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Exam 10: Creating Effective Organizational Designs

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Question 1

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

A) True
B) False

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Question 2

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

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B) False

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Managing virtual structures requires new and difficult-to-acquire managerial skills.

Organizational structure refers to the formalized patterns of interactions that link company ___________,___________,and _____________.

One of the challenges of an ambidexterity in a firm is that managers must effectively exploit the value of their existing assets and competencies to assure alignment between how value is being created in the short term and how activities are integrated and properly coordinated.

The appropriateness of the type of organizational structure depends upon the ___________ and _______ of growth.

A barrier-free organization creates successful relationships between internal and external constituencies and sometimes with competitors as well.

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

The phrase that best defines a virtual organization is a(n)

Because the modular form of organizing involves outsourcing vital functions,modular firms often forfeit full strategic control.

Strategic business unit (SBU) structures are best suited for corporations pursuing _____________,whereas holding company structures are best suited for companies with ______________ strategies.

Which of the following statements about simple organizational structures is false?

According to the text,the factor that most distinguishes a superior team from a good team is talent.

In the global marketplace,managers must ensure consistency between only their corporate level strategies and the structure of their organization.

One of the challenges of an ambidexterity in a firm is that it must ensure that it remains proactive in expanding or modifying its product-market scope to anticipate and satisfy market conditions.

Logitech International is an example of a company that began as a global start-up,with headquarters in both California and Switzerland and operations in both countries.

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

A global start-up typically benefits from lower communication,coordination,and transportation costs.

One of the advantages of boundaryless structures is that they can be implemented without upgrading the skills of workers and managers.

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