Question 1

Firms that place too strong a priority on either adaptability or alignment can expect short term gains only.

Accepted Answer

A) True 
 B)False

Question 2

In the ambidextrous firm,if managers direct their efforts primarily at _______,they are likely to miss out on promising business opportunities.

Accepted Answer

A)   alignment
B)   adaptability
C)   structure
D)   opportunitiesE) A) and D)
F) B) and C)

Question 3

As firms expand into foreign markets,they generally follow a pattern of change in structure that parallels the changes in their strategies.Which one of the following is not a major contingency that influences the structure they choose?

Accepted Answer

A)   the type of strategy that is driving the company foreign operations
B)   the research and development budget commitment
C)   product diversity
D)   the extent of the company dependence on foreign salesE) None of the above
F) All of the above

Question 4

Complicated working relationships,intense power struggles,and excessive reliance on group processes are disadvantages of which type of organizational structure?

Accepted Answer

A)   divisional
B)   matrix
C)   holding company
D)   functionalE) C) and D)
F) A) and C)

Question 5

Which of the following is not a disadvantage of the barrier-free form of organization?

Accepted Answer

A)   Lack of strong leadership can lead to coordination problems.
B)   Democratic process can be time-consuming and difficult to manage.
C)   Additional integration issues result in a slower response to market changes.
D)   If trust among employees is not sufficiently high, organizational performance may suffer.E) A) and B)
F) B) and C)

Question 6

A simple organizational structure may lead to problems such as unclear boundaries of authority and few career advancement options.

Accepted Answer

A) True 
 B)False

Question 7

Which one of the following is not a primary types of organizational structures used to manage the international operations of a company?

Accepted Answer

A)   international division
B)   worldwide matrix
C)   geographic-area division
D)   home country product divisionE) A) and C)
F) A) and B)

Question 8

A new,simple-structure firm concentrates efforts only on increasing efficiency without regard to its actual products.

Accepted Answer

A) True 
 B)False

Question 9

As illustrated in the opening case for Chapter 10,Boeing lost a lot of control and therefore incurred high operating costs for its build out of the 787 Dreamliner,because it ____________ design and manufacturing.

Accepted Answer

A)   on-shored
B)   internalized
C)   outsourced
D)   internationalizedE) A) and D)
F) A) and C)

Question 10

A strategy of related diversification requires most firms to organize around geographical areas or product lines.This type of organizational growth leads to a(n) ______________ structure.

Accepted Answer

A)   divisional
B)   functional
C)   matrix
D)   internationalE) A) and B)
F) A) and C)

Question 11

Effective ambidextrous organizations have alignment,which means that

Accepted Answer

A)   employees are rewarded according to both profit and sales growth.
B)   managers are focused on growth opportunities.
C)   there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated.
D)   divisional-level goals are consistent with overall corporate goals.E) B) and C)
F) B) and D)

Question 12

Which of the following is not a boundaryless organizational design?

Accepted Answer

A)   virtual
B)   modular
C)   matrix
D)   barrier-freeE) A) and B)
F) None of the above

Question 13

Functional structures are usually found in organizations where there

Accepted Answer

A)   is high volume production.
B)   are unrelated product lines or service offerings.
C)   is very little vertical integration.
D)   there exists a strong need to decentralize decision making.E) None of the above
F) A) and D)

Question 14

A major disadvantage of the matrix structure is that it duplicates the use of specialized personnel,equipment,and facilities.

Accepted Answer

A) True 
 B)False

Question 15

Strategic business unit (SBU) and holding company structures result from extensive

Accepted Answer

A)   diversification.
B)   vertical integration.
C)   international expansion.
D)   organizational flattening.E) A) and B)
F) B) and C)

Question 16

A worldwide product division structure is used when global strategies require that each division be responsible for overall efficiency and performance.

Accepted Answer

A) True 
 B)False

Question 17

Nike is a company that makes use of the concept of product expatriates.Product expatriates are

Accepted Answer

A)   managers from the home country sent abroad to oversee the marketing of company products.
B)   managers from suppliers who come to work at the company headquarters.
C)   managers of the company sent abroad to work at the plants of its suppliers.
D)   local nationals hired by the company in the countries from which it sources products.E) All of the above
F) A) and B)

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Ambidextrous organizational designs are useful for firms that wish to create modest,incremental innovations at the same time as dramatic,breakthrough innovation.This is done by maintaining adaptability and alignment of values and coordination across organizational activities.

Accepted Answer

A) True 
 B)False

Question 20

When an organization with a simple structure increases its sales revenue and volume of outputs,it is most likely to develop a ______________ structure.

Accepted Answer

A)   divisional
B)   functional
C)   product-market
D)   geographicE) A) and B)
F) A) and C)

Exam 10: Creating Effective Organizational Designs

A new,simple-structure firm concentrates efforts only on increasing efficiency without regard to its actual products.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A worldwide product division structure is used when global strategies require that each division be responsible for overall efficiency and performance.

Correct AnswerverifiedShow Answer

When an organization with a simple structure increases its sales revenue and volume of outputs,it is most likely to develop a ______________ structure.

Correct AnswerverifiedShow Answer

Which one of the following is not a primary types of organizational structures used to manage the international operations of a company?

Correct AnswerverifiedShow Answer

Nike is a company that makes use of the concept of product expatriates.Product expatriates are

Correct AnswerverifiedShow Answer

A major disadvantage of the matrix structure is that it duplicates the use of specialized personnel,equipment,and facilities.

Correct AnswerverifiedShow Answer

A strategy of related diversification requires most firms to organize around geographical areas or product lines.This type of organizational growth leads to a(n) ______________ structure.

Correct AnswerverifiedShow Answer

Functional structures are usually found in organizations where there

Correct AnswerverifiedShow Answer

Which of the following is not a disadvantage of the barrier-free form of organization?

Correct AnswerverifiedShow Answer

Which of the following is not a boundaryless organizational design?

Correct AnswerverifiedShow Answer

In the ambidextrous firm,if managers direct their efforts primarily at _______,they are likely to miss out on promising business opportunities.

Correct AnswerverifiedShow Answer

Effective ambidextrous organizations have alignment,which means that

Correct AnswerverifiedShow Answer

As firms expand into foreign markets,they generally follow a pattern of change in structure that parallels the changes in their strategies.Which one of the following is not a major contingency that influences the structure they choose?

Correct AnswerverifiedShow Answer

A simple organizational structure may lead to problems such as unclear boundaries of authority and few career advancement options.

Correct AnswerverifiedShow Answer

Complicated working relationships,intense power struggles,and excessive reliance on group processes are disadvantages of which type of organizational structure?

Correct AnswerverifiedShow Answer

As illustrated in the opening case for Chapter 10,Boeing lost a lot of control and therefore incurred high operating costs for its build out of the 787 Dreamliner,because it ____________ design and manufacturing.

Correct AnswerverifiedShow Answer

Ambidextrous organizational designs are useful for firms that wish to create modest,incremental innovations at the same time as dramatic,breakthrough innovation.This is done by maintaining adaptability and alignment of values and coordination across organizational activities.

Correct AnswerverifiedShow Answer

Firms that place too strong a priority on either adaptability or alignment can expect short term gains only.

Correct AnswerverifiedShow Answer

Strategic business unit (SBU) and holding company structures result from extensive

Correct AnswerverifiedShow Answer

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