Deck 15: Environment,strategy,and Technology

Question 1

I'm on the board of directors of Vulcan Inc.,and you are on the board of directors of Zeus Ltd.What are the minimum conditions to claim that an interlock of directors exists here?

A)Vulcan and Zeus are in the same industry.
B)You are also on the Vulcan board,and I am also on the Zeus board.
C)You and I are very good friends.
D)You are also on the Vulcan board.
E)You also own shares in Vulcan Inc.

Answer 1

D

Question 2

Theoretically,which combination of technological characteristics requires the most organic structure?

A)Routine; low interdependence
B)Non-routine; low interdependence
C)Routine; high interdependence
D)Non-routine; high interdependence
E)Routine; mediating

Answer 2

D

Question 3

Which of the following is an example of vertical integration?

A)A newsprint manufacturer owns a forestry company.
B)Zeke is on the boards of directors of an oil exploration company and a gasoline retailer.
C)A steel company removes two levels from its organizational hierarchy.
D)An automobile company introduces computer aided design.
E)Two banks agree to merge.

Answer 3

A

Question 4

Which of the following statements concerning the external environment is true?

A)Different interest groups use identical criteria to evaluate organizational effectiveness.
B)Different interest groups seldom make conflicting demands on organizations.
C)Different parts of an organization will often be concerned with different components of its environment.
D)The smaller an organization,the more control it is likely to have over its environment.
E)Customers,suppliers,and employees are all components of an organization's external environment.

Question 5

Strategy formulation follows directly from

A)the objective environment.
B)strategy implementation.
C)the perceived environment.
D)managerial experience and personality.
E)organizational effectiveness.

Question 6

By definition,open systems

A)interact with their environments.
B)have no barriers against membership.
C)provide easy information access to outsiders.
D)provide an open forum for interest groups.
E)All of the above

Question 7

The organization that has adopted CAD

A)is vertically integrated.
B)makes extensive use of computers in designing its products.
C)relies extensively upon a mediating technology.
D)uses advanced accounting principles to aid management decisions.
E)effectively maintains the traditional role differences between designers,engineers and drawing technicians.

Question 8

Which technology will perform best under a mechanistic structure?

A)Process
B)Intensive
C)Mass
D)Unit
E)Non-routine

Question 9

In the text,organizational structure,degree of vertical integration,and the composition of a board of directors were examples of

A)strategic response.
B)strategy formulation.
C)the objective organizational environment.
D)the perceived organizational environment.
E)organizational effectiveness.

Question 10

The components of a highly dynamic environment

A)are in a constant state of cyclical change.
B)remain fairly stable over time.
C)contain a large number of dissimilar factors that affect an organization.
D)are in a constant state of unpredictable and irregular change.
E)are in a static state of unpredictable complexity.

Question 11

Which of the following is an example of vertical integration?

A)A diamond mine starts to market diamond rings.
B)A hotel chain buys a diamond mine.
C)A hotel chain adds a level to its organizational structure.
D)A diamond mine improves its labour/management relations.
E)A hotel chain restructures so that its regional managers now report to the director of operations.

Question 12

As defined and described in the text,interest groups do not

A)exist within an organization's environment.
B)exist within an organization.
C)make competing demands on an organization.
D)have different criteria for evaluating organizational effectiveness.
E)have some vested interest in how an organization is managed.

Question 13

Other factors equal,which of the following organizational characteristics suggests that an organic structure should be adopted?

A)Routine technology
B)Static environment
C)Mass technology
D)Uncertain environment
E)Undifferentiated market

Question 14

What strategic reason might prompt an organization in one industry to acquire a firm in a completely different industry?

A)To increase environmental uncertainty
B)To reduce resource dependence
C)To obtain a flatter structure
D)To reduce differentiation
E)To reduce competition

Question 15

Which technology poses the greatest problems of coordination,communication,and decision-making?

A)Long-linked
B)Mass
C)Intensive
D)Mediating
E)Vertical

Question 16

What is the relationship between resource dependence and environmental uncertainty?

A)They mean precisely the same thing.
B)Uncertainty causes dependence.
C)More uncertainty is correlated with more dependence.
D)Less uncertainty is correlated with more dependence.
E)They are fairly independent concepts.

Question 17

Other things equal,which of the following organizational environments is most uncertain?

A)Complex and dynamic
B)Simple and dynamic
C)Complex and static
D)Simple and static
E)Static and dynamic

Question 18

A regulatory agency is most likely a part of which environmental component faced by a business firm?

A)Customer component
B)Social/political component
C)Supplier component
D)Competitor component
E)Technological component

Question 19

Which of the following is an example of an interlocking directorate?

A)Jane and Sam are both directors of Ajax Company.
B)Jane is on the board of Ajax Company,and Sam is on the board of Acme Company.Ajax and Acme are in the same industry.
C)Jane is on the board of Ajax Company,and her husband,Sam,is on the board of Acme Company.
D)Jane is on the board of Ajax Company and she owns shares in Acme Company.
E)Jane is on the boards of Ajax Company and Acme Company.

Question 20

Which form of technological interdependence poses the greatest coordination,communication,and decision-making problems?

A)Sequential
B)Reciprocal
C)Low
D)Pooled
E)Vertical

Question 21

Which is the best example of sequential interdependence?

A)The ties between branches offices of a bank
B)A hockey team
C)An automobile assembly line
D)Any technology that requires a highly organic structure
E)The ties between branch outlets of a retail store

Question 22

A tailor shop that sews its suits to customer specifications has which kind of technology?

A)Process
B)Long-linked
C)Mass
D)Unit
E)Batch

Question 23

Which of the following technologies is characterized by many exceptions which are easy to analyze?

A)Non-routine technology
B)Engineering technology
C)Craft technology
D)Routine technology
E)Intensive

Question 24

A jewelry company buys a gold mine.This is an example of

A)pooled interdependence.
B)a strategic alliance.
C)reciprocal interdependence.
D)vertical integration.
E)interlocking interdependence.

Question 25

Enriched jobs and self-managed work teams are usually prescribed for ________ technology.

A)mass
B)advanced manufacturing
C)routine
D)mediating
E)pooled

Question 26

The Lawrence and Lorsch study is important because

A)it proved that mechanistic structures are superior to organic structures.
B)it proved that organic structures are superior to mechanistic structures.
C)it demonstrated a close connection between environment,structure,and effectiveness.
D)it demonstrated a close connection between human relations and physical technology.
E)it demonstrated how structure generally determines strategy.

Question 27

Which of the following is an example of a strategic alliance?

A)Bloggs Corporation and Sigma Limited join an R&D consortium.
B)Bloggs Corporation acquires Sigma Limited.
C)Bloggs Corporation merges with Sigma Limited.
D)Bloggs Corporation vertically integrates.
E)Bloggs Corporation and Sigma Limited have interlocking directorates.

Question 28

Which organization is likely to have an extremely mechanistic structure?

A)One that employs extensive advanced technology
B)One that fabricates large equipment in stages
C)A mass production firm in a very certain environment
D)One of Lawrence and Lorch's successful plastic firms
E)One that uses unit or process production in an uncertain environment

Question 29

Other things equal,more ________ technologies call for more ________ structures.

A)intensive; organic
B)interdependent; mechanistic
C)routine; organic
D)advanced; mechanistic
E)nonroutine; mechanistic

Question 30

The "two faces" of advanced information technology refers to

A)the idea that the same technology can have opposite effects depending upon how it is applied.
B)hardware and software.
C)manufacturing technology and office technology.
D)the idea that some people are very comfortable with technology while others don't adapt well to it.
E)the idea that the availability of too much information can result in reduced performance.

Question 31

According to Joan Woodward's findings,which technologies successfully rely on mechanistic structures?

A)Mass and process
B)Unit
C)Mass
D)Process and unit
E)Process

Question 32

According to Joan Woodward's findings,which technologies successfully rely on organic structures?

A)Process and mass
B)Mass and unit
C)Unit and process
D)Mediating and long-linked
E)Mediating and mass

Question 33

In the Lawrence and Lorsch study,the most successful container manufacturing firms adopted mechanistic structures because

A)their managers felt that this was the most sensible way to deal with an uncertain environment and high differentiation.
B)organic structures were too costly to implement.
C)they faced a fairly certain environment and were fairly undifferentiated.
D)decision-making power was already decentralized to be where the appropriate knowledge existed.
E)they utilized non-routine and intensive technologies.

Question 34

Which of the following statements concerning technologies is false?

A)Technology becomes less routine as exceptions increase.
B)Technology becomes less routine as problems become more difficult to analyze.
C)Craft technologies typically deal with fairly standard inputs and outputs.
D)An assembly line operation is an example of engineering technology.
E)Intensive technologies operate under reciprocal interdependence.

Question 35

According to Joan Woodward's findings,which technology has the smoothest production process and the most impersonal task requirements?

A)Unit
B)Mediating
C)Process
D)Mass
E)Nonroutine

Question 36

Copying another firm's management practices is an example of which strategic response?

A)Vertical integration
B)Establishment of legitimacy
C)Strategic alliance
D)Interlocking directorate
E)Acquisition

Question 37

Which is the best example of pooled interdependence?

A)An assembly line
B)A taxi company
C)A surgical team
D)A baseball team
E)An insurance claims department

Question 38

By definition,a strategic alliance would not occur between

A)two competing organizations.
B)a company and one of its suppliers.
C)two departments in the same company.
D)a company and a union.
E)three companies who combine efforts to support common research goals.

Question 39

Advanced information technology has the capacity to ________ an organization.

A)centralize
B)decentralize
C)centralize or decentralize
D)neither centralize nor decentralize
E)reduce the need for integration in

Question 40

Which of the following would not be classed as a strategic alliance?

A)Company A buys company B.
B)Company A enters into a research consortium with company B.
C)Company A enters into a close arrangement with its unique supplier,company B.
D)Company A engages in a joint venture with company B.
E)Company A enters into a close arrangement with the union representing its workers.

Question 41

Technological routineness is a function of

A)exceptions and problems.
B)rate of change and complexity.
C)exceptions and complexity.
D)rate of change and problems.
E)exceptions and interdependence.

Question 42

Which characteristic of advanced manufacturing technology permits the exploitation of short-term market niches?

A)Reliability
B)Customer orientation
C)Job simplification
D)Flexibility
E)Differentiated structure

Question 43

What strategic response helped WestJet get off the ground in its formative year?

A)Interlocking directorates
B)Mergers and acquisitions
C)Establishing legitimacy
D)Vertical integration
E)Organizational structure

Question 44

At what point in the relationship between the environment and strategy does managerial experience and personality play a role?

A)Between the objective environment and the perceived environment
B)Between perceived environment and strategy formulation
C)Between strategy formulation and strategy implementation
D)Between strategy implementation and organizational effectiveness
E)Between perceived environment and strategy implementation

Question 45

Which is the correct ordering of Perrow's four technological classifications from most routine to least routine?

A)Routine,non-routine,engineering,craft
B)Routine,non-routine,craft,engineering
C)Routine,craft,engineering,non-routine
D)Routine,engineering,craft,non-routine
E)Routine,engineering,non-routine,craft

Question 46

The application of advanced office technology is generally expected to lead to __________.

A)advanced manufacturing technology
B)an increase in middle management positions
C)taller organizational structures
D)flatter organizational structures
E)more centralized decision making

Question 47

When are strategic alliances most successful?

A)When they are between newly formed organizations
B)When they are among customers and suppliers
C)When they are among competitors
D)When there is a director of strategic alliances with his/her own staff and resources
E)When the organizations in question have been involved in other strategic alliances

Question 48

According to Woodward,which of the following reflects increasing smoothness of production and increasing impersonalization of task requirements?

A)Process,mass,unit
B)Unit,mass,process
C)Process,unit,mass
D)Unit,process,mass
E)Mass,unit,process

Question 49

After graduating from university,Joan is planning to start her own business.She wants to have her own chain of coffee bars.But that's not all.She plans to import,roast,and package her own brand of coffee.What is this a good example of?

A)Open systems
B)Resource dependence
C)Strategy
D)Vertical integration
E)Establishing legitimacy

Question 50

What is the most common way of achieving legitimacy?

A)Imitate management practices that other firms have institutionalized
B)Do good deeds in the community
C)Associate with higher status individuals or organizations
D)Make very visible responses to social trends and legal legislation
E)Engage in corporate philanthropy and various charity activities.

Question 51

Which of the following does Woodward's unit technology incorporate aspects of?

A)Perrow's craft technology and Thompson's intensive technology
B)Perrow's craft and engineering technologies and Thompson's intensive technology
C)Perrow's engineering technology and Thompson's intensive technology
D)Perrow's craft and engineering technologies
E)Perrow's craft and engineering technologies and Thompson's long-linked technology

Question 52

What comprises the basis for strategy formulation?

A)Objective environment
B)Perceived environment
C)Managerial experience
D)Managerial personality
E)Managerial objectives

Question 53

When properly implemented,advanced technologies often call for

A)less enriched jobs.
B)less tall structures.
C)less communication.
D)less financial commitment.
E)less teamwork.

Question 54

Who was interested in the way in which activities are sequenced or "put together" during the transformation process?

A)Perrow
B)Woodward
C)Thompson
D)Lawrence and Lorsch
E)Woodward and Thompson

Question 55

Research on the environment,structure,and effectiveness has found that

A)mature organizations and new ventures with a more mechanistic structure are most effective.
B)mature organizations and new ventures with a more organic structure are most effective.
C)mature organizations with a more organic structure,and new ventures with a more mechanistic structure are most effective.
D)mature organizations with a more mechanistic structure,and new ventures with a more organic structure are most effective.
E)mature organizations with a more organic structure,and new ventures with a either a mechanistic or organic structure are most effective,

Question 56

Who was interested in the routineness of the transformation task that confronts the department or organization?

A)Thompson
B)Perrow
C)Woodward
D)Lawrence and Lorsch
E)Thompson and Perrow

Question 57

A network organization is a good example of

A)a strategic alliance.
B)vertical integration.
C)a merger or acquisition.
D)interlocking directorate.
E)establishing legitimacy.

Question 58

Mutual adjustment and an organic structure are required by

A)mass production.
B)long-linked technologies.
C)mediating technologies.
D)intensive technologies.
E)routine technologies.

Question 59

Who conducted the most famous study of the relationship between technology and structure?

A)Thompson
B)Perrow
C)Woodward
D)Lawrence and Lorsch
E)Taylor

Question 60

Which of the following does Woodward's mass technology incorporate aspects of?

A)Perrow's non-routine technology and Thompson's long-linked technology
B)Perrow's engineering technology and Thompson's mediating technology
C)Perrow's engineering technology and Thompson's long-linked technology
D)Perrow's routine technology and Thompson's mediating technology
E)Perrow's routine technology and Thompson's long-linked technology

Question 61

Advanced manufacturing technologies call for simpler jobs and taller structures.

Question 62

Mass technologies are generally sequentially interdependent.

Question 63

Which of the following best represents the environmental and strategic concerns that have stimulated the adoption of advanced office technology?

A)Labour saving,flexibility,improved decision making
B)Labour saving,integration,improved decision making
C)Labour saving,flexibility,integration
D)Labour saving,responsiveness,improved decision making
E)Flexibility,responsiveness,improved decision making

Question 64

Research on Woodward's production processes found that successful firms that relied on organic structures had what kind of technology?

A)Unit
B)Process
C)Unit and process
D)Mass
E)Unit and mass

Question 65

What is the meaning of the "flexibility" of information technology?

A)Different types of technologies can be used depending on organization structure and job design.
B)Organizations can use it for both organization structure and job design.
C)It can be used for any organization structure or job design.
D)It is not deterministic of a particular organization structure or job design.
E)Information technology can be used for different organization structures and job designs.

Question 66

Mediating technologies operate under reciprocal interdependence.

Question 67

When it comes to strategic alliances,

A)most of them are successful.
B)most of them fail.
C)almost half of them fail.
D)about 90 percent of them are a success.
E)only about 10 percent of them are a success.

Question 68

An interlocking directorate exists when one person serves on two or more boards of directors.

Question 69

Whose research is considered to be a landmark in demonstrating the general proposition that structure must be tailored to the technology that the organization adopts to achieve its strategic goals?

A)Lawrence and Lorsch
B)Woodward
C)Perrow
D)Thompson
E)Zweig and Webster

Question 70

What industries did Lawrence and Lorsch chose for their research?

A)Plastics,packaged food products,and automobile
B)Plastics,packaged food products,and paper containers
C)Beverages,packaged food products,and paper containers
D)Beverages,packaged food products,and oil and gas
E)Plastics,packaged food products,and oil and gas

Question 71

What is a joint venture an example of?

A)Vertical integration
B)Merger
C)Acquisition
D)Strategic alliance
E)Interlocking directorate

Question 72

Which of the following is most accurate?

A)Uncertainty eliminates cause-and-effect relationships.
B)Uncertainty decreases cause-and-effect relationships.
C)Uncertainty increases cause-and-effect relationships.
D)Cause-and-effect relationships increase uncertainty.
E)Cause-and-effect relationships decrease uncertainty.

Question 73

According to James Thompson,long-linked technologies are less interdependent than intensive technologies and more interdependent than mediating technologies.

Question 74

Lawrence and Lorsch's research showed that successful container manufacturing firms had a more differentiated structure than successful plastics firms.

Question 75

What is a joint venture?

A)Two or more organizations decide to become one organization.
B)Two or more organizations form an alliance in the creation of a new organizational entity.
C)Two or more organizations have members who serve on each other's board of directors.
D)One organization takes control of the sources of another organization's supply and distribution.
E)Two or more organizations form an alliance to compete against other organizations.

Question 76

Both uncertain environments and routine technologies call for more organic structures.

Question 77

According to Joan Woodward's findings,mass technologies and process technologies operate best under organic structures,while unit technologies operate best under mechanistic structures.

Question 78

Woodward's research is considered to be a landmark in demonstrating which proposition?

A)Technology must be tailored to the strategy the organization adopts to achieve its structural goals.
B)Structure must be tailored to the strategy the organization adopts to achieve its technological goals.
C)Strategy must be tailored to the structure the organization adopts to achieve its technological goals.
D)Technology must be tailored to the structure the organization adopts to achieve its strategic goals.
E)Structure must be tailored to the technology the organization adopts to achieve its strategic goals.

Question 79

What sectors of the environment did Lawrence and Lorsch examine in their research?

A)Financial,human resources,and research
B)Sales,human resources,and production
C)Financial,production,and research
D)Sales,production,and financial
E)Sales,production,and research

Question 80

Research on Woodward's production processes found that successful firms that relied on mechanistic structures had what kind of technology?

A)Unit
B)Process
C)Mass
D)Unit and mass
E)Mass and process