Chapter 14

Question 1

What is the theme of Chapter 14?

Answer 1

How do strategies actually develop?

This chapter explores the development of strategies, contrasting deliberate and emergent approaches.

Question 2

Name the two main views of strategy development discussed in Chapter 14.

Answer 2

• Strategy as deliberate
• Strategy as emergent

These views influence the eventual realized strategy.

Question 3

What does deliberate strategy development involve?

Answer 3

Intentional formulation or planning of strategies

It can be influenced by leadership, formal planning systems, or external imposition.

Question 4

Who can influence an organisation’s strategy as a strategic leader?

Answer 4

• Individuals
• Management teams

Their personalities, positions, or reputations can significantly impact strategy development.

Question 5

What is strategic leadership as command?

Answer 5

Strategy dictated by an individual

This is common in small, owner-managed firms.

Question 6

What is strategic leadership as vision?

Answer 6

A strategic leader determines or is associated with an overall vision

This can guide the direction of the organisation.

Question 7

What is the role of strategic planning systems?

Answer 7

• Systematic analysis
• Exploration to develop strategy

These systems help in formulating and coordinating strategies within an organisation.

Question 8

List the stages in the strategic planning cycle.

Answer 8

• Initial guidelines
• Business-level planning
• Corporate-level planning

These stages help in developing and approving strategic plans.

Question 9

What are the four roles of strategic planning?

Answer 9

• Formulating strategy
• Learning
• Integration
• Communicating intended strategy

These roles enhance understanding and commitment to the strategy.

Question 10

True or false: Strategic planning is only beneficial for large organisations.

Answer 10

FALSE

Smaller organisations and start-ups also use strategic planning to secure funding.

Question 11

What is meant by logical incrementalism in strategy development?

Answer 11

Strategies develop gradually through small, incremental steps

This approach contrasts with grand, comprehensive planning.

Question 12

What can be a downside of strategic leadership as command?

Answer 12

• Hubris
• Excessive risk taking
• Quirky strategies

These can lead to irrelevant strategies that may not be effective.

Question 13

Fill in the blank: Strategic leadership as decision making involves the ability to weigh different views and interpret data to make timely decisions about _______.

Answer 13

investing in key resources or markets

This is crucial for aligning the organisation’s strategy with its goals.

Question 14

What is the significance of communication in strategic planning?

Answer 14

Provides clarity on purpose and objectives

Effective communication is essential for strategy implementation.

Question 15

What are the dangers of formal systems of strategic planning?

Answer 15

• Confusing planning with managing
• Detachment from reality
• Over-complex planning processes
• Dampening of innovation

These dangers can lead to ineffective strategy implementation and hinder organizational performance.

Question 16

True or false: Strategic planning has continuously been ranked first or second in a survey of management tools used in organizations.

Answer 16

TRUE

Conducted by Bain, the survey highlights the importance of strategic planning in organizations.

Question 17

What is logical incrementalism in strategy development?

Answer 17

• Development through experimentation
• Learning from partial commitments
• Sensitivity to environmental signals

Coined by James Quinn, this approach bridges deliberate and emergent strategy processes.

Question 18

Fill in the blank: The emergent strategy is seen as a pattern in a stream of _______.

Answer 18

decisions

This concept emphasizes that strategy can develop from various decisions rather than a grand plan.

Question 19

What are the characteristics of strategy development through logical incrementalism?

Answer 19

• Environmental uncertainty
• Reluctance to specify precise objectives early
• Development of a flexible core

These characteristics allow for gradual strategy implementation and adaptability.

Question 20

What can lead to the dampening of innovation in organizations?

Answer 20

• Highly formalized planning systems
• Rigid control mechanisms
• Inflexible hierarchical structures

These factors can stifle creativity and new ideas within organizations.

Question 21

What is the role of emergent strategy in organizations?

Answer 21

• Develops from ongoing decisions
• Reflects a pattern rather than a grand plan
• Can be formally described later

Emergent strategy highlights the dynamic nature of strategy development in response to changing conditions.

Question 22

What influences the imposition of strategy by external stakeholders?

Answer 22

• Government regulations
• Financial market pressures
• Activist investors

External stakeholders can significantly shape the strategic direction of organizations.

Question 23

What is the political perspective on strategy development?

Answer 23

• Strategies emerge from bargaining and negotiation
• Reflects power dynamics within organizations
• Influenced by personal ambitions of powerful individuals

This perspective emphasizes that strategy is often shaped by internal politics rather than purely objective analysis.

Question 24

Fill in the blank: Managers may face the imposition of strategy by powerful external _______.

Answer 24

stakeholders

This can include government entities, financial markets, and activist investors.

Question 25

What is the **impact** of strategic planning on organizational performance?

Answer 25

* Evidence is equivocal * Difficult to isolate planning as a determining factor * May be beneficial when combined with emergent processes ## Footnote The effectiveness of strategic planning can vary based on its implementation and context.

Question 26

What are the **three distinct branches** of the United States government?

Answer 26

* Legislative Branch * Executive Branch * Judicial Branch ## Footnote Each branch has specific powers and responsibilities to check the powers of the others, ensuring a balance of power.

Question 27

In strategic planning, managers may form **coalitions** to gain what?

Answer 27

Influence ## Footnote This highlights the political dynamics within organizations during strategic decision-making.

Question 28

Name two factors that influence managers' approaches to strategic problems.

Answer 28

* Position and personal experience * Competition for resources and influence ## Footnote These factors shape how managers perceive and address strategic issues.

Question 29

True or false: Different access to information can affect strategy development.

Answer 29

TRUE ## Footnote Managers' roles and functional affiliations determine their access to information, influencing strategic decisions.

Question 30

What may be the result of political activity during strategy development?

Answer 30

* Compromise * New ideas * Innovation ## Footnote Political tensions can lead to innovative solutions and adaptations of existing strategies.

Question 31

Strategy development can be seen as the outcome of an organization’s **structures and systems**. What does this imply?

Answer 31

Managers make decisions based on familiar systems and routines ## Footnote This perspective emphasizes the role of established practices in shaping strategy.

Question 32

What is the concept of **logical incrementalism** in strategy development?

Answer 32

Gradual adaptation of strategy based on existing practices ## Footnote It suggests that strategies evolve through small, manageable changes rather than radical shifts.

Question 33

What are the two main arguments underlying the view of strategy development based on organizational systems?

Answer 33

* Managers make sense of issues based on familiar systems * Resource allocation decisions shape strategy ## Footnote These arguments highlight the influence of organizational context on strategic outcomes.

Question 34

In dynamic conditions, managers may employ which strategy-making techniques?

Answer 34

* Scenario planning * Active sensing of the environment ## Footnote These techniques help organizations adapt to changing circumstances.

Question 35

What is a potential problem when established processes do not adapt to changing environments?

Answer 35

Suboptimal path dependency ## Footnote This can occur when past strategies limit future options in a changing competitive landscape.

Question 36

In complex situations, organizations may seek structural solutions by doing what?

Answer 36

Subdividing into units with specific expertise ## Footnote This allows for more focused strategic decision-making within diverse organizations.

Question 37

What does the role of top management in strategy development depend on?

Answer 37

* Their perception of their role * The organizational context ## Footnote Different contexts may lead to varying approaches in how top management engages with strategy.

Question 38

What is the role of **top management** in strategy development?

Answer 38

* Detailed planners of strategy * Set broad strategic direction * Cultivate managers for detailed strategies * Develop capabilities to detect and build upon emerging strategies ## Footnote The perspective of top management influences how strategy is developed throughout the organization.

Question 39

What are the **roles of strategic planning** in different conditions?

Answer 39

* Directing strategy in simpler conditions * Coordinating overall strategy in decentralized development * Providing formal explanations of strategy for stakeholders ## Footnote The effectiveness of strategic planning varies based on the complexity of the conditions faced by the organization.

Question 40

How do **strategy development roles** differ at various organizational levels?

Answer 40

* Executives focus on formal planning and refining existing strategy * Lower-level managers rely on experimentation and informal contacts ## Footnote Building productive dialogue between different levels is crucial for effective strategy development.

Question 41

What are **strategic inflection points**?

Answer 41

* Shifts in fundamental industry dynamics * Recognized by managers close to changes * Require management to act upon them ## Footnote Burgelman and Grove emphasize the importance of recognizing these points to avoid organizational dissonance.

Question 42

True or false: Top management should always ignore **dissonance** within the organization.

Answer 42

FALSE ## Footnote Top managers need to learn when to take dissonance seriously, as it may indicate necessary changes in strategy.