Question 1

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

Accepted Answer

Research has found support for both of Chandler's propositions - that structure follows strategy and that structure influences strategy. This suggests a reciprocal relationship between the two concepts.

Question 2

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

Chandler's famous phrase "structure follows strategy" means that a company's structure should align with its overall strategy in order to be effective. He believed that successful firms develop a clear strategy and then design their structure to support that strategy.

Question 3

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

When managers managing diversified product lines in a functionally structured corporation need more decision-making freedom than top management is willing to delegate, it leads to a crisis of autonomy or a lack of independence.

Question 4

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 tends to be short-term and reactive, rather than long-range and progressive.

Question 5

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

The crisis of leadership occurs in Stage I when the entrepreneur, who has been the main driving force behind the company, falters. In this stage, the company is highly dependent on the founder’s vision, creativity, and leadership, and if the founder is unable to provide these, the company may flounder. This crisis can manifest in different ways, such as the founder’s burnout, inability to delegate, or lack of strategic direction.

Question 6

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 7

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 8

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 9

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 10

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

Accepted Answer

Alfred Chandler, a business historian and Harvard Business School professor, developed the concept that structure follows strategy in his book, "Strategy and Structure: Chapters in the History of the American Industrial Enterprise."

Question 11

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

During Stage V, organizations often face decline, leading to strategies like liquidation or bankruptcy as they struggle to sustain operations.

Question 12

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

Stage V in the organizational life cycle is the death stage.

Question 13

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

Accepted Answer

Stage IV of a corporation, also known as the "crisis" stage, often involves a pressure-cooker crisis where the organization is forced to address major issues in order to survive. This can include financial difficulties, legal troubles, or other serious problems that threaten the company's viability.

Question 14

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 15

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

In Stage III, the corporation has decentralized its operations, and various units are allowed some autonomy in decision-making. However, if these units optimize their sales and profits without regard to the overall corporation, it indicates a lack of control over the organization. This can lead to a crisis where the corporation loses cohesion and faces difficulty in achieving its goals. Therefore, the best choice is B, control.

Question 16

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

The description matches the definition of a crisis of leadership, where the entrepreneur's drive is no longer enough to keep the company afloat. This crisis is characterized by the need for a new type of leader who can take the company to the next level.

Question 17

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 have discussed the importance of aligning strategy, structure, and environment to ensure organizational performance. These three factors are interdependent and must be closely aligned to avoid the consequences of poor organizational performance. Operations, marketing, and finance are important functional areas, but they are part of the broader strategy and structure of the organization. Management, workforce, and customers are important stakeholders, but they do not necessarily drive the alignment of the organization's strategy, structure, and environment. Rules, goals, tasks, hierarchy, contacts, and integrators are all important elements of organizational design, but they are not the factors that must be closely aligned to ensure organizational performance.

Question 18

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

Stage III in the organizational life cycle is the maturity stage, where the company experiences stability in terms of its market share and revenue growth. The focus shifts towards maintaining profitability and sustaining the business.

Question 19

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 a change in corporate strategy often involves different priorities, goals, and ways of operating. To achieve these new objectives, the company may need to reorganize its departments, functions, and teams. Additionally, it may need to hire or train employees with new skills, or even let go of those who are no longer aligned with the new direction. Thus, strategy and structure are closely intertwined and affect each other.

Question 20

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, organizations typically move towards a more structured form of management to handle increased complexity and demands. This often involves implementing functional management, where the organization is divided into departments or units based on specialized functions (e.g., marketing, finance, operations). This structure helps in organizing tasks more efficiently and is suitable for the growth phase that characterizes Stage II.

Quiz 10: Strategy Implementation: Organizing and Structure

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

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

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

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

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

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

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

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

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

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

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

Stage V in the organizational life cycle is the

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

A candidate for a fourth stage in corporate development is the

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

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

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

Stage III in the organizational life cycle is the

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.

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