Chapter 11 Quiz

Which of the following is a benefit of a high degree of formalization in an organization? increased creativity excellent customer service consistent results fast decision making

consistent results

Inkwell is a pen manufacturing company based in Massachusetts. Inkwell's main area of operation is Massachusetts, and it has a stronghold over the market. It employs a robust production system, which helps it sell pens at exceptionally low prices. In this scenario, which of the following strategies is Inkwell most likely using? ambidextrous strategy differentiation strategy integration strategy cost-leadership strategy

cost-leadership strategy

Strategic business units (SBUs) in a company that uses an unrelated-diversification strategy are in direct competition with each other because each SBU is evaluated as a standalone, profit-and-loss center. decision making is concentrated at the top of the organization. each SBU shares its core competencies with the other SBUs. the firm follows a single business or dominant business strategy at the corporate level.

each SBU is evaluated as a standalone, profit-and-loss center.

Over time, 3M has relied on the results-only-work-environment (ROWE) framework and has morphed into a highly science-driven innovation company. At 3M, employees are encouraged to spend 15 percent of their time on projects of their own choosing. If any of these projects look promising, 3M provides financing through an internal venture-capital fund and other resources to further develop their commercial potential. This real-world scenario best illustrates organizational culture. input controls. output controls. organizational strategy.

output controls.

Which of the following factors has led to a shift toward open innovation? the decreasing supply and mobility of skilled workers the decreasing availability of external options to commercialize ideas the exponential growth of venture capital the increasing capability of internal suppliers

the exponential growth of venture capital

Why was Yahoo's CEO, Jerry Yang, forced out in 2008? He focused on improving the user experience to drive online advertising revenues. He failed to implement necessary strategic changes after Yahoo lost its competitive advantage. He refused to accept the practice of obtaining consensus from his managers before making strategic changes. He made too many changes to the organizational structure of Yahoo.

He failed to implement necessary strategic changes after Yahoo lost its competitive advantage.

In terms of the key features of organic organizations, which of the following firms is most likely to have an organic structure? Merton Inc., a retail chain, which implements a rigid division of labor Meridian Inc.., a clothing company, which aims to produce clothes at lower prices Icebox, a software development firm, which focuses on building innovative products Underscore, a publishing company, where decision power is concentrated at the top

Icebox, a software development firm, which focuses on building innovative products

_____ seek to define and direct employee behavior through a set of codified rules and standard procedures. Output controls Input controls Decentralization Co-opetition

Input controls

Which of the following exemplifies the organic nature of W. L. Gore's organizational structure? Its employees exhibit lower levels of entrepreneurial behaviors and innovation. It avoids the use of virtual teams. It has no formal chain of command or standard operating procedures. Its employees are not allowed to review each other during performance appraisals.

It has no formal chain of command or standard operating procedures.

Which of the following best indicates that W. L. Gore & Associates has an informal and decentralized organizational structure? It prevents its associates from becoming shareholders in the company. It determines its employees' levels of compensation on the basis of their boss's evaluations. It is consistently ranked among the top 100 of the best companies to work for. It prefers face-to-face communication over e-mail and does not have an organizational chart.

It prefers face-to-face communication over e-mail and does not have an organizational chart.

Which of the following is a shortcoming of the matrix structure? It cannot effectively address a higher level of diversification, which often stems from further growth. Its implementation is difficult due to significant organizational complexity and increased administrative costs. It frequently lacks effective communication channels across departments. It often leads to an overload for the founder and/or CEO when the firms experience growth.

Its implementation is difficult due to significant organizational complexity and increased administrative costs.

Why is strategy implementation referred to as the "graveyard of strategy"? The levers that managers have at their disposal during the implementation stage of a strategy are insufficient. The successful implementation of a strategy requires key functions in the organization to compete with each other. It is a process that is independent of strategy formulation and is not necessary to ensure continued success. Managers often fail to implement a chosen strategy successfully despite extensive analysis of business environments.

Managers often fail to implement a chosen strategy successfully despite extensive analysis of business environments.

Why do firms' strategies often follow their structures instead of the other way around? Managers are eager to confront the inertia that often exists in established organizations. Strategy and structure are usually loosely coupled, providing them independent movement. External and internal pressures increase organizational inertia in an organization. Managers tend to consider strategies that do not change existing organizational structures.

Managers tend to consider strategies that do not change existing organizational structures.

A tightly coupled system of strategy and structure is prone to break apart when input and output controls restrict information flow. organizational culture becomes adaptive to change. managers fail to recognize the need for organizational inertia. external and internal shifts put pressure on the system.

external and internal shifts put pressure on the system.

Sam Walton was responsible for Walmart's cost-leadership strategy that continues to guide the company to this day. His influence on the organization's culture is best described as founder imprinting. differentiation. groupthink. co-opetition.

founder imprinting.

One disadvantage of a functional structure is that it cannot be converted into an ambidextrous structure. frequently lacks effective communication channels across departments. does not facilitate rich and extensive communication between members of the same department. does not allow the setting up of cross-functional teams.

frequently lacks effective communication channels across departments.

In order to implement a cost-leadership strategy effectively, a _________ structure is preferred in a firm. functional and mechanistic simple and organic functional and organic simple and M-form

functional and mechanistic

Which of the following is a characteristic of a mechanistic organization? low formalization flat hierarchy decentralization high degree of specialization

high degree of specialization

Which of the following is instrumental in creating a tightly coupled system of strategy and structure in an organization? dynamic organizational strategy and structure limited input and output controls financial metrics that focus on long-term performance managers that achieve a mastery of the firm's current environment

managers that achieve a mastery of the firm's current environment

Since W. L. Gore's core competency is innovation, a(n) ________ would most likely be detrimental to its efforts. mechanistic structure organic structure differentiation strategy integration strategy

mechanistic structure