Coca-Cola, Ford Motor Company, H. J. Heinz, Nike, and Procter and Gamble are working together to develop plant-based plastics. Each company brings its own competency to the table. This collaboration is an example of a _____________.

81.

Coca-Cola, Ford Motor Company, H. J. Heinz, Nike, and Procter and Gamble are working together to develop plant-based plastics. Each company brings its own competency to the table. This collaboration is an example of a _____________.    A.  virtual organization B.  modular organization C.  horizontal organization D.  vertical organization This is a virtual organization in which the collaboration between firms from apparently unrelated industries is to develop a technology that could potentially affect all products that use plastic as a component, a container, or a package. Each company that links up with others to create a virtual organization contributes only what it considers its core competencies. It will mix and match what it does best with the best of other firms by identifying its critical capabilities and the necessary links to other capabilities.

AACSB: Analytic Blooms: Understand Learning Objective: 10-04 The different types of boundaryless organizations-barrier-free; modular; and virtual-and their relative advantages and disadvantages. Level of Difficulty: 2 Medium Topic: Boundaryless Organizational Designs

82.

Organizations generally tend to become internally focused when faced with ______________ and _____________.    A.  resource scarcity; declining performance B.  internal pressures; improving performance C.  resource abundance; declining performance D.  external pressures; resource abundance When an organization faces external pressures, resource scarcity, and declining performance, it tends to become more internally focused, rather than directing its efforts toward managing relationships with existing and potential external stakeholders. This may be the most opportune time for managers to evaluate the potential for adopting elements of modular, virtual, and barrier-free organizational types.

AACSB: Analytic Blooms: Understand Learning Objective: 10-04 The different types of boundaryless organizations-barrier-free; modular; and virtual-and their relative advantages and disadvantages. Level of Difficulty: 2 Medium Topic: Boundaryless Organizational Designs

83.

If a firm outsources some parts of its value chain in order to reduce costs and increase quality and at the same time engages in multiple alliances to penetrate new markets, this is a example of a firm using a ______________ of organizational types.    A.  combination B.  boundaryless consortium C.  bounded consortium D.  barrier free collection Designing an organization that simultaneously supports the requirements of the organization strategy, is consistent with the demands of the environment, and can be effectively implemented by the people around the manager is a tall order for any manager. The most effective solution is usually a combination of organizational types. That is, a firm may outsource many parts of its value chain to reduce costs and increase quality, engage simultaneously in multiple alliances to take advantage of technological developments or penetrate new markets, and break down barriers within the organization to enhance flexibility.

AACSB: Analytic Blooms: Understand Learning Objective: 10-04 The different types of boundaryless organizations-barrier-free; modular; and virtual-and their relative advantages and disadvantages. Level of Difficulty: 2 Medium Topic: Boundaryless Organizational Designs

84.

Tools and techniques used to achieve effective coordination and integration of key activities in an organization include all of the following except _____________.    A.  horizontal organization structures B.  horizontal systems and processes C.  horizontal diversification D.  communications and information technologies Managers must select a mix and balance of tools and techniques to facilitate the effective coordination and integration of key activities. Some of the factors that must be considered include common culture and shared values, horizontal organizational structures, horizontal systems and processes, communications and information technologies, and human resource practices.

AACSB: Analytic Blooms: Understand Learning Objective: 10-04 The different types of boundaryless organizations-barrier-free; modular; and virtual-and their relative advantages and disadvantages. Level of Difficulty: 2 Medium Topic: Boundaryless Organizational Designs

85.

Effective ambidextrous organizations have alignment, which means that _____________.    A.  employees are rewarded according to both profit and sales growth B.  managers are focused on growth opportunities C.  there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated D.  divisional-level goals are consistent with overall corporate goals Managers must effectively exploit the value of their existing assets and competencies. They need to have alignment, which is a clear sense of how value is being created in the short-term and how activities are integrated and properly coordinated.

AACSB: Analytic Blooms: Understand Learning Objective: 10-05 The need for creating ambidextrous organizational designs that enable firms to explore new opportunities and effectively integrate existing operations. Level of Difficulty: 2 Medium Topic: Creating Ambidextrous Organizational Designs

86.

Effective ambidextrous organizations maintain adaptability, which means that _____________.    A.  managers are focused on growth opportunities B.  there is a clear sense of how value is being created in the short-term and how activities are properly integrated and coordinated C.  divisional-goals are consistent with overall corporate goals D.  managers must remain proactive in expanding and/or modifying their product-market scope to anticipate and satisfy market conditions First, managers must explore new opportunities and adjust to volatile markets in order to avoid complacency. They must ensure that they maintain adaptability and remain proactive in expanding and/or modifying their product-market scope to anticipate and satisfy market conditions.

AACSB: Analytic Blooms: Understand Learning Objective: 10-05 The need for creating ambidextrous organizational designs that enable firms to explore new opportunities and effectively integrate existing operations. Level of Difficulty: 2 Medium Topic: Creating Ambidextrous Organizational Designs

87.

According to the study by OReilly and Tushman, effective ambidextrous structures had all of the following attributes except _____________.    A.  a clear and compelling vision B.  managerial efforts were highly focused on revenue enhancement C.  cross-fertilization among business units D.  established units were shielded from the distractions of launching new businesses The study found many factors explained why ambidextrous organizations were more effective. A clear and compelling vision, consistently communicated by senior management was critical. The structure enabled cross-fertilization while avoiding cross-contamination. The established units were shielded from the distractions of launching new businesses, and they continued to focus all of their attention and energy on refining their operations, enhancing their products, and serving their customers.

AACSB: Analytic Blooms: Understand Learning Objective: 10-05 The need for creating ambidextrous organizational designs that enable firms to explore new opportunities and effectively integrate existing operations. Level of Difficulty: 2 Medium Topic: Creating Ambidextrous Organizational Designs