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Location on Chapter 7 > Chapter Quiz
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Date/Time February 16, 2011 at 4:14 PM
Submitted: (UTC/GMT)

1. Which of these is true about strategy implementation?

Your Answer: It is positioning forces before the action.

Correct Answer: It is primarily an operational process.

Incorrect. The correct answer is it is primarily an operational process.

2. In organizations that do not use a strategic-management approach to

decision making, _________ is often based on political or personal factors.

Your Answer: policy making

Correct Answer: resource allocation

Incorrect. The correct answer is resource allocation.

3. _______ can be defined as a disagreement between two or more parties on

one or more issues.

Your Answer: Avoidance

Correct Answer: Conflict

Incorrect. The correct answer is conflict.

4. Perhaps the most important limitation of a divisional structure is that it:

Your Answer: streamlines staff services too much.

Correct Answer: is costly.
 Incorrect. This is not a disadvantage of divisional structure. The correct
answer is that it is costly.

5. The most widely used structure is the ________ type.

Your Answer: SBU

Correct Answer: functional

Incorrect. The correct answer is functional.

6. Which of the following is not one of the ways divisional structures can be
organized?

Your Answer: By product

Correct Answer: By suppliers

Incorrect. The correct answer is by suppliers.

7. A _____ structure leads to short-term and narrow thinking that may

undermine what is best for the firm as a whole.

Your Answer: functional

Correct.

8. ________ is concerned more with employee and customer well-being than

shareholder well-being.

Your Answer: Reengineering

Correct.

9. A change strategy that attempts to convince people the change is to their

personal advantage is:

Your Answer: rational.

Correct.
10. _______ can thrust managers into roles that emphasize counseling and
coaching over directing and enforcing.

Your Answer: JIT

Correct Answer: Cross-training

Incorrect. The correct answer is cross-training.

11. Strategy implementation is managing forces during the action.

Your Answer: True

Correct.

12. Nothing could be more detrimental to strategic management and

organizational success than for resources to be allocated inconsistent with
priorities indicated by annual objectives.

Your Answer: False

Correct Answer: True

Incorrect. Nothing could be more detrimental to strategic management and

organizational success than for resources to be allocated inconsistent with
priorities indicated by approved annual objectives.

13. Defusion is exemplified by exchanging members of conflicting parties so that

each can gain an appreciation of the other's point of view.

Your Answer: True

Correct Answer: False

Incorrect. Defusion can include playing down differences between conflicting

parties while accentuating similarities and common interests, compromising
so that there is neither a clear winner nor loser, resorting to majority rule,
appealing to a higher authority, or redesigning present positions.

14. The structural format for developing objectives and policies can significantly
impact all other strategy-implementation activities.

Your Answer: False

Correct Answer: True

Incorrect. The structural format for developing objectives and policies can
 significantly impact all other strategy-implementation activities.

15. Functional structure design violates the unity-of- command principle.

Your Answer: True

Correct Answer: False

Incorrect. Matrix structure design violates the unity- of-command principle.

16. Defusion includes such actions as ignoring the problem in hopes the conflict
will resolve itself or physically separating the conflicting individuals.

Your Answer: True

Correct Answer: False

Incorrect. Avoidance includes such actions as ignoring the problem in hopes

the conflict will resolve itself or physically separating the conflicting
individuals.

17. Medium-sized firms tend to be divisionally structured, whereas large firms

tend to use an SBU (strategic business unit) or matrix structure.

Your Answer: True

Correct.

18. Communication is often the best in a functional structure.

Your Answer: True

Correct Answer: False

Incorrect. Communication is often not as good in a functional structure.

19. The educative change strategy presents information to convince people of the
need to change.

Your Answer: True

Correct.
20. There is a much higher tolerance for adversarial relations or friction at work
in Mexico as compared to the United States.

Your Answer: True

Correct Answer: False

Incorrect. There is a much lower tolerance for adversarial relations or friction

at work in Mexico as compared to the United States.

21. Contrast strategy formulation and strategy implementation. Provide specific

examples of how they differ.
Your Answer:

Successful strategy formulation does not guarantee successful strategy

implementation. Strategy formulation is positioning forces before the action.
Implementation is managing forces during the action. Formulation focuses on
effectiveness, while implementation focuses on efficiency. Formulation is
primarily intellectual, while implementation is primarily operational.
Formulation requires good intuitive and analytical skills, while implementation
requires special motivation and leadership skills. Formulation requires
coordination among a few individuals, while implementation requires
coordination among many. Students should refer to the nature of strategy
implementation on pages 228-229.

22. What is the purpose of annual objectives? Why are they essential to strategy
implementation?
Your Answer:

Establishing annual objectives is a decentralized activity that directly involves

all managers in an organization. Active participation in establishing annual
objectives can lead to acceptance and commitment. Annual objectives are
essential for strategy implementation because they represent the basis for
allocating resources, are a primary mechanism for evaluating managers, are
the major instrument for monitoring progress toward achieving long-term
objectives, and establish priorities for the organization, divisions, and
departments. Students should refer to annual objectives on pages 230-231.

23. Why is resource allocation so important? How are strategy, structure, and
resources related?
Your Answer:

Resource allocation is a central management activity that allows for strategy

execution. Strategic management enables resources to be allocated according
 to priorities established by annual objectives. Nothing could be more
detrimental to strategic management than for resources to be allocated in
ways inconsistent with priorities indicated by approved annual objectives.
Changes in strategy often require changes in structure because structure
dictates resource allocation. Students should refer to resource allocation on
pages 233-234.

24. What is the matrix structure? When is it appropriate to use this type of
organizational structure?
Your Answer:

The matrix structure is the most complex of all designs because it depends
upon both vertical and horizontal flows of authority and communication. It
can result in higher overhead and dual lines of budget authority, dual sources
of reward and punishment, shared authority, and a need for extensive and
effective communication. It is widely used in many industries. It facilitates
the use of specialized personnel, equipment, and facilities. For this structure
to be effective, organizations need participative planning, training, clear
mutual understanding of roles and responsibilities, excellent internal
communication, and mutual trust and confidence. See the matrix structure on
page 239.

25. What are some reasons for resistance to change? How can this threaten
successful strategic implementation?
Your Answer:

Resistance to change can be considered the single greatest threat to

successful strategy implementation. Resistance regularly occurs in
organizations. People often resist because they do not understand what is
happening or why changes are taking place. Resistance can emerge at any
stage or level of the strategy-implementation process. Students should refer
to the section on managing resistance to change on page 246 for more
information.