Reference no: EM132236601
1. A domestic product division structure is used when global strategies require that the corporate offices be responsible for overall efficiency and performance.
2. When an organization with a simple structure ________ its sales revenue and volume of outputs, it typically moves to a functional structure.
distributes
increases
decreases
depletes
3. The strategy that a firm chooses dictates such structural elements as the division of tasks, the need for integration of activities, and authority relationships within the organization. This implies that
strategy follows structure.
structure follows strategy.
strategy can effectively be formulated without considering structural elements.
structure typically has a very small influence on the strategy of a firm.
4. True or false
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 product diversity.
5. True or false
As firms grow, owner managers rarely need to hire functional specialists to handle the increased information-processing burden.
6. Functional types of organizational structure permit a firm to __________ its coordination and control within each of the functional areas.
establish
enhance
pool
leverage
7. Organizations are increasingly using teams for many reasons. The difference between a good team and an outstanding team has been found to be
the degree to which they believed in one another and created an atmosphere of encouragement.
the combined technical skills of the members.
similarities in the way team members solve problems.
similarities in the age and experience of team members.
8. True or false
According to the text, boundaryless organizational designs need not replace traditional forms of organizational structure in order to be effective.
9. The ___________ organization becomes a central hub surrounded by networks of outside suppliers and specialists, and parts can be added or taken.
bounded
barrier-free
modular
virtual
10. True or false
A global start-up typically benefits from lower communication, coordination, and transportation costs.
11. True or false
Global start-ups are global from inception and seek to derive competitive advantage from multiple countries presence.
12. True or false
A small firm with a simple structure often fosters creativity and individualism because of its formal atmosphere.
13. Multidomestic strategies are driven by political and cultural imperatives requiring managers within each country to respond to local conditions. An appropriate structure for these kinds of firms and their products and market diversity increases would be a
worldwide functional.
worldwide matrix division.
geographic area division.
worldwide product division.
14. True or false
Different types of boundaries place limits on organizations in order to foster high degrees of interaction with outside influences and varying levels of permeability.
15.True or false
A strategy of related diversification requires a need to reorganize around product lines or geographic markets. This leads to a divisional structure.
16.True or false
Ambidextrous organizational designs are useful for firms that wish to create modest, incremental innovations at the same time as dramatic, breakthrough innovation. This is done by disassociating adaptability and alignment of values and coordination across organizational activities.
17. A simple structure is characterized by
highly centralized decision making.
low formality and low creativity.
high formality and low centralization.
high specialization of tasks.
18. True or false
In a simple structure where the owner manager makes most of the important decisions, few rules and regulations are used to maintain order.
19. True or false
The strategy and structure of a firm change as the firm increases in size, diversifies into new product markets, and expands its geographic scope.
20. True or false
A simple organizational structure may lead to problems such as clear boundaries of authority and few career advancement options.
21. Functional structures are usually found in organizations where there
is no vertical integration.
is a single or closely related product.
exists a strong need to decentralize decision making.
are unrelated service offerings.
22. True or false
Jack Welch, former CEO of GE, believes that all internal and external organizational boundaries should become open and more permeable.
23. A strategy of related diversification requires a need to reorganize around product lines or geographic markets. This is likely to result in a ______________ structure.
divisional
worldwide
matrix
functional
24. True or false
To enhance integration and control of related product market activities, the functional structure increases centralization compared to a divisional structure.
25. Deciding upon the most appropriate structure when a firm has international operations depends on the
extent of international expansion.
strategic objectives.
mission.
degree of market diversity.