Question 1

Which of the following is not descriptive of the matrix structure?
A) People from functional units are often assigned on a temporary basis to product units.
B) Although employees often work on one or more product units, they maintain only one direct supervisor.
C) The matrix structure is very useful when the external environment is very uncertain.
D) The matrix structure can produce conflicts revolving around duties, authority, and resource allocation.
E) The matrix structure was developed to combine the stability of functional structure with the flexibility of the product form.

Accepted Answer

In a matrix structure, employees often work on multiple product or project units, but they may have multiple direct supervisors from both functional and product areas. Therefore, option B is not descriptive of the matrix structure.

Question 2

The corporation's life cycle can be extended by managerial and product innovation.

Accepted Answer

Managerial innovation can involve finding more efficient ways to operate the business, improving organizational structure, and developing new management techniques. Product innovation involves creating new or improved products to meet changing market demands. Both types of innovation can help the corporation adapt to changes in the market and extend its life cycle.

Question 3

There are three distinct phases in the development of a matrix structure.Which is the first phase to occur usually when a new product line is being introduced?
A) temporary cross-functional task forces
B) true dual-authority structure
C) product/brand management
D) immature matrix
E) mature matrix

Accepted Answer

The first phase in the development of a matrix structure usually involves the creation of temporary cross-functional task forces. These teams are formed to address specific projects or tasks related to the introduction of a new product line. They are a temporary solution to address a particular need and are disbanded once the project is completed.

Question 4

The greatest strengths of a Stage I corporation are its flexibility and dynamism.

Accepted Answer

A Stage I corporation is in its early stages and has not yet become bureaucratic or set in its ways. This allows for quick decision making and the ability to adapt to changes in the market.

Question 5

Which structure simultaneously combines functional and product forms at the same level of the organization?
A) strategic business units
B) simple structure
C) network structure
D) divisional structure
E) matrix structure

Accepted Answer

The matrix structure combines functional and product forms at the same level of the organization by creating cross-functional teams that work on specific projects or initiatives. This allows for greater flexibility and collaboration while maintaining a balance between functional expertise and product focus.

Question 6

Which structure is described as a "non-structure" by its virtual elimination of in-house business functions?
A) strategic business units
B) functional structure
C) network structure
D) divisional structure
E) matrix structure

Accepted Answer

The network structure is described as a "non-structure" because it relies heavily on external relationships to accomplish business functions and activities, minimizing the need for in-house business functions. It connects various organizations, suppliers, and customers together through a series of contracts and alliances, allowing the company to operate as a "virtual organization." Therefore, option C is the correct answer.

Question 7

There are three distinct phases in the development of a matrix structure.Which phase occurs when both the functional and product structures become permanent in a true dual-authority structure?
A) temporary cross-functional task forces
B) true dual-authority structure
C) product/brand management
D) immature matrix
E) mature matrix

Accepted Answer

The mature matrix phase occurs when both the functional and product structures become permanent, establishing a true dual-authority structure. This phase is characterized by a well-developed framework where the dual lines of authority are fully functional and integrated.

Question 8

In Stage IV,the use of SBUs may result in a red tape crisis in which the corporation has grown too large and complex to be managed through formal programs,and rigid systems and procedures take precedence over problem solving.

Accepted Answer

As corporations grow larger and more complex, the use of SBUs may lead to a red tape crisis, where formal programs and procedures take precedence over problem-solving. This can result in a bureaucratic and inflexible working environment that stifles innovation and creativity.

Question 9

The second stage of the organizational life cycle is maturity.

Accepted Answer

The second stage of the organizational life cycle is typically considered to be the growth or survival stage, following the startup or birth stage, and preceding the maturity stage.

Question 10

Stage IV of a corporation could involve a pressure-cooker crisis in which employees in these collaborative organizations will eventually grow emotionally and physically exhausted from the intensity of teamwork and the heavy pressure for innovative solutions.

Accepted Answer

According to the article "The five stages of corporate growth," stage IV of a corporation can involve an intense pressure-cooker crisis due to the heavy emphasis on teamwork and innovation. This can lead to emotional and physical exhaustion for employees.

Question 11

Stage III (Divisional Structure) is the point when the entrepreneur is replaced by a team of managers who have functional specialization.

Accepted Answer

Stage III, also known as the Delegation Stage in organizational development, involves the entrepreneur delegating responsibilities to a management team, but it does not necessarily mean the entrepreneur is replaced. The focus is on decentralization and delegation, not replacement.

Question 12

The first stage of corporate development is the simple structure.

Accepted Answer

The first stage of corporate development is the simple structure.

Question 13

A crisis of control may develop in the Stage III divisional structure.

Accepted Answer

As the organization grows, there is a tendency to focus on divisional performance rather than overall corporate performance, which can lead to a lack of coordination and control across divisions. This can result in a crisis of control in the Stage III divisional structure.

Question 14

How can a corporation's life cycle be extended?

Accepted Answer

The answer of How can a corporation's life cycle be...

Question 15

What are the four stages of corporate development?

Accepted Answer

The answer of What are the four stages of corporate...

Question 16

Firms in the same industry seldom organize themselves in similar ways.

Accepted Answer

Firms in the same industry often organize themselves in similar ways due to industry standards, regulatory requirements, and competitive pressures, leading to similarities in organizational structure and practices.

Question 17

The greatest weakness of a Stage II corporation is that all its eggs are in one basket.

Accepted Answer

A Stage II corporation is characterized by having an established product or service that generates steady income and profits. However, the downside is that the business is often reliant on this one product or service for the majority of its revenue. This makes the company vulnerable to market changes or disruptions that could negatively impact its profitability. Therefore, having all their eggs in one basket is a significant weakness of a Stage II corporation.

Question 18

Which structure is often called a virtual organization?
A) strategic business units
B) functional structure
C) divisional structure
D) network structure
E) matrix structure

Accepted Answer

The network structure is often called a virtual organization because it is a group of independent firms or individuals that work together to complete a project or achieve a common goal, but do not have a formal organizational structure.

Question 19

Asking "What would Walt do" at Disney years after his death could present blocks to needed change.

Accepted Answer

Asking "What would Walt do" at Disney years after his death could lead to a reluctance to make necessary changes or innovations as people attempt to adhere to the founder's original vision or ideas. It is important to balance respect for the company's history with a willingness to adapt and evolve in response to changing markets and customer needs.

Question 20

Discuss Chandler's conclusion concerning strategy.

Accepted Answer

The answer of Discuss Chandler's conclusion concerning strategy....

Quiz 10: Strategy Implementation: Organizing and Structure

Which of the following is not descriptive of the matrix structure?

The corporation's life cycle can be extended by managerial and product innovation.

There are three distinct phases in the development of a matrix structure.Which is the first phase to occur usually when a new product line is being introduced?

The greatest strengths of a Stage I corporation are its flexibility and dynamism.

Which structure simultaneously combines functional and product forms at the same level of the organization?

Which structure is described as a "non-structure" by its virtual elimination of in-house business functions?

There are three distinct phases in the development of a matrix structure.Which phase occurs when both the functional and product structures become permanent in a true dual-authority structure?

In Stage IV,the use of SBUs may result in a red tape crisis in which the corporation has grown too large and complex to be managed through formal programs,and rigid systems and procedures take precedence over problem solving.

The second stage of the organizational life cycle is maturity.

Stage IV of a corporation could involve a pressure-cooker crisis in which employees in these collaborative organizations will eventually grow emotionally and physically exhausted from the intensity of teamwork and the heavy pressure for innovative solutions.

Stage III (Divisional Structure) is the point when the entrepreneur is replaced by a team of managers who have functional specialization.

The first stage of corporate development is the simple structure.

A crisis of control may develop in the Stage III divisional structure.

How can a corporation's life cycle be extended?

What are the four stages of corporate development?

Firms in the same industry seldom organize themselves in similar ways.

The greatest weakness of a Stage II corporation is that all its eggs are in one basket.

Which structure is often called a virtual organization?

Asking "What would Walt do" at Disney years after his death could present blocks to needed change.

Discuss Chandler's conclusion concerning strategy.