Strategic Management Chapter 11

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

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

Samira works for a company with a strict top-down structure. Her daily tasks must conform carefully to written guidelines and rules, and she has very specific job responsibilities. Samira works for a(n) ______.

mechanistic organization

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

multidivisional

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

output controls

If a company fails to change its culture as the firm and environment change, the company's culture can turn into a core ______.

rigidity

Simple structures tend to be used by which group?

small companies with low organizational complexity

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

- decentralized focus - responsiveness

Which are examples of strategic control-and-reward systems? (Check all that apply.)

- input controls - output controls - organizational culture

Which of the following are characteristics of simple organizational structures? (Check all that apply.)

- low formalization - flat hierarchies - single leader makes all important decisions

Which of the following are effects that a strong organizational culture can have on employee behavior?

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

What are two internal governance mechanisms put in place to align principal and agent incentives? (Check all that apply.)

- strategic control - reward systems

Which of the following are factors that influenced the shift from closed innovation to open innovation? (Check all that apply.)

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

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

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

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

Strategy implementation

Which of the following statements is true regarding the relationship between strategy formulation and strategy implementation?

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

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

a firm's organizational structure

Which of the following structures is a combination of the multidivisional structure and the functional structure?

a matrix structure

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.

True or false: Organizational culture should never change.

False

Which of the following statements about open innovation is true?

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?

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

How do founders leave their imprint on their organizations?

by taking their vision and making it into reality

Mechanistic organizations tend to have ______.

codified operating procedures

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 encompasses a firm's member's shared values and norms?

organizational culture

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

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

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

stages in the value chain

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

What is the goal of organizational design?

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

What is important is defined by _____; which attitudes and behavior are deemed appropriate are defined by _____.

values; norms