Question 1

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 2

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.E) None of the above
F) All of the above

Question 3

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

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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 marketsE) B) and D)
F) A) and C)

Question 6

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

Question 7

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 8

Which of the following activities is not identified structure?

Accepted Answer

A)   managerial
B)   executive
C)   social responsibility
D)   administrativeE) A) and B)
F) A) and C)

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

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 11

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.E) None of the above
F) A) and C)

Question 12

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

Question 13

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.E) B) and D)
F) A) and B)

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

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 18

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 divisionE) B) and C)
F) A) and B)

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 organizationE) None of the above
F) B) and C)

Question 20

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

Exam 10: Creating Effective Organizational Designs

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Important advantages of a holding company structure include

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The relationship between strategy and structure can be best described as

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Effective ambidextrous organizations maintain adaptability,which means that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

Which of the following activities is not identified structure?

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

In large organizations,a strategy of diversification requires a need to reorganize around ______________ or _____________.

Correct AnswerverifiedShow Answer

A virtual organization may be most appropriate for firms

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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