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MGT498 Week 3 Quiz
1. In terms of the key features of organic organizations, which of the following firms is most likely to have an organic structure?
Icebox, a software development firm, which focuses on building innovative products
Underscore, a publishing company, where decision power is concentrated at the top
Merton Inc., a retail chain, which implements a rigid division of labor
Meridian Inc.., a clothing company, which aims to produce clothes at lower prices
2. A tightly coupled system of strategy and structure is prone to break apart when
input and output controls restrict information flow.
external and internal shifts put pressure on the system.
organizational culture becomes adaptive to change.
managers fail to recognize the need for organizational inertia.
3. Why is strategy implementation referred to as the “graveyard of strategy”?
The levers that managers have at their disposal during the implementation stage of a strategy are insufficient.
The successful implementation of a strategy requires key functions in the organization to compete with each other.
Managers often fail to implement a chosen strategy successfully despite extensive analysis of business environments.
It is a process that is independent of strategy formulation and is not necessary to ensure continued success.
4. Which of the following exemplifies the organic nature of W. L. Gore’s organizational structure?
It has no formal chain of command or standard operating procedures.
It avoids the use of virtual teams.
Its employees are not allowed to review each other during performance appraisals.
Its employees exhibit lower levels of entrepreneurial behaviors and innovation.
5. Which of the following is instrumental in creating a tightly coupled system of strategy and structure in an organization?
financial metrics that focus on long-term performance
limited input and output controls
dynamic organizational strategy and structure
managers that achieve a mastery of the firm’s current environment
6. Since W. L. Gore’s core competency is innovation, a(n) ________ would most likely be detrimental to its efforts.
integration strategy
organic structure
differentiation strategy
mechanistic structure
7. Why do firms’ strategies often follow their structures instead of the other way around?
External and internal pressures increase organizational inertia in an organization.
Strategy and structure are usually loosely coupled, providing them independent movement.
Managers are eager to confront the inertia that often exists in established organizations.
Managers tend to consider strategies that do not change existing organizational structures.
8. Which of the following is a shortcoming of the matrix structure?
It often leads to an overload for the founder and/or CEO when the firms experience growth.
It cannot effectively address a higher level of diversification, which often stems from further growth.
It frequently lacks effective communication channels across departments.
Its implementation is difficult due to significant organizational complexity and increased administrative costs.
9. Over time, 3M has relied on the results-only-work-environment (ROWE) framework and has morphed into a highly science-driven innovation company. At 3M, employees are encouraged to spend 15 percent of their time on projects of their own choosing. If any of these projects look promising, 3M provides financing through an internal venture-capital fund and other resources to further develop their commercial potential. This real-world scenario best illustrates
organizational strategy.
output controls.
organizational culture.
input controls.
10. Which of the following is a characteristic of a mechanistic organization?
low formalization
decentralization
flat hierarchy
high degree of specialization
11. Which of the following factors has led to a shift toward open innovation?
the increasing capability of internal suppliers
the exponential growth of venture capital
the decreasing availability of external options to commercialize ideas
the decreasing supply and mobility of skilled workers
12. _____ seek to define and direct employee behavior through a set of codified rules and standard procedures.
Input controls
Decentralization
Co-opetition
Output controls
13. In order to implement a cost-leadership strategy effectively, a _________ structure is preferred in a firm.
simple and M-form
simple and organic
functional and mechanistic
functional and organic
14. Sam Walton was responsible for Walmart’s cost-leadership strategy that continues to guide the company to this day. His influence on the organization’s culture is best described as
co-opetition.
groupthink.
founder imprinting.
differentiation.
15. Strategic business units (SBUs) in a company that uses an unrelated-diversification strategy are in direct competition with each other because
each SBU is evaluated as a standalone, profit-and-loss center.
decision making is concentrated at the top of the organization.
each SBU shares its core competencies with the other SBUs.
the firm follows a single business or dominant business strategy at the corporate level.
16. Why was Yahoo’s CEO, Jerry Yang, forced out in 2008?
He made too many changes to the organizational structure of Yahoo.
He focused on improving the user experience to drive online advertising revenues.
He failed to implement necessary strategic changes after Yahoo lost its competitive advantage.
He refused to accept the practice of obtaining consensus from his managers before making strategic changes.
17. One disadvantage of a functional structure is that it
does not allow the setting up of cross-functional teams.
does not facilitate rich and extensive communication between members of the same department.
frequently lacks effective communication channels across departments.
cannot be converted into an ambidextrous structure.
18. Which of the following is a benefit of a high degree of formalization in an organization?
increased creativity
fast decision making
excellent customer service
consistent results
19. Which of the following best indicates that W. L. Gore & Associates has an informal and decentralized organizational structure?
It prevents its associates from becoming shareholders in the company.
It is consistently ranked among the top 100 of the best companies to work for.
It prefers face-to-face communication over e-mail and does not have an organizational chart.
It determines its employees’ levels of compensation on the basis of their boss’s evaluations.
20. Inkwell is a pen manufacturing company based in Massachusetts. Inkwell’s main area of operation is Massachusetts, and it has a stronghold over the market. It employs a robust production system, which helps it sell pens at exceptionally low prices. In this scenario, which of the following strategies is Inkwell most likely using?
differentiation strategy
integration strategy
ambidextrous strategy
cost-leadership strategy