Question 1

Coca-Cola,Ford Motor Company,H.J.Heinz,Nike,and Procter and Gamble are working together to develop plant-based plastics.Each company brings its own competency to the table.This collaboration is an example of a _____________.

Accepted Answer

A)   virtual organization
B)   modular organization
C)   horizontal organization
D)   vertical organizationE) A) and B)
F) B) and D)

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

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 firmE) A) and D)
F) B) and D)

Question 4

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 structureE) B) and C)
F) A) and D)

Question 5

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 6

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 structureE) All of the above
F) B) and C)

Question 7

Which of the following statements about simple organizational structures is not true?

Accepted Answer

A)   Small firms with a narrow product-market scope will adopt such a structure.
B)   Decision making authority is highly centralized.
C)   There is little specialization of tasks.
D)   Creativity and individualism are rare.E) None of the above
F) B) and C)

Question 8

Organizations generally tend to become internally focused when faced with ______________ and _____________.

Accepted Answer

A)   resource scarcity; declining performance
B)   internal pressures; improving performance
C)   resource abundance; declining performance
D)   external pressures; resource abundanceE) 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

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

Accepted Answer

A) True 
 B)False

Question 11

The strategy and structure of a firm change as the firm increases in size,diversifies into new product markets,and limits its geographic scope.

Accepted Answer

A) True 
 B)False

Question 12

Organizations are increasingly using teams for many reasons.The difference between a good team and an outstanding team has been found to be _____________.

Accepted Answer

A)   the combined technical skills of the members
B)   similarities in the way team members solve problems
C)   the way team members treat each other
D)   similarities in the age and experience of team memberE) C) and D)
F) All of the above

Question 13

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 diversificationE) A) and D)
F) B) and D)

Question 14

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 administrative tasks previously performed by specialists.

Accepted Answer

A) True 
 B)False

Question 15

One of the advantages of boundaryless structures is that they can be implemented without upgrading the skills of workers and managers.

Accepted Answer

A) True 
 B)False

Question 16

A matrix organizational structure is characterized by a combination of the ______________ and _____________.

Accepted Answer

A)   functional structure; divisional structure
B)   simple structure; functional structure
C)   simple structure; divisional structure
D)   holding company structure; divisional structureE) A) and D)
F) B) and C)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

In a simple structure where the owner manager makes most of the important decisions,extensive rules and regulations are used to maintain order.

Accepted Answer

A) True 
 B)False

Question 19

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) None of the above
F) B) and D)

Question 20

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

Exam 10: Creating Effective Organizational Designs

Organizations generally tend to become internally focused when faced with ______________ and _____________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following statements about simple organizational structures is not true?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The relationship between strategy and structure can be best described as _____________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Coca-Cola,Ford Motor Company,H.J.Heinz,Nike,and Procter and Gamble are working together to develop plant-based plastics.Each company brings its own competency to the table.This collaboration is an example of a _____________.

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

A matrix organizational structure is characterized by a combination of the ______________ and _____________.

Correct AnswerverifiedShow Answer

In a simple structure where the owner manager makes most of the important decisions,extensive rules and regulations are used to maintain order.

Correct AnswerverifiedShow Answer

Organizations are increasingly using teams for many reasons.The difference between a good team and an outstanding team has been found to be _____________.

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

The strategy and structure of a firm change as the firm increases in size,diversifies into new product markets,and limits its geographic scope.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

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 administrative tasks previously performed by specialists.

Correct AnswerverifiedShow Answer

One of the advantages of boundaryless structures is that they can be implemented without upgrading the skills of workers and managers.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Organizations generally tend to become internally focused when faced with __ and _.

Correct Answer
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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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A matrix organizational structure is characterized by a combination of the __ and _.

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

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