MAN chp 11 quiz
__________ is the degree to which rules and procedures govern work.
Formalization
Which of the following does NOT cause a firm to move from a functional structure to a multidivisional structure?
Need for knowledge sharing among specialists
McDonald's operates through a franchising system wherein the head office uses strategic and financial controls to ensure that the franchises are creating the greatest possible value. This is an example of a(n):
strategic network.
A firm's __________ specifies the work to be done and how to do it given the firm's strategy or strategies.
structure
The benefits of a simple structure include all of the following EXCEPT:
the ability of specialists to develop deep expertise.
The need for the organization to combine local responsiveness with the global strategy's efficiency is most critical in a __________ strategy.
transnational
Which of the following statements about organizational structures for implementing business-level strategies is true?
A differentiation strategy requires a functional structure with limited formalization, broad job descriptions, and an emphasis on the product R&D and marketing functions.
Which of the following is NOT a preliminary task of the strategic center firm in a strategic network?
Allocating internal capital
Amos Ball Printing Company was established in 1866. Currently, Amos Ball V is the CEO and chairman of the board. The company has traditionally used a functional structure. Five years ago, the company branched into online publishing and small-batch printing in addition to its regular large-batch operations. Both new businesses are significantly different in technology and marketing from each other and from Ball's traditional business. Despite the hiring of experienced professionals in these new endeavors, performance continues to be poor and is affecting Ball's overall performance. Which of the following statements is true?
Amos should consider adopting the multidivisional structure.
__________ is the degree to which decision-making authority is retained at higher managerial levels.
Centralization
Ortiz is a manager of BRS Corp. Ortiz's division did not meet financial targets this year. Ramirez, manager of another division, has indicated that Ortiz's division incurred significant costs which resulted in Ramirez's division setting record profits for the year. As a result, performance for BRS as a whole exceeded projections. Which of the following pairings of organizational structures for BRS and bonus for Ortiz is most plausible?
Cooperative structure; a bonus for increasing organizational performance
Which of the following statements is true? Organizations tend to change structure too frequently, which erodes their competitive advantage. Large organizations can retain a simple structure as long as they have a focus strategy. Flexibility in structure is more important than stability. Strategy has a more important influence on structure than structure has on strategy.
Strategy has a more important influence on structure than structure has on strategy.
Icarus Aviation, Athena Instrumentation, and Hercules Miniaturization are strategic business units of Olympia Industries. One can expect that Icarus, Athena, and Hercules:
are not necessarily related to one another in terms of products or markets.
Successfully implementing a cost leadership strategy requires:
centralization of authority.
One disadvantage of the functional structure is that:
communication and coordination are difficult among organizational functions.
In the __________ structure hierarchy, the headquarters relies on strategic controls to set rate-of-return targets and financial controls to monitor divisional performance relative to those targets.
competitive
The CEO of Transector, Inc., set a 6.5 percent rate-of-return target for all divisions for the past year. Now, at the end of the year, three of Transector's seven divisions have not met this rate-of-return goal. The division managers of these three underperforming divisions have all secretly contacted executive-placement firms to investigate openings at other firms, because they know their future at Transector is in jeopardy as financial performance is all important at Transector. Transector probably uses the __________ structure.
competitive form of the multidivisional
Firms such as Textron Inc. that frequently acquire and divest other firms are MOST likely to use the __________ structure.
competitive multidivisional
The __________ structure is best for implementing the related constrained diversification strategy.
cooperative form of the multidivisional
The most centralized and most costly form of the multidivisional structure is the:
cooperative.
Jumbo Industrial Supply has grown from a one-location firm with a restricted product line to a multi-state organization with numerous product lines and a large sales staff. Sales have doubled every year for the last three years. It currently has a simple structure with Jared Smith, the owner-manager, making all major decisions. Jumbo is probably now experiencing or will soon experience:
coordination and control problems.
Walmart's effective strategy/structure configuration is:
cost leadership/functional.
Successful implementation of the differentiation strategy requires a structure that:
decentralizes decision making.
In Japan, the center firm in a strategic network of vertical relationships might be expected to undertake all of the following EXCEPT:
decreasing communications between network members to reduce communication costs.
The BEST multidivisional structure to use:
depends on the degree of diversification.
The integrated cost leadership/differentiation strategy is difficult to implement mostly because:
different primary and support activities are emphasized when using cost leadership and differentiation strategies.
A firm pursuing a related constrained diversification strategy would typically need all of the following EXCEPT:
division managers' rewards based on division financial performance.
Strategic controls allow corporate-level managers to:
examine the fit between what the firm might do and what it can do.
Implementing the multidomestic strategy requires decentralization to:
facilitate the tailoring of products to the demand in local markets.
__________ controls are objective criteria that allow corporate managers to evaluate the firms performance returns earned by individual business units and against previously established quantitative standards.
financial
Selecting the organizational structure and controls that effectively implement the chosen strategy is a challenge for managers because:
firms must be flexible while retaining a degree of stability.
Organizational structure specifies the firm's:
formal reporting relationships, procedures, controls, and authority and decision-making processes.
Leslie is a newly graduated certified public accountant with a specialty in corporate tax. She wishes to join an organization (NOT an accounting firm) that will allow her to concentrate on corporate tax and become deeply proficient in this area. Leslie should look for a position in a firm with a __________ structure.
functional
The three structural characteristics that differ among organizational structures include all of the following EXCEPT:
intermediation.
One of the primary disadvantages of the global strategy and worldwide product divisional structure is that:
it is difficult to respond effectively to local market needs and preferences.
Airlines have forged a number of complementary strategic alliances, in part because many airlines are not profitable. Some airlines participate in several alliances simultaneously. This tends to:
make the partners' true loyalties and intentions unclear.
The __________ structure is an organizational structure that combines both functional specialization and business product or project specialization.
matrix
Some experts consider the __________ structure to be one of the twentieth century's most significant organizational innovations because of its value to diversified firms.
multidivisional
Galatea Foods was founded in Greece by Galatea Chronos in 1978, and the company spread rapidly through Western Europe. Ms. Chronos retains the office of CEO. The Spanish division is headed by her oldest son. The North European division is headed by her only daughter, and the French-Italian division is headed by Ms. Chronos' brother. This company probably uses the __________ strategy.
multidomestic
A worldwide geographic area structure is an organizational form in which:
national interests dominate and management adapts to local or cultural differences.
The primary disadvantage of the multidomestic strategy and worldwide geographic area structure relates to limited:
potential for global efficiency.
Firms seeking to differentiate particularly need support from the __________ and __________ functions.
product R&D; marketing
Functional structures work best for firms for all of the following EXCEPT:
related constrained diversification strategy.
Andermeyer Jewelers, which specializes in high-end jewelry, has been in existence since the 1870s and has served generations of wealthy families. Owned and managed by the Andermeyer family since its founding, it has never had more than 20 designers and jewelers in its shop. Andermeyer Jewelers should use the __________ structure.
simple
IKEA is a global furniture retailer with more than 300 outlets in 39 countries and regions. IKEA focuses on lowering its costs as well as understanding customer needs, especially younger ones. IKEA's international strategy is best described as __________, and the appropriate organizational structure to implement this strategy is the __________ structure.
transnational; combination
Typically, a successful firm pursuing a differentiation strategy will:
use cross-functional development teams.
When a corporation pursues a related constrained diversification strategy, financial controls may not add value to strategy implementation efforts because it is difficult to:
use them without reducing cooperation among divisional managers.
