The Management Of Strategy Concepts International Edition 10th Edition By R. Duane – Test Bank

Overview

Chapter 11
Structure and Controls with Organizations

True/false

1. As shown in the Chapter Opening 11 Case, Borders was able to structure its operations in ways that allowed it to manage the different businesses in each country and market effectively.

ANS: F
PTS: 1 DIF: Easy OBJ: Application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Knowledge of general business functions | Bloom: Application

2. In the Chapter 10 Opening Case about Borders shows that although strategy has a more important influence on structure, once a particular structure is in place, that structure influences strategy.

ANS: T
PTS: 1 DIF: Medium OBJ: Application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Knowledge of general business functions | Bloom: Application

3. An overriding lesson from the Chapter 10 Opening Case about Borders is that failure to properly structure an organization can contribute to poor strategic decisions and eventually bankruptcy.

ANS: T
PTS: 1 DIF: Easy OBJ: Application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Knowledge of general business functions | Bloom: Application

4. Strategy has a more important influence on strategy, although once in place, structures influence strategy.

ANS: T
PTS: 1 DIF: Medium OBJ: Comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Knowledge of general business functions | Bloom: Comprehension

5. Over time, large and complex organizations must customize their structure to fit their unique strategic needs.

ANS: T
PTS: 1 DIF: Easy OBJ: Comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing administration & control | Bloom: Comprehension

6. Organizational structures must be both stable and flexible.

ANS: T
PTS: 1 DIF: Medium OBJ: Comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing administration & control | Bloom: Comprehension

7. Organizational inertia often prompts top management to initiate structural change when organizational performance levels drop.

ANS: F
PTS: 1 DIF: Easy OBJ: Comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing administration & control | Bloom: Comprehension

8. With a related diversification corporate-level strategy, financial controls are used by corporate leaders to verify the sharing of appropriate strategic factors such as knowledge, markets, and technologies across businesses.

ANS: F
PTS: 1 DIF: Hard OBJ: Comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing administration & control | Bloom: Comprehension

9. Strategic controls are largely subjective criteria intended to verify that the firm is using appropriate strategies for the conditions in the external environment and the company’s competitive advantages.

ANS: T
PTS: 1 DIF: Medium OBJ: Comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing administration & control | Bloom: Comprehension

10. Organizational controls guide the use of strategy, indicate how to compare actual results with expected results, and suggest corrective actions to take when the difference is unacceptable.

ANS: T
PTS: 1 DIF: Easy OBJ: Comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing administration & control | Bloom: Comprehension

11. To properly execute strategic controls in firms using related diversification, the executives must have a deep understanding of each unit’s business-level strategy.

ANS: T
PTS: 1 DIF: Medium OBJ: Comprehension
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing administration & control | Bloom: Comprehension

12. RexMacDonald, Inc., uses a differentiation strategy that relies on cooperation, communication, and sharing of ideas among employees. In order to foster this behavior, RexMacDonald should emphasize strategic controls over financial controls.

ANS: T
PTS: 1 DIF: Medium OBJ: Application
NOT: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff & Rubin: Managing administration & control | Bloom: Application