Question 1

Wal- Mart uses a strategy to achieve a competitive advantage.
A)low- cost business- level
B)diversification
C)market penetration
D)differentiation

Accepted Answer

Wal-Mart's strategy to achieve a competitive advantage is primarily through a low-cost business-level strategy, allowing them to offer products at lower prices than competitors.

Question 2

A global matrix structure is most appropriate for a company pursuing a(n)_________strategy.
A)multidomestic
B)transnational
C)global
D)international

Accepted Answer

A global matrix structure is most appropriate for a company pursuing a transnational strategy because it allows for both global integration and local responsiveness.

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

Accepted Answer

A diversification strategy is typically selected at the corporate level, not the business level.

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

Accepted Answer

Forming long-term relationships with suppliers can reduce costs through better pricing and supply chain efficiencies, while also enhancing differentiation by ensuring quality and reliability.

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

Accepted Answer

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

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

Accepted Answer

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

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

Accepted Answer

An international strategy involves offering a standardized product globally while allowing for slight adaptations to meet local preferences.

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

Accepted Answer

A global strategy focuses on standardizing products across countries, while a transnational strategy requires balancing global efficiency with local responsiveness, leading to increased coordination challenges.

Question 9

A source of competitive advantage is_________ .
A)an effective culture
B)rules and standard operating procedures
C)centralized decision- making
D)uncertainty

Accepted Answer

An effective culture can be a source of competitive advantage as it can enhance employee motivation, innovation, and alignment with organizational goals, leading to improved performance and differentiation in the market.

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

Accepted Answer

A corporate-level strategy focuses on the overall scope and direction of an organization, including expanding into new domains and managing core competences across different business units.

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

Accepted Answer

The company is pursuing a multidomestic strategy, where each foreign division operates independently and adapts to the local market conditions.

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.

Accepted Answer

The answer of Unrelated diversification is characterized by all of...

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

Accepted Answer

The answer of Which of the following core competences is...

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

Accepted Answer

A transnational strategy aims to achieve both low-cost and differentiation advantages by balancing global efficiency and local responsiveness.

Question 15

Which of the following strategies generally requires the most integration?
A)Differentiation
B)Focus
C)Long- term contracts
D)Low- cost

Accepted Answer

The answer of Which of the following strategies generally requires...

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

Accepted Answer

A functional structure is most appropriate for a low-cost strategy as it allows for efficiency and specialization, reducing costs through streamlined operations and economies of scale.

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

Accepted Answer

A global strategy allows a company to standardize products and processes across different markets, achieving economies of scale and reducing costs.

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

Accepted Answer

Global focus is not typically recognized as a distinct global expansion strategy. The other options (Transnational, Global, and Multidomestic) are established strategies for managing international operations.

Question 19

Which of the following structures fosters a low- cost culture?
A)Matrix structure
B)Mechanistic structure
C)Organic structure
D)Market structure

Accepted Answer

A mechanistic structure is characterized by a high degree of formalization and centralization, which can lead to efficiencies and cost savings, fostering a low-cost culture.

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

Accepted Answer

Strategy involves the decisions and actions managers take to leverage core competences for achieving competitive advantage and outperforming competitors.

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

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

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

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

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

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

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

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.

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

A source of competitive advantage is_________ .

_________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 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.

Unrelated diversification is characterized by all of the following except:

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

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

Which of the following strategies generally requires the most integration?

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

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

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

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

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