Which of the following is NOT considered an international organizational structure quizlet

Recommended textbook solutions

Operations Management: Sustainability and Supply Chain Management

12th EditionBarry Render, Chuck Munson, Jay Heizer

1,698 solutions

Information Technology Project Management: Providing Measurable Organizational Value

5th EditionJack T. Marchewka

346 solutions

Human Resource Management

15th EditionJohn David Jackson, Patricia Meglich, Robert Mathis, Sean Valentine

249 solutions

Operations Management: Sustainability and Supply Chain Management

12th EditionBarry Render, Chuck Munson, Jay Heizer

1,698 solutions

organizational structure refers to

the formalized interactions linking:

1) tasks

2) technology

3) people

structure provides a balance between

1. the need to divide tasks into meaningful groupings

2. the need to integrate these groupings to maximize efficiency and effectiveness

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

FALSE

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

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

FALSE

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

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.

FALSE

Deciding upon the most appropriate structure when a firm has international operations depends on three primary factors: the extent of international expansion, type of strategy (global, multidomestic, or transnational), and the degree of product diversity.

The most appropriate type of organizational structure to select is dependent upon the product or service the company provides.

FALSE

embark on strategies designed to increase the overall scope of operations and enable them to enter new product-market domains

Such growth places additional pressure on executives to control and coordinate the firm's increasing size and diversity.

The most appropriate type of structure depends on NATURE AND MAGNITUDE FOR GROWTH.

When evaluating structure and organizational design, managers must consider the appropriateness of the type of organizational structure and they need to assess the mechanisms, processes, and techniques that will be most helpful in enforcing internal and external boundaries.

FALSE

in enhancing the permeability of both internal and external boundaries.

A new firm with a simple structure typically increases its sales revenue and volume of outputs over time. It may also engage in some vertical integration to secure sources of supply (backward integration) as well as channels of distribution (forward integration).

TRUE

A new, simple-structure firm concentrates efforts only on increasing efficiency without regard to its actual products.

FALSE

both increasing efficiency and enhancing its operations and products

A firm that chooses to move into unrelated product areas, by acquiring existing businesses, is likely to find that the strategy requires relatively little integration across businesses and sharing of resources and therefore is would consider a using holding company structure.

TRUE

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

FALSE

A simple structure may foster creativity and individualism since there are generally few rules and regulations.

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

TRUE

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

TRUE

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

TRUE

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

FALSE

Decision making in the firm will be centralized at the top of the organization.

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

TRUE

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

TRUE

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

TRUE

Since each division is evaluated in terms of financial measures such as return on investment and revenue growth, there is often an urge to focus on short-term performance.

emphasize making the numbers and minimize activities, such as advertising, maintenance, and capital investments, which would detract from short-term performance measures.

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.

FALSE

This is an advantage because divisional managers can focus their efforts on improving operations in the product markets for which they are responsible, and corporate officers can devote their time to overall strategic issues for the entire corporation

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

FALSE

One variation of the divisional form is the strategic business unit (SBU) structure.

With a SBU structure, divisions with similar products, markets, and/or technologies are grouped into homogeneous units to achieve some synergies.

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

FALSE

The lack of synergy means that this duplication at the functional level exits.

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

TRUE

A matrix organization is organized strictly along product lines.

FALSE

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

FALSE

facilitates the use of specialized personnel, equipment, and facilities. Instead of duplicating functions, as would be the case in a divisional structure based on products, the resources are shared.

The simple organizational structure involves highly decentralized decision making.

FALSE

highly centralized

Functional structures are generally found in organizations in which there is a single or unrelated product or service, high production volume, and some vertical integration.

FALSE

a single or closely related product or service, high production volume, and some vertical integration.

With a functional organizational structure, firms initially tend to expand the overall scope of their operations by penetrating existing markets, introducing similar products in additional markets, or decreasing the level of vertical integration.

FALSE

Initially, firms tend to expand the overall scope of their operations by penetrating existing markets, introducing similar products in additional markets, or increasing the level of vertical integration.

A major disadvantage of the functional organizational structure is that it often leads to silos in which departments view themselves as isolated, self-contained units with little need for interaction and coordination with other departments.

TRUE

One of the disadvantages of a divisional structure is that the divisions often perceive themselves as being in competition with each other and are therefore unwilling to share information to help other divisions improve. ArcelorMittal found a solution which twins an efficient steel mill with a struggling one.

TRUE

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

TRUE

view operations in different geographic areas to be managed for overall efficiency

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

FALSE

Being global necessarily involves higher communication, coordination, and transportation costs.

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

FALSE

some firms are born global from the very beginning and many start-ups are global in their activities

A global start-up has been defined as a business organization that, from inception, seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries.

Right from the beginning, it uses inputs from around the world and sells its products and services to customers around the world.

The structure of a firm typically has almost no effect on its strategy.

FALSE

The structure of an organization can have an important influence on how it competes in the marketplace. It can also strongly influence the strategy, day-to-day operations, and performance of a firm.

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

FALSE

In the global marketplace, managers must ensure consistency between their strategies (at the business, corporate, and international levels) and the structure of their organization.

Three major contingencies that influence the chosen structure of a company are: the type of strategy that drives its foreign operations, its product diversity, and the extent to which the company is dependent on foreign sales.

TRUE

Multidomestic strategies are driven by political and cultural imperatives requiring managers within each country to respond to local conditions.

TRUE

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.

TRUE

According to the text, boundaryless organizational structures are most effective when they replace rather than complement traditional organizational structures.

FALSE

Boundaryless organizational designs need not replace the traditional forms of organizational structure, but they should complement them.

Jack Welch, former CEO of GE, believes that all internal and external organizational boundaries should vanish completely.

FALSE

boundaryless does not imply that all internal and external boundaries vanish completely, but that they become more open and permeable

Different types of boundaries place limits on organizations in order to foster high degrees of interaction with inside influences and varying levels of permeability.

FALSE

with outside influences and varying levels of permeability

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

FALSE

A barrier-free organization enables a firm to bridge real differences in culture, function, and goals to find common ground that facilitates information sharing and other forms of cooperative behavior.

Eliminating the multiple boundaries that stifle productivity and innovation can enhance the potential of the entire organization.

An advantage of the barrier-free form of organizing is that internal cooperation and shared objectives are not required for it to work.

FALSE

For barrier-free organizations to work effectively, the level of trust and shared interests among all parts of the organization must be raised.

According to author Jeffrey Pfeffer, the advantages of teams are that employees control themselves, develop more creative solutions to problems, and permit the absorption of administrative tasks previously performed by specialists.

TRUE

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

FALSE

Vision, talent, and motivation can carry a team only so far.

Research has shown that super teams have higher levels of authenticity and caring, which allowed the full synergy of their individual talents, motivation, and vision.

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

Barrier-free organizations create successful relationships between both internal and external constituencies.

There is one additional constituency, competitors, with whom some organizations have benefited as they developed cooperative relationships.

Managers trained in rigid hierarchies do not find it difficult to transition to participative style required for effective teamwork.

FALSE

Often, managers trained in rigid hierarchies find it difficult to make the transition to the more democratic, participative style that teamwork requires.

Outsourcing in noncore functions of modular companies offers the advantage of decreased overall costs, but the company will be unable to focus on scarce resources in the areas where it holds competitive advantage.

FALSE

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

FALSE

Modular companies can achieve rapid growth because they do not require large investments in fixed assets.

TRUE

Outsourcing relieves companies of the requirement to maintain skill levels needed to manufacture essential components.

TRUE

One of the risks of outsourcing is a loss of cross-functional skills

TRUE

The virtual type of organization is a network of independent companies linked together to share skills, costs, and access to the markets of each other.

TRUE

the virtual organization is characterized by participating firms which pursue a collective strategy that enables them to cope with environmental uncertainty through cooperative efforts.

give up part of their control and accept interdependent destinies

managing virtual structures requires new and difficult-to-acquire managerial skills

TRUE

One of the negatives associated with the virtual organization is that it requires new and difficult-to-acquire managerial skills

Horizontal organization structures facilitate resource sharing and help to create a sense of common purpose.

TRUE

1. group similar or related business units under common management control

2. facilitate resource sharing and infrastructure sharing to EXPLOIT SYNERGIES among operating units

3. create a sense of common purpose

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

FALSE

As boundaryless structures are implemented, processes are reengineered, and organizations become increasingly dependent on sophisticated ITs, the skills of workers and managers alike must be upgraded to realize the full benefits

Procter & Gamble used communities of practice and human resource practices to help it achieve effective collaboration and integration across its different business units. This effort resulted in the successful development of the Crest Whitestrips product and is an example of good use of boundary-constrained organizational design.

FALSE

This is a good example of boundaryless organizational design in which effective collaboration and integration across the different business units of P & G resulted in the successful introduction of Crest Whitestrips.

Ambidextrous organizational designs are useful for firms that wish to create modest, incremental innovations at the same time as dramatic, breakthrough innovation. This is done by maintaining adaptability and alignment of values and coordination across organizational activities.

TRUE

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.

TRUE

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.

TRUE

Firms that place too strong a priority on either adaptability or alignment can expect short term gains only.

FALSE

If it places too much focus on adaptability, the firm will suffer low profitability in the short term.

If managers direct their efforts primarily at alignment, they will likely miss out on promising business opportunities

The O'Reilly and Tushman study on ambidextrous organizational designs found that there was no relationship between organizational structure, management practices employed and performance of both the breakthrough initiative and the traditional business.

FALSE

organizational structure and management practices employed had a direct and significant impact on the performance of both the breakthrough initiative and the traditional business.

The ambidextrous organizational designs were more effective than the other three designs on both dimensions: launching breakthrough products or services (i.e., adaptation) and improving the performance of the existing business (i.e., alignment).

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was the clear and compelling vision that the company senior management team communicated.

TRUE

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the structure enabled cross-fertilization while avoiding cross contamination in terms of sharing resources.

TRUE

The tight coordination and integration at the managerial levels enabled the newer units to share important resources from the traditional units, such as cash, talent, and expertise

One of the factors that explained the effectiveness of ambidextrous organizational designs in the O'Reilly and Tushman study was that the reward systems emphasized traditional unit goals.

FALSE

In successful ambidextrous organizations, according to the O'Reilly and Tushman study, the traditional and new units were shielded from each other so that they each focused attention and energy on its own operations, products, and customers.

TRUE

The established units were shielded from the distractions of launching new businesses, and they continued to focus all of their attention and energy on refining their operations, enhancing their products, and serving their customers.

In large organizations, a strategy of diversification requires a need to reorganize around ______________ or _____________.

A. product lines; geographic markets

B. product lines; competition

C. competitor lines; geographic markets

D. distribution lines; competitor markets

A. product lines; geographic markets

leads to a divisional structure

Which of the following is not a primary factor that a large firm with international operations should consider when choosing the appropriate structure for its organization?

A. the extent of international expansion

B. the type of strategy (global, multidomestic, or transnational)

C. the degree of product diversity

D. the degree of market diversity

D. the degree of market diversity

When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a ______________ structure.

A. divisional

B. functional

C. product-market

D. geographic

B. functional

When an organization with a functional structure diversifies into related product-markets, it generally

A. maintains its functional structure.

B. develops a divisional structure.

C. develops a matrix structure.

D. develops a worldwide product-division structure.

B. develops a divisional structure.

A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to a(n) ______________ structure.

A. divisional

B. functional

C. matrix

D. international

A. divisional

Successful organizations create ______ boundaries among the _____ activities as well as between the organization and its external customers, suppliers, and alliance partners.

A. impermeable; external

B. impermeable; internal

C. permeable; external

D. permeable; internal

D. permeable; internal

The two vital ongoing activities necessary for creating boundaryless organizations that managers today must concern themselves with are

A. financial returns and marketplace value.

B. market share and shareholder value.

C. type of structure, mechanisms, processes, and techniques for enhancing permeability.

D. product marketability and capital structure.

C. type of structure, mechanisms, processes, and techniques for enhancing permeability.

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

A. processes; mechanisms; techniques

B. tasks; mechanisms; techniques

C. processes; people; mechanisms

D. tasks; technologies; people

D. tasks; technologies; people

Structures help to ensure that ____________ are used effectively in accomplishing the mission of the organization.

A. strategies

B. relationships

C. resources

D. boundaries

C. resources

As illustrated in the opening case for Chapter 10, Boeing lost a lot of control and therefore incurred high operating costs for its build out of the 787 Dreamliner, because it ____________ design and manufacturing.

A. on-shored

B. internalized

C. outsourced

D. internationalized

C. outsourced

Which of the following activities is not identified structure?

A. managerial

B. executive

C. social responsibility

D. administrative

C. social responsibility

Organizations that make it to the growth stage design strategies to

A. reduce the tendency to increase operational scope.

B. leave exiting product-market domains.

C. increase the overall scope of operations.

D. reduce the commitment to new product-market domains.

C. increase the overall scope of operations.

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

A. nature; magnitude

B. definition; accessibility

C. accessibility; nature

D. nature; definition

A. nature; magnitude

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

A. Small firms with a narrow product-market scope will adopt such a structure.

B. Decision making authority is highly centralized.

C. There is little specialization of tasks.

D. Creativity and individualism are rare.

D. Creativity and individualism are rare.

A simple structure is characterized by

A. high specialization and low centralization.

B. low specialization and high centralization.

C. low formality and low creativity.

D. high formality and low centralization.

B. low specialization and high centralization.

Functional structures are usually found in organizations where there

A. is high volume production.

B. are unrelated product lines or service offerings.

C. is very little vertical integration.

D. there exists a strong need to decentralize decision making.

A. is high volume production.

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

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.

C. Pooling of specialists enhances coordination and control.

Which of the following is a disadvantage of a functional type of organizational structure?

A. Differences in functional orientation may impede communication and coordination.

B. Use of managerial and technical talent is inefficient due to pooling of expertise in functional areas.

C. Decision making is centralized at the top of the organization.

D. Managers tend to be overly concerned with long-term strategies that minimize the importance of functional area strengths.

A. Differences in functional orientation may impede communication and coordination.

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

A. efficient use of managerial and technical talent

B. an enhanced ability to respond quickly to changes in the external environment

C. high degree of emphasis on long-term performance

D. uniformity in image and quality across divisions

B. an enhanced ability to respond quickly to changes in the external environment

Which of the following is not a disadvantage of a divisional type of organizational structure?

A. It can be very expensive compared to a functional organizational structure.

B. There is a strong tendency for divisions to focus on short-term performance.

C. There can be dysfunctional competition among divisions.

D. There is separation of strategic and operating control.

D. There is separation of strategic and operating control.

An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?

A. functional structure

B. matrix structure

C. strategic business unit structure

D. holding company structure

C. strategic business unit structure

Which of the following is not an advantage of a strategic business unit (SBU) type of organizational structure?

A. Divisions with similar products, markets, or technologies are formed into homogeneous groups that can achieve synergies.

B. Divisional executives can respond quickly to market changes and opportunities.

C. Planning and control by the corporate office is more manageable.

D. The corporate office is more removed from the individual divisions.

D. The corporate office is more removed from the individual divisions.

With an SBU structure, divisions with similar products, markets, and/or technologies are grouped into homogeneous units to achieve synergies.

It makes planning and control by the corporate office more manageable.

With greater decentralization of authority, individual businesses can react more quickly to important changes in the environment than if all divisions had to report directly to the corporate office.

Important advantages of a holding company structure include

A. savings in personnel and overhead expenses associated with a small corporate office.

B. a high level of awareness at the corporate office of issues facing individual divisions.

C. a high level of control of division executives by executives at the corporate level.

D. gaining synergistic benefits across businesses.

A. savings in personnel and overhead expenses associated with a small corporate office.

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

A. product-market diversification; international

B. international diversification; product-market

C. related diversification; unrelated diversification

D. unrelated diversification; related diversification

C. related diversification; unrelated diversification

A matrix organizational structure is characterized by a combination of the ______________ and _____________.

A. functional structure; divisional structure

B. simple structure; functional structure

C. simple structure; divisional structure

D. holding company structure; divisional structure

A. functional structure; divisional structure

Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of which type of organizational structure?

A. divisional

B. matrix

C. holding company

D. functional

B. matrix

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

A. the layering of matrices

B. increased clarity in reporting relationships

C. increased responsiveness to the market

D. fewer power struggles and reduced conflict

C. increased responsiveness to the market

Generally speaking, discussions of the relationship between strategy and structure strongly imply that

A. strategy follows structure.

B. structure follows strategy.

C. strategy can effectively be formulated without considering structural elements.

D. structure typically has a very small influence on the strategy of a firm.

B. structure follows strategy.

If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is a(n) ______________ structure.

A. worldwide functional

B. worldwide product division

C. worldwide matrix

D. international division

C. worldwide matrix

If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is a(n) ______________ structure.

A. worldwide functional

B. worldwide product division

C. worldwide matrix

D. international division

B. worldwide product division

The relationship between strategy and structure can be best described as

A. strategy determines structure but structure does not determine strategy.

B. structure determines strategy but strategy does not determine structure.

C. strategy and structure influence each other.

D. a third force determines both strategy and structure.

C. strategy and structure influence each other.

A global start-up faces many management challenges including

A. communication and coordination across time zones.

B. pressure to perform internally all primary activities of the value chain.

C. assuring financing from home country only.

D. hiring only from home country.

A. communication and coordination across time zones.

As firms expand into foreign markets, they generally follow a pattern of change in structure that parallels the changes in their strategies. Which one of the following is not a major contingency that influences the structure they choose?

A. the type of strategy that is driving the company foreign operations

B. the research and development budget commitment

C. product diversity

D. the extent of the company dependence on foreign sales

B. the research and development budget commitment

Which one of the following is not a primary types of organizational structures used to manage the international operations of a company?

A. international division

B. worldwide matrix

C. geographic-area division

D. home country product division

D. home country product division

Which of the following is not a boundaryless organizational design?

A. virtual

B. modular

C. matrix

D. barrier-free

C. matrix

According to author, Jeffrey Pfeffer, which of the following is not an advantage of teams?

A. Teams interact so closely and therefore coordination and integration becomes unnecessary.

B. Teams substitute peer-based control for hierarchical control of work.

C. Teams often develop more creative solutions, because they share.

D. Teams permit the absorption of administrative tasks previously performed by specialists.

A. Teams interact so closely and therefore coordination and integration becomes unnecessary.

Organizations are increasingly using teams for many reasons. The difference between a good team and an outstanding team has been found to be

A. the combined technical skills of the members.

B. similarities in the way team members solve problems.

C. the way team members treat each other.

D. similarities in the age and experience of team member.

C. the way team members treat each other.

Which of the following is not a disadvantage of the barrier-free form of organization?

A. Lack of strong leadership can lead to coordination problems.

B. Democratic process can be time-consuming and difficult to manage.

C. Additional integration issues result in a slower response to market changes.

D. If trust among employees is not sufficiently high, organizational performance may suffer.

C. Additional integration issues result in a slower response to market changes.

A barrier-free structure enables a quicker response to market changes through a single-goal focus

1 )but lacks strong leadership and common vision, which can lead to coordination problems,

2) is time-consuming,

3) and has difficult-to-manage democratic processes,

4) sometimes lacks high levels of trust, which can impede performance.

What type of organization is defined as a central hub surrounded by networks of outside suppliers and specialists?

A. matrix organization

B. virtual organization

C. modular organization

D. barrier-free organization

C. modular organization

What is the name of the practice that many modular organization use to grow?

A. operational effectiveness

B. outsourcing

C. strategic leveraging

D. strategic enabling

B. outsourcing

What advantages does outsourcing not provide an organization?

A. accessing best in class goods and services

B. enabling rapid expansion with relatively low capital investment

C. focusing scarce resources on core competencies

D. improved buyer positioning

D. improved buyer positioning

Which of the following is not a strategic risk of outsourcing?

A. loss of critical skills

B. loss of cross-functional skills

C. loss of control over a supplier

D. loss of non-vital functions

D. loss of non-vital functions

Nike is a company that makes use of the concept of product expatriates. Product expatriates are

A. managers from the home country sent abroad to oversee the marketing of company products.

B. managers from suppliers who come to work at the company headquarters.

C. managers of the company sent abroad to work at the plants of its suppliers.

D. local nationals hired by the company in the countries from which it sources products.

C. managers of the company sent abroad to work at the plants of its suppliers.

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

A. dot.com company.

B. type of modular structure.

C. organization that uses information technology to integrate different functions.

D. continually evolving network of independent companies.

D. continually evolving network of independent companies.

A virtual organization may be most appropriate for firms

A. whose strategies require merging technologies.

B. whose product life cycles are just beginning.

C. who have no need to get to market quickly with new offers.

D. who have no need to meet competitive pressures.

A. whose strategies require merging technologies.

(e.g., computing and communication) or for firms exploiting shrinking product life cycles that require simultaneous entry into multiple geographical markets

effective for firms that desire to be quick to the market with a new product or service.

Virtual organizations ______________ whereas modular organizations _____________.

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 control

D. give up part of their strategic control; retain full strategic control

Which of the following is not a disadvantage of virtual structures?

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

A. difficulty in individual and organizational knowledge sharing

Virtual structures encourage individual and organizational knowledge sharing but make it harder to determine where one company ends and another begins, due to close interdependencies among players.

they may lead to potential loss of operational control among partners, or result in the loss of strategic control over emerging technology.

Coca-Cola, Ford Motor Company, H. J. Heinz, Nike, and Procter & Gamble are working together to develop plant-based plastics. Each company brings its own competency to the table. This collaboration is an example of a _____________ organization.

A. virtual

B. modular

C. horizontal

D. vertical

A. virtual

Organizations generally tend to become internally focused when faced with ______________ and _____________.

A. resource scarcity; declining performance

B. internal pressures; improving performance

C. resource abundance; declining performance

D. external pressures; resource abundance

A. resource scarcity; declining performance

If a firm outsources some parts of its value chain in order to reduce costs and increase quality and at the same time engages in multiple alliances to penetrate new markets, this is a example of a firm using a ______________ of organizational types.

A. combination

B. boundaryless consortium

C. bounded consortium

D. barrier free collection

A. combination

Designing an organization that simultaneously supports the requirements of the organization strategy, is consistent with the demands of the environment, and can be effectively implemented by the people around the manager is a tall order for any manager.

most effective solution is usually a combination of organizational types

outsource many parts of its value chain to reduce costs and increase quality, engage simultaneously in multiple alliances to take advantage of technological developments or penetrate new markets, and break down barriers within the organization to enhance flexibility.

Tools and techniques used to achieve effective coordination and integration of key activities in an organization include all of the following except

A. horizontal organization structures.

B. horizontal systems and processes.

C. horizontal diversification.

D. communications and information technologies.

C. horizontal diversification.

Some of the factors that must be considered include common culture and shared values, horizontal organizational structures, horizontal systems and processes, communications and information technologies, and human resource practices.

Effective ambidextrous organizations have alignment, which means that

A. employees are rewarded according to both profit and sales growth.

B. managers are focused on growth opportunities.

C. there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated.

D. divisional-level goals are consistent with overall corporate goals.

C. there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated.

alignment, which is a clear sense of how value is being created in the short-term and how activities are integrated and properly coordinated.

Effective ambidextrous organizations maintain adaptability, which means that

A. managers are focused on growth opportunities.

B. there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated.

C. divisional-goals are consistent with overall corporate goals.

D. managers must remain proactive in expanding and/or modifying their product-market scope to anticipate and satisfy market conditions.

D. managers must remain proactive in expanding and/or modifying their product-market scope to anticipate and satisfy market conditions.

According to the study by O'Reilly and Tushman, effective ambidextrous structures had all of the following attributes except

A. a clear and compelling vision.

B. managerial efforts were highly focused on revenue enhancement.

C. cross-fertilization among business units.

D. established units were shielded from the distractions of launching new businesses.

B. managerial efforts were highly focused on revenue enhancement.

In an ambidextrous firm, if too much focus is placed on _______ the firm with suffer low profitability in the short run.

A. alignment

B. adaptability

C. structure

D. opportunities

B. adaptability

In the ambidextrous firm, if managers direct their efforts primarily at _______, they are likely to miss out on promising business opportunities.

A. alignment

B. adaptability

C. structure

D. opportunities

A. alignment