Exam 16: Organization Structure for Technology Strategy

Organic structures are loosely controlled with hierarchical communication patterns and specialized jobs.

New venture groups are entities that invest a business's money in start-up companies in return for an equity interest in them.

If a company's core venture is strategically important and the core capability is related, the new venture should be:

A disadvantage of corporate venturing is that it can interfere with ongoing operations.

What was 3M attempting to do by changing its structure so that the managers of all units undertaking R&D report to the same senior manager?

What is a reason why so many employees leave to start their own spin-off company?

What can keep an employee from exploiting innovations that were identified while working for another company?

What is most accurate concerning organic structures?

Discuss the main reasons why spin-off companies are formed.

Efforts to make organizations more efficient usually involve the elimination of slack resources because they are viewed as a drag on efficiency.

What is most likely for corporate venture groups?

What was General Motors attempting to do by resisting the pressure to cut R&D in the light of widespread financial pressures?

Business angels are private individuals who invest their own money in new companies.

Which of the following is most likely managed like a corporation?

Which factor is more in-line with the creation of radical innovation?

When companies engage in corporate venturing, they usually need to take the strategy of a parent firm into consideration and can't maximize financial returns, like independent venture capitalist.

What advantage of acquisition was Novartis attempting to leverage when it acquired biotechnology pioneer Chiron to gain access to the latter's vaccine development capabilities and to take advantage of the increasing size of the vaccine market that has resulted from fears of Avian flu?

As Microsoft grew, its centralized structure made it slow to take advantage of innovative opportunities. What advantage of decentralization was the company trying to exploit by dividing the company into seven different divisions; each with its own division responsible for profit and loss and a goal of speeding up decision making?

What is an advantage associated with acquisitions?

What are corporate units that create new companies under the umbrella of the parent firm called?