Deck 8: Organizational Design and Strategy in a Changing Global Environment

Question 1

Wal- Mart uses a strategy to achieve a competitive advantage.

A)low- cost business- level
B)diversification
C)market penetration
D)differentiation

Answer 1

A

Question 2

A global matrix structure is most appropriate for a company pursuing a(n)strategy.

A)multidomestic
B)transnational
C)global
D)international

Answer 2

B

Question 3

All of the following are selected at the business level except .

A)organizational domain
B)a differentiation strategy
C)a low- cost strategy
D)a diversification strategy

Answer 3

D

Question 4

Which of the following activities can be a source of both a low- cost advantage and a differentiation advantage?

A)Forming long- term relationships with suppliers
B)Developing innovative training programs
C)Targeting customer groups
D)Creating new products

Question 5

are the skills and abilities in value creation activities that allow a company to achieve superior efficiency, quality, innovation, or customer responses.

A)Core competences
B)Ceremonies
C)Rites of enhancement
D)Environmental contingencies

Question 6

is a strategy in which an organization takes over and owns its suppliers or distributors.

A)Environmental scanning
B)Market penetration
C)Vertical integration
D)Differentiation

Question 7

A(n)strategy is a plan that offers global customers a standardized product and allows foreign divisions to adapt products only slightly to local preferences.

A)international
B)decentralized
C)environmental
D)related diversification

Question 8

An organization will face coordination challenges when it moves from a(n)strategy to a strategy.

A)international/multidomestic
B)global/transnational
C)transnational/global
D)global/multidomestic

Question 9

A source of competitive advantage is .

A)an effective culture
B)rules and standard operating procedures
C)centralized decision- making
D)uncertainty

Question 10

strategy is a plan to use and develop core competences so that the organization can not only can protect and enlarge its domain but can also expand into new domains.

A)Functional- level
B)Business- level
C)Corporate- level
D)Global level

Question 11

A laundry detergent manufacturer established self- contained foreign divisions in every country in which it operates; each division operates autonomously. This company is pursuing a(n)strategy.

A)transnational
B)global
C)international
D)multidomestic

Question 12

Unrelated diversification is characterized by all of the following except:

A)relatively high bureaucratic costs.
B)maintaining a small corporate headquarters' staff.
C)evaluating divisions on a profit basis.
D)restructuring inefficient units.

Question 13

Which of the following core competences is most difficult to imitate?

A)Coordination abilities
B)Reputation
C)R&D expertise
D)Top- management skills

Question 14

When an organization wants to achieve a low- cost advantage and a differentiation advantage simultaneously, it should pursue a(n)strategy.

A)multidomestic
B)global
C)international
D)transnational

Question 15

Which of the following strategies generally requires the most integration?

A)Differentiation
B)Focus
C)Long- term contracts
D)Low- cost

Question 16

Which structure is most appropriate for an organization that pursues a low- cost strategy?

A)Functional
B)Geographic
C)Multidivisional
D)Product team

Question 17

Which of the following strategies is most appropriate for a company that wants to achieve a low- cost advantage?

A)International
B)Multidomestic
C)Related diversification
D)Global

Question 18

Which of the following is not a global expansion strategy for managing the international environment?

A)Global focus
B)Transnational
C)Global
D)Multidomestic

Question 19

Which of the following structures fosters a low- cost culture?

A)Matrix structure
B)Mechanistic structure
C)Organic structure
D)Market structure

Question 20

is the pattern of decisions and actions that managers take to use core competences to achieve a competitive advantage and outperform competitors.

A)Centralization
B)Value creation
C)Innovation
D)Strategy

Question 21

A company pursuing an international strategy typically

A)should use a global geographic structure.
B)maintains a balance between centralization and decentralization.
C)has a relatively flat hierarchy.
D)should use a global matrix structure.

Question 22

Which of the following is not a corporate- level strategy?

A)Related diversification
B)Market penetration
C)Vertical integration
D)Global expansion

Question 23

A _ strategy is often used for cars, stereos, cameras, and television because of product standardization and low price.

A)contingency
B)transnational
C)diversification
D)product development

Question 24

A structure creates product group headquarters to coordinate the activities of the domestic and foreign divisions within each product.

A)global learning
B)product team
C)geographic
D)global product group

Question 25

Procter & Gamble combined the skills of marketing, manufacturing, and product development. This is an example of _.

A)coordination abilities
B)managerial expertise
C)decentralization
D)flattening the hierarchy

Question 26

When pressures for both local responsiveness and global integration are high, an organization should pursue a(n)strategy.

A)global
B)international
C)multidomestic
D)transnational

Question 27

Organizational strategy is formulated at all of the following levels except at the _.

A)corporate level
B)functional level
C)business level
D)individual level

Question 28

Which of the following core competences will a company use to pursue unrelated diversification?

A)Brand name
B)Top- management's ability to efficiently control a group of organizations
C)Manufacturing and human resource core competences
D)Engineering expertise

Question 29

In a global matrix structure, which of the following managers are responsible for coordinating resource transfers from corporate headquarters to foreign divisions?

A)Product group managers
B)Individual business division managers
C)Corporate headquarters staff
D)World area managers

Question 30

A retail clothing chain buys a real estate business and an investment banking firm. Which of the following structures is most appropriate for this organization?

A)Multidivisional matrix
B)Market
C)Product division
D)Conglomerate

Question 31

Which of the following is a difference between an international strategy and a global strategy?

A)A global strategy entails producing standardized products, but an international strategy customizes products.
B)A tall structure is appropriate for a global strategy, and a flat structure is appropriate for an international strategy.
C)An international strategy involves setting up manufacturing operations in many countries, but a global strategy involves producing goods at a few locations.
D)An international strategy has limited local responsiveness, and a global strategy does not.

Question 32

can help an organization overcome subunit orientations.

A)A functional structure
B)A low- cost strategy
C)A mechanistic structure
D)Organizational culture

Question 33

A global strategy is most appropriate when pressures for global integration are and pressures for local responsiveness are .

A)low/low
B)high/high
C)high/low
D)low/high

Question 34

A product group structure enables an organization to do all of the following except:

A)achieve economies of scale.
B)achieve local responsiveness.
C)gain a low- cost advantage.
D)transfer core competences to foreign divisions.

Question 35

Related diversification involves all of the following except:

A)having a high level of integration.
B)maintaining small corporate headquarters staff.
C)having the potential for divisional conflicts over resources.
D)exploiting a core competence in a new domain.

Question 36

A Canadian auto manufacturer establishes plants in Europe and in Asia. This is an example of .

A)vertical integration
B)unrelated diversification
C)related diversification
D)global expansion

Question 37

Which of the following companies will most likely have a mechanistic structure?

A)A soft- drink company that has a core competence in marketing
B)A pharmaceutical company that has a core competence in R&D
C)A medical equipment manufacturer that has a core competence in manufacturing
D)A telecommunications company that operates in a dynamic environment

Question 38

Traditionally, manufacturing functions in the United States have not achieved a core competence in manufacturing. Which of the following design choices, used by Japanese companies, can help U.S. companies gain a core competence in manufacturing?

A)Adopting a mechanistic structure
B)Empowering workers
C)Reducing the level of skill required to perform a task
D)Centralizing decision- making authority

Question 39

American Home Products and Monsanto called off their merger because

A)their cultures were too different.
B)they pursued a low- cost strategy.
C)their products were different.
D)they had a short- term focus.

Question 40

is a central function in a low- cost organization.

A)Manufacturing
B)R&D
C)Accounting
D)Marketing

Question 41

Which of the following structures is characterized by a small corporate headquarters staff?

A)Multidivisional
B)Conglomerate
C)Product division
D)Multidivisional matrix

Question 42

A shoe manufacturer acquires the retail stores that sell its shoes. This is an example of .

A)backward development
B)market development
C)related diversification
D)forward vertical integration

Question 43

In a global matrix structure,

A)individual business managers report to product group managers and to world area managers.
B)product group managers report to world area managers.
C)world area managers report to product group managers and to individual business managers.
D)product group managers report to individual business division managers.

Question 44

Which does not give Honda's culture a competitive advantage?

A)Transferring control to managers
B)Establishing norms that encourage participation
C)Instilling commitment in workers
D)Empowering employees

Question 45

Bureaucratic costs are lowest in a company pursuing which of the following strategies?

A)Global
B)Transnational
C)International
D)Multidomestic

Question 46

A _ strategy is a plan whereby an organization produces high- priced, quality products aimed at particular market segments.

A)differentiation business- level
B)environmental
C)low- cost business- level
D)global

Question 47

A company that pursues a(n)_ strategy will have a tall, highly centralized structure.

A)multidomestic
B)transnational
C)international
D)global

Question 48

A focus strategy is a(n).

A)functional- level strategy
B)corporate- level strategy
C)individual- level strategy
D)business- level strategy

Question 49

An organization operating in more than one industry will use a structure.

A)functional
B)geographic
C)market
D)multidivisional

Question 50

A computer manufacturer uses its competence in product design to produce laser printers. This company is pursuing which of the following strategies?

A)Related diversification
B)Unrelated diversification
C)Product development
D)Vertical integration

Question 51

A steel producer implements a strategy to achieve economies of scale throughout its world operations. Which of the following structures should it adopt?

A)Global geographic
B)Multidivisional matrix
C)Global matrix
D)Global product group

Question 52

Developing core competences is the direct responsibility of .

A)functional managers
B)corporate managers
C)the CEO
D)divisional managers

Question 53

Which of the following is not a characteristic of the product group structure?

A)It facilitates global learning.
B)It has a relatively tall hierarchy.
C)It has two- boss managers.
D)It creates a product group headquarters to coordinate activities between corporate headquarters and divisions.

Question 54

At Sony, corporate values of innovation are not passed on through .

A)promotions to corporate staff
B)significant events
C)stories
D)cost cutting

Question 55

Disadvantages of an international strategy include all of the following except:

A)limited local responsiveness.
B)inability to transfer core competences to foreign divisions.
C)inability to achieve significant economies of scale.
D)little opportunity for global learning.

Question 56

An organization's choice of determines which companies it will compete with directly.

A)organizational strategy
B)organizational structure
C)organizational culture
D)interorganizational strategies

Question 57

Mutual adjustment is the primary mechanism used to control activities in which of the following departments?

A)Materials management
B)R&D
C)Manufacturing
D)Sales

Question 58

Amazon.com used a _ strategy.

A)low- cost/differentiation
B)differentiation
C)computer
D)low- cost

Question 59

The skills of Microsoft's software design group are an example of .

A)organizational culture
B)strategic planning
C)functional resources
D)coordination abilities

Question 60

Taking core competencies and combining them to exploit opportunities in the environment is part of _.

A)global level strategy
B)functional- level strategy
C)business- level strategy
D)corporate- level strategy

Question 61

A bicycle manufacturer has been exporting its bicycles to many countries. Sales volume has increased, causing pressures for local responsiveness to increase. Pressures for global integration are relatively low. Which of the following structures should this company adopt?

A)Multidivisional matrix
B)Global product group
C)Global geographic
D)Global matrix

Question 62

Which structure is most appropriate for a differentiated company that has a competitive advantage based on fast customer responsiveness?

A)Functional
B)Geographic
C)Product division
D)Product team

Question 63

An international strategy is most appropriate when pressures for global integration are and pressures for local responsiveness are .

A)high/high
B)low/high
C)low/low
D)high/low

Question 64

Which of the following strategies has the highest bureaucratic costs?

A)Joint venture
B)Unrelated diversification
C)Vertical integration
D)Related diversification

Question 65

Which of the following strategies can an organization use to respond to pressures for local responsiveness?

A)Multidomestic
B)Unrelated diversification
C)Global
D)International

Question 66

When a company moves from a multidomestic strategy to a global strategy, it will face the challenge of .

A)flattening its hierarchy
B)establishing foreign divisions
C)achieving local responsiveness
D)reducing costs

Question 67

Which of the following strategies most helps a company to avoid the problem of opportunistic suppliers?

A)Product development
B)Vertical integration
C)Global expansion
D)Related diversification

Question 68

Which of the following is an advantage of a focus strategy?

A)A larger domain
B)Customer responsiveness
C)Economies of scope
D)Economies of scale

Question 69

Land is an example of .

A)an organizational resource
B)shareholder's equity
C)a functional resource
D)an intangible asset

Question 70

suggests that each function should create a structure to match its resources.

A)Strategic choice
B)Transaction cost theory
C)Contingency theory
D)Resource dependence theory

Question 71

Quick responsiveness to market changes is least critical for a company

A)pursuing a focus strategy.
B)pursuing a low- cost strategy.
C)pursuing a differentiation strategy.
D)using strategic alliances to develop new technology.

Question 72

Traditionally, manufacturing concentrated on all of the following except

A)transferring control to managers.
B)creating a mechanistic hierarchy.
C)increasing mutual adjustment.
D)decreasing the level of skill required to perform a task.

Question 73

In a _, each business is placed in a self- contained division and there is no contact between divisions.

A)hierarchy
B)conglomerate structure
C)functional
D)matrix

Question 74

McDonald's developed breakfast items such as the Egg McMuffin that could be produced quickly. This is an example of a(n).

A)innovation
B)invention
C)craft
D)core competence

Question 75

Which of the following is not a goal of a transnational organization?

A)Local responsiveness
B)Low bureaucratic costs
C)Global learning
D)The ability to transfer core competences to foreign divisions

Question 76

The main disadvantage of a multidomestic strategy is:

A)core competences are shared.
B)local responsiveness is enhanced.
C)customized products are available.
D)core competences are not shared.

Question 77

Which function typically has the most mechanistic structure?

A)Human resources
B)R&D
C)Sales
D)Manufacturing

Question 78

Honda takes its strength in engine production and uses it to produce cars, motor bikes, and lawnmowers, creating value in different markets. This is an example of strategy.

A)marketing
B)corporate- level
C)business- level
D)development

Question 79

Customers around the would get a product priced lower than local domestic products when a company pursues which of the following global expansion strategies?

A)Multidomestic
B)Related diversification
C)Global
D)Transnational

Question 80

is the entry into a new domain that is related in some way to an organization's domain.

A)Related diversification
B)Differentiation
C)Vertical integration
D)Unrelated diversification