Exam 7: Organizing the Business Enterprise

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What type of authority flows up and down the chain of command?

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All-Canadian Burger is a nationwide fast food chain that competes with McDonald's, Burger King, and Wendy's. Management at All-Canadian Burger is debating whether to have a more centralized or a more decentralized organizational structure. Which of the following, if true, would most strongly support the conclusion that All-Canadian Burger should operate in a highly centralized manner?

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All things considered, the divisional structure is probably the best one.

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At PepsiCo, each of the company's three major beverage brands (Pepsi, Gatorade, and Tropicana) were formerly in separate departments. They competed for the same resources and there was very little coordination and sharing of information between them. This illustrates one of the problems with the ________ structure.

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Global Research Consortium offers research and consulting services to firms doing business in Asia and is an example of a learning organization.

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The men's clothing department at Hudson's Bay is an example of a

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Which organizational structure relies on product departmentalization?

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The organization of the health care producer Johnson & Johnson includes consumer health care products, medical devices and diagnostics, and pharmaceuticals. What kind of organizational structure does this company use?

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The chain of command shown on an organization chart reflects manager and subordinate relationships.

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Generally speaking, a team organization is more effective than a virtual organization.

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Which structure uses teams/committees along with functional departments on a long-term basis?

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What is an advantage of the functional organization structure?

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Describe the five most common methods of departmentalization within an organization. Identify the advantages of each method.

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Michael is analyzing the structure of his new employer. It is highly flexible and can readily adapt to changing circumstances. It also is heavily dependent upon committee and team authority. The firm is probably using the ________ structure.

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What is responsibility?

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Interstate Insurance is looking to upgrade the company's information technology. Information technology is used for a variety of purposes, so the company needs to prioritize its needs and find out in what areas the company needs to improve its information technology. Interstate's marketing director thinks that the company's data mining ability should be upgraded. Which of the following, if true, would strengthen his position?

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Organizational structure refers to the specification of the jobs to be done within a business and how those jobs relate to one another.

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Canadian Wood Products has three divisions. The Lumberjack division is involved in harvesting trees and transporting them to lumber mills. The Milling division transforms cut timber into dimensional lumber for building. The Paper Products division makes paper and cardboard from the remnants of the milling process. What type of departmentalization is this an example of?

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A ________ organization has little or no formal structure, with only a handful of permanent employees.

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At Appleson Publishing, products are produced by a team representing different functional groups, none of which have supervisory authority over any of the others. Represented departments include design, production, and marketing. Design department members are skilled at identifying customer requirements and creating product specifications. Their success is measured by return on product investment, which takes into account both the money earned by a product and the money spent on that product. Production department members are skilled at project execution. They are responsible for creating products according to the Design department members' specification. The Production department is considered successful when it completes projects according to schedule and project spending does not exceed the project's budget. Marketing department members are responsible for building profitable relationships with target market segments. They are skilled at communicating a product's value and persuading customers to make purchases. Marketing department members' success is measured by the revenue that the products take in. Executives claim that this division of labour keeps employees focused on the tasks that fit their skills and leads to a better product. Which of the following, if true, would strengthen that claim?

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