Question 1

What most likely happens when a firm optimizes its organizational structure to its current situation?

Accepted Answer

A)   It plants the seed of subsequent failure: the tightly coupled system can break apart when internal or external pressures occur.
B)   It achieves superior performance.
C)   It makes it difficult for managers to make the necessary changes due to its effects on resource allocation and power distribution.
D)   It transforms strategy into actions and business models.E) A) and B)
F) B) and C)

Question 2

Are strategy formulation and strategy implementation independent activities? Explain.

Accepted Answer

Formulating an effective strategy is a n...

Question 3

Discuss how a cost-leadership strategy is used with a functional structure.

Accepted Answer

The goal of a cost-leadership strategy i...

Question 4

A firm's _____ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed.

Accepted Answer

A)   norm
B)   culture
C)   structure
D)   controlE) A) and B)
F) A) and C)

Question 5

Which of the following real-world scenarios best exemplifies the use of organizational culture to build competitive advantage?

Accepted Answer

A)   W.L. Gore & Associates organizes its employees into project-based teams.
B)   Apple develops high-tech products that are preferred by consumers across the world.
C)   Southwest Airlines pilots sometimes help load baggage, which results in quick turnaround time.
D)   GM offers compensation if its products do not meet a consumer's expectations.E) B) and C)
F) A) and D)

Question 6

A functional structure is recommended when a firm:

Accepted Answer

A)   has a broad focus in terms of its product/service offerings.
B)   has a low level of diversification.
C)   has a low degree of specialization.
D)   diversifies into different product lines and geographies.E) None of the above
F) C) and D)

Question 7

Which of the following types of groups is most susceptible to groupthink?

Accepted Answer

A)   A diverse group
B)   A cohesive group
C)   A heterogeneous group
D)   A decentralized groupE) B) and C)
F) B) and D)

Question 8

Kolt Inc., a large and successful retail chain on the West Coast, decides to expand its operations across the U.S.Which of the following organizational structures should Kolt Inc.use?

Accepted Answer

A)   Basic
B)   Simple
C)   Multidivisional
D)   FunctionalE) B) and C)
F) All of the above

Question 9

Why are controls like budgets and operating procedures that McDonald's implements known as input controls?

Accepted Answer

A)   They are independent of an organization's culture.
B)   They are implemented by corporate headquarters.
C)   They are considered before employees make any decisions.
D)   They are ad-hoc and not codified.E) B) and D)
F) B) and C)

Question 10

Walmart is an example of a(n) _____ organization.

Accepted Answer

A)   organic
B)   mechanistic
C)   decentralized
D)   informalE) All of the above
F) None of the above

Question 11

How should managers use a related-diversification strategy in a multidivisional organizational structure?

Accepted Answer

Managers using the multidivisional organ...

Question 12

How can firms overcome the lack of cross-departmental collaboration in a functional structure?

Accepted Answer

To overcome the lack of cross-department...

Question 13

McDonald's operates Hamburger University that trains students to ensure consistent food quality across its outlets throughout the world.This indicates that McDonalds's:

Accepted Answer

A)   is organic in nature.
B)   is mechanistic in nature.
C)   has an informal structure.
D)   has a decentralized structure.E) None of the above
F) B) and D)

Question 14

Opal, a recent fashion design school graduate, has received praise for her clothing designs from her peers and friends on social networking sites; this has inspired her to set up a store where she can design and sell apparel.After experiencing some success with sales, she recruits two employees to handle customers at the store.However, she handles other day-to-day affairs herself, while continuing to design clothes.Which of the following is likely to be a pitfall of this organizational structure established by Opal?

Accepted Answer

A)   Once the firm starts growing and attracting more customers she is likely to feel overloaded.
B)   Hiring more employees will result in loss of intellectual property.
C)   People are highly unlikely to buy clothes from a store run by a fashion design student.
D)   The online admiration of her designs will not translate into sales.E) All of the above
F) A) and B)

Question 15

Is centralization more effective than decentralization? Illustrate with examples.

Accepted Answer

Students' answers will vary.Whether cent...

Question 16

Plow Inc.is a greeting card manufacturing company.Plow's market dominance exists primarily because of the innovative designs of its greeting cards when compared to those of its competitors.In this scenario, Plow Inc.'s managers must ideally rely on a functional structure that resembles a(n) _____.

Accepted Answer

A)   simple organization
B)   organic organization
C)   mechanistic organization
D)   integrated organizationE) A) and B)
F) B) and C)

Question 17

Which of the following is an unintended side-effect of a high degree of specialization in an organization?

Accepted Answer

A)   Decreased trade-off between breadth and depth of knowledge
B)   Decreased opportunities for the division of labor
C)   Reduced employee satisfaction due to repetition of tasks
D)   Reduced productivityE) A) and D)
F) A) and C)

Question 18

Discuss how a differentiation strategy is used with a functional structure.

Accepted Answer

The goal of a differentiation strategy i...

Question 19

Explain the use of an ambidextrous strategy in implementing an integration strategy.

Accepted Answer

Managers can implement an integration st...

Question 20

Which of the following is true of a functional structure?

Accepted Answer

A)   It offers a lower degree of specialization than a simple structure.
B)   It relies on a relatively flat organizational structure.
C)   It offers decentralized management.
D)   It relies on bottom-up communication rather than top-down communication.E) A) and B)
F) All of the above

Exam 11: Organizational Design: Structure, Culture, and Control

Which of the following types of groups is most susceptible to groupthink?

Correct Answer
verified

Kolt Inc., a large and successful retail chain on the West Coast, decides to expand its operations across the U.S.Which of the following organizational structures should Kolt Inc.use?

Correct Answer
verified

What most likely happens when a firm optimizes its organizational structure to its current situation?

Correct Answer
verified

Which of the following is an unintended side-effect of a high degree of specialization in an organization?

Correct Answer
verified

A firm's _____ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed.

Correct Answer
verified

Correct Answer
verified

Are strategy formulation and strategy implementation independent activities? Explain.

Correct Answer
verified
Formulating an effective strategy is a n...
View Answer

Why are controls like budgets and operating procedures that McDonald's implements known as input controls?

Correct Answer
verified

A functional structure is recommended when a firm:

Correct Answer
verified

Which of the following is true of a functional structure?

Correct Answer
verified

Discuss how a differentiation strategy is used with a functional structure.

Correct Answer
verified
The goal of a differentiation strategy i...
View Answer

Explain the use of an ambidextrous strategy in implementing an integration strategy.

Correct Answer
verified
Managers can implement an integration st...
View Answer

Plow Inc.is a greeting card manufacturing company.Plow's market dominance exists primarily because of the innovative designs of its greeting cards when compared to those of its competitors.In this scenario, Plow Inc.'s managers must ideally rely on a functional structure that resembles a(n) _____.

Correct Answer
verified

How can firms overcome the lack of cross-departmental collaboration in a functional structure?

Correct Answer
verified
To overcome the lack of cross-department...
View Answer

How should managers use a related-diversification strategy in a multidivisional organizational structure?

Correct Answer
verified
Managers using the multidivisional organ...
View Answer

Walmart is an example of a(n) _____ organization.

Correct Answer
verified

Which of the following real-world scenarios best exemplifies the use of organizational culture to build competitive advantage?

Correct Answer
verified

Is centralization more effective than decentralization? Illustrate with examples.

Correct Answer
verified
Students' answers will vary.Whether cent...
View Answer

McDonald's operates Hamburger University that trains students to ensure consistent food quality across its outlets throughout the world.This indicates that McDonalds's:

Correct Answer
verified

Discuss how a cost-leadership strategy is used with a functional structure.

Correct Answer
verified
The goal of a cost-leadership strategy i...
View Answer

Exam 11: Organizational Design: Structure, Culture, and Control

Which of the following types of groups is most susceptible to groupthink?

Correct AnswerverifiedShow Answer

Kolt Inc., a large and successful retail chain on the West Coast, decides to expand its operations across the U.S.Which of the following organizational structures should Kolt Inc.use?

Correct AnswerverifiedShow Answer

What most likely happens when a firm optimizes its organizational structure to its current situation?

Correct AnswerverifiedShow Answer

Which of the following is an unintended side-effect of a high degree of specialization in an organization?

Correct AnswerverifiedShow Answer

A firm's _____ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Are strategy formulation and strategy implementation independent activities? Explain.

Correct AnswerverifiedFormulating an effective strategy is a n...View AnswerShow Answer

Why are controls like budgets and operating procedures that McDonald's implements known as input controls?

Correct AnswerverifiedShow Answer

A functional structure is recommended when a firm:

Correct AnswerverifiedShow Answer

Which of the following is true of a functional structure?

Correct AnswerverifiedShow Answer

Discuss how a differentiation strategy is used with a functional structure.

Correct AnswerverifiedThe goal of a differentiation strategy i...View AnswerShow Answer

Explain the use of an ambidextrous strategy in implementing an integration strategy.

Correct AnswerverifiedManagers can implement an integration st...View AnswerShow Answer

Plow Inc.is a greeting card manufacturing company.Plow's market dominance exists primarily because of the innovative designs of its greeting cards when compared to those of its competitors.In this scenario, Plow Inc.'s managers must ideally rely on a functional structure that resembles a(n) _____.

Correct AnswerverifiedShow Answer

How can firms overcome the lack of cross-departmental collaboration in a functional structure?

Correct AnswerverifiedTo overcome the lack of cross-department...View AnswerShow Answer

How should managers use a related-diversification strategy in a multidivisional organizational structure?

Correct AnswerverifiedManagers using the multidivisional organ...View AnswerShow Answer

Walmart is an example of a(n) _____ organization.

Correct AnswerverifiedShow Answer

Which of the following real-world scenarios best exemplifies the use of organizational culture to build competitive advantage?

Correct AnswerverifiedShow Answer

Is centralization more effective than decentralization? Illustrate with examples.

Correct AnswerverifiedStudents' answers will vary.Whether cent...View AnswerShow Answer

McDonald's operates Hamburger University that trains students to ensure consistent food quality across its outlets throughout the world.This indicates that McDonalds's:

Correct AnswerverifiedShow Answer

Discuss how a cost-leadership strategy is used with a functional structure.

Correct AnswerverifiedThe goal of a cost-leadership strategy i...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Formulating an effective strategy is a n...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The goal of a differentiation strategy i...
View Answer

Correct Answer
verified
Managers can implement an integration st...
View Answer

Correct Answer
verified

Correct Answer
verified
To overcome the lack of cross-department...
View Answer

Correct Answer
verified
Managers using the multidivisional organ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Students' answers will vary.Whether cent...
View Answer

Correct Answer
verified

Correct Answer
verified
The goal of a cost-leadership strategy i...
View Answer