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Product consistency and cost stability are two of the most important factors

13. Environmental, strategic, and personnel are the three primary factors that affect organization design.

ANS: F

Environmental, strategic, and technological are the three primary factors that affect organization design.


| Strategy

14. Competitors are the only major external group that needs to be taken into account in making organization design decisions.

ANS: F

Major external groups that need to be taken into account in making organization design decisions include suppliers, distributors, competitors, and customers.

Strategy
15. Product consistency and cost stability are two of the most important factors when choosing a supplier.


ANS: T  Strategy MSC: Recall

16. To maintain the product consistency customers have come to expect from McDonald's, the organization has entered into a single long-term contract with J.R. Simplot to supply it with potatoes.

ANS: T 
Strategy

17. The various organizations that help another organization deliver and sell its products are known as suppliers.

ANS: F

The various organizations that help another organization deliver and sell its products are known as distributors.
Strategy

18. Competitors do not often influence the design of an organization.

ANS: F

Competitors influence the design of an organization because they drive the organization to become more productive.

Strategy
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