Reading 3.1: Chakravarthy and Lorange

According to Balaji Chakravarthy and Peter Lorange in their article ‘Managing the strategy process’ (1991, in De Wit & Meyer, 2010, Reading 3.1), what is the difference between objectives and goals?
1. Objectives refer to the company’s strategic intent, whereas goals refer to more specific targets
2. Objectives refer to strategic directions for the company as a whole, whereas goals refer to strategic directions at the business unit level
3. Objectives refer to a ten-year financial plan, whereas goals refer to a five-year financial plan
4. Objectives refer to the mission statement, whereas goals refer to a long-term financial plan.
According to Chakravarthy and Lorange (in ‘Managing the strategy process’, 1991, in De Wit & Meyer, 2010, Reading 3.1), an effective strategy process must allow for:
1. Independent decision making, at the business unit level, and initiative of the CEO
2. Intuition in the CEO’s strategic decisions, and realization by improvisation at the lower organizational levels
3. Incrementalism in strategy formation, and innovation in strategy implementation
4. Interactions between the organizational levels, and interactions between the process steps.
According to Chakravarthy and Lorange (in ‘Managing the strategy process’, 1991, in De Wit & Meyer, 2010, Reading 3.1), where does objective setting take place?
1. At the top management and divisional levels
2. At the departmental and functional levels
3. At the functional and business unit levels
4. None of the above.
According to Chakravarthy and Lorange (in ‘Managing the strategy process’, 1991, in De Wit & Meyer, 2010, Reading 3.1), in what steps of the strategy process are functional managers involved?
1. Negotiating strategic plans
2. Strategic programming and budgeting
3. Objective setting and budgeting
4. Objective setting.
What are Chakravarthy and Lorange’s five steps in the strategy process (in ‘Managing the strategy process’, 1991, in De Wit & Meyer, 2010, Reading 3.1)?
1. Conceptualization, formulation, implementation, review, and feedback
2. Planning, leading, commanding, organizing, and controlling
3. Objective setting, strategic programming, budgeting, monitoring, control & learning, and incentives & staffing
4. Top management, division, business unit, function, and staff.
According to Chakravarthy and Lorange (in ‘Managing the strategy process’, 1991, in De Wit & Meyer, 2010, Reading 3.1), what is strategic programming?
1. Part of the final step of their strategy process
2. Strategic programming is similar to scenario planning
3. The cross-functional programs that will implement the chosen strategies
4. The first step in formulating strategy.