1) Successfully executing differentiation strategy (e.g., positioning, exploiting, & reshaping) can benefit from the organizational structure that __________________________________________________

The following definitions will be useful in solving this question:

Organizational structure is to arrange communications (i.e., formalization), rights and duties (i.e., specialization) of organizational members, and the lines of authority (i.e., centralization) to ensure that activities are directed toward the achievement of organizational goals.

• Formalization is defined as the degree to which formal rules and procedures govern your works
• Specialization is defined as the separation of jobs within a work process
  • Job enlargement increasing the scope of job tasks by expanding the number of different tasks to be performed.
  • Job rotation shifting individuals from one job to another
  • Broad job description vs. narrow job description.
• Centralization is defined as the level at which (strategic) decision-making authority is located in the organization.
  • Delegation

a. decentralizes decision making.

b. is dominated by written procedures.

c. consists of specialized jobs that are highly separate within a work process.

d. focuses on the finance function.

2) s the following statement correct?

A new team project for shifting a firm's strategic direction requires team members who have entrepreneurship orientation (or mindset). Lumpkin and Dess (1996) identify the five dimensions of entrepreneurship mindset which include being self-directed in the pursuit of opportunities, supporting novelty and experimentation, venturing into the unknown, acting in anticipation of future problems, needs or changes, and being directed toward achieving competitive advantage.

True

False

3) Is the following statement correct?

Industry structure shaped by five forces consists of bargaining powers, entrance barriers, and governmental regulations.

True

False