Deck 12: Enabling Success

Question 1

Which of the following is not an example of how organisational structure might influence strategy implementation?

A) Ownership of the strategy depends, partly, on whether those implementing it are empowered to make it work.
B) Through the effectiveness of its sourcing strategy
C) Through the fact that only some people will be involved in the implementation process
D) Communication systems may or may not be effective in informing people about the purpose of the strategy and the tasks needed to implement it.
E) Via the speed with which plans can be implemented

Answer 1

B

Question 2

Which of the following is a commonly used basis for organising a multidivisional structure?

A) Revenues generated
B) Geography
C) Technology
D) Personnel

Answer 2

B

Question 3

Instead of formal structures and physical proximity, virtual organisations are held together by (choose all that apply):

A) Contractual integration
B) Collaboration
C) Networking
D) Partnership

Answer 3

B, C, D

Question 4

Which of the following is most likely to be a danger for virtual organisations?

A) That costs will increase as the size of the organisation grows.
B) That the organisation will need to outsource some activities.
C) That knowledge creation will only occur in the specialist activities of the separate partners.
D) That the organisation itself gains too high a profile.

Question 5

Which two of the following are often dilemmas in organising for success?

A) Empowering or 'holding- the- ring'?
B) Vertical or horizontal integration?
C) Flexibility or accountability?
D) Centralising or devolving?

Question 6

A functional structure divides responsibilities according to:

A) Subsidiaries within the holding company
B) Primary roles such as marketing, finance and technology
C) Geographic regions
D) Product divisions and geographic regions simultaneously

Question 7

The following is not a type of organisational structure:

A) Multidivisional structure
B) Matrix structure
C) Functional structure
D) Holding company structure
E) Operational structure

Question 8

Which two statements accurately apply to a transnational structure?

A) It is particularly effective in exploiting knowledge across borders.
B) It is useful where there is a high need for local independence and a low level of global co- ordination.
C) It is useful where there is a low need for local independence and a low level of global co- ordination.
D) It seeks to combine the best of multidomestic and global strategies.

Question 9

Which of the following is not a type of control process?

A) Direct supervision
B) Cultural
C) Multidivisional
D) Performance targeting
E) Self- control and personal motivation

Question 10

Which of the following statements is true of a matrix organisation?

A) Matrix structures are usually used when tasks are standardised and specialisation of staff is required.
B) Unity of command is a fundamental design principle for matrix structures.
C) Cross- functional teams are formed and then re- formed according to the project needs of the organisation.
D) Matrix organisations are also known as multidivisional structures.

Question 11

Which of the following is a correct description of devolution?

A) The upwards delegation of decision making to the Board of Directors
B) The centralisation of decision- making at head office
C) The delegation of decision making from the centre to units and managers lower down in the hierarchy
D) Dismantling the central office and allowing subsidiaries to make their own decisions

Question 12

In which of the following organisations might you expect to find a task culture?

A) Her Majesty's Inspector of Taxes
B) The Labour Party
C) Arthur Andersen
D) Liverpool Football Club

Question 13

Which of the following could be classified as being based on network relations outside the organisation's boundaries? Choose all that apply.

A) Strategically controlled units
B) Alliances
C) Outsourcing
D) Virtual organisations

Question 14

What three strengths must an organisation have if it is to achieve a nodal position in a network?

A) A compelling vision
B) Unique resources or core competences
C) Superior organising powers
D) Networking skills

Question 15

What are the characteristics of a transnational organisational structure according to Bartlett and Ghoshal?

A) It combines global control with local control.
B) It has strong functional divisions.
C) Decisions are taken across borders (transnational decisions).
D) It combines a centralised approach with a functional structure.
E) It combines global coordination with local responsiveness.

Question 16

Which of the following is the correct explanation of a team- based structure?

A) It consists of many different teams, all being coached to compete against each other.
B) It consists of different regional offices which all form their own closely knit teams.
C) It combines both horizontal and vertical coordination via cross functional teams.
D) It consists of many different projects which are created and dissolved on an ad hoc basis.

Question 17

Which multinational structure would be most suitable where there is high need for global co- ordination and high need for local independence?

A) Local subsidiaries
B) Global product divisions
C) Transnational corporations
D) International divisions

Question 18

Which of the following areas is not a key focus of decisions about whether to standardise or adapt to local country conditions?

A) Marketing strategy
B) Decision making
C) Location of operations
D) Pay and conditions

Question 19

Which of the following departments would you not expect to find in a functional structure?

A) Finance department
B) Marketing department
C) Human resources department
D) International department

Question 20

In what three ways may organisations manage the dilemmas associated with organisational design?

A) By maintaining a high degree of central control and consistency throughout the organisation.
B) By combining different organisational principles at the same time.
C) By reorganising frequently so that no one side of the dilemma becomes too entrenched.
D) By subdividing the organisation so that each part can be organised optimally.

Question 21

Which two of the following factors must be balanced in a strategic alliance?

A) Identifying the most knowledgable people and asking them to decide policy
B) Ensuring that all allies understand what policy has been decided
C) Using the best sources of specialist knowledge
D) Integrating various sources of knowledge to produce best value for customers

Question 22

Which style is concerned with shaping the behaviour in business units and with shaping the context within which managers are operating?

A) External control
B) Strategic control
C) Financial control
D) Strategic planning

Question 23

Which of the following is not a basis for configuring a multidivisional organisation structure?

A) By geographical concentration
B) By product type
C) By task group
D) By specialism
E) By customer focus

Question 24

Organisational configuration consists of:

A) Structure, people and systems
B) People, systems and processes
C) Technology, processes and people
D) Structure, processes and relationships

Question 25

Which of the following is not a characteristic of a transnational structure?

A) Expertise in specific areas of knowledge is scattered widely throughout the organisation.
B) Each national unit operates independently but is a source of ideas and capabilities for the whole corporation.
C) The corporate centre manages the global network.
D) National units get scale economies through specialisation on behalf of the whole corporation.

Question 26

Which of the following is not an example of a configuration dilemma when organising for success?

A) Holistic solutions versus best practice
B) Hierarchies versus networks
C) Cost leadership versus differentiation
D) Centralising versus devolving
E) Vertical accountability versus horizontal integration

Question 27

What new way of working must be practising by a manager in WorKHard, a company that has begun to outsource its activities to Outwork?

A) To maintain performance through managing the supplier relationship
B) To manage the performance of the staff in Outwork
C) To maintain performance through managing the managers at Outwork
D) To manage the performance of the staff in Outwork using control systems within WorkHard

Question 28

Reinforcing cycles are created by the dynamic interaction between:

A) The environment, the configuration and the elements of strategy
B) The environment, the strategic capability and the culture
C) Managers, suppliers and competitors
D) The environment, the industry and the organisation

Question 29

Which of the following is a way that an organisation's structure might affect the strategy development process?

A) By offering promotion opportunities through a tall hierarchy
B) By involving multiple SBUs in the process to ensure buy- in
C) Through its effect on the culture of the organisation
D) Through its impact on the speed of decision making

Question 30

Which of the following is not a type of network?

A) Strategic alliance
B) Federations of experts
C) Teleworking
D) One- stop shops

Question 31

Which of the following is not an advantage of a multidivisional structure?

A) Fragmentation
B) Flexibility to add or divest divisions
C) Control by performance
D) Specialisation of competences
E) Ownership of strategy

Question 32

In which style is the relationship between the centre and the business units that of a parent who prescribes detailed roles?

A) Financial control
B) Strategic control
C) External control
D) Strategic planning

Question 33

Which structure combines the local responsiveness of the international subsidiary with the coordination advantages found in global product companies?

A) Multidivisional
B) Transnational
C) Matrix
D) Functional

Question 34

Which of the following are ways of categorising control processes?

A) Control over inputs or outputs, direct or indirect control
B) Hierarchical or decentralised control, control over inputs or outputs
C) Control over finance and control over strategy implementation
D) Direct and indirect control of key performance indicators

Question 35

Which multinational structure would be most suitable where there is low need for global co- ordination and low need for local independence?

A) Transnational corporations
B) International divisions
C) Local subsidiaries
D) Global product divisions

Question 36

A transnational strategy is one that tries to combine which two elements?

A) Low prices and low costs
B) Global coordination and local responsiveness
C) Standardised products and local job creation
D) Local responsiveness and home country personnel

Question 37

According to Bartlett and Ghoshal a transational is like a matrix but with which two specific features? Choose all that apply.

A) It responds specifically to the challenge of internationalisation.
B) The various elements operate in a highly independent manner.
C) Each employee is only responsible to a single line manager.
D) It tends to have more fixed responsibilities within its cross- cutting dimensions.

Question 38

Which of the following statements is most likely to be true of a decentralised organisation?

A) Ownership and commitment to a strategy is likely to be greater than in a centralised structure.
B) Managers are likely to be less motivated than in a centralised structure.
C) Poor decision making is likely to result with so many junior managers making them.
D) There will be less opportunity to make your mark and get on.

Question 39

Which of the following is not a characteristic of a virtual organisation?

A) Knowledge creation is spread throughout the network.
B) Buying in services or products that were previously produced in house.
C) Held together by partnership, collaboration and networking.
D) In- house resources and activities are minimised and nearly all resources and activities lie outside the organisation.

Question 40

The key design parameters for a machine bureaucracy configuration are:

A) Multidivisional structure, performance targets and devolved financial or strategic control
B) Functional structure, planning systems and centralised strategic planning
C) Projects, cultural processes and devolved networks and alliances
D) CEO control, direct supervision and centralised

Question 41

Which of the following is not an advantage of a centralised organisation structure?

A) Less duplication of effort
B) Better co- ordination of units
C) Less motivation for middle managers
D) More consistent decision making

Question 42

The speed with which strategies can be implemented will be greater the more hierarchical the structure of the organisation is.

Question 43

A virtual organisation is one which only operates over the Internet.

Question 44

The financial control style is an example of a functional organisational structure.

Question 45

Organisation design is all about utilising the latest fashions in office furniture to create an atmosphere conducive to success.

Question 46

Communities of practice are formal, bureaucratic ways of generating innovative solutions and sharing knowledge.

Question 47

According to Chandler strategy follows structure otherwise inefficiency results.

Question 48

Processes of self- control achieve the integration of knowledge and coordination of activities by the direct interaction of individuals without supervision.

Question 49

Which two of the following are often dilemmas in organising for success?

A) Flexibility or accountability?
B) Structure or hierarchy?
C) Hierarchies or networks?
D) Vertical accountability or horizontal integration?

Question 50

A transnational structure combines high local responsiveness with low global coordination.