434-Chapter 11-MC
The framework for R&D that involves permeable firm boundaries and allows for sharing of ideas and inventions is known as:
Open Innovation
If a co. fails to change its culture as the firm and environment change, the company's culture can turn into a core :
rigidity
Ravi works for a small co. The company owner makes all strategic decisions and manages the day-to-day operations. Ravi's co. has a _______ structure
simple
Employees learn about their firm's culture thru:
socialization
when ________________, managers limit themselves to strategies that maintain the status quo.
Strategy follows structure
Zappos is the only large co. organized as a holacracy. What does this say about Zappos?
Zappos is an innovative and risk-taking co.
Enables a firm to connect its centers of excellence independent of where they are located in the world:
a network structure
Type of organization that attempts to balance and harness different activities in trade-off situations:
ambidextrous organization
Most observable element of organizational culture?:
artifacts
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 karaoke bar. These are all examples of a firms:
artifacts
the organizational structure at Gore, in which everyone is encouraged to speak to anyone they wish to within the organization, is called a ______________ organizational form
boundaryless
strategy implementation frequently fails b/c managers:
cannot make the needed adjustments to transform strategy into actions b/c of its effect on the firm's resource allocation and power distribution
During the20th century, companies tended to carry out R&D internally, an approach known as:
closed innovation
Steve Jobs defined and shaped Apple's culture, and his influence continued even after he left the co. this is know as _______________
founder imprinting
Companies pursuing business-level strategies like cost leadership, differentiation, and integration should organize using a _________ stricture
functional
transnational global strategy:
global matrix; balance of centralized and decentralized decision making, two layers of hierarchy (geographic and product)
Multidomestic global strategy is:
multidivisional with divisions according to geographic areas; decentralized decision making
global standardization global strategy:
multidivisional with divisions according to products; centralized decision making
The portion of the strategic management process that concerns the organization, coordination, and integration of work processes is ____________
-Strategy implementation
A firm's unwillingness to alter how things are currently done is known as:
inertia
How did Zappos formulate its list of 10 core values?
-through a bottom-up initiative
Determines the allocation of resources and the organization and operations of workers:
-a firm's organizational structure
What type of structure uses domain expertise to separate employees into specific areas based on their purpose, such as sales and human resources?
-a funcitonal structure
These accurately describe organic organizations:
-a low degree of specialization -a flat organizational structure
Key elements of organizational culture:
-artifacts -norms -values
examples of input controls:
-budgets -standard operating procedures
Example of how values and norms can act as a control mechanism:
-by helping employees address unpredictable problems
Reasons why it is difficult to imitate the cultures of succesfful firms:
-causal ambiguity -social complexity
The extent to which the ability to make decisions rests with the ppl at the top of the firm is reffered to as:
-centralization
four essential aspects of an organizational structure:
-centralization -hierarchy -specialization -formalization
Three key levers that managers can use when shaping their organization into a firm with the highest level of compt. advtg. :
-control -culture -structure
True of an M-form:
-each division operates independently
Which terms describes the usage of current knowledge to enhance firm performance in the short term?
-exploitation
characteristics of simple organizational structures:
-flat hierarchies -decentralized decision making -low formalization
Organic Organizations:
-flat structure -low degree of specialization -low degree of formalization -EXAMPLE: Zappos -Differentiation strategy -decentralized
When a firm covers a limited geographic area and is narrowly focused in terms of product/service offerings, a _______ structure is recommended.
-functional
True about the building blocks of an organizational structure:
-hierarchy is one of the building blocks of an organizational structure
Mechanistic organizations:
-high degree of formalization -high degree of specialization -cost-leadership strategy -EXAMPLE: McDonald's -Tall structure -Centralized
A top-down strategic plan generally takes place in which type of organization?
-highly centralized
When a firm's organizational structure is tall, the span of control is:
-narrow
Hiroshl is considering a job offer from a large pharmeceutical co. As his interview he asks who his boss would be and how jobs and teams are assigned. Hiroshi is asking about the company's
-organizational structure
Examples of artifacts of an organization's culture:
-private offices -formal vocab -dress code
The matrix structure combines the benefits of the M-form with those of the functional structure. These are its functional structure benefits:
-responsiveness -decentralization
What are two internal governance mechanisms put in place to align principal and agent incentives?
-reward systems -strategic control
Functional structures:
-single business -dominant business
4 essential aspects of an organizational structure:
-specialization -hierarchy -centralization -formalization
The functional areas present in a functional culture frequently correspond to:
-stages in the value chain
If there are several levels of management b/w the lowest employee and the CEO, the firm has a ______ structure.
-tall
Activities that would be defined by a firm's organizational structure:
-the distribution of resources -the orchestration of the work efforts of individuals and teams
These accurately describe mechanistic organizations:
-they have a tall hierarchy -they are highly specialized
What do managers use the key levers of structure, culture, and control for?
-to motivate employees -to coordinate work
Competitive M-forms
-unrelated diversification -related diversification
what is important is defined by ___________, which attitudes & behavior are deemed appropriate are defined by _________
-values -norms
International global strategy is a:
Functional structure
The inability to effectively deal w higher levels of _________, a common result of growth, is a weakness of a the functional structure
diversification
The organizational structure element that deals w the degree to which employees are guided by specific, codified rules and processes is known as:
formalization
The structure, processes, and procedures of an organization are designed, put into place, reviewed, and reworked through a process known as:
organizational design
Goal of a differentiation strategy:
to control costs while offering products/services at a higher perceived value, thereby creating a compt. advtg.
Goal of organizational design:
to enable managers to translate their chosen strategy into a realized one
What must a firm do in order to effectively implement a cost-leadership strategy?
use a functional structure that has mechanistic organizational elements
Uses codified policies and procedures to define and direct employee behavior:
-input controls
A characteristic of a matrix organizational structure is that it __________
-is difficult to implement
True statements about closed innovation:
-it is time-consuming -it is a costly approach
True of network organizational structure:
-it should be supported by uniform, company-wide policies and procedures -it enables firms to access communities of practice
when the span of control within an organization is wide, one manager supervises
-many employees
strategy implementation is essentially:
how a firm performs its work
The element of organizational structure that separates the tasks of one job from the tasks of another is known as:
specialization