Question 1

A cost leadership strategy is based on an organization's ability to provide a product or service at a lower cost than its rivals.

Accepted Answer

A cost leadership strategy involves providing a product or service at a lower cost than competitors, thereby achieving a competitive advantage.

Question 2

A company organized based on product design has the benefit of permitting fast changes in a product line.

Accepted Answer

A company organized based on product design focuses on specific products or product lines, allowing for easier modifications and updates to those products without affecting the entire organizational structure. This means that changes in a product line can be made more quickly and efficiently.

Question 3

In Learning from Experience: When Carl Buchan started Lowe's stores, he focused on major metropolitan markets serving populations of at least 500,000.

Accepted Answer

Carl Buchan initially focused on rural markets rather than major metropolitan areas, aiming to serve a customer base that was underserved by larger, urban-focused retailers.

Question 4

In Across Cultures Competency: After purchasing Eureka in 2004, AB Electrolux discovered it would have to change Eureka's organizational design to achieve a viable global organization.

Accepted Answer

The statement mentions that AB Electrolux had to change Eureka's organizational design to achieve a viable global organization, which means that the statement is true.

Question 5

A company division refers to a specialized function within an organization, such as human resources.

Accepted Answer

The answer of A company division refers to a specialized...

Question 6

Division of labor means that any employee is capable of completing any task.

Accepted Answer

Division of labor means that each employee specializes in a particular task or set of tasks, leading to increased efficiency and productivity.

Question 7

A(n) _____ shows the formal connections among various divisions and departments in a company.
A) organization chart
B) market study
C) sales forecast
D) mission statement

Accepted Answer

An organization chart shows the formal connections among various divisions and departments in a company. It outlines the hierarchy of positions and roles and defines who reports to whom, helping to provide clarity and structure for employees within the organization.

Question 8

In Change Competency: Sam Su of Kentucky Fried Chicken discovered that when doing business in China, you will rarely encounter government involvement.

Accepted Answer

The statement is false. In fact, government involvement is often a key factor when doing business in China.

Question 9

Organization design is the process of selecting a structure for the tasks, responsibilities, and authority relationships within an organization.

Accepted Answer

This statement is true. Organization design is the process of selecting a structure for the tasks, responsibilities, and authority relationships within an organization. It involves determining how the organization's resources, people, and processes should be arranged and coordinated to achieve its goals and objectives.

Question 10

Mechanistic management practices can be described as bureaucratic.

Accepted Answer

Mechanistic management practices are characterized by standardization, centralization, and a hierarchical organizational structure, which aligns with the bureaucracy model.

Question 11

The marketing department, sales team, and product development team work closely together to create, promote, and sell a product. This demonstrates the idea of integration.

Accepted Answer

Integration refers to different departments working together towards a common goal or objective, and in this scenario, the marketing, sales, and product development teams work together towards creating, promoting, and selling a product.

Question 12

A hierarchy refers to the number of employees directly reporting to a single individual.

Accepted Answer

A hierarchy refers to a system where members of an organization are ranked according to their levels of authority, not specifically to the number of employees reporting to a single individual.

Question 13

Which environmental factor is Connie concerned with when she decides to create a fixed cost by establishing a long-term contract with the company that provides her jewelry company with fasteners?
A) competitor
B) supplier
C) customer
D) distributor

Accepted Answer

Connie is concerned with the environmental factor of the supplier. By creating a long-term contract with the company that provides her jewelry company with fasteners, she is establishing a fixed cost and reducing the risk of price fluctuations or availability issues from the supplier. A competitor, customer, or distributor would not be relevant in this scenario.

Question 14

In "Learning from Experience: Lowe's Companies, Inc." is trying to take advantage of which of these major trends in the marketplace?
A) opening more rural locations
B) focusing on consumer market and not the contract market
C) appealing to female urban shoppers
D) conducting service surveys through social media

Accepted Answer

Lowe's strategy to appeal to female urban shoppers is a response to the recognition of the significant buying power and influence of this demographic in the home improvement market. This approach aims to broaden their customer base and cater to a segment that is increasingly involved in home improvement decisions.

Question 15

Raul would like to start his own company but knows he would need to staff areas for production, accounting, marketing, and human resources. Which part of organization design is he considering?
A) divisions
B) headquarters
C) groups
D) departments

Accepted Answer

Raul is considering organizing his company into departments for production, accounting, marketing, and human resources.

Question 16

Mary Ellen checks with her manager to be sure she can purchase the new copier because her boss has the right to make this decision. In other words, her boss has accountability.

Accepted Answer

Her boss has authority, not accountability. Authority refers to the right to make decisions, while accountability refers to being responsible for the outcomes of those decisions.

Question 17

In Teams Competency: At the Morning Star Company, job roles and responsibilities are defined by a managing director.

Accepted Answer

At the Morning Star Company, job roles and responsibilities are not defined by a managing director. Instead, they are defined by the individuals themselves through a process called "missioning." Each employee creates their own mission statement that outlines their goals, responsibilities, and metrics for success. This approach is meant to empower employees and promote self-management.

Question 18

Authority, responsibility, and accountability for a project are given to the supervisor when using organic management practices.

Accepted Answer

Organic management practices typically emphasize decentralization, flexibility, and shared responsibility rather than concentrating authority, responsibility, and accountability in a single supervisor.

Question 19

____ are the environmental factors responsible for helping organizations deliver and sell their products.
A) Distributors
B) Customers
C) Competitors
D) Suppliers

Accepted Answer

Distributors are the intermediaries between the manufacturers and the retailers or end-users. They help organizations reach their target market, by delivering their products efficiently and effectively. They also help organizations in selling their products by providing them with valuable insights about the market, customer preferences and competitors. The other options (B) customers, (C) competitors, (D) suppliers are also important environmental factors, but they do not directly help organizations in delivering and selling their products.

Question 20

In Change Competency: Decentralization allowed the Joint Special Operations Command to provide information to the different units in a more efficient fashion as they worked to defeat Al-Qaeda.

Accepted Answer

Decentralization allowed for quicker decision-making and more direct communication between units, enabling the Joint Special Operations Command to provide information to different units in a more efficient manner. This aided in their efforts to defeat Al-Qaeda.

Quiz 15: Organization Design