Question 1

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 2

All of the following statements about simple organizational structures are true except

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.E) All of the above
F) C) and D)

Question 3

Complete the following sentence: "Virtual organizations _____________________ whereas modular organizations ____________________."

Accepted Answer

A)   are usually permanent; are usually temporary
B)   accept interdependent destinies; pursue collective strategies
C)   pursue collective strategies; forfeit strategic control
D)   give up part of their strategic control; retain full strategic controlE) C) and D)
F) B) and C)

Question 4

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 a firm's strategy.E) A) and B)
F) A) and C) B

Question 5

In a barrier-free organization, differences in skills, authority, and talent disappear.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A)   operational effectiveness
B)   outsourcing
C)   strategic leveraging
D)   strategic enablingE) A) and B)
F) B) and C) B

Question 7

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

Accepted Answer

A)   matrix
B)   virtual
C)   modular
D)   barrier-freeE) All of the above
F) A) and D) C

Question 8

Diversified Canadian conglomerate Weston has put its businesses into three primary SBUs, which are

Accepted Answer

A)   bakeries, retail and food processing.
B)   retail, shipping, and online sales through Loblaws.com.
C)   baked goods, unbaked goods, and grains and oilseeds.
D)   retail, wholesale, and manufacturing.E) A) and B)
F) A) and C)

Question 9

Which of the following is a disadvantage of a functional type of organizational structure?

Accepted Answer

A)   Differences in functional orientation may impede communication and coordination.
B)   Use of managerial and technical talent is inefficient due to pooling of expertise in functional areas.
C)   Decision making is centralized at the top of the organization.
D)   Managers tend to be overly concerned with long-term strategies that minimize the importance of functional area strengths.E) A) and D)
F) All of the above

Question 10

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)

Accepted Answer

A)   divisional structure.
B)   functional structure.
C)   matrix structure.
D)   international structure.E) C) and D)
F) None of the above

Question 11

Outline the three main contingencies that seem to influence the structure adopted by firms with international operations.

Accepted Answer

Three major contingencies that influence...

Question 12

The purpose of boundaryless forms of organizing is to facilitate the widespread sharing of knowledge and information across internal and external boundaries of the organization.

Accepted Answer

A) True 
 B)False

Question 13

The phrase that best defines a virtual organization is

Accepted Answer

A)   a dot.com company.
B)   a type of modular structure.
C)   an organization that uses information technology to integrate different functions.
D)   a continually evolving network of independent companies.E) C) and D)
F) B) and C)

Question 14

All of the following are disadvantages of a divisional type of organizational structure except

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.E) A) and B)
F) A) and C)

Question 15

Discuss the basic idea of the modular organizational structure.

Accepted Answer

The modular organization outsources non-...

Question 16

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 members.E) All of the above
F) C) and D)

Question 17

What are the advantages and disadvantages associated with using the divisional organizational form?

Accepted Answer

Advantages: By creating separate divisio...

Question 18

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 19

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 faced by individual divisions.
C)   a high level of control of division executives by executives at the corporate level.
D)   gaining synergistic benefits across businesses.E) A) and B)
F) All of the above

Question 20

Explain why there is no "one best way" to design strategic rewards systems.

Accepted Answer

The effective use of reward and evaluati...

Exam 9: Strategic Control and Corporate Governance

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

Correct AnswerverifiedShow Answer

All of the following statements about simple organizational structures are true except

Correct AnswerverifiedShow Answer

Complete the following sentence: "Virtual organizations _____________________ whereas modular organizations ____________________."

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

In a barrier-free organization, differences in skills, authority, and talent disappear.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedB

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

Correct AnswerverifiedC

Diversified Canadian conglomerate Weston has put its businesses into three primary SBUs, which are

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of a functional type of organizational structure?

Correct AnswerverifiedShow Answer

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)

Correct AnswerverifiedShow Answer

Outline the three main contingencies that seem to influence the structure adopted by firms with international operations.

Correct AnswerverifiedThree major contingencies that influence...View AnswerShow Answer

The purpose of boundaryless forms of organizing is to facilitate the widespread sharing of knowledge and information across internal and external boundaries of the organization.

Correct AnswerverifiedShow Answer

The phrase that best defines a virtual organization is

Correct AnswerverifiedShow Answer

All of the following are disadvantages of a divisional type of organizational structure except

Correct AnswerverifiedShow Answer

Discuss the basic idea of the modular organizational structure.

Correct AnswerverifiedThe modular organization outsources non-...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

What are the advantages and disadvantages associated with using the divisional organizational form?

Correct AnswerverifiedAdvantages: By creating separate divisio...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

Important advantages of a holding company structure include

Correct AnswerverifiedShow Answer

Explain why there is no "one best way" to design strategic rewards systems.

Correct AnswerverifiedThe effective use of reward and evaluati...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Complete the following sentence: "Virtual organizations _ whereas modular organizations ."

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Three major contingencies that influence...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The modular organization outsources non-...
View Answer

Correct Answer
verified

Correct Answer
verified
Advantages: By creating separate divisio...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The effective use of reward and evaluati...
View Answer