Strategic Management: Strategic Managment

Gregory G. Dess, University of Texas at Dallas
G.T. Lumpkin, University of Illinois--Chicago

Implementing Strategy: Creating Effective Organizational Designs

Multiple Choice Quiz


1	In the chapter-opening case, This End Up's efforts to integrate operations across multiple organizational boundaries was unsuccessful. The principal reason for this failure was:
		A)	a lack of support by top management.
		B)	the inability to establish close and effective working relationships among both its internal activities and external parties.
		C)	improper and unethical conduct by the firm's new CEO.
		D)	a downward spiral in market demand for This End Up styles of furniture.


2	As a rule, discussions of the relationship between strategy and structure strongly connote that
		A)	strategy follows structure.
		B)	strategy can effectively be formulated without considering structural elements.
		C)	structure typically has a very small influence on a firm's strategy.
		D)	structure follows strategy


3	Work is separated into units that specialize in production, marketing, research and development, and other management tasks at Sharp Corporation. This is an example of
		A)	simple structure.
		B)	divisional structure.
		C)	functional structure.
		D)	matrix structure.


4	An advantage of a divisional type of organizational structure is
		A)	an enhanced ability to respond quickly to changes in the external environment.
		B)	efficient use of managerial and technical talent.
		C)	high degree of emphasis on long term performance.
		D)	uniformity in image and quality across divisions.


5	Significant advantages of a holding company structure include
		A)	gaining synergistic benefits across businesses.
		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)	savings in personnel and overhead expenses associated with a small corporate office.


6	Multifaceted working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of what type of organizational structure?
		A)	divisional
		B)	holding company
		C)	matrix
		D)	functional


7	Oticon, a hearing aid manufacturer, removed offices and cubicles and gave employees freewheeling workstations that could be rearranged on a project-by-project basis. Oticon also purged its organizational chart. The purpose of these effort was to create a
		A)	modular structure.
		B)	barrier-free structure.
		C)	virtual structure.
		D)	all of the above


8	Which of the following is not considered a strategic risk of outsourcing?
		A)	loss of non-vital functions
		B)	loss of control over a supplier
		C)	loss of cross-functional skills
		D)	loss of critical skills

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