Question 1

Stage III (Divisional Structure) is the point when the entrepreneur is replaced by a team of managers who have functional specialization.

Accepted Answer

Stage III, also known as the Delegation Stage in organizational development, involves the entrepreneur delegating responsibilities to a management team, but it does not necessarily mean the entrepreneur is replaced. The focus is on decentralization and delegation, not replacement.

Question 2

The network structure becomes most useful when the environment of a firm is unstable and is expected to remain so.

Accepted Answer

The network structure is designed to be adaptable and responsive to changes in an unstable environment, making it most useful in such situations.

Question 3

Lean Six Sigma incorporates the statistical approach of Six Sigma with the lean manufacturing program originally developed by Toyota.

Accepted Answer

Lean Six Sigma combines the tools and methodologies of both Six Sigma and lean manufacturing.

Question 4

Studies of the performance of reengineering programs show clear, consistent, and overwhelming evidence of success and improved productivity.

Accepted Answer

While some reengineering programs may be successful, not all programs have been consistently successful and there is not overwhelming evidence of success and improved productivity. Results may vary depending on the specific program and company.

Question 5

A crisis of control may develop in the Stage III divisional structure.

Accepted Answer

In a Stage III divisional structure, each division operates as a separate business unit with its own functional departments such as HR, finance, and marketing. As a result, there may be a lack of coordination and control from the corporate level, leading to a crisis of control where divisions may act independently and not align with the overall goals of the company.

Question 6

When using a network structure, many corporate activities are outsourced.

Accepted Answer

This statement is true. In a network structure, companies often collaborate with other businesses or outsource certain activities to specialized firms. This allows them to focus on their core competencies and reduce costs.

Question 7

The geographic-area structure allows the company to introduce and manage a similar line of products around the world.

Accepted Answer

The geographic-area structure typically organizes a company's operations by regions, countries, or territories, focusing on adapting products and strategies to local markets rather than introducing and managing a similar line of products worldwide.

Question 8

The use of SBUs may result in a red tape crisis in which the corporation has grown too large and complex to be managed through formal programs, and rigid systems and procedures take precedence over problem-solving.

Accepted Answer

The use of SBUs (Strategic Business Units) can lead to a red tape crisis in large corporations where formal programs and rigid systems take precedence over problem-solving, which can hinder effective management.

Question 9

Pioneered in the automobile industry, the matrix structure was developed to combine the flexibility of the functional structure with the stability of the product formulation.

Accepted Answer

The matrix structure was not pioneered in the automobile industry; it was developed in various industries to combine the benefits of functional and product-based structures, providing flexibility and stability.

Question 10

The corporation's life cycle can be extended by managerial and product innovation.

Accepted Answer

By introducing new management techniques and continuously improving and innovating the products, a corporation can extend its life cycle by staying relevant in the market and adapting to changing customer needs and preferences.

Question 11

Job enlargement is the movement of workers through several jobs to increase variety.

Accepted Answer

Job enlargement involves increasing the variety and complexity of tasks assigned to a worker, not moving them through several jobs.

Question 12

Microbreweries that make beer for sale for local customers, use guerilla warfare against national brewers like Anheuser-Busch.

Accepted Answer

Microbreweries often use creative marketing tactics and community involvement to compete against large national brewers. This can include hosting events and tastings, collaborating with local businesses, and emphasizing their unique and high-quality products. Some may even use humor or satire to poke fun at the mass-produced beers of larger companies. These tactics can be seen as a form of guerrilla warfare in the industry.

Question 13

As industries move from being multidomestic to more globally integrated, multinational corporations are increasingly switching from the geographic-area to the product-group structure.

Accepted Answer

As industries become more globally integrated, multinational corporations are shifting from the geographic-area structure (where each regional market is managed separately) to the product-group structure (where different products are managed together regardless of regional location). This allows for greater efficiency and consistency in product development and marketing across different markets.

Question 14

The sum total of the activities and choices required for the execution of a strategic plan is known as

Accepted Answer

Strategy implementation refers to the actual execution of a strategic plan, which includes a wide range of activities and choices, such as resource allocation, organizational restructuring, performance management, and communication. Strategic formulation is the process of developing and selecting strategies, environmental scanning is the analysis of the external environment, evaluation and control is the process of monitoring and adjusting the implementation of strategies, and strategic development is a broader term that encompasses all stages of strategy development and implementation. Therefore, among the given options, strategy implementation best describes the sum total of the activities and choices required for the execution of a strategic plan.

Question 15

Stage IV of a corporation could involve a pressure-cooker crisis.

Accepted Answer

Stage IV of a corporation, also known as the crisis stage, can involve a pressure-cooker crisis where the company is faced with significant challenges and must make strategic decisions to survive. This can involve financial struggles, legal issues, reputational damage, or other crises that threaten the future of the organization.

Question 16

In order to implement reengineering, Hammer suggests that those who use the output of the process perform the reengineering process.

Accepted Answer

Hammer believes that it is important for the people who use the output of the process to be involved in the reengineering process to ensure that the process is efficient and effective for their needs.

Question 17

Which statement below is NOT True of strategy implementation?

Accepted Answer

This statement is not true because strategy implementation should not be kept separate and distinct from strategic management. In fact, strategy implementation is an integral part of strategic management and involves the execution of the strategic plan.

Question 18

Asking "What would Walt do" at Disney years after his death could present blocks to needed change.

Accepted Answer

Asking "What would Walt do" can lead to a resistance to change and limit the potential for innovation in a company, preventing it from adapting to changing times and customer needs. It is important to honor the legacy of the founder but not to become too attached to their specific ways of doing things.

Question 19

The second stage of the organizational life cycle is maturity.

Accepted Answer

The second stage of the organizational life cycle is typically considered to be the growth or survival stage, following the startup or birth stage, and preceding the maturity stage.

Question 20

Stage 4 of international development is a multinational corporation with global emphasis - denationalizing its operations.

Accepted Answer

The answer of Stage 4 of international development is a...

Quiz 9: Strategy Implementation: Organizing for Action