Question 1

The third step in the change process is to evaluate the effects of the changes in strategy on organizational performance.

Accepted Answer

The third step in the change process typically involves implementing the changes. Evaluation of the effects of these changes on organizational performance usually comes after the implementation phase.

Question 2

At the corporate level, changing strategy even in seemingly trivial ways will not significantly affect a company's behavior.

Accepted Answer

Changing strategy at the corporate level can have significant effects on a company's behavior. Strategic decisions can impact everything from resource allocation to organizational structure, and ultimately determine a company's direction and goals. Therefore, strategic changes should be carefully considered and implemented to ensure that they align with the company's overall mission and objectives.

Question 3

The second step in the change process is for strategic managers to recognize the need for change.

Accepted Answer

The first step in the change process is for strategic managers to recognize the need for change. Recognizing the need for change is essential before any steps can be taken to implement those changes.

Question 4

The emphasis in bottom-up change is on employee participation and keeping people informed about the situation so that uncertainty is minimized.

Accepted Answer

Bottom-up change involves involving employees in the change process and keeping them informed to reduce uncertainty and resistance.

Question 5

Restructuring usually involves flattening the organizational hierarchy and downsizing the work-force.

Accepted Answer

Restructuring often involves reducing the number of levels in the organizational hierarchy and reducing the number of employees, also known as downsizing.

Question 6

Reengineering is a process in which managers focus on business processes underlying the value-creation process.

Accepted Answer

Reengineering involves rethinking and redesigning business processes in order to achieve significant improvements in performance and effectiveness. Its focus is on the underlying processes that create value for customers, rather than just making incremental improvements to existing processes.

Question 7

Managers seldom have trouble determining that something is going wrong in their organization.

Accepted Answer

Managers often face challenges in identifying problems within their organizations due to factors like lack of clear information, complex organizational structures, and the subtle nature of some issues that may not be immediately apparent.

Question 8

When companies promote CEOs from within, they get the benefits of both inside information and external perspective.

Accepted Answer

Promoting CEOs from within provides the benefit of inside information and familiarity with the company's culture and operations, but it does not inherently provide an external perspective, which typically comes from bringing in leadership from outside the organization.

Question 9

Business processes are the responsibility of one organizational function.

Accepted Answer

Business processes involve multiple functions and departments within an organization. They require collaboration and communication between different stakeholders to ensure efficiency and effectiveness. No single organizational function can take sole responsibility for all business processes.

Question 10

Obstacles to change can be found at four levels in the organization: functional, corporate, divisional, and business unit.

Accepted Answer

Obstacles to change can be found at multiple levels within an organization, including functional (departmental), corporate (overall organization), divisional (if applicable), and business unit (if applicable).

Question 11

Individual resistance reinforces the tendency of each function and division to oppose changes that may have uncertain effects on it.

Accepted Answer

Individual resistance refers to employees or managers who resist changes that may affect their work or position within the organization. This resistance can reinforce the tendency of functions and divisions to oppose changes that may have uncertain effects on them, as everyone is looking out for their own interests. Therefore, individual resistance can make it even harder to implement change within an organization.

Question 12

Strategic change refers to the movement of a company away from its present state toward some desired future state to increase competitive advantage and profitability.

Accepted Answer

Strategic change involves a deliberate and purposeful shift in a company's direction to achieve long-term success by improving its competitive position and financial performance. It often involves significant changes to the organization's core objectives, structure, systems, and processes, as well as its products or services, marketing and sales strategies, and resource allocation. Strategic change requires careful planning, execution, monitoring, and adjustment, and may involve various stakeholders, including employees, customers, suppliers, investors, regulators, and communities.

Question 13

Even when companies have been forced to change frequently, managers often do not have the ability to handle change easily.

Accepted Answer

The answer of Even when companies have been forced to...

Question 14

Bottom-up change is generally slower than top-down change.

Accepted Answer

Bottom-up change involves grassroots efforts and can take longer to gain momentum compared to top-down change which is driven by those in positions of power and authority.

Question 15

Reengineering and TQM are both approaches to improving effectiveness, but they are incompatible with each other.

Accepted Answer

Reengineering and Total Quality Management (TQM) are both approaches to improving effectiveness, but they are not incompatible with each other. While reengineering focuses on overhauling the existing processes and systems to achieve significant improvements, TQM focuses on continuous improvement in a more incremental and gradual manner by involving all employees in the improvement process. Therefore, organizations can adopt both approaches depending on their specific needs and goals.

Question 16

Although internal managers may have the most experience or knowledge about a company's operations, they may lack perspective because they are too close to the situation.

Accepted Answer

Internal managers are often heavily involved in day-to-day operations, which can make it difficult for them to see the bigger picture or consider alternative strategies. This lack of perspective can limit their ability to make well-informed decisions.

Question 17

A business process is any activity that takes place within a functional area (i.e., marketing, operations, R&D, etc.).

Accepted Answer

A business process is a set of activities or tasks that, once completed, will accomplish an organizational goal. It can span multiple functional areas, not limited to just one.

Question 18

Managers are the only ones that can recognize that there is a gap between desired company performance and actual performance.

Accepted Answer

While managers may be the first to notice a performance gap, they are not the only ones who can recognize it. Other employees, customers, and stakeholders may also notice and report on a gap between desired and actual performance. It is important for organizations to have open communication channels and encourage feedback from all parties to identify and address performance gaps effectively.

Question 19

Change is difficult at the divisional level if divisions are highly interrelated, because a shift in one division's operations affects other divisions.

Accepted Answer

When divisions are highly interrelated, a change in one division's operations can have ripple effects on other divisions, making it difficult to implement change at the divisional level.

Question 20

According to Hamel and Prahalad, a core competency is a central value creation capability of a company, this is, a core skill.

Accepted Answer

Hamel and Prahalad defined a core competency as a central value creation capability of a company, which is essentially a core skill or strength.

Quiz 8: Strategic Change: Implementing Strategies to Build and Develop a Company