BPL 5100 Exam Questions
with Correct Answers
traditional approach to strategic control - Answer-a sequential method of organizational
control in which 1) strategies are formulated and top management sets goals, 2)
strategies are implemented and 3) actual performance is measured against the
predetermined goal set.
- Based largely on the feedback approach(from strategic control to strategy formulation)
- Little or no action taken to revise strategies, goals and objectives until the end of the
time period
-involves lengthy time lags, often tied to the annual planning cycle
traditional approach to strategic control is most appropriate when - Answer--
Environment is stable and relatively simple
- Goals and objectives can be measured with certainty
- Little need for complex measures of performance
Informational control def - Answer-a method of organizational control in which a firm
gathers and analyzes info from the internal and external environment in order to obtain
the best fit between the organization's goals and strategies and the strategic
environment
Informational control - Answer-- Concerned with whether or not the organization is
"doing the right things" (in formulating/reformulating strategies)
- Ability to respond effectively to environmental change
Behavioral control def - Answer-a method of organizational control in which a firm
influences the actions of employees via culture, rewards, and boundaries.
Behavioral control - Answer-- Concerned with whether or not the organization is "doing
things right" in the IMPLEMENTATION of its strategy
- Appropriate balance and alignment among a firm's culture, rewards, and boundaries
Informational control question - Answer-Do the organization's goals and strategies still
fit within the context of the current strategic environment?
Ex. changes in tech, customer tastes, gov reg, industry competition
Looking at the changes in environment in revising its strategies
Contemporary control system - Answer-- Continually monitoring the internal and
external environments (information control)
,- Identifying trends and events that signal the need to revise strategies, goals and
objectives
-times lags are reduced, changes in competitive environment are detected earlier, and
org's ability to respond with speed and flexibility is enhanced.
Conclusion : goals and strategies are continuously monitored, tested, and reviewed.
Contemporary control system : Relationships between strategy formulation,
implementation and control are highly interactive - Answer-Formulate strategies < >
Strategic control (Info control)
Implement strategies <> Strategic control ( Behavioral control)
The three key control in effectively Implementing strategy are - Answer-culture, rewards,
and boundaries
Organizational culture - Answer-a system of shared values(what's important) and
beliefs(how things work) that shape a firm's people , organizational structures, and
control systems to produce behavioral norms(the way things are done around here).
Role of culture - Answer-Culture sets implicit boundaries (unwritten standards of
acceptable behavior)
- Dress
- Ethical matters
- The way an organization conducts its business
Examples : culture emphasizing product quality, customer service, innovation , etc
Motivating with Rewards and Incentives - Answer-- Powerful means of influencing an
organization's culture
- Focuses efforts on high-priority tasks
- Motivates individual and collective task performance
- Can be an effective motivator and control mechanism
reward system - Answer-policies that specify who gets rewarded and why
downside of reward system - Answer--Unmotivated if rewards dont relate to their effort.
- Subcultures may arise in different business units with multiple reward systems
- May reflect differences among functional areas, products, services and divisions
- Shared values may emerge in subculture in opposition to patterns of the dominant
culture
- Reward systems may lead to information hoarding, working at cross purposes
Successful Strategy - Answer-Long-term, simple and agreed-upon objectives
Profound understanding of competitive environment
Objective appraisal of resources
,romantic view of leadership - Answer-leader is the force in determining company's
success
external control view of leadership - Answer-external forces determine org success,
leader
has limited influence
ex, technological advancements, economic downturns, war
Strategic management - Answer-consists of the analyses, decisions, and actions an
organization undertakes in order to create and sustain competitive advantages.
Strategic management : analysis - Answer-analysis of strategic
goals(vision,mission,strategic objectives) and internal/external environments.
Strategic management :decisions - Answer-How should we compete in order to obtain
competitive advantages? (quantity/price vs quality)
Which industries to enter?
How can we create competitive advantages that are unique and hard to copy?
Operational effectiveness - Answer-performing similar activities better than competitors
(business process reengineering,just in time, benchmarking, outsourcing)
Four key attributes of strategic management - Answer-1. Strategic management is
directed toward overall organizational goals and objectives
2. Includes multiple stakeholders in decision marking
3. It requires incorporating both short term and long term perspectives(present
operating needs and vision for the future)
4. Involves the recognition of trade offs between effectiveness and efficiency.
Four key attributes of strategic management: Strategic management is directed toward
overall organizational goals and objectives - Answer-effort must be directed at what is
best for company as a whole , not just a single department.
E.g. R&D may have to create a far superior offering but the design may make the
product so expensive that market demand is minimal.
effectiveness vs efficiency - Answer-Adequate to accomplish a purpose; producing the
intended or expected result.
vs
Performing or functioning in the best possible manner with the least waste of time and
effort.
doing the right thing vs doing things right
, ambidexterity - Answer-the challenge managers face of both aligning resources to take
advantage of existing product markets and proactively exploring new opportunities.
Strategic management process - Answer-strategy analysis, formulation, and
implementation
intended strategy - Answer-strategy in which organizational decisions are determined by
only analysis.
strategic decisions are implemented in according to strategic analysis.
-intended strategy rarely survives in its original form due to unforeseen environment
events, unexpected resource restraints, changes in managerial preferences(unrealized).
realized strategy - Answer-strategy in which organizational decisions are determined by
both analysis and unforeseen events (changes in managerial preferences,
unanticipated resource constraint , unexpected environmental changes).
strategy analysis - Answer-study of firms' external and internal environments, and their
fit with organizational vision and goals.
strategy analysis includes - Answer-Analyzing :
1. Organizational goals/objectives
2. External/internal environment
3. Firm's Intellectual Assets
Analyzing Organizational goals/objectives - Answer-firm's vision, mission, and strategic
objectives form a hierarchy of goals that range from broad statements of intent for
competitive advantage to specific, measurable strategic objectives
Analyzing the External environment of the firm - Answer-Monitor and scan the general
environment and industry environment(competitors)
Analyzing the Internal environment of the firm - Answer-analyzing strengths and
relationships among activities that constitute a firm's value chain can be a means of
uncovering potential sources of competitive advantages.
strategy formulation - Answer-decisions made by the firms regarding investments,
commitments, and other aspects of operations that create and sustain competitive
advantage.
coming up with business level(how to compete in a given business to gain advantage),
corporate level(what businesses should we compete in and how can these businesses
be managed to achieve synergy), and international strategies.
Business level strategy - Answer-cost leadership/differentiation
