Boil it down:· Author – states a problem = poor understanding. Firms deviate from plan· Research says a partial factor, particularly top management decision sharing · “maybe” a new factor “strategic mission” can influence both “top management decision sharing” & “adherence to plan”· Research suggests top management decision sharing +ve relation with adherence to plan = Harvest – short term· One support + one example of harvest · Author raises another “maybe” support for harvest· Contrast – build(long term) – individual leadership > decision sharing – may promote adherence to planWhy is this passage written by the author? Why firms adhere to or deviate from their strategic plans based on type of decision making & strategic mission1. 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 -wrong – first para is concerned about strategic plan not strategic mission.
(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 – hold on – feels too strong – OUT
(C)
To provide evidence supporting a theory introduced in the first paragraph about what makes firms adhere to or deviate from their strategic plans – wrong – there is no theory.
(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 – correct – it can support the theory. It says “wait a minute! There’s one more factor that can have influence both top management decision-sharing and adherence to plans”(E)
To explain a distinction relied on in the second paragraph regarding two different kinds of strategic missions – wrong – this line may acts an opening sentence for upcoming harvest & build missions. But author has not mentioned it for this reason.
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 – wrong
(B) One that is pursuing a harvest strategy and whose strategic plans were developed through the process of decision-sharing – Correct – straight through the passage(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 – wrong – opposite
(D)
One that does not fluctuate between build and harvest strategies – irrelevant
(E) One that has a
long-established practice of top-management decision-sharing – irrelevant
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 – less sexy – too obvious – correct (B) suggest a reason that
many managers of large firm prefer harvest strategies to build strategies – wrong – not stated
(C) provide an example of a firm that adhered to its strategic plan because of the degree of its
managers’ commitment – wrong – not stated
(D) demonstrate that managers implementing harvest strategies
generally have better strategic options than do managers implementing build strategies – wrong – not stated
(E) give an example of a large firm that
successfully implemented a harvest strategy – wrong – its not about implementing the harvest strategy. Rather, it’s about adhering to the plan while using harvest strategic mission.
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 likely to pursue build strategies rather than harvest strategies – hold on
(B)
They are less likely to have a well-defined strategic mission than are firms with individual leaders – wrong
(C) They are less likely to deviate from their strategic plans because team members may be more committed to the plans – less sexy – correct - “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.”(D) They generally follow a similar pattern in alternating
efforts to increase revenues and market share with efforts to generate short-term profits – wrong – not stated
(E)
They are less likely to adhere to their strategic plans because they tend to lack a clear strategic vision – irrelevant at best, opposite at worst – wrong
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 – hold on – author provides some factors that may be influencing the adherence to plans- wrong – because of “obstacles” & “difficult”. The author provides factors that may positively help in adherence to plan. - OUT
(B)
compare two different theories concerning why firms adhere to or deviate from their strategic plans – wrong – no theories were discussed
(C)
evaluate the utility of top management decision-sharing as a method of implementing the strategic mission of a business – wrong – author does not evaluate – he just writes probable factors
(D)
discuss the respective advantages and disadvantages of build and harvest strategies among several large firms – wrong – partially discussed in P2 only
(E) examine some of the factors that may affect whether or not firms adhere to their strategic plans – hold on – factors that may affect adherence to plans are discussed – but did author examine them? May be no/ yes. Examine – judge – correct or incorrect – author just provides probable factors – best of 5 - correct