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Practice Quiz
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1
The strategy and structure of a firm do not need to change as the firm increases in size, diversifies into new product markets, and expands its geographic scope.
A)True
B)False
2
A simple structure often fosters creativity and individualism because there are many rules and regulations.
A)True
B)False
3
A small firm with a simple structure is highly informal and the coordination of tasks is accomplished by indirect supervision.
A)True
B)False
4
Global strategies require managers to view operations in different geographic areas to be managed for overall efficiency. An appropriate structure for efficiency management would be a worldwide product division structure.
A)True
B)False
5
Not all start-ups need to be global because it will involve higher communication, coordination and transportation costs that may not be reasonable for the start up to consider.
A)True
B)False
6
Jack Welch, former CEO of GE, believes that all internal and external organizational boundaries should become open and less permeable.
A)True
B)False
7
Different types of boundaries place limits on organizations in order to foster less interaction with outside influences and varying levels of permeability.
A)True
B)False
8
A strategy of _____________ requires a need to reorganize around product lines or geographic markets. This is likely to result in a divisional structure.
A)vertical diversification
B)related diversification
C)horizontal diversification
D)unrelated diversification
9
Ambidextrous organizational designs are useful for firms that wish to create modest, incremental innovations at the same time as dramatic, breakthrough innovation. This is accomplished by maintaining adaptability and alignment of values and coordination across organizational activities.
A)True
B)False
10
Deciding upon the most appropriate structure when a firm has international operations depends on ___________________.
A)the strategic objectives
B)The type of strategy
C)the mission
D)the degree of market diversity





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