Evaluation of Strategy in Management
45 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a key challenge in coordinating efforts among different divisions in larger organizations?

  • Increased complexity in communication channels (correct)
  • Avoidance of conflict among managers
  • Lack of management oversight
  • Over-reliance on technology for communication

    • What is the primary purpose of aligning goals and policies with the resources of the company?

  • To ensure staff morale is high
  • To minimize operational costs
  • To maximize sales figures
  • To match the resources with competitors (correct)

    • How do small companies typically manage communication compared to large organizations?

  • They often communicate more casually and frequently among employees (correct)
  • They discourage open dialogue to minimize confusion
  • They utilize advanced information evaluation systems
  • They rely more on formal reports

    • Which criterion states that a strategy should represent an adaptive response to external changes?

    <p>Consonance</p> Signup and view all the answers

    What is mentioned as an important aspect of effective strategy evaluation systems?

    <p>Ability to reassure participants about performance outcomes</p> Signup and view all the answers

    What indicates that a strategy might have critical defects?

    <p>It is unable to maintain competitive advantage</p> Signup and view all the answers

    What did Robert Waterman emphasize about successful companies regarding facts and controls?

    <p>They treat facts as friends and controls as liberators</p> Signup and view all the answers

    What is one reason why certain banks like Morgan Guaranty and Wells Fargo prosper in a challenging market?

    <p>Their strategy evaluation systems are robust</p> Signup and view all the answers

    Which of the following is NOT a principle for evaluating a strategy?

    <p>Sustainability</p> Signup and view all the answers

    In the context of strategic goals and policies, what does 'viability' refer to?

    <p>Preventing resource overloads and ensuring resource management</p> Signup and view all the answers

    What do successful companies tend to do with information, according to the content provided?

    <p>They actively seek out comparisons and rankings</p> Signup and view all the answers

    What is a characteristic common to a good strategy based on Rumelt's principles?

    <p>It supports the creation and maintenance of competitive advantage</p> Signup and view all the answers

    How are audits defined according to the American Accounting Association?

    <p>A systematic process to evaluate assertions against criteria</p> Signup and view all the answers

    Why have audits gained more importance in companies recently?

    <p>As a result of recent corporate scandals</p> Signup and view all the answers

    What should be a consideration in assessing if business objectives are appropriate?

    <p>They should align with the organization's capacity for change</p> Signup and view all the answers

    How can the effectiveness of goals and policies in a company be evaluated?

    <p>By checking for congruence and understanding among top executives</p> Signup and view all the answers

    What is the primary role of independent auditors?

    <p>To examine financial statements for compliance with GAAP</p> Signup and view all the answers

    Which standards do independent auditors use to conduct audits?

    <p>Generally accepted auditing standards (GAAS)</p> Signup and view all the answers

    What is a key element of effective strategy evaluation?

    <p>Integrating intuition and analysis</p> Signup and view all the answers

    What does effective strategic management allow organizations to do?

    <p>Make effective long-term decisions and take corrective actions</p> Signup and view all the answers

    What does a good strategy generate for a company?

    <p>Competitive advantages</p> Signup and view all the answers

    What do tests of internal consistency assess?

    <p>Mutual achievability of goals</p> Signup and view all the answers

    What is one way that computer networks assist strategic management?

    <p>By coordinating strategic management activities and improving decision-making</p> Signup and view all the answers

    What is the primary reason a company's strategy is considered a theory?

    <p>It relies on assumptions about competitors and market responses</p> Signup and view all the answers

    What is a key benefit of diversified competition as stated in the content?

    <p>It allows for greater success with fewer resources.</p> Signup and view all the answers

    How does the strategy ensure effective leadership?

    <p>Through commitment rather than mere acceptance.</p> Signup and view all the answers

    What is a suggested tactic to achieve surprise in strategy?

    <p>Leveraging speed, silence, and intelligence.</p> Signup and view all the answers

    Which of the following is necessary for ensuring security in a strategy?

    <p>Ensuring a basis of resources and operational fundamentals.</p> Signup and view all the answers

    What does the content imply about flexibility in strategy?

    <p>It relies on maintaining certain reserves of resources.</p> Signup and view all the answers

    What is a primary issue when a problem is not properly defined?

    <p>It results in a lack of clear strategies.</p> Signup and view all the answers

    What best characterizes a 'fuzzy' strategy?

    <p>A collection of vaguely defined objectives.</p> Signup and view all the answers

    What is referred to as 'fluff' in the context of bad strategies?

    <p>Superficial and vague statements.</p> Signup and view all the answers

    Which of the following indicates a weak strategy due to lack of choice?

    <p>Adoption of multiple objectives without prioritization.</p> Signup and view all the answers

    How did the template strategy system typically manifest?

    <p>As motivational clichés connected to leadership and vision.</p> Signup and view all the answers

    What is the consequence of confusing objectives for strategy?

    <p>It diminishes the quality of strategic planning.</p> Signup and view all the answers

    Which statement reflects a characteristic of a good strategy?

    <p>It involves making difficult choices about priorities.</p> Signup and view all the answers

    What is the impact of superficial abstraction in strategy formulation?

    <p>It obscures the lack of thoughtful analysis.</p> Signup and view all the answers

    What is typically included in a vision statement?

    <p>A hopeful view of future aspirations</p> Signup and view all the answers

    Which of the following best describes a mission statement?

    <p>A high-sounding declaration of an entity's purpose</p> Signup and view all the answers

    What common issue arises from template-style planning?

    <p>It fosters empty rhetoric and bad examples.</p> Signup and view all the answers

    How should specific goals for subordinate units change during competitive periods?

    <p>They should remain flexible but less precise.</p> Signup and view all the answers

    What is one purpose of concentrating superior power within a strategy?

    <p>To precisely define critical dimensions of superiority.</p> Signup and view all the answers

    What is a potential consequence of adopting a purely reactive strategy?

    <p>It can lower morale and invite fatigue.</p> Signup and view all the answers

    What kinds of values are typically avoided in a company's values statement?

    <p>Controversial or divisive beliefs</p> Signup and view all the answers

    What is the significance of clear and precise objectives in a strategy?

    <p>They ensure continuity and cohesion in decision-making.</p> Signup and view all the answers

    Study Notes

    Evaluation of Strategy

    • Evaluation of strategies should be cost-effective, significant, and timely, aligning with company goals. Providing too much or too little information, or excessive control, can be detrimental.
    • Evaluation activities should offer managers useful insights into areas they can control and influence.
    • Timely information is crucial, especially in situations like mergers or acquisitions, whereas daily or even weekly information might be counterproductive in other departments.
    • Evaluation systems should accurately reflect current performance, even during economic downturns, where productivity might be masked by staff effort.
    • Information should guide action, targeting the personnel responsible for implementation. Managers often ignore reports lacking actionable insights. Controls should prioritize actions over pure information.
    • Evaluation systems should foster understanding, trust, and common sense among departments. Evaluation should be straightforward and avoid unnecessary complexity.
    • Larger organizations require more detailed and complex evaluation systems due to coordination challenges across different divisions. Smaller companies benefit from simpler information systems.
    • Effective evaluation systems need to convince participants that missing targets doesn't automatically mean poor performance.
    • Successful organizations treat facts as valuable resources and use controls to facilitate progress, rather than viewing them as obstacles. Thorough analysis and comparisons are essential.
    • Successful companies prioritize precise financial controls, viewing them as enabling, rather than restrictive instruments.

    Strategy Evaluation Principles

    • Strategy is defined as a set of objectives, policies, and plans that outline company scope, survival, and success.
    • A business strategy needs to be evaluated against whether its objectives and policies are appropriate. Are its underlying assumptions, verified by the results, still valid?

    Issues in Strategy Evaluation

    • Challenges in defining and focusing strategy issues; whether the objectives, policies, and plans are all aligned.

    Poor Strategies

    • Issues of vague or diffuse strategy objectives
    • Failure to address critical challenges. Poor strategies can lack clarity and appropriate direction
    • Issues of misrepresenting or neglecting core challenges, which creates difficulties in evaluating their adequacy.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    APUNTES EXAMEN 6TA UNIDAD EVALUACIN DE LA ESTRATEGIA PDF

    Description

    This quiz explores the evaluation of strategies within a management context. It emphasizes the importance of timely and actionable insights for effective decision-making and alignment with company goals. Participants will assess various factors that contribute to successful evaluation systems and their impact on organizational performance.

    More Like This

    Chapter 6
    26 questions

    Chapter 6

    CharismaticOrangutan avatar
    CharismaticOrangutan
    Strategy Evaluation Activities and Importance
    12 questions

    Strategy Evaluation Activities and Importance

    AdaptableImpressionism avatar
    AdaptableImpressionism
    Strategy Evaluation and Balanced Scorecard
    10 questions

    Strategy Evaluation and Balanced Scorecard

    SatisfyingFife avatar
    SatisfyingFife
    Business Strategy Evaluation
    40 questions

    Business Strategy Evaluation

    IndividualizedVariable avatar
    IndividualizedVariable
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser