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 Heinz 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 Heinz would be responsible for implementing the strategy that has been formulated by Grace McKenna, who is in charge of strategy formulation. He would ensure that the resources of the firm are being used effectively to achieve the objectives set forth in the strategy. He would also be responsible for overseeing the day-to-day operations of the firm and ensuring that they are consistent with the overall strategy. Supervision of the board of directors in its monitoring role (A) would be the responsibility of the board chairman or lead independent director. Strategy formulation (C) is the responsibility of Grace McKenna. Strategy control (D) would be the responsibility of Kelly Rae, who evaluates the firm's decision making to ensure that it is consistent with the interests of equity holders.

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