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Mana Stratquiz Note

Question 1.Which of the following is an advantage of a divisional type of organizational structure?


  • A.Efficient use of managerial and technical talent.
  • B.
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    An enhanced ability to respond quickly to changes in the external environment.

  • C. High degree of emphasis on long term performance.
  • D. Uniformity in image and quality across divisions.

Question 2. A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to a(n)


  • A. divisional structure.
  • B. functional structure.
  • C. matrix structure.
  • D. international structure.

Question 3. 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

Question 4. Nike is a company that makes use of the concept of “product expatriates. ” Product expatriates are


  • A. managers from the home country sent abroad to oversee the marketing of a company’s products.
  • B. managers from suppliers who come to work at a company’s headquarters.
  • C. managers of the company sent abroad to work at the plants of its suppliers.
  • D. local nationals hired by the company in the countries from which it sources products.

Question 5. All of the following are disadvantages of a divisional type of organizational structure except


  • A. it can be very expensive compared to a functional organizational structure.
  • B. there is a strong tendency for divisions to focus on short-term performance.
  • C. there can be dysfunctional competition among divisions.
  • D. there is separation of strategic and operating control.

Question 6. Lockheed Martin uses a coalition of three entities–its own company, academia, and government–to achieve its goals. This is an example of a


  • A. matrix organization.
  • B. modular organization.
  • C. virtual organization.
  • D. divisional structure.

Question 7. Strategic business unit (SBU) and holding company structures result from extensive


  • A. diversification.
  • B. vertical integration.
  • C. international expansion.
  • D. organizational flattening.

Question 8. 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.

Question 9. The relationship between strategy and structure can be best described as


  • A. strategy determines structure but structure does not determine strategy.
  • B. structure determines strategy but strategy does not determine structure.
  • C. strategy and structure influence each other.
  • D. a third force determines both strategy and structure.

Question 10. A matrix organizational structure is characterized by


  • A. dual reporting relationships.
  • B. a combination of functional and divisional organization structures.
  • C. efficient use of resources and expertise.
  • D. all of the above.

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