Question 1

Discuss the organizational structures used to implement the different business-level strategies.

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Question 2

Airlines have forged a number of complementary strategic alliances, in part because many airlines are not profitable.Some airlines participate in several alliances simultaneously.This tends to:

Accepted Answer

Participating in several alliances simultaneously can create ambiguity regarding the true loyalties and intentions of the partners, as they may have overlapping or conflicting interests with different alliances.

Question 3

Discuss the organizational structures used to implement corporate-level strategies.

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Question 4

Describe the organizational structures used to implement the three international strategies.

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Question 5

Define the three major dimensions of organizational structure: specialization, centralization, and formalization.How do these dimensions vary in organizations implementing the cost leadership, differentiation, and cost leadership/differentiation strategies?

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Question 6

Describe the three major types of organizational structure and their appropriate use.

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Question 7

Discuss the difference between strategic controls and financial controls, and explain what type of firm might want to use each.

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Question 8

What type of organizational structure is best suited for a firm that pursues an unrelated diversification strategy, and why?

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Question 9

After years of negotiating short-term contracts with its suppliers, Icon Images has decided to agree to longer-term contracts.In doing this, Icon Images is hoping to:

Accepted Answer

Longer-term contracts can reduce transaction costs by minimizing the frequency of negotiations and the associated administrative expenses.

Question 10

McDonald's operates through a franchising system wherein the head office uses strategic and financial controls to ensure that the franchises are creating the greatest possible value.This is an example of a(n):

Accepted Answer

A strategic network involves a central firm (like McDonald's) coordinating and controlling a network of independent businesses (franchises) to create value.

Question 11

Describe the organizational structures used to implement cooperative strategies, giving attention to the role of the strategic center firm.

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Question 12

The center firm in a strategic network of vertical relationships might be expected to undertake all of the following EXCEPT:

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Decreasing communications between network members would likely hinder collaboration and efficiency, which is contrary to the goals of a strategic network.

Question 13

Toyota uses a strategic network of vertical relationships.Toyota enables engineers in supplier firms to communicate easily with companies with which Toyota has contracts for services.This results in the suppliers and Toyota (the strategic center firm) being more:

Accepted Answer

Toyota's strategic network of vertical relationships fosters interdependence between the company and its suppliers, as they rely on each other for communication and collaboration to achieve mutual goals.

Quiz 11: Organizational Structure and Controls