Deck 9: Value-Adding Support Strategies

Question 1

Executive committees are created to provide members of the board of directors an active role in strategy formulation and implementation.

Answer 1

False

Question 2

Even in situations where there is a good match between the characteristics of the current organizational structure and the requirements of the strategy, the present basic structure should not be maintained.

Answer 2

False

Question 3

The matrix structure is most appropriate for organizations exhibiting which of the following characteristics?

A)Organizations with numerous products or projects that draw on common functional expertise.
B)Organizations that have grown through diversification, vertical integration, and aggressive market or product development.
C)Organizations with single product/service and narrowly focused organizations.
D)Multinational organizations and non- governmental agencies (NGAs).

Answer 3

A

Question 4

The organizational structure decision is one of prioritizing which characteristics?

A)Competitive advantage and market reach.
B)Internal strengths and external opportunities.
C)Standardization and flexibility.
D)Functional structure and organic structure.

Question 5

Which of the following is NOT one of the fundamental organizational hierarchical designs?

A)Functional structure.
B)Divisional structure.
C)Matrix structure.
D)Circular structure.

Question 6

Discuss the simplicity principle as it applies to matching organizational structure and strategy.

Question 7

Venture teams are created outside the normal organizational structure; they are not bound by the normal "rules" of the organization.

Question 8

Organizational culture does NOT include the following component.

A)Shared assumptions.
B)Behavioral norms.
C)Competitive posture.
D)Shared values.

Question 9

Strategic facilities is the broad term used to delineate the physical environment of the health care organization. It is the "shell" in which health care is delivered.

Question 10

The process of developing value- adding support strategies involves which of these comparisons?

A)Compare strategy requirements with internal analysis.
B)Comparison of directional strategies with competitive strategies.
C)Comparison of organizational culture with organizational structure.
D)Comparison of adaptive strategies with market entry strategies.

Question 11

Sophisticated equipment, especially information technology, is the focus of managing strategic technologies.

Question 12

What are the value- adding strategies?

A)Organizational structure, organizational culture, and strategic resources.
B)Pre-service, point-of-service, and after-service.
C)Cost leadership, differentiation, and focus.
D)Merger, acquisition, and internal investment.

Question 13

Which of the following is TRUE of changing strategic resources?

A)Change in strategic resources is a rare requirement of developing value-adding support strategies.
B)Change in strategic resources is generally accomplished through acquisitions and mergers.
C)Change in strategic resources is usually restricted to changes in information systems.
D)Changing the type or nature of the financial and human resources, information systems, or facilities and equipment can be a difficult and long-term project.

Question 14

Strategic resources do NOT include which of the following?

A)Financial resources.
B) Natural resources.
C)Human resources.
D)Technological resources.

Question 15

Which of the following is NOT an appropriate question for evaluating support strategies?

A)Is the organization's culture appropriate for the overall strategy?
B)Is the competitor's organizational structure more appropriate for the market environment?
C)Is the organization's culture appropriate for the overall strategy?
D)Are the facilities and equipment up-to-date and appropriate to carry out the overall strategy?

Question 16

Strategic managers must decide if the organization's culture will contribute to the accomplishment of the strategy or must change over time.

Question 17

Explain how organizational culture can impact an organization's financial performance.

Question 18

In terms of matching organizational culture and strategy, an organization with culture viewed as a strength and an internal environmental analysis of culture result of HNEY (high value, not rare, easy to develop, and sustainable) should do which of the following?

A)Change the organizational culture.
B)Maintain the organizational culture.
C)Either change or maintain the organizational culture is the correct action.
D)Re-evaluate the internal environmental analysis of culture.

Question 19

Information systems (ISs) are an essential competitive resource for health care organizations and are critical in supporting strategic decision making, administrative operations, and patient care in an increasingly information- intensive industry.

Question 20

Discuss the financial resource implications of expansion, contraction, and maintenance of scope adaptive strategies.

Question 21

Matrix structure is an organizational hierarchical design that forms the basic building blocks for organizations.

Question 22

A problem with divisional structures is that they may create competition for resources among the divisions.

Question 23

Only a few organizational strategies have financial implications and most likely will require an assessment of needed capital and a method to access capital.

Question 24

Organizational culture has limited effects on recruiting, efficiency, and innovation.

Question 25

In general, major culture change in an organization can be accomplished in a matter of months because people in the organization will naturally pursue cultural changes.

Question 26

Shared values represent the understanding of "the way we do things" and may or may not reflect the organization's "stated" values - it is the actual members' values that create the organization's culture.

Question 27

Project and product teams are created to undertake well-focused projects (typically short term) or to develop new products.

Question 28

Most health care organizations are rarely organized using just a single structural building block design.

Question 29

Support strategies concern areas such as the behavioral norms, organization structure and flexibility, human resources, finance, information systems, and technology, and will play a major role in the implementation of the organization's overall strategy.

Question 30

Functional structures organize activities around the mission-critical activities or processes of the organization and are the most prevalent structures for single product/service and narrowly focused organizations.

Question 31

A matrix structure is a whimsical organizational structure that permits strategic managers to demonstrate creative alignments of authority and responsibility in an organization.

Question 32

A matrix structure may be most appropriate when organizations have numerous products or projects that draw on common functional expertise.

Question 33

Normative behaviors are NOT part of organizational culture.

Question 34

"Walking the talk" is being a model for the kinds of behaviors and practices they want infused into the organization through their own actions.

Question 35

One activity that a strategic manager who wants to create culture change should focus on is to live by the organization's values from the very beginning.

Question 36

An effective strategic manager will always view the organizational structure as an impediment to strategy implementation.

Question 37

Human resources requirements of the selected strategies will vary considerably depending on whether the organization is expanding, contracting, or maintaining scope.

Question 38

Divisional structures are common in organizations that have grown through diversification, vertical integration, and aggressive market or product development.