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Question
Economies of scope are cost savings achieved when an organization manufactures products in large volumes.
Answer
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Related questions
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What are the three different types of product structures?
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Describe the various control problems that emerge in a functional structure.
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A matrix structure is characterized by ________.
A) a tall hierarchy
B) low integration
C) fixed product teams
D) vague authority relationships
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Which of the following is a disadvantage of the matrix structure?
A) lack of concern for cost
B) possibility of a role conflict
C) decreased ability of the organization to respond quickly to changing customer needs
D) high level of differentiation between functions
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In which of the following organizational structures do employees move between teams?
A) product team structure
B) matrix structure
C) functional structure
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Which of the following structures is most likely to be the flattest?
A) mechanistic structure
B) matrix structure
C) bureaucratic structure
D) transactional structure
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Artists and writers in Hallmark are organized around categories of greeting cards such as Mother's Day cards and Christmas cards. Which of the following types of organizational structures is being used by Hallmark?
A) geographic structure
B) functional structure
C) product team structure
D) transactional structure
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Explain the advantages of the computer-integrated manufacturing (CIM) technique.
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Explain the characteristics of mediating technology as described by Thompson.
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Which of the following types of production technologies, as identified by Joan Woodward, scores lowest on the dimension of technical complexity?
A) continuous-process technology
B) large-batch and mass production technology
C) small-batch and unit technology
D) sequential-process technology
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According to Joan Woodward, the ________ of a production process is a measure of the extent to which a production process can be programmed so that it can be controlled and made predictable.
A) technical complexity
B) resource customizability
C) situational adaptability
D) environmental compatibility
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________ is the technology that involves groups of skilled workers who interact closely to produce custom-designed products.
A) Mass production
B) Engineering technology
C) Craftswork
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The interactions of the members of a surgical operating team, the cooperative efforts of scientists in a research and development laboratory, and techniques developed by assembly-line workers are all examples of competences and technology at the ________ level.
A) functional
B) external resource
C) environmental
D) organizational
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A computer-integrated manufacturing system eliminates the need to retool machines physically.
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Advanced manufacturing technology (AMT) tries to protect the conversion process from disruptions at the input and output stages by using stockpiles of inventory as buffers to increase control and reduce uncertainty.
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Intensive technology is less expensive to manage than either mediating or long-linked technology.
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Mass production technology is based on sequential task interdependence.
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Mediating technology at the organizational level is also found in organizations that use franchise arrangements to organize their businesses.
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Task variability is low when a task is highly standardized or repetitious so a worker encounters the same situation time and time again.
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The conversion process that results from small-batch and unit technology tends to be flexible.
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Technology is used at all three stages in the value creation process: input, conversion, and output.
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The strategy of ________ involves an organization entering a new domain in which it can use one or more of its existing core competences to create a low-cost or differentiated competitive advantage in that new domain.
A) cost leadership
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C) vertical integration
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Which of the following statements is true regarding an organization following a differentiation strategy?
A) Differentiators generally use simple organizational structures.
B) A speedy response to market changes is not vital to the competitive success of a differentiator.
C) An organic structure is more suitable for a differentiator than a mechanistic structure.
D) The organizational structure used by differentiators generally has lower integration than that used by a low cost organization.
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Which of the following statements is true regarding organizational culture?
A) A competitor can easily imitate another organization's culture.
B) Culture is easy to control and manage.
C) Culture is embedded in the day-to-day interactions of functional personnel.
D) Culture cannot be a source of competitive advantage.
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According to ________ theory, an organization's design should permit each function to develop a structure that suits its human and technical resources.
A) strategic choice
B) contingency
C) resource dependence
D) transaction cost
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Land is an example of a(n) ________.
A) liquid asset
B) organizational resource
C) deferred revenue asset
D) functional resource
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Organizations following a low-cost business-level strategy typically produce a wide range of products to suit the needs of different groups of customers.
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A speedy response to market changes is not vital to the competitive success of an organization that is following a low-cost business-level strategy.
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According to contingency theory, an organization's design should ensure that all the functions in the organization use the same organizational structure.
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Business-level strategy is the responsibility of the top-management team.