Question 1

Which of the following is not an advantage of a strategic business unit (SBU) type of organizational structure?

Accepted Answer

A)  Divisions with similar products, markets, or technologies are formed into homogeneous groups that can achieve synergies. 
B)  Divisional executives can respond quickly to market changes and opportunities. 
C)  Planning and control by the corporate office is more manageable. 
D)  The corporate office is more removed from the individual divisions. 
A)  Divisions with similar products, markets, or technologies are formed into homogeneous groups that can achieve synergies. 
B)  Divisional executives can respond quickly to market changes and opportunities. 
C)  Planning and control by the corporate office is more manageable. 
D)  The corporate office is more removed from the individual divisions.

Question 2

In a simple structure where the owner manager makes most of the important decisions, extensive rules and regulations are used to maintain order.

Accepted Answer

A) True 
 B)False

Question 3

What is the name of the practice that many modular organization use to grow?

Accepted Answer

A)  operational effectiveness 
B)  outsourcing 
C)  strategic leveraging 
D)  strategic enabling 
A)  operational effectiveness 
B)  outsourcing 
C)  strategic leveraging 
D)  strategic enabling

Question 4

In an ambidextrous firm, if too much focus is placed on ________, the firm with suffer low profitability in the short run.

Accepted Answer

A) alignment 
B)  adaptability 
C)  structure 
D)  opportunities 
A) alignment 
B)  adaptability 
C)  structure 
D)  opportunities

Question 5

In a barrier-free organization, differences in skills, authority, and talent disappear.

Accepted Answer

A) True 
 B)False

Question 6

To enhance integration and control of related product market activities, the functional structure minimizes centralization.

Accepted Answer

A) True 
 B)False

Question 7

What advantages does outsourcing not provide an organization?

Accepted Answer

A)  accessing best in class goods and services 
B)  enabling rapid expansion with relatively low capital investment 
C)  focusing scarce resources on core competencies 
D)  improved buyer positioning 
A)  accessing best in class goods and services 
B)  enabling rapid expansion with relatively low capital investment 
C)  focusing scarce resources on core competencies 
D)  improved buyer positioning

Question 8

The strategy and structure of a firm change as the firm increases in size, diversifies into new product markets, and limits its geographic scope.

Accepted Answer

A) True 
 B)False

Question 9

A strategy of related diversification requires a need to reorganize only around product lines. This leads to a divisional structure.

Accepted Answer

A) True 
 B)False

Question 10

According to the study by O'Reilly and Tushman, effective ambidextrous structures had all the following attributes except

Accepted Answer

A)  a clear and compelling vision. 
B)  managerial efforts were highly focused on revenue enhancement. 
C)  cross-fertilization among business units. 
D)  established units were shielded from the distractions of launching new businesses. 
A)  a clear and compelling vision. 
B)  managerial efforts were highly focused on revenue enhancement. 
C)  cross-fertilization among business units. 
D)  established units were shielded from the distractions of launching new businesses.

Question 11

Virtual organizations ________ whereas modular organizations ________.

Accepted Answer

A)  are usually permanent; are usually temporary 
B)  accept interdependent destinies; pursue collective strategies 
C)  pursue collective strategies; forfeit strategic control 
D)  give up part of their strategic control; retain full strategic control 
A)  are usually permanent; are usually temporary 
B)  accept interdependent destinies; pursue collective strategies 
C)  pursue collective strategies; forfeit strategic control 
D)  give up part of their strategic control; retain full strategic control

Question 12

Which of the following is not a disadvantage of virtual structures?

Accepted Answer

A)  difficulty in individual and organizational knowledge sharing 
B)  potential loss of operational control among partners 
C)  loss of strategic control over emerging technology 
D)  difficulty in determining where one company ends and another begins due to close interdependencies 
A)  difficulty in individual and organizational knowledge sharing 
B)  potential loss of operational control among partners 
C)  loss of strategic control over emerging technology 
D)  difficulty in determining where one company ends and another begins due to close interdependencies

Question 13

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

Accepted Answer

A)  loss of critical skills 
B)  loss of cross-functional skills 
C)  loss of control over a supplier 
D)  loss of nonvital functions 
A)  loss of critical skills 
B)  loss of cross-functional skills 
C)  loss of control over a supplier 
D)  loss of nonvital functions

Question 14

Organizations are increasingly using teams for many reasons. The difference between a good team and an outstanding team has been found to be

Accepted Answer

A)  the combined technical skills of the members. 
B)  similarities in the way team members solve problems. 
C)  the way team members treat each other. 
D)  similarities in the age and experience of team member. 
A)  the combined technical skills of the members. 
B)  similarities in the way team members solve problems. 
C)  the way team members treat each other. 
D)  similarities in the age and experience of team member.

Question 15

When an organization with a functional structure diversifies into related product-markets, it generally

Accepted Answer

A)  maintains its functional structure. 
B)  develops a divisional structure. 
C)  develops a matrix structure. 
D)  develops a worldwide product-division structure. 
A)  maintains its functional structure. 
B)  develops a divisional structure. 
C)  develops a matrix structure. 
D)  develops a worldwide product-division structure.

Question 16

A matrix organizational structure is characterized by a combination of the ________ structure and ________ structure.

Accepted Answer

A)  functional; divisional 
B)  simple; functional 
C)  simple; divisional 
D)  holding-company; divisional 
A)  functional; divisional 
B)  simple; functional 
C)  simple; divisional 
D)  holding-company; divisional

Question 17

A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to a(n) ________ structure.

Accepted Answer

A)  divisional 
B)  functional 
C)  matrix 
D)  international 
A)  divisional 
B)  functional 
C)  matrix 
D)  international

Question 18

Effective ambidextrous organizations have alignment, which means that

Accepted Answer

A)  employees are rewarded according to both profit and sales growth. 
B)  managers are focused on growth opportunities. 
C)  there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated. 
D)  divisional-level goals are consistent with overall corporate goals. 
A)  employees are rewarded according to both profit and sales growth. 
B)  managers are focused on growth opportunities. 
C)  there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated. 
D)  divisional-level goals are consistent with overall corporate goals.

Question 19

If a firm outsources some parts of its value chain in order to reduce costs and increase quality and at the same time engages in multiple alliances to penetrate new markets, this is anexample of a firm using a ________ of organizational types.

Accepted Answer

A)  combination 
B)  boundaryless consortium 
C)  bounded consortium 
D)  barrier-free collection 
A)  combination 
B)  boundaryless consortium 
C)  bounded consortium 
D)  barrier-free collection

Question 20

Structures help to ensure that ________ are used effectively in accomplishing the mission of the organization.

Accepted Answer

A)  strategies 
B)  relationships 
C)  resources 
D)  boundaries 
A)  strategies 
B)  relationships 
C)  resources 
D)  boundaries

Which of the following is not an advantage of a strategic business unit (SBU) type of organizational structure?

In a simple structure where the owner manager makes most of the important decisions, extensive rules and regulations are used to maintain order.

What is the name of the practice that many modular organization use to grow?

In an ambidextrous firm, if too much focus is placed on ________, the firm with suffer low profitability in the short run.

In a barrier-free organization, differences in skills, authority, and talent disappear.

To enhance integration and control of related product market activities, the functional structure minimizes centralization.

What advantages does outsourcing not provide an organization?

The strategy and structure of a firm change as the firm increases in size, diversifies into new product markets, and limits its geographic scope.

A strategy of related diversification requires a need to reorganize only around product lines. This leads to a divisional structure.

According to the study by O'Reilly and Tushman, effective ambidextrous structures had all the following attributes except

Virtual organizations whereas modular organizations .

Which of the following is not a disadvantage of virtual structures?

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

Organizations are increasingly using teams for many reasons. The difference between a good team and an outstanding team has been found to be

When an organization with a functional structure diversifies into related product-markets, it generally

A matrix organizational structure is characterized by a combination of the structure and structure.

A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to a(n) ________ structure.

Effective ambidextrous organizations have alignment, which means that

If a firm outsources some parts of its value chain in order to reduce costs and increase quality and at the same time engages in multiple alliances to penetrate new markets, this is anexample of a firm using a ________ of organizational types.

Structures help to ensure that ________ are used effectively in accomplishing the mission of the organization.

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 of the following is not an advantage of a strategic business unit (SBU) type of organizational structure?

In a simple structure where the owner manager makes most of the important decisions, extensive rules and regulations are used to maintain order.

What is the name of the practice that many modular organization use to grow?

In an ambidextrous firm, if too much focus is placed on ________, the firm with suffer low profitability in the short run.

In a barrier-free organization, differences in skills, authority, and talent disappear.

To enhance integration and control of related product market activities, the functional structure minimizes centralization.

What advantages does outsourcing not provide an organization?

The strategy and structure of a firm change as the firm increases in size, diversifies into new product markets, and limits its geographic scope.

A strategy of related diversification requires a need to reorganize only around product lines. This leads to a divisional structure.

According to the study by O'Reilly and Tushman, effective ambidextrous structures had all the following attributes except

Virtual organizations ________ whereas modular organizations ________.

Which of the following is not a disadvantage of virtual structures?

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

Organizations are increasingly using teams for many reasons. The difference between a good team and an outstanding team has been found to be

When an organization with a functional structure diversifies into related product-markets, it generally

A matrix organizational structure is characterized by a combination of the ________ structure and ________ structure.

A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to a(n) ________ structure.

Effective ambidextrous organizations have alignment, which means that

If a firm outsources some parts of its value chain in order to reduce costs and increase quality and at the same time engages in multiple alliances to penetrate new markets, this is anexample of a firm using a ________ of organizational types.

Structures help to ensure that ________ are used effectively in accomplishing the mission of the organization.

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

Virtual organizations whereas modular organizations .

A matrix organizational structure is characterized by a combination of the structure and structure.