CS Organizational Design & Strategy Execution

Question 1

Which organizational structure best supports a company pursuing a multi-business diversification strategy?

Accepted Answer

Divisional (M-form) structure

Answer

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?

Accepted Answer

Shared values

Answer

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:

Accepted Answer

Increasing span of control

Answer

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?

Accepted Answer

Customer, Internal Processes, Learning & Growth

Answer

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:

Accepted Answer

Exploit current capabilities while exploring new opportunities

Answer

Organizational ambidexterity is the capacity to simultaneously exploit existing competencies for efficiency and explore new innovations for long-term growth.

(CS) Certified Strategist Practice Test

(CS) Certified Strategist Practice Test

CS Organizational Design & Strategy Execution