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_____ refers to the degree to which decision making is concentrated at the top of the organization.


A) Specialization
B) Formalization
C) Naturalization
D) Centralization

E) B) and D)
F) C) and D)

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What are the requirements for an integration strategy to be successful?

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A successful integration strategy requires reconciliation of the trade-offs between differentiation and low cost.To effectively implement an integration strategy, the firm must be both efficient and flexible.For example, the integrator must balance centralization (to control costs)with decentralization (to foster creativity and innovation).Managers must, therefore, attempt to combine the advantages of the functional-structure variations used for cost leadership and differentiation while mitigating their disadvantages.Moreover, the integrator needs to develop several distinct core competencies to both drive up perceived value and lower cost.It must further pursue both product and process innovations in an attempt to reap economies of scale and scope.All of these challenges make it clear that although an integration strategy is attractive at first glance, it is quite difficult to implement given the range of important trade-offs that must be addressed.

Which of the following is true of W.L.Gore & Associates, which has a lattice organizational form?


A) It has a high degree of centralization.
B) All employees are empowered to speak to all other employees in the organization.
C) Its culture has been linked to lower employee satisfaction and retention.
D) The degree to which a task is divided into separate jobs is high.

E) C) and D)
F) B) and C)

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B

Which of the following statements best describes groupthink?


A) It is a process by which the founder defines and shapes an organization's culture, which can persist for decades after his or her departure.
B) It is a situation in which organizations compete with one another for resources, but they also need to cooperate to share competencies.
C) It is a process whereby employees internalize an organization's values and norms through immersion in its day-to-day operations.
D) It is a situation in which opinions coalesce around a leader without individuals critically challenging and evaluating that leader's opinions and assumptions.

E) B) and C)
F) C) and D)

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Frappe operates as a strategic business unit (SBU) under More or Less Inc., a home-furnishings manufacturer.From this information, it may be reasonable to infer that:


A) Frappe does not have its own profit-and-loss responsibility.
B) Frappe is dependent on the other SBUs in More or Less Inc.
C) Frappe has a matrix organizational structure.
D) Frappe is led by its own CEO (or equivalent general manager) .

E) B) and C)
F) C) and D)

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D

Which of the following is a feature of an organic organization?


A) High degree of specialization
B) Rigid division of labor
C) Clear lines of authority
D) High span of control

E) A) and B)
F) B) and C)

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What is organizational design? What are its key components?

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Organizational design is a process of cr...

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Why did W.L.Gore reorganize itself into a functional structure from a simple structure?


A) A simple structure was too formalized, specialized, and centralized to really facilitate any kind of productivity.
B) A functional structure is more decentralized.
C) A simple structure could not provide the effective division, coordination, and integration of work required to accommodate future growth.
D) A functional structure has a tall hierarchical structure that relies on bottom-up communication.

E) A) and C)
F) C) and D)

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How does a strong organizational culture build competitive advantage?

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Strong organizational cultures that are ...

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Describe the structure used by a multinational enterprise (MNE)when pursuing a global-standardization strategy.

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A multinational enterprise (MNE)attempts...

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Why does Zappos offer its new recruits $2,000 to quit at the end of the first week of their job?


A) It is confident that employees will be impressed with the company's creativity and will stay on for a longer term.
B) It does not believe that a firm's culture can flow from its values when they are linked to the company's reward system.
C) It believes that individuals who choose to stay on will fit in with the Zappos culture.
D) It is certain that a firm's culture flows only from founder imprinting.

E) B) and C)
F) All of the above

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Output controls can sometimes discourage collaboration among different strategic business units.However, more and more work requires creativity and innovation, especially in highly developed economies.One way firms are grappling with this issue is by:


A) introducing results-only-work-environments to tap intrinsic motivations.
B) refining the budgeting process to encourage more department collaboration.
C) updating standard operating procedures to allow more process flexibility.
D) using output controls only when the goal is to ensure a predictable outcome.

E) A) and B)
F) All of the above

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Which of the following is true of the process of organizing for competitive advantage?


A) To maintain competitive advantage, companies need to restructure as they grow and the competitive environment changes.
B) Strategy formulation and strategy implementation are independent activities.
C) Organizing for competitive advantage is a static and not a dynamic process.
D) Formulating an effective strategy is a necessary and sufficient condition for gaining and sustaining competitive advantage.

E) A) and D)
F) B) and C)

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Why must managers use a mechanistic structure to implement a cost-leadership strategy?


A) A mechanistic structure offers a centralized structure with well-defined lines of authority.
B) A mechanistic structure allows for a lower degree of specialization.
C) A mechanistic structure offers continuous innovation and flexibility as well as creativity.
D) A mechanistic structure allows for the CEO to delegate tasks.

E) A) and C)
F) B) and C)

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Why is it difficult to imitate the organizational culture of firms like Southwest Airlines and Zappos?


A) Their culture reflects complex relationships with their employees, customers, and suppliers.
B) They produce products that cannot be copied easily because of their complex designs.
C) The employees in the organization themselves are unaware of the factors contributing to their organizational culture.
D) It is not commercially viable for other companies to implement the same culture.

E) A) and B)
F) A) and C)

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An organization that is organized according to strategic business units (SBUs) and also along organizational structures is most likely using a _____ structure.


A) functional
B) multidivisional
C) matrix
D) simple

E) A) and D)
F) A) and B)

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Florian just graduated from law school and wants to start his own law firm.It is best for Florian to use a _____ organizational structure.


A) functional
B) simple
C) mechanistic
D) matrix

E) C) and D)
F) B) and D)

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Curve Inc.is a software development firm based in California.It strives to provide highly differentiated software at cheaper prices when compared to its competitors.Which of the following organizational designs should Curve Inc.implement to ensure the maximum success of its business strategies?


A) Organic
B) Simple
C) Ambidextrous
D) Mechanistic

E) B) and D)
F) None of the above

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Since an organic structure helps a firm build core competencies in areas such as R&D and marketing, this structure is employed by firms that:


A) have a tall hierarchical structure.
B) pursue a differentiation strategy at the business level.
C) have a high degree of specialization and centralization.
D) focus on standardizing operating procedures.

E) None of the above
F) All of the above

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GM's insistence on sticking to a bureaucratic culture combined with its M-form structure and its subsequent failure to adapt to changing customer preferences for more fuel-efficient cars, produce higher quality, and create innovative designs best exemplifies _____.


A) decentralization
B) founder imprinting
C) groupthink
D) core rigidity

E) C) and D)
F) None of the above

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