Question 1

To implement a related-linked strategy, a firm usually needs an SBU structure.

Accepted Answer

An SBU (Strategic Business Unit) structure is often used to implement a related-linked strategy. This structure involves creating semi-autonomous units within the larger organization, each with its own strategy and objectives that are aligned with the overall company strategy. This allows for a more focused approach to implementation and allows for greater flexibility and responsiveness to changes in the market.

Question 2

The integrated cost-leadership/differentiation strategy needs structural features that are partially centralized and partially decentralized, jobs that are semi-specialized, and rules and procedures that call for some formal and some informal job behavior.

Accepted Answer

The integrated cost-leadership/differentiation strategy requires a mix of centralized and decentralized decision-making. Jobs should be semi-specialized to allow for flexibility in responding to customer needs, and a mix of formal and informal rules and procedures is necessary to foster creativity and innovation while maintaining efficiency.

Question 3

In the Chapter 11 Strategic Focus, Cisco went too far in trying to achieve cooperation among its various units resulting in managers attending several meetings and an overall slowed decision making process.

Accepted Answer

The chapter states that Cisco went too far in trying to achieve cooperation among its various units, resulting in managers attending several meetings and an overall slowed decision making process.

Question 4

According to the Chapter 11 Strategic Focus, Cisco implemented the related constrained strategy using the SBU form of the multidivisional structure.

Accepted Answer

The answer of According to the Chapter 11 Strategic Focus,...

Question 5

To implement a related constrained strategy, firms should use the cooperative form of the multidivisional structure.

Accepted Answer

The cooperative form of the multidivisional structure allows for sharing of resources and coordination among divisions, which is important for implementing a related constrained strategy. This form involves a high degree of integration among divisions and a focus on collaboration rather than competition.

Question 6

The functional structure is most appropriate for large firms with very high levels of diversification.

Accepted Answer

The functional structure is most appropriate for firms with low to moderate levels of diversification, while the multidivisional structure is best suited for large firms with high levels of diversification.

Question 7

The matrix organization has a dual structure combining functional specialization and business product or project specialization.

Accepted Answer

The matrix organization structure combines functional specialization (departments such as finance, marketing, and human resources) and business product or project specialization (teams created for specific products or projects).

Question 8

Centralized and formalized procedures allow for greater flexibility, an important factor for firms using a cost leadership strategy.

Accepted Answer

Centralized and formalized procedures often result in less flexibility as there are rigid processes and protocols in place. This may not be advantageous for firms using a cost leadership strategy as they may need to quickly adjust and adapt to changes in market conditions or customer demands.

Question 9

Firms using the differentiation strategy need to respond quickly to environmental opportunities and threats. The structural features that are best for these requirements are centralization, specialization, and many rules and procedures.

Accepted Answer

The answer of Firms using the differentiation strategy need to...

Question 10

The divisions within each SBU are related in terms of shared products or markets, but the divisions of one SBU have little in common with the divisions of the other SBUs.

Accepted Answer

SBUs (Strategic Business Units) are part of a larger organization but operate as independent businesses, with their own products, markets, and strategies. While the divisions within each SBU are related, the SBUs themselves may have different focuses and little in common with each other.

Question 11

Firms switch from a functional structure to a multidivisional structure because greater levels of environmental complexity and uncertainty make it necessary for the firm to develop cooperative relationships with its stakeholders.

Accepted Answer

The answer of Firms switch from a functional structure to...

Question 12

Specialization refers to the extent to which authority for decision-making is retained at higher managerial levels.

Accepted Answer

Specialization refers to dividing tasks and responsibilities among different individuals or departments based on their skills and expertise, rather than retaining decision-making authority at higher managerial levels.

Question 13

An SBU structure consists of at least three levels: the top level, the corporate headquarters; the next level, the strategic business units (SBUs); and the final level, SBU divisions.

Accepted Answer

This statement correctly describes the three levels of an SBU structure.

Question 14

There are three variations of the multidivisional structure.

Accepted Answer

There are three variations of the multidivisional structure, which include the simple, diversified, and matrix structures.

Question 15

The cooperative form is an M-form structure in which horizontal integration is used to bring about interdivisional cooperation.

Accepted Answer

The statement is true. The cooperative form is a type of M-form structure where horizontal integration is used to foster cooperation between different divisions within the organization.

Question 16

The marketing and R&D functions are emphasized in the differentiation strategy's functional structure.

Accepted Answer

The differentiation strategy focuses on creating unique and high-quality products or services, which is achieved through innovation and research and development (R&D). Marketing is also emphasized as it helps to communicate the unique features and benefits of the differentiated product or service to the target market. Therefore, a functional structure that emphasizes these functions is ideal for implementing a differentiation strategy.

Question 17

A simple structure is an organizational form in which the owner-manager makes all major decisions directly and monitors all activities, while the staff merely serves as an extension of the manager's supervisory authority.

Accepted Answer

A simple structure is characterized by centralized decision-making authority and direct supervision of employees by the owner-manager. Staff members have little autonomy and serve mainly as the manager's subordinates.

Question 18

The competitive form of the M-form structure is characterized by complete independence among the form's divisions. Unlike the divisions included in the cooperative structure, divisions that are part of the competitive structure do not share common strengths.

Accepted Answer

The statement accurately describes the competitive form of the M-form structure.

Question 19

High levels of formalization of rules and procedures which often emanate from the centralized staff are a characteristic of the structure used to implement the cost leadership strategy.

Accepted Answer

High levels of formalization are a common aspect of a cost leadership strategy, as it emphasizes efficiency and consistency in operations. This often involves the establishment and enforcement of clear rules and procedures, which are typically centralized to ensure consistency across the organization.

Question 20

The three multidivisional structures that are used to implement a diversification strategy are the competitive form, the strategic business unit form, and the integrated form.

Accepted Answer

The answer of The three multidivisional structures that are used...

Quiz 11: Structure and Controls with Organizations