Question 1

When the drive of the entrepreneur is no longer enough to keep the Stage I company from floundering, this type of crisis is called
A) a crisis of autonomy.
B) a crisis of confidence.
C) a crisis of clarity.
D) a crisis of differentiation.
E) a crisis of leadership.

Accepted Answer

A crisis of leadership occurs when the drive and abilities of the entrepreneur are no longer sufficient to sustain the growth and stability of the Stage I company. It may also happen when the founder is unable to delegate tasks effectively or lacks the necessary leadership skills to manage the company's operations.

Question 2

An external block preventing a corporation from moving from one stage to another is
A) unfavorable economic conditions.
B) strategic myopia.
C) organizational inflexibility.
D) lack of ability.
E) lack of resources.

Accepted Answer

Unfavorable economic conditions are an external factor that can prevent a corporation from progressing, as they are outside the control of the organization and can significantly impact its operations and growth opportunities.

Question 3

Objectives that are personal and subjective and are typified by an entrepreneurial spirit describe what stage of corporate development?
A) Stage I company
B) Stage II company
C) Stage III company
D) Stage IV company
E) Stage V company

Accepted Answer

Personal and subjective objectives and an entrepreneurial spirit are characteristic of the early stages of corporate development, typically Stage I. This stage is also referred to as the development or startup stage, where the company is often run by the founder or a small team with a clear vision and mission for the business.

Question 4

In Stage III of a corporation, when various units of the company optimize their sales and profits without regard to the overall corporation, the organization may be experiencing a crisis of
A) leadership.
B) control.
C) autonomy.
D) decentralization.
E) empowerment.

Accepted Answer

When various units of a corporation optimize their sales and profits without regard to the overall corporation, there is a crisis of control. This means that the central leadership is not effectively controlling and guiding the different units, and as a result, they are operating independently and not in alignment with the goals of the overall corporation.

Question 5

Stage V in the organizational life cycle is the
A) birth stage.
B) growth stage.
C) maturity stage.
D) decline stage.
E) death stage.

Accepted Answer

The answer of Stage V in the organizational life cycle...

Question 6

A corporation run by a team of managers with functional specializations and which successfully operates in one industry is said to be a
A) Stage I company.
B) Stage II company.
C) Stage III company.
D) Stage IV company.
E) Stage V company.

Accepted Answer

A corporation with functional specializations and successful operation in one industry is typically a Stage II company. Stage I companies are typically led by an entrepreneurial founder, while Stage III, IV, and V companies are characterized by more complex structures and strategies, such as expansion into new markets or industries.

Question 7

During Stage II of the organizational life cycle, the structure most likely to be implemented is
A) entrepreneur-dominated.
B) functional management.
C) decentralization into profit or investment centers.
D) structural surgery.
E) dismemberment of structure.

Accepted Answer

During Stage II of the organizational life cycle, the emphasis shifts from the entrepreneurial stage to a greater focus on increasing efficiency and productivity. As such, functional management structures are most likely to be implemented at this stage in order to better organize and streamline operations.

Question 8

Which of the following is not true of a Stage I corporation?
A) It is typified by the entrepreneur.
B) The entrepreneur tends to make all the important decisions personally.
C) The Stage I corporation has little formal structure.
D) Planning tends to be long range and progressive.
E) The greatest strength of a Stage I corporation is its flexibility and dynamism.

Accepted Answer

Planning in Stage I corporations is typically short term and reactive rather than long term and progressive.

Question 9

A candidate for a fourth stage in corporate development is the
A) conglomerate structure.
B) functional structure.
C) divisional structure.
D) matrix structure.
E) hybrid structure.

Accepted Answer

The answer of A candidate for a fourth stage in...

Question 10

Stage III in the organizational life cycle is the
A) birth stage.
B) growth stage.
C) maturity stage.
D) decline stage.
E) death stage.

Accepted Answer

The maturity stage is characterized by an established organization that has stabilized its operations and has reached a level of profitability. The organization has already passed the growth stage and is no longer experiencing rapid expansion. This is also the stage where the organization may consider diversification or expansion into new markets to sustain their success.

Question 11

Research generally supports Chandler's proposition that structure follows strategy as well as the reverse proposition that structure influences strategy.

Accepted Answer

Research has shown that there is a dynamic relationship between a company's strategy and its structure, with each influencing and being influenced by the other. Chandler's original proposition that structure follows strategy has been supported by numerous studies, but subsequent research has also shown that structure can influence strategy as well. Therefore, both propositions are generally considered to be true.

Question 12

Any change in corporate strategy is very likely to require some sort of change in the way an organization is structured and in the kind of skills needed in particular positions.

Accepted Answer

This is because changes in corporate strategy often require a shift in priorities, focus, and goals, which in turn affect the roles and responsibilities of employees. For example, if a company decides to shift towards a more customer-centric approach, it may need to restructure its teams to focus on customer service and experience, and hire employees with the necessary skills to support this strategy. Conversely, if a company decides to shift towards cost-cutting and efficiency, it may need to streamline its operations and restructure its teams accordingly.

Question 13

The concept that structure follows strategy was developed by Alfred Chandler.

Accepted Answer

The concept is known as Chandler's dictum and was developed by Alfred Chandler.

Question 14

When the people managing diversified product lines in a functionally structured corporation need more decision-making freedom than top management is willing to delegate to them, there is a crisis of
A) autonomy.
B) confidence.
C) clarity.
D) differentiation.
E) leadership.

Accepted Answer

A crisis of autonomy refers to a situation where lower-level managers or departments require more decision-making power than top management is comfortable delegating to them. This often leads to conflicts between the two levels of management, as well as a lack of trust and confidence in the abilities of lower-level managers.

Question 15

Stage IV of a corporation could involve a pressure-cooker crisis.

Accepted Answer

Stage IV, also known as the "decentralized stage," can involve a crisis due to the lack of central control and coordination. This can lead to conflicts and challenges that require immediate attention and resolution, hence the comparison to a pressure-cooker.

Question 16

According to Chandler and others, which factors MUST be closely aligned to avoid the consequences of poor organizational performance?
A) management, workforce, and customers
B) operations, marketing, and finance
C) strategy, structure, and environment
D) rules, goals, and tasks
E) hierarchy, contacts, and integrators

Accepted Answer

Chandler and others argue that for an organization to avoid poor performance, its strategy, structure, and environment must be closely aligned. This means that the organization needs a clear strategy that is aligned with its structure (i.e., how departments and positions are organized) and its environment (i.e., the external factors that impact the organization). Without this alignment, the organization may struggle to achieve its goals and objectives.

Question 17

What is the additional phase in the organizational life cycle that may occur sometime during the maturity or decline stages?
A) pause phase
B) acquisition phase
C) recovery phase
D) temporal displacement phase
E) revival phase

Accepted Answer

The additional phase in the organizational life cycle that may occur sometime during the maturity or decline stages is the revival phase. This phase involves efforts to rejuvenate the organization, often through significant changes in strategy, structure, or operations, to return to a growth trajectory.

Question 18

Alfred Chandler, known for his study of large American corporations, concluded that
A) organic structure is best for firms in a changing environment.
B) mechanistic structure is best for firms in a changing environment.
C) structure follows strategy.
D) strategy follows structure.
E) strategic business units are the key to effective decentralization.

Accepted Answer

Alfred Chandler's famous argument is that structure follows strategy. He believed that a company's structure should be designed to accommodate and support its chosen strategy. Thus, the correct answer is C.

Question 19

In a Stage I company, if the entrepreneur falters, the company usually flounders. This is labeled by Greiner as a crisis of
A) autonomy.
B) confidence.
C) clarity.
D) differentiation.
E) leadership.

Accepted Answer

In the Stage I of company development, the success heavily relies on the skills and abilities of the entrepreneur, and if the entrepreneur falters, the company may not survive. This crisis of dependence on the entrepreneur is related to leadership. Therefore, the correct answer is E) Leadership.

Question 20

During Stage V of the organizational life cycle, the popular strategy is
A) concentration in a niche.
B) horizontal and vertical growth.
C) liquidation or bankruptcy.
D) concentric and conglomerate diversification.
E) profit strategy followed by retrenchment.

Accepted Answer

The answer of During Stage V of the organizational life...

Quiz 10: Strategy Implementation: Organizing and Structure

When the drive of the entrepreneur is no longer enough to keep the Stage I company from floundering, this type of crisis is called

An external block preventing a corporation from moving from one stage to another is

Objectives that are personal and subjective and are typified by an entrepreneurial spirit describe what stage of corporate development?

In Stage III of a corporation, when various units of the company optimize their sales and profits without regard to the overall corporation, the organization may be experiencing a crisis of

Stage V in the organizational life cycle is the

A corporation run by a team of managers with functional specializations and which successfully operates in one industry is said to be a

During Stage II of the organizational life cycle, the structure most likely to be implemented is

Which of the following is not true of a Stage I corporation?

A candidate for a fourth stage in corporate development is the

Stage III in the organizational life cycle is the

Research generally supports Chandler's proposition that structure follows strategy as well as the reverse proposition that structure influences strategy.

Any change in corporate strategy is very likely to require some sort of change in the way an organization is structured and in the kind of skills needed in particular positions.

The concept that structure follows strategy was developed by Alfred Chandler.

When the people managing diversified product lines in a functionally structured corporation need more decision-making freedom than top management is willing to delegate to them, there is a crisis of

Stage IV of a corporation could involve a pressure-cooker crisis.

According to Chandler and others, which factors MUST be closely aligned to avoid the consequences of poor organizational performance?

What is the additional phase in the organizational life cycle that may occur sometime during the maturity or decline stages?

Alfred Chandler, known for his study of large American corporations, concluded that

In a Stage I company, if the entrepreneur falters, the company usually flounders. This is labeled by Greiner as a crisis of

During Stage V of the organizational life cycle, the popular strategy is