Chapter 13

Which of the following is true?
1. for a firm to be most effective, structure and controls need to be matched with strategy
2. the structure and controls in an organization are not affected by the organizational strategy
3. organizational structures do not have an impact on the work of management in an organization
4. having the right structure and controls is important for managers but don’t impact on strategy.
Which of the following best describes strategic controls?
1. they guide the use of strategy for the organization
2. they verify the firm is using appropriate strategies
3. they maintain control over the finances of the organization
4. they maintain control over production processes
In a simple structure, all major decisions are made by:
1. the staff
2. the staff or the owner/manager
3. the staff and the owner/manager
4. the owner/manager
A functional structure is organized around__________
1. different organizational areas
2. multiple operating divisions
3. the day to day operations
4. the most effective managers
Which of the following is not a variation of the multidivisional structure?
1. cooperative form
2. strategic business unit
3. functional form
4. competitive form
Which of the following is true of the work of individuals in a functional structure for implementing a cost leadership strategy?
1. they will be allowed to make autonomous decisions
2. their work will be self-managed
3. it will be controlled by highly formalized rules and procedures
4. there will be few formalized rules and procedures
Which of the following is NOT one of the levels of the strategic business unit form?
1. corporate headquarters
2. divisional headquarters
3. strategic business units
4. strategic business divisions
What is the relationship between the divisions of SBUs?
1. there is no relationship between divisions
2. they share products only
3. they are related in terms of shared products or markets
4. they are different only in their geographical location
In the competitive form of the multidivisional structure, divisions are:
1. dependent on one another
2. cost centres
3. profit centres
4. completely independent
Which of the following is true of a worldwide geographic area structure?
1. it emphasizes national interests and supports firm’s attempts to satisfy local differences
2. it emphasizes domestic interests and products are the same across borders
3. it recognizes that there is difference locally but that it cannot meet these differences
4. it is structures around markets that have some synergy with the domestic market of the organization

Chapter 13

Quiz