Overview

True / False

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

ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 329
LEARNING OBJECTIVES: STMA.HITT.13. – 1.4
NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff
& Rubin: Knowledge of general business functions | Bloom: Application

2. The Chapter 11 Opening Case about Borders shows that although strategy has an important influence on structure, once a particular structure is in place, that structure influences strategy.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 329
LEARNING OBJECTIVES: STMA.HITT.13. – 1.4
NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff
& Rubin: Knowledge of general business functions | Bloom: Application

3. An overriding lesson from the Chapter 11 Opening Case about Borders is that failure to properly structure an organization can contribute to poor strategic decisions and eventually bankruptcy.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 329
LEARNING OBJECTIVES: STMA.HITT.13. – 1.4
NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff
& Rubin: Knowledge of general business functions | Bloom: Application

4. Strategy has an important influence on structure, although once in place, structures influence strategy. a. True
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 332
LEARNING OBJECTIVES: STMA.HITT.13.Comprehension – Comprehension
NOTES: 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. a. True
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 332
LEARNING OBJECTIVES: STMA.HITT.13.Comprehension – Comprehension
NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff
& Rubin: Managing administration & control | Bloom: Comprehension

6. Organizational structures must be both stable and flexible. a. True
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 323
LEARNING OBJECTIVES: STMA.HITT.13.Comprehension – Comprehension
NOTES: 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.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 333
LEARNING OBJECTIVES: STMA.HITT.13.Comprehension – Comprehension
NOTES: 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.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Hard
REFERENCES: 334
LEARNING OBJECTIVES: STMA.HITT.13.Comprehension – Comprehension
NOTES: 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.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Medium
REFERENCES: 334
LEARNING OBJECTIVES: STMA.HITT.13.Comprehension – Comprehension
NOTES: 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.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 334
LEARNING OBJECTIVES: STMA.HITT.13.Comprehension – Comprehension
NOTES: AACSB: Business Knowledge & Analytical Skills | Management: Strategy | Dierdorff
& Rubin: Managing administration & control | Bloom: Comprehension