Deck 8: Strategy Implementation Through Organizational Design and Control

Question 1

The individual who first identified the importance of the structure-strategy relationship was _____.

A) Tom Peters
B) Michael Porter
C) Michael Hammer
D) Alfred Chandler
E) Edwards Deming

Answer 1

Alfred Chandler

Question 2

Decentralized decision making is typically associated with _____.

A) efforts to lower costs
B) innovation and entrepreneurial behavior
C) diversified corporations whose various units are strongly related
D) small organizations active in a single business area
E) startup businesses

Answer 2

innovation and entrepreneurial behavior

Question 3

The dimensions of organizational structure to consider when determining the structure of an organization should include all of the following except _____.

A) degree of centralization
B) formalization
C) friendship among the leadership of the various units
D) professionalism
E) specialization

Answer 3

friendship among the leadership of the various units

Question 4

Typically startup businesses will pursue _____.

A) owner/manager structures
B) functional structures
C) product market structures
D) network structures
E) matrix structures

Question 5

The simplest management structure is _____.

A) owner/manager structures
B) functional structures
C) product market structures
D) network structures
E) matrix structures

Question 6

Functional structures are concerned with the _____.

A) owner/manager making all key decisions in the organization
B) corporate strategy of the organization
C) outputs, such as types of products or various markets in which those products are sold
D) organization built around specific customers or geographic regions
E) inputs or activities, such as marketing, human resources, and food and beverage that are required to produce services

Question 7

A functional structure is appropriate when _____.

A) customer needs are diverse or changing
B) the firm is seeking to provide numerous products and/or services to many different customer groups
C) a business is seeking to grow through product or service development
D) there is a limited service offered to a particular market segment and when the needs of the external stakeholders are relatively stable
E) the firm is in a knowledge intensive industry

Question 8

Matrix organizations are typically associated with _____.

A) organizations with few products or services
B) large organizations with several products or markets
C) medium sized firms with multiple products
D) larger organizations with highly differentiated markets
E) startup businesses

Question 9

Elizabeth Moore is the CEO of a medium-sized manufacturer of fashionable women's clothing. Elizabeth insists on making all decisions as to the styles that are manufactured, the type of material that will be used, the suppliers from whom the company will purchase yard goods, thread, and buttons, and the shippers that the company will use. Which of the following can be used in describing this company?

A) Matrix organization
B) Centralization
C) Formalization
D) Decentralization
E) Functional structure

Question 10

The problems with geographic and customer-based business-level structures include all of the following except _____.

A) losing economies of scale
B) having some redundant functions within the organization
C) dual authority causing frustration and confusion
D) losing in-depth specialization within functions
E) possibly leading to poor coordination and integration across product lines

Question 11

The problems with a matrix structure include all of the following except _____.

A) dual authority causing frustration and confusion
B) restricting the view of organizational goals
C) needing excellent interpersonal skills
D) requiring additional training that can be expensive
E) needing great effort to maintain the power balance

Question 12

A focus on economies of scale within departments is associated with _____.

A) owner/manager structures
B) functional structures
C) geographic or customer structures
D) lateral relationships
E) matrix structures

Question 13

The lateral organization consists of ______.

A) matrix structures
B) strategic business units (SBUs) that are easier to implement
C) across department communication mechanisms
D) formal levels of authority
E) specialization

Question 14

Accenture and other consulting firms were early to develop what type of lateral organizational arrangement?

A) Communities of practice
B) Matrix structures
C) Strategic business units (SBUs) that are easier to implement
D) Chief technology officers (CTOs)
E) Task forces

Question 15

One of the difficulties in implementing a multidivisional corporate level structure is that _____.

A) it is often difficult to decide which activities will be performed at the corporate level and which ones will be held within the division
B) dual authority can cause frustration and confusion
C) it restricts the view of organizational goals
D) great effort is needed to maintain the power balance
E) the additional training required can be expensive

Question 16

Strategic business unit structures occur when _____.

A) divisions are combined into groups based on common elements they each possess
B) each business exists as a separate unit reporting to top management
C) business is organized is along two dimensions, such as product and function
D) business is organized along three dimensions: nation or region, product, and function
E) functional inputs, such as marketing, engineering, and manufacturing, are focused upon

Question 17

A corporate matrix structure is particularly appropriate for _____.

A) a startup business
B) an unrelated diversified business
C) related diversified firms and global strategies
D) single product firms in a single region
E) firms with very-high-technology products

Question 18

A transnational organization, when compared to a matrix form of organization, _____.

A) is easier to implement
B) includes more dimensions that must be considered
C) does not focus on unrelated diversified firms
D) requires less coordination
E) does not focus on financial synergies

Question 19

The most unstructured of the various lateral coordinating mechanisms is_____.

A) direct contact
B) matrix
C) task forces
D) communities of practice
E) meetings

Question 20

Feedforward controls rely on _____.

A) information on outcomes of organization activities
B) financial information from the firm's past performance
C) accounting information that allows the calculation of firm ROI
D) information that allows the firm to anticipate changes in the external and internal environments of the firm
E) the aggregation of information from the firm's accounting and financial performance data that is then employed in the firm's budget

Question 21

A feedback-control system is established anytime _____.

A) accounting information is gathered and important calculations are conducted
B) financial information is gathered and important calculations are conducted
C) basic performance ratios of the firm are calculated and compared to similar firms
D) organizational structure is changed to enhance performance
E) goals or objectives are established and then measured against actual results

Question 22

One of the great challenges associated with comprehensive feedback control is _____.

A) setting goals high enough to motivate employees
B) determining how to measure results
C) ensuring that financial goals are clearly set
D) establishing goals that encompass all strategic stakeholders
E) ensuring the goals of one stakeholder group do not receive more weight than the strategic goal of another group

Question 23

In an organization such as Hilton _____.

A) a single control system should coordinate all activity
B) numerous control systems at multiple levels are necessary
C) control systems exits only for each division in a multi-division firms
D) control systems will be more extensive in owner/manager organizations
E) control systems should not be integrated so that employees do not have multiple authorities to respond to

Question 24

All of the following are phases in crisis management except _____.

A) signal detection
B) top management team meeting
C) preparation/prevention
D) containment/damage limitation
E) learning

Question 25

Crisis prone organizations have all of the following characteristics except _____.

A) they prepare for only a few of the possible types of crises, if they prepare at all
B) they focus on only one aspect of a crisis and only after it has already occurred
C) they consider only technical factors in the cause or prevention of crises
D) they consider human or social factors in the cause or prevention of crises
E) they consider few if any stakeholders in an explicit fashion

Question 26

A book publishing company that organizes activities around customer groups, such as colleges, secondary schools, and private schools, is an example of which type of structure?

A) Functional
B) Centralized
C) Strategic business unit (SBU)
D) Divisional
E) Matrix

Question 27

Discuss the different types of business level structures and the benefits of each.

Question 28

When would each type of organizational structure best be employed?

Question 29

Discuss the steps in developing a feedback control system.

Question 30

Discuss the roles of the various types of lateral relationships within an organization.

Question 31

Discuss behavior controls.