Exam 11: Organizational Structure and Controls

Over time, large and complex organizations must customize their structure to fit their unique strategic needs.

RexMacDonald, Inc., uses a differentiation strategy that relies on cooperation, communication, and sharing of ideas among employees. In order to foster this behavior, RexMacDonald should emphasize strategic controls over financial controls.

The three structural characteristics which differ between organizational structures include all of the following EXCEPT

The multidivisional structure was initially designed to produce three major benefits over the functional form. Which of the following is NOT one of the three benefits?

In most cases, the focus strategy is best managed using a ____ structure.

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

In the chapter Strategic Focus, Hewlett-Packard moved away from its formerly decentralized structure to the cooperative M-form structure. The cooperative M-form requires more centralization to foster cooperation between the separate divisions and across and within business unit divisions.

Typically, an organization using a simple structure would be

Megaline, Inc., follows the competitive form of the multidivisional structure. It has five divisions. One division has not met the rate-of-return goals for the past year. One division has exceeded the rate-of-return goals. The other three divisions met the rate-of-return goals. The headquarters office is making decisions about where to allocate capital in the next year. Which scenario is the MOST likely?

For firms in a vertical complementary alliance (such as between Toyota and its suppliers), it is more difficult to identify the strategic center firm than in a horizontal complementary alliance (e.g., airline alliances).

To implement a related-linked strategy, a firm usually needs an SBU structure.

Wal-Mart's effective strategy/structure configuration is

Andermeyer Jewelers has been in existence since the 1870s. It specializes in high-end jewelry using both colored precious stones and diamonds. Generations of wealthy families have patronized Andermeyer. Andermeyer has been owned and managed by the Andermeyer family since its founding, and has never had more than 20 designers and jewelers in its shop. Andermeyer Jewelers should use the ____ structure.

The most centralized and most costly form of the multidivisional structure is the

Successful implementation of the differentiation strategy requires a structure that

One disadvantage of the functional structure is that

Organizational structures must be both stable and flexible.

A strategic network can be characterized as a loose federation of partners revolving around a strategic center firm.

Discuss the organizational structures used to implement the different business-level strategies.

In the chapter Strategic focus, Hewlett-Packard implemented a _________ strategy using the ______ structure.