Strategy Implementation and Evaluation
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Strategy Implementation and Evaluation

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Why is cell 2 considered a worse place to be than cell 3?

  • Cell 3 offers more advantages to coalition members.
  • Cell 2 has better input management.
  • Cell 2 is more efficient than cell 3.
  • Cell 3 has a strategic direction ensuring effectiveness. (correct)

    • What does effectiveness primarily ensure in an organization?

  • Maximizing efficiency.
  • Higher dividends for shareholders.
  • Survival of the organization. (correct)
  • Compliance with government regulations.

    • Which statement best distinguishes effectiveness from efficiency?

  • Efficiency guarantees survival of the organization.
  • Effectiveness requires minimal input.
  • Effectiveness is about doing the right thing. (correct)
  • Efficiency focuses on results over processes.

    • What is a common issue organizations face regarding strategic plans?

    <p>Prioritizing implementation without effective strategies.</p> Signup and view all the answers

    What does successful strategy formulation not guarantee?

    <p>Effective implementation of the strategy.</p> Signup and view all the answers

    Why are diverse interest groups vital for an organization?

    <p>They represent various perspectives and needs.</p> Signup and view all the answers

    What aspect of plans is often treated as an afterthought by organizations?

    <p>The means and circumstances of implementation.</p> Signup and view all the answers

    What is the main takeaway regarding the relationship between strategy formulation and implementation?

    <p>Implementation is more difficult than formulation.</p> Signup and view all the answers

    What is the primary focus of the McKinsey 7S Model?

    <p>To illustrate how effectiveness can be achieved through organizational elements</p> Signup and view all the answers

    Which of the following is NOT considered a hard element in the McKinsey 7S Model?

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

    Which component of the McKinsey 7S Model deals with how work is divided within an organization?

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

    How are the hard elements of an organization described in relation to management?

    <p>They are directly controlled by management.</p> Signup and view all the answers

    What does the soft element 'Style' in the McKinsey 7S Model primarily influence?

    <p>The strategic decisions of the organization</p> Signup and view all the answers

    What does the 'Skill' element in the McKinsey 7S Model assess?

    <p>The overall competency and skills base of the company</p> Signup and view all the answers

    In the context of the McKinsey 7S Model, how do the hard and soft elements interact?

    <p>Changing one aspect can lead to changes in the others.</p> Signup and view all the answers

    Which of the following best describes 'Shared Values' in the McKinsey 7S model?

    <p>The core ideas that an organization subscribes to and communicates</p> Signup and view all the answers

    What is the first step in preparing members of an organization for change?

    <p>Unfreezing the current situation</p> Signup and view all the answers

    What does the process of unfreezing primarily aim to achieve?

    <p>Breaking down old attitudes and behaviours</p> Signup and view all the answers

    Which method involves using role models to influence behaviour change?

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

    What is meant by 'refreezing' in the change process?

    <p>Reinforcing new behaviour to make it permanent</p> Signup and view all the answers

    What does internalization require from individuals during the change process?

    <p>An internal adjustment of thought processes</p> Signup and view all the answers

    Which statement correctly describes compliance as a method of behavior change?

    <p>It uses a reward and punishment strategy</p> Signup and view all the answers

    What is a critical characteristic of the change process described?

    <p>It occurs in a cyclical and ongoing manner</p> Signup and view all the answers

    What is one primary advantage of a matrix organization?

    <p>It combines the stability of the functional structure with the flexibility of the product form.</p> Signup and view all the answers

    Which of the following statements is correct regarding the change management process?

    <p>Unfreezing facilitates the recognition of the need for change</p> Signup and view all the answers

    When is a matrix structure typically most effective?

    <p>When the external environment is complex and changeable.</p> Signup and view all the answers

    Which issue is commonly associated with the matrix structure?

    <p>Conflicts regarding duties and resource allocation.</p> Signup and view all the answers

    What is a possible outcome when the goals in a matrix organization are vague?

    <p>Continuous power struggles between product and functional managers.</p> Signup and view all the answers

    Which condition is NOT a reason for implementing a matrix structure?

    <p>Desire for a hierarchical organizational structure.</p> Signup and view all the answers

    In a matrix organization, which managerial roles are typically expected to work closely?

    <p>Functional managers and project managers.</p> Signup and view all the answers

    What challenge may arise from the poorly defined technology in a matrix organization?

    <p>Power struggles between product and functional managers.</p> Signup and view all the answers

    What can be a consequence of having product, customer, technology, geography, and functional area as equal strategic priorities?

    <p>Increased complexity and potential for confusion.</p> Signup and view all the answers

    What is a characteristic of a Strategic Business Unit (SBU)?

    <p>It can independently plan and might stand alone from the organization.</p> Signup and view all the answers

    Historically, what was a disadvantage of using territorial units for strategic planning?

    <p>It led to inconsistent strategic planning for the same product.</p> Signup and view all the answers

    What does the SBU structure enable in terms of management?

    <p>Delegation of day-to-day operations and strategy to managers.</p> Signup and view all the answers

    Why is grouping businesses into SBUs important before strategy formulation?

    <p>It provides a clearer distinction for independent planning of varied businesses.</p> Signup and view all the answers

    What gives a manager in an SBU their authority?

    <p>Responsibility for strategic planning and profit performance.</p> Signup and view all the answers

    What role does the corporate office play in the SBU structure?

    <p>It formulates and implements overall corporate strategy.</p> Signup and view all the answers

    What is a collection of related businesses that can independently plan considered?

    <p>A strategic business unit (SBU).</p> Signup and view all the answers

    Which of the following statements about SBUs is correct?

    <p>SBUs have their own set of competitors distinct from the organization.</p> Signup and view all the answers

    Study Notes

    Strategy Implementation and Evaluation

    • Effectiveness vs. Efficiency:
      • Being effective means doing the right thing, while efficiency focuses on doing things correctly.
      • Effectiveness is more crucial for survival than efficiency.
      • An organization is a coalition of various stakeholders who seek to achieve their own advantages.
      • Effectiveness is determined by meeting the needs and expectations of these stakeholders.

    Strategy Formulation vs. Implementation

    • Unfreezing: Breaking down existing attitudes and behaviors to prepare for change.
      • Techniques include announcements, meetings, and promotion of new ideas.
    • Changing: Redefining behavior patterns to adapt to the new situation.
      • Methods include compliance, identification, and internalization.
    • Refreezing: Making the new behavior the norm through continuous reinforcement.
      • The change process requires a cyclical approach due to dynamic environments.

    Organisational Framework: The McKinsey 7S Model

    • Framework Overview: Analyzes an organization's design to understand how effectiveness is achieved through the interaction of hard and soft elements.
    • Hard Elements (controlled by management):
      • Strategy: Future plans to address current and future challenges.
      • Structure: How work is divided and departments collaborate.
      • Systems: Formal and informal processes underpinning the structure.
    • Soft Elements (influenced by management):
      • Shared Values: Shared beliefs and ideas communicated transparently.
      • Staff: Development and performance management processes.
      • Skills: Base of skills and competencies within the organization.
      • Style: Leadership style influencing strategic decisions.

    Strategic Business Units (SBUs)

    • Characteristics of an SBU:
      • A single or group of related businesses with independent planning capabilities.
      • Has its own competitors.
      • A manager with responsibility for strategic planning and profit performance.
    • Advantages of SBU structure:
      • Enables independent planning and strategy for each business unit.
      • Allows for diverse product/business strategic planning.
      • Prevents territorial structures from hindering strategic planning.

    Matrix Organization

    • Conditions for Matrix Structure:
      • Cross-fertilization of ideas across projects/products.
      • Scarce resources.
      • Need for improved information processing and decision-making.
    • Potential Challenges:
      • Conflicts regarding responsibilities, authority, and resource allocation.
      • Power struggles between functional and product managers.
      • Used in organizations or SBUs where projects/products require cross-functional collaboration.

    Key Points

    • A technically imperfect strategy implemented well is more effective than a perfect plan that is not put into action.
    • Organizations should identify and address potential barriers to implementing their strategic plans.
    • The McKinsey 7S model provides a comprehensive framework for analyzing organizational effectiveness.
    • The SBU structure enables organizations to focus on specific businesses and develop tailored strategies.
    • The matrix structure can be effective but needs careful management to minimize potential conflicts.

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    Description

    This quiz explores the differences between effectiveness and efficiency in an organizational context. It also covers the phases of strategy formulation and implementation, including unfreezing, changing, and refreezing. Understand how to manage stakeholder expectations and adapt to changing environments.

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