Chapter 11 Strategic Management
because executives make decisions about structure and strategy,
a change in leadership often results in a change in culture
ambidextarity
a firm's ability to address trade-offs not only at one point but also over time. it encourages managers to balance exploitation with exploration
the organizational structure at Gore, in which everyone is encouraged to speak to anyone they wish to within the organization, is called ____ organization form
boundaryless or lattice
reasons why it is difficult to imitate the cultures of successful firms
casual ambiguity social complexity
the degree to which decision making is concentrated in the top tiers of a firm is referred to as ______
centralization
the four essential aspects of an organizational structure
centralization hierarchy specialization formalization
when supporting a related-diversification strategy with the m-form organizational structure, managers typically
concentrate decision making at the top of the organization
if a company fails to change its culture as the firm and environment change, the company's culture can turn into a core
rigidity
what is the goal of an internal capital market?
to be more efficient at allocating capital through its budgeting process than what could be achieved in external capital markets
a goal of a differentiation strategy
to control costs while offering products or services at a higher perceived value, thereby creating a competitive advantage
firms that pursue a ____ strategy tend to use a global matrix structure
transnational
what is important is defined by ______; which attitudes and behavior are deemed appropriate are defined by _____
values; norms
examples of artifacts of an organization's culture
what events are celebrated design and layout of physical space symbols
true of cross-functional teams
work on a specific product or project meant to facilitate collaboration between departments
determines the allocations of resources and the organization and operations of works
a firm's organizational struct
Characteristics of simple organizational structures
low formalization decentralized decision making flat hierarchies
which of the following types of control defines expected results in order to guide employee behavior?
output controls
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
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 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 are true of the network structure
enable firms to access communities of practice supported by policies and procedures that are uniform company-wide
which of the following terms describes the usage of current knowledge to enhance firm performance in the short term?
exploitation
terms describing searching for new knowledge that may enhance a firm's future performance
exploration
motivation that is driven by external factors, such as rewards or punishments, is called ____ motivation
extrinsic
the organizational structure element that deals with the degree to which employees are guided by specific, codified rules and processes is know as _________
formalization
firms that follow a single-business or dominant-business strategy at the corporate level generally employ a _____ structure
functional
international global strategy's structure
functional
when a firm covers a limited geographic area and is narrowly focused in terms of offerings, a ____ structure is recommended
functional
transnational global strategy's structure
global matrix -balance of centralized and decentralized -additional layer of hierarchy to coordinate with
frequently associated with organic organizations
greater employee satisfaction swifter decision making greater employee creativity
a situation in which individuals follow a leader without challenging or critically evaluating the leader's ideas
groupthink
an example of how values and norms provide control
helping employees address unpredictable problems
mechanistic organizations
high degree of specialization and formalization tall hierarchy centralized decision making
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
mcdonald's reliance on detailed instructions to ensure consistent quality and service worldwide is an example of standard operating procedures as ____ control
input
why does strategy implementation frequently fall?
managers cannot make the needed adjustments because of how implementation affects the firm's resource allocation and power distribution
what do managers use the key levers of structure, culture, and control for?
motivate employees coordinate work
multidomestic global strategy's structure
multidivisional -geographic areas -decentralized decision making
global standardization strategy's structure
multidivisional -product divisions -centralized decision making
when a firm's organizational structure is tall, the span of control is
narrow
key elements of organizational culture
norms values artifacts
the structure, processes, and procedures of an organization are designed, put into place, reviewed, and reworked through a process known as
organizational design
employees learn about their firm's culture through
socialization
the element of organizational structure that separates the tasks of one job from the tasks of another is known as
specialization
the functional areas present in a functional structure frequently correspond to
stages in the value chain
what are two internal governance mechanisms put in place to align principal and agent incentives?
strategic control reward systems
if there are several levels of management between the lowest employee and the CEO, the firm has a _____ structure
tall
a matrix structure is intended to combine the benefits of which two structure types?
the functional structure the m-form
a disadvantage of a matrix organizational structure is that it
is hard to implement