Question 1

Which of the following activities is not identified structure?

Accepted Answer

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

Question 2

The relationship between strategy and structure can be best described as

Accepted Answer

A)  strategy determines structure but structure does not determine strategy. 
B)  structure determines strategy but strategy does not determine structure. 
C)  strategy and structure influence each other. 
D)  a third force determines both strategy and structure.

Question 3

A virtual organization may be most appropriate for firms

Accepted Answer

A)  whose strategies require merging technologies. 
B)  whose product life cycles are just beginning. 
C)  who have no need to get to market quickly with new offers. 
D)  who have no need to meet competitive pressures.

Question 4

One disadvantage of a functional structure is that differences in functional orientation may impede organization coordination and communication.

Accepted Answer

A) True 
 B)False

Question 5

Jack Welch,former CEO of GE,believes that all internal and external organizational boundaries should vanish completely.

Accepted Answer

A) True 
 B)False

Question 6

Important advantages of a holding company structure include

Accepted Answer

A)  savings in personnel and overhead expenses associated with a small corporate office. 
B)  a high level of awareness at the corporate office of issues facing individual divisions. 
C)  a high level of control of division executives by executives at the corporate level. 
D)  gaining synergistic benefits across businesses.

Question 7

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

Question 8

With a functional organizational structure,firms initially tend to expand the overall scope of their operations by penetrating existing markets,introducing similar products in additional markets,or decreasing the level of vertical integration.

Accepted Answer

A) True 
 B)False

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

Question 10

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.

Question 11

Horizontal organization structures facilitate resource sharing and help to create a sense of common purpose.

Accepted Answer

A) True 
 B)False

Question 12

The structure of a firm typically has almost no effect on its strategy.

Accepted Answer

A) True 
 B)False

Question 13

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.

Question 14

Outsourcing in noncore functions of modular companies offers the advantage of decreased overall costs,but the company will be unable to focus on scarce resources in the areas where it holds competitive advantage.

Accepted Answer

A) True 
 B)False

Question 15

A major disadvantage of a divisional structure is that when divisions are separated to manage individual product markets,there is a separation of strategic and operational control.

Accepted Answer

A) True 
 B)False

Question 16

Generally speaking,discussions of the relationship between strategy and structure strongly imply that

Accepted Answer

A)  strategy follows structure. 
B)  structure follows strategy. 
C)  strategy can effectively be formulated without considering structural elements. 
D)  structure typically has a very small influence on the strategy of a firm.

Question 17

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 18

The virtual type of organization is a network of independent companies linked together to share skills,costs,and access to the markets of each other.

Accepted Answer

A) True 
 B)False

Question 19

What type of organization is defined as a central hub surrounded by networks of outside suppliers and specialists?

Accepted Answer

A)  matrix organization 
B)  virtual organization 
C)  modular organization 
D)  barrier-free organization

Question 20

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.

Exam 10: Creating Effective Organizational Designs

Which of the following activities is not identified structure?

The relationship between strategy and structure can be best described as

A virtual organization may be most appropriate for firms

One disadvantage of a functional structure is that differences in functional orientation may impede organization coordination and communication.

Jack Welch,former CEO of GE,believes that all internal and external organizational boundaries should vanish completely.

Important advantages of a holding company structure include

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.

With a functional organizational structure,firms initially tend to expand the overall scope of their operations by penetrating existing markets,introducing similar products in additional markets,or decreasing the level of vertical integration.

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

Effective ambidextrous organizations maintain adaptability,which means that

Horizontal organization structures facilitate resource sharing and help to create a sense of common purpose.

The structure of a firm typically has almost no effect on its strategy.

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

Outsourcing in noncore functions of modular companies offers the advantage of decreased overall costs,but the company will be unable to focus on scarce resources in the areas where it holds competitive advantage.

A major disadvantage of a divisional structure is that when divisions are separated to manage individual product markets,there is a separation of strategic and operational control.

Generally speaking,discussions of the relationship between strategy and structure strongly imply that

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

The virtual type of organization is a network of independent companies linked together to share skills,costs,and access to the markets of each other.

What type of organization is defined as a central hub surrounded by networks of outside suppliers and specialists?

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