STRAMA QUIZ - Ch 7&8 Flashcards
What occurs in strategy formulation?
PFPRR
◼Positioning forces
before the action
◼ Focus on effectiveness
◼ Primarily intellectual
◼ Requires good intuitive
and analytical skills
◼ Requires coordination
among a few people
What occurs in strategy implementation?
◼ Managing forces during
the action
◼ Focus on efficiency
◼ Primarily operational
◼ Requires special
motivation and
leadership skills
◼ Requires coordination
among many people
Purpose of Annual Objectives
◼Basis for resource allocation
◼Mechanism for management evaluation
◼Major instrument for monitoring progress
toward achieving long-term objectives
◼Establish priorities (organizational, divisional,
and departmental)
What are the four types of resources?
- Financial resources
- Physical resources
- Human resources
- Technological resources
Conflict – a disagreement between two or more parties. ___________________ and ___________ for limited resources can cause conflict.
interdependency of objectives; competition
T/F:
Structure should be designed to facilitate the strategic pursuit of a firm and, therefore, do not follow strategy
F; follow strategy
T/F:
When a firm changes its strategy, the existing organizational structure may become ineffective
T
Basic Forms of Structure
◼ Functional Structure
◼ Divisional Structure
◼ Strategic Business Unit Structure
(SBU)
◼ Matrix Structure
What occurs in Functional Structure?
Groups tasks and activities by business
function (e.g., production, finance,
marketing, R&D, HR, IT, etc.).
How can divisional structure be organized?
G-P/S-CP
❑ By geographic area
❑ By product or service
❑ By customer
❑ By process
Groups similar divisions into
strategic business units and
delegates authority and
responsibility for each unit to a
senior executive who reports
directly to the chief executive
officer.
Strategic Business Unit Structure
(SBU)
The most complex of all structures
because it depends upon both
vertical and horizontal flows of
authority and communication.
Matrix Structure
Restructuring - reducing the size of an organization.
Also called:
❑Downsizing
❑Rightsizing
❑Delayering
How to Create a Strategy-Supportive Culture
FDDESWLOOC
- Formal statements of organizational
philosophy - Design of physical spaces
- Deliberate role modeling, teaching,
and coaching - Explicit reward and status system
- Stories, legends, myths, and parables
- What leaders pay attention to
- Leader reactions to critical incidents and
crises - Organizational design and structure
- Organizational systems and procedures
- Criteria for recruitment, selection,
promotion, leveling off, retirement, and
“excommunication” of people
Production/Operations Decision
Examples
PIQCT
◼Plant size
◼Inventory / Inventory control
◼Quality control
◼Cost control
◼Technological innovation
