Question 1

Which of the following is TRUE?

Accepted Answer

A)  Organizations tend to change structure too frequently, which erodes their competitive advantage. 
B)  Large organizations can retain a simple structure as long as they have a focus strategy. 
C)  Flexibility in structure is more important than stability. 
D)  Strategy has a more important influence on structure than structure has on strategy. 
A)  Organizations tend to change structure too frequently, which erodes their competitive advantage. 
B)  Large organizations can retain a simple structure as long as they have a focus strategy. 
C)  Flexibility in structure is more important than stability. 
D)  Strategy has a more important influence on structure than structure has on strategy.

Question 2

Discuss the organizational structures used to implement the different business-level strategies.

Accepted Answer

Business-level strategies are usually im

Question 3

Over time, large and complex organizations must customize their structure to fit their unique strategic needs.

Accepted Answer

A) True 
 B)False

Question 4

Research shows that structure has a more important influence on strategy than the reverse and hence the emphasis of the chapter on the subject of structure.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a TRUE statement about implementing corporate-level strategies and effective organizational structures?

Accepted Answer

A)  Firms pursuing a related linked strategy should implement a competitive structure with a competitive culture and centralized strategic-planning activities. 
B)  Firms pursuing an unrelated diversification strategy should use an SBU structure with a small corporate staff, emphasize the R&D function, and integrate divisions to achieve synergies. 
C)  Firms pursuing a related linked strategy should use an SBU structure, emphasize interdependence among divisions, and manage the strategic planning function from the central office. 
D)  Firms pursuing a related constrained strategy should implement a cooperative structure, use integrative devices to link divisions, centralize the R&D function, and emphasize sharing. 
A)  Firms pursuing a related linked strategy should implement a competitive structure with a competitive culture and centralized strategic-planning activities. 
B)  Firms pursuing an unrelated diversification strategy should use an SBU structure with a small corporate staff, emphasize the R&D function, and integrate divisions to achieve synergies. 
C)  Firms pursuing a related linked strategy should use an SBU structure, emphasize interdependence among divisions, and manage the strategic planning function from the central office. 
D)  Firms pursuing a related constrained strategy should implement a cooperative structure, use integrative devices to link divisions, centralize the R&D function, and emphasize sharing.

Question 6

The BEST multidivisional structure to use:

Accepted Answer

A)  is the competitive form. 
B)  is the SBU form. 
C)  is the cooperative form. 
D)  depends on the degree of diversification. 
A)  is the competitive form. 
B)  is the SBU form. 
C)  is the cooperative form. 
D)  depends on the degree of diversification.

Question 7

It is easiest to identify the company that functions as the strategic center firm in:

Accepted Answer

A)  horizontal complementary strategic alliances. 
B)  vertical complementary strategic alliances. 
C)  corporate-level cooperative partnerships. 
D)  international cooperative partnerships. 
A)  horizontal complementary strategic alliances. 
B)  vertical complementary strategic alliances. 
C)  corporate-level cooperative partnerships. 
D)  international cooperative partnerships.

Question 8

A multidomestic strategy would be associated with:

Accepted Answer

A)  high levels of coordination. 
B)  informal coordination among units. 
C)  many integrative mechanisms. 
D)  interdependent divisions. 
A)  high levels of coordination. 
B)  informal coordination among units. 
C)  many integrative mechanisms. 
D)  interdependent divisions.

Question 9

Megaline, Inc., with five divisions, follows the competitive form of the multidivisional structure. One division has not met the rate-of-return goals for the past year. Another division has exceeded the rate-of-return goals. The other three divisions met the rate-of-return goals. The headquarters office must decide where to allocate capital in the next year. Which scenario is the MOST likely?

Accepted Answer

A)  The poorest-performing division will get the highest capital allocation so that it can fix its problems and achieve the rate-of-return goal next year. 
B)  The highest-performing division will get the highest capital allocation because it has the best prospects for creating more wealth for the shareholders next year. 
C)  The average-performing divisions which met the rate-of-return goals will receive the highest allocation because their performance exactly matched corporate requirements. 
D)  All divisions will receive the same capital allocation for the next year because this organizational structure rewards divisional managers based on achievement of strategic goals. 
A)  The poorest-performing division will get the highest capital allocation so that it can fix its problems and achieve the rate-of-return goal next year. 
B)  The highest-performing division will get the highest capital allocation because it has the best prospects for creating more wealth for the shareholders next year. 
C)  The average-performing divisions which met the rate-of-return goals will receive the highest allocation because their performance exactly matched corporate requirements. 
D)  All divisions will receive the same capital allocation for the next year because this organizational structure rewards divisional managers based on achievement of strategic goals.

Question 10

Organizational inertia often prompts top management to initiate structural change when organizational performance levels drop.

Accepted Answer

A) True 
 B)False

Question 11

Strategy has an important influence on structure, once a particular structure is in place, that structure influences strategy.

Accepted Answer

A) True 
 B)False

Question 12

Discuss the difference between strategic controls and financial controls.

Accepted Answer

Strategic and financial controls are bot

Question 13

Implementing the multi-domestic strategy requires decentralization to:

Accepted Answer

A)  facilitate the tailoring of products to the demand in local markets. 
B)  develop economies of scale. 
C)  achieve economies of scope. 
D)  reduce bureaucracy and speed up decision making. 
A)  facilitate the tailoring of products to the demand in local markets. 
B)  develop economies of scale. 
C)  achieve economies of scope. 
D)  reduce bureaucracy and speed up decision making.

Question 14

Organizational structures must be both stable and flexible.

Accepted Answer

A) True 
 B)False

Question 15

Firms seeking to compete on the basis of cost leadership particularly need support from the ______ and ______ functions.

Accepted Answer

A)  finance; accounting 
B)  manufacturing; process R&D 
C)  product R&D; marketing 
D)  management information; finance 
A)  finance; accounting 
B)  manufacturing; process R&D 
C)  product R&D; marketing 
D)  management information; finance

Question 16

After years of negotiating short-term contracts with its suppliers, Icon Images has decided to agree to longer-term contracts. In doing this, Icon Images is hoping to:

Accepted Answer

A)  reduce transaction costs. 
B)  increase negotiating leverage with suppliers. 
C)  become less dependent on its suppliers. 
D)  move toward horizontal alliances with its suppliers. 
A)  reduce transaction costs. 
B)  increase negotiating leverage with suppliers. 
C)  become less dependent on its suppliers. 
D)  move toward horizontal alliances with its suppliers.

Question 17

Toyota and its suppliers have a relationship in which Toyota encourages suppliers to modernize their facilities and provides them with technical and financial assistance to do so. It also promotes longer-term contracts with suppliers and enables engineers in the supplier companies to have better communication with Toyota. This is an example of a(n):

Accepted Answer

A)  worldwide product divisional structure. 
B)  functional structure. 
C)  SBU multidivisional structure. 
D)  strategic network. 
A)  worldwide product divisional structure. 
B)  functional structure. 
C)  SBU multidivisional structure. 
D)  strategic network.

Question 18

A firm pursuing an unrelated diversification strategy will utilize a ______ structure.

Accepted Answer

A)  network 
B)  cooperative form multidivisional 
C)  competitive form multidivisional 
D)  functional 
A)  network 
B)  cooperative form multidivisional 
C)  competitive form multidivisional 
D)  functional

Question 19

The fewest integrative devices are used in the ______ structure.

Accepted Answer

A)  simple 
B)  competitive multidivisional 
C)  SBU 
D)  network 
A)  simple 
B)  competitive multidivisional 
C)  SBU 
D)  network

Question 20

An SBU structure consists of at least three levels: the top level, the corporate headquarters; the next level, the strategic business units (SBUs); and the final level, SBU divisions.

Accepted Answer

A) True 
 B)False

Which of the following is TRUE?

Discuss the organizational structures used to implement the different business-level strategies.

Over time, large and complex organizations must customize their structure to fit their unique strategic needs.

Research shows that structure has a more important influence on strategy than the reverse and hence the emphasis of the chapter on the subject of structure.

Which of the following is a TRUE statement about implementing corporate-level strategies and effective organizational structures?

The BEST multidivisional structure to use:

It is easiest to identify the company that functions as the strategic center firm in:

A multidomestic strategy would be associated with:

Organizational inertia often prompts top management to initiate structural change when organizational performance levels drop.

Strategy has an important influence on structure, once a particular structure is in place, that structure influences strategy.

Discuss the difference between strategic controls and financial controls.

Implementing the multi-domestic strategy requires decentralization to:

Organizational structures must be both stable and flexible.

Firms seeking to compete on the basis of cost leadership particularly need support from the and functions.

After years of negotiating short-term contracts with its suppliers, Icon Images has decided to agree to longer-term contracts. In doing this, Icon Images is hoping to:

A firm pursuing an unrelated diversification strategy will utilize a ______ structure.

The fewest integrative devices are used in the ______ structure.

An SBU structure consists of at least three levels: the top level, the corporate headquarters; the next level, the strategic business units (SBUs); and the final level, SBU divisions.

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 11: Organizational Structure and Controls

Which of the following is TRUE?

Discuss the organizational structures used to implement the different business-level strategies.

Over time, large and complex organizations must customize their structure to fit their unique strategic needs.

Research shows that structure has a more important influence on strategy than the reverse and hence the emphasis of the chapter on the subject of structure.

Which of the following is a TRUE statement about implementing corporate-level strategies and effective organizational structures?

The BEST multidivisional structure to use:

It is easiest to identify the company that functions as the strategic center firm in:

A multidomestic strategy would be associated with:

Organizational inertia often prompts top management to initiate structural change when organizational performance levels drop.

Strategy has an important influence on structure, once a particular structure is in place, that structure influences strategy.

Discuss the difference between strategic controls and financial controls.

Implementing the multi-domestic strategy requires decentralization to:

Organizational structures must be both stable and flexible.

Firms seeking to compete on the basis of cost leadership particularly need support from the ______ and ______ functions.

After years of negotiating short-term contracts with its suppliers, Icon Images has decided to agree to longer-term contracts. In doing this, Icon Images is hoping to:

A firm pursuing an unrelated diversification strategy will utilize a ______ structure.

The fewest integrative devices are used in the ______ structure.

An SBU structure consists of at least three levels: the top level, the corporate headquarters; the next level, the strategic business units (SBUs); and the final level, SBU divisions.

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Strategic Leadership

Strategic Entrepreneurship

Filters

Firms seeking to compete on the basis of cost leadership particularly need support from the and functions.