Handout 2

Question 1

A change in strategy may involve a newly appointed officer who will spend a ton of time meeting with employees to get their perspective on the company, what’s working, and what’s not.

Answer 1

New Chief Executive Officer (CEO)

Question 2

A change in strategy may involve a gap that exists when performance does not meet expectations.

Answer 2

Performance measure.

Question 3

A change in strategy may involve a different business that initiates a takeover by buying or merging a company’s common stock or share.

Answer 3

Threat of a change in ownership.

Question 4

A change in strategy may involve alterations in the supply chain, including demand, supply, and environmental risks.

Answer 4

External intervention

Question 5

A change in strategy may involve a major alteration in the company due to the introduction of new or disruptive technologies, a different regulatory environment, a change in customers’ values, or a change in customers’ preferences.

Answer 5

Strategic inflection point.

Question 6

Strategic decisions are unusual and typically have no precedent, guidelines, or previous examples to follow.

Answer 6

Rare

Question 7

Strategic decisions commit substantial resources and demand a great deal of commitment from people at all levels.

Answer 7

Consequential.

Question 8

Strategic decisions set precedents for lesser organizational problems and future actions throughout an organization.

Answer 8

Directive.

Question 9

This states that one powerful individual makes strategy.

Answer 9

Entrepreneurial mode

Question 10

This is characterized by reactive solutions to existing problems rather than a proactive search for new opportunities.

Answer 10

Adaptive mode

Question 11

This involves systematically gathering appropriate information for situation analysis, generating feasible alternative strategies, and rationally selecting the most appropriate strategy.

Answer 11

Planning mode

Question 12

In this mode, top management first develops a reasonably clear idea of the corporation’s mission and objectives.

Answer 12

Logical incrementalism

Question 13

The organizational performance must be assessed based on return on investment, profitability, current mission, objectives, strategies, and policies.

Answer 13

Evaluate current performance results.

Question 14

The organization must evaluate the performance of its board of directors and top management.

Answer 14

Review corporate governance.

Question 15

The organization must determine the strategic factors that pose opportunities and threats.

Answer 15

Scan and assess the external environment.

Question 16

The organization must determine its strengths or core competencies and weaknesses.

Answer 16

Scan and assess the internal corporate environment.

Question 17

The organization must pinpoint its problem areas and revise its corporate mission and objectives.

Answer 17

Analyze strategic factors.

Question 18

The organization must identify the best course of action to solve an identified problem and achieve a set of objectives.

Answer 18

Generate, evaluate, and select the best alternative strategies.

Question 19

The organization must implement strategies through company programs, budgets, and procedures.

Answer 19

Implement selected strategies.

Question 20

The organization must monitor the implemented strategies through feedback systems and control of activities that ensures minimum deviation from original plans.

Answer 20

Evaluate implemented strategies.