L6M9 practice question 12 of 15

According to Foster's Model of Operational Balance, how should business strategy be developed?

Full set: 83 questions

Answer options

A: By senior leaders and filtered down through the company hierarchy

B: Select one member from each department to join a working group and represent the interests of that department

C: Use both formal and informal groups across the organisation Correct answer

D: Designed by senior leaders and updated once a year based on feedback from other members of the organisation

Correct Answer:

C. Use both formal and informal groups across the organisation

Explanation

Foster’s land management-based approach suggests that business strategy should not be dictated from the top down. Instead, it should involve both formal and informal groups throughout the organisation. This helps prevent artificial decision-making and misalignment between leaders and employees. (LO 2.1, See p.77)

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