Creating Effective Organizational Designs

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Questions Bank

Strategic Management: Creating Competitiveadvantages
Analyzing the External Environment Ofthe Firm: Creating Competitive Advantages
Assessing the Internal Environmentof the Firm
Recognizing a Firms Intellectual Assets: Moving Beyond a Firms Tangibleresources
Business-Level Strategy: Creating Andsustaining Competitive Advantages
Corporate-Level Strategy: Creatingvalue Through Diversification
International Strategy: Creating Valuein Global Markets
Entrepreneurial Strategy and Competitive Dynamics
Strategic Control and Corporategovernance
Creating Effective Organizational Designs
Strategic Leadership: Creating a Learning Organization and an Ethical Organization
Managing Innovation and Fosteringcorporate Entrepreneurship

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Question 1

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The strategy and structure of a firm change as the firm increases in size,diversifies into new product markets,and limits its geographic scope.

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Question 2

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A strategy of related diversification requires a need to reorganize around product lines and geographic markets.This leads to a divisional structure.

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Question 3

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When a firm has international operations,choosing the most appropriate structure depends upon the extent of international expansion,the type of strategy,and the degree of market diversity.

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Question 4

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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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Question 5

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A small firm with a simple structure often fosters creativity and individualism because of its informal atmosphere.

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Question 6

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A simple organizational structure may lead to problems such as unclear boundaries of authority and few career advancement options.

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Question 7

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As firms grow,owner managers often need to hire functional specialists to handle the increased information-processing burden.

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Question 8

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To enhance integration and control of related product market activities,the functional structure minimizes centralization.

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Question 9

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One disadvantage of a functional structure is that differences in functional orientation may impede organization coordination and communication.

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Question 10

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Operational decision making in a large business places excessive demands on top management of the firm.

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Question 11

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A major disadvantage of adopting a divisional structure is the tendency for managers to focus on short-term objectives.

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Question 12

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A major disadvantage of a divisional structure is that when divisions are separated to manage individual product markets,there is a separation of strategic and operational control.

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Question 13

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The strategic business unit (SBU)and holding company structure are variants of the functional form of structure.

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Question 14

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One major advantage of the holding company form of organization structure is that it minimizes the duplication of functional activities between product lines.

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Question 15

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The matrix structure attempts to combine the advantages of the functional and product-oriented structure.

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Question 16

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A matrix organization is organized strictly along product lines.

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Question 17

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A major disadvantage of the matrix structure is that it duplicates the use of specialized personnel,equipment,and facilities.

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Question 18

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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.

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Question 19

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A global startup typically benefits from lower communication,coordination,and transportation costs.

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Question 20

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Global start-ups occur after a corporation has exhausted all other possibilities for domestic growth.

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