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

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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.


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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.

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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 
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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.
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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.

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