Chapter 11

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

A mechanistic structure offers a centralized structure with well-defined lines of authority

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

A simple structure could not provide the effective division, coordination, and integration of work required to accommodate future growth

Which of the following is an advantage offered by a functional structure?

It allows for a higher degree of specialization and deeper domain expertise.

Which of the following statements is true of strategy in an organization?

Organizational structure must follow strategy in order for firms to achieve superior performance.

Broadview Company integrated certain important functions of Widget.com with Widget, while keeping other functions independent. To support this integration, the president of Widget shifted compensation incentives for both senior teams to accomplish joint goals rather than to focus solely on each business unit's performance. This scenario best exemplifies a(n)

ambidextrous organization.

A typical college of business (or school of management) has several areas such as management, marketing, finance, accounting, MIS, and so on. This is an example of a(n) _____ structure

functional

A functional structure is recommended when a firm

has a low level of diversification.

What element of organizational structure deals with positioned-based reporting lines?

hierarchy

Zappos split the organization into 10 standalone units. Which of the following does this scenario best illustrate?

how an organization accommodates strategy implementation through a flexible organizational structure

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

matrix

An organization is characterized as having a flexible division of labor, distributed decision making, and generalized knowledge of how to accomplish strategic goals valued. This organization is most likely _____ in nature.

organic

To effectively implement a differentiation strategy, managers rely on a functional structure that resembles an organization that is highly

organic.

Successful _____ requires managers to design and shape structure, culture, and control mechanisms.

strategy implementation