Question 1

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 2

Which of the following statements about simple organizational structures is false?

Accepted Answer

A) Small firms with a narrow product-market scope will adopt such a structure. 
B) Decision making authority is highly centralized. 
C) There is little specialization of tasks. 
D) Creativity and individualism are rare. 
A) Small firms with a narrow product-market scope will adopt such a structure. 
B) Decision making authority is highly centralized. 
C) There is little specialization of tasks. 
D) Creativity and individualism are rare.

Question 3

The matrix structure attempts to combine the advantages of the functional and product-oriented structure.

Accepted Answer

A) True 
 B)False

Question 4

A major disadvantage of adopting a divisional structure is the tendency for managers to focus on short-term objectives.

Accepted Answer

A) True 
 B)False

Question 5

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the reward systems emphasized traditional unit goals.

Accepted Answer

A) True 
 B)False

Question 6

Nike is a company that makes use of the concept of product expatriates. Product expatriates are

Accepted Answer

A) managers from the home country sent abroad to oversee the marketing of company products. 
B) managers from suppliers who come to work at the company headquarters. 
C) managers of the company sent abroad to work at the plants of its suppliers. 
D) local nationals hired by the company in the countries from which it sources products. 
A) managers from the home country sent abroad to oversee the marketing of company products. 
B) managers from suppliers who come to work at the company headquarters. 
C) managers of the company sent abroad to work at the plants of its suppliers. 
D) local nationals hired by the company in the countries from which it sources products.

Question 7

One major advantage of the holding company form of organization structure is that it minimizes the duplication of functional activities between product lines.

Accepted Answer

A) True 
 B)False

Question 8

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 9

In large organizations, a strategy of diversification requires a need to reorganize around ______________ or _____________.

Accepted Answer

A) product lines; geographic markets 
B) product lines; competition 
C) competitor lines; geographic markets 
D) distribution lines; competitor markets 
A) product lines; geographic markets 
B) product lines; competition 
C) competitor lines; geographic markets 
D) distribution lines; competitor markets

Question 10

When evaluating structure and organizational design, managers must consider the appropriateness of the type of organizational structure and they need to assess the mechanisms, processes, and techniques that will be most helpful in enforcing internal and external boundaries.

Accepted Answer

A) True 
 B)False

Question 11

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 12

If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is a(n) ______________ structure.

Accepted Answer

A) worldwide functional 
B) worldwide product division 
C) worldwide matrix 
D) international division 
A) worldwide functional 
B) worldwide product division 
C) worldwide matrix 
D) international division

Question 13

If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is a(n) ______________ structure.

Accepted Answer

A) worldwide functional 
B) worldwide product division 
C) worldwide matrix 
D) international division 
A) worldwide functional 
B) worldwide product division 
C) worldwide matrix 
D) international division

Question 14

A major disadvantage of the functional organizational structure is that it often leads to silos in which departments view themselves as isolated, self-contained units with little need for interaction and coordination with other departments.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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

Question 17

According to author, Jeffrey Pfeffer, which of the following is not an advantage of teams?

Accepted Answer

A) Teams interact so closely and therefore coordination and integration becomes unnecessary. 
B) Teams substitute peer-based control for hierarchical control of work. 
C) Teams often develop more creative solutions, because they share. 
D) Teams permit the absorption of administrative tasks previously performed by specialists. 
A) Teams interact so closely and therefore coordination and integration becomes unnecessary. 
B) Teams substitute peer-based control for hierarchical control of work. 
C) Teams often develop more creative solutions, because they share. 
D) Teams permit the absorption of administrative tasks previously performed by specialists.

Question 18

Ambidextrous organizational designs are useful for firms that wish to create modest, incremental innovations at the same time as dramatic, breakthrough innovation. This is done by maintaining adaptability and alignment of values and coordination across organizational activities.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is not a disadvantage of a divisional type of organizational structure?

Accepted Answer

A) It can be very expensive compared to a functional organizational structure. 
B) There is a strong tendency for divisions to focus on short-term performance. 
C) There can be dysfunctional competition among divisions. 
D) There is separation of strategic and operating control. 
A) It can be very expensive compared to a functional organizational structure. 
B) There is a strong tendency for divisions to focus on short-term performance. 
C) There can be dysfunctional competition among divisions. 
D) There is separation of strategic and operating control.

Question 20

Which of the following is an advantage of a divisional type of organizational structure?

Accepted Answer

A) efficient use of managerial and technical talent 
B) an enhanced ability to respond quickly to changes in the external environment 
C) high degree of emphasis on long-term performance 
D) uniformity in image and quality across divisions 
A) efficient use of managerial and technical talent 
B) an enhanced ability to respond quickly to changes in the external environment 
C) high degree of emphasis on long-term performance 
D) uniformity in image and quality across divisions

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

Which of the following statements about simple organizational structures is false?

The matrix structure attempts to combine the advantages of the functional and product-oriented structure.

A major disadvantage of adopting a divisional structure is the tendency for managers to focus on short-term objectives.

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the reward systems emphasized traditional unit goals.

Nike is a company that makes use of the concept of product expatriates. Product expatriates are

One major advantage of the holding company form of organization structure is that it minimizes the duplication of functional activities between product lines.

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

In large organizations, a strategy of diversification requires a need to reorganize around __ or _.

When evaluating structure and organizational design, managers must consider the appropriateness of the type of organizational structure and they need to assess the mechanisms, processes, and techniques that will be most helpful in enforcing internal and external boundaries.

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

If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is a(n) ______________ structure.

If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is a(n) ______________ structure.

A major disadvantage of the functional organizational structure is that it often leads to silos in which departments view themselves as isolated, self-contained units with little need for interaction and coordination with other departments.

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

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

According to author, Jeffrey Pfeffer, which of the following is not an advantage of teams?

Ambidextrous organizational designs are useful for firms that wish to create modest, incremental innovations at the same time as dramatic, breakthrough innovation. This is done by maintaining adaptability and alignment of values and coordination across organizational activities.

Which of the following is not a disadvantage of a divisional type of organizational structure?

Which of the following is an advantage of a divisional type of organizational structure?

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms 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

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

Which of the following statements about simple organizational structures is false?

The matrix structure attempts to combine the advantages of the functional and product-oriented structure.

A major disadvantage of adopting a divisional structure is the tendency for managers to focus on short-term objectives.

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the reward systems emphasized traditional unit goals.

Nike is a company that makes use of the concept of product expatriates. Product expatriates are

One major advantage of the holding company form of organization structure is that it minimizes the duplication of functional activities between product lines.

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

In large organizations, a strategy of diversification requires a need to reorganize around ______________ or _____________.

When evaluating structure and organizational design, managers must consider the appropriateness of the type of organizational structure and they need to assess the mechanisms, processes, and techniques that will be most helpful in enforcing internal and external boundaries.

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

If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is a(n) ______________ structure.

If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is a(n) ______________ structure.

A major disadvantage of the functional organizational structure is that it often leads to silos in which departments view themselves as isolated, self-contained units with little need for interaction and coordination with other departments.

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

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

According to author, Jeffrey Pfeffer, which of the following is not an advantage of teams?

Ambidextrous organizational designs are useful for firms that wish to create modest, incremental innovations at the same time as dramatic, breakthrough innovation. This is done by maintaining adaptability and alignment of values and coordination across organizational activities.

Which of the following is not a disadvantage of a divisional type of organizational structure?

Which of the following is an advantage of a divisional type of organizational structure?

Strategic Management: Creating Competitive Advantages

Analyzing the External Environment of the Firm: Creating Competitive Advantages

Assessing the Internal Environment of the Firm

Recognizing a Firms Intellectual Assets: Moving Beyond a Firms 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

In large organizations, a strategy of diversification requires a need to reorganize around __ or _.