GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 21 Oct 2018, 22:58

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Why firms adhere to or deviate from their strategic plans is

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Director
Director
User avatar
P
Joined: 09 Mar 2016
Posts: 946
Why firms adhere to or deviate from their strategic plans is  [#permalink]

Show Tags

New post 24 Jun 2018, 05:34
hazelnut wrote:
Why firms adhere to or deviate from their strategic plans is poorly understood.  However, theory and limited research suggest that the process through which such plans emerge may play a part.  In particular, top management decision sharing—consensus-oriented, team-based decision-making—may increase the likelihood that firms will adhere to their plans, because those involved in the decision-making may be more committed to the chosen course of action, thereby increasing the likelihood that organizations will subsequently adhere to their plans.

However, the relationship between top management decision-sharing and adherence to plans may be affected by a firm’s strategic mission (its fundamental approach to increasing sales revenue and market share, and generating cash flow and short-term profits). At one end of the strategic mission continuum, “build” strategies are pursued when a firm desires to increase its market share and is willing to sacrifice short-term profits to do so. At the other end, “harvest” strategies are used when a firm is willing to sacrifice marked share for short-term profitability and cash-flow maximization. Research and theory suggest that top management decision-sharing may have a more positive relationship with adherence to plans among firms with harvest strategies than among firms with build strategies.  In a study of strategic practices in several large firms, managers in harvest strategy scenarios were more able to adhere to their business plans. As one of the managers in the study explained it, this is partly because “Typically all a manager has to do [when implementing a harvest strategy] is that which was done last year.” Additionally, managers under harvest strategies may have fewer strategic options than do those under build strategies; it may therefore be easier to reach agreement on a particular course of action through decision-sharing, which will in turn tend to promote adherence to plans. Conversely, in a “build” strategy scenario, individual leadership, rather than decision-sharing, may promote adherence to plans. Build strategies—which typically require leaders with strong personal visions for a firm’s future, rather than the negotiated compromise of the team-based decision—may be most closely adhered to when implemented in the context of a clear strategic vision of an individual leader, rather than through the practice of decision-sharing.

VRC000400-01
1. Which of the following best describes the function of the first sentence (lines 17-24) of the second paragraph of the passage?

(A) To answer a question posed in the first sentence of the passage about why firms adopt particular strategic missions
(B) To refute an argument made in the first paragraph about how top management decision-making affects whether firms will adhere to their strategic plans
(C) To provide evidence supporting a theory introduced in the first paragraph about what makes firms adhere to or deviate from their strategic plants
(D) To qualify an assertion made in the preceding sentence about how top management decision-making affects the likelihood that firms will adhere to their strategic plans
(E) To explain a distinction relied on in the second paragraph regarding two different kinds of strategic missions



VRC000400-03
2. It can be inferred from the passage that which of the following firms would be most likely to adhere to it strategic plans?

(A) One that is pursuing a build strategy and whose strategic plans were developed through the process of decision-sharing
(B) One that is pursuing a harvest strategy and whose strategic plans were developed through the process of decision-sharing
(C) One that is pursuing a harvest strategy and whose strategic-plans were developed by an individual leader with a strong personal vision for the firm's future
(D) One that does not fluctuate between build and harvest strategies
(E) One that has a long-established practice of top-management decision-sharing



VRC000400-04
3. The author includes the quotation in lines 44-47 [“Typically all a manager has to do [when implementing a harvest strategy] is that which was done last year.”] of the passage most probably in order to

(A) lend support to the claim that firms utilizing harvest strategies may be more likely to adhere to their strategic plans
(B) suggest a reason that many managers of large firm prefer harvest strategies to build strategies
(C) provide an example of a firm that adhered to its strategic plan because of the degree of its managers’ commitment
(D) demonstrate that managers implementing harvest strategies generally have better strategic options than do managers implementing build strategies
(E) give an example of a large firm that successfully implemented a harvest strategy



VRC000400-06
4. According to the theory and research discussed in the first paragraph of the passage, which of the following may be true of firms that use teams to develop their strategic plans?

(A) They are more to pursue build strategies rather than harvest strategies.
(B) They are less likely to have a well-defined strategic mission than are firms with individual leaders.
(C) They are less to deviate from their strategic plans because team members may be more committed to the plans.
(D) They generally follow a similar pattern in alternating efforts to increase revenues and market share with efforts to generate short-term profits.
(E) They are less likely to adhere to their strategic plans because they tend to lack a clear strategic vision.



VRC000400-07
5. The primary purpose of the passage is to

(A) identify some of the obstacles that make it difficult for firms to adhere to their strategic business plans
(B) compare two different theories concerning why firms adhere to or deviate from their strategic plans
(C) evaluate the utility of top management decision-sharing as a method of implementing the strategic mission of a business
(D) discuss the respective advantages and disadvantages of build and harvest strategies among several large firms
(E) examine some of the factors that may affect whether or not firms adhere to their strategic plans




GMATNinja hello there,

can you please give advise/some tips about how to approach the question type " primary purpose of the passage" i was between C and E and chose C :-) i mostly seem to answer incorectly this type of questions/. the rest questions i answered correctly.

thank you and have a nice weekend :)
GMAT Club Verbal Expert
User avatar
P
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 2043
Location: United States
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170
Re: Why firms adhere to or deviate from their strategic plans is  [#permalink]

Show Tags

New post 24 Jun 2018, 13:26
1
dave13 wrote:
GMATNinja hello there,

can you please give advise/some tips about how to approach the question type " primary purpose of the passage" i was between C and E and chose C :-) i mostly seem to answer incorectly this type of questions/. the rest questions i answered correctly.

thank you and have a nice weekend :)

If primary purpose questions are a persistent issue, that's generally a sign that you're not being completely effective in reading the passage itself.

You've probably already seen our beginner's guide to RC, but if you're executing really, really well on the techniques in that article, then you should be fine on primary purpose questions. Basically, if you stop at the end of every paragraph and fully engage in understanding the author's purpose -- and how each paragraph connects to the previous paragraph -- then by the time you finish the passage, you should have a pretty solid understanding of what the author's overall purpose is with the passage. If you've done that, then the primary purpose questions should be straightforward.

Put another way: if you're missing primary purpose questions, it leads me to suspect that when you read a passage, you're letting it turn into a gigantic puddle of facts. And that's exactly the opposite of what you want to do.

But beyond that, there's really no special technique for tackling primary purpose questions. You'll have success on those questions if you're reading the passages the right way.

This might not be the answer you had in mind, but I hope it helps a bit!
_________________

GMAT Club Verbal Expert | GMAT/GRE tutor @ www.gmatninja.com (Now hiring!) | Instagram | Food blog | Notoriously bad at PMs

Beginners' guides to GMAT verbal
Reading Comprehension | Critical Reasoning | Sentence Correction

YouTube LIVE verbal webinars
Series 1: Fundamentals of SC & CR | Series 2: Developing a Winning GMAT Mindset

SC & CR Questions of the Day (QOTDs), featuring expert explanations
All QOTDs | Subscribe via email | RSS

Need an expert reply?
Hit the request verbal experts' reply button -- and please be specific about your question. Feel free to tag @GMATNinja in your post. Priority is always given to official GMAT questions.

Sentence Correction articles & resources
How to go from great (760) to incredible (780) on GMAT SC | That "-ing" Word Probably Isn't a Verb | That "-ed" Word Might Not Be a Verb, Either | No-BS Guide to GMAT Idioms | "Being" is not the enemy | WTF is "that" doing in my sentence?

Reading Comprehension, Critical Reasoning, and other articles & resources
All GMAT Ninja articles on GMAT Club | Using LSAT for GMAT CR & RC |7 reasons why your actual GMAT scores don't match your practice test scores | How to get 4 additional "fake" GMAT Prep tests for $29.99 | Time management on verbal

Intern
Intern
avatar
B
Joined: 16 Jun 2018
Posts: 10
GMAT 1: 600 Q36 V37
Re: Why firms adhere to or deviate from their strategic plans is  [#permalink]

Show Tags

New post 05 Aug 2018, 03:25
Hi GMAT Ninja,

Can you explain why E is the incorrect choice in Q.1?

The second paragraph does talk about the difference in the two different kinds of strategic missions?

While I am also not completely convinced, would be helpful if you can provide an insight into this?

Thanks in advance!!

pikolo2510 wrote:
GMATNinja wrote:
pikolo2510 wrote:
Hey GMATNinja

Can you explain question #1?

I selected B. My reasoning is as follows: -

The last line of the first paragraph says that decision sharing by top management will eventually increase the likelihood of companies to adhere to their respective plans.

But, The first line of the second paragraph says that the "strategic mission",coupled with decision sharing, of the company is an important factor that may affect the adherence to their respective plans.

I eliminated D because I don't think it is "qualifying" an assertion made in the previous sentence. Rather it is refuting saying that decision making along with the strategic mission will affect the likelihood, and not only decision making alone will affect the likelihood. The usage of "however" as well is an indicator of change or shift or refute the previous line.

Hence I selected option B. Let me know your thoughts

Quote:
1. Which of the following best describes the function of the first sentence (lines 17-24) of the second paragraph of the passage?

(A) To answer a question posed in the first sentence of the passage about why firms adopt particular strategic missions
(B) To refute an argument made in the first paragraph about how top management decision-making affects whether firms will adhere to their strategic plans
(C) To provide evidence supporting a theory introduced in the first paragraph about what makes firms adhere to or deviate from their strategic plants
(D) To qualify an assertion made in the preceding sentence about how top management decision-making affects the likelihood that firms will adhere to their strategic plans
(E) To explain a distinction relied on in the second paragraph regarding two different kinds of strategic missions

The first paragraph tell us that "top management decision sharing... may increase the likelihood that firms will adhere to their plans." Refuting that statement would involve arguing that decision sharing does NOT increase the likelihood or that decision sharing DECREASES the likelihood.

Looking at the second paragraph:

Quote:
Research and theory suggest that top management decision-sharing may have a more positive relationship with adherence to plans among firms with harvest strategies than among firms with build strategies.

This does NOT say that decision-sharing among firms with build strategies does NOT increase the likelihood. Instead, it tells us that, among firms using decision sharing, firms with harvest are MORE likely to adhere to plans than firms with build.

There can still be a positive relationship among firms with build strategies. However, the relationship is more positive among firms with harvest strategies. The author is not DISPUTING the idea that decision sharing increases the likelihood of adhering to plans. Instead, the author is limiting/modifying (i.e. qualifying) that idea.

It's like saying that people who play a lot of video games are, in general, more likely to develop good problem solving skills. But then you QUALIFY that statement by saying, "However, the type of video game is important... People who play strategy games are more likely to develop good problem solving skills than people who play mindless games on their phones."

Are you REFUTING the idea that playing video games leads to better problem solving skills? Nope -- you're simply limiting/modifying (i.e. qualifying) that statement.

I hope that helps!


Thanks for the wonderful explanation GMATNinja. This really did help a lot.
+1
GMAT Club Verbal Expert
User avatar
P
Status: GMAT and GRE tutor
Joined: 13 Aug 2009
Posts: 2043
Location: United States
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170
Re: Why firms adhere to or deviate from their strategic plans is  [#permalink]

Show Tags

New post 22 Aug 2018, 20:12
mrinalsharma1990 wrote:
Hi GMAT Ninja,

Can you explain why E is the incorrect choice in Q.1?

The second paragraph does talk about the difference in the two different kinds of strategic missions?

While I am also not completely convinced, would be helpful if you can provide an insight into this?

Thanks in advance!!

Here's the question again:

Quote:
1. Which of the following best describes the function of the first sentence (lines 17-24) of the second paragraph of the passage?

In other words, why does the author say this?
Quote:
However, the relationship between top management decision-sharing and adherence to plans may be affected by a firm’s strategic mission (its fundamental approach to increasing sales revenue and market share, and generating cash flow and short-term profits).

There's one clue right off the bat: This sentence starts with the word "however." The author is immediately referring back to the a prior statement and adding some kind of qualification to what was said previously. In the first paragraph the author tells us that top management decision-sharing may increase the likelihood that firms will adhere to their plans. Then, with this sentence, the author tells us that top management decision sharing may not be the only factor when determining why a firm adheres to its plan. As I wrote earlier, the author uses this sentence to qualify the previous sentence, and this is why we keep choice (D) around.

Now let's take a look at choice (E):
Quote:
(E) To explain a distinction relied on in the second paragraph regarding two different kinds of strategic missions

Is the purpose of this sentence to explain the distinction between "build" and "harvest" strategies? Nope. Here the author names a possible second influence on a firm's adherence to strategy (the kind of strategic mission that firm is pursuing). The author uses this sentence to call into question the influence stated in paragraph 1 (top management decision sharing).

Choice (E) tells us about a thing that the author does eventually write about in paragraph 2, but it doesn't tell us why the author writes the exact sentence that is being highlighted. So it doesn't answer the question we were asked.

That's why eliminate (E) and keep (D). I hope this helps!
_________________

GMAT Club Verbal Expert | GMAT/GRE tutor @ www.gmatninja.com (Now hiring!) | Instagram | Food blog | Notoriously bad at PMs

Beginners' guides to GMAT verbal
Reading Comprehension | Critical Reasoning | Sentence Correction

YouTube LIVE verbal webinars
Series 1: Fundamentals of SC & CR | Series 2: Developing a Winning GMAT Mindset

SC & CR Questions of the Day (QOTDs), featuring expert explanations
All QOTDs | Subscribe via email | RSS

Need an expert reply?
Hit the request verbal experts' reply button -- and please be specific about your question. Feel free to tag @GMATNinja in your post. Priority is always given to official GMAT questions.

Sentence Correction articles & resources
How to go from great (760) to incredible (780) on GMAT SC | That "-ing" Word Probably Isn't a Verb | That "-ed" Word Might Not Be a Verb, Either | No-BS Guide to GMAT Idioms | "Being" is not the enemy | WTF is "that" doing in my sentence?

Reading Comprehension, Critical Reasoning, and other articles & resources
All GMAT Ninja articles on GMAT Club | Using LSAT for GMAT CR & RC |7 reasons why your actual GMAT scores don't match your practice test scores | How to get 4 additional "fake" GMAT Prep tests for $29.99 | Time management on verbal

GMAT Club Bot
Re: Why firms adhere to or deviate from their strategic plans is &nbs [#permalink] 22 Aug 2018, 20:12

Go to page   Previous    1   2   [ 24 posts ] 

Display posts from previous: Sort by

Why firms adhere to or deviate from their strategic plans is

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.