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