Sevi QUIZ 5

Question 1

Strategic Control:

Answer 1

Strategic control: the process of monitoring and correcting a firm’s strategy and performance

Question 2

What are the three control systems:

Answer 2

Informational-control systems

Behavioral-control systems

Corporate governance

Question 3

The traditional approach to strategic control is sequential:

Answer 3

Strategies are formulated, goals are set

Strategies are implemented

Performance is measured against goals

Question 4

The traditional approach =

Answer 4

single feedback loop from performance measurement to strategy formulation

Question 5

Key issue with Traditional Approach Strategic Control.

Answer 5

Key issue: lengthy time lags associated with “single loop” learning

Question 6

Traditional approach is most appropriate when:

Answer 6

Environment is stable, relatively simple

Objectives can be measured with certainty

There is little need for complex measures of performance

Question 7

The Contemporary approach:

Answer 7

relationships between strategy formulation, implementation, and control are highly interactive, utilizing:

Based upon information control and behavior control.

Question 8

Informational control:

Answer 8

Is the organization doing the right things?

Internal, external analysis

Does the strategy fit the internal and external environment?

Question 9

Behavioral control:

Answer 9

Is the organization doing things right in the implementation of the strategy.

Using culture, rewards, boundaries to influence employee actions

Question 10

Informational control = ongoing process of organizational learning

Answer 10

Focus is on constantly changing information: continuous monitoring, testing, review.

Data is interpreted and discussed face-to-face

Ongoing debates
challenge assumptions

Time lags are shortened, with changes detected
earlier

Speed and flexibility of response is enhanced

Question 12

Build-Borrow-Buy

Answer 12

Build: Internal growth through development

Borrow: External growth through contracts, strategic alliances.

Buy: External growth through acquiring new resources, capabilities, competencies.

Question 13

3

Question 14

Strategic alliances:

Answer 14

A voluntary arrangement between firms that involves sharing of:

Knowledge, Resources, Capabilities.

Question 15

Why do firms enter strategic alliances?

Answer 15

Strengthen competitive position, enter new markets, hedge against uncertainty, access critical assets, learn new capabilities.

Question 16

Non-Equity Alliance:

Answer 16

Partnership based on contracts, supply agreements, distribution agreements, licensing agreements, franchises.

Question 17

Equity Alliance:

Answer 17

One partner takes a partial equity stake in the other.

Question 18

Joint Venture

Answer 18

Standalone organization created and jointly owned by two or more parent companies.

Question 19

30 - 70% alliances to fail to deliver benefits.