Question 1

Which of the following statements is true regarding an organization following a differentiation strategy?

Accepted Answer

A)  Differentiators generally use simple organizational structures. 
B)  A speedy response to market changes is not vital to the competitive success of a differentiator. 
C)  An organic structure is more suitable for a differentiator than a mechanistic structure. 
D)  The organizational structure used by differentiators generally has lower integration than that used by a low cost organization. 
A)  Differentiators generally use simple organizational structures. 
B)  A speedy response to market changes is not vital to the competitive success of a differentiator. 
C)  An organic structure is more suitable for a differentiator than a mechanistic structure. 
D)  The organizational structure used by differentiators generally has lower integration than that used by a low cost organization.

Question 2

KFC specializes in the chicken segment of the fast-food market. This is an example of a ________ strategy.

Accepted Answer

A)  market penetration 
B)  focus 
C)  vertical integration 
D)  conglomerate diversification 
A)  market penetration 
B)  focus 
C)  vertical integration 
D)  conglomerate diversification

Question 3

A speedy response to market changes is not vital to the competitive success of an organization that is following a low-cost business-level strategy.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A)  differentiation 
B)  market penetration 
C)  lateral diversification 
D)  vertical integration 
A)  differentiation 
B)  market penetration 
C)  lateral diversification 
D)  vertical integration

Question 5

A global strategy is oriented toward local responsiveness and a company pursuing this strategy decentralizes control to subsidiaries and divisions in each country in which it operates to produce and customize products to local markets.

Accepted Answer

A) True 
 B)False

Question 6

Considerably more communication and coordination are needed to create value from related diversification than from the other corporate-level strategies.

Accepted Answer

A) True 
 B)False

Question 7

Coca-Cola uses its marketing skills to defend its niche against PepsiCo. This is an example of a functional-level strategy.

Accepted Answer

A) True 
 B)False

Question 8

To become core competences, the functional resources possessed by an organization should be ________.

Accepted Answer

A)  plentiful and easily available 
B)  easily replaceable with alternative resources 
C)  unique and difficult to imitate 
D)  cheap 
A)  plentiful and easily available 
B)  easily replaceable with alternative resources 
C)  unique and difficult to imitate 
D)  cheap

Question 9

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

Accepted Answer

A)  Core competences 
B)  Environmental contingencies 
C)  Rites of enhancement 
D)  Organizational foundation skills 
A)  Core competences 
B)  Environmental contingencies 
C)  Rites of enhancement 
D)  Organizational foundation skills

Question 10

Which of the following is the primary disadvantage of backward and forward vertical integration?

Accepted Answer

A)  increased bureaucratic costs 
B)  decreased product quality 
C)  decreased environmental richness 
D)  loss of control over inputs 
A)  increased bureaucratic costs 
B)  decreased product quality 
C)  decreased environmental richness 
D)  loss of control over inputs

Question 11

In the context of global expansion strategies, which of the following strategies has the highest need to coordinate and integrate global activities?

Accepted Answer

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

Question 12

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

Accepted Answer

A)  conglomerate 
B)  mechanistic 
C)  functional 
D)  matrix 
A)  conglomerate 
B)  mechanistic 
C)  functional 
D)  matrix

Question 13

In order to strengthen an organization's technical and human resources, a manager trains and develops his subordinates. This is an example of a ________ strategy.

Accepted Answer

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

Question 14

Organizations pursuing differentiation business-level strategy generally operate in a simple, stable, and slow-moving environment.

Accepted Answer

A) True 
 B)False

Question 15

A laundry detergent manufacturer established self-contained foreign divisions in every country in which it operates. Authority is decentralized to managers in each overseas division, and they devise the appropriate strategy for responding to the needs of the local environment. This company is pursuing ________ a(n) strategy.

Accepted Answer

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

Question 16

In the case global business, a ________ strategy is often used for situations in which both local responsiveness and cost reduction are needed. As per this strategy, some functions are centralized while others are decentralized at the global location best suited to achieving these objectives.

Accepted Answer

A)  transnational 
B)  vertical integration 
C)  market penetration 
D)  product development 
A)  transnational 
B)  vertical integration 
C)  market penetration 
D)  product development

Question 17

What are the various sources of core competences?

Accepted Answer

The core competences of an organization

Question 18

For a soft drinks company, which of the following will be considered backward vertical integration?

Accepted Answer

A)  buying a bottling and trucking company that distributes soft drinks 
B)  establishing a company that manufactures and sells snack foods 
C)  taking over a company that provides software services 
D)  buying sugar plantations 
A)  buying a bottling and trucking company that distributes soft drinks 
B)  establishing a company that manufactures and sells snack foods 
C)  taking over a company that provides software services 
D)  buying sugar plantations

Question 19

Which of the following strategies is most likely to help a company to avoid the problem of opportunistic suppliers?

Accepted Answer

A)  vertical integration 
B)  product differentiation 
C)  related diversification 
D)  market penetration 
A)  vertical integration 
B)  product differentiation 
C)  related diversification 
D)  market penetration

Question 20

Developing competitive advantage increases an organization's ability to obtain scarce resources.

Accepted Answer

A) True 
 B)False

Which of the following statements is true regarding an organization following a differentiation strategy?

KFC specializes in the chicken segment of the fast-food market. This is an example of a ________ strategy.

A speedy response to market changes is not vital to the competitive success of an organization that is following a low-cost business-level strategy.

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

A global strategy is oriented toward local responsiveness and a company pursuing this strategy decentralizes control to subsidiaries and divisions in each country in which it operates to produce and customize products to local markets.

Considerably more communication and coordination are needed to create value from related diversification than from the other corporate-level strategies.

Coca-Cola uses its marketing skills to defend its niche against PepsiCo. This is an example of a functional-level strategy.

To become core competences, the functional resources possessed by an organization should be ________.

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

Which of the following is the primary disadvantage of backward and forward vertical integration?

In the context of global expansion strategies, which of the following strategies has the highest need to coordinate and integrate global activities?

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

In order to strengthen an organization's technical and human resources, a manager trains and develops his subordinates. This is an example of a ________ strategy.

Organizations pursuing differentiation business-level strategy generally operate in a simple, stable, and slow-moving environment.

In the case global business, a ________ strategy is often used for situations in which both local responsiveness and cost reduction are needed. As per this strategy, some functions are centralized while others are decentralized at the global location best suited to achieving these objectives.

What are the various sources of core competences?

For a soft drinks company, which of the following will be considered backward vertical integration?

Which of the following strategies is most likely to help a company to avoid the problem of opportunistic suppliers?

Developing competitive advantage increases an organization's ability to obtain scarce resources.

Organizations and Organizational Effectiveness

Stakeholders, Managers, and Ethics

Organizing in a Changing Global Environment

Basic Challenges of Organizational Design

Designing Organizational Structure: Authority and Control

Designing Organizational Structure: Specialization and Coordination

Creating and Managing Organizational Culture

Organizational Design, Competences, and Technology

Types and Forms of Organizational Change

Organizational Transformations: Birth, Growth, Decline, and Death

Decision Making, Learning, Knowledge Management, and Information Technology

Innovation, Intrapreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters

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

Which of the following statements is true regarding an organization following a differentiation strategy?

KFC specializes in the chicken segment of the fast-food market. This is an example of a ________ strategy.

A speedy response to market changes is not vital to the competitive success of an organization that is following a low-cost business-level strategy.

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

A global strategy is oriented toward local responsiveness and a company pursuing this strategy decentralizes control to subsidiaries and divisions in each country in which it operates to produce and customize products to local markets.

Considerably more communication and coordination are needed to create value from related diversification than from the other corporate-level strategies.

Coca-Cola uses its marketing skills to defend its niche against PepsiCo. This is an example of a functional-level strategy.

To become core competences, the functional resources possessed by an organization should be ________.

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

Which of the following is the primary disadvantage of backward and forward vertical integration?

In the context of global expansion strategies, which of the following strategies has the highest need to coordinate and integrate global activities?

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

In order to strengthen an organization's technical and human resources, a manager trains and develops his subordinates. This is an example of a ________ strategy.

Organizations pursuing differentiation business-level strategy generally operate in a simple, stable, and slow-moving environment.

In the case global business, a ________ strategy is often used for situations in which both local responsiveness and cost reduction are needed. As per this strategy, some functions are centralized while others are decentralized at the global location best suited to achieving these objectives.

What are the various sources of core competences?

For a soft drinks company, which of the following will be considered backward vertical integration?

Which of the following strategies is most likely to help a company to avoid the problem of opportunistic suppliers?

Developing competitive advantage increases an organization's ability to obtain scarce resources.

Organizations and Organizational Effectiveness

Stakeholders, Managers, and Ethics

Organizing in a Changing Global Environment

Basic Challenges of Organizational Design

Designing Organizational Structure: Authority and Control

Designing Organizational Structure: Specialization and Coordination

Creating and Managing Organizational Culture

Organizational Design, Competences, and Technology

Types and Forms of Organizational Change

Organizational Transformations: Birth, Growth, Decline, and Death

Decision Making, Learning, Knowledge Management, and Information Technology

Innovation, Intrapreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters