Deck 10: Strategy Implementation: Organizing and Structure

Question 1

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

A) soda.
B) iPhones.
C) beer.
D) yogurt.
E) reusable totes.

Answer 1

B

Question 2

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

A) pooled negotiating power.
B) shared know-how.
C) coordinated strategies.
D) economies of scale or scope.
E) new business creation.

Answer 2

D

Question 3

Those who implement strategy will probably be a much more diverse set of people than those who formulate it.

Answer 3

True

Question 4

When Kimberly-Clark introduced Huggies disposable diapers against Procter & Gamble's market leading Pampers,they were using the offensive tactic known as a(n)

A) flanking maneuver.
B) frontal assault.
C) encirclement.
D) bypass attack.
E) guerilla attack.

Question 5

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 6

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 7

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?

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

Question 8

What is strategy implementation? What questions must strategy makers consider to begin the implementation process?

Question 9

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 10

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/tactics, 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 11

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 12

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

Question 13

The term used in strategic implementation that describes a statement of activities or steps needed to accomplish a plan and whose use is to make the strategy action-oriented is

A) a program.
B) a guideline.
C) a budget.
D) a course of action.
E) a procedure.

Question 14

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.

Question 15

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

Question 16

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 17

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.

Question 18

Poor implementation is often blamed for strategic failure.

Question 19

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 20

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) a program.
B) a guideline.
C) a budget.
D) a course of action.
E) a procedure.

Question 21

What is the last real check a firm has on the feasibility of its selected strategy?

A) budget planning
B) standard operating procedure development
C) exit strategy development
D) program development and execution
E) tactic developments

Question 22

Which of the following is not an offensive tactic?

A) frontal assault
B) flanking maneuver
C) guerilla warfare
D) raising structural barriers
E) encirclement

Question 23

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

Question 24

Which market location tactic is being used when a company attempts to cut the market out from under the established defender by offering a new type of product that makes the competitor's product unnecessary?

A) flanking maneuver
B) bypass attack
C) encirclement
D) guerrilla warfare
E) frontal assault

Question 25

Successful late movers tend to be large firms with considerable resources and related experience.

Question 26

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

Question 27

What is synergy? According to Goold and Campbell,what are the six forms it can take?

Question 28

After programs have been developed,the budget process begins.

Question 29

The first company to manufacture and sell a new product or service is referred to as a pioneer.

Question 30

Microbreweries that make beer for sale for local customers use guerilla warfare against national brewers like Anheuser-Busch.

Question 31

An offensive tactic usually takes place in the firm's own current market position.

Question 32

Which market location tactic did Texas Instruments use when they avoided direct competition with Intel by developing cell phones,medical devices,and consumer electronics rather than computers?

A) flanking maneuver
B) bypass attack
C) encirclement
D) guerrilla warfare
E) frontal assault

Question 33

Once in place,procedures seldom have to be updated to reflect changes in technology or strategy.

Question 34

Which defensive tactic did P&G use when they test marketed their liquid bleach product in an attempt to scare Clorox into retreating from their detergent market?

A) lower the inducement for attack
B) bypass attack
C) increase expected retaliation
D) flanking maneuver
E) raise structural barriers

Question 35

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

Question 36

When Yamaha entered the market with a broader range of pianos,keyboards,and other musical instruments,it was using which offensive tactic?

A) flanking maneuver
B) frontal assault
C) encirclement
D) bypass attack
E) guerilla attack

Question 37

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

Question 38

Which defensive tactic was used by Southwest Airlines when deliberately keeping their prices low and constantly investing in cost-reducing measures?

A) guerilla warfare
B) lower the inducement for attack
C) encirclement
D) raise structural barriers
E) increase expected retaliation

Question 39

Which market location tactic is being used when a company goes head to head with its competitor matching in every category from price to promotion to distribution channel?

A) flanking maneuver
B) bypass attack
C) encirclement
D) guerrilla warfare
E) frontal assault

Question 40

Which of the following is not true of defensive tactics?

A) Defensive tactics aim to lower the probability of attack.
B) Defensive tactics divert attacks to less threatening avenues.
C) Defensive tactics lessen the intensity of an attack.
D) Defensive tactics reduce short-term profitability to ensure long-term profitability.
E) Defensive tactics include a frontal assault.

Question 41

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

Question 42

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 43

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,there is a crisis of

A) autonomy.
B) confidence.
C) clarity.
D) differentiation.
E) leadership.

Question 44

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 45

In a Stage I company,if the entrepreneur falters,the company usually flounders.This is labeled by Greiner as a crisis of

A) autonomy.
B) confidence.
C) clarity.
D) differentiation.
E) leadership.

Question 46

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 47

Objectives that 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 48

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 ability.
E) lack of resources.

Question 49

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 50

The concept that structure follows strategy was developed by Alfred Chandler.

Question 51

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.

Question 52

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 53

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

Question 54

A candidate for a fourth stage in corporate development is the

A) conglomerate structure.
B) functional structure.
C) divisional structure.
D) matrix structure.
E) hybrid structure.

Question 55

In Stage III of a corporation,when various units of the company optimize their sales and profits without regard to the overall corporation,the organization may be experiencing a crisis of

A) leadership.
B) control.
C) autonomy.
D) decentralization.
E) empowerment.

Question 56

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 57

According to Chandler and others,which factors MUST be closely aligned to avoid 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 58

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 59

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 60

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 61

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 62

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

Question 63

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 64

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

Question 65

Which structure simultaneously combines functional and product forms at the same level of the organization?

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

Question 66

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 67

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 68

In Stage IV,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 69

The second stage of the organizational life cycle is maturity.

Question 70

Stage IV of a corporation could involve a pressure-cooker crisis in which employees in these collaborative organizations will eventually grow emotionally and physically exhausted from the intensity of teamwork and the heavy pressure for innovative solutions.

Question 71

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

Question 72

The first stage of corporate development is the simple structure.

Question 73

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

Question 74

How can a corporation's life cycle be extended?

Question 75

What are the four stages of corporate development?

Question 76

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

Question 77

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

Question 78

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 79

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

Question 80

Discuss Chandler's conclusion concerning strategy.