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What is the name of the practice that many modular organizations use to grow?


A) operational effectiveness
B) outsourcing
C) strategic leveraging
D) strategic enabling

E) B) and C)
F) All of the above

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At Sharp Corporation,work is divided into units that specialize in production,marketing,research and development,and other management tasks.This is an example of a


A) simple structure.
B) functional structure.
C) divisional structure.
D) matrix structure.

E) B) and C)
F) None of the above

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Which of the following is a disadvantage of a functional type of organizational structure?


A) Differences in functional orientation may impede communication and coordination.
B) Use of managerial and technical talent is inefficient due to pooling of expertise in functional areas.
C) Decision making is centralized at the top of the organization.
D) Managers tend to be overly concerned with long-term strategies that minimize the importance of functional area strengths.

E) B) and D)
F) B) and C)

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A simple organizational structure may lead to problems such as unclear boundaries of authority and few career advancement options.

A) True
B) False

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Describe the attributes of a simple organizational structure.What are the advantages and disadvantages associated with using the simple organizational form?

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A simple organizational structure is cha...

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The strategic business unit (SBU)structure is also referred to as the conglomerate structure.

A) True
B) False

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The phrase that best defines a virtual organization is


A) a dot.com company.
B) a type of modular structure.
C) an organization that uses information technology to integrate different functions.
D) a continually evolving network of independent companies.

E) All of the above
F) None of the above

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Discuss how changes in today's workforce and the business environment have contributed to growth in the use of boundaryless organizational designs.

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There are primarily four types of bounda...

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If an international firm has a global strategy and a relatively low level of product diversity,the best choice for its organizational structure is


A) worldwide functional.
B) worldwide product division.
C) worldwide matrix.
D) international division.

E) A) and B)
F) A) and C)

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One disadvantage of a functional structure is that differences in functional orientation may impede organization coordination and communication.

A) True
B) False

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Discuss the uses and challenges of the barrier-free organizational structure.

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A barrier-free organization enables a fi...

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Generally speaking,discussions of the relationship between strategy and structure strongly imply that


A) strategy follows structure.
B) structure follows strategy.
C) strategy can effectively be formulated without considering structural elements.
D) structure typically has a very small influence on a firm's strategy.

E) B) and C)
F) A) and D)

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The purpose of boundaryless forms of organizing is to facilitate the widespread sharing of knowledge and information across internal and external boundaries of the organization.

A) True
B) False

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A divisional structure


A) is organized around functional area departments.
B) typically improves the performance of firms pursuing a strategy of vertical integration.
C) facilitates the development of general managers.
D) enhances centralized decision making.

E) All of the above
F) C) and D)

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Which of the following is an advantage of a functional type of organizational structure?


A) Decentralized decision-making enhances an organization-wide perspective across functions.
B) It facilitates the development of general management talent.
C) Pooling of specialists enhances coordination and control.
D) It is easy to establish uniform performance standards.

E) A) and B)
F) C) and D)

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Outsourcing relieves companies of the requirement to maintain skill levels needed to manufacture essential components.

A) True
B) False

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One of the risks of outsourcing is a loss of cross-functional skills.

A) True
B) False

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The strategic business unit (SBU)and holding company structure are variants of the functional form of structure.

A) True
B) False

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The matrix structure attempts to combine the advantages of the functional and product-oriented structure.

A) True
B) False

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Boundaryless structures replace traditional structures.

A) True
B) False

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