Question 1

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 2

Strategic business unit (SBU)  structures are best suited for corporations pursuing _____________, whereas holding company structures are best suited for companies with ______________ strategies.

Accepted Answer

A)  product-market diversification; international
B)  international diversification; product-market
C)  related diversification; unrelated diversification
D)  unrelated diversification; related diversification

Question 3

The simple organizational structure involves highly decentralized decision making.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  divisional
B)  functional
C)  product-market
D)  geographic

Question 6

The two vital ongoing activities necessary for creating boundaryless organizations that managers today must concern themselves with are

Accepted Answer

A)  financial returns and marketplace value.
B)  market share and shareholder value.
C)  type of structure, mechanisms, processes, and techniques for enhancing permeability.
D)  product marketability and capital structure.

Question 7

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 8

According to the study by O'Reilly and Tushman, effective ambidextrous structures had all of the following attributes except

Accepted Answer

A)  a clear and compelling vision.
B)  managerial efforts were highly focused on revenue enhancement.
C)  cross-fertilization among business units.
D)  established units were shielded from the distractions of launching new businesses.

Question 9

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)  Additional integration issues result in a slower response to market changes.
D)  If trust among employees is not sufficiently high, organizational performance may suffer.

Question 10

As illustrated in the opening case for Chapter 10, Boeing lost a lot of control and therefore incurred high operating costs for its build out of the 787 Dreamliner, because it ____________ design and manufacturing.

Accepted Answer

A)  on-shored
B)  internalized
C)  outsourced
D)  internationalized

Question 11

Which of the following is not a primary factor that a large firm with international operations should consider when choosing the appropriate structure for its organization?

Accepted Answer

A)  the extent of international expansion
B)  the type of strategy (global, multidomestic, or transnational) 
C)  the degree of product diversity
D)  the degree of market diversity

Question 12

The most appropriate type of organizational structure to select is dependent upon the product or service the company provides.

Accepted Answer

A) True 
 B)False

Question 13

A barrier-free organization creates successful relationships between internal and external constituencies and sometimes with competitors as well.

Accepted Answer

A) True 
 B)False

Question 14

A small firm with a simple structure often fosters creativity and individualism because of its informal atmosphere.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is not a boundaryless organizational design?

Accepted Answer

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

Question 16

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 17

Functional structures are usually found in organizations where there

Accepted Answer

A)  is high volume production.
B)  are unrelated product lines or service offerings.
C)  is very little vertical integration.
D)  there exists a strong need to decentralize decision making.

Question 18

According to the text, boundaryless organizational structures are most effective when they replace rather than complement traditional organizational structures.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following activities is not identified structure?

Accepted Answer

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

Question 20

Managing virtual structures requires new and difficult-to-acquire managerial skills.

Accepted Answer

A) True 
 B)False

Exam 10: Creating Effective Organizational Designs

As illustrated in the opening case for Chapter 10, Boeing lost a lot of control and therefore incurred high operating costs for its build out of the 787 Dreamliner, because it ____________ design and manufacturing.

Correct AnswerverifiedShow Answer

The most appropriate type of organizational structure to select is dependent upon the product or service the company provides.

Correct AnswerverifiedShow Answer

The two vital ongoing activities necessary for creating boundaryless organizations that managers today must concern themselves with are

Correct AnswerverifiedShow Answer

According to the study by O'Reilly and Tushman, effective ambidextrous structures had all of the following attributes except

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 ______________ structure.

Correct AnswerverifiedShow Answer

The simple organizational structure involves highly decentralized decision making.

Correct AnswerverifiedShow Answer

Strategic business unit (SBU) structures are best suited for corporations pursuing _____________, whereas holding company structures are best suited for companies with ______________ strategies.

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

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

Correct AnswerverifiedShow Answer

A barrier-free organization creates successful relationships between internal and external constituencies and sometimes with competitors as well.

Correct AnswerverifiedShow Answer

Managing virtual structures requires new and difficult-to-acquire managerial skills.

Correct AnswerverifiedShow Answer

Which of the following activities is not identified structure?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is not a boundaryless organizational design?

Correct AnswerverifiedShow Answer

Functional structures are usually found in organizations where there

Correct AnswerverifiedShow Answer

According to the text, boundaryless organizational structures are most effective when they replace rather than complement traditional organizational structures.

Correct AnswerverifiedShow Answer

Which of the following is not a primary factor that a large firm with international operations should consider when choosing the appropriate structure for its organization?

Correct AnswerverifiedShow Answer

Effective ambidextrous organizations maintain adaptability, which means that

Correct AnswerverifiedShow Answer

A small firm with a simple structure often fosters creativity and individualism because of its informal atmosphere.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Strategic business unit (SBU) structures are best suited for corporations pursuing _, whereas holding company structures are best suited for companies with __ strategies.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified