Question 1

What would be the result if a company were to successfully align its organizational structure with its business-level strategy?

Accepted Answer

A)  Performance will decline. 
B)  Performance will improve. 
C)  Flexibility will improve. 
D)  Stability will decline. 
E)  Bureaucratic controls will improve. 
A)  Performance will decline. 
B)  Performance will improve. 
C)  Flexibility will improve. 
D)  Stability will decline. 
E)  Bureaucratic controls will improve. B

Question 2

Which of the following decisions would most likely be decentralized in a firm's strategy?

Accepted Answer

A)  Local adaptation 
B)  Realization of economies of scale 
C)  Major financial expenditures 
D)  Manufacturing decisions 
E)  Legal issues 
A)  Local adaptation 
B)  Realization of economies of scale 
C)  Major financial expenditures 
D)  Manufacturing decisions 
E)  Legal issues A

Question 3

A firm's vertical differentiation determines where in its hierarchy decision-making power is concentrated. Compare the arguments for decentralization and centralization. Must a business choose one or the other?

Accepted Answer

There are four main arguments for centralization. First, it can facilitate coordination. Second, centralization can help ensure that decisions are consistent with organizational objectives. Third, centralization can avoid the duplication of activities that occurs when similar activities are carried on by various subunits within the organization. Fourth, by concentrating power and authority in one individual or a management team, centralization can give top-level managers the means to bring about needed major organizational changes.
There are five main arguments for decentralization. First, top management can become overburdened when decision-making authority is centralized. Second, motivational research favors decentralization. Third, decentralization permits greater flexibility-more rapid response to environmental changes. Fourth, decentralization can result in better decisions. Fifth, decentralization can increase control and be used to establish relatively autonomous, self-contained subunits within an organization.
The choice between centralization and decentralization is not absolute. Frequently, it makes sense to centralize some decisions and decentralize others, depending on the type of decision and the firm's strategy. Although the choice between centralization and decentralization depends upon the circumstances being considered, a few important generalizations can be made. First, decisions regarding overall firm strategy, major financial expenditures, financial objectives, and legal issues are centralized at the senior-management level in most organizations. Functional decisions relating to production, marketing, R&D, and human resource management may or may not be centralized depending on the firm's strategy and environmental conditions. Second, when the realization of economies of scale is an important factor, there tends to be greater centralization. Purchasing and manufacturing decisions are often centralized in an attempt to eliminate duplication and realize scale economies. In contrast, sales decisions tend to be more decentralized because economies of scale are less of a consideration here. Third, when local adaptation is important, decentralization is typically favored. When there are substantial differences between conditions in local markets, marketing and sales decisions will often be decentralized to local marketing and sales managers

Question 4

What is the role of output controls in a firm with a minimal need for integration?

Accepted Answer

A)  Controls in the form of budgets are used to allocate financial resources to each function and control spending by the functions. 
B)  The CEO using personal supervision to influence the behavior of functional heads. 
C)  May reduce the need for personal controls and bureaucratic rules. 
D)  Allow the firm to operate with a flatter organization structure and wider spans of control. 
E)  Used to assess how well a function is performing. 
A)  Controls in the form of budgets are used to allocate financial resources to each function and control spending by the functions. 
B)  The CEO using personal supervision to influence the behavior of functional heads. 
C)  May reduce the need for personal controls and bureaucratic rules. 
D)  Allow the firm to operate with a flatter organization structure and wider spans of control. 
E)  Used to assess how well a function is performing.

Question 5

Identify and discuss the three building blocks of organizational structure.

Accepted Answer

Organizational structure assigns employe

Question 6

At FastFries, a fast-food restaurant, rules are published in all employee areas, explaining expectations regarding arrival time, lunch breaks, when to take shorter breaks, and when to socialize. This is an example of:

Accepted Answer

A)  output control. 
B)  personal control. 
C)  bureaucratic control. 
D)  conversion activities. 
E)  strategic competencies. 
A)  output control. 
B)  personal control. 
C)  bureaucratic control. 
D)  conversion activities. 
E)  strategic competencies.

Question 7

In the multidivisional structure, each division typically contains only a partial set of value-chain activities.

Accepted Answer

A) True 
 B)False

Question 8

Organizations strive to control employees' behavior by linking which of the following systems to their control systems?

Accepted Answer

A)  Disciplinary 
B)  Disincentive 
C)  Reporting 
D)  Administrative 
E)  Incentive 
A)  Disciplinary 
B)  Disincentive 
C)  Reporting 
D)  Administrative 
E)  Incentive

Question 9

At LittleHippo, an online retail company, the work environment is playful. Employees often get their pictures taken wearing silly wigs and masks. This atmosphere is part of the company's:

Accepted Answer

A)  ​organizational density. 
B)  ​organizational structure. 
C)  ​organizational culture. 
D)  ​strategic control systems. 
E)  ​competitive environment. 
A)  ​organizational density. 
B)  ​organizational structure. 
C)  ​organizational culture. 
D)  ​strategic control systems. 
E)  ​competitive environment.

Question 10

Which of the following is an example where a low integration control system would work best?

Accepted Answer

A)  A high-tech firm that needs to change to meet customer demands 
B)  A chemical company looking to diversify its existing product line with products that are similar 
C)  A construction company looking to diversify its existing service line with services that are unrelated 
D)  An apparel company pursuing a differentiation strategy 
E)  A manufacturing company looking to expand into other markets 
A)  A high-tech firm that needs to change to meet customer demands 
B)  A chemical company looking to diversify its existing product line with products that are similar 
C)  A construction company looking to diversify its existing service line with services that are unrelated 
D)  An apparel company pursuing a differentiation strategy 
E)  A manufacturing company looking to expand into other markets

Question 11

​An important purpose of control systems is to motivate employees to work toward increasing efficiency, quality, innovation, and responsiveness to customers.

Accepted Answer

A) True 
 B)False

Question 12

List and describe three ways of achieving control within an organization.

Accepted Answer

There are several main ways of achieving

Question 13

Which form of control would you MOST likely find in a voluntary or charity organization?

Accepted Answer

A)  Bureaucratic control through rules and procedures 
B)  Control through norms and values 
C)  Financial control through accurate financial statements 
D)  Output control, since it is the cheapest 
E)  Incentive systems to motivate employees 
A)  Bureaucratic control through rules and procedures 
B)  Control through norms and values 
C)  Financial control through accurate financial statements 
D)  Output control, since it is the cheapest 
E)  Incentive systems to motivate employees

Question 14

Decentralization and centralization decisions are absolute for the entire business, it doesn't make sense to centralize some decisions and decentralize others, depending on the type of decision and the firm's strategy because it causes confusion among business units.

Accepted Answer

A) True 
 B)False

Question 15

A matrix structure would be the most appropriate for which of the following type of firm?

Accepted Answer

A)  A company in which each employee is required to have only one boss 
B)  A company operating in the maturity stage of the industry life cycle 
C)  A company that is dependent on rapid mobilization of resources for competitive success 
D)  A company with a high level of vertical differentiation 
E)  A company in which the speed of product development is not crucial 
A)  A company in which each employee is required to have only one boss 
B)  A company operating in the maturity stage of the industry life cycle 
C)  A company that is dependent on rapid mobilization of resources for competitive success 
D)  A company with a high level of vertical differentiation 
E)  A company in which the speed of product development is not crucial

Question 16

No matter how high a hierarchy grows, one problem associated with efficiency is that information passed from one level to the next can be accidently or deliberately distorted.

Accepted Answer

A) True 
 B)False

Question 17

All employees participate in a project team within a which of the following structures? They are known as two-boss employees.

Accepted Answer

A)  Functional 
B)  Geographic 
C)  Market 
D)  Matrix 
E)  Product 
A)  Functional 
B)  Geographic 
C)  Market 
D)  Matrix 
E)  Product

Question 18

Matrix structure and teams are favored by firms in stable and low technology environments due to the high need for coordination and complex integration mechanisms.

Accepted Answer

A) True 
 B)False

Question 19

Company Alpha wants to give top management time to focus on critical issues through increased delegation and the reduction the amount of information top managers have to process. The company also wants to give employees a greater degree of individual freedom and control over their work. The best vertical differentiation option for Company Alpha is centralization.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is NOT a strategy required for a company with a need for high integration?

Accepted Answer

A)  Business-level strategy involves differentiation through the introduction of new and/or improved product offerings. 
B)  Different functions will be assigned different output targets, depending on their specific tasks. 
C)  Temporary teams are formed to oversee the coordination, development and introduction of a new product. 
D)  Foster informal knowledge networks. 
E)  There is an ongoing need to coordinate the R&D, production, and marketing functions of the firm to ensure that new products are developed in a timely manner. 
A)  Business-level strategy involves differentiation through the introduction of new and/or improved product offerings. 
B)  Different functions will be assigned different output targets, depending on their specific tasks. 
C)  Temporary teams are formed to oversee the coordination, development and introduction of a new product. 
D)  Foster informal knowledge networks. 
E)  There is an ongoing need to coordinate the R&D, production, and marketing functions of the firm to ensure that new products are developed in a timely manner.

What would be the result if a company were to successfully align its organizational structure with its business-level strategy?

Which of the following decisions would most likely be decentralized in a firm's strategy?

A firm's vertical differentiation determines where in its hierarchy decision-making power is concentrated. Compare the arguments for decentralization and centralization. Must a business choose one or the other?

What is the role of output controls in a firm with a minimal need for integration?

Identify and discuss the three building blocks of organizational structure.

At FastFries, a fast-food restaurant, rules are published in all employee areas, explaining expectations regarding arrival time, lunch breaks, when to take shorter breaks, and when to socialize. This is an example of:

In the multidivisional structure, each division typically contains only a partial set of value-chain activities.

Organizations strive to control employees' behavior by linking which of the following systems to their control systems?

At LittleHippo, an online retail company, the work environment is playful. Employees often get their pictures taken wearing silly wigs and masks. This atmosphere is part of the company's:

Which of the following is an example where a low integration control system would work best?

An important purpose of control systems is to motivate employees to work toward increasing efficiency, quality, innovation, and responsiveness to customers.

List and describe three ways of achieving control within an organization.

Which form of control would you MOST likely find in a voluntary or charity organization?

Decentralization and centralization decisions are absolute for the entire business, it doesn't make sense to centralize some decisions and decentralize others, depending on the type of decision and the firm's strategy because it causes confusion among business units.

A matrix structure would be the most appropriate for which of the following type of firm?

No matter how high a hierarchy grows, one problem associated with efficiency is that information passed from one level to the next can be accidently or deliberately distorted.

All employees participate in a project team within a which of the following structures? They are known as two-boss employees.

Matrix structure and teams are favored by firms in stable and low technology environments due to the high need for coordination and complex integration mechanisms.

Which of the following is NOT a strategy required for a company with a need for high integration?

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: the Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Governance, Social Responsibility, and Ethics

Filters

Exam 12: Implementing Strategy Through Organization

What would be the result if a company were to successfully align its organizational structure with its business-level strategy?

Which of the following decisions would most likely be decentralized in a firm's strategy?

A firm's vertical differentiation determines where in its hierarchy decision-making power is concentrated. Compare the arguments for decentralization and centralization. Must a business choose one or the other?

What is the role of output controls in a firm with a minimal need for integration?

Identify and discuss the three building blocks of organizational structure.

At FastFries, a fast-food restaurant, rules are published in all employee areas, explaining expectations regarding arrival time, lunch breaks, when to take shorter breaks, and when to socialize. This is an example of:

In the multidivisional structure, each division typically contains only a partial set of value-chain activities.

Organizations strive to control employees' behavior by linking which of the following systems to their control systems?

At LittleHippo, an online retail company, the work environment is playful. Employees often get their pictures taken wearing silly wigs and masks. This atmosphere is part of the company's:

Which of the following is an example where a low integration control system would work best?

​An important purpose of control systems is to motivate employees to work toward increasing efficiency, quality, innovation, and responsiveness to customers.

List and describe three ways of achieving control within an organization.

Which form of control would you MOST likely find in a voluntary or charity organization?

Decentralization and centralization decisions are absolute for the entire business, it doesn't make sense to centralize some decisions and decentralize others, depending on the type of decision and the firm's strategy because it causes confusion among business units.

A matrix structure would be the most appropriate for which of the following type of firm?

No matter how high a hierarchy grows, one problem associated with efficiency is that information passed from one level to the next can be accidently or deliberately distorted.

All employees participate in a project team within a which of the following structures? They are known as two-boss employees.

Matrix structure and teams are favored by firms in stable and low technology environments due to the high need for coordination and complex integration mechanisms.

Which of the following is NOT a strategy required for a company with a need for high integration?

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: the Identification of Opportunities and Threats

Internal Analysis: Resources and Competitive Advantage

Competitive Advantage Through Functional-Level Strategies

Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Governance, Social Responsibility, and Ethics

Filters

An important purpose of control systems is to motivate employees to work toward increasing efficiency, quality, innovation, and responsiveness to customers.