Question 1

Outline the basic ideas behind the ambidextrous organizational design.

Accepted Answer

An ambidextrous organization has a clear...

Question 2

A matrix organization is organized strictly along product lines.

Accepted Answer

A) True 
 B)False

Question 3

Boundaryless structures replace traditional structures.

Accepted Answer

A) True 
 B)False

Question 4

Discuss the uses and challenges of the barrier-free organizational structure.

Accepted Answer

A barrier-free organization enables a fi...

Question 5

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

Accepted Answer

A)   divisional structure.
B)   functional structure.
C)   product-market structure.
D)   geographic structure.E) A) and D)
F) B) and D)

Question 6

If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is

Accepted Answer

A)   worldwide functional.
B)   worldwide product division.
C)   worldwide matrix.
D)   international division.E) B) and D)
F) A) and B)

Question 7

A simple structure is characterized by

Accepted Answer

A)   high specialization and low centralization.
B)   low specialization and high centralization.
C)   low formality and low creativity.
D)   high formality and low centralization.E) A) and D)
F) B) and C)

Question 8

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)   Fewer internal barriers means fewer political issues to deal with.
D)   If trust among employees is not sufficiently high, organizational performance may suffer.E) B) and C)
F) A) and D)

Question 9

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 10

Which of the following is not a boundaryless organizational design?

Accepted Answer

A)   virtual
B)   modular
C)   matrix
D)   barrier-freeE) A) and B)
F) A) and C)

Question 11

At Sharp Corporation, work is divided into units that specialize in production, marketing, research and development, and other management tasks. This is an example of a

Accepted Answer

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

Question 12

An ambidextrous organization achieves both adaptability and alignment.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is an advantage of a functional type of organizational structure?

Accepted Answer

A)   Decentralized decision-making enhances an organization-wide perspective across functions.
B)   It facilitates the development of general management talent.
C)   Pooling of specialists enhances coordination and control.
D)   It is easy to establish uniform performance standards.E) All of the above
F) A) and C)

Question 14

The matrix structure attempts to combine the advantages of the functional and product-oriented structure.

Accepted Answer

A) True 
 B)False

Question 15

To enhance integration and control of related product market activities, the functional structure minimizes centralization.

Accepted Answer

A) True 
 B)False

Question 16

A major disadvantage of adopting a divisional structure is the tendency for managers to focus on short-term objectives.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Because the modular form of organizing involves outsourcing vital functions, modular firms often forfeit full strategic control.

Accepted Answer

A) True 
 B)False

Question 19

The virtual organization is characterized by participating firms which pursue a collective strategy that enables them to cope with environmental uncertainty through cooperative efforts.

Accepted Answer

A) True 
 B)False

Question 20

The strategic business unit (SBU) and holding company structure are variants of the functional form of structure.

Accepted Answer

A) True 
 B)False

Exam 9: Strategic Control and Corporate Governance

Outline the basic ideas behind the ambidextrous organizational design.

Correct AnswerverifiedAn ambidextrous organization has a clear...View AnswerShow Answer

A simple structure is characterized by

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To enhance integration and control of related product market activities, the functional structure minimizes centralization.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

At Sharp Corporation, work is divided into units that specialize in production, marketing, research and development, and other management tasks. This is an example of a

Correct AnswerverifiedShow Answer

Discuss the uses and challenges of the barrier-free organizational structure.

Correct AnswerverifiedA barrier-free organization enables a fi...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

The matrix structure attempts to combine the advantages of the functional and product-oriented structure.

Correct AnswerverifiedShow Answer

The strategic business unit (SBU) and holding company structure are variants of the functional form of structure.

Correct AnswerverifiedShow Answer

Boundaryless structures replace traditional structures.

Correct AnswerverifiedShow Answer

If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is

Correct AnswerverifiedShow Answer

Which of the following is not a boundaryless organizational design?

Correct AnswerverifiedShow Answer

A major disadvantage of adopting a divisional structure is the tendency for managers to focus on short-term objectives.

Correct AnswerverifiedShow Answer

The virtual organization is characterized by participating firms which pursue a collective strategy that enables them to cope with environmental uncertainty through cooperative efforts.

Correct AnswerverifiedShow Answer

A matrix organization is organized strictly along product lines.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Because the modular form of organizing involves outsourcing vital functions, modular firms often forfeit full strategic control.

Correct AnswerverifiedShow Answer

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

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An ambidextrous organization achieves both adaptability and alignment.

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Which of the following is an advantage of a functional type of organizational structure?

Correct AnswerverifiedShow Answer

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An ambidextrous organization has a clear...
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A barrier-free organization enables a fi...
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