MGMT 449 EXAM 3 VERIFIED STUDY GUIDE
Strategy Execution - Answers - 1. operations driven
2. involves management of people and business process
3. requires whole management team
4. can take years to develop as a real proficiency
5. requires determined, committed to change, actions and performance
10 basic tasks of strategy execution - Answers - 1. Staff the org with the right people
2. Develop the resources and capabilities
3. Establish a strategy-supportive org structure
4. Exercise strong leadership
5. Instill corporate culture that promotes good strategy execution
6. Allocate sufficient resources
7. Institute policies and procedures
8. Adopt best practices and business processes
9. Install information and operating systems that support strategy
10. Tie rewards and incentives directly to achievement of strategy
Why does strategy typically fail? - Answers - Poor execution
2 Best Signs of a good strategy - Answers - Meeting/Beating performance targets and
value chain activities operating at excellence
3 Key Actions - Answers - Staffing
Developing
Structuring
Staffing - Answers - Assembling a strong management team
Developing - Answers - Renew, upgrade, and revise resources and capabilities to
match chosen strategy
Structuring - Answers - create strategy-supportive organization capable of good strategy
execution
Actions for Staffing the Organization - Answers - Putting together a strong management
team of talented activist
Strong Management Team - Answers - Planners
Implementers
Executers
Planners - Answers - ask tough questions and figure out what needs to be done
, Implementers - Answers - select, manage, and lead the right people
Executors - Answers - turn decisions into actions that drive the changes that produce
sustainable competitive advantage
Approaches to building and strengthening capabilities - Answers - 1. Develop
capabilities internally
2. Acquire capabilities through mergers and acquisitions
3. Access capabilities via collaborative partnerships
Organizational Structure - Answers - Comprises the formal and informal arrangement of
tasks, responsibilities, lines of authority, and reporting relationships for the firm
Structure is aligned with strategy when - Answers - 1. design contributes to the creation
of value for customers
2. parts are aligned with one another and also matched to the requirements of the
strategy
3. lowers op. costs through lower bureaucratic costs and operational efficiencies
Ensuring structure follows strategy - Answers - 1. Deciding which value chain activities
to perform internally or outsource
2. Aligning structure with strategy
3. Determining how much authority to delegate
4. Facilitating collaboration or strategic alliances
Simple Structure - Answers - Line-and-Staff
Straight line down from CEO
Functional Structure - Answers - Departmental or Unitary
A unit dedicated to each topic, i.e. finance, marketing, etc
Multi-divisional Structure - Answers - Divisional or M-Form
Occurs when a company jumps to being a diversified company from a simpler company.
Each division has each a functional structure
Ex: General Electric
Matrix Structure - Answers - Composite or Combination
Direct reporting lines to multiple units, departments, or divisions
Clears out hierarchy and allows a lower level person to speak directly to the VP of a
department and make fast decisions.
Ex: Google
Centralized Control - Answers - Lower level employees have little decision making
abilities, only upper management makes decisions
Strategy Execution - Answers - 1. operations driven
2. involves management of people and business process
3. requires whole management team
4. can take years to develop as a real proficiency
5. requires determined, committed to change, actions and performance
10 basic tasks of strategy execution - Answers - 1. Staff the org with the right people
2. Develop the resources and capabilities
3. Establish a strategy-supportive org structure
4. Exercise strong leadership
5. Instill corporate culture that promotes good strategy execution
6. Allocate sufficient resources
7. Institute policies and procedures
8. Adopt best practices and business processes
9. Install information and operating systems that support strategy
10. Tie rewards and incentives directly to achievement of strategy
Why does strategy typically fail? - Answers - Poor execution
2 Best Signs of a good strategy - Answers - Meeting/Beating performance targets and
value chain activities operating at excellence
3 Key Actions - Answers - Staffing
Developing
Structuring
Staffing - Answers - Assembling a strong management team
Developing - Answers - Renew, upgrade, and revise resources and capabilities to
match chosen strategy
Structuring - Answers - create strategy-supportive organization capable of good strategy
execution
Actions for Staffing the Organization - Answers - Putting together a strong management
team of talented activist
Strong Management Team - Answers - Planners
Implementers
Executers
Planners - Answers - ask tough questions and figure out what needs to be done
, Implementers - Answers - select, manage, and lead the right people
Executors - Answers - turn decisions into actions that drive the changes that produce
sustainable competitive advantage
Approaches to building and strengthening capabilities - Answers - 1. Develop
capabilities internally
2. Acquire capabilities through mergers and acquisitions
3. Access capabilities via collaborative partnerships
Organizational Structure - Answers - Comprises the formal and informal arrangement of
tasks, responsibilities, lines of authority, and reporting relationships for the firm
Structure is aligned with strategy when - Answers - 1. design contributes to the creation
of value for customers
2. parts are aligned with one another and also matched to the requirements of the
strategy
3. lowers op. costs through lower bureaucratic costs and operational efficiencies
Ensuring structure follows strategy - Answers - 1. Deciding which value chain activities
to perform internally or outsource
2. Aligning structure with strategy
3. Determining how much authority to delegate
4. Facilitating collaboration or strategic alliances
Simple Structure - Answers - Line-and-Staff
Straight line down from CEO
Functional Structure - Answers - Departmental or Unitary
A unit dedicated to each topic, i.e. finance, marketing, etc
Multi-divisional Structure - Answers - Divisional or M-Form
Occurs when a company jumps to being a diversified company from a simpler company.
Each division has each a functional structure
Ex: General Electric
Matrix Structure - Answers - Composite or Combination
Direct reporting lines to multiple units, departments, or divisions
Clears out hierarchy and allows a lower level person to speak directly to the VP of a
department and make fast decisions.
Ex: Google
Centralized Control - Answers - Lower level employees have little decision making
abilities, only upper management makes decisions
