Business Strat chapter 11

Companies pursuing business-level strategies like cost leadership, differentiation, and integration should organize using a _____ structure.

functional

Firms that follow a single-business or dominant-business strategy at the corporate level generally employ a ______ structure.

functional

Thanh works in the engineering and manufacturing division of his company. Other departments include marketing, accounting, human resources, and research and development. Each department reports to the CEO. Thanh's company is organized according to a(n) ______ structure.

functional

When a firm covers a limited geographic area and is narrowly focused in terms of product/service offerings, a ______ structure is recommended.

functional

international

functional

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

functional structure

transnational

global matrix; balance of centralized and decentralized decision making, two layers of hierarchy (geographic and product)

A firm using a(n) ______ strategy is likely to have a multidivisional structure with the multiple divisions representing different products and centralized decision making.

global standardization

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

highly centralized

Strategy implementation is essentially __.

how a firm performs its work

When a company's culture is defined and shaped by the people who start it, it is known as founder ______.

imprinting

A firm's unwillingness to alter how things are currently done is known as ______.

inertia

A characteristic of a matrix organizational structure is that it ______.

is difficult to implement

A firm that is organized according to SBUs but also is decentralized in that different geographic locations are fully functional is likely organized in the ______ structure.

matrix

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

multidivisional

multidomestic

multidivisional with divisions according to geographic areas; decentralized decision making

global standardization

multidivisional with divisions according to products; centralized decision making

A firm using a(n) ______ strategy is likely to have a multidivisional structure with the multiple divisions representing different geographic areas and decentralized decision making.

multidomestic

The framework for R&D that involves permeable firm boundaries and allows for sharing of ideas and inventions is known as ______.

open innovation

When firms tie employee compensation and rewards to predetermined goals, such as a specific sales target, but do not specify the means to those results, they are using ______ controls.

output

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

output controls

Which are examples of strategic control-and-reward systems? (Check all that apply.) Multiple select question. output controls input controls reward point systems for customers organizational culture managerial hubris

output controls input controls organizational culture

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

reporting structures are often unclear

If a company 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 company. The company owner makes all strategic decisions and manages the day-to-day operations. Ravi's company has a _____ structure.

simple

Simple structures tend to be used by which group?

small companies with low organizational complexity

Steve Jobs defined and shaped Apple's culture, and his influence continued even after he left the company. This is known as ______.

founder imprinting

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

a firm's organizational structure

Big companies, such as Apple and Comcast, tend to have ______.

a higher degree of specialization than smaller companies

Which of the following statements about blue ocean strategy is true? Multiple choice question. It requires reconciling the trade-offs between differentiation and low cost. Its success requires that the firm that implements the strategy be highly centralized. It is the easiest type of strategy to implement. Its goal is to reduce costs by offering a standardized product to the mainstream customer.

It requires reconciling the trade-offs between differentiation and low cost.

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

Matrix

Which of the following is true of an M-form?

Each division operates independently.

How does an organization's culture influence employee behavior?

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

Which of the following terms describes searching for new knowledge that may enhance a firm's future performance?

Exploration

Which of the following statements is true regarding the relationship between strategy formulation and strategy implementation? Multiple choice question. Strategy implementation is at least as important as strategy formulation for success. Strategy formulation is far more important than strategy implementation. Neither strategy formulation nor strategy implementation has a significant effect on the success of a firm. Once a promising strategy has been formulated, implementing it is a simple task.

Strategy implementation is at least as important as strategy formulation for success.

Which of the following statements about open innovation is true? Multiple choice question. It is time-consuming and often unsuccessful. External R&D always produces more interesting ideas than internal R&D. The sharing of ideas and inventions from within the firm and from outside sources can go both ways. Ideas and inventions become the property of the firm funding the venture.

The sharing of ideas and inventions from within the firm and from outside sources can go both ways.

Which of the following statements about open innovation is true? Multiple choice question. The sharing of ideas and inventions from within the firm and from outside sources can go both ways. It is time-consuming and often unsuccessful. Ideas and inventions become the property of the firm funding the venture. External R&D always produces more interesting ideas than internal R&D.

The sharing of ideas and inventions from within the firm and from outside sources can go both ways.

Which of the following statements regarding input controls is true? Multiple choice question. They are designed to be considered before employees make any business decisions. They are designed to be considered after value-creating activities have been implemented and results evaluated. They offer flexibility so that employees can make immediate changes if the situation calls for them. They are created by employees and then go up the chain of command.

They are designed to be considered before employees make any business decisions.

Which two of the following accurately describe mechanistic organizations? (Check all that apply.) Multiple select question. They rely on decentralized decision making. They have a low level of specialization. They have a tall hierarchy. They are highly specialized.

They have a tall hierarchy. They are highly specialized.

True or false: Firms that pursue either related or unrelated diversification generally employ a multidivisional structure.

True

The extent to which the ability to make decisions rests with the people at the top of a firm is referred to as ______.

centralization

Which of the following tends to result in delayed response time and lower customer satisfaction?

centralized decision making

Mechanistic organizations tend to have ______.

codified operating procedures

Which of the following are benefits of a functional structure that also apply to the matrix structure? (Check all that apply.)

decentralized focus responsiveness

A firm would use input controls if it wanted to ______.

define and direct employee behavior through a set of explicit, codified rules and standard operating procedures

Which of the following terms describes applying current knowledge to enhance firm performance in the short term?

exploitation

The Foamy Mug, a chain of coffee shops, ensures consistent quality and service in each of its cafés by using policy and procedure manuals that explicitly describe employee tasks. The Foamy Mug is characterized by a high degree of ______.

formalization

The organizational structure element that deals with the degree to which employees are guided by specific, codified rules and processes is known as ______.

formalization

Taki works for a start-up company that is highly centralized and its employees are not allowed to wear headphones while working. However, the company offers a flexible work schedule, free childcare, and free yoga classes. These rules and perks describe the company's ______.

organizational culture

Which of the following terms encompasses a firm's member's shared values and norms?

organizational culture

Which are examples of strategic control-and-reward systems? (Check all that apply.) Multiple select question. organizational culture input controls managerial hubris output controls reward point systems for customers

organizational culture input controls output controls

The structure, processes, and procedures of an organization are designed, put into place, reviewed, and reworked through a process known as ______.

organizational design

Graciela's used to be the industry leader in restaurant supplies, but over the years competition grew and the company's market share declined. Graciela's has launched several marketing campaigns and introduced new products and services. However not much else in the company has changed, and it still relies on the same team of managers. Graciela's is experiencing ______.

organizational inertia

Hiroshi is considering a job offer from a large pharmaceutical company. At 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

Leslie, Juan, and Felicia all work for the same company. Leslie pays the bills and invoices customers, Juan makes sure the company's computers and phones work, and Felicia interacts with customers and sellers of the firm's products. This is an example of ______.

specialization

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

stages in the value chain

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

strategic control reward systems

A system that allows managers to specify goals, measure progress, and provide performance feedback by ensuring that the incentives of shareholders and employees are aligned is called a ______ system.

strategic control-and-reward

When "______," managers limit themselves to strategies that maintain the status quo.

strategy follows structure

The portion of the strategic management process that concerns the organization, coordination, and integration of work processes is __.

strategy implementation

Which of the following has been called the "graveyard of strategy" due to managers' high rate of failure when attempting it?

strategy implementation

Which of the following are effects that a strong organizational culture can have on employee behavior? Multiple select question. increased demand for hierarchy and supervision stronger commitment, engagement, and effort more effective cooperation behavior aligns more closely with the firm's strategic goals

stronger commitment, engagement, and effort more effective cooperation behavior aligns more closely with the firm's strategic goals

A firm's organizational structure directly determines which of the following aspects of the firm? (Check all that apply.)

the distribution of resources the orchestration of individual and team work efforts

Which of the following are factors that influenced the shift from closed innovation to open innovation? (Check all that apply.) Multiple select question. the increasing supply and mobility of skilled workers the reduced availability of global external suppliers the lack of innovative ideas within companies the growth of venture capital

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

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

What is the goal of organizational design?

to enable managers to translate their chosen strategy into a realized one

What must a firm that pursues a cost-leadership strategy do in order to nurture and constantly upgrade core competencies in manufacturing and logistics?

use a functional structure that has mechanistic organizational elements