UNIVERSITY OF LETHBRIDGE FACULTY OF MANAGEMENT MGT3360 MIDTERM EXAM OVERVIEW 1. 2. 20 Multiple Choice Questions................................ 20 x 1........................ 20 3 Essay Questions from choice of 5..................... 3 x 15........................ 45 65 Space available for each essay will be one side of one page. Think through your answers ahead of time and be concise. Group discussion of questions is encouraged, but the formulation of answers must be an individual effort. The objective of this method of testing is to encourage you to give more sustained thought to the application of a conceptual framework than might normally be the case in a standard time-limited exam. Be sure that your answers strive to apply and illustrate the theories we have discussed. Numbers in parentheses following each question give a breakdown of marks where applicable. This is not an “open book” exam. No papers will be permitted into the exam. Time available for the exam: 75 minutes. The five essay questions you will see on your exam (from which you must choose three) will be taken from the following eight: Essay Questions 1. The President of your firm has just read an article in Business Week magazine about how all the best companies are adopting modular / virtual network structures and is considering reorganizing the company in that form. The firm is quite large with substantial investments in production and distribution facilities. In the 20 years since it came into being, the company has always had a functional structure and has been very successful with its three standardized products and its reputation for the on-time delivery and high quality that are critical in your industry. During the last few years, however, the business has been losing ground to competitors offering a broader product line and has been showing poor earnings. The President wonders if the firm hasn’t maybe lost touch with its customers. (1) Is going to a modular / virtual network structure a good idea? Do its strengths and weaknesses suit your situation? (2) Is there something about the company’s current functional structure that might explain recent losses? (3) If the functional structure isn’t working, can you argue that the strengths and weaknesses of another structure are a better fit for your firm? (5+5+5) 2. Examine the Organizational Design Outcomes of Strategy in Exhibit 2.5. (1) Describe how a restaurant might operate using the organization design elements for the Prospector strategy. (2) Describe how a restaurant might operate using the organization design elements for the Defender strategy. (3) Describe how a restaurant might operate using the organization design elements for the Analyzer strategy. NOTE: Do not simply re-use the terms in Ex. 2.5… illustrate them! Also: Use the names of local restaurants as examples where you can. (5+5+5) 3. The larger culture of universities is built primarily on individual achievement and assessment and yet the reality of the emerging organizational workplace is that collaboration and team outcomes are increasingly the norm. (1) Work through the characteristics on each side of Ex. 5-3 one at a time and provide an example to illustrate for each characteristic whether you believe the relationship between the university and its students is primarily adversarial or primarily a partnership. (2) What is your overall conclusion? (7+7+1) 4. Your firm has been very successful domestically with its product, Iron Laces – a virtually indestructible shoelace that lasts for longer than most shoes. Now you are ready to take on the world and have already lined up some great advertising where you show some children (always rough on laces) breaking your competitors’ laces but not yours. (1) Because your product is pretty basic, you figure that you’ll organize using a globalization strategy. Draw a chart of what such an organization might look like. (2) Given that you might want to expand into other personal care products, do you have any reason to believe that the globalization strategy might not be your best approach? Why? (3) Is there an alternative strategy that you would suggest to go international? Draw a chart of what this organization might look like. NOTE: It is important that you have read the text carefully and make the effort to apply what you learn from the text to this particular product and its industry segment. (5+5+5) 5. For each of the five organizational phenomena below, tell me which of the perspectives from the Interorganizational Relationships Framework (Ex. 5.2 as amended in class) you feel would be most suited to understand it and use it to briefly explain what is going on. (Each is from a different quadrant. There is 1 mark for right quadrant / theory, 1 mark for specific aspect of theory illustrated, 1 mark to tie in question situation.) (3 x 5) 1. Man, this Blood Diamond movie is really kicking our butts. All of us diamond producers need to get together and demonstrate to the public that the industry is making sure that no diamonds enter the market from corrupt countries. 2. I’m worried that with the price of oil being so volatile, we won’t be able to afford to run our power plant in the future. Let’s take steps to guarantee our sources of supply. 3. I sure don’t understand why our not-for-profit has to be so formally structured for such a small operation but the funding agency seems to prefer it that way. 4. Here we go again. Take on extra workers at Christmas and lay them off again after the peak. I wonder if I talked to Joe, my supplier and Estelle, my distributor, whether we couldn’t work out a better way. I think we all trust each other. 5. Back in the 1970’s when the market for car repair changed dramatically, gasoline stations tried out a lot of new ideas for what else to do besides pump gas. Of all the alternatives, it seems like the convenience store has caught on the best. 6. Choose any two real organizations (not used in the text) that you believe typify the mechanistic and organic structural types. Use actual aspects of these two organizations to illustrate the 5 differences between the two types. NOTE: your chances of getting full marks on this question increase with real details from organizations that you have been a part of yourself. (5 x 3) 7. Your text argues that the amounts of environmental complexity and instability faced by an organization have a large impact on its structure. Categorize, with supporting argument, the environmental uncertainty faced by each of the following organizations. (1 mark for right quadrant; 2 marks for why simple/complex, i.e. detail on critical segments; 2 marks for why stable/unstable, i.e. detail on change in critical segments). (5 x 3) (1) Telus (2) Small, family-run hardware store (3) Much Music 8. You own and operate a local clothing store. Consider what you want to be known for in this community (Think Porter) and come up with a short mission statement. (3) Given your mission statement, tell me how you plan to evaluate the effectiveness of your organization by developing 6 measures of effectiveness as follows: (1) Two measurements based on the Resource-based approach (4) (2) Two measurements based on the Internal process approach (4) (3) Two measurements based on the Goal approach (4) NOTE: Your measurements should relate specifically to the clothing industry and be clearly linked to the achievement of your organizational mission. (1 mark for right approach, 1 mark for applied link to mission.)