MBA 705 MINSUN KIM EXAM 3 PRACTICE AND
REVIEW MATERIAL WITH CORPORATE AND
BUSINESS STRATEGY CONCEPTS
◉ Multidivisional Structure:
Answer: A structural form with two or more divisions based on
products (a product divisional structure) or geography (a
geographic divisional structure); also called an M-form.
◉ Organizational Structure:
Answer: The formal means by which work is coordinated in an
organization.
◉ Product Divisional Structure:
Answer: A form of organizational structure whereby the
organization's activities are divided into self-contained entities, each
responsible for producing, distributing, and selling its own products.
◉ Strategy Implementation:2 Key Points
Answer: }Consider the plan for implementation before adopting a
strategic alternative.
}The greater the strategic change, the more complex the
implementation.
,◉ Profit Center:
Answer: A well-defined organizational unit headed by a manager
accountable for its revenues and expenditures.
◉ Simple Structure:
Answer: An organizational form whereby each employee often
performs multiple tasks, and the owner/ manager is involved in all
aspects of the business.
◉ Span of Control:
Answer: The number of employees reporting directly to a given
manager.
◉ Tall Organization:
Answer: n organization characterized by many hierarchical levels
and a narrow span of control.
◉ Vertical Growth:
Answer: An increase in the length of the organization's hierarchical
chain of command.
◉ Corporate restructuring seeks to improve efficiency and
performance through such actions as realigning divisions in the firm,
, reducing the amount of cash under the discretion of senior
executives, and acquiring or divesting business units.
TrueFalse
Answer: True
This is the definition of the term corporate restructuring
◉ A flat organization is composed of many hierarchical levels and
narrow spans of control.
TrueFalse
Answer: False
A tall organization is composed of many hierarchical levels and
narrow spans of control
◉ Horizontal structures have fewer managerial levels than vertical
structures
TrueFalse
Answer: True
This is the definition of the term horizontal structures.
◉ In general, a functional structure tends to be most appropriate for
differentiated businesses.
TrueFalse
Answer: False
REVIEW MATERIAL WITH CORPORATE AND
BUSINESS STRATEGY CONCEPTS
◉ Multidivisional Structure:
Answer: A structural form with two or more divisions based on
products (a product divisional structure) or geography (a
geographic divisional structure); also called an M-form.
◉ Organizational Structure:
Answer: The formal means by which work is coordinated in an
organization.
◉ Product Divisional Structure:
Answer: A form of organizational structure whereby the
organization's activities are divided into self-contained entities, each
responsible for producing, distributing, and selling its own products.
◉ Strategy Implementation:2 Key Points
Answer: }Consider the plan for implementation before adopting a
strategic alternative.
}The greater the strategic change, the more complex the
implementation.
,◉ Profit Center:
Answer: A well-defined organizational unit headed by a manager
accountable for its revenues and expenditures.
◉ Simple Structure:
Answer: An organizational form whereby each employee often
performs multiple tasks, and the owner/ manager is involved in all
aspects of the business.
◉ Span of Control:
Answer: The number of employees reporting directly to a given
manager.
◉ Tall Organization:
Answer: n organization characterized by many hierarchical levels
and a narrow span of control.
◉ Vertical Growth:
Answer: An increase in the length of the organization's hierarchical
chain of command.
◉ Corporate restructuring seeks to improve efficiency and
performance through such actions as realigning divisions in the firm,
, reducing the amount of cash under the discretion of senior
executives, and acquiring or divesting business units.
TrueFalse
Answer: True
This is the definition of the term corporate restructuring
◉ A flat organization is composed of many hierarchical levels and
narrow spans of control.
TrueFalse
Answer: False
A tall organization is composed of many hierarchical levels and
narrow spans of control
◉ Horizontal structures have fewer managerial levels than vertical
structures
TrueFalse
Answer: True
This is the definition of the term horizontal structures.
◉ In general, a functional structure tends to be most appropriate for
differentiated businesses.
TrueFalse
Answer: False
