Question

1. a. The appointment of a New Chief Executive Officer in itself is an initiation of strategy. Why do

            you think this is so?

Answer 1

Ans:- Following are the benifit form the appointment of a New Chief Executive Officer in itself is an initiation of strategy:-

1. The Strategy Approach:-CEOs who use this approach believe that their most important job is to create, test, and design the implementation of long-term strategy, extending in some cases into the distant future.

2.The Human-Assets Approach :- CEOs strongly believe that strategy formulation belongs close to the markets, in the business units. According to these CEOs, their primary job is to impart to their organizations certain values, behaviors, and attitudes by closely managing the growth and development of individuals. These executives travel constantly, spending the majority of their time in personnel-related activities such as recruiting, performance reviews, and career mapping.

3.The Expertise Approach:-Executives who lead by using this approach believe that the CEO’s most important responsibility is selecting and disseminating within the corporation an area of expertise that will be a source of competitive advantage. Their schedules show that they devote the majority of their time to activities related to the cultivation and continual improvement of the expertise, such as studying new technological research, analyzing competitors’ products, and meeting with engineers and customers. They often focus on designing programs, systems, and procedures, such as promotion policies and training plans, that reward people who acquire the expertise and share it across the borders of business units and functions. These CEOs tend to hire people who are trained in the expertise, but they also seek candidates who possess flexible minds, lack biases, and demonstrate a willingness to be immersed—indoctrinated is not too strong a word—in the expertise.

4. The Box Approach :-CEOs in this category believe that they can add the most value in their organizations by creating, communicating, and monitoring an explicit set of controls—financial, cultural, or both—that ensure uniform, predictable behaviors and experiences for customers and employees. CEOs who use this approach believe that their companies’ success depends on the ability to provide customers with a consistent and risk-free experience. As a result, these executives spend their days attending to exceptions to their organizations’ controls, such as quarterly results that are below expectations or a project that misses its deadline. In addition, they devote more time than the other types of CEOs to developing detailed, prescriptive policies, procedures, and rewards to reinforce desired behaviors. Finally, these executives tend to value seniority within the organization, often promoting people with many years of service to the corporate team and rarely hiring top-level executives from outside the company.

5.The Change Approach:-Executives in this category are guided by the belief that the CEO’s most critical role is to create an environment of continual reinvention, even if such an environment produces anxiety and confusion, leads to some strategic mistakes, and temporarily hurts financial performance. In contrast to CEOs who employ the strategy approach, these CEOs focus not on a specific point of arrival for their organizations but on the process of getting there. Similarly, their focus contrasts starkly with that of a box leader: Control systems, written reports, planning cycles, policies, and rules do not seem to interest these so-called change agents. Instead, they spend as much as 75% of their time using speeches, meetings, and other forms of communication to motivate members of their organizations to embrace the gestalt of change. They spend their days in the field, meeting with a wide range of stakeholders, from customers to investors to suppliers to employees at virtually all levels of the organization. Not surprisingly, the people they value are usually those who could be called aggressive and independent—people who view their jobs not as entitlements but as opportunities for advancement that must be seized every day. Seniority matters little to the change agent; passion, energy, and an openness to a new, reinvented tomorrow matter much more.