Deck 8: Strategy and Organization

Question 1

In dynamic environments, competitive advantages arise from

A) dominant scale
B) adaptive organizational capabilities
C) attractive niche markets
D) exploiting resources

Answer 1

B

Question 2

A cultural belief in employee empowerment suggests an organizational capability of

A) cross-cultural effectiveness
B) cost efficiency
C) customer responsiveness
D) product market focus

Answer 2

C

Question 3

Organizational capabilities are related to

A) order and control
B) culture and behaviour
C) mission and vision
D) finance and marketing

Answer 3

B

Question 4

Organizational capabilities can be influenced by

A) quality and delivery promises made to customers
B) resource gaps
C) discretionary stakeholders
D) management processes

Question 5

One of the drawbacks of a product organization is

A) the performance of each product line is hard to measure
B) consumers have a single point of contact
C) high need for cross-functional coordination
D) management duplication

Question 6

The interactions of managers with their subordinates is a(n)

A) capability
B) observable behaviour
C) constraint
D) unique resource

Question 7

One action that can be taken to address a capability gap is to change the

A) management focus
B) performance standards
C) organization structure
D) mission statement

Question 8

Speed and innovation are examples of

A) employee competencies
B) research and development tactics
C) organizational capabilities
D) managerial preferences

Question 9

Organizations that are driven by external challenges are

A) using internal standards
B) market focused
C) resource-based
D) focused on issues of culture

Question 10

Small organizations are typically organized by

A) product
B) business unit
C) geographic region
D) function

Question 11

Traditional approaches to strategy assume

A) organizational constraints
B) a stable workforce
C) competitive neutrality
D) a stable environment

Question 12

Organizations that are indifferent to market-based information are

A) internally focused
B) using competitive standards
C) commodity-based
D) driven by external challenges

Question 13

Within an organizational hierarchy, information and influence generally move

A) from manager to subordinate
B) vertically
C) subordinate to subordinate
D) horizontally

Question 14

Reporting relationships are an element of an organization's

A) mission
B) external environment
C) procedures
D) structure

Question 15

To develop new organizational capabilities

A) culture and behaviour will need to change
B) new management will have to be hired
C) employees will require additional compensation
D) the business environment must remain stable

Question 16

If an organization is structured by product line, communication will be difficult across

A) geographic regions
B) functional units
C) organizational boundaries
D) product groups

Question 17

Organizational capabilities refers to what an organization's employees are

A) compensated for
B) collectively able to do
C) trained for
D) held responsible for

Question 18

Global organizations using a worldwide functional structure can demonstrate

A) a lack of sensitivity to local markets
B) quick decision making
C) good coordination between functional areas
D) rapid deployment of new programs

Question 19

The example of business units, functional units, and geographic regions working together cooperatively illustrates

A) boundary management
B) innovation
C) cross-unit synergies
D) productivity

Question 20

Companies organized by function are good at

A) coordinating activities
B) focusing on product market issues
C) cross-cultural management
D) scenario planning

Question 21

The capacity to support strategies based on cost efficiency is an example of a productivity capability.

Question 22

Traditional approaches to strategy assume competitive advantage can be derived from exploiting organizational capabilities and resources.

Question 23

The choices managers make regarding organizational structure illustrate how culture operates as an inward force.

Question 24

The ability to analyze performance by profit centers is one of the strengths of a product organizational structure.

Question 25

One of the strengths of geographically organized firms is

A) global efficiency
B) limited duplication of effort
C) local responsiveness
D) global standards

Question 26

Managers in a matrix organization are encouraged to focus on worldwide product strategies only.

Question 27

One of the functions of an organizational chart is to align the tasks of the organization with employee strengths.

Question 28

A geographical organizational structure is useful for firms planning to internationalize.

Question 29

Culture is not a factor when attempting to develop an organizational capability in innovation.

Question 30

To increase organizational flexibility, firms in knowledge intensive industries have chosen to structure by

A) core activity
B) Matrix
C) service standards
D) Cell

Question 31

If a firm operates in international markets with localized tastes and preferences, the firm ideally will organize its structure as a

A) functional organization
B) product organization
C) geographic organization
D) matrix organization

Question 32

Organizational capabilities that lend themselves to rapid adaptation have the potential to create sustainable competitive advantages.

Question 33

A knowledge-based firm that is organized by units that contain a project manager and a few employees as well as external contractors is said to be structured as a

A) project team
B) matrix
C) special business unit
D) cell

Question 34

One of the actions that may be required to close an organizational gap is a change in leadership.

Question 35

A change in organizational structure that results in a negative outcome is an example of

A) a frozen preference
B) group think
C) recycling
D) an unintended consequence

Question 36

The organizational capability to be a low cost producer will require which of the following cultural beliefs?

A) we would rather be right than quick
B) we believe in delegation of responsibility and authority
C) everything comes down to money
D) new product ideas are precious

Question 37

Matrix organizations are characterized by

A) simplicity
B) centralized control
C) clear power balances
D) ambiguity

Question 38

If an organization wants to improve its customer responsiveness, it should

A) convert sequential processes to parallel processes
B) create cross-unit information flows
C) establish work routines that cross functional boundaries
D) involve corporate-level executives in decision making

Question 39

A supporting cultural belief that new product ideas are precious will typically be supported by the following behavior(s):

A) thorough data collection; thorough analysis
B) decision making close to the consumer
C) focusing on activities that add financial value
D) financial and moral support for fledgling projects

Question 40

If an organization wants to create synergy between businesses, it should

A) make it hard to kill new product ideas early in their life
B) establish work routines that cut across functional boundaries
C) create cross unit information and joint execution of projects
D) mover customer related decision making lower in the organization

Question 41

Learning from competitors is an example of how an alliance could enhance a firm's organizational capabilities.

Question 42

Changing the reward processes to improve productivity can sometimes result in unintended consequences.

Question 43

Performance assessment has the potential to shape organizational capabilities.

Question 44

Frequent changes in organizational structure or processes lead to increased employee commitment to the strategic initiatives of the firm.

Question 45

Changing the reward processes to alter behaviours may require a change in leadership behaviour.

Question 46

How the manager behaves is not considered an instrumental factor in bringing about a change in organizational capability.

Question 47

One of the techniques for increasing the flow of new products to markets is to convert sequential processes into parallel processes.

Question 48

Operating processes are those associated with how decisions are made within an organization.

Question 49

Changing the organizational structure to alter behaviours is probably not the most effective solution.

Question 50

One of the organizational design tests advanced by Goold and Campbell is: Does the design meet the requirement for simplicity?

Question 51

Job rotation between organizational units is a technique for increasing cross-unit cooperation.

Question 52

Cultural differences between organizations can limit the benefits of an alliance.

Question 53

Today's leaders are often evaluated on the basis of the results they achieve as well as on how those results are achieved.

Question 54

In organizations with a strong culture, changing the structure should be sufficient to bring about change.

Question 55

The organizational boundaries of a cellular organization are relatively impervious to outside influences.