Question 1

A product structure requires that support activities from a company's value chain be decentralized so that independent specialists in support activities exist within each product group.

Accepted Answer

False

Question 2

Organizational structure contributes to the strategy formulation by providing the framework of tasks and roles that reduces transaction difficulties and allows employees to think and behave in ways that allow a company to achieve superior performance.

Accepted Answer

Organizational structure provides the framework for defining roles, responsibilities, and relationships within a company, which helps to minimize transaction difficulties and enables employees to work together effectively towards achieving strategic goals. This is why organizational structure is an important factor in strategy formulation.

Question 3

Effective organizational design can allow a company to obtain a competitive advantage but it has no impact on profitability.

Accepted Answer

Effective organizational design can lead to improved efficiency, innovation, and customer satisfaction, which can ultimately lead to increased profitability and a competitive advantage in the marketplace.

Question 4

Control systems can help managers evaluate how efficiently they are producing goods and services.

Accepted Answer

Control systems provide managers with real-time data and feedback on production processes, allowing them to analyze and improve efficiency.

Question 5

For each function,a cost leader adopts output controls that allow it to monitor and evaluate functional performance closely.

Accepted Answer

Cost leaders often adopt output controls that enable them to closely monitor and evaluate functional performance to identify areas of inefficiency and cost savings opportunities. This allows them to continuously improve their processes and maintain a competitive advantage in terms of cost.

Question 6

Effective strategy implementation is very important for cost leaders,but it is of less importance to differentiators.

Accepted Answer

Effective strategy implementation is equally important for both cost leaders and differentiators because both rely on their respective strategies to achieve their goals and stay ahead of the competition.

Question 7

The purpose of organizational structure is to provide managers with specific feedback on how well an organization and its members are performing and building competitive advantage.

Accepted Answer

The answer of The purpose of organizational structure is to...

Question 8

Controls at each level should provide the basis on which managers at the levels below design their control systems.

Accepted Answer

Controls at higher levels set the overall direction and goals for the organization, while controls at lower levels are more specific and operational in nature. Therefore, managers at lower levels should base their control systems on the controls established at higher levels to ensure alignment and consistency.

Question 9

An important purpose of control systems is to motivate employees to work toward increasing efficiency,quality,innovation,and responsiveness to customers.

Accepted Answer

Control systems provide a framework for setting goals and measuring performance, which can incentivize employees to work more efficiently and effectively towards improving the organization's overall performance. This can ultimately lead to improvements in quality, innovation, and responsiveness to customers.

Question 10

Flat structures can lead to information distortion when data are being sent either up or down the hierarchy.

Accepted Answer

The answer of Flat structures can lead to information distortion...

Question 11

Building capabilities in organizational design that allow a company to develop a competitive advantage starts at the functional level.

Accepted Answer

Building capabilities in organizational design requires strategic alignment at all levels, including functional level. This enables organizations to create and sustain a competitive advantage by optimizing performance and resource utilization.

Question 12

The need for integrating mechanisms is greater when a company's structure is more complex.

Accepted Answer

The complexity of a company's structure, such as when it has multiple departments or international locations, can create more potential for gaps and miscommunications. Integrating mechanisms, such as cross-functional teams or regular meetings between departments, can help ensure that all parts of the company are working together cohesively.

Question 13

The reward system affects motivation,however,the type of organizational culture that develops in a company is primarily affected by the founder's values and not the reward system.

Accepted Answer

The answer of The reward system affects motivation,however,the type of...

Question 14

Research finds that centralization of authority is never advantageous,not even in time of crisis.

Accepted Answer

The answer of Research finds that centralization of authority is...

Question 15

Span of control refers to the number of subordinates who report directly to one supervisor.

Accepted Answer

Span of control is defined as the number of subordinates that report directly to one supervisor.

Question 16

Control through culture is so powerful because once values have been internalized,individuals follow them without thinking about them.

Accepted Answer

Control through culture is powerful because it operates at a subconscious level. When individuals internalize values and cultural norms, these become ingrained in their thinking and behavior, and they follow them without conscious effort or thought. This makes culture a highly effective means of shaping behavior and exercising control over groups of people.

Question 17

When companies become too tall and the chain of command too long,strategic managers tend to lose control over the hierarchy and,subsequently,their strategies.

Accepted Answer

When a company becomes too tall, the chain of command becomes too long, making it difficult for strategic managers to maintain control over the hierarchy and implement their strategies effectively. This can result in a loss of control and direction for the company as a whole.

Question 18

Information technology (IT)is playing an increasing role in strategy formulation.However,strategy implementation is not affected by IT in general.

Accepted Answer

Information technology can have a significant impact on strategy implementation, as it can facilitate communication and collaboration, automate processes, provide real-time data for decision-making, and streamline operations. However, the success of IT in strategy implementation depends on various factors such as the quality of the technology, the skills and knowledge of the workforce, and the alignment of IT with business objectives.

Question 19

In 1995,Dell Computer changed its organization structure from a market structure to a functional structure and created separate divisions.This change would better serve its different groups of customers.

Accepted Answer

In 1995, Dell Computer changed its organizational structure from a functional structure to a market structure, creating separate divisions to better serve its different groups of customers.

Question 20

A division is a way of grouping functions to allow an organization to better produce and dispose of its goods and services.

Accepted Answer

This is correct. Divisions are a way for organizations to group functions and can help with coordination, efficiency, and decision-making related to production and disposal of goods and services.

Quiz 12: Implementing Strategy in Companies That Compete in a Single Industry