Question 1

Research shows that structure has a more important influence on strategy than the reverse.

Accepted Answer

A) True 
 B)False  False

Question 2

Companies and business units of large diversified firms using the cost leadership strategy should focus on strategic controls.

Accepted Answer

A) True 
 B)False  False

Question 3

Arnold Schwartz, CEO and founder of Schwartz Engineering, has repeatedly rebuffed efforts by other firms in other countries to draw Schwartz Engineering into strategic alliances.Schwartz Engineering has built its highly successful business around proprietary processes invented by Mr.Schwartz in the 1980s.An advantage would be that Schwartz Engineering would gain assistance from those other firms in meeting other countries' regulatory requirements.Mr.Schwartz is concerned that his firm will be required to share the sources of its competitive advantage with alliance partners.This is a reasonable fear.

Accepted Answer

A) True 
 B)False  True

Question 4

Andermeyer Jewelers, which specializes in high-end jewelry, has been in existence since the 1870s and has served generations of wealthy families.Owned and managed by the Andermeyer family since its founding, it has never had more than 20 designers and jewelers in its shop.Andermeyer Jewelers should use the __________ structure.

Accepted Answer

A)  simple 
B)  functional 
C)  matrix 
D)  network 
A)  simple 
B)  functional 
C)  matrix 
D)  network

Question 5

The noted business historian Alfred Chandler viewed the multidivisional structure as an innovative response to:

Accepted Answer

A)  an emerging professional management philosophy. 
B)  the increasing demand by consumers for both high quality and low prices. 
C)  coordination and control problems. 
D)  a shift toward the global economy. 
A)  an emerging professional management philosophy. 
B)  the increasing demand by consumers for both high quality and low prices. 
C)  coordination and control problems. 
D)  a shift toward the global economy.

Question 6

Internal competition for corporate resources is effective for companies with an unrelated diversification strategy, but dysfunctional for companies with a related constrained strategy.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following organizational structures will emphasize financial controls for headquarters' evaluation of operating units while the operating units will emphasize strategic controls within their units' performance?

Accepted Answer

A)  Functional 
B)  Cooperative M-form 
C)  SBU form 
D)  Competitive M-form 
A)  Functional 
B)  Cooperative M-form 
C)  SBU form 
D)  Competitive M-form

Question 8

The heavy use of integrative mechanisms in the __________ multidivisional organizational structure is intended to achieve __________.

Accepted Answer

A)  cooperative; economies of scope 
B)  competitive; cost efficiencies 
C)  functional; sensitivity to cultural diversity 
D)  SBU; a quick response to local customer needs 
A)  cooperative; economies of scope 
B)  competitive; cost efficiencies 
C)  functional; sensitivity to cultural diversity 
D)  SBU; a quick response to local customer needs

Question 9

Walmart's effective strategy/structure configuration is:

Accepted Answer

A)  cost leadership/functional. 
B)  differentiation/functional. 
C)  related constrained/multidivisional. 
D)  related linked/multidivisional. 
A)  cost leadership/functional. 
B)  differentiation/functional. 
C)  related constrained/multidivisional. 
D)  related linked/multidivisional.

Question 10

Strategy has a more important influence on structure, although once in place, structure influences strategy.

Accepted Answer

A) True 
 B)False

Question 11

Goldenrod National has three divisions, GR1, GR2, and GR3.Each division operates with complete independence.What type of multidivisional structure does Goldenrod use?

Accepted Answer

A)  Cooperative 
B)  Matrix 
C)  Competitive 
D)  SBU 
A)  Cooperative 
B)  Matrix 
C)  Competitive 
D)  SBU

Question 12

The matrix organization has a dual structure combining both functional specialization and business product or project specialization.

Accepted Answer

A) True 
 B)False

Question 13

How does structure affect strategy?

Accepted Answer

A)  Structure does not affect the implementation of chosen strategies but it limits possible future strategies. 
B)  Structure affects the implementation of chosen strategies and expands the possible options for future strategies. 
C)  Structure affects the implementation of chosen strategies but does not impact possible future strategies. 
D)  Structure affects the implementation of chosen strategies and also limits possible future strategies. 
A)  Structure does not affect the implementation of chosen strategies but it limits possible future strategies. 
B)  Structure affects the implementation of chosen strategies and expands the possible options for future strategies. 
C)  Structure affects the implementation of chosen strategies but does not impact possible future strategies. 
D)  Structure affects the implementation of chosen strategies and also limits possible future strategies.

Question 14

Discuss the difference between strategic controls and financial controls, and explain what type of firm might want to use each.

Accepted Answer

Strategic and financial controls are bot

Question 15

Jumbo Industrial Supply has grown from a one-location firm with a restricted product line to a multi-state organization with numerous product lines and a large sales staff.Sales have doubled every year for the last three years.It currently has a simple structure with Jared Smith, the owner-manager, making all major decisions.Jumbo is probably now experiencing or will soon experience:

Accepted Answer

A)  coordination and control problems. 
B)  bureaucratic inefficiencies. 
C)  excessive competition among division managers. 
D)  limited communication among functional specialists. 
A)  coordination and control problems. 
B)  bureaucratic inefficiencies. 
C)  excessive competition among division managers. 
D)  limited communication among functional specialists.

Question 16

Structural stability affects the organization's ability to:

Accepted Answer

A)  resist organizational inertia. 
B)  cope with uncertainty about cause-and-effect relationships in the global economy. 
C)  develop new competitive advantages. 
D)  consistently and predictably manage its daily work routines. 
A)  resist organizational inertia. 
B)  cope with uncertainty about cause-and-effect relationships in the global economy. 
C)  develop new competitive advantages. 
D)  consistently and predictably manage its daily work routines.

Question 17

The integrated cost leadership/differentiation strategy is difficult to implement mostly because:

Accepted Answer

A)  different primary and support activities are emphasized when using cost leadership and differentiation strategies. 
B)  this strategic approach demands more flexibility than most firms can manage. 
C)  the dual reporting relationships required for this strategy slow organizational decision making. 
D)  the cost leadership strategy requires less structured job roles than does the differentiation strategy. 
A)  different primary and support activities are emphasized when using cost leadership and differentiation strategies. 
B)  this strategic approach demands more flexibility than most firms can manage. 
C)  the dual reporting relationships required for this strategy slow organizational decision making. 
D)  the cost leadership strategy requires less structured job roles than does the differentiation strategy.

Question 18

A firm's __________ specifies the work to be done and how to do it given the firm's strategy or strategies.

Accepted Answer

A)  structure 
B)  controls 
C)  culture 
D)  strategy 
A)  structure 
B)  controls 
C)  culture 
D)  strategy

Question 19

Organizational inertia often prompts top management to initiate structural change when organizational performance levels drop.

Accepted Answer

A) True 
 B)False

Question 20

The best multidivisional structure to use depends primarily on what?

Accepted Answer

A)  The corporate culture 
B)  The size of the company in terms of revenue 
C)  The amount of control the owner wants to retain 
D)  The degree of diversification 
A)  The corporate culture 
B)  The size of the company in terms of revenue 
C)  The amount of control the owner wants to retain 
D)  The degree of diversification

Research shows that structure has a more important influence on strategy than the reverse.

Companies and business units of large diversified firms using the cost leadership strategy should focus on strategic controls.

The noted business historian Alfred Chandler viewed the multidivisional structure as an innovative response to:

Internal competition for corporate resources is effective for companies with an unrelated diversification strategy, but dysfunctional for companies with a related constrained strategy.

Which of the following organizational structures will emphasize financial controls for headquarters' evaluation of operating units while the operating units will emphasize strategic controls within their units' performance?

The heavy use of integrative mechanisms in the multidivisional organizational structure is intended to achieve .

Walmart's effective strategy/structure configuration is:

Strategy has a more important influence on structure, although once in place, structure influences strategy.

Goldenrod National has three divisions, GR1, GR2, and GR3.Each division operates with complete independence.What type of multidivisional structure does Goldenrod use?

The matrix organization has a dual structure combining both functional specialization and business product or project specialization.

How does structure affect strategy?

Discuss the difference between strategic controls and financial controls, and explain what type of firm might want to use each.

Structural stability affects the organization's ability to:

The integrated cost leadership/differentiation strategy is difficult to implement mostly because:

A firm's __________ specifies the work to be done and how to do it given the firm's strategy or strategies.

Organizational inertia often prompts top management to initiate structural change when organizational performance levels drop.

The best multidivisional structure to use depends primarily on what?

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 11: Organizational Structure and Controls

Research shows that structure has a more important influence on strategy than the reverse.

Companies and business units of large diversified firms using the cost leadership strategy should focus on strategic controls.

The noted business historian Alfred Chandler viewed the multidivisional structure as an innovative response to:

Internal competition for corporate resources is effective for companies with an unrelated diversification strategy, but dysfunctional for companies with a related constrained strategy.

Which of the following organizational structures will emphasize financial controls for headquarters' evaluation of operating units while the operating units will emphasize strategic controls within their units' performance?

The heavy use of integrative mechanisms in the __________ multidivisional organizational structure is intended to achieve __________.

Walmart's effective strategy/structure configuration is:

Strategy has a more important influence on structure, although once in place, structure influences strategy.

Goldenrod National has three divisions, GR1, GR2, and GR3.Each division operates with complete independence.What type of multidivisional structure does Goldenrod use?

The matrix organization has a dual structure combining both functional specialization and business product or project specialization.

How does structure affect strategy?

Discuss the difference between strategic controls and financial controls, and explain what type of firm might want to use each.

Structural stability affects the organization's ability to:

The integrated cost leadership/differentiation strategy is difficult to implement mostly because:

A firm's __________ specifies the work to be done and how to do it given the firm's strategy or strategies.

Organizational inertia often prompts top management to initiate structural change when organizational performance levels drop.

The best multidivisional structure to use depends primarily on what?

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Strategic Leadership

Strategic Entrepreneurship

Filters

The heavy use of integrative mechanisms in the multidivisional organizational structure is intended to achieve .