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Worksheets04 Handout 1 - Chandler’s Model of Strategy Development
Total questions: 12
Worksheet time: 13mins
Chandler defined an industrial enterprise as "a large private profit-orientated business firm involved in the handling of goods in some or all of the successive processes from the procurement of raw materials to the sale to the ultimate customer."
True
False
He observed that, as companies grew in turnover, employee numbers, geographical areas served, number of products sold or manufactured, etc., there was the possibility of an administration crisis before appropriate structures were developed.
Chandler
Greiner
Mintzberg
Goold and Campbell
Chandler concluded that new strategies created new administrative needs but that executives could administer "both old and new activities with the same personnel, using the same channels of communication and authority. Such administration must, however, become increasingly inefficient."
True
False
Chandler's research indicated that the solution to complex growth on several dimensions (general office, each division's central office, headquarters for the divisional departments, and the field units) was through a multi-divisional structure.
True
False
The generic multi-divisional structure described by Chandler has an expansion by volume, geographical dispersion, vertical integration.
True
False
It is responsible for planning, coordinating, and appraising the activities of the quasi-autonomous divisions.
General office or headquarters (HQ’s)
Division’s central office
Divisional departmental HQ’s
Field units
It administers several functional departments.
General office or headquarters (HQ’s)
Division’s central office
Divisional departmental HQ’s
Field units
It is responsible for the administration of the field offices.
General office or headquarters (HQ’s)
Division’s central office
Divisional departmental HQ’s
Field units
It executes the functions of sales offices, plants, and other administrative tasks necessary for the day-to-day operation of a firm.
General office or headquarters (HQ’s)
Division’s central office
Divisional departmental HQ’s
Field units
It is the domain of the company executives.
Administrative work
Functional work
It involves the actual buying, selling, processing, or transporting of goods.
Administrative work
Functional work
Select the two (2) kinds of tasks concerned with Administrative work.
Tasks that are concerned with the overall coordination and efficient operation of the enterprise.
Tasks that are concerned with ensuring the long-term health of the organization.
Tasks that are concerned with ensuring the short-term health of the organization.
Tasks that are concerned with the overall coordination and inefficient operation of the enterprise.
