Question 1

The simple organizational structure involves highly decentralized decision making.

Accepted Answer

A) True 
 B)False

Question 2

As illustrated in the opening case for Chapter 10, Boeing lost a lot of control and therefore incurred high operating costs for its build out of the 787 Dreamliner, because it ____________ design and manufacturing.

Accepted Answer

A) on-shored 
B) internalized 
C) outsourced 
D) internationalized 
A) on-shored 
B) internalized 
C) outsourced 
D) internationalized

Question 3

When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a ______________ structure.

Accepted Answer

A) divisional 
B) functional 
C) product-market 
D) geographic 
A) divisional 
B) functional 
C) product-market 
D) geographic

Question 4

A barrier-free organization creates successful relationships between internal and external constituencies and sometimes with competitors as well.

Accepted Answer

A) True 
 B)False

Question 5

The most appropriate type of organizational structure to select is dependent upon the product or service the company provides.

Accepted Answer

A) True 
 B)False

Question 6

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 7

According to the text, boundaryless organizational structures are most effective when they replace rather than complement traditional organizational structures.

Accepted Answer

A) True 
 B)False

Question 8

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 9

Outsourcing relieves companies of the requirement to maintain skill levels needed to manufacture essential components.

Accepted Answer

A) True 
 B)False

Question 10

Multidomestic strategies are driven by political and cultural imperatives requiring managers within each country to respond to local conditions.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following activities is not identified structure?

Accepted Answer

A) managerial 
B) executive 
C) social responsibility 
D) administrative 
A) managerial 
B) executive 
C) social responsibility 
D) administrative

Question 12

According to the study by O'Reilly and Tushman, effective ambidextrous structures had all of 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 13

Which of the following is not a primary factor that a large firm with international operations should consider when choosing the appropriate structure for its organization?

Accepted Answer

A) the extent of international expansion 
B) the type of strategy (global, multidomestic, or transnational) 
C) the degree of product diversity 
D) the degree of market diversity 
A) the extent of international expansion 
B) the type of strategy (global, multidomestic, or transnational) 
C) the degree of product diversity 
D) the degree of market diversity

Question 14

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 15

The two vital ongoing activities necessary for creating boundaryless organizations that managers today must concern themselves with are

Accepted Answer

A) financial returns and marketplace value. 
B) market share and shareholder value. 
C) type of structure, mechanisms, processes, and techniques for enhancing permeability. 
D) product marketability and capital structure. 
A) financial returns and marketplace value. 
B) market share and shareholder value. 
C) type of structure, mechanisms, processes, and techniques for enhancing permeability. 
D) product marketability and capital structure.

Question 16

Managing virtual structures requires new and difficult-to-acquire managerial skills.

Accepted Answer

A) True 
 B)False

Question 17

A small firm with a simple structure often fosters creativity and individualism because of its informal atmosphere.

Accepted Answer

A) True 
 B)False

Question 18

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

Question 19

Effective ambidextrous organizations maintain adaptability, which means that

Accepted Answer

A) managers are focused on growth opportunities. 
B) there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated. 
C) divisional-goals are consistent with overall corporate goals. 
D) managers must remain proactive in expanding and/or modifying their product-market scope to anticipate and satisfy market conditions. 
A) managers are focused on growth opportunities. 
B) there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated. 
C) divisional-goals are consistent with overall corporate goals. 
D) managers must remain proactive in expanding and/or modifying their product-market scope to anticipate and satisfy market conditions.

Question 20

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.

The simple organizational structure involves highly decentralized decision making.

As illustrated in the opening case for Chapter 10, Boeing lost a lot of control and therefore incurred high operating costs for its build out of the 787 Dreamliner, because it ____________ design and manufacturing.

When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a ______________ structure.

A barrier-free organization creates successful relationships between internal and external constituencies and sometimes with competitors as well.

The most appropriate type of organizational structure to select is dependent upon the product or service the company provides.

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

According to the text, boundaryless organizational structures are most effective when they replace rather than complement traditional organizational structures.

Functional structures are usually found in organizations where there

Outsourcing relieves companies of the requirement to maintain skill levels needed to manufacture essential components.

Multidomestic strategies are driven by political and cultural imperatives requiring managers within each country to respond to local conditions.

Which of the following activities is not identified structure?

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

Which of the following is not a primary factor that a large firm with international operations should consider when choosing the appropriate structure for its organization?

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

The two vital ongoing activities necessary for creating boundaryless organizations that managers today must concern themselves with are

Managing virtual structures requires new and difficult-to-acquire managerial skills.

A small firm with a simple structure often fosters creativity and individualism because of its informal atmosphere.

Which of the following is not a boundaryless organizational design?

Effective ambidextrous organizations maintain adaptability, which means that

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

The simple organizational structure involves highly decentralized decision making.

As illustrated in the opening case for Chapter 10, Boeing lost a lot of control and therefore incurred high operating costs for its build out of the 787 Dreamliner, because it ____________ design and manufacturing.

When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a ______________ structure.

A barrier-free organization creates successful relationships between internal and external constituencies and sometimes with competitors as well.

The most appropriate type of organizational structure to select is dependent upon the product or service the company provides.

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

According to the text, boundaryless organizational structures are most effective when they replace rather than complement traditional organizational structures.

Functional structures are usually found in organizations where there

Outsourcing relieves companies of the requirement to maintain skill levels needed to manufacture essential components.

Multidomestic strategies are driven by political and cultural imperatives requiring managers within each country to respond to local conditions.

Which of the following activities is not identified structure?

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

Which of the following is not a primary factor that a large firm with international operations should consider when choosing the appropriate structure for its organization?

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

The two vital ongoing activities necessary for creating boundaryless organizations that managers today must concern themselves with are

Managing virtual structures requires new and difficult-to-acquire managerial skills.

A small firm with a simple structure often fosters creativity and individualism because of its informal atmosphere.

Which of the following is not a boundaryless organizational design?

Effective ambidextrous organizations maintain adaptability, which means that

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

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