Question 1

A simple organizational structure may lead to problems such as unclear boundaries of authority and few career advancement options.

Accepted Answer

A) True 
 B)False

Question 2

A worldwide product division structure is used when global strategies require that each division be responsible for overall efficiency and performance.

Accepted Answer

A) True 
 B)False

Question 3

Complicated working relationships,intense power struggles,and excessive reliance on group processes are disadvantages of which type of organizational structure?

Accepted Answer

A)  divisional 
B)  matrix 
C)  holding company 
D)  functional 
A)  divisional 
B)  matrix 
C)  holding company 
D)  functional

Question 4

A major disadvantage of the matrix structure is that it duplicates the use of specialized personnel,equipment,and facilities.

Accepted Answer

A) True 
 B)False

Question 5

As firms expand into foreign markets,they generally follow a pattern of change in structure that parallels the changes in their strategies.Which one of the following is not a major contingency that influences the structure they choose?

Accepted Answer

A)  the type of strategy that is driving the company foreign operations 
B)  the research and development budget commitment 
C)  product diversity 
D)  the extent of the company dependence on foreign sales 
A)  the type of strategy that is driving the company foreign operations 
B)  the research and development budget commitment 
C)  product diversity 
D)  the extent of the company dependence on foreign sales

Question 6

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 7

One of the risks of outsourcing is a loss of cross-functional skills.

Accepted Answer

A) True 
 B)False

Question 8

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 9

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 10

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 11

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 12

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 13

A new,simple-structure firm concentrates efforts only on increasing efficiency without regard to its actual products.

Accepted Answer

A) True 
 B)False

Question 14

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 15

In the ambidextrous firm,if managers direct their efforts primarily at _______,they are likely to miss out on promising business opportunities.

Accepted Answer

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

Question 16

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 17

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 18

Which one of the following is not a primary types 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

Question 19

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 20

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

A simple organizational structure may lead to problems such as unclear boundaries of authority and few career advancement options.

A worldwide product division structure is used when global strategies require that each division be responsible for overall efficiency and performance.

Complicated working relationships,intense power struggles,and excessive reliance on group processes are disadvantages of which type of organizational structure?

A major disadvantage of the matrix structure is that it duplicates the use of specialized personnel,equipment,and facilities.

As firms expand into foreign markets,they generally follow a pattern of change in structure that parallels the changes in their strategies.Which one of the following is not a major contingency that influences the structure they choose?

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

One of the risks of outsourcing is a loss of cross-functional skills.

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.

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.

Functional structures are usually found in organizations where there

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

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

A new,simple-structure firm concentrates efforts only on increasing efficiency without regard to its actual products.

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

In the ambidextrous firm,if managers direct their efforts primarily at _______,they are likely to miss out on promising business opportunities.

Effective ambidextrous organizations have alignment,which means that

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

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

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 boundaryless organizational design?

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

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Exam 10: Creating Effective Organizational Designs

A simple organizational structure may lead to problems such as unclear boundaries of authority and few career advancement options.

A worldwide product division structure is used when global strategies require that each division be responsible for overall efficiency and performance.

Complicated working relationships,intense power struggles,and excessive reliance on group processes are disadvantages of which type of organizational structure?

A major disadvantage of the matrix structure is that it duplicates the use of specialized personnel,equipment,and facilities.

As firms expand into foreign markets,they generally follow a pattern of change in structure that parallels the changes in their strategies.Which one of the following is not a major contingency that influences the structure they choose?

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

One of the risks of outsourcing is a loss of cross-functional skills.

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.

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.

Functional structures are usually found in organizations where there

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

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

A new,simple-structure firm concentrates efforts only on increasing efficiency without regard to its actual products.

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

In the ambidextrous firm,if managers direct their efforts primarily at _______,they are likely to miss out on promising business opportunities.

Effective ambidextrous organizations have alignment,which means that

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

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

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 boundaryless organizational design?

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