Quiz. Strategy Implementation (2 pts.

each)

A- True, True
B- True, False
C- False, True
D- False, False

1. A. Firms do not prefer status quo until the firms performance declines to the point where change is
necessary.
B. structural flexibility provides the opportunity to explore competitive possibilities and then allocate
resources to activities that will shape the competitive advantages the firm will need to be successful in the
future.

2. A. The multidivisional structure is also called the SBU (Strategic Business Unit) Form.
B. In choosing a firms strategy, the company must regard the strength of reciprocal relationships
between strategy and structure.

3. A. The simple structure is a structure in which the owner-manager makes all major decisions and monitors
all activities while the staff serves as an extension of the managers supervisory authority
B. Effective strategy execution (Three Cs) should be should have effective communication, commitment
& change.

4. A. Policy reduces uncertainty in repetitive and day-to-day activities in the direction of efficient strategy
planning and management.
B. Therefore, when changing strategies, the firm should simultaneously consider the structure that will be
needed to support use of the new strategy; properly matching strategy and structure can integrate cost
leadership/differentiation strategy.

5. A. The most important research and development strategy issue concerns the relationship of R&D to
corporate leverage. The more important innovation is to the strategy of the organization, the more
implementation will require consideration of strategic issue in R&D.
B. The four types of resources are: Financial, physical, human, and external environment.

6. A. The strategic business unit (SBU) form consists The strategic business unit (SBU) form consists of three
levels: corporate headquarters, strategic business units (SBUs), and SBU divisions .
B. Modifications to the firms current strategy or selection of a new strategy call for changes to the lower-
level managers overall direction.

Identification (1 pt each)

________1. It consists of operating divisions each representing a separate business or profit center in which the
top corporate officer delegates responsibilities for day-to-day operations and business unit strategy to division
managers.

________2. It is a combination of two or more types of organizational structures, such as the projectized
organization structure and the functional organization structure.

________3. It is the assignment of available resources to various uses. It is the scheduling of activities and the
resources required.

________4. It refers to the set of strategic initiatives taken in one part of a business and it is a short-term game
plan.

________5. The reporters discussed three components of strategy implementation: Building capabale
organization, establishing strategy-supportive policies and _________.
________6. It is the core function in the business firm.

________7-8. Give 2 resource allocation tips for managers.

BONUS:
1. What has a head and a tail but no body?
2. Give the square root of 12345678987654321
3. Complete the lyrics of this famous song:
Despacito, Quiero respirar tu _ _ _ _ _ _ despacito.
4. Dog goes woof, Cat goes meow, Bird goes tweet, and mouse goes squeak.But theres one sound that
no one knows. What does the fox say? (2 points for a complete answer.)