Mana Stratquiz Note

Question 1. Which of the following is an advantage of a divisional type of organizational structure?
Answer

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.

Question 2. 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)
Answer

A. divisional structure.
B. functional structure.
C. matrix structure.
D. international structure.

Question 3. What is the name of the practice that many modular organizations use to grow?
Answer

A. operational effectiveness
B. outsourcing
C. strategic leveraging
D. strategic enabling

Question 4. Nike is a company that makes use of the concept of “product expatriates. ” Product expatriates are
Answer

A. managers from the home country sent abroad to oversee the marketing of a company’s products.
B. managers from suppliers who come to work at a company’s 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.

Question 5. All of the following are disadvantages of a divisional type of organizational structure except
Answer

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.

Question 6. Lockheed Martin uses a coalition of three entities–its own company, academia, and government–to achieve its goals. This is an example of a
Answer

A. matrix organization.
B. modular organization.
C. virtual organization.
D. divisional structure.

Question 7. Strategic business unit (SBU) and holding company structures result from extensive
Answer

A. diversification.
B. vertical integration.
C. international expansion.
D. organizational flattening.

Question 8. Which of the following is an advantage of a functional type of organizational structure?
Answer

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.

Question 9. The relationship between strategy and structure can be best described as
Answer

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.

Question 10. A matrix organizational structure is characterized by
Answer

A. dual reporting relationships.
B. a combination of functional and divisional organization structures.
C. efficient use of resources and expertise.
D. all of the above.