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Exam 9: Creating Effective Organizational Designs

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Question 41

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Which of the following is not a strategic risk of outsourcing?

A) Loss of critical skills
B) Loss of cross-functional skills
C) Loss of control over a supplier
D) Loss of non-vital functions

E) A) and C)
F) A) and B)

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Question 42

Multiple Choice

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If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is

A) worldwide functional.
B) worldwide product division.
C) worldwide matrix.
D) international division.

E) C) and D)
F) None of the above

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Question 43

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The strategic business unit (SBU) structure is also referred to as the conglomerate structure.

One of the risks of outsourcing is a loss of cross-functional skills.

A major disadvantage of adopting a divisional structure is the tendency for managers to focus on short-term objectives.

When an organization is said to have 'alignment' this means that they have a clear send of how value is being created in the short term and how activities are integrated and properly coordinated.

An advantage of the barrier-free form of organizing is that internal cooperation and shared objectives are not required for it to work.

There is no link between a firm's strategy and its structure.

Which of the following is an advantage of a divisional type of organizational structure?

Discuss how changes in today's workforce and the business environment have led to the increasing use of the boundaryless organizational design.

A matrix organization is organized strictly along product lines.

The virtual type of organization is a network of independent companies linked together to share skills, costs, and access to one another's markets.