Deck 10: Strategy Execution-Organizational Structure

Question 1

Managers are grouped according to their expertise in the product divisional structure.

Answer 1

False

Question 2

Which of the following is not an advantage of tall organizations?

A)more effective communication
B)less difficulty in planning
C)increased authority for managers
D)All of the above are advantages.

Answer 2

C

Question 3

Because the functional structure groups specialists and fosters economies of scale,it tends to address cost and quality concerns well.

Answer 3

True

Question 4

Vertical growth refers to an increase in the breadth of an organization's structure.

Question 5

Horizontal growth refers to an increase in the length of the organization's hierarchy.

Question 6

Geographic and product divisional structures are typically more flexible than matrix and functional structures.

Question 7

The product divisional structure is most commonly used in organizations that operate in industries with high rates of technological change.

Question 8

The geographic divisional structure divides the organization's activities into self-contained entities,each responsible for producing,distributing,and selling its own products.

Question 9

Which of the following is not an advantage of flat organizations?

A)lower administrative costs
B)less difficulty in planning
C)increased authority for managers
D)All of the above are advantages.

Question 10

Managers in tall organizations exercise a relatively high degree of control over their subordinates,and authority tends to be relatively centralized.

Question 11

The number of employees reporting to each manager represents that manager's span of control.

Question 12

A flat organization is comprised of many hierarchical levels and narrow spans of control.

Question 13

Strategy implementation considerations should be made before a strategic alternative is selected and then detailed after a strategy is formulated.

Question 14

The formal means by which work is coordinated in an organization is called

A)horizontal growth.
B)vertical growth.
C)span of control.
D)organizational structure.

Question 15

There is no single best organizational structure for firms to seek to attain.

Question 16

The increase in the length of the organization's hierarchy is called

A)horizontal growth.
B)vertical growth.
C)span of control.
D)organizational structure.

Question 17

Increasing both the length and breadth of the organizational structure is called

A)horizontal growth.
B)vertical growth.
C)span of control.
D)None of the above.

Question 18

Coordination and consistency are often strengths in firms with a product divisional structure.

Question 19

The matrix structure tends to be highly decentralized.

Question 20

Corporate restructuring can include such actions as realigning divisions in the firm,reducing the amount of cash under the discretion of senior executives,and acquiring or divesting business units.

Question 21

Which structure groups specialists,fosters economies of scale,and addresses quality concerns well?

A)Functional structure.
B)Product divisional structure.
C)Geographic divisional structure.
D)Matrix structure.

Question 22

There is a clear chain of command in

A)the functional structure.
B)the product divisional structure.
C)the geographic divisional structure.
D)All of the above.

Question 23

Firms that start with only a few employees usually adopt a

A)simple structure.
B)product divisional structure.
C)geographic divisional structure.
D)matrix structure.

Question 24

The structure that combines parts of two other structures is the

A)functional structure.
B)product divisional structure.
C)geographic divisional structure.
D)matrix structure.

Question 25

What are the key considerations for determining the appropriate organizational structure?

Question 26

Profit centers are associated with which organizational structure?

A)Functional structure.
B)Simple structure.
C)Geographic divisional structure.
D)None of the above.

Question 27

What is a functional structure? Why is it so common?

Question 28

What is corporate restructuring? When should it be employed and why?

Question 29

Compare and contrast tall and flat organizations.

Question 30

Which of the following structures tends to be the most centralized?

A)functional structure
B)product divisional structure
C)geographic divisional structure
D)matrix structure

Question 31

The most flexible structure is the

A)geographic divisional structure.
B)functional structure.
C)matrix structure.
D)product divisional structure.

Question 32

Tall organizations tend to be best suited for

A)dynamic environments.
B)stable environments.
C)either dynamic or stable environments.
D)neither dynamic nor stable environments.

Question 33

Which structure divides the organization's activities into self-contained entities,each responsible for producing,distributing,and selling its own products?

A)Functional structure.
B)Geographic divisional structure.
C)Product divisional structure.
D)Matrix structure.

Question 34

The structure common to industries with a high rate of technological change is the

A)functional structure.
B)matrix structure.
C)geographic divisional structure.
D)product divisional structure.

Question 35

Consistency and coordination tend to be problems in which organizational structure?

A)Functional structure.
B)Product divisional structure.
C)Geographic divisional structure.
D)Both the product divisional and geographic divisional structures.

Question 36

Activities and personnel are grouped by specific locations in a

A)functional structure.
B)product divisional structure.
C)geographic divisional structure.
D)matrix structure.

Question 37

Which structure is most common in new firms?

A)Matrix structure.
B)Innovative structure.
C)Geographic divisional structure
D)Functional structure.

Question 38

A horizontal structure

A)has relatively few hierarchies.
B)has more top managers.
C)is best suited for low-cost businesses.
D)All of the above.

Question 39

What is a matrix structure? When is it appropriate and inappropriate?

Question 40

Which of the following is not a key consideration in determining the most appropriate organizational structure?

A)Compatibility of the existing structure with the corporate profile and the corporate strategy
B)Number of hierarchical levels in the organization
C)The extent to which the structure permits the appropriate grouping of activities
D)All of the above are considerations.