Strategic Management: Chapter 11

True or False: Organizational culture should never change.

False

The reliance of Mcdonalds on detailed instructions to ensure consistent quality and service worldwide is an example of standard operating procedures as _____________.

input controls

Which of the follwoing must a firm do in order to effectively implement a cost leadership strategy

use functional structure that has mechanistic organizational elements

Zappos is the only large company organized as a halocracy. What does this say about Zappos?

Zappos is an innovative and risk taking company

Because executives make decisions about structure and strategy, __________.

a change in leadership often results in a change in culture

Which of the following enables a firm to connect its centers of excellence independent of where they are located in the world

a network structure

Firms that pursue ________ strategy tend to use a global structure.

a transnational

Teju, like his colleagues, wears jeans, and t-shirts to work, and he has a standing desk in an open floor plan. When he and his team reach a project milestone, they celebrate by going to a local kaokey bar. These are all examples of the firms _____________

artifacts

When supporting a related-diversification strategy with the M-form organizational structure, managers typically ____________.

concentrate decision making at the top of the organization

What is the main reason why boards of directors fire CEOs?

ineffective strategy implementation

The organizational structure at Gore may be described as ___________.

informal and decentralized

The inability to effectively deal with higher levels of _________, a common result of growth, is a weakness of the functional structure.

diversification

Which of the following terms describes searching for new knowledge that may enhance a firms futurer performance?

exploration

The organizational structure element that deals witht he degree to which emplyees are guided by specific, codified rules and processes is known as ___________.

formilization

Thanh works in the engineering and manufacturing division of his company. Other departments include marketing, accounting, human resources, and research and developement. Each department reports to the CEO. Thanhs company is organized accoding to a _______ structure

funtional

Groups that are highly cohesive and lack diversity are at risk of falling victim to ___________.

groupthink

A top-down strategic plan generally takes place in which type of organization?

highly centralized

Motivation that is driven by the employees interest and the meaning of the work itself is called ________ motivation

intrinsic

When the span of control within an organization is wide, one manager _________

many employees

Mathc the corporate strategy with the appropriate structure.

Functional Structure -Single business -dominant business Competitive M-Form -Related diversification -unrelated diversification

Which three key levers can managers use when shaping their organization into a firm with the highest level of competitive advantage?

-structure -control -culture

Which of the following are factors that influenced the shift from closed innovation to open innovation?

-the increasing supply and mobility of skilled workers -the growth of venture capital

Which of the following activities would be defined by a firms organizational structure?

-the orchestration of the work efforts of individuals and teams -the distribution resources

Which of the following are the key elements of organizational culture?

-artifcacts -norms -values

Which of the following are exampled of input controls?

-budgets -standard operating procedures

Which of the following are characteristics of simple organizational structures?

-decentralized decision making -low formalization -flat hierarchies

Which of the following are examples are examples of artifacts of an organizations culture?

-dress code -formal vocabulary -private offices

Which of the following are frequently associated with organic organizations?

-greater employee creativity -greater employee satisfaction -swifter decision making

The firms unwillingness to alter how things are currently done is known as ________.

Intertia

Which type of organization attempts to balance and harness different activities in trade off situations?

Ambidextrous organization

Catergorize the building blocks of organizational sturcutre for mechanistic versus organic organizations

Mechanistic Organizations -Centralized -Cost leadership strategy -High Degree of formilization -Mcdonalds -Tall Structure -high degree of specilization Organic Organizations -Flat Structure -Low degree of specilization -Zappos -Decentralized -Differentiation Strategy -Low degree of formilization

One of the disadvantages of a matrix structure is that __________.

Reporting structures are often unclear

The element of organizational structure that seperates the tasks of one job from the task of another is known as

Specilization

True or False: Firms that pursue either related or unrelated diversification generally emply a multidivisional structure.

True

True or false: Firms that are supporting an unrelated diversification strategy through the use of the M-form structure should decentralize decsion making

True

What is important is defined by ____________: which attitudes and behavior are deemed appropriate are defined by ____________.

Values; Norms

Which of the following is an example of how values and norms can act as a control mechanism?

by helping employees address unpredictable problems

Strategy implementation frequently fails because managers __________.

cannot make the needed adjustments to transform strategy into actions because of its effect on the firms resource allocation and power distribution

Which of the following types of control defines expected results in order to guide employee behavior

output controls

Which type of structure uses domain expertise to separate emplyees into specific areas based on their purpose, such as sales and human resources?

A functional structure

Which of the following are the four essential aspects of an organizational structure?

-hierarchy -specialization -formalization -centralization

Which of the following statements are true of the network organizational structure?

-it enables firms to access communities of practice -it should be supported by uniform, company-wide policies and procedures.

Which of the following statements about closed innovation are true?

-it is time consuming -it is a costly approach

Match the global strategy (on the left) with the appropriate stucture (on the right).

International- Functional Multidomestic-Multidivesional wiht divisions according to geographic areas; decentralized decisions Global Standardization- multidivisional with divisions according to products; centralized decesion making Transnational- global matrix; balance of centralized and decentralized decesion making, two layers of hierachy (geographic and product)

The matrix stucture combines the benefits of the M-form with those of the functional structure. Which of the following are its functional sturcture benefits?

-responsiveness -decentralization

What are two internal governance mechanisms put in place to align principal and agent incentives?

-reward systems -strategic control

Which of the following are reasons why it is difficult to imitate the cultures of successful firms?

-social complexity -causal ambiguity

Which of the following accurately describe mechanistic organizations?

-they have tall hierarchies -they are highly specialized

Which of the following are true cross functional teams?

-they work on a specific product or project -they are meant to facilitate collaboration between departments

What do managers use the key levers of structure, culture, and control for?

-to coordinate work -to motivate employees

Which of the following determines the allocation of resources and the organization and operation of workers?

A firms organizational structure.

How does an organizations culture influence emplyee behavior?

Employees are motivated by positive culture because it appeals to their heigher ideals

Which of the following statements about the building blocks of an organization structure is true?

Hierarchy is one of the building blocks of an organizational structure.

Which of the following use codified policies and procedures to define and direct employee behavior?

Input Controls

Which of the following sturctures is divided into several distinct business units, each of which has its own profit-and-loss center

The multi divisional structure

During the 20th century, companies tended to carry out R&D inaternally, an approach knon as _____________.

closed innovation

When a companys culture is defined and shaped by the people who start it, it is known as founder

imprinting

Gracielas used to be the industry leader in restraurant supplies, but over the years cometition grew and the companys market share declined. Gracielas has launched several maketing campaigns and inatroduced new products and services. However not much else in the company has changed. and it still relies on the same team of managers. Gracielas is experiencing _________

inertia

Disadvatages of the ______ structure include organizational complexity, increased administrative costs, slow decision making, and difficulty in implementation.

matrix

The type of structure that is used by experienced firms and consists of distinct, essentially independent startegic business units is the ________.

multidivisional

The primary way cultural change is enacted in a company is through __________.

new leadership

Which of the following has a major influence on employee conformity and performance.

peer control

The functional areas present in a functional structure frequently correspnd to which of the following?

stages in the value chain

The portion of the strategic management process that concers the organization, coordination, and intergration of work processes is ____________.

strategic implementation

When "_________" managers limit themselves to strategies that maintain the status qou

strategy follows structure

When a firms emplyees have internalized norms and share the firms core values, the firm is said to have a _________ culture

strong

Which of the following structures is divided into several distinct business units, each of which has its own profit and loss center

the multi-divisional structure

Which of the following statements regarding input controls is true?

they are designed by management before emplyees make any business decisions

How did Zappos formulate its list of ten core values?

through a bottom up initiative

What is the goal of an internal capital market?

to allocate capital more efficiently than would happen in an external capital market