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Correct Option B

Option A - Wrong:
When the economic crisis of the 1990s stressed the need for manager-level coaching,
many corporations decided
that it was fundamental to implement and apply it
because it helped managers understand how their actions directly
influenced both
the company and their subordinates.
Flaw:
- "Implement" and "Apply" have similar meaning - reducancy
- 3 It creates Pronoun ambiguity, to which noun it is refer to?

Option B
When the economic crisis of the 1990s stressed the need for manager-level coaching,
many corporations decided
that it was fundamental to implement coaching
because it helped managers understand how their actions directly
influenced both
the company and their subordinates
Correct:
- Pronoun it clarity - 1st - it refer to subject and 2nd It to coaching
- No reducancy
- Correct idiom - Both X and Y

Option C - Wrong
When the economic crisis of the 1990s stressed the need for manager-level coaching,
many corporations decided
that it was fundamental to implement it
because it helped managers understand how their actions had a direct
influence on both
the company and their subordinates
Flaw:
- 3 It creates Pronoun ambiguity, to which noun it is refer to?
- Wrong tense "Influence", we need past tense.

Option D - Wrong
When the economic crisis of the 1990s stressed the need for manager-level coaching,
many corporations decided
that it was fundamental to implement and apply coaching
because it helped managers understand how their actions directly
influenced both
the company and their subordinates
Flaw:
- "Implement" and "Apply" have similar meaning - reducancy

Option E - Wrong
When the economic crisis of the 1990s stressed the need for manager-level coaching,
many corporations decided
that it was fundamental to implement coaching
because it helped managers understand how their actions directly
influenced not only
the company and their subordinates
- Flaw:
Correct Idiom is either "Both X and Y" or "not only X but also Y"
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When the economic crisis of the 1990s stressed the need for manager-level coaching, many corporations decided that it was fundamental to implement and apply it because it helped managers understand how their actions directly influenced both the company and their subordinates.


A. and apply it because it helped managers understand how their actions directly influenced both - Incorrect. Wordy construction.

B. coaching because it helped managers understand how their actions directly influenced both - Correct. In line with the meaning of the sentence.

C. it because it helped managers understand how their actions had a direct influence on both - Incorrect. Unnecessary usage of 'had'.

D. and apply coaching because it helped managers understand how their actions directly influenced both - Incorrect. Distorts the meaning of the sentence.

E. coaching because it helped managers understand how their actions directly influenced not only - Incorrect. Idiomatic error. The correct version is 'not only...but also'.

IMO B
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A. and apply it because it helped managers understand how their actions directly influenced both
"apply" and implement conveys same meaning here and hence causes redundancy. Pronoun it has reference error here, as it refers to application of coaching or it refers to coaching. Eliminate.

B. coaching because it helped managers understand how their actions directly influenced both
Resolved both the redundancy & pronoun issue, and has no grammatical error. Keep

C. it because it helped managers understand how their actions had a direct influence on both
Pronoun it has reference error here, as it refers to implementation or it refers to coaching. Eliminate.

D. and apply coaching because it helped managers understand how their actions directly influenced both
"apply" and implement conveys same meaning here and hence causes redundancy. Eliminate

E. coaching because it helped managers understand how their actions directly influenced not only
"not only" ..."but also" is the correct usage. But the non-underlined part has conjunction, "and", and not appropriate here. Eliminate.

Hence, B is the best answer choice.
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I feel implement and apply both mean different things in this question (i.e they are not redundant). to implement would mean to start the process of manager-level coaching in the organization and to apply it would mean to apply the techniques learned in this coaching into everyday practices and work methodologies. So I think by picking option B we are distorting the actual meaning of the sentence.
Please correct me if I'm wrong :)
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