Question 1

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 diversityE) A) and D)
F) B) and C)

Question 2

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the reward systems emphasized traditional unit goals.

Accepted Answer

A) True 
 B)False

Question 3

Discuss the advantages and disadvantages of a simple organizational structure.

Accepted Answer

The simple organizational structure is t...

Question 4

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 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)   geographicE) C) and D)
F) B) and D)

Question 6

Which of the following activities is not identified by organizational structure?

Accepted Answer

A)   managerial
B)   executive
C)   social responsibility
D)   administrativeE) B) and D)
F) B) and C)

Question 7

When a firm has international operations, choosing the most appropriate structure depends upon the extent of international expansion, the type of strategy, and the degree of market density.

Accepted Answer

A) True 
 B)False

Question 8

Logitech International is an example of a company that began as a global start-up, with headquarters in both California and Switzerland and operations in both countries.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not a disadvantage of a divisional type of organizational structure?

Accepted Answer

A)   It can be very expensive compared to a functional organizational structure.
B)   There is a strong tendency for divisions to focus on short-term performance.
C)   There can be dysfunctional competition among divisions.
D)   There is separation of strategic and operating control.E) A) and B)
F) A) and C)

Question 10

If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is a(n)  ________ structure.

Accepted Answer

A)   worldwide functional
B)   worldwide product division
C)   worldwide matrix
D)   international divisionE) None of the above
F) A) and D)

Question 11

Which of the following statements about simple organizational structures is false?

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) A) and B)
F) All of the above

Question 12

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)   internationalizedE) All of the above
F) C) and D)

Question 13

As firms grow, owner managers often need to hire functional specialists to handle the increased information-processing burden.

Accepted Answer

A) True 
 B)False

Question 14

In the ambidextrous firm, if managers direct their efforts primarily at ________, they are likely to miss out on promising business opportunities.

Accepted Answer

A)   alignment
B)   adaptability
C)   structure
D)   opportunitiesE) A) and B)
F) All of the above

Question 15

One of the challenges of an ambidexterity in a firm is that it must ensure that it remains proactive in expanding or modifying its product-market scope to anticipate and satisfy marketconditions.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is an advantage of a divisional type of organizational structure?

Accepted Answer

A)  efficient use of managerial and technical talent
B)   an enhanced ability to respond quickly to changes in the external environment
C)   high degree of emphasis on long-term performance
D)   uniformity in image and quality across divisionsE) None of the above
F) C) and D)

Question 17

A worldwide product division structure is used when global strategies require that each division be responsible for overall efficiency and performance.

Accepted Answer

A) True 
 B)False

Question 18

What is a barrier-free organization? Discuss the importance for a barrier-free organization of creating permeable internal boundaries and developing effective relationships with external constituencies.

Accepted Answer

A barrier-free organization is an organi...

Question 19

The appropriateness of the type of organizational structure depends upon the ________ and ________ of growth.

Accepted Answer

A)   nature; magnitude
B)   definition; accessibility
C)   accessibility; nature
D)   nature; definitionE) All of the above
F) C) and D)

Question 20

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

Exam 10: Creating Effective Organizational Designs

If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is a(n) ________ structure.

Correct AnswerverifiedShow Answer

Which of the following activities is not identified by organizational structure?

Correct AnswerverifiedShow Answer

Which of the following statements about simple organizational structures is false?

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

In the ambidextrous firm, if managers direct their efforts primarily at ________, they are likely to miss out on promising business opportunities.

Correct AnswerverifiedShow Answer

Discuss the advantages and disadvantages of a simple organizational structure.

Correct AnswerverifiedThe simple organizational structure is t...View AnswerShow Answer

When a firm has international operations, choosing the most appropriate structure depends upon the extent of international expansion, the type of strategy, and the degree of market density.

Correct AnswerverifiedShow Answer

A worldwide product division structure is used when global strategies require that each division be responsible for overall efficiency and performance.

Correct AnswerverifiedShow Answer

Which of the following is not a disadvantage of a divisional type of organizational structure?

Correct AnswerverifiedShow Answer

One of the challenges of an ambidexterity in a firm is that it must ensure that it remains proactive in expanding or modifying its product-market scope to anticipate and satisfy marketconditions.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of a divisional type of organizational structure?

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

The appropriateness of the type of organizational structure depends upon the ________ and ________ of growth.

Correct AnswerverifiedShow Answer

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

Logitech International is an example of a company that began as a global start-up, with headquarters in both California and Switzerland and operations in both countries.

Correct AnswerverifiedShow Answer

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

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

As firms grow, owner managers often need to hire functional specialists to handle the increased information-processing burden.

Correct AnswerverifiedShow Answer

What is a barrier-free organization? Discuss the importance for a barrier-free organization of creating permeable internal boundaries and developing effective relationships with external constituencies.

Correct AnswerverifiedA barrier-free organization is an organi...View AnswerShow Answer

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the reward systems emphasized traditional unit goals.

Correct AnswerverifiedShow Answer

Correct Answer
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The simple organizational structure is t...
View Answer

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The appropriateness of the type of organizational structure depends upon the and of growth.

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

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A barrier-free organization is an organi...
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Correct Answer
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