Questions And Answers
According to the minicase, which aspect of strategy formulation and implementation appeared
to be the root of Microsoft's failure to commercialize any category-defining products or services?
a-Illusion of control
b-Top-down strategic planning
c-Resource-allocation process (RAP)
d-Planned emergence strategy process
e-Strategic initiative - ANS b
Which shortcoming of the top-down strategy process is reflected in Microsoft's prediction that
forays into such markets as online search and cloud-based office software would prove
successful because of the success of its classic Office Suite?
a-The future cannot be known.
b-Decision-making responsibilities rest solely with the office of the CEO.
c-Thinking about strategy is separate from doing it.
d-Top-down strategic planning works relatively well in environments that do not undergo
frequent change.
e-Strategy formulation is separated from strategy implementation. - ANS a
In 2005, no Microsoft employee felt Microsoft should be competing against Apple's iPod and
iTunes, but then-CEO Steve Ballmer did. More than a year later, Microsoft introduced the digital
music player, Zune, which failed. Which shortcoming of the top-down strategy process does this
example represent?
a-Strategy formulation is separated from strategy implementation.
b-Top-down strategic planning works relatively well in environments that do not undergo
frequent change.
c-Information flows only one way: top down.
d-Decision-making responsibilities rest solely with the office of the CEO.
e-Strategy formulation is separated from strategy implementation. - ANS d
Knowing some of the pitfalls Microsoft has faced under its former CEO Steve Ballmer, which
approach to strategic management best fits the new CEO's plan to reinvent the company with a
new "mobile first, cloud first" strategy?
a-Top managers should execute a plan that most reflects the current reality, but then implement
an alternate plan should that reality change.