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1. Explain what Quinn refers to as the managerial 'classic trap' in strategy formulation.
Answer: Quinn (1988) criticises those who see strategy formulation and implementation as 'the 'classic trap' where despite elaborate planning systems executives in large corporations tend to utilise somewhat similar incremental processes as they manage complex strategy shifts'. The criticism relates to strategy development as an end in itself and in some way see as separate from operational implementation. There is a good deal written on this topic. The Art of Japanese Management (1991), Athos and Pascale, Penguin and Made in Japan, Morita, A. (the founding president of the Sony Corporation) are recommended reading. These texts advocate Japanese management practices with very strong views as to the training of managers and the importance of customer service and operational efficiency.
The owner of a pizza place is considering a new oven in which to bake the pizzas. Oven type A can handle 25 pizzas per hour. The fixed costs associated with oven A are $10,000 and
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