1Why firms adhere to or deviate from their strategic plans is poorly understood. 2However, theory andlimited research suggest that the process through which such plans emerge may play a part. 3In particular, top management decision-sharing- consensus-oriented, team-based decision-making - may increase the likelihood that firms will adhere to their plans, because those involved in the decision-making may be more committed to the chosen course of action, thereby increasing the likelihood that organizations will subsequently adhere to their plans.
1 However, the
relationship between top management decision-sharing and adherence to plans may
be affected by a firm's strategic mission (its fundamental approach to
increasing sales revenue and market share, and generating cash flow and
short-term profits). 2At
one end of the strategic mission continuum, "build" strategies are
pursued when a firm desires to increase its market share and is willing to
sacrifice short-term profits to do so. 3At
the other end, "harvest" strategies are used when a firm is willing
to sacrifice market share for short-term profitability and cash-flow
maximization. 4Research and theory suggest that
top management decision-sharing may have a more positive relationship with
adherence to plans among firms with harvest strategies than among firms with
build strategies. 5In a study of strategic practices
in several large firms, managers in harvest strategy scenarios were more able
to adhere to their business plans. 6As
one of the managers in the study explained it, this is partly because "typically
all a manager has to do when implementing a harvest strategy is that which was
done last year." 7Additionally,
managers under harvest strategies mayhave fewer strategic options than do those under build strategies; it may therefore
be easier to reach agreement on a particular course of action through
decision-sharing, which will in turn tend to promote adherence to plans. 8Conversely,
in a "build" strategy scenario, individual leadership, rather than
decision-sharing, may promote adherence to plans. 9Build
strategies - which typically require leaders with strong personal visions for a
firm's future, rather than the negotiated compromise of the team-based decision
- may be most closely adhered to when implemented in the context of a clear
strategic vision of an individual leader, rather than through the practice of
decision-sharing.
Which of the following best describes the function of the first sentence (highlighted text) of the second paragraph of the passage?
A) To answer a question posed in the first sentence of the passage about why firms adopt particular strategic missions
B) To refute an argument made in the first paragraph about how top management decision-making affects whether firms will adhere to their strategic plans
C) To provide evidence supporting a theory introduced in the first paragraph about what makes firms adhere to or deviate from their strategic plants
D) To qualify an assertion made in the preceding sentence (第一段第三句) about how top management decision-making affects the likelihood that firms will adhere to their strategic plans
E) To explain a distinction relied on in the second paragraph (第二段) regarding two different kinds of strategic missions
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