Question 1

Discuss the advantages and disadvantages of a simple organizational structure.

Accepted Answer

The answer of Discuss the advantages and disadvantages of a...

Question 2

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 diversity

Question 3

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 4

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

Accepted Answer

A)  managerial 
B)  executive 
C)  social responsibility 
D)  administrative

Question 5

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.

Question 6

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 7

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 division

Question 8

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

The answer of What is a barrier-free organization? Discuss the...

Question 9

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 10

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)  opportunities

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.

Question 12

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; definition

Question 13

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 divisions

Question 14

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 15

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)  internationalized

Question 16

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 markets

Question 17

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 18

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 19

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 20

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)  geographic

Exam 10: Creating Effective Organizational Designs

Discuss the advantages and disadvantages of a simple organizational structure.

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?

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.

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

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

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.

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.

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.

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

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

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

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

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

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

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.

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

The most appropriate type of organizational structure to select is dependent upon the product or service the company provides.

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.

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.

When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a ________ structure.