Exam 9: Creating Effective Organizational Designs

One of the risks of outsourcing is a loss of cross-functional skills.

When an organization is said to have 'alignment' this means that they have a clear send of how value is being created in the short term and how activities are integrated and properly coordinated.

Which of the following is not a strategic risk of outsourcing?

Which of the following is an advantage of a divisional type of organizational structure?

A major disadvantage of adopting a divisional structure is the tendency for managers to focus on short-term objectives.

If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is

The strategic business unit (SBU) structure is also referred to as the conglomerate structure.

A matrix organization is organized strictly along product lines.

The virtual type of organization is a network of independent companies linked together to share skills, costs, and access to one another's markets.

Discuss how changes in today's workforce and the business environment have led to the increasing use of the boundaryless organizational design.

There is no link between a firm's strategy and its structure.

An advantage of the barrier-free form of organizing is that internal cooperation and shared objectives are not required for it to work.