Question 1

Which one of the following is not a primary type of organizational structures used to manage the international operations of a company?

Accepted Answer

A)  international division 
B)  worldwide matrix 
C)  geographic-area division 
D)  home country product division 
A)  international division 
B)  worldwide matrix 
C)  geographic-area division 
D)  home country product division D

Question 2

Which of the following is not a boundaryless organizational design?

Accepted Answer

A)  virtual 
B)  modular 
C)  matrix 
D)  barrier-free 
A)  virtual 
B)  modular 
C)  matrix 
D)  barrier-free C

Question 3

One of the disadvantages of divisional structure design is that they divide ________, ________, and knowledge. They insulate divisional managers from other divisional managers thus inhibiting their ability to coordinate activities, share resources, and learn from each other.

Accepted Answer

A)  land, buildings 
B)  assets, structures 
C)  people, resources 
D)  people, buildings 
A)  land, buildings 
B)  assets, structures 
C)  people, resources 
D)  people, buildings C

Question 4

Which of the following is considered an advantage of a matrix structure?

Accepted Answer

A)  the layering of matrices 
B)  increased clarity in reporting relationships 
C)  increased responsiveness to the market 
D)  fewer power struggles and reduced conflict 
A)  the layering of matrices 
B)  increased clarity in reporting relationships 
C)  increased responsiveness to the market 
D)  fewer power struggles and reduced conflict

Question 5

Strategic business unit (SBU) and holding company structures result from extensive

Accepted Answer

A)  diversification. 
B)  vertical integration. 
C)  international expansion. 
D)  organizational flattening. 
A)  diversification. 
B)  vertical integration. 
C)  international expansion. 
D)  organizational flattening.

Question 6

The phrase that best defines a virtual organization is a(n)

Accepted Answer

A)  dot.com company. 
B)  type of modular structure. 
C)  organization that uses information technology to integrate different functions. 
D)  continually evolving network of independent companies. 
A)  dot.com company. 
B)  type of modular structure. 
C)  organization that uses information technology to integrate different functions. 
D)  continually evolving network of independent companies.

Question 7

Which of the following is not a disadvantage of the barrier-free form of organization?

Accepted Answer

A)  Lack of strong leadership can lead to coordination problems. 
B)  Democratic process can be time-consuming and difficult to manage. 
C)  Additional integration issues result in a slower response to market changes. 
D)  If trust among employees is not sufficiently high, organizational performance may suffer. 
A)  Lack of strong leadership can lead to coordination problems. 
B)  Democratic process can be time-consuming and difficult to manage. 
C)  Additional integration issues result in a slower response to market changes. 
D)  If trust among employees is not sufficiently high, organizational performance may suffer.

Question 8

Organizations that make it to the growth stage, design strategies to

Accepted Answer

A)  reduce the tendency to increase operational scope. 
B)  leave exiting product-market domains. 
C)  increase the overall scope of operations. 
D)  reduce the commitment to new product-market domains. 
A)  reduce the tendency to increase operational scope. 
B)  leave exiting product-market domains. 
C)  increase the overall scope of operations. 
D)  reduce the commitment to new product-market domains.

Question 9

Three major contingencies that influence the chosen structure of a company are: the type of strategy that drives its foreign operations, its product diversity, and the extent to whichthecompany is dependent on foreign sales.

Accepted Answer

A) True 
 B)False

Question 10

An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?

Accepted Answer

A)  functional structure 
B)  matrix structure 
C)  strategic business unit structure 
D)  holding company structure 
A)  functional structure 
B)  matrix structure 
C)  strategic business unit structure 
D)  holding company structure

Question 11

According to author Jeffrey Pfeffer, the advantages of teams are that employees control themselves, develop more creative solutions to problems, and permit the absorption of administrativetasks previously performed by specialists.

Accepted Answer

A) True 
 B)False

Question 12

Jack Welch, former CEO of GE, believes that all internal and external organizational boundaries should vanish completely.

Accepted Answer

A) True 
 B)False

Question 13

Tools and techniques used to achieve effective coordination and integration of key activities in an organization include all the following except

Accepted Answer

A)  horizontal organization structures. 
B)  common culture and shared values. 
C)  horizontal diversification. 
D)  communications and information technologies. 
A)  horizontal organization structures. 
B)  common culture and shared values. 
C)  horizontal diversification. 
D)  communications and information technologies.

Question 14

Important advantages of a holding company structure include

Accepted Answer

A)  savings in personnel and overhead expenses associated with a small corporate office. 
B)  a high level of awareness at the corporate office of issues facing individual divisions. 
C)  a high level of control of division executives by executives at the corporate level. 
D)  gaining synergistic benefits across businesses. 
A)  savings in personnel and overhead expenses associated with a small corporate office. 
B)  a high level of awareness at the corporate office of issues facing individual divisions. 
C)  a high level of control of division executives by executives at the corporate level. 
D)  gaining synergistic benefits across businesses.

Question 15

Whole Foods tried to overcome some of the limitations of a divisional structure by

Accepted Answer

A)  decentralizing key activities. 
B)  redistributing financial support. 
C)  centralizing the purchasing function. 
D)  reducing power conflicts. 
A)  decentralizing key activities. 
B)  redistributing financial support. 
C)  centralizing the purchasing function. 
D)  reducing power conflicts.

Question 16

Firms that place too strong a priority on either adaptability or alignment can expect short term gains only.

Accepted Answer

A) True 
 B)False

Question 17

Global start-ups occur after a corporation has exhausted all other possibilities for domestic growth.

Accepted Answer

A) True 
 B)False

Question 18

Strategic business unit (SBU) structures are best suited for corporations pursuing ________, whereas holding company structures are best suited for companies with ________ strategies.

Accepted Answer

A)  product-market diversification; international 
B)  international diversification; product-market 
C)  related diversification; unrelated diversification 
D)  unrelated diversification; related diversification 
A)  product-market diversification; international 
B)  international diversification; product-market 
C)  related diversification; unrelated diversification 
D)  unrelated diversification; related diversification

Question 19

Functional structures are usually found in organizations where there

Accepted Answer

A)  is high volume production. 
B)  are unrelated product lines or service offerings. 
C)  is very little vertical integration. 
D)  there exists a strong need to decentralize decision making. 
A)  is high volume production. 
B)  are unrelated product lines or service offerings. 
C)  is very little vertical integration. 
D)  there exists a strong need to decentralize decision making.

Question 20

One of the reasons that Asian conglomerate business groups continue to grow and those in the United States are seen to be unfocused and unlikely to succeed is that

Accepted Answer

A)  Asian conglomerates have a single corporation with a wide set of wholly owned subsidiaries. 
B)  U.S. conglomerates are made up of a set of legally separate corporations, each with its own board of directors and shareholders. 
C)  Asian conglomerates are made up of a set of legally separate corporations, each with its own board of directors and shareholders. 
D)  Asian conglomerates are structured similarly to those in the United States and Europe. 
A)  Asian conglomerates have a single corporation with a wide set of wholly owned subsidiaries. 
B)  U.S. conglomerates are made up of a set of legally separate corporations, each with its own board of directors and shareholders. 
C)  Asian conglomerates are made up of a set of legally separate corporations, each with its own board of directors and shareholders. 
D)  Asian conglomerates are structured similarly to those in the United States and Europe.

Which one of the following is not a primary type of organizational structures used to manage the international operations of a company?

Which of the following is not a boundaryless organizational design?

One of the disadvantages of divisional structure design is that they divide , , and knowledge. They insulate divisional managers from other divisional managers thus inhibiting their ability to coordinate activities, share resources, and learn from each other.

Which of the following is considered an advantage of a matrix structure?

Strategic business unit (SBU) and holding company structures result from extensive

The phrase that best defines a virtual organization is a(n)

Which of the following is not a disadvantage of the barrier-free form of organization?

Organizations that make it to the growth stage, design strategies to

Three major contingencies that influence the chosen structure of a company are: the type of strategy that drives its foreign operations, its product diversity, and the extent to whichthecompany is dependent on foreign sales.

An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?

According to author Jeffrey Pfeffer, the advantages of teams are that employees control themselves, develop more creative solutions to problems, and permit the absorption of administrativetasks previously performed by specialists.

Jack Welch, former CEO of GE, believes that all internal and external organizational boundaries should vanish completely.

Tools and techniques used to achieve effective coordination and integration of key activities in an organization include all the following except

Important advantages of a holding company structure include

Whole Foods tried to overcome some of the limitations of a divisional structure by

Firms that place too strong a priority on either adaptability or alignment can expect short term gains only.

Global start-ups occur after a corporation has exhausted all other possibilities for domestic growth.

Strategic business unit (SBU) structures are best suited for corporations pursuing , whereas holding company structures are best suited for companies with strategies.

Functional structures are usually found in organizations where there

One of the reasons that Asian conglomerate business groups continue to grow and those in the United States are seen to be unfocused and unlikely to succeed is that

Strategic Management Creating Competitive Advantages

Analyzing the External Environment of the Firm Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's Tangible Resources

Business-Level Strategy Creating and Sustaining Competitive Advantages

Corporate-Level Strategy Creating Value through Diversification

International Strategy Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Strategic Leadership Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

Exam 10: Creating Effective Organizational Designs

Which one of the following is not a primary type of organizational structures used to manage the international operations of a company?

Which of the following is not a boundaryless organizational design?

One of the disadvantages of divisional structure design is that they divide ________, ________, and knowledge. They insulate divisional managers from other divisional managers thus inhibiting their ability to coordinate activities, share resources, and learn from each other.

Which of the following is considered an advantage of a matrix structure?

Strategic business unit (SBU) and holding company structures result from extensive

The phrase that best defines a virtual organization is a(n)

Which of the following is not a disadvantage of the barrier-free form of organization?

Organizations that make it to the growth stage, design strategies to

Three major contingencies that influence the chosen structure of a company are: the type of strategy that drives its foreign operations, its product diversity, and the extent to whichthecompany is dependent on foreign sales.

An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?

According to author Jeffrey Pfeffer, the advantages of teams are that employees control themselves, develop more creative solutions to problems, and permit the absorption of administrativetasks previously performed by specialists.

Jack Welch, former CEO of GE, believes that all internal and external organizational boundaries should vanish completely.

Tools and techniques used to achieve effective coordination and integration of key activities in an organization include all the following except

Important advantages of a holding company structure include

Whole Foods tried to overcome some of the limitations of a divisional structure by

Firms that place too strong a priority on either adaptability or alignment can expect short term gains only.

Global start-ups occur after a corporation has exhausted all other possibilities for domestic growth.

Strategic business unit (SBU) structures are best suited for corporations pursuing ________, whereas holding company structures are best suited for companies with ________ strategies.

Functional structures are usually found in organizations where there

One of the reasons that Asian conglomerate business groups continue to grow and those in the United States are seen to be unfocused and unlikely to succeed is that

Strategic Management Creating Competitive Advantages

Analyzing the External Environment of the Firm Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firm's Intellectual Assets Moving beyond a Firm's Tangible Resources

Business-Level Strategy Creating and Sustaining Competitive Advantages

Corporate-Level Strategy Creating Value through Diversification

International Strategy Creating Value in Global Markets

Entrepreneurial Strategy and Competitive Dynamics

Strategic Control and Corporate Governance

Strategic Leadership Creating a Learning Organization and an Ethical Organization

Managing Innovation and Fostering Corporate Entrepreneurship

Filters

One of the disadvantages of divisional structure design is that they divide , , and knowledge. They insulate divisional managers from other divisional managers thus inhibiting their ability to coordinate activities, share resources, and learn from each other.

Strategic business unit (SBU) structures are best suited for corporations pursuing , whereas holding company structures are best suited for companies with strategies.