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What are multidivisional structures? How are they implemented?

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As a firm diversifies into different pro...

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What is organizational culture? What are the key elements of organizational culture?

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Organizational culture describes the col...

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Describe a global matrix structure.Why do firms use it?

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A global matrix structure is formed by c...

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Organizational design is:


A) the process of creating, implementing, and modifying the structure of an organization.
B) primarily focused on replacing a firm's competitive advantage with competitive parity.
C) a process that always functions independently of strategy formulation.
D) primarily focused on formulating effective strategies, not implementing them.

E) All of the above
F) A) and D)

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Coda Inc.is an apparel manufacturer.The management at Coda prefers moderate control over the operations of the different departments such as R&D, design, marketing, and sales.It allocates a budget to each function at the beginning of each quarter.This is an example of implementing control through _____.


A) output controls
B) input controls
C) multidivisional strategy
D) centralization

E) A) and B)
F) All of the above

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Flight Stream Inc., a toy manufacturing company, encourages its employees to enjoy their work by taking on additional responsibilities or switching jobs with each other.It allows its employees immense flexibility in charting their own career path within the organization.Chris has worked at Flight Stream for eight years but has never had a boss or supervised an employee.Which of the following is most likely true in this scenario?


A) Flight Stream Inc. is a mechanistic organization.
B) Flight Stream Inc. has a flat organizational structure.
C) Flight Stream Inc. has a high degree of centralization.
D) Flight Stream's organizational culture is governed by codified rules.

E) A) and B)
F) A) and C)

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W.L.Gore has four product divisions: electronic products, industrial products, medical products, and fabrics division.It also has manufacturing facilities in U.S., China, Germany, Japan, and Scotland, and business activities in 30 countries across the globe.Based on this information, which of the following statements is most accurate?


A) W.L. Gore is pursuing a cost-leadership strategy.
B) W.L. Gore is using a multidivisional structure.
C) W.L. Gore is using a simple structure.
D) W.L. Gore is pursuing an integration strategy.

E) A) and C)
F) B) and D)

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Organizational culture can help a firm gain and sustain competitive advantage only if the culture makes a positive contribution to the firm's economic value creation and _____.


A) eventually gives way to core rigidity
B) obeys the VRIO principles
C) does not demonstrate causal ambiguity
D) displays an absence of social complexity

E) B) and D)
F) None of the above

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An organization is characterized as having a flexible division of labor, distributed decision-making, and generalized knowledge of how to accomplish strategic goals valued.This organization is most likely _____ in nature.


A) specialized
B) organic
C) mechanistic
D) formalized

E) None of the above
F) B) and D)

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Fast Call Inc.is a pharmaceutical company that has many breakthroughs in medicine to its credit.Unlike many other pharmaceutical companies, Fast Call has a relaxed work environment where employees are free to discuss projects with each other.Employees are encouraged to choose the projects that interest them; communication between team members and their supervisors is open and easy.Because of the company's work culture, its employees feel motivated to work harder and display more entrepreneurial behaviors.In this scenario, Fast Call Inc.is most likely an organization that is _____.


A) formalized
B) mechanistic
C) centralized
D) organic

E) A) and B)
F) C) and D)

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What is most likely to happen if a firm relies too long on a competency without honing, refining, and upgrading as the firm and the environment change?


A) The firm's original core competency can turn from a liability into an asset.
B) The firm's organizational inertia can turn into its core rigidity.
C) The firm's competitive parity can turn into its competitive advantage.
D) The firm's culture can turn from a core competency into a core rigidity.

E) B) and D)
F) A) and B)

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What are the implications of centralization on strategic management processes in an organization?

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Centralization refers to the degree to w...

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Which of the following statements is true of organizational culture?


A) Changes in culture are too frequent to have any impact on strategic implementation.
B) It is better for founder CEOs to create a relevant culture, structure, and strategy in the early stages.
C) It is always better to focus on output control and performance than on organizational culture.
D) According to research, more than 50 percent of firms change culture successfully.

E) B) and C)
F) B) and D)

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Which of the following types of organizations best helps match a differentiation strategy to a functional structure?


A) Ambidextrous organization
B) Mechanistic organization
C) Organic organization
D) Rigid organization

E) B) and C)
F) C) and D)

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Which of the following statements is true about the use of functional structures with various business strategies?


A) The goal of a differentiation strategy is to create competitive parity.
B) The goal of a cost-leadership strategy is to create competitive parity.
C) The goal of a differentiation strategy is to create a competitive advantage by controlling costs.
D) A cost-leadership strategy can be effectively implemented with the help of an organic structure.

E) All of the above
F) B) and C)

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What are the benefits and limitations of a high degree of formalization in an organization?

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Formalization captures the extent to whi...

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As demonstrated by business historian Alfred Chandler in his seminal book "Strategy and Structure," organizational structure must follow strategy.Why?

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Alfred Chandler conducted a series of ca...

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Describe the organizational structure formed by combining the multidivisional structure (M-form)and the functional structure?

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To reap the benefits of both the M-form ...

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Why does a functional structure rely on a flat organizational structure?


A) The work in the organization is centrally coordinated by the CEO.
B) It allows for a higher degree of specialization and domain expertise.
C) It allows for efficient bottom-up and top-down communication.
D) It allows for the implementation of a differentiation strategy.

E) A) and D)
F) All of the above

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Organizational culture can be the basis of a firm's competitive advantage if _____.


A) it is valuable, rare, and difficult to imitate
B) it is trademarked and copyright protected
C) it converts the organization's core competency into its core rigidity
D) it changes the organization's inertia into its core rigidity

E) C) and D)
F) A) and B)

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