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Commerce and BusinessbackBusinessbackStrategic ManagementbackStrategic ManagementbackPractice Set 2475back

Implementing Strategy In Companies That Compete In A Single Industry

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Question 1
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The purpose of organizational structure is to provide managers with specific feedback on how well an organization and its members are performing and building competitive advantage.

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Question 2
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An important purpose of control systems is to motivate employees to work toward increasing efficiency,quality,innovation,and responsiveness to customers.

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Question 3
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Effective organizational design can allow a company to obtain a competitive advantage but it has no impact on profitability.

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Question 4
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A division is a way of grouping functions to allow an organization to better produce and dispose of its goods and services.

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Question 5
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Span of control refers to the number of subordinates who report directly to one supervisor.

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Question 6
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Flat structures can lead to information distortion when data are being sent either up or down the hierarchy.

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Question 7
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In 1995,Dell Computer changed its organization structure from a market structure to a functional structure and created separate divisions.This change would better serve its different groups of customers.

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Question 8
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When companies become too tall and the chain of command too long,strategic managers tend to lose control over the hierarchy and,subsequently,their strategies.

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Question 9
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Research finds that centralization of authority is never advantageous,not even in time of crisis.

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Question 10
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The need for integrating mechanisms is greater when a company's structure is more complex.

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Question 11
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Control systems can help managers evaluate how efficiently they are producing goods and services.

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Question 12
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Controls at each level should provide the basis on which managers at the levels below design their control systems.

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Question 13
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Information technology (IT)is playing an increasing role in strategy formulation.However,strategy implementation is not affected by IT in general.

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Question 14
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The reward system affects motivation,however,the type of organizational culture that develops in a company is primarily affected by the founder's values and not the reward system.

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Question 15
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Control through culture is so powerful because once values have been internalized,individuals follow them without thinking about them.

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Question 16
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Organizational structure contributes to the strategy formulation by providing the framework of tasks and roles that reduces transaction difficulties and allows employees to think and behave in ways that allow a company to achieve superior performance.

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Question 17
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Building capabilities in organizational design that allow a company to develop a competitive advantage starts at the functional level.

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Question 18
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Effective strategy implementation is very important for cost leaders,but it is of less importance to differentiators.

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Question 19
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For each function,a cost leader adopts output controls that allow it to monitor and evaluate functional performance closely.

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Question 20
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A product structure requires that support activities from a company's value chain be decentralized so that independent specialists in support activities exist within each product group.

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