Question 1

A divisional structure

Accepted Answer

A)   is organized around functional area departments.
B)   typically improves the performance of firms pursuing a strategy of vertical integration.
C)   facilitates the development of general managers.
D)   enhances centralized decision making.E) None of the above
F) B) and C)

Question 2

Brinker International found that the diverse markets served by their bakeries and restaurants made it difficult focus on the unique aspects faced by each chain and consequently changed from a

Accepted Answer

A)   simple structure to a functional structure
B)   divisional structure to a matrix structure
C)   functional structure to a divisional structure
D)   virtual structure to an ambidextrous structureE) A) and C)
F) All of the above

Question 3

Complete the following sentence: "Virtual organizations ______________ whereas modular organizations ________________."

Accepted Answer

A)   are usually permanent; are usually temporary
B)   accept interdependent destinies; pursue collective strategies
C)   pursue collective strategies; forfeit strategic control
D)   give up part of their strategic control; retain full strategic controlE) A) and B)
F) B) and D)

Question 4

Diversified Canadian conglomerate Weston has put its businesses into three primary SBUs, which are

Accepted Answer

A)   bakeries, retail and food processing.
B)   retail, shipping, and online sales through Loblaws.com.
C)   baked goods, unbaked goods, and grains and oilseeds.
D)   retail, wholesale, and manufacturing.E) B) and C)
F) A) and D)

Question 5

A worldwide product division structure is used when global strategies require that each division be responsible for overall efficiency and performance.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is an advantage of a functional type of organizational structure?

Accepted Answer

A)   Decentralized decision-making enhances an organization-wide perspective across functions.
B)   It facilitates the development of general management talent.
C)   Pooling of specialists enhances coordination and control.
D)   It is easy to establish uniform performance standards.E) B) and C)
F) A) and D)

Question 7

A simple structure is characterized by

Accepted Answer

A)   high specialization and low centralization.
B)   low specialization and high centralization.
C)   low formality and low creativity.
D)   high formality and low centralization.E) A) and D)
F) B) and C)

Question 8

The virtual organization's pursue a collective strategy that enables them to cope with environmental uncertainty through cooperation.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is considered to be an advantage of a matrix structure?

Accepted Answer

A)   The layering of matrices
B)   Increased clarity in reporting relationships
C)   Increased responsiveness to the market
D)   Fewer power struggles and reduced conflictE) A) and B)
F) A) and C)

Question 10

Describe the attributes of a functional organizational structure.

Accepted Answer

The simple organizational structure is t...

Question 11

Which of the following is not a boundaryless organizational design?

Accepted Answer

A)   Virtual
B)   Modular
C)   Matrix
D)   Barrier-freeE) A) and B)
F) A) and D)

Question 12

In a simple structure where the owner-manager makes most of the important decisions, extensive rules and regulations are used to maintain order.

Accepted Answer

A) True 
 B)False

Question 13

Modular companies can achieve rapid growth because they don't require large investments in fixed assets.

Accepted Answer

A) True 
 B)False

Question 14

What are the advantages and disadvantages associated with using the divisional organizational form?

Accepted Answer

Advantages: By creating separate divisio...

Question 15

Functional structures are usually found in organizations where there is

Accepted Answer

A)   high volume production.
B)   unrelated product lines or service offerings.
C)   very little vertical integration.
D)   a strong need to decentralize decision making.E) A) and B)
F) A) and C)

Question 16

In a barrier-free organization, differences in skills, authority, and talent disappear.

Accepted Answer

A) True 
 B)False

Question 17

At Nucor, a successful steel producer, reward and incentive systems are reflected in its:

Accepted Answer

A)   Senior management
B)   Culture
C)   Board of directors
D)   ProfitabilityE) None of the above
F) A) and D)

Question 18

Outline the three main contingencies that seem to influence the structure adopted by firms with international operations.

Accepted Answer

Three major contingencies that influence...

Question 19

The boundaries between levels in an organization's hierarchy are known as

Accepted Answer

A)   vertical boundaries.
B)   horizontal boundaries.
C)   external boundaries.
D)   geographic boundaries.E) B) and C)
F) A) and D)

Question 20

All of the following describe disadvantages of virtual structures, except:

Accepted Answer

A)   difficulty in individual and organizational knowledge sharing.
B)   potential loss of operational control among partners.
C)   loss of strategic control over emerging technology.
D)   difficulty in determining where one company ends and another begins due to close interdependencies.E) A) and D)
F) C) and D)

Exam 9: Creating Effective Organizational Designs

Modular companies can achieve rapid growth because they don't require large investments in fixed assets.

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Brinker International found that the diverse markets served by their bakeries and restaurants made it difficult focus on the unique aspects faced by each chain and consequently changed from a

Correct AnswerverifiedShow Answer

Complete the following sentence: "Virtual organizations ______________ whereas modular organizations ________________."

Correct AnswerverifiedShow Answer

Functional structures are usually found in organizations where there is

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The boundaries between levels in an organization's hierarchy are known as

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Describe the attributes of a functional organizational structure.

Correct AnswerverifiedThe simple organizational structure is t...View AnswerShow Answer

All of the following describe disadvantages of virtual structures, except:

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The virtual organization's pursue a collective strategy that enables them to cope with environmental uncertainty through cooperation.

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In a simple structure where the owner-manager makes most of the important decisions, extensive rules and regulations are used to maintain order.

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A worldwide product division structure is used when global strategies require that each division be responsible for overall efficiency and performance.

Correct AnswerverifiedShow Answer

Diversified Canadian conglomerate Weston has put its businesses into three primary SBUs, which are

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At Nucor, a successful steel producer, reward and incentive systems are reflected in its:

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A divisional structure

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In a barrier-free organization, differences in skills, authority, and talent disappear.

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A simple structure is characterized by

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Which of the following is not a boundaryless organizational design?

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What are the advantages and disadvantages associated with using the divisional organizational form?

Correct AnswerverifiedAdvantages: By creating separate divisio...View AnswerShow Answer

Outline the three main contingencies that seem to influence the structure adopted by firms with international operations.

Correct AnswerverifiedThree major contingencies that influence...View AnswerShow Answer

Which of the following is considered to be an advantage of a matrix structure?

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Which of the following is an advantage of a functional type of organizational structure?

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Complete the following sentence: "Virtual organizations whereas modular organizations __."

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The simple organizational structure is t...
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Advantages: By creating separate divisio...
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Three major contingencies that influence...
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Correct Answer
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