Question 1

In Greiner's model of growth, a crisis of autonomy is followed by the growth through delegation stage.

Accepted Answer

In Greiner's model of growth, a crisis of autonomy is indeed followed by the growth through delegation stage.

Question 2

An entrepreneur designs a new product. He or she will most likely pursue which of the following strategies?

Accepted Answer

The answer of An entrepreneur designs a new product. He...

Question 3

XYZ company has experienced tremendous growth due to the leadership of a strong
top- management team, but the turnover of scientists and researchers has been high. What stage of the organizational life cycle is this company in and what is the crisis it is facing? How can the company resolve this crisis?

Accepted Answer

The answer of XYZ company has experienced tremendous growth due...

Question 4

One reason for the liability of newness is that new organizations lack a formal structure.

Accepted Answer

New organizations often lack a formal structure since they are in their early stages of development. This can make it difficult for them to establish policies and procedures, allocate resources effectively, and establish a culture that aligns with their goals and values. This lack of structure can increase the likelihood of mistakes, miscommunication, and conflicts, which can lead to liability issues.

Question 5

In Greiner's model of growth, the growth through direction stage follows a crisis of control.

Accepted Answer

The answer of In Greiner's model of growth, the growth...

Question 6

At a trade show, a manager discusses with his competitor several different ideas on how to serve customers better. The competitor then uses some of these ideas in her organization. This is an example of ___________.

Accepted Answer

This is an example of normative isomorphism, where the competitor has adopted similar practices to the manager's organization in order to conform to industry norms and standards.

Question 7

A large organization has lost money two years consecutively. Top management is reluctant to make radical changes, and stakeholders are starting to withdraw their support. What stage of the organizational life cycle is this company in and what can it do to prevent organizational death?

Accepted Answer

The answer of A large organization has lost money two...

Question 8

General Dynamics managed the decline process by __________.

Accepted Answer

General Dynamics managed the decline process by downsizing, which involved reducing its workforce and divesting non-core businesses to focus on its core operations.

Question 9

Organizations have the greatest risk of failure when they are in the_________ stage of the organizational life cycle.

Accepted Answer

Organizations are most vulnerable during the birth stage as they are just starting out and face challenges such as establishing a market presence, securing funding, and building a customer base.

Question 10

Which of the following theories attempts to explain the rate of organizational birth in a new environment?

Accepted Answer

Population ecology theory explains the rate of organizational birth in a new environment by examining how environmental factors affect the survival and proliferation of organizations.

Question 11

A new management team may be needed to turn an organization around once it reaches the_________ stage of decline.

Accepted Answer

The crisis stage is the point at which an organization is facing imminent failure and a new management team may be needed to turn it around.

Question 12

An organization in the dissolution stage should:

Accepted Answer

In the dissolution stage, an organization is typically beyond recovery and should focus on liquidating assets and declaring bankruptcy to settle debts and obligations.

Question 13

An entrepreneur develops a new product and starts an organization. What strategy is he or she pursuing? What advantages are associated with this strategy and what future problems do you foresee?

Accepted Answer

The answer of An entrepreneur develops a new product and...

Question 14

In the inaction stage, managers:

Accepted Answer

In the inaction stage, managers may fail to act because they perceive the situation as temporary and believe that no immediate action is necessary.

Question 15

Which of the following is not included in a SWOT analysis?

Accepted Answer

SWOT analysis includes Strengths, Weaknesses, Opportunities, and Threats. Standards are not part of SWOT analysis.

Question 16

In Greiner's model of growth, the phase of growth following a crisis of leadership is called:

Accepted Answer

The answer of In Greiner's model of growth, the phase...

Question 17

General Dynamics had a top- management team that:

Accepted Answer

The answer of General Dynamics had a top- management team...

Question 18

In a SWOT analysis, strengths and weaknesses are inside the organization, while opportunities and threats are environmental.

Accepted Answer

This statement is true. Strengths and weaknesses are internal factors that are within the control of the organization, while opportunities and threats are external factors that exist in the environment and are beyond the control of the organization.

Question 19

McDonald's was one of the first fast- food restaurants and has a recognized name because of_________ .

Accepted Answer

McDonald's gained a recognized name due to first-mover advantages, being one of the first in the fast-food industry, which allowed it to establish a strong brand and customer base early on.

Question 20

_________are organizations that concentrate their skills to pursue a narrow range of resources in a single niche.

Accepted Answer

Specialists are organizations that focus their skills and resources on a narrow range of activities or a specific niche, allowing them to excel in that particular area.

Quiz 11: Organizational Transformations: Birth, Growth, Decline, and Death