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To effectively implement a differentiation strategy,managers rely on a functional structure that resembles an organization that is highly


A) formalized.
B) specialized.
C) organic.
D) mechanistic.

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

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Successful _____ requires managers to design and shape structure,culture,and control mechanisms.


A) strategy innovation
B) strategy formulation
C) strategy implementation
D) strategy diversification

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

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When a firm diversifies into different product lines and geographies,a _____ structure is preferred.


A) simple
B) functional
C) multidivisional
D) network

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

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What element of organizational structure deals with positioned-based reporting lines?


A) specialization
B) formalization
C) centralization
D) hierarchy

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

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Which of the following statements is true about the use of functional structures with various business strategies?


A) The goal of a differentiation strategy is to create competitive parity.
B) The goal of a cost-leadership strategy is to create competitive parity.
C) The goal of a differentiation strategy is to create a competitive advantage by controlling costs.
D) A cost-leadership strategy can be effectively implemented with the help of an organic structure.

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

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Grey Designs Inc.,a graphic design firm,has offices in New York,Texas,California,New Mexico,and New Jersey.Each of these offices is headed by a president who reports directly to Charles Grey,the CEO.The heads of the centralized HR,Finance,and Marketing teams report to Charles Grey as well.Managers in the various offices also report to the CEO directly.Based on this information,which of the following statements is most likely to be true?


A) Charles Grey has a wide span of control.
B) Grey Designs Inc. has a tall hierarchical structure.
C) Charles Grey is underworked.
D) Grey Designs Inc. is a mechanistic organization.

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

Correct Answer

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Organizational design is


A) the process of creating, implementing, and modifying the structure of an organization.
B) primarily focused on replacing a firm's competitive advantage with competitive parity.
C) a process that always functions independently of strategy formulation.
D) primarily focused on formulating effective strategies, not implementing them.

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

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Frappe operates as a strategic business unit (SBU) under More or Less Inc.,a home-furnishings manufacturer.From this information,it may be reasonable to infer that


A) Frappe does not have its own profit and loss responsibility.
B) Frappe is dependent on the other SBUs in More or Less Inc.
C) Frappe has a matrix organizational structure.
D) Frappe is led by its own CEO (or equivalent general manager) .

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

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Black Mouse Inc.,a web development firm,is headed by Rob Dennis,the CEO.Each functional department of the company-marketing,finance,and HR-has a president who reports to the CEO directly.Each department has various managers who manage teams.The managers report to the presidents,and the team leads report to the managers.Finally,the employees at the lowest level report to their team leads.It is rare for a lower-level employee to interact with the CEO of the company.In this scenario,Black Mouse Inc.can be said to have a(n)


A) organic organizational structure.
B) decentralized organizational structure.
C) tall hierarchical structure.
D) flat hierarchical structure.

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

Correct Answer

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_____ describes the collectively shared values and norms of an organization's members.


A) Competitive advantage
B) Organizational structure
C) Organizational culture
D) Core competency

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

Correct Answer

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