CHAPTER 12 - STRATEGY IMPLEMENTATION
CHAPTER 12
Strategy implementation
Part I Opening Case and Illustration Capsules
OPENING CASE
Changing the network at Benetton
QUESTIONS
Q1 What possible risks do you see with the network structure established by
Benetton?
a
Although the network structure gave Benetton great flexibility, it did limit the
amount of control over the process, distribution and product. The longer the
supply line and the more independent each group within it, the less control that
is available to the parent company. Increased independence of the external
groups through the adoption of the ‘production pole’ gave even greater
freedom to sources outside the main Benetton company. It does, however, as
pointed out in the capsule spread the risk factors across the group.
Q2 How can these risks be managed effectively?
a
Recognising that the system they had been operating was no longer relevant,
particularly in light of aggressive market penetration strategies of other
companies, Benetton has adopted a new approach. The new retail strategy
adopted by the company is in line with that which has been proved successful
by competitors. Its new retail strategies as outlined in the illustration capsule
include:
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
enlarging its retail outlets, where possible, to enable displays of the whole
range of Benetton (or Sisley) products, garments, shoes and accessories;

where such expansion is not possible, focussing each retail outlet on one
market segment or product (only men's products, for example, or only
women's products, or only knitwear or underwear);

opening large retail outlets (7,535 square feet to 21,528 square feet) on the
main shopping streets and in the main shopping districts of big cities.
ILLUSTRATION CAPSULE 12.1
Management restructuring at the NAB
Q1 What impact do you think a series of major appointments such as those contained
in this illustration capsule would have on an organisation? How can negative
effects be managed effectively?
When major changes take place in organisational structures there is a shift in
corporate culture and also in the actual structure of the organisation. In this case,
redistribution of control to individual countries has superseded the previous global
approach which was employed.
There are two issues involved here with the movement towards decentralisation and a
country of origin based approach there is not only the appointment of new personnel
to be considered but also the roles that they will play. In order to keep negative effects
to a minimum it is important that personnel and clients are kept well informed. The
four questions in the text regarding customer requirements and restructuring should
also be considered when answering this question:
1. What value needs to be delivered to the customer to create
sustainable competitive advantage?
2. How should tasks be grouped within the organisation to deliver this
value most effectively?
3. What linkages are necessary between each major grouping?
4. What support systems are needed?
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ILLUSTRATION CAPSULE 12.2
The values and behaviours of the Departments of the Parliament
of Victoria
NO QUESTIONS
ILLUSTRATION CAPSULE 12.3
New cultural challenges for managers
Q1 On the basis of this illustration capsule, what culture is required in Australian
organisations that want to compete effectively in a globalised industry?
a
Australian organisations that want to be successful in the global economy need
to have a structure within the organisation that can respond to rapid change. It
also needs to have the capability to develop and nurture innovation. As is
pointed out in the article, new companies have less problems in this area than
those that already have an established culture. However, if the original culture
is such that it can be adapted and built on providing growth through
innovation it will be stronger and more adaptable.
Goffee and Jones make the point that there is no single ’right’ culture but have
built a theory of culture on two main dimensions that of the human
relationship aspect and the tight focus on business.
Whilst it is at times tempting for management to adopt an off with the old and
on with the new approach much of the history of the organisation failures as
well as success lie in not only knowing the old culture but using it to avoid
repeating old errors.
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ILLUSTRATION CAPSULE 12.4
Cynicism and strategy implementation
Q1 Which aspects of staff cynicism can be influenced by organisations and which are
beyond their control?
a
In answering both of the question on this illustration capsule the following list
should be taken into account and examined in light of the cynicism issues:

Inadequate or inappropriate resources

Inappropriate structure

Application of the incorrect systems

Mismanagement of the culture/ shared values

Inadequate risk management

Poor performance management.
In answering this question students should refer to the listings within the
illustration capsule they may also be able to identify others which they have either
observed or been personally involved in.
Q2 What can an organisation do to reduce staff cynicism about strategy
implementation?
a
In the illustration capsule there is a comprehensive but not exhaustive list of
reasons that strategy implementation fails. Students should select from and
enlarge on the difficulties specifically related to staff cynicism. In this
question also there is a great deal of scope for group discussion based on
student experiences.
ILLUSTRATION CAPSULE12.5: BHP Billiton is no feather bed
Q1 How would you go about managing the culture at BHP Billiton, applying the
principles contained in this chapter?
a
The answer to this question will vary considerably with students adopting a
variety of answers often consistent with their own beliefs. The most important
factor is that their opinions should be able to be substantiated by using the
material based on this chapter.
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Q2 What impact does the global nature of the company have on culture management?
Would you support a single set of shared values or different values in each
country?
a
Once students have made a decision as to their support for a single set of
shared values of the values are dependent on the country involved they will
need to make their case in line with the issues under discussion.
Globalisation has created many problems for organisations that try to impose
an inappropriate culture on organisations outside the country of origin. This
becomes particularly difficult when there is a strong existing culture within an
organisation involved in take over or merger operations. Whilst there needs to
be consistency in the goals of an organisation these goals can be realised in
terms of the cultural norms of the country in which they operate. The
provision of clearly acceptable practices and goals can be used as the basis and
the methods of achieving these goals can have sufficient leeway to meet the
needs of each of the global arms of the organisation.
Part II Discussion Questions
1. What are the advantages and disadvantages of adopting a participative approach to
the allocation of corporate resources?
While it is true that participation in budgetary decisions improves the commitment
of employees to the implementation of activities contained within that budget,
there are also some disadvantages. Proper participation in the process requires
motivated and educated employees who understand the entire process and how it
fits in to the overall strategy of the organisation. Also, participation often results
in slower decision making, although the final decisions are implemented better
because barriers to implementation are removed through the participative process.
Ultimately, the decision regarding participation is a question of trade-offs. Also,
the question of management style within the organisation is relevant here. Does
the culture of the organisation encourage participation? Does the organisation
consider strategy choice and implementation at the same time (do managers
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establish the strategy and other employees implement it)? If the underlying
culture of the organisation is inappropriate, then participation in the budgetary
process is unlikely to work.
2. Under what conditions is structure more likely to follow strategy and vice versa?
In large organisations that are currently performing well the strategy is likely to be
one of continuation. Under these conditions, after a period of time, strategy tends
to follow structure because the strategy is not changing and the structure is driving
the implementation process. On the other hand, where an organisation is in crisis
and requires strategy reorientation, then structure tends to follow the new strategic
direction. Finally, in small organisations where the organisation structure is very
flexible, structure follows strategy very easily because of this lack of rigidity.
3. What involvement should senior management have in strategy implementation?
It can be argued that senior managers should have considerable involvement in
strategy implementation because it is difficult to formulate a strategy without
considering the implications for implementation. Therefore, in conducting
strategic analysis it is necessary for senior managers to become intimately
involved in the resource, systems and structure issues which surround the
implementation task. On the other, it can also be argued that senior managers
do not have adequate time or skills to become intimately involved in
implementation issues. Such managers are particularly skilled at analysing
complex issues and making decisions at a conceptual level. Therefore, not only
are they less skilled in matters of implementation but they could be seen to be
treading on the turf of lower level managers if they become involved in
implementation issues. It can also be argued that senior managers, including the
Board of Directors, do not have the time to get involved in the details of
budgeting procedures, programs, rules and methods, operating schedules and so
on. As a general rule, it is probably true that senior managers should consider
implementation to the extent that they are satisfied that the organisation
possesses the implementation skills necessary to make the strategy work. But
dabbling in implementation itself is something they should avoid.
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4. How should an organisation decide whether to apply a historical or competitive
parity approach to resource allocation at the corporate level?
The historical approach is common where an organisation is performing
satisfactorily and no change, or no significant change, is envisaged for the current
strategy. On this basis, the allocation of resources in previous years is a good
indication of the way in which they should be allocated for the coming year. The
competitive parity approach is most often implemented where an organisation
operates in a highly competitive market and is vying for market position. This
requires careful analysis of the allocation of resources in competitor organisations
in order to ensure that relative position is not lost. Overall, it is probably best that
a combination of all three approaches is used. Each can be weighted according to
the needs of the individual organisation and the contingencies with which it is
faced.
5. What type of organisation structure would best suit a highly diversified
conglomerate organisation?
Most organisations of this nature would be structured around SBU's. This enables
the organisation to group together similar products and markets in order to take
advantage of whatever synergy is possible. It also simplifies the management task
of head office staff. That is, they are required to manage fewer groups of
divisions or companies rather than a multitude of separate entities. Head office
staff can also develop some expertise in the industries around which each SBU is
based and can run the group as a portfolio more successfully.
6. What organisational values do you think would be appropriate for an international
oil company?
Obviously, as for all profit based organisations, the company would need to have
specified values with regard to profit performance. Given the nature of an oil
company, it is important that its values also extend to environmental protection
(oil is an environmentally dangerous commodity as numerous oil spills have
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demonstrated). Also, because the organisation is an international one it needs to
abide by international codes of conduct, especially with regard to operating in
underdeveloped or developing countries. Exploitation of resources must be
carefully balanced against profitability and the integrity of management in
establishing this balance is very important. Another value which the organisation
should instil in its employees is that of an awareness of energy alternatives
7. Do you think that the employment of a number of professionals in an organisation
(such as accountants, engineers or hospital staff) would have a significant impact
on the culture of that organisation and the way that strategic management is
practised? Explain.
Many organisations employ large numbers of professional staff and this has a
significant impact on the culture of the organisation. Professional people can
complicate the strategic management process in a number of ways. Predominant
amongst these is what is known as organisational—professional conflict (OPC).
Here, the norms and values of the profession may dominate over the more general
product, market, technology, and performance requirements of the organisation.
Professionals are more likely to define their job in terms accepted by their
profession rather than in terms of the requirements of the organisation. This split
of allegiance between the profession and the organisation can create weaker
commitment to the organisation and result in less focus on accomplishing the
goals of the organisation.
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8. What structure would you recommend for the following organisations?


a university

a local council

a multinational pharmaceutical company

an advertising agency
universities usually operate on a matrix structure. This is because they need to
group academic experts together in discipline groups (that is by function) to
generate effective research output. They also need to present degree programs
which cut across these discipline groups. Hence a discipline/degree program
matrix is commonly used as the preferred structure.

local councils commonly employ a functional structure. This is because they are
mandated to perform specific functions for their local communities and it is easier
to accomplish this by grouping people and resources according to the functions
which must be performed. There are always some corporate level activities as
well such as project management, finance and human resource management.

a multinational pharmaceutical company would normally employ a composite of a
regional and functional (or divisional) structure. The regional structure is
necessary to cater for different customers, competitors and operating conditions in
each of the national markets within which it operates. The functional/divisional
component of the structure enables the company to group together specialists in
key aspects of the pharmaceutical business (for example, pharmaceutical research
and development, marketing, and production).

advertising agencies are frequently structured around customer segments (or, in
some cases, individual customers). That is, teams are established to focus on
customers in different industries because the requirements of these customers
differ significantly with regard to advertising and promotion. In addition, some
elements of the structure may be clustered around different advertising media
(television, radio, print media and so on).
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9. What roles does 'cynicism' play in hindering the implementation of strategy?
In answering this question students should refer to illustration capsule 12.5 and
relate these points to the causes of strategic failure which follow:

Inadequate or inappropriate resources

Inappropriate structure

Application of the incorrect systems

Mismanagement of the culture/ shared values

Inadequate risk management

Poor performance management.
10. What are some of the challenges associated with integrating planning,
performance management and accountability in organisations?
In developing a strategic plan there are many difficulties which can impede its
success. One of these is the isolation of parts of the plan, if not in reality, certainly
in the minds of the people expected to implement the plan. It is for this reason that
careful adherence to a structure of planning plays a valuable part. Starting from
the vision there is a need, then to develop methods which will move these through
to a plan which can be operationalised.
A good starting place is for the organisation to:

Know what targets it wants to achieve

Know its current position in relation to these targets

Know the resource implications of achieving the targets, and

Make people accountable for achieving specified targets.
Follow this through with stating the current year priorities specified in the
business plan which contain four categories of requirement:
a. Key projects that must be completed in the current year
b. Operational improvements that must be implemented
c. Leadership/management improvements that will support the strategy
d. Capabilities/skills that need improvement to implement the strategy.
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11. If you were the CEO of a bank operating in one State in Australia, how would you
analyse the risk associated with becoming a national competitor?
In many cases organisations operating in particular regions have specific attributes
which are specific to the region. In determining the ability of the strengths of the
State bank to compete in terms of a national approach they need to determine which
functions they perform that are transferable, how their product will compete with
other current national banks.
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Part III Multiple Choice Questions
1.
2.
Strategy implementation involves:
a.
establishing budgets
b.
devising systems
c.
allocating resources
d.
all of these
e.
a & b only
The operational level of decision making is characterised by:
a.
lower level managers setting annual objectives and policies
b.
the CEO developing a company mission
c.
the Board of Directors establishing corporate goals
d.
business managers interpreting the mission into operational objectives
e.
all of the above
3. The strategy implementation challenge is:
a.
to manage the culture of the organisation
b.
to change the structure of the organisation in order to align it with the
strategy
c.
to institute new rules, methods and procedures
d.
to develop, acquire and utilise appropriate skills and resources
e.
all of the above
4. Which of the following is not a core activity associated with implementing
strategy?
a.
Structuring an organisation capable of carrying out the strategy
b.
Securing commitment to the chosen strategy
c.
Surveying employees on how they think organisational effectiveness can
be enhanced
d.
Exerting strategic leadership to improve the way in which the strategy is
carried out
e.
Linking the reward structure of the organisation tightly to the
achievement of the strategy
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5. Resource planning should begin:
a.
at the top of the organisation
b.
at the lower levels of the organisation
c.
at middle management
d.
with an internal audit
e.
with an external audit
6. A large diversified organisation has grouped its product lines in terms of electrical
products, industrial products, household products and medical products. This is an
example of what type of structure?
a.
Functional
b.
Geographic
c.
Customer
d.
Matrix
e.
Strategic business unit
7. If an organisation believes it will not be able to manage a necessary change in
culture it can:
a.
ignore the culture
b.
revert back to its previous culture and strategy
c.
manage around the culture
d.
a and b only
e.
a and c only
8. Which of the following are common methods of allocating resources at the
corporate level?
a.
On the basis of the strategic 'task' facing each organisational unit
b.
On the basis of the historical allocation of resources
c.
According to the need to match the allocation of resources made by
competitors
d.
all of the above
e.
a and c only
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9. An organisation which decides to implement a new strategy by increasing its
marketing and sales staff on the basis of expected demand for a new product and
the average number of marketing and sales staff used by firms in the industry, is
employing:
a.
the full commitment approach to resource allocation
b.
the competitive parity approach to resource allocation
c.
the historical approach to resource allocation
d.
a combination of the task and competitive parity approaches to resource
allocation
e.
a combination of the full commitment and task approaches to resource
allocation
10. Which of the following is not important in the process of implementing a
strategy?
a.
Developing appropriate organisational systems
b.
Developing a skills profile of potential competitors
c.
Acquiring and utilising the necessary skills and resources
d.
Developing the appropriate organisation structure
e.
Managing the organisation's culture in the required fashion
11. Changes in strategy often require changes in the way an organisation is structured
because:
a.
structure dictates how resources will be distributed
b.
structure dictates authority over strategic projects
c.
structure dictates how strategies will be implemented
d.
structure dictates how objectives will be established
e.
structure dictates strategy
12. Which of the basic organisational structures is considered the most complex?
a.
Functional
b.
Product
c.
Strategic business unit
d.
Matrix
e.
Geographic
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13. When an organisation has a few major customers and many different services are
provided to these customers, which type of structure is best?
a.
Functional structure
b.
Divisional structure by customer
c.
Divisional structure by product
d.
Divisional structure by process
e.
Divisional structure by geographic area
14. The major disadvantage of a functional structure is:
a.
it makes accountability difficult to determine
b.
it minimises career development opportunities
c.
it results in empire building
d.
a and c only
e.
all of the above
15. A product form of structure is most effective when:
a.
special emphasis needs to be placed on specific products
b.
an organisation offers only a few major products
c.
different marketing approaches are required for various products
d.
a and b only
e.
all of the above
16. A geographic structure is most appropriate when:
a.
organisations have similar branch facilities located in widely dispersed
areas
b.
an organisation offers only a limited number of products or services
c.
strict control and attention to product lines is needed
d.
an organisation has many highly skilled managers
e.
when different skills are needed to produce/market products in each
geographic area
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17. Allowing employees to participate in decisions regarding how to implement
change causes:
a.
a decrease in managers' and employees' resistance to change
b.
conflict among senior managers
c.
a fall in employee turnover
d.
overworked employees
e.
a strengthening of organisational culture
18. Strategy implementation often fails because of:
a.
a lack of appropriate controls
b.
resistance to change at operational levels
c.
changed responsibilities not made clear
d.
all of the above
e.
a and c only
19. If an organisation does not wish to attempt culture change, it can:
a.
expect lower performance than its major competitors
b.
change the strategy to fit the existing culture
c.
manage around the existing culture
d.
overcome the problem by recruiting and training new staff
e.
b and c
20. Where large culture change is necessary within a relatively short time period
organisations:
a.
are frequently in this position because of management inertia in the past
b.
will more than likely go out of business in the near future
c.
will probably need to replace the CEO and other key managers
d.
a and c only
e.
all of the above
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21. Which of the following would not be appropriate for management to utilise in
attempting to change corporate culture?
a.
Role modelling
b.
Recruiting new staff
c.
Training staff
d.
Revising the strategy
e.
Communicating new values
22. Large organisations with a homogeneous culture will usually experience:
a.
relative ease in implementing culture change
b.
great difficulty in implementing culture change
c.
greater fit between culture and strategy than small, heterogeneous
organisations
d.
great difficulty in implementing a new strategy
e.
a and c
23. All of the following are elements of organisation culture, except:
a.
executive capabilities
b.
critical success factors
c.
organisational values
d.
style of management
e.
organisation risk profile
24. With regard to corporate culture:
a.
critical success factors and organisational values are unrelated
b.
critical success factors should be derived from organisational values
c.
values should be derived from critical success factors
d.
critical success factors and organisational values form the core of
corporate culture
e.
critical success factors are more important to culture than organisational
values
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25. Corporate culture is:
a.
the means by which human resources are motivated to implement a
strategy
b.
the psychographic and demographic characteristics of the organisation
which determines employee behaviour
c.
the collective attitudes, beliefs and shared values of employees in the
organisation
d.
the measure of affiliation of employees to the organisation
e.
c and d
26. When implementing a strategy, managers in Western societies tend to focus on:
a.
staff, skills and style
b.
style, strategy and structure
c.
structure, strategy and systems
d.
shared values, systems and skills
e.
strategy, systems and style
27. According to Herzberg:
a.
hygiene factors do not motivate employees but their absence causes
dissatisfaction
b.
hygiene factors motivate employees when motivating factors are absent
c.
motivating factors can be implemented with or without hygiene factors
d.
motivating factors and hygiene factors cannot operate together
e.
a and b
28. The basic types of controls found in organisations are:
a.
output controls
b.
technical controls
c.
screening controls
d.
steering controls
e.
all except b
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28. Delegation of authority by a manager to a subordinate often does not occur when
it should because:
a.
managers cannot delegate responsibility totally so it is safer not to
delegate
b.
managers lack the ability to delegate effectively
c.
managers lack confidence in the ability of subordinates
d.
a and c only
e.
all of the above
29. Which of the following is not an accepted form of authority which managers can
use in implementing a strategy?
a.
Reward power
b.
Coercive power
c.
Expert power
d.
Organisational power
e.
Referent power
30. Line authority refers to:
a. supervisors who are in charge of a production or assembly line
b. managers who can give expert advice to all areas of the organisation
c. managers who have direct control over the activities of subordinates
d. managers at the same level of authority across the organisation
e. the authority of the CEO over the core functions of the organisation
31. Staff authority is:
a.
the authority of a person whose function it is to provide expert advice or
service
b.
the authority of the person or department responsible for staff training and
development
c.
the authority of the staff recruitment officer
d.
the collective influence of the non-managerial employees in the
organisation
e.
the authority of those who have direct control over the activities of
subordinates
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32. Organisational systems which support strategy implementation can be categorised
as:
a.
systems to improve competitive strategies
b.
systems to coordinate activities
c.
systems to motivate employees
d.
systems to target markets more effectively
e.
b and c only
33. Managerial hierarchy refers to:
a.
the structure of management jobs within the organisation
b.
the explicit responsibility and authority structure in the organisation
c.
the senior management team
d.
the participants in the strategic planning management exercise
e.
the executives in control of strategy assessment
34. A narrow span of management results in:
a.
a tall organisation structure
b.
weak organisational communications
c.
managers with too many subordinates to control effectively
d.
a low cost management structure
e.
none of the above
35. Which of the following is not a managerial 'tool' for the implementation of a
strategy?
a.
Budget allocations
b.
Environmental analysis
c.
Organisational structure
d.
Organisational leadership
e.
Organisational performance appraisal systems
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36. The most common type(s) of budgets include:
a.
cash budgets
b.
expense budgets
c.
sales revenue budgets
d.
all of these
e.
only a and c
37. Which of the following should not be considered in allocating resources to a new
strategy?
a.
Current and projects interest rates
b.
The availability of cash within the total corporate portfolio
c.
The skills and competencies of staff involved in the new strategy
d.
The past performance of the division/unit implementing the new strategy.
38. A publishing company is organised around its newspaper operations, academic
books and fiction. This is an example of which type of structure?
a.
Functional
b.
Geographic
c.
Product
d.
Matrix
e.
Strategic business unit
39. A construction company organises its operations around discrete projects which
are supported by expertise in design management, accounting and finance,
materials/equipment supply and personnel. This is an example of which type of
structure?
a.
Functional
b.
Geographic
c.
Product
d.
Matrix
e.
Strategic business unit
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40. An assembler and distributor of household electrical products is organised around
production/assembly, marketing/sales, research and development, accounting and
finance, and personnel activities. This is an example of what type of structure?
a.
Functional
b.
Geographic
c.
Product
d.
Matrix
e.
Strategic business unit
41. Organisational structures are flattening because:
a.
information technology has enabled the computerisation of many
administrative tasks
b.
to compete effectively cost reduction through the removal of
organisational layers has been necessary
c.
to get all employees closer to customers organisational layers have to be
removed
d.
all of the above are true
e.
only a and b are true
42. A network organisation structure is:
a.
a non-hierarchical structure based on customer focussed teams
b.
a means of connecting external and internal coalitions
c.
a team based hierarchy
d.
an organisation where everyone is well connected with external networks
e.
a non-hierarchical matrix organisation
43. Network organisational structures overcome the following weaknesses of
traditional structures:
a. functional specialisation prevents an holistic perspective on the
organisation
b.
people at the top of the organisation are always more important than those
lower down
c.
each person must have only one superior
d.
network structures overcome all of the above weaknesses
e.
network structures overcome a and c only
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44. As a general rule which of the following source should the organisational culture
be formed from?
a.
the vision of the organisation
b.
the mission of the organisation
c.
the kind of human organisation staff want to create
d.
both a and b
e.
both a and d
45. Which of the following is not a principle which should be applied in the process
of culture management?
a.
role modelling
b.
building consensus
c.
advancement
d.
recruitment
e. none of the above
46. In large organisations that are performing relatively well the corporate culture is
most likely to be:
a.
easy to change
b.
moderately easy to change
c.
extremely difficult to change
d.
neither more or less difficult than in smaller organisations
e.
neither more or less difficult than in organisations that are not performing
well
47. If the current culture is likely to be difficult to modify the optimum approach in
the short term is to:
a.
conform to the current culture
b.
adjust the new strategy to make the approach more acceptable
c.
take the option to just make changes and let the organisation cope
d.
expand on an incremental basis
e.
both b and d
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48.In terms of strategy implementation what are the two essential elements of risk
management?
a. Prevention and avoidance
b.
Prevention and recovery
c.
Recovery and asset building
d.
Recovery and avoidance
e.
Management and recovery
49. Which of the following is not a step in risk management?
a.
Identify the key elements of the new strategy – those that must be
achieved if the strategy is to succeed
b.
For each identified element, nominate the type of risk that might be
encountered, for example financial loss, resource unavailability, customer
service, and so on.
c.
Decide the level of risk (high, medium or low)
d.
Specify what action should be taken to prevent this risk form occurring
(risk management strategy)
e.
None of the above
50. As a general rule the failure of specific strategies can be attributed to which of the
following?
a.
Inadequate or inappropriate resources
b.
Inappropriate structure
c.
Application of the incorrect systems
d.
Mismanagement of the culture/ shared values
e.
All of the above
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CHAPTER 12 - STRATEGY IMPLEMENTATION
Part IV True False Questions
1. The task approach to resource management requires each organisational unit to
prepare its own case
2. The historical approach to resource management relies on making yearly
objective assessments
3. When interest rates are high the organisation tends to maintain its level of
resourcing
4. If the organisation is pursuing a strong diversification strategy extra resources are
given to SBUs
5. Involvement of the heads of each functional areas is usual in determining
distribution of resources
6. Responsibility for allocating resources to specific plans is the responsibility of
managers
7. Functional structure refers to the distribution of people on the basis of skills
8. Matrix structure refers to the distribution of people on the basis of skills
9. Changes in organisational structure should be implemented on the basis of
improving effectiveness
10. The network structure is an example of a non-hieratical structure
11. Improved communications negate the need for strict hieratical structures
12. Management by formula allows an organisation to learn better
13. High-level managers have more knowledge than low-level workers
14. Within a network organisation each team is responsible for developing its own
external network
15. Australian Universities can be described as network organisations
16. A clear chain of command avoids organisational conflict
17. Authority is limited to upper level managers
18. Groups within the organisation that can only advise rather than order are referred
to as having staff authority
19. The most commonly encountered management controls are budgets
20. Corporate culture is a myth designed by management consultants
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21. Corporate culture is an inherent part of any organisation
22. Collaborative management relate to the idea that strategies should be developed
top down and bottom up
23. Role modeling is an important feature of organisational culture
24. Strategy often fails because of inappropriate controls
25. Decision avoidance is common in ‘reactive’ organisations
26. An appropriate reward system is essential to organisational success
27. Managing around the organisational culture is an acceptable approach
28. Changing the culture in small organisations is almost always more difficult than
managing change in larger organisations
29. It is sometimes necessary to modify the strategy to fit the culture
30. It is impossible to integrate corporate, business and individual performance plans
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CHAPTER 12 - STRATEGY IMPLEMENTATION
Answers to Chapter 12
Multiple Choice Questions
1. d
2. a
3. e
4. a
5. e
6. e
7. d
8. d
9. b
10. c
11. d
12. b
13. d
14. e
15. e
16. a
17. d
18. e
19. d
20. d
21. b
22. a
23. c
24. c
25. c
26. a
27. e
28. e
29. d
30. c
31. a
32. e
33. b
34. a
35. b
36. d
37. c
38. c
39. d
40. a
41. d
42. a
43. d
44. d
45. e
46. c
47. e
48. b
49. e
50. e
True False Questions
1. T
2. F
3. F
4. F
5. T
6. T
7. T
8. F
9. T
10. T
11. T
12. F
13. F
14. T
15. T
16. T
17. F
18. T
19. T
20. F
21. T
22. F
23. T
24. T
25. T
26. T
27. T
28. F
29. T
30. F
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