Question 1

Organizations that make it to the growth stage, design strategies to

Accepted Answer

A)   reduce the tendency to increase operational scope.
B)   leave exiting product-market domains.
C)   increase the overall scope of operations.
D)   reduce the commitment to new product-market domains.

Question 2

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 3

Tools and techniques used to achieve effective coordination and integration of key activities in an organization include all the following except

Accepted Answer

A)   horizontal organization structures.
B)   common culture and shared values.
C)   horizontal diversification.
D)   communications and information technologies.

Question 4

Whole Foods tried to overcome some of the limitations of a divisional structure by

Accepted Answer

A)   decentralizing key activities.
B)   redistributing financial support.
C)   centralizing the purchasing function.
D)   reducing power conflicts.

Question 5

One of the disadvantages of divisional structure design is that they divide ________, ________, and knowledge. They insulate divisional managers from other divisional managers thus inhibiting their ability to coordinate activities, share resources, and learn from each other.

Accepted Answer

A)   land, buildings
B)   assets, structures
C)   people, resources
D)   people, buildings C

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is not a boundaryless organizational design?

Accepted Answer

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

Question 8

Three major contingencies that influence the chosen structure of a company are: the type of strategy that drives its foreign operations, its product diversity, and the extent to whichthecompany is dependent on foreign sales.

Accepted Answer

A) True 
 B)False

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

Which one of the following is not a primary type of organizational structures used to manage the international operations of a company?

Accepted Answer

A)   international division
B)   worldwide matrix
C)   geographic-area division
D)   home country product division D

Question 11

Firms that place too strong a priority on either adaptability or alignment can expect short term gains only.

Accepted Answer

A) True 
 B)False

Question 12

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 13

Global start-ups occur after a corporation has exhausted all other possibilities for domestic growth.

Accepted Answer

A) True 
 B)False

Question 14

The phrase that best defines a virtual organization is a(n)

Accepted Answer

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

Question 15

An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?

Accepted Answer

A)   functional structure
B)   matrix structure
C)   strategic business unit structure
D)   holding company structure

Question 16

Which of the following is considered an advantage of a matrix structure?

Accepted Answer

A)   the layering of matrices
B)   increased clarity in reporting relationships
C)   increased responsiveness to the market
D)   fewer power struggles and reduced conflict

Question 17

Strategic business unit (SBU)  and holding company structures result from extensive

Accepted Answer

A)   diversification.
B)   vertical integration.
C)   international expansion.
D)   organizational flattening.

Question 18

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.

Question 19

According to author Jeffrey Pfeffer, the advantages of teams are that employees control themselves, develop more creative solutions to problems, and permit the absorption of administrativetasks previously performed by specialists.

Accepted Answer

A) True 
 B)False

Question 20

One of the reasons that Asian conglomerate business groups continue to grow and those in the United States are seen to be unfocused and unlikely to succeed is that

Accepted Answer

A)   Asian conglomerates have a single corporation with a wide set of wholly owned subsidiaries.
B)   U.S. conglomerates are made up of a set of legally separate corporations, each with its own board of directors and shareholders.
C)   Asian conglomerates are made up of a set of legally separate corporations, each with its own board of directors and shareholders.
D)   Asian conglomerates are structured similarly to those in the United States and Europe.

Exam 10: Creating Effective Organizational Designs

Organizations that make it to the growth stage, design strategies to

Correct AnswerverifiedShow Answer

Functional structures are usually found in organizations where there

Correct AnswerverifiedShow Answer

Tools and techniques used to achieve effective coordination and integration of key activities in an organization include all the following except

Correct AnswerverifiedShow Answer

Whole Foods tried to overcome some of the limitations of a divisional structure by

Correct AnswerverifiedShow Answer

One of the disadvantages of divisional structure design is that they divide ________, ________, and knowledge. They insulate divisional managers from other divisional managers thus inhibiting their ability to coordinate activities, share resources, and learn from each other.

Correct AnswerverifiedC

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

Correct AnswerverifiedShow Answer

Which of the following is not a boundaryless organizational design?

Correct AnswerverifiedC

Three major contingencies that influence the chosen structure of a company are: the type of strategy that drives its foreign operations, its product diversity, and the extent to whichthecompany is dependent on foreign sales.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which one of the following is not a primary type of organizational structures used to manage the international operations of a company?

Correct AnswerverifiedD

Firms that place too strong a priority on either adaptability or alignment can expect short term gains only.

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

Global start-ups occur after a corporation has exhausted all other possibilities for domestic growth.

Correct AnswerverifiedShow Answer

The phrase that best defines a virtual organization is a(n)

Correct AnswerverifiedShow Answer

An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?

Correct AnswerverifiedShow Answer

Which of the following is considered an advantage of a matrix structure?

Correct AnswerverifiedShow Answer

Strategic business unit (SBU) and holding company structures result from extensive

Correct AnswerverifiedShow Answer

Important advantages of a holding company structure include

Correct AnswerverifiedShow Answer

According to author Jeffrey Pfeffer, the advantages of teams are that employees control themselves, develop more creative solutions to problems, and permit the absorption of administrativetasks previously performed by specialists.

Correct AnswerverifiedShow Answer

One of the reasons that Asian conglomerate business groups continue to grow and those in the United States are seen to be unfocused and unlikely to succeed is that

Correct AnswerverifiedShow Answer

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One of the disadvantages of divisional structure design is that they divide , , and knowledge. They insulate divisional managers from other divisional managers thus inhibiting their ability to coordinate activities, share resources, and learn from each other.

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

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