MBA 705 FINAL EXAM PRACTICE AND REVIEW
MATERIAL WITH BUSINESS STRATEGY
APPLICATION QUESTIONS
◉ 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
In general, a functional structure tends to be most appropriate for
defenders and low-cost businesses.
◉ Corporate restructuring can be voluntary or involuntary.
TrueFalse
Answer: True
Progressive firms restructure voluntarily when it becomes clear that
a change is necessary, ideally before performance declines are
substantial. However, firms that do not manage for value may
MATERIAL WITH BUSINESS STRATEGY
APPLICATION QUESTIONS
◉ 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
In general, a functional structure tends to be most appropriate for
defenders and low-cost businesses.
◉ Corporate restructuring can be voluntary or involuntary.
TrueFalse
Answer: True
Progressive firms restructure voluntarily when it becomes clear that
a change is necessary, ideally before performance declines are
substantial. However, firms that do not manage for value may
