CS Organizational Design & Strategy Execution 1 — Questions and Answers
Question 1: Which organizational structure best supports a company pursuing a multi-business diversification strategy?
- Functional structure
- Divisional (M-form) structure (Correct answer)
- Matrix structure
- Flat structure
Correct answer: Divisional (M-form) structure
The divisional (M-form) structure groups activities by product, geography, or business unit, giving each division autonomy to execute its own strategy while corporate oversees resource allocation.
Question 2: The McKinsey 7-S Framework asserts that strategy execution fails most often when which element is misaligned?
- Strategy
- Shared values (Correct answer)
- Systems
- Structure
Correct answer: Shared values
Shared values sit at the center of the 7-S model and act as the integrating force; misalignment here undermines all other elements including structure, systems, and staff.
Question 3: A company redesigns its reporting hierarchy to reduce the number of management layers between the CEO and front-line employees. This is best described as:
- Increasing span of control (Correct answer)
- Vertical integration
- Decentralization
- Formalization
Correct answer: Increasing span of control
Reducing management layers increases the span of control — each manager oversees more direct reports — resulting in a flatter, more agile organization.
Question 4: The Balanced Scorecard approach to strategy execution links financial goals to which other three perspectives?
- Customer, Internal Processes, Learning & Growth (Correct answer)
- Operational, Human Capital, Technology
- Market, Innovation, Sustainability
- Risk, Compliance, Governance
Correct answer: Customer, Internal Processes, Learning & Growth
Kaplan and Norton's Balanced Scorecard translates strategy across four perspectives: Financial, Customer, Internal Business Processes, and Learning & Growth.
Question 5: In the context of strategy execution, 'organizational ambidexterity' refers to a firm's ability to:
- Operate in two geographic markets simultaneously
- Exploit current capabilities while exploring new opportunities (Correct answer)
- Maintain dual reporting lines in a matrix structure
- Implement both cost leadership and differentiation strategies
Correct answer: Exploit current capabilities while exploring new opportunities
Organizational ambidexterity is the capacity to simultaneously exploit existing competencies for efficiency and explore new innovations for long-term growth.
Question 6: Which tool is most commonly used by strategists to cascade high-level strategic objectives into measurable team-level goals?
- SWOT analysis
- OKRs (Objectives and Key Results) (Correct answer)
- PESTEL framework
- Value chain analysis
Correct answer: OKRs (Objectives and Key Results)
OKRs connect company-wide ambitions to team and individual actions by defining qualitative objectives and specific, measurable key results at each level of the organization.
Question 7: A strategy that is well-formulated but poorly executed is most likely caused by which organizational gap?
- Lack of financial resources
- Absence of a clear mission statement
- Misalignment between structure, culture, and incentives (Correct answer)
- Insufficient market research
Correct answer: Misalignment between structure, culture, and incentives
Strategy execution breaks down when the organizational architecture — including structure, culture, processes, and incentive systems — is not aligned to reinforce the chosen strategy.
CS Organizational Design & Strategy Execution 1
Which organizational structure best supports a company pursuing a multi-business diversification strategy?