MQM 385 Actual Questions and Correct Answers
Q1
In order to implement a cost-leadership strategy effectively, a structure is preferred in a firm.
Answer: functional and mechanistic
Q2
input controls
Answer: seek to define and direct employee behavior through a set of explicit, codified
rules and standard operating procedures that are considered before the value creating
activities
Q3
One disadvantage of a functional structure is that it
Answer: frequently lacks effective communication channels across departments
Q4
Which of the following best indicates that W. L. Gore & Associates has an informal and
decentralized organizational structure?
Answer: it prefers face to face communication over email and does not have an
organizational chart
Q5
Which of the following is a benefit of a high degree of formalization in an organization?
Answer: consistent results
Q6
Why was Yahoo's CEO, Jerry Yang, forced out in 2008?
Answer: he failed to implement necessary strategic changes after yahoo lost its
competitive advantage
Q7
A tightly coupled system of strategy and structure is prone to break apart when
Answer: external and internal shifts put pressure on the system
, Q8
Over time, 3M has relied on the results-only-work-environment (ROWE) framework and has
morphed into a highly science-driven innovation company. At 3M, employees are encouraged to
spend 15 percent of their time on projects of their own choosing. If any of these projects look
promising, 3M provides financing through an internal venture-capital fund and other resources
to further develop their commercial potential. This real-world scenario best illustrates
Answer: output controls
Q9
Strategic business units (SBUs) in a company that uses an unrelated-diversification strategy are
in direct competition with each other because
Answer: each SBU is evaluated as a standalone, profit and loss center
Q10
Which of the following is instrumental in creating a tightly coupled system of strategy and
structure in an organization?
Answer: managers that achieve a mastery of the firm's current environment
Q11
holacracy
Answer: an organizational structure in which decision making authority is distributed
through loose collections or circles of self organizing teams
Q12
organizational design
Answer: the process of creating, implementing, monitoring, and modifying the
structure, processes, and procedures of an organization
Q13
inertia
Answer: a firm's resistance to change the status quo, which can set the stage for the
firm's subsequent failure
Q1
In order to implement a cost-leadership strategy effectively, a structure is preferred in a firm.
Answer: functional and mechanistic
Q2
input controls
Answer: seek to define and direct employee behavior through a set of explicit, codified
rules and standard operating procedures that are considered before the value creating
activities
Q3
One disadvantage of a functional structure is that it
Answer: frequently lacks effective communication channels across departments
Q4
Which of the following best indicates that W. L. Gore & Associates has an informal and
decentralized organizational structure?
Answer: it prefers face to face communication over email and does not have an
organizational chart
Q5
Which of the following is a benefit of a high degree of formalization in an organization?
Answer: consistent results
Q6
Why was Yahoo's CEO, Jerry Yang, forced out in 2008?
Answer: he failed to implement necessary strategic changes after yahoo lost its
competitive advantage
Q7
A tightly coupled system of strategy and structure is prone to break apart when
Answer: external and internal shifts put pressure on the system
, Q8
Over time, 3M has relied on the results-only-work-environment (ROWE) framework and has
morphed into a highly science-driven innovation company. At 3M, employees are encouraged to
spend 15 percent of their time on projects of their own choosing. If any of these projects look
promising, 3M provides financing through an internal venture-capital fund and other resources
to further develop their commercial potential. This real-world scenario best illustrates
Answer: output controls
Q9
Strategic business units (SBUs) in a company that uses an unrelated-diversification strategy are
in direct competition with each other because
Answer: each SBU is evaluated as a standalone, profit and loss center
Q10
Which of the following is instrumental in creating a tightly coupled system of strategy and
structure in an organization?
Answer: managers that achieve a mastery of the firm's current environment
Q11
holacracy
Answer: an organizational structure in which decision making authority is distributed
through loose collections or circles of self organizing teams
Q12
organizational design
Answer: the process of creating, implementing, monitoring, and modifying the
structure, processes, and procedures of an organization
Q13
inertia
Answer: a firm's resistance to change the status quo, which can set the stage for the
firm's subsequent failure
