Chapter 5—Organization of the Firm Key
1. In the 1990s, business organizations were
2. Organizations that survive over time
3. A firm can find a competitive advantage
4. Prior to 1840, most businesses were
5. Economies of scale were initially seen between
6. With economies of scale came
7. The 1990s saw
8. Which of the following are forms that organizations can take?
9. An organizational form that is structured around basic business functions is called
10. An organization that is structured along a set of autonomous divisions led by a corporate headquarters office
is called
11. Organizational structure forms evolved based on
12. According to the text, Pepsi has a(n)
13. Over time, the hierarchy of firms has tended to move from
14. Independent firms that together can exploit economies of scale are referred to as a
15. Flat organizations tend to
16. Organizational structure can be a strategic asset if it
17. The set of collectively held beliefs, values, and norms among the members of a firm that influence
individual behavior is referred to as
18. Corporate cultures
19. Corporate culture can be a strategic asset if it
A. adds value.
20. Research seems to suggest that corporate culture
21. The corporate form of business started to become more prevalent in the United States economy in the late
1700s.
22. Make or buy decisions affect the degree of vertical integration.
23. Upstream and downstream refer to the degree of horizontal integration.
24. The structure of an organization is influenced by transactions costs.
25. Supply chain management is a recent development in organizational structure.
26. A matrix form of organization is equivalent to a U-form which is found in the service industry.
27. A self-managed team is still headed by a boss.
28. W.L. Gore is structured an a U-form of organization.
29. Business structure has remained relatively stable over the history of American business.
30. A matrix is a network of unrelated companies trying to jointly capture economies of scale.
31. The U-form of organization is equivalent to the matrix form.
32. An M-form of organization is exploiting functional business areas.
33. It is essential to understand corporate cultures to make a merger successful.
34. Corporate cultures are easily transferable between two organizations.
35. A favorable corporate culture leads to returns that exceed the cost of capital.