Question 1

Bradley is a new employee in the sales department at a local Ford dealership.In his first few months on the job,he will be learning the organizational culture which is called organizational socialization.

Accepted Answer

A) True 
 B)False

Question 2

Control through organizational culture is so powerful because

Accepted Answer

A)   it reduces the costs of organizational control in a large company.
B)   self-control develops through the establishment of an internal system of organizational values.
C)   it results in maximum decentralization and the elimination of bureaucracy.
D)   it achieves increased performance through the alignment of organizational goals with societal expectations.
E)   it achieves external control through motivated coworkers.F) D) and E)
G) A) and E)

Question 3

Union Pacific,one of the largest freight carriers in the United States,has a centralized organizational structure.The size of the company with such a structure has a potential for creating costly problems.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False  True

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Within a firm,a function is made up of workers who

Accepted Answer

A)   perform the same types of tasks or hold similar positions.
B)   are paid the same amount of compensation.
C)   work at the same hierarchical level (for example, all middle managers) .
D)   have the same background and education.
E)   have the same job title (for example, all are vice presidents) .F) A) and D)
G) B) and D)

Question 7

A matrix structure would be the most appropriate for which of the following firms?

Accepted Answer

A)   A large multinational company with a distinctive competence in marketing
B)   A company operating in the maturity stage of the industry life cycle
C)   A medium-sized technological firm with an objective of fast product development time
D)   A company with a high level of vertical differentiation
E)   A company pursuing a cost-leadership strategyF) B) and E)
G) None of the above

Question 8

Which of the following is not one of the advantages of a geographic structure?

Accepted Answer

A)   Cost inefficiencies from issues of scope
B)   Responsiveness to the needs of regional customers
C)   Lower transportation costs
D)   More coordination and control than a functional structure
E)   Centralization of key activities and functions that allow leveraging skills across regionsF) A) and C)
G) A) and D)

Question 9

A hospital examines its processes closely and then changes them radically to become more patient-centered.Among the changes are new ways of doing tasks and new groupings of workers.This is an example of

Accepted Answer

A)   restructuring.
B)   reengineering.
C)   total quality management (TQM) .
D)   benchmarking.
E)   downsizing.F) None of the above
G) C) and D)

Question 10

Describe what is meant by the terms restructuring and reengineering,and discuss when and why they would be used.

Accepted Answer

While both can lead to improved performa...

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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.

Accepted Answer

A) True 
 B)False  False

Question 13

The specific collection of values,norms,beliefs,and attitudes shared by people and groups in a company is commonly referred to as

Accepted Answer

A)   organizational fit.
B)   organizational culture.
C)   organizational development.
D)   organizational positioning.
E)   all of these.F) A) and B)
G) A) and C)

Question 14

As a general principle,a company should always choose the hierarchal organization structure that has the

Accepted Answer

A)   most levels of authority.
B)   fewest levels of authority.
C)   greatest number of people.
D)   least number of people.
E)   none of theseF) A) and E)
G) C) and D)

Question 15

When decision-making responsibilities are decentralized,benefits include all of the following except

Accepted Answer

A)   increased motivation and accountability.
B)   lower bureaucratic costs from flattened hierarchy.
C)   reduced information overload.
D)   easier coordination.
E)   all of these are benefits of decentralization.F) A) and B)
G) C) and E)

Question 16

Matrix structures

Accepted Answer

A)   have many hierarchical levels.
B)   are appropriate for companies with many low-skilled workers.
C)   group activities vertically by function and horizontally by product or project.
D)   are appropriate for a firm pursuing a low-cost strategy.
E)   have many hierarchical levels and two forms of horizontal differentiation.F) B) and C)
G) A) and C)

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

A drawback of the functional structure is

Accepted Answer

A)   that each worker must report to more than one superior.
B)   the difficulty in communicating and coordinating across functions.
C)   too much decentralization of decision-making authority.
D)   its lack of flexibility.
E)   the need to downsize before implementing this structure.F) B) and D)
G) A) and C)

Question 19

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

Accepted Answer

A) True 
 B)False  False

Question 20

Restructuring is

Accepted Answer

A)   a rethinking and redesign of a firm's business processes.
B)   a radical readjustment of the organization's staffing and hierarchy.
C)   a philosophy that states that mistakes, defects, and poor-quality materials are not acceptable and should be eliminated.
D)   the shift that firms make from a functional to a more complex structure as the firm grows in complexity and size.
E)   employed when a firm needs help in improving its functional strategies.F) B) and E)
G) B) and D)

Exam 12: Implementing Strategy in Companies That Compete in a Single Industry

Bradley is a new employee in the sales department at a local Ford dealership.In his first few months on the job,he will be learning the organizational culture which is called organizational socialization.

Correct AnswerverifiedShow Answer

Control through organizational culture is so powerful because

Correct AnswerverifiedShow Answer

Union Pacific,one of the largest freight carriers in the United States,has a centralized organizational structure.The size of the company with such a structure has a potential for creating costly problems.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedTrue

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

Correct AnswerverifiedShow Answer

Within a firm,a function is made up of workers who

Correct AnswerverifiedShow Answer

A matrix structure would be the most appropriate for which of the following firms?

Correct AnswerverifiedShow Answer

Which of the following is not one of the advantages of a geographic structure?

Correct AnswerverifiedShow Answer

A hospital examines its processes closely and then changes them radically to become more patient-centered.Among the changes are new ways of doing tasks and new groupings of workers.This is an example of

Correct AnswerverifiedShow Answer

Describe what is meant by the terms restructuring and reengineering,and discuss when and why they would be used.

Correct AnswerverifiedWhile both can lead to improved performa...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedFalse

The specific collection of values,norms,beliefs,and attitudes shared by people and groups in a company is commonly referred to as

Correct AnswerverifiedShow Answer

As a general principle,a company should always choose the hierarchal organization structure that has the

Correct AnswerverifiedShow Answer

When decision-making responsibilities are decentralized,benefits include all of the following except

Correct AnswerverifiedShow Answer

Matrix structures

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A drawback of the functional structure is

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedFalse

Restructuring is

Correct AnswerverifiedShow Answer

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True

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While both can lead to improved performa...
View Answer

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False

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False

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