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Information Systems Chapter 2 Review Questions 10-18 (Page 79)

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Information Systems Chapter 2 Review Questions 10-18 (Page 79)
Chapter 2 Review Questions 10-18 (page 79)
10. List and define the basic organizational structures.
Organizational structure is organizational subunits and the way they relate to the overall organization. The types of organizational structures normally include the following:
 Traditional Organizational Structure
 Also called “hierarchical structure” – which is like a managerial pyramid where the hierarchy of decision making and authority flows from the strategic management at the top down to the operational management and non-management employees.
 Project Organizational Structure
 A structure centered on major products and services.
 Team Organizational Structure
 A structure centered on work teams or groups.
 Virtual Organizational Structure
 A structure that uses individuals, groups, or complete business units in geographically dispersed areas; these groups can last for a few weeks or years, often requiring telecommunications and the Internet.
11. Sketch and briefly describe the three-stage organizational change method.

12. What is downsizing? How is it different from outsourcing?
Downsizing is reducing the number of employees to cut costs, while outsourcing involves contracting with outside professional services to meet specific business needs.
13. What are some general strategies employed by organizations to achieve competitive advantage?
Competitive advantage is a significant and ideally long-term benefit to a company over its competition. The five-forces model is a widely accepted model that indentifies five key factors that can lead to attainment (achievement) of competitive advantage which are the following:
 The rivalry among existing competitors
 The threat of new entrants
 The Threat of substitute products and services
 The bargaining power of buyers
 The bargaining power of suppliers
The more of these forces combine in any instance, the more likely the organization will seek competitive advantage and the more

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