Question 1

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) A) and C)
F) A) and D)

Question 2

Structures help to ensure that ________ are used effectively in accomplishing the mission of the organization.

Accepted Answer

A)   strategies
B)   relationships
C)   resources
D)   boundariesE) B) and C)
F) A) and B)

Question 3

According to the study by O'Reilly and Tushman, effective ambidextrous structures had all 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.E) A) and B)
F) A) and C)

Question 4

Which of the following is not a strategic risk of outsourcing?

Accepted Answer

A)   loss of critical skills
B)   loss of cross-functional skills
C)   loss of control over a supplier
D)   loss of nonvital functionsE) None of the above
F) All of the above

Question 5

Virtual organizations ________ whereas modular organizations ________.

Accepted Answer

A)   are usually permanent; are usually temporary
B)   accept interdependent destinies; pursue collective strategies
C)   pursue collective strategies; forfeit strategic control
D)   give up part of their strategic control; retain full strategic controlE) None of the above
F) A) and C)

Question 6

If a firm outsources some parts of its value chain in order to reduce costs and increase quality and at the same time engages in multiple alliances to penetrate new markets, this is anexample of a firm using a ________ of organizational types.

Accepted Answer

A)   combination
B)   boundaryless consortium
C)   bounded consortium
D)   barrier-free collectionE) A) and D)
F) A) and C)

Question 7

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 8

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

Question 9

To enhance integration and control of related product market activities, the functional structure minimizes centralization.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is not a disadvantage of virtual structures?

Accepted Answer

A)   difficulty in individual and organizational knowledge sharing
B)   potential loss of operational control among partners
C)   loss of strategic control over emerging technology
D)   difficulty in determining where one company ends and another begins due to close interdependenciesE) A) and C)
F) B) and D)

Question 11

A strategy of related diversification requires a need to reorganize only around product lines. This leads to a divisional structure.

Accepted Answer

A) True 
 B)False

Question 12

What is the name of the practice that many modular organization use to grow?

Accepted Answer

A)   operational effectiveness
B)   outsourcing
C)   strategic leveraging
D)   strategic enablingE) B) and C)
F) None of the above

Question 13

In a barrier-free organization, differences in skills, authority, and talent disappear.

Accepted Answer

A) True 
 B)False

Question 14

What advantages does outsourcing not provide an organization?

Accepted Answer

A)   accessing best in class goods and services
B)   enabling rapid expansion with relatively low capital investment
C)   focusing scarce resources on core competencies
D)   improved buyer positioningE) A) and B)
F) A) and C)

Question 15

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 16

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

Accepted Answer

A)   functional; divisional
B)   simple; functional
C)   simple; divisional
D)   holding-company; divisionalE) All of the above
F) A) and B)

Question 17

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

Question 18

A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to a(n)  ________ structure.

Accepted Answer

A)   divisional
B)   functional
C)   matrix
D)   internationalE) A) and C)
F) C) and D)

Question 19

Effective ambidextrous organizations have alignment, which means that

Accepted Answer

A)   employees are rewarded according to both profit and sales growth.
B)   managers are focused on growth opportunities.
C)   there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated.
D)   divisional-level goals are consistent with overall corporate goals.E) None of the above
F) A) and B)

Question 20

In an ambidextrous firm, if too much focus is placed on ________, the firm with suffer low profitability in the short run.

Accepted Answer

A)  alignment
B)   adaptability
C)   structure
D)   opportunitiesE) A) and B)
F) A) and C)

Exam 10: Creating Effective Organizational Designs

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

Correct AnswerverifiedShow Answer

Structures help to ensure that ________ are used effectively in accomplishing the mission of the organization.

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

What advantages does outsourcing not provide an organization?

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

In an ambidextrous firm, if too much focus is placed on ________, the firm with suffer low profitability in the short run.

Correct AnswerverifiedShow Answer

In a barrier-free organization, differences in skills, authority, and talent disappear.

Correct AnswerverifiedShow Answer

To enhance integration and control of related product market activities, the functional structure minimizes centralization.

Correct AnswerverifiedShow Answer

Which of the following is not a strategic risk of outsourcing?

Correct AnswerverifiedShow Answer

Virtual organizations ________ whereas modular organizations ________.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Effective ambidextrous organizations have alignment, which means that

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

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

Correct AnswerverifiedShow Answer

A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to a(n) ________ structure.

Correct AnswerverifiedShow Answer

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

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Which of the following is not a disadvantage of virtual structures?

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A strategy of related diversification requires a need to reorganize only around product lines. This leads to a divisional structure.

Correct AnswerverifiedShow Answer

What is the name of the practice that many modular organization use to grow?

Correct AnswerverifiedShow Answer

If a firm outsources some parts of its value chain in order to reduce costs and increase quality and at the same time engages in multiple alliances to penetrate new markets, this is anexample of a firm using a ________ of organizational types.

Correct AnswerverifiedShow Answer

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Virtual organizations whereas modular organizations .

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

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