BA 300- STRATEGIC MANAGEMENT

8.6 Check Your Progress

Revision Questions:

1. Allocating resources can be apolitical and an ad hoc activity in firms that do not use
strategic management. Why is this true? Does using strategic management ensure easy
resource allocation? Why?

In the absence of strategic management, resource allocation can be ad hoc and political
because intuition, subjectivity, and emotions can all play too large a role. Strategic
management does not guarantee easy resource allocation, but it does result in more
effective resource allocation in general.

2. Compare strategy formulation with strategy implementation, in terms of each being a

science or an art.

Basically, Strategy Formulation is a logical process, whereas Strategy Implementation is an

operational process. In terms of science and art strategy formulation can be considered as a
science because it needs a systematize body of knowledge while strategy implementation is
an art because it deals with the application of knowledge and skills.

3. Describe the relationship between annual objectives and policies.

Annual policies regulate yearly activities to help the organization meet its goals. An
organization must create annual policies that match its plans to achieve its objectives.

4. Identify a long-term objective and two supporting annual objectives for any organization
that you are familiar with.

Long-term objective
The goal of DCCCO is to help enrich the quality of life of Filipinos through excellence
and caring service grounded on Christian values.

Two supporting objectives

Create relevant social responsibility initiatives.
Continuously upgrade the technology infrastructure.

5. Identify and discuss three policies that would apply to (a) a local government unit; (b) an
educational institution; and (c) a sports club.
 1. Provide quality service.
2. Accountability
3. Transparency

6. Explain the following statement: Horizontal consistency of goals is as important as vertical

consistency.

Horizontal consistency requires sub-unit managers to share goals. Vertical consistency

requires that sub-unit goals match work-group goals and organization-wide goals.
Workplaces need horizontal and vertical consistency.

7. Describe several reasons why conflicts may occur during objective setting exercises.

Because each person has their own unique set of expectations, perceptions, schedules,
pressures, and obligations, as well as their own unique personality.

8. Describe the organizational culture of your college or university.

Organization culture in my university helps itself to behave accordingly and find ways to
improve management, enhance, and reform.

9. Explain organizational culture is so important in strategy implementation.

Because organizational culture contributes to goal achievement by incorporating them into

the organization's shared values and beliefs.

10. In your opinion, how many separate divisions could an organization reasonably have,
without using an SBU-type organizational structure? Why?

The number of divisions that a company can reasonably have is determined by its location,
size, and type of market the organization has.

11. Consider a college organization that you are familiar with. How did management issues
affect strategy implementation in that organization?

An educational institution must maintain its good reputation to the public. Thus, whatever
management issues inside the institution must be resolved immediately and must not put
the school itself and the student body.