistic effect of coordinating the flow of products or services of one unit with another unit to reduce inventory is known as economies of scale or scope.

Question 10

A candidate for a fourth stage in corporate development is

Accepted Answer

The answer of A candidate for a fourth stage in...

Question 11

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

Accepted Answer

Stage I companies are characterized by the presence of an entrepreneurial spirit, where objectives are personal and subjective. These companies are usually in their early stages of development and are focused on establishing a product or service in the market. They are also characterized by a lack of formal structures and processes, with decision-making often centralized with the founder or small group of individuals.

Question 12

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

Accepted Answer

Planning in a Stage I corporation tends to be short term and reactive, rather than long range and progressive.

Question 13

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

Accepted Answer

Chandler and others argue that for organizational performance to be successful, the factors of strategy (what the organization wants to achieve), structure (how the organization is designed and organized), and environment (the external conditions in which the organization operates) must be closely aligned. This ensures that the organization is working towards its goals in an efficient and effective manner, taking into account both internal and external factors. Poor alignment of these factors can lead to poor organizational performance.

Question 14

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

Accepted Answer

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 synergy. Synergy is the concept where the total value of the corporation is greater than the sum of the individual divisions. This is because the different divisions can work together to increase efficiency and effectiveness, leading to higher profits overall.

Question 15

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

Accepted Answer

Having management from all levels participate in the strategy formulation process can provide valuable insights into the work that needs to be done and can help gain cooperation in the implementation of the strategy. It is not a legal requirement or a mandate under collective bargaining agreements, but it may be part of managers' job responsibilities to provide input. Boosting self-image and ego is not a primary reason for involving all levels of management in strategy formulation.

Question 16

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

Accepted Answer

The innovative bottle design of Ecologic Brands was influenced by a pulp tray used to ship iPhones, showcasing how packaging solutions in one industry can inspire sustainable designs in another.

Question 17

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

Accepted Answer

Alfred Chandler's conclusion was that structure follows strategy, meaning that a company's structure should be designed to support and align with its overall strategy.

Question 18

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

Accepted Answer

A crisis of autonomy occurs when lower-level managers feel they need more decision-making freedom than top management is willing to give them. This can be particularly challenging in a functionally structured corporation where managers may be responsible for overseeing multiple product lines or divisions. If they feel they don't have the autonomy to make important decisions, they may struggle to effectively manage these different areas. A crisis of confidence, on the other hand, would typically refer to a loss of faith in the company (either internally or externally), while a crisis of clarity might refer to confusion around goals or strategies. A crisis of differentiation would arise if the company was struggling to differentiate itself from competitors, and a crisis of leadership could refer to a lack of effective leadership at any level of the organization.

Question 19

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

Accepted Answer

Procedures are a set of sequential steps or techniques that provide detailed instructions on how to complete a task or job. They are used in strategic implementation to ensure consistency and efficiency in performing tasks or jobs within an organization. Programs, guidelines, budgets, and courses of action are also important elements in strategic implementation, but they do not specifically describe the sequential steps or techniques needed to accomplish a task or job.

Question 20

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

Accepted Answer

According to Goold and Campbell, the forms of synergy are shared know-how, coordinated strategies, pooled negotiating power, and economies of scale or scope. Value chain creation is not explicitly mentioned as a form of synergy in their work.

Quiz 9: Strategy Implementation: Organizing for Action