STRAT.MAN. - CHAPTER 10 AND 11

Question 1

• connotes action.
• it involves a series of processes to achieve a particular goal.

Answer 1

Implementation

Question 2

signifies putting a formulated strategy into action.

Answer 2

Implementation

Question 3

can be characterized as good, effective, well-defined, and realistic if efficiently and successfully implemented.

Answer 3

Strategy

Question 4

refers to activities or processes which ensures that comprehensive plans formulated at the three levels of management are efficiently executed to achieve the goals and objectives of a company.

Answer 4

Strategy Implementation

Question 5

facilitates the achievement of company goals and objectives.

Answer 5

Strategy Implementation

Question 6

Types of Business Organization

Answer 6

1. Sole Proprietorship
2. Partnership
3. Corporation

Question 7

Is owned by one person.

Answer 7

Sole Proprietorship

Question 8

is owned by two or more partners.

Answer 8

Partnership

Question 9

is organized by at least five, but not more than fifteen persons.

Answer 9

Corporation

Question 10

whether business-oriented or not, is composed of a group individuals working together for the attainment of specific goals and objectives.

Answer 10

Organization

Question 11

it must have the ability to divide activities and at the same time coordinate them to facilitate the achievement of its goals and objectives.

Answer 11

Organization

Question 12

Elements that influence the ability of a business organization to divide and coordinate its various activities:

Answer 12

1. Patterns of Relationship
2. Management Control System
3. Leadership Style
4. Reward and Career System
5. Corporate Governance

Question 13

the organic structure of a company influences the relationship of the people and the offices comprising it.

Answer 13

Patterns of Relationship

Question 14

a positive relationship existing in a company contributes to the effective implementation of formulated strategies. On the contrary, an unfavorable pattern of relationship is likely a contributory factor in the poor implementation if strategies.

Answer 14

Patterns of Relationship

Question 15

exist because of the adopted formal structure, which is reflected in an organizational chart.

Answer 15

Formal Relationships

Question 16

are created because of informal groups existing and operating in a company.

Answer 16

Informal Relationships

Question 17

which is the concern of strategic management, must be carefully evaluated with important consideration to the chain of command and flow of communication to avoid confusion and misunderstanding.

Answer 17

Formal Pattern of Relationship

Question 18

The ff. are the Different organizational structure that influence the patterns of relationship of people:

Answer 18

1. Flat Structure
2. Functional Structure
3. Divisional Structure
4. Matrix Structure

Question 19

a flat organizational structure of a company exists when there are only few or no layers of management between the managers and employees.

Answer 19

Flat Structure

Question 20

it is usually adopted when a company is just starting, or its structure is simple.

Answer 20

Flat Structure

Question 21

this structure promotes direct involvement of employees in decision-making, which creates an atmosphere and relationship where they feel that they have important roles in a company.

Answer 21

Flat Structure

Question 22

a company is divided into small units with specific functions, such as marketing, finance, human resources, and production and operations.

Answer 22

Functional Structure

Question 23

employees with common qualifications, skills, and knowledge are grouped together to encourage relationships based on specialty and expertise.

Answer 23

Functional Structure

Question 24

large companies that operate across geographical areas or worldwide adopt a divisional structure where their business activities are divided according to market product, service, or region.

Answer 24

Divisional Structure

Question 25

each regional division has a complete functional unit that allows autonomy in its operations, functions, and decision-making.

Answer 25

Divisional Structure

Question 26

is a hybrid of the functional and divisional structures.

Answer 26

Matrix Structure

Question 27

with this structure, employees of a company are reporting to two superiors to effectively achieve the goals and objectives of their company.

Answer 27

Matrix Structure

Question 28

with this structure, employees of a company are reporting to two superiors to effectively achieve the goals and objectives of their company.

Answer 28

Matrix Structure

Question 29

is a tool that collects and uses information to assist management in monitoring and reviewing the activities and performances of different functional units to see if they are directed toward the attainment of goals and objectives of a company. Can be formal or informal and financial or non-financial.

Answer 29

Management Control System

Question 30

an effective management control system should be able to collect different kinds of information needed by a management in making economic decisions. It contributes to an effective and efficient implementation of formulated strategies ate different levels.

Answer 30

Management Control System

Question 31

in a company greatly influences the degree and seriousness of strategic management implementation.

Answer 31

Leadership Style

Question 32

of a company is likely to influence patterns of relationship, control system, and reward and career systems within it. Studies reveal that an effective leadership style contributes significantly to the successful implementation of corporate strategies.

Answer 32

Leadership Style

Question 33

The ff. are the various Leadership Styles:

Answer 33

1. Autocratic 2. Laissez-faire 3. Democratic 4. Bureaucratic 5. Transformational 6. Transactional 7. Situational

Question 34

works closely with the board of directors and top-level managers.

Answer 34

Chief Executive Officer (CEO)

Question 35

is a critical factor in the effective implementation of strategic management. An effective reward and career system motivates employees to perform outstandingly.

Answer 35

Reward and Career System

Question 36

it provides job security and opportunities for career advancement to all employees regardless of their educational background, experience, and expertise. The system includes compensation, benefits, recognition, and training and development.

Answer 36

Reward and Career System

Question 37

refers to the relationships among shareholders, the board of directors, and the management in terms of functions, roles, responsibilities, and accountabilities.

Answer 37

Corporate Governance

Question 38

it involves determining the direction and performance of a corporate entity.

Answer 38

Corporate Governance

Question 39

the shareholders are owners of corporation. They elect the members of the board of directors who formulate policies and ensure that managerial actions and motives are aligned with the interests of the shareholders.

Answer 39

Corporate Governance

Question 40

do not actively participate in and interfere with the operations of a company.

Answer 40

Shareholders

Question 41

at the corporate level, the crafted corporate level strategy is implemented by the

Answer 41

top-level management

Question 42

The one who implement company’s strategy:

Answer 42

1. CEO (chief executive officer) 2. COO (chief operation officer) 3. President 4. Vice Presidents 5. Senior Managers

Question 43

Corporate Level Strategy is implemented through the formulation of the ff:

Answer 43

1. Vision and Mission 2. Goals and Objectives 3. Strategy and Policies

Question 44

crafted at the corporate level cover the overall direction of an entire company. However, every business and functional unit has to craft its own VMGOSP that are aligned, consistent, and congruent to the overall direction of the company.

Answer 44

Vision, Mission, Goals, Objectives, Strategy, & Policies (VMGOSP)

Question 45

defines what it wants to achieve in the future.

Answer 45

Vision

Question 46

answers the question “what does the business want to become?”.

Answer 46

Vision

Question 47

must be clear, specific, and brief and preferably expressed in one short sentence.

Answer 47

Vision Statement

Question 48

describes what a company should do to meet its vision.

Answer 48

Mission

Question 49

it defines the purpose of the existence of a company and answers the question, “what is our business now?”.

Answer 49

Mission

Question 50

must be clear and specific. It should include the philosophical values of a company; the treatment of employees, customers, and other stakeholders; and the maintenance of ethical standards.

Answer 50

Mission Statement

Question 51

may be broad or narrow in scope.

Answer 51

Mission Statement

Question 52

which is largely used by many companies, covers a wider range of customers to serve or several product lines to offer.

Answer 52

broadly mission statement

Question 53

is preferable in a stable environment where growth opportunities are not impressive and competition is intense.

Answer 53

Broad Mission Statement

Question 54

“Provide quality service to institutions, entrepreneurs, and individuals here and abroad” is a broad mission statement that intends to include all stakeholders but does not identify whose interests shall be given utmost importance.

Answer 54

Broad Mission Statement

Question 55

“Offer healthy organic food for the elderly” illustrates a narrow mission statement. This mission statement is most appropriate in an unstable industry where companies should focus on what they do best.

Answer 55

Narrow Mission Statement

Question 56

specifically states the product offered, market served, and process adopted.

Answer 56

Narrow Mission Statement

Question 57

are the action words of the vision and mission, respectively.

Answer 57

Goals and Objectives

Question 58

are broad statement on how to achieve the vision of a company. they are not time-bound.

Answer 58

Goals

Question 59

are specific end results that a company wants to achieve within a specified time frame.

Answer 59

Objectives

Question 60

is a plan formulated to effectively achieve a company's mission and objectives through the efficient utilization of resources.

Answer 60

Strategy

Question 61

are internal broad guidelines intended to support the formulation of a strategy in order to achieve organizational goals and objectives through the proper utilization of resources. Must be carefully developed so that employees are encouraged to act and behave ethically, technically, and professionally.

Answer 61

Policies

Question 62

must be written, properly communicated and equally enforced to all employees so their actions and decisions conform to the overall direction of the company.

Answer 62

Policies

Question 63

the VMGO must be consistent from the corporate level down to the functional level of a company. It must have a hierarchal order from the vision to the policies.

Answer 63

The Hierarchy and Consistency of the Vision, Mission, Goals, And Objectives (VMGO)

Question 64

At the top management, the backbone of the vision and mission statements is the

Answer 64

Corporate Level Strategy

Question 65

is important in the implementation of a strategy. The VMGO must not only be vertically consistent, but also horizontally consistent among the different functional levels. It cannot attain horizontal consistency if one or more functional units cannot align its or their activities with other units.

Answer 65

Consistency

Question 66

The Implementation of the Business and Functional Level Strategies is made possible through the preparation of the ff:

Answer 66

1. Programs 2. Budgets 3. Procedures

Question 67

must be anchored on objectives of a business unit.

Answer 67

Programs, Budgets, and Procedures at the Business Level

Question 68

must be anchored on the objectives of the functional units.

Answer 68

Programs, Budgets, and Procedures at the Functional Level

Question 69

is spearhead by the business and functional level managers or supervisors.

Answer 69

Implementation

Question 70

serve as the roadmap in the implementation of business and functional level strategies.

Answer 70

Programs, Budgets and Guidelines

Question 71

contain information about target, people involved, cost, expected completion time and expected output.

Answer 71

Elements

Question 72

is a plan embodying the different activities that must be accomplished to achieve the objectives of a company through the efficient utilization of its resources.

Answer 72

Strategic Program

Question 73

programs vary in content and structure across business and functional units. However, all programs are anchored on the general business objective. Each business and functional unit prepares a program distinct, to a certain extent, from the other units.

Answer 73

Strategic Program

Question 74

the setting of a program is spearheaded by a business level manager.

Answer 74

Business Level

Question 75

it is participated by different functional level managers and other key personnel of a particular division.

Answer 75

Business Level

Question 76

the setting of a program is spearheaded by a functional level manager with the participation of important, lead employees of different subunits.

Answer 76

Functional Level

Question 77

is a quantifiable form of measurement used to determine how a company effectively achieves its objectives.

Answer 77

Key Performance Indicator

Question 78

varies among businesses, processes, and functional units.

Answer 78

Key Performance Indicator

Question 79

Information collected from KPI result is commonly used in

Answer 79

strategy evaluation and control

Question 80

Most KPIs fall under the ff. broad classifications:

Answer 80

1. Increased Customer Value (ex. number of complaints) 2. Improved Production Processes (ex. ave. processing time) 3. Reduced Manufacturing Cost (ex. number of waste or spoilage) 4. Increased Sales Revenue (ex. increase of new customers)

Question 81

is a plan expressed in quantitative, monetary value. It includes the revenue and expenditure budget.

Answer 81

Budget

Question 82

may serve as a control mechanism in the implementation of a strategy. It also directs the course of the program or activity through the budgeted amount.

Answer 82

Budget

Question 83

it is a good tool to evaluate the efficiency of the performance of the business and functional units.

Answer 83

Budget

Question 84

the basis of a budget is the __________________ in coordination with a program.

Answer 84

business and functional level strategic objectives

Question 85

the resources of a company are taken into account. This may serve as the cap that will limit the setting of the budgeted amount.

Answer 85

preparing a budget

Question 86

otherwise known as the standard operating procedures (SOP)

Answer 86

Procedures

Question 87

specify the detailed or step-by-step process to be carried out to achieve the completion of a program.

Answer 87

Procedures

Question 88

it contains the list of things to do, the executor of the program, and the manner and time of execution. The drafting of the standard procedure is influenced by the strategy, objectives, and the program.

Answer 88

Procedures

Question 89

must be documented to discourage finger-pointing in times when results are not favorable or cannot be determined.

Answer 89

Procedures

Question 90

they are not fixed and rigid; rather they must be periodically evaluated because changes are happening constantly. The rapid changes in the environment influence the effective administration of procedures.

Answer 90

Procedures

Question 91

Formats of the SOP:

Answer 91

1. Simple-Step Format 2. Hierarchical-Step Format 3. Flowchart Format

Question 92

uses simple sentences in listing down the procedures to be carried out to accomplish a program.

Answer 92

Simple-Step Format

Question 93

is employed when there are several long procedures involved, and each major step contains several sub steps.

Answer 93

Hierarchical-Step Format

Question 94

is adopted when there are infinite steps to be carried out since the results may be unpredictable.

Answer 94

Flowchart Format