MGT499 Quiz 11
Which of the following is a benefit of a high degree of formalization in an organization?
consistent results
Inkwell is a pen manufacturing company based in Massachusetts. Inkwell's main area of operation is Massachusetts, and it has a stronghold over the market. It employs a robust production system, which helps it sell pens at exceptionally low prices. In this scenario, which of the following strategies is Inkwell most likely using?
cost-leadership strategy
Strategic business units (SBUs) in a company that uses an unrelated-diversification strategy are in direct competition with each other because
each SBU is evaluated as a standalone, profit-and-loss center.
A tightly coupled system of strategy and structure is prone to break apart when
external and internal shifts put pressure on the system.
Over time, 3M has relied on the results-only-work-environment (ROWE) framework and has morphed into a highly science-driven innovation company. At 3M, employees are encouraged to spend 15 percent of their time on projects of their own choosing. If any of these projects look promising, 3M provides financing through an internal venture-capital fund and other resources to further develop their commercial potential. This real-world scenario best illustrates
output controls.
Which of the following factors has led to a shift toward open innovation?
the exponential growth of venture capital
Which of the following exemplifies the organic nature of W. L. Gore's organizational structure?
It has no formal chain of command or standard operating procedures.
Why was Yahoo's CEO, Jerry Yang, forced out in 2008?
He failed to implement necessary strategic changes after Yahoo lost its competitive advantage.
In terms of the key features of organic organizations, which of the following firms is most likely to have an organic structure?
Icebox, a software development firm, which focuses on building innovative products
_____ seek to define and direct employee behavior through a set of codified rules and standard procedures.
Input controls
Which of the following best indicates that W. L. Gore & Associates has an informal and decentralized organizational structure?
It prefers face-to-face communication over e-mail and does not have an organizational chart.
Which of the following is a shortcoming of the matrix structure?
Its implementation is difficult due to significant organizational complexity and increased administrative costs.
Why is strategy implementation referred to as the "graveyard of strategy"?
Managers often fail to implement a chosen strategy successfully despite extensive analysis of business environments.
Why do firms' strategies often follow their structures instead of the other way around?
Managers tend to consider strategies that do not change existing organizational structures.
Sam Walton was responsible for Walmart's cost-leadership strategy that continues to guide the company to this day. His influence on the organization's culture is best described as
founder imprinting.
One disadvantage of a functional structure is that it
frequently lacks effective communication channels across departments.
In order to implement a cost-leadership strategy effectively, a _________ structure is preferred in a firm.
functional and mechanistic
Which of the following is a characteristic of a mechanistic organization?
high degree of specialization
Which of the following is instrumental in creating a tightly coupled system of strategy and structure in an organization?
managers that achieve a mastery of the firm's current environment
Since W. L. Gore's core competency is innovation, a(n) ________ would most likely be detrimental to its efforts.
mechanistic structure
