Question 1

Executive committees are created to provide members of the board of directors an active role in strategy formulation and implementation.

Accepted Answer

False

Question 2

Even in situations where there is a good match between the characteristics of the current organizational structure and the requirements of the strategy, the present basic structure should not be maintained.

Accepted Answer

If there is a good match between the characteristics of the current organizational structure and the requirements of the strategy, maintaining the present basic structure is often beneficial as it supports strategic goals and minimizes disruptions.

Question 3

The matrix structure is most appropriate for organizations exhibiting which of the following characteristics?
A)Organizations with numerous products or projects that draw on common functional expertise.
B)Organizations that have grown through diversification, vertical integration, and aggressive market or product development.
C)Organizations with single product/service and narrowly focused organizations.
D)Multinational organizations and non- governmental agencies (NGAs).

Accepted Answer

The matrix structure is most appropriate for organizations with numerous products or projects that draw on common functional expertise. This structure allows for greater flexibility and responsiveness to changes in the market and customer needs, as well as better coordination and communication between different departments or teams. It is not as suitable for single product/service or narrowly focused organizations, as well as multinational organizations and non-governmental agencies (NGAs) that may have more complex organizational needs.

Question 4

The organizational structure decision is one of prioritizing which characteristics?
A)Competitive advantage and market reach.
B)Internal strengths and external opportunities.
C)Standardization and flexibility.
D)Functional structure and organic structure.

Accepted Answer

The decision about organizational structure prioritizes the characteristics of standardization and flexibility. The structure should provide enough standardization to ensure consistency and efficiency but also enough flexibility to adjust to changing environments and meet diverse customer needs. Factors such as competitive advantage, internal strengths, external opportunities, functional structure, and organic structure are important but are secondary to the balance between standardization and flexibility.

Question 5

Which of the following is NOT one of the fundamental organizational hierarchical designs?
A)Functional structure.
B)Divisional structure.
C)Matrix structure.
D)Circular structure.

Accepted Answer

The functional structure, divisional structure, and matrix structure are all fundamental organizational hierarchical designs. The circular structure is not a commonly recognized organizational design.

Question 6

Discuss the simplicity principle as it applies to matching organizational structure and strategy.

Accepted Answer

The answer of Discuss the simplicity principle as it applies...

Question 7

Venture teams are created outside the normal organizational structure; they are not bound by the normal "rules" of the organization.

Accepted Answer

Venture teams are created specifically to work on new projects or initiatives that may not fit within the organizational structure, and they are given greater autonomy and flexibility to develop and pursue their goals. As such, they are not bound by the normal rules and constraints of the organization, and are typically given more freedom to innovate and experiment in order to achieve their objectives.

Question 8

Organizational culture does NOT include the following component.
A)Shared assumptions.
B)Behavioral norms.
C)Competitive posture.
D)Shared values.

Accepted Answer

Organizational culture is typically defined by shared assumptions, behavioral norms, and shared values. Competitive posture refers to a company's strategic positioning and is not necessarily a component of organizational culture.

Question 9

Strategic facilities is the broad term used to delineate the physical environment of the health care organization. It is the "shell" in which health care is delivered.

Accepted Answer

Strategic facilities play a significant role in setting the stage for health care delivery. It includes the physical layout of the medical facility, equipment, and technology used to diagnose and treat patients, and the overall ambiance of the medical center.

Question 10

The process of developing value- adding support strategies involves which of these comparisons?
A)Compare strategy requirements with internal analysis.
B)Comparison of directional strategies with competitive strategies.
C)Comparison of organizational culture with organizational structure.
D)Comparison of adaptive strategies with market entry strategies.

Accepted Answer

Developing value-adding support strategies involves comparing the organization's strategy requirements with an internal analysis to identify areas where support strategies can add value. Option B compares different types of strategies, option C compares organizational aspects, and option D compares specific types of strategies. These comparisons do not directly relate to developing value-adding support strategies.

Question 11

Sophisticated equipment, especially information technology, is the focus of managing strategic technologies.

Accepted Answer

The answer of Sophisticated equipment, especially information technology, is the...

Question 12

What are the value- adding strategies?
A)Organizational structure, organizational culture, and strategic resources.
B)Pre-service, point-of-service, and after-service.
C)Cost leadership, differentiation, and focus.
D)Merger, acquisition, and internal investment.

Accepted Answer

The answer of What are the value- adding strategies?
A)Organizational structure,...

Question 13

Which of the following is TRUE of changing strategic resources?
A)Change in strategic resources is a rare requirement of developing value-adding support strategies.
B)Change in strategic resources is generally accomplished through acquisitions and mergers.
C)Change in strategic resources is usually restricted to changes in information systems.
D)Changing the type or nature of the financial and human resources, information systems, or facilities and equipment can be a difficult and long-term project.

Accepted Answer

Changing the strategic resources can be a difficult and long-term project as it involves changing the type or nature of financial and human resources, information systems, or facilities and equipment. It is not a rare requirement and can be accomplished through various means other than acquisitions and mergers. It is not restricted to changes in information systems only.

Question 14

Strategic resources do NOT include which of the following?
A)Financial resources.
B) Natural resources.
C)Human resources.
D)Technological resources.

Accepted Answer

Natural resources are not considered strategic resources as they are not under human control and ownership. Strategic resources are those resources that are valuable, rare, hard to imitate, and difficult to substitute, and can give a company a sustained competitive advantage in the marketplace. These include financial resources, human resources, and technological resources.

Question 15

Which of the following is NOT an appropriate question for evaluating support strategies?
A)Is the organization's culture appropriate for the overall strategy?
B)Is the competitor's organizational structure more appropriate for the market environment?
C)Are the facilities and equipment up-to-date and appropriate to carry out the overall strategy?

Accepted Answer

The question about the competitor's organizational structure is not relevant to evaluating support strategies for the organization itself. The other two questions are appropriate as they assess factors within the organization that could affect the success of the overall strategy.

Question 16

Strategic managers must decide if the organization's culture will contribute to the accomplishment of the strategy or must change over time.

Accepted Answer

Strategic managers must evaluate the organization's culture to determine if it supports the strategy and make changes if necessary. Therefore, the statement is true.

Question 17

Explain how organizational culture can impact an organization's financial performance.

Accepted Answer

The answer of Explain how organizational culture can impact an...

Question 18

In terms of matching organizational culture and strategy, an organization with culture viewed as a strength and an internal environmental analysis of culture result of HNEY (high value, not rare, easy to develop, and sustainable) should do which of the following?
A)Change the organizational culture.
B)Maintain the organizational culture.
C)Either change or maintain the organizational culture is the correct action.
D)Re-evaluate the internal environmental analysis of culture.

Accepted Answer

If an organization's culture is viewed as a strength and an internal environmental analysis of the culture shows that it has high value, is not rare, is easy to develop and is sustainable, then the best course of action is to maintain the organizational culture. Changing the culture could lead to negative consequences, such as decreased morale and productivity, and could cause the organization to lose its strength. Therefore, maintaining the culture is the best option.

Question 19

Information systems (ISs) are an essential competitive resource for health care organizations and are critical in supporting strategic decision making, administrative operations, and patient care in an increasingly information- intensive industry.

Accepted Answer

Information systems are indeed an essential competitive resource in the healthcare industry, as they help support various aspects of organizational operations and patient care.

Question 20

Discuss the financial resource implications of expansion, contraction, and maintenance of scope adaptive strategies.

Accepted Answer

The answer of Discuss the financial resource implications of expansion,...

Quiz 9: Value-Adding Support Strategies

Executive committees are created to provide members of the board of directors an active role in strategy formulation and implementation.

Even in situations where there is a good match between the characteristics of the current organizational structure and the requirements of the strategy, the present basic structure should not be maintained.

The matrix structure is most appropriate for organizations exhibiting which of the following characteristics?

The organizational structure decision is one of prioritizing which characteristics?

Which of the following is NOT one of the fundamental organizational hierarchical designs?

Discuss the simplicity principle as it applies to matching organizational structure and strategy.

Venture teams are created outside the normal organizational structure; they are not bound by the normal "rules" of the organization.

Organizational culture does NOT include the following component.

Strategic facilities is the broad term used to delineate the physical environment of the health care organization. It is the "shell" in which health care is delivered.

The process of developing value- adding support strategies involves which of these comparisons?

Sophisticated equipment, especially information technology, is the focus of managing strategic technologies.

What are the value- adding strategies?

Which of the following is TRUE of changing strategic resources?

Strategic resources do NOT include which of the following?

Which of the following is NOT an appropriate question for evaluating support strategies?

Strategic managers must decide if the organization's culture will contribute to the accomplishment of the strategy or must change over time.

Explain how organizational culture can impact an organization's financial performance.

In terms of matching organizational culture and strategy, an organization with culture viewed as a strength and an internal environmental analysis of culture result of HNEY (high value, not rare, easy to develop, and sustainable) should do which of the following?

Information systems (ISs) are an essential competitive resource for health care organizations and are critical in supporting strategic decision making, administrative operations, and patient care in an increasingly information- intensive industry.

Discuss the financial resource implications of expansion, contraction, and maintenance of scope adaptive strategies.