Question 1

How can a corporation's life cycle be extended?

Accepted Answer

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

Question 2

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 on virtual elimination of in-house business functions and instead focuses on outsourcing and partnerships with other organizations to accomplish tasks.

Question 3

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 a corporation grows and develops into Stage IV, the use of SBUs may result in a red tape crisis, where formal programs and rigid procedures take precedence over problem-solving. This can lead to an overly bureaucratic system that is difficult to manage effectively.

Question 4

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 5

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

Accepted Answer

In a Stage III divisional structure, multiple divisions operate with autonomy but report to a central authority. This can lead to a crisis of control as the central authority struggles to maintain oversight and coordination among the divisions.

Question 6

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

Accepted Answer

Continuously relying on the thoughts and actions of a deceased person can prevent innovation and progress. It's important to honor Walt Disney's legacy but also allow for new ideas and changes to be made in the company.

Question 7

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

Stage IV of a corporation, according to the article, can involve a pressure-cooker crisis due to the high level of collaboration and innovative pressure, leading to exhaustion for employees.

Question 8

What are the four stages of corporate development?

Accepted Answer

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

Question 9

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 collection of independent firms or individuals who work together to achieve a common goal, but do not have a physical presence or formal hierarchy. This structure is commonly used in industries such as technology and consulting, where collaboration and flexibility are key.

Question 10

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 is usually the formation of temporary cross-functional task forces when a new product line is being introduced. These task forces allow for the necessary coordination between different functions and departments to develop and launch the new product successfully. Once the product becomes established, the organization may move into a true dual-authority structure or product/brand management structure, which are the next two phases in the matrix development process. The immature matrix phase occurs when conflicts arise between the two intersecting lines of authority, and the mature matrix phase is when the organization has successfully integrated the matrix structure into its operations.

Question 11

Discuss Chandler's conclusion concerning strategy.

Accepted Answer

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

Question 12

The first stage of corporate development is the simple structure.

Accepted Answer

The first stage of corporate development is often characterized by a simple, centralized organizational structure.

Question 13

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 14

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

Accepted Answer

A Stage II corporation is still in the early growth phase and often heavily relies on one product or service for its success. This makes it vulnerable to changes in the market or industry, and if that sole offering loses popularity or becomes irrelevant, the entire company can suffer. Therefore, all of its eggs are in one basket.

Question 15

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

Accepted Answer

Stage I corporations are generally small and new, which allows them to be more flexible and responsive to changes in the market. They also have fewer bureaucratic processes and can make decisions quickly, allowing for dynamism in adapting to challenges and opportunities.

Question 16

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 assigning employees to both functional and project teams. This allows for both centralized expertise and decentralized decision making, making it a popular choice for complex businesses.

Question 17

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

The matrix structure is known for having multiple supervisors, one from the functional unit and another from the product unit. Therefore, employees do not maintain only one direct supervisor in the matrix structure.

Question 18

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 19

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

Accepted Answer

By implementing managerial and product innovation, a corporation can adapt to changing market conditions and customer needs, allowing it to remain competitive and extend its life cycle.

Question 20

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.

Quiz 10: Strategy Implementation: Organizing and Structure