Question 1

Phoenix Motor Corp.is considering using a loosely coupled organizational structure.They have asked for your evaluation of such a structure and if you would recommend it for an automobile manufacturer.What will your answer be?

Accepted Answer

A loosely coupled organization requires ...

Question 2

The transnational approach to R&D leverages resources and capabilities that exist anywhere within a firm and deploys them when and where any opportunity arises.

Accepted Answer

A) True 
 B)False

Question 3

In a locally leveraged strategy to innovation,the R&D divisions _____.

Accepted Answer

A)   are completely centralized
B)   play different roles in the company's overall R&D strategy
C)   work on the full scope of development activities relevant to their business unit
D)   do not share creative resources and innovative developments

Question 4

In the context of innovation productivity,a firm's overall size is not an easy-to-manipulate attribute of the firm.

Accepted Answer

A) True 
 B)False  True

Question 5

According to Schoonhoven and Jelinek,quasiformal structures are:

Accepted Answer

A)   slow to respond to the need for changes.
B)   most useful in fostering interactions based on hierarchy.
C)   less problem-focused than other structures of companies.
D)   not part of the formal reporting structure.

Question 6

Altair Inc.,a large firm in the electronics market,is facing stiff competition from a relatively smaller firm,Cygnus Corp.Which of the following is an advantage that Cygnus has over Altair due its size?

Accepted Answer

A)   Larger fixed-asset bases
B)   More layers of administration
C)   More flexible and entrepreneurial culture
D)   Greater bureaucratic inertia due to well-developed policies and procedures

Question 7

A firm's prior success in the market increases its ability to respond to new technological generations.This is known as an Icarus Paradox.

Accepted Answer

A) True 
 B)False

Question 8

A high degree of formalization and standardization in firms results in organic structures.

Accepted Answer

A) True 
 B)False

Question 9

Quasiformal structures foster interactions based on hierarchy rather than on interests.

Accepted Answer

A) True 
 B)False

Question 10

If a firm codifies all of its activities with detailed procedures,it may stifle employee creativity.

Accepted Answer

A) True 
 B)False

Question 11

A firm choosing to decentralize its R&D by divisions rather than centralizing it will have a greater possibility of:

Accepted Answer

A)   maximizing economies of scale in R&D.
B)   preventing redundant R&D activities from being performed in multiple divisions.
C)   benefiting from the learning-curve effects.
D)   matching new products to the requirements of the customers served. D

Question 12

Pioneer Systems Inc.has a high degree of formalization.Employees in Pioneer Systems are more likely to:

Accepted Answer

A)   exhibit high levels creativity and experimentation.
B)   feel empowered to implement new solutions.
C)   face morale and motivation problems.
D)   face ambiguity as a result of a lack of formal rules and procedures.

Question 13

As a firm grows,it becomes more difficult to exercise direct managerial oversight.

Accepted Answer

A) True 
 B)False  True

Question 14

The customization of products and processes to a local market makes them particularly difficult to transfer to divisions serving different markets.

Accepted Answer

A) True 
 B)False

Question 15

Modular products become more valuable when customers have heterogeneous demands and there are diverse options for meeting them.

Accepted Answer

A) True 
 B)False

Question 16

It is possible for organizations to have a highly decentralized mechanistic structure.

Accepted Answer

A) True 
 B)False

Question 17

Coalitions of small firms typically have a well-defined system of authority and control.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following statements is true of standardization?

Accepted Answer

A)   It can ensure that activities within a firm run smoothly and yield predictable outcomes.
B)   It is defined as the degree to which a firm utilizes rules, procedures, and written documentation to structure the behavior of employees.
C)   It involves the use of organic structures instead of mechanistic ones.
D)   It encourages the creativity and experimentation that leads to innovative ideas.

Question 19

Not-invented-here syndrome occurs when:

Accepted Answer

A)   a division of a firm is reluctant to adopt other divisions' innovations.
B)   a firm tends to adopt innovations developed by competitors.
C)   an innovation is openly accepted without testing its suitability.
D)   developers of a failed innovation refuse to take responsibility for its failure.

Question 20

As a firm grows bigger,it becomes:

Accepted Answer

A)   more effective in monitoring and motivating employees.
B)   less vulnerable to bureaucratic inertia.
C)   less efficient in R&D due to loss of managerial control.
D)   increasingly easy for individual scientists to appropriate the returns of their efforts.

Exam 10: Organizing for Innovation

Phoenix Motor Corp.is considering using a loosely coupled organizational structure.They have asked for your evaluation of such a structure and if you would recommend it for an automobile manufacturer.What will your answer be?

Correct AnswerverifiedA loosely coupled organization requires ...View AnswerShow Answer

The transnational approach to R&D leverages resources and capabilities that exist anywhere within a firm and deploys them when and where any opportunity arises.

Correct AnswerverifiedShow Answer

In a locally leveraged strategy to innovation,the R&D divisions _____.

Correct AnswerverifiedShow Answer

In the context of innovation productivity,a firm's overall size is not an easy-to-manipulate attribute of the firm.

Correct AnswerverifiedTrue

According to Schoonhoven and Jelinek,quasiformal structures are:

Correct AnswerverifiedShow Answer

Altair Inc.,a large firm in the electronics market,is facing stiff competition from a relatively smaller firm,Cygnus Corp.Which of the following is an advantage that Cygnus has over Altair due its size?

Correct AnswerverifiedShow Answer

A firm's prior success in the market increases its ability to respond to new technological generations.This is known as an Icarus Paradox.

Correct AnswerverifiedShow Answer

A high degree of formalization and standardization in firms results in organic structures.

Correct AnswerverifiedShow Answer

Quasiformal structures foster interactions based on hierarchy rather than on interests.

Correct AnswerverifiedShow Answer

If a firm codifies all of its activities with detailed procedures,it may stifle employee creativity.

Correct AnswerverifiedShow Answer

A firm choosing to decentralize its R&D by divisions rather than centralizing it will have a greater possibility of:

Correct AnswerverifiedD

Pioneer Systems Inc.has a high degree of formalization.Employees in Pioneer Systems are more likely to:

Correct AnswerverifiedShow Answer

As a firm grows,it becomes more difficult to exercise direct managerial oversight.

Correct AnswerverifiedTrue

The customization of products and processes to a local market makes them particularly difficult to transfer to divisions serving different markets.

Correct AnswerverifiedShow Answer

Modular products become more valuable when customers have heterogeneous demands and there are diverse options for meeting them.

Correct AnswerverifiedShow Answer

It is possible for organizations to have a highly decentralized mechanistic structure.

Correct AnswerverifiedShow Answer

Coalitions of small firms typically have a well-defined system of authority and control.

Correct AnswerverifiedShow Answer

Which of the following statements is true of standardization?

Correct AnswerverifiedShow Answer

Not-invented-here syndrome occurs when:

Correct AnswerverifiedShow Answer

As a firm grows bigger,it becomes:

Correct AnswerverifiedShow Answer

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A loosely coupled organization requires ...
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True

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D

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