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# Why firms adhere to or deviate from their strategic plans is

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VP
Joined: 21 Mar 2006
Posts: 1124

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Location: Bangalore
Why firms adhere to or deviate from their strategic plans is [#permalink]

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25 Dec 2006, 04:22
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-sharingâ€” consensus-oriented, team-based decision-makingâ€”may increase the likelihood that firms will adhere to their plans, because those involved in the decision-making may be more com- mitted 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 firmâ€™s strategic mission (its fun- damental approach to increasing sales revenue and market share, and generating cash flow and short-term profits). At one end of the strategic mission continuum, â€œbuildâ€

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Director
Joined: 28 Dec 2005
Posts: 915

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25 Dec 2006, 05:23
I will go with 1) B and 2) E. For 2, B came close, but taking the passage on the whole, it seems to be E more than B.

EDIT: Agree with the others 1 has to be D. I re-read this and it looks like I did not even read all the answer choices earlier this morning.

Last edited by mbagal1 on 25 Dec 2006, 12:54, edited 1 time in total.

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Senior Manager
Joined: 24 Sep 2006
Posts: 272

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25 Dec 2006, 12:12
1.D
2.E
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AimHigher

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Joined: 08 Nov 2006
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Location: Ann Arbor
Schools: Ross '10

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25 Dec 2006, 12:15
I will go with D for the 1st question.
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VP
Joined: 21 Mar 2006
Posts: 1124

Kudos [?]: 49 [0], given: 0

Location: Bangalore

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25 Dec 2006, 22:56
Ok...ALL of you are right on the second one. OA = E.
However, ALL of you are wrong on the first one. The OA is E For the record, even I picked D. Am I being a little too presumptious by saying that the OA is wrong?

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Current Student
Joined: 11 Oct 2013
Posts: 121

Kudos [?]: 63 [0], given: 137

Concentration: Marketing, General Management
GMAT 1: 600 Q41 V31
Re: Why firms adhere to or deviate from their strategic plans is [#permalink]

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04 Dec 2015, 09:31

This thread is locked. Any pointers on why D is correct and B is wrong would help!
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Re: Why firms adhere to or deviate from their strategic plans is   [#permalink] 04 Dec 2015, 09:31
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