CH 09

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CHAPTER 08
STRATEGY IMPLEMENTATION: ORGANIZING FOR ACTION
True/False
1.
Strategy formulation is the sum total of the activities and choices required for the execution of a
strategic plan.
Answer: F
2.
Those who implement strategy will be less diverse than those who formulate it.
Answer: F
The matrix of change was designed to help managers decide how quickly change should proceed,
in what order changes should take place, whether to start at a new site, and whether the proposed
systems are stable and coherent.
Answer: T
(p.192)
(p.193)
3.
Standard operating procedures typically detail the various activities that must be carried out to
complete a corporations programs.
Answer: T
(p.194)
4.
(p.196)
5.
The structure follows strategy concept was developed by Mintzberg.
Answer: F
(p.197)
6.
The first state of corporate development is simple structure.
Answer: T
(p.199)
7.
Stage IV could involve a pressure-cooker crisis.
Answer: T
(p.201)
8.
The second stage of the organizational life cycle is maturity.
Answer: F
(p.202)
9.
The last stage of the organizational life cycle is death.
Answer: T
(p.202)
10.
A popular strategy in the birth stage of the organizational life cycle is conglomerate
diversification.
Answer: F
(p.203)
11.
In a matrix structure, functional and product forms are combined simultaneously at the same level
of the organization.
(p.204)
Answer: T
12.
One structural characteristic of the old organizational design of the corporation is autonomous
work teams.
Answer: F
13.
When using a network structure, many corporate activities are outsourced.
Answer: T
A modular organization is composed of cells that can operate alone but can interact with other
cells to produce a more potent and competent business mechanism.
Answer: F
(p.204)
(p.206)
14.
210
(p.207)
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15.
In order to implement reengineering, Hammer suggests that those who use the output of the
process perform the reengineering process.
Answer: T
16.
Job enlargement is the movement of workers through several jobs to increase variety.
Answer: F
Job enrichment is the alteration of jobs by giving the worker more autonomy and control over
activities.
Answer: T
(p.207)
(p.208)
17.
18.
Stage 4 of international development is a multinational corporation with global emphasis.
Answer: F
Stage 3 of international development is to establish manufacturing facilities in addition to sales
and service offices in key countries.
Answer: T
(p.208)
(p.210)
19.
The geographic-area structure allows the company to introduce and manage a similar line of
products around the world.
Answer: F
(p.210)
20.
Multiple Choice
21.
The sum of the activities and choices required for the execution of a strategic plan is known as
a.
b.
c.
d.
e.
22.
b.
c.
d.
e.
23.
(p.192)
It is the process by which strategies and policies are put into action through the
development of programs, budgets, and procedures.
Implementation is often considered after strategy has been formulated.
Strategy implementation is the sum total of the activities and choices required for the
execution of a strategic plan.
Strategy implementation should be kept separate and distinct from that of strategic
management.
Strategy formulation and strategy implementation are two sides of the same coin.
A study by KPMG of 700 mergers found that _____ of the mergers failed to increase the
acquirers shareholder value within a year of completing the merger.
a.
b.
c.
d.
e.
(p.192)
strategic formulation.
environmental scanning.
strategic implementation.
evaluation and control.
strategic development.
Which statement below is NOT true of "strategy implementation?"

a.
(p.211)
50%
62%
73%
83%
91%
211
(p.193)
24.
A survey of 93 Fortune 500 firms found ten major problems that over half of the group
experienced when they attempted to implement a strategic change. Which of the following is NOT
one of the implementation problems?
(p.193)
a.
b.
c.
d.
e.
25.
Who typically implements strategy in large, multi-industry corporations?

a.
b.
c.
d.
e.
26.
d.
e.
28.
29.
(p.194)
20
15
10
8
2
The matrix of change is developed by

a.
b.
c.
d.
e.
(p.194)
program.
guidelines.
budgets.
course of action.
procedures.
The text indicated that after PepsiCo decided to concentrate on supermarkets where Pepsi had its
greatest sales, Frito-Lay increased its market share by _____%.
a.
b.
c.
d.
e.
(p.194)
because it is a legal requirement.

because collective bargaining agreements often mandate worker participation.
to gain an insight as to what work needs to be done and to gain cooperation in the
implementation of the strategy.
because it is part of their job responsibilities to provide input regarding their respective
area of expertise.
because it helps boost the self-image and ego of all managers to be asked for advice.
The term used in strategic implementation that describes a statement of activities or steps needed
to accomplish a single-use plan and whose use is to make the strategy action-oriented is
a.
b.
c.
d.
e.
(p.193)
the board of directors

top management
middle management
first level management
everyone in the organization
It is advisable to have management from all levels participate in the strategy formulation process
a.
b.
c.
27.
Ineffective coordination of activities.

Uncontrollable external environmental factors.
Time allocated for implementation was adequate, but was used inappropriately.
Poor definition of key implementation tasks and activities.
Crises that distracted attention away from implementation.
(p.194)
Brynjolfsson, Renshaw, & Van Alstyne.

Porter, Renshaw, & Van Alstyne.
Renshaw, Drucker, & Van Alstyne.
Brynjolfsson, Drucker, & Van Alstyne.
Porter, Drucker, & Van Alstyne.
212
30.
Where a change could begin refers to the _____ aspect of the matrix of change.
a.
b.
c.
d.
e.
31.
32.
34.
35.
(p.197)
shared tangible resources.

shared know-how.
coordinated strategies.
economies of scale.
new business creation.
According to Goold and Campbell, when the exchange of knowledge and skills can facilitate new
products or services by extracting discrete activities from various units and combining them in a
new unit or by establishing joint ventures among internal business units, the synergistic effect is
known as
a.
b.
c.
d.
e.
(p.196)
synergy.
a leveraged buyout.
its hurdle rate.
the status of a true conglomerate.
Stage III.
According to Goold and Campbell, when combined units benefit from sharing knowledge or
skills, the synergistic effect is known as
a.
b.
c.
d.
e.
(p.196)
program.
guidelines.
budgets.
course of action.
procedures.
When the return on investment for each division of a corporation is greater than what the
return would be if each division were an independent business, that corporation is said to
have achieved
a.
b.
c.
d.
e.
33.
feasibility
sequence of execution
location
pace and nature of change
stakeholder evaluations
The term used in strategic implementation that describes a system of sequential steps or
techniques that describe in detail how a particular task or job is to be done is
a.
b.
c.
d.
e.
(p.196)
(p.197)
shared tangible resources.

pooled negotiating power.
economies of scope.
According to Goold and Campbell, when companies coordinate the flow of products or services
of one unit with that of another unit which can reduce inventory, the synergistic effect is known as (p.197)
a.
b.
c.
d.
e.

economics of scope.
economies of scale or scope.
pooled negotiating power.
213
36.
The theory that structure follows strategy was developed by

a.
b.
c.
d.
e.
37.
38.
40.
41.
(p.198)
new strategy is created.

profit returns to its previous level.
new administrative problems emerge.
economic performance declines.
new appropriate structure is invented.
A corporation run by a team of managers with functional specializations and which successfully
operates in one industry is said to be a
a.
b.
c.
d.
e.
(p.198)
management, workforce, and customers

operations, marketing, and finance
strategy, structure, and environment
rules, goals, and tasks
hierarchy, contacts, and integrators
In Chandlers discussion of how strategy and structure are related, the last steps in a sequence of
events is that
a.
b.
c.
d.
e.
(p.197)
organic structure is best for firms in a changing environment.

mechanistic structure is best for firms in a changing environment.
structure follows strategy.
strategy follows structure.
strategic business units are the key to effective decentralization.
According to Chandler and others, which factors MUST be closely aligned or else face the
consequences of poor organizational performance?
a.
b.
c.
d.
e.
39.
Alfred Chandler.
Alfred Porter.
Michael Chandler.
Peter Chandler.
Alfred Drucker.
Alfred Chandler, known for his study of large American corporations, concluded that
a.
b.
c.
d.
e.
(p.197)
(p.200)
Stage I company.
Stage II company.
Stage III company.
Stage IV company.
Stage V company.
Objectives which are personal and subjective and are typified by an entrepreneurial spirit describe
what stage of corporate development?
(p.199)
a.
b.
c.
d.
e.
Stage I company.
Stage II company.
Stage III company.
Stage IV company.
Stage V company.
214
42.
A strategy which emphasizes growth through product diversification and exploitation of general
business opportunities is an example of a corporation in what stage of corporate development?
a.
b.
c.
d.
e.
43.
44.
46.
47.
(p.200)
a crisis of autonomy.
a crisis of confidence.
a crisis of clarity.
a crisis of differentiation.
a crisis of leadership.
Under Stage III, when various units of the company optimize its sales and profits without regard
to the overall corporation, the organization can use
a.
b.
c.
d.
e.
(p.200)
a crisis of autonomy.
a crisis of confidence.
a crisis of clarity.
a crisis of differentiation.
a crisis of leadership.
When the people managing diversified product lines in a functionally structured corporation need
more decision-making freedom than top management is willing to delegate to them, this type of
crisis is called
a.
b.
c.
d.
e.
(p.201)
conglomerate structure.
strategic business units.
divisional structure.
matrix structure.
hybrid structure.
When the drive of the entrepreneur is no longer enough to keep the Stage I company from
floundering, this type of crisis is called
a.
b.
c.
d.
e.
(p.200)
Stage I company.
Stage II company.
Stage III company.
Stage IV company.
Stage V company.
A candidate for a fourth stage in corporate development is

a.
b.
c.
d.
e.
45.
Stage I company.
Stage II company.
Stage III company.
Stage IV company.
Stage V company.
In what stage does a corporation typically decentralize into profit or investment centers?
a.
b.
c.
d.
e.
(p.200)
crisis of leadership.
crisis of control.
crisis of autonomy.
crisis of decentralization.
crisis of empowerment.
215
(p.200)
48.
Under Stage I and the function of measurement and control, organizational measurement is based
on
a.
b.
c.
d.
e.
49.
control beyond one person.

assessment of functional operations necessary.
personal, subjective control.
evolution of structured control systems.
complex formal systems geared to comparative assessment of
performance measures.
Key performance indicators under the Stage II are indicated by

a.
b.
c.
d.
e.
(p.199)
(p.199)
operating efficiency.
ability to solve operating problems.
relationships with owner.
size of empire.
P/E ratio.
50.
A typical internal block preventing a corporation from moving from Stage I to Stage II is
a.
unfavorable economic conditions.
b.
the "conservative mentality."
c.
organizational inflexibility.
d.
lack of operating efficiency.
e.
lack of access to financial or management resources.
51.
A typical external block preventing a corporation from moving from one stage to another is
(p.201)
(p.201)
a.
b.
c.
d.
e.
52.
Stage III in the organizational life cycle is the

a.
b.
c.
d.
e.
53.
(p.202)
birth stage.
growth stage.
maturity stage.
decline stage.
death stage.
During Stage II of the organizational life cycle, the structure most likely to be
implemented is
a.
b.
c.
(p.202)
birth stage.
growth stage.
maturity stage.
decline stage.
death stage.
Stage V in the organizational life cycle is the

a.
b.
c.
d.
e.
54.
unfavorable economic conditions.

strategic myopia.
organizational inflexibility.
lack of operating efficiency.
lack of managerial resources.
entrepreneur-dominated.
functional management emphasized.
decentralization into profit or investment centers.
216
(p.203)
d.
e.
55.
During Stage V of the organizational life cycle, the popular strategy is

a.
b.
c.
d.
e.
56.
b.
c.
d.
e.
58.
59.
c.
d.
e.
(p.204)
strategic business units

functional structure
network structure
divisional structure
matrix structure
Which of the following is NOT descriptive of the matrix structure?

a.
b.
(p.203)
Most or all of the product lines are at the mature or declining stage of their product life
cycle.
Sales are declining or stagnant, especially if expressed in constant dollars.
Overhead increases as a percentage of total revenue.
Top management misinterprets information and views the threat as only temporary.
Headquarters staff is decentralized in order to increase control.
Which structure simultaneously combines functional and product forms at the same level of the
organization?
a.
b.
c.
d.
e.
(p.203)
pause phase
acquisition phase
recovery phase
temporal displacement phase
revival phase
Which one of the following characteristics is NOT descriptive of a Stage IV corporation in the
organizational life cycle?
a.
(p.203)
concentration in a niche.
horizontal and vertical growth.
liquidation or bankruptcy.
concentric and conglomerate diversification.
profit strategy followed by retrenchment.
What is the additional phase in the organizational life cycle that may occur sometime during the
maturity or decline stages?
a.
b.
c.
d.
e.
57.
structural surgery.
dismemberment of structure.
People from functional units are often assigned on a temporary basis to product units.
Although employees often work on one or more product units, they maintain only
one direct supervisor.
The matrix structure is very useful when the external environment is very uncertain.
The matrix structure can produce conflicts revolving around duties, authority, and
resource allocation.
The matrix structure was developed to combine the stability of functional structure with
the flexibility of the product form.
217
(p.204)
60.
There are three distinct phases in the development of a matrix structure. Which phase occurs
when cross-functional task forces become permanent and the project manager becomes a product
or brand manager?
a.
b.
c.
d.
e.
61.
62.
64.
65.
(p.205)
temporary cross-functional task forces

true dual-authority structure
product/brand management
immature matrix
mature matrix
Which structure is described as a "non-structure" by its virtual elimination of in-house business

functions?
a.
b.
c.
d.
e.
(p.205)

true dual-authority structure
immature matrix
mature matrix
There are three distinct phases in the development of a matrix structure. Which phase occurs
when both the functional and product structures become permanent in a true dual-authority
structure?
a.
b.
c.
d.
e.
(p.204)
horizontal communication.
autonomous work teams.
extensive training.
value-chain team-focused job design.
centralized top-down decision making.
There are three distinct phases in the development of a matrix structure. Which is the first phase
to occur usually when a new product line is being introduced?
a.
b.
c.
d.
e.
(p.204)
one large corporation.

work/quality teams.
minimal training.
vertical integration.
cross-functional work teams.
All of the following are changing structural characteristics of the modern organization EXCEPT
a.
b.
c.
d.
e.
63.

true dual authority structure
immature matrix
mature matrix
All of the following are changing structural characteristics of the old organization EXCEPT
a.
b.
c.
d.
e.
(p.205)

network structure
matrix structure
218
(p.206)
66.
A company cited in the text as being a network structure organization is

a.
b.
c.
d.
e.
67.
68.
b.
c.
d.
e.
70.
71.
(p.207)
total quality management.

reengineering.
management by objectives.
action planning.
statistical process control.
Which of the following is NOT a part of reengineering?

a.
b.
c.
d.
e.
(p.207)
reengineered organization.
cellular organization.
modular organization.
network organization.
ongoing organization.
The radical redesign of business processes to achieve major gains in cost, service,
or time is called
a.
b.
c.
d.
e.
(p.206)
The network organization is a series of independent firms or business units linked

together through design, production, and marketing.
Independent inventors and entertainment companies often use the network structure.
The network structure typically is located in a large, single building or areas with
many work projects in operation on the site.
The network structure provides an organization with increased flexibility and adaptability
to cope with rapid technological changes.
The network structure is particularly suited to coping with the shifting patterns of
international trade and competition.
An organization which is composed of cells that can operate alone but that can interact with other
cells to produce a more potent and competent business mechanism is referred to as a(n)
a.
b.
c.
d.
e.
(p.206)

network structure
matrix structure
Which of the following is NOT descriptive of a network structure?

a.
69.
Just Toys.
Nortel Networks.
Ariel Capital.
Black and Decker.
Home Depot.
Which structure is often called a virtual organization?

a.
b.
c.
d.
e.
(p.206)
determines internal as well as external customers.

organizes around outcomes, not tasks.
treats geographically dispersed resources as though they were centralized.
links parallel activities.
captures information once at the source.
219
(p.207)
72.
Designing a persons or a departments job around an objective or outcome instead of a single

task or series of tasks centers around the Hammer reengineering principle of
a.
b.
c.
d.
e.
73.
74.
76.
(p.208)
job combination.
job rotation.
job enrichment.
job enlargement.
job motivation.
The combination of tasks to give a worker more of the same type of duties to perform is
known as
a.
b.
c.
d.
e.
(p.208)
position matching
functional duties
job design
task conversion
responsibility shift
The movement of workers through several jobs to increase variety is referred to as

a.
b.
c.
d.
e.
(p.208)
23
15
12
36
6
What term refers to the study of individual tasks in an attempt to make them more relevant to the
company and to the employee(s)?
a.
b.
c.
d.
e.
75.
subsume information-processing work into the real work that

produces the information.
have those who use the output of the process perform the
process.
organize around outcomes.
treat geographically dispersed resources as though they were
centralized.
link parallel activities instead of integrating their
results.
One study of North American financial firms reflect that the average reengineering project took
_____ months.
a.
b.
c.
d.
e.
(p.207)
job combination.
job rotation.
job enrichment.
job enlargement.
job motivation.
220
(p.208)
77.
To combat the adverse consequences of task specialization, what function does job enlargement
perform?
a.
b.
c.
d.
e.
78.
b.
c.
d.
e.
79.
b.
c.
d.
e.
b.
c.
d.
e.
81.
(p.209)
Based on the belief that tasks can be described in terms of certain objective
characteristics and that these characteristics affect employee motivation.
By moving workers through several jobs, they are exposed to increased variety.
By combining different tasks, a worker is given more of the same type of duties to
perform.
By giving the worker less autonomy in the job, the worker has less control over
activities.
none of these
Which component of the job characteristics model tries to increase task variety and enable
workers to identify with what they are doing?
a.
b.
c.
d.
(p.208)
perform.
By giving the worker more autonomy through alterations in the job, the worker has
control over activities.
none of these
To combat the adverse consequences of task specialization, what function does the job
characteristics model perform?
a.
(p.208)
perform.
none of these
To combat the adverse consequences of task specialization, what function does job rotation
perform?
a.
80.
perform.
none of these
To combat the adverse consequences of task specialization, what function does job enrichment
perform?
a.
(p.208)
combine tasks
form natural work units
establish client relationships
vertically load
221
(p.209)
e.
82.
Which component of the job characteristics model gives workers increased authority and
responsibility over their activities?
a.
b.
c.
d.
e.
83.
b.
c.
(p.209)
combine tasks
vertically load
open feedback channels
(p.209)
international corporation.
multidomestic corporation.
multinational corporation.
global corporation.
Stage IV corporation.
Which one of the following is most descriptive of a multinational corporation (MNC)?

a.
(p.209)
combine tasks
vertically load
A highly developed international company with a deep involvement throughout the world, plus a
worldwide perspective in its management and decision making is called a(n)
a.
b.
c.
d.
e.
87.
combine tasks
vertically load
Which component of the job characteristics model makes workers more responsible and
accountable for the performance of the job?
a.
b.
c.
d.
e.
86.
combine tasks
vertically load
Which component of the job characteristics model provides workers information on how they are
performing?
a.
b.
c.
d.
e.
85.
(p.209)
Which component of the job characteristics model encourages workers to know what performance
is required and why?
(p.209)
a.
b.
c.
d.
e.
84.
It is a corporation which needs only a very small portion of its operations or marketing in
another country.
It is a corporation that engages in full-scale manufacturing in a couple of foreign
countries.
It is a corporation that is a highly developed international company with deep
worldwide involvement and a global perspective in its management.
222
(p.209)
d.
e.
88.
What is the activity that occurs in Stage I of the development of a multinational corporation?
a.
b.
c.
d.
e.
89.
e.
91.
92.
(p.210)
1
2
3
4
5
Who handles the international activities of a company in the second stage of MNC development
when exports become more important?
a.
b.
c.
d.
e.
(p.210)
1
2
3
4
5
When a company establishes a local operating division or company in the host country, this is
known as Stage _____ of international development.
a.
b.
c.
d.
e.
(p.210)
Company invests in production facilities in key countries.

Exports, but trade is minor and handled by an export department.
Company establishes its own export division with sales offices in other countries.
Company operates in a global industry and establishes worldwide personnel, R&D,
and financing strategies.
Company establishes local operating divisions in host countries to better serve individual
country markets.
The establishment of a sales company with offices in other countries to eliminate the middlemen
and to better control marketing occurs in Stage _____ of international development.
a.
b.
c.
d.
e.
(p.210)
Company invests in production facilities in key countries.

Exports, but trade is minor and handled by an export department.
Company establishes its own export division with sales offices in other countries.
Company operates in a global industry and establishes worldwide personnel, R&D, and
financing strategies.
Company establishes local operating divisions in host countries to better serve individual
country markets.
What is the activity that occurs in the last stage of development of a multinational corporation?
a.
b.
c.
d.
90.
It is any corporation which does business in two or more countries.

It is a corporation that engages in any combination of activities from exporting/importing
to full-scale manufacturing in foreign countries.
Export manager, reporting to domestic marketing executive.

Export division manager.
Director of international operations, usually a vice-president.
President, who is vice-president in the parent company.
No single executive in charge of international business.
223
(p.210)
93.
As more industries become global, MNCs are tending to structure themselves in a

a.
b.
c.
d.
e.
94.
95.
97.
98.
(p.211)
geographic-area structure
product-group structure
network structure
matrix structure
One company cited in the text for changing to a product-group structure is

a.
b.
c.
d.
e.
(p.211)
network structure
matrix structure
Which type of structure enables a corporation to decentralize decision making to the local
subsidiaries?
a.
b.
c.
d.
e.
(p.211)
network structure
international structure
Which type of structure enables a corporation to centralize decision making along product lines
and to reduce costs?
a.
b.
c.
d.
e.
(p.211)
network structure
international structure
Which type of structure enables a company to tailor products to regional differences and to
achieve regional coordination?
a.
b.
c.
d.
e.
96.
matrix organization.
functional format.
centralized information systems network with decentralized performance generators.
loose combination of contracts, partnerships, and joint ventures.
conglomerate structure.
Which type of structure enables a company to introduce and manage a similar line of products
throughout the world?
a.
b.
c.
d.
e.
(p.211)
Exxon.
Texaco.
Mobil.
Shell Oil.
Conoco.
224
(p.211)
99.
The simultaneous pressures for decentralization in order to be more locally responsive and for
centralization in order to be maximally efficient results in more companies adopting a
a.
b.
c.
d.
e.
100.
101.
103.
(p.213)
borderless.
full of rich data.
broken.
directly accessible.
decentralized.
The theme that the Internet provides direct access to everyone on the planet to every piece of
information made available is known as _____ according to the principles of the hyper-linked
organization.
a.
b.
c.
d.
e.
(p.213)
hyper-linked and decentralized.

hyper time.
directly accessible.
full of rich data.
borderless.
Because the Internet is a large, complex network controlled by no one, it will always be
somewhat
a.
b.
c.
d.
e.
(p.213)
matrix.
functional.
hyper-linked.
simple.
network.
The ability for people to look for information and connections at their own pace under their own
control any time of the day or week highlights the hyper-linked organization theme of
a.
b.
c.
d.
e.
102.
functional structure.
matrix structure.
divisional structure.
simple structure.
network structure.
A new organization which provides all employees easy access to one another and to people
outside the organization in a rich variety of ways from e-mail to personal Web sites is referred to
as
a.
b.
c.
d.
e.
(p.212)
borderless
hyper time
decentralized
directly accessible
broken
225
(p.213)

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Which statement below is NOT true of "strategy implementation?"

Who typically implements strategy in large, multi-industry corporations?

The matrix of change is developed by

because it is a legal requirement.

the board of directors

Ineffective coordination of activities.

Brynjolfsson, Renshaw, & Van Alstyne.

shared tangible resources.

shared tangible resources.

new business creation.

The theory that structure follows strategy was developed by

new strategy is created.

management, workforce, and customers

organic structure is best for firms in a changing environment.

A candidate for a fourth stage in corporate development is

control beyond one person.

Key performance indicators under the Stage II are indicated by

Stage III in the organizational life cycle is the

Stage V in the organizational life cycle is the

unfavorable economic conditions.

During Stage V of the organizational life cycle, the popular strategy is

strategic business units

Which of the following is NOT descriptive of the matrix structure?

temporary cross-functional task forces

Which structure is described as a "non-structure" by its virtual elimination of in-house business

temporary cross-functional task forces

one large corporation.

temporary cross-functional task forces

strategic business units

A company cited in the text as being a network structure organization is

total quality management.

Which of the following is NOT a part of reengineering?

The network organization is a series of independent firms or business units linked

strategic business units

Which of the following is NOT descriptive of a network structure?

Which structure is often called a virtual organization?

determines internal as well as external customers.

Designing a persons or a departments job around an objective or outcome instead of a single

The movement of workers through several jobs to increase variety is referred to as

subsume information-processing work into the real work that

Which one of the following is most descriptive of a multinational corporation (MNC)?

open feedback channels

Company invests in production facilities in key countries.

Company invests in production facilities in key countries.

It is any corporation which does business in two or more countries.

Export manager, reporting to domestic marketing executive.

As more industries become global, MNCs are tending to structure themselves in a

One company cited in the text for changing to a product-group structure is

hyper-linked and decentralized.

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