Mgt B399 Exam Paper
SUGGESTED GUIDE FOR MGT B399 Specimen Exam Paper
B&A OUHK
PART A Question 1 (a) Describe the role of organizational control and organizational culture play in strategy implementation.
(20 marks)
Organizational controls guide the use of strategy, indicate how to compare actual and expected results, and suggest actions to take to improve performance when it falls below expectations. When properly matched with the strategy for which they were intended, structure and controls can be a competitive advantage. Strategic controls (largely subjective criteria) and financial controls (largely objective criteria) are the two types of organizational controls used to successfully implement a firm’s chosen strategy. Both types of controls are critical, although their degree of emphasis varies based on individual matches between strategy and structure. Strategic controls are concerned with examining the fit between what the firm might do (as suggested by opportunities in its external environment) and what it can do (as indicated by its competitive advantages). Effective strategic controls help the firm understand what it takes to be successful. Strategic controls demand rich communication between managers responsible for using them to judge the firm’s performance and those with primary responsibility for implementing the firm’s strategies. These frequent exchanges are both formal and informal in nature. Strategic controls enable organizations to monitor achievement of strategic goals, to evaluate performance, and to take corrective actions if needed. In addition, strategic controls can focus on the future, working to ensure that the firm is well positioned to achieve its future strategic goals as well as today’s goals. Partly because strategic controls are difficult to use with extensive diversification, financial controls are emphasized to evaluate the performance of the firm following the unrelated diversification strategy. The unrelated diversification strategy’s focus on
B&A OUHK
PART A Question 1 (a) Describe the role of organizational control and organizational culture play in strategy implementation.
(20 marks)
Organizational controls guide the use of strategy, indicate how to compare actual and expected results, and suggest actions to take to improve performance when it falls below expectations. When properly matched with the strategy for which they were intended, structure and controls can be a competitive advantage. Strategic controls (largely subjective criteria) and financial controls (largely objective criteria) are the two types of organizational controls used to successfully implement a firm’s chosen strategy. Both types of controls are critical, although their degree of emphasis varies based on individual matches between strategy and structure. Strategic controls are concerned with examining the fit between what the firm might do (as suggested by opportunities in its external environment) and what it can do (as indicated by its competitive advantages). Effective strategic controls help the firm understand what it takes to be successful. Strategic controls demand rich communication between managers responsible for using them to judge the firm’s performance and those with primary responsibility for implementing the firm’s strategies. These frequent exchanges are both formal and informal in nature. Strategic controls enable organizations to monitor achievement of strategic goals, to evaluate performance, and to take corrective actions if needed. In addition, strategic controls can focus on the future, working to ensure that the firm is well positioned to achieve its future strategic goals as well as today’s goals. Partly because strategic controls are difficult to use with extensive diversification, financial controls are emphasized to evaluate the performance of the firm following the unrelated diversification strategy. The unrelated diversification strategy’s focus on