Question 1

Agatha Adams founded Insurance Specialists to process medical claims for physicians' practices. She plans to compete on the basis of cost,offering the lowest processing cost per claim in her market area. Ms. Adams' company should

Accepted Answer

A)  be the strategic center firm in a network structure.
B)  have a specialized multidivisional structure.
C)  develop alliances with firms with complementary competencies.
D)  have a highly centralized, functional structure.

Question 2

In the hybrid form of the combination structure,some divisions are oriented toward products while others are oriented toward market areas.

Accepted Answer

A) True 
 B)False  True

Question 3

Strategic controls are largely subjective criteria intended to verify that the firm is using appropriate strategies for the conditions in the external environment and the company's competitive advantages.

Accepted Answer

A) True 
 B)False

Question 4

The selection of an organizational structure for an internationally diversified firm should consider the international corporate-level strategy the firm is using.

Accepted Answer

A) True 
 B)False

Question 5

It is easiest to identify the company that functions as the strategic center firm in

Accepted Answer

A)  horizontal complementary strategic alliances.
B)  vertical complementary strategic alliances.
C)  corporate-level cooperative partnerships.
D)  international cooperative partnerships.

Question 6

Describe the organizational structure associated with a firm that pursues an unrelated diversification strategy.

Accepted Answer

An unrelated diversification strategy se...

Question 7

Successfully implementing a cost leadership strategy requires

Accepted Answer

A)  freedom from constraining rules.
B)  centralization of authority.
C)  communication between functional silos.
D)  sharing of competencies among divisions.

Question 8

Functional structures work best for firms for all of the following strategies EXCEPT

Accepted Answer

A)  cost leadership strategy.
B)  differentiation strategy.
C)  related constrained diversification strategy.
D)  single or dominant business corporate strategy.

Question 9

The divisions within each SBU are related in terms of shared products or markets,but the divisions of one SBU
have little in common with the divisions of the other SBUs.

Accepted Answer

A) True 
 B)False

Question 10

The heavy use of integrative mechanisms in the achieve

Accepted Answer

A)  cooperative; economies of scope.
B)  competitive; cost efficiencies.
C)  functional; sensitivity to cultural diversity.
D)  SBU; quick response to local customer needs. A

Question 11

Strategic controls allow corporate-level managers to

Accepted Answer

A)  evaluate business-level performance on objective criteria.
B)  concentrate on day-to-day corporate operations.
C)  assess performance of employees and managers in each business unit.
D)  examine the fit between what the firm might do and what it can do.

Question 12

Cisco's corporate-level structure was useful in implementing its business-level strategy.

Accepted Answer

A)  SBU form; integrated cost leadership-differentiation
B)  competitive form; differentiation
C)  cooperative form; cost leadership
D)  cooperative form; integrated cost leadership-differentiation

Question 13

As shown in the Chapter 11 Opening Case,Borders was able to structure its operations in ways that allowed it to manage the different businesses in each country and market effectively.

Accepted Answer

A) True 
 B)False

Question 14

The centralized structure used by Borders (Chapter 11 Opening Case)did not provide information from local stores that might have been useful in changing its technology strategy more quickly than it did. This example illustrates the effect of structure on strategy.

Accepted Answer

A) True 
 B)False

Question 15

One disadvantage of the functional structure is that

Accepted Answer

A)  career paths and professional development are limited.
B)  dual reporting relationships blur lines of authority.
C)  the CEO cannot coordinate and control the efforts of functional-level employees.
D)  communication and coordination are difficult among organizational functions.

Question 16

Which of the following is NOT associated with an organizational structure that supports a cost leadership strategy?

Accepted Answer

A)  centralization
B)  specialization
C)  formalization
D)  integration

Question 17

The primary disadvantage of the multidomestic strategy and worldwide geographic area structure relates to limited

Accepted Answer

A)  centralization.
B)  coordination across divisions.
C)  ability to meet local market needs.
D)  potential for global efficiency. D

Question 18

The organizational structure for an internationally diversified firm requires trade-offs between global integration and local market responsiveness.

Accepted Answer

A) True 
 B)False

Question 19

The Amos Ball Printing Company was established in 1866. Currently,Amos Ball V is the CEO and chairman of the board. The company has traditionally used a functional structure. Five years ago,the company branched into online publishing and small-batch printing in addition to its regular large-batch operations. Both new businesses are significantly different in technology and marketing from each other and from Ball's traditional business. Despite the hiring of experienced professionals in these new endeavors,performance continues to be poor and is affecting
Ball's overall performance. Which of the following statements is TRUE?

Accepted Answer

A)  Amos should consider adopting the multidivisional structure.
B)  Mr.Ball has insufficient power to change the structure of the organization.
C)  Restructuring must only be done from a position of strength, so it is necessary to wait until the company's overall performance improves before making radical changes.
D)  These businesses are too disparate to coordinate within one corporate structure.

Question 20

Walmart's effective strategy/structure configuration is

Accepted Answer

A)  cost leadership/functional.
B)  differentiation/functional.
C)  related constrained/multidivisional.
D)  related linked/multidivisional.

Exam 11: Organizational Structure and Controls

Agatha Adams founded Insurance Specialists to process medical claims for physicians' practices. She plans to compete on the basis of cost,offering the lowest processing cost per claim in her market area. Ms. Adams' company should

Correct Answer
verified

In the hybrid form of the combination structure,some divisions are oriented toward products while others are oriented toward market areas.

Correct Answer
verified
True

Strategic controls are largely subjective criteria intended to verify that the firm is using appropriate strategies for the conditions in the external environment and the company's competitive advantages.

Correct Answer
verified

The selection of an organizational structure for an internationally diversified firm should consider the international corporate-level strategy the firm is using.

Correct Answer
verified

It is easiest to identify the company that functions as the strategic center firm in

Correct Answer
verified

Describe the organizational structure associated with a firm that pursues an unrelated diversification strategy.

Correct Answer
verified
An unrelated diversification strategy se...
View Answer

Successfully implementing a cost leadership strategy requires

Correct Answer
verified

Functional structures work best for firms for all of the following strategies EXCEPT

Correct Answer
verified

The divisions within each SBU are related in terms of shared products or markets,but the divisions of one SBU have little in common with the divisions of the other SBUs.

Correct Answer
verified

The heavy use of integrative mechanisms in the achieve

Correct Answer
verified
A

Strategic controls allow corporate-level managers to

Correct Answer
verified

Cisco's corporate-level structure was useful in implementing its business-level strategy.

Correct Answer
verified

As shown in the Chapter 11 Opening Case,Borders was able to structure its operations in ways that allowed it to manage the different businesses in each country and market effectively.

Correct Answer
verified

The centralized structure used by Borders (Chapter 11 Opening Case)did not provide information from local stores that might have been useful in changing its technology strategy more quickly than it did. This example illustrates the effect of structure on strategy.

Correct Answer
verified

One disadvantage of the functional structure is that

Correct Answer
verified

Which of the following is NOT associated with an organizational structure that supports a cost leadership strategy?

Correct Answer
verified

The primary disadvantage of the multidomestic strategy and worldwide geographic area structure relates to limited

Correct Answer
verified
D

The organizational structure for an internationally diversified firm requires trade-offs between global integration and local market responsiveness.

Correct Answer
verified

Correct Answer
verified

Walmart's effective strategy/structure configuration is

Correct Answer
verified

Exam 11: Organizational Structure and Controls

Agatha Adams founded Insurance Specialists to process medical claims for physicians' practices. She plans to compete on the basis of cost,offering the lowest processing cost per claim in her market area. Ms. Adams' company should

Correct AnswerverifiedShow Answer

In the hybrid form of the combination structure,some divisions are oriented toward products while others are oriented toward market areas.

Correct AnswerverifiedTrue

Strategic controls are largely subjective criteria intended to verify that the firm is using appropriate strategies for the conditions in the external environment and the company's competitive advantages.

Correct AnswerverifiedShow Answer

The selection of an organizational structure for an internationally diversified firm should consider the international corporate-level strategy the firm is using.

Correct AnswerverifiedShow Answer

It is easiest to identify the company that functions as the strategic center firm in

Correct AnswerverifiedShow Answer

Describe the organizational structure associated with a firm that pursues an unrelated diversification strategy.

Correct AnswerverifiedAn unrelated diversification strategy se...View AnswerShow Answer

Successfully implementing a cost leadership strategy requires

Correct AnswerverifiedShow Answer

Functional structures work best for firms for all of the following strategies EXCEPT

Correct AnswerverifiedShow Answer

The divisions within each SBU are related in terms of shared products or markets,but the divisions of one SBU have little in common with the divisions of the other SBUs.

Correct AnswerverifiedShow Answer

The heavy use of integrative mechanisms in the achieve

Correct AnswerverifiedA

Strategic controls allow corporate-level managers to

Correct AnswerverifiedShow Answer

Cisco's corporate-level structure was useful in implementing its business-level strategy.

Correct AnswerverifiedShow Answer

As shown in the Chapter 11 Opening Case,Borders was able to structure its operations in ways that allowed it to manage the different businesses in each country and market effectively.

Correct AnswerverifiedShow Answer

The centralized structure used by Borders (Chapter 11 Opening Case)did not provide information from local stores that might have been useful in changing its technology strategy more quickly than it did. This example illustrates the effect of structure on strategy.

Correct AnswerverifiedShow Answer

One disadvantage of the functional structure is that

Correct AnswerverifiedShow Answer

Which of the following is NOT associated with an organizational structure that supports a cost leadership strategy?

Correct AnswerverifiedShow Answer

The primary disadvantage of the multidomestic strategy and worldwide geographic area structure relates to limited

Correct AnswerverifiedD

The organizational structure for an internationally diversified firm requires trade-offs between global integration and local market responsiveness.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Walmart's effective strategy/structure configuration is

Correct AnswerverifiedShow Answer

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True

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An unrelated diversification strategy se...
View Answer

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A

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D

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