Question 1

Structural stability affects the organization's ability to:

Accepted Answer

A)  resist organizational inertia. 
B)  cope with uncertainty about cause-and-effect relationships in the global economy. 
C)  develop new competitive advantages. 
D)  predictably manage its daily work routines. 
A)  resist organizational inertia. 
B)  cope with uncertainty about cause-and-effect relationships in the global economy. 
C)  develop new competitive advantages. 
D)  predictably manage its daily work routines. D

Question 2

Discuss the difference between strategic and financial controls.

Accepted Answer

Strategic and financial controls are both types of organizational controls that guide the use of strategy, indicate how to compare actual results with expected results, and suggest corrective actions if there is an unacceptable difference. Strategic controls are largely subjective criteria intended to verify that the firm is using appropriate strategies for the conditions in the external environment and the company's competitive advantages. Strategic controls are concerned with the fit between what the firm might do (opportunities) and what it can do (competitive advantages). Financial controls are largely objective criteria used to measure the firm's performance against previously established quantitative standards. Accounting-based measures, such as return on investment and return on assets, and market-based measures, such as economic value added, are examples of financial controls.

Question 3

The marketing and R&D functions are emphasized in the differentiation strategy's functional structure.

Accepted Answer

A) True 
 B)False  True

Question 4

In the competitive form of the multidivisional structure, the focus of headquarters is on all the following EXCEPT

Accepted Answer

A)  integration. 
B)  performance appraisal. 
C)  resource allocation. 
D)  long range planning. 
A)  integration. 
B)  performance appraisal. 
C)  resource allocation. 
D)  long range planning.

Question 5

Firms switch from a functional structure to a multidivisional structure because greater levels of environmental complexity and uncertainty make it necessary for the firm to develop cooperative relationships with its stakeholders.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following multidivisional structures is CORRECTLY paired with the appropriate corporate-level strategy?

Accepted Answer

A)  competitive form with related constrained strategy 
B)  cooperative form with unrelated strategy 
C)  SBU form with related linked strategy 
D)  competitive form with related linked strategy 
A)  competitive form with related constrained strategy 
B)  cooperative form with unrelated strategy 
C)  SBU form with related linked strategy 
D)  competitive form with related linked strategy

Question 7

The worldwide geographic area structure varies from the worldwide divisional structure in the level of centralization of decision-making.

Accepted Answer

A) True 
 B)False

Question 8

Over time, large and complex organizations must customize their structure to fit their unique strategic needs.

Accepted Answer

A) True 
 B)False

Question 9

In the ____ multidivisional structure there is complete independence among the firm's divisions.

Accepted Answer

A)  cooperative 
B)  matrix 
C)  competitive 
D)  SBU 
A)  cooperative 
B)  matrix 
C)  competitive 
D)  SBU

Question 10

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

Accepted Answer

Corporate-level strategies involve multi

Question 11

Internal competition for corporate resources is effective for companies with an unrelated diversification strategy, but dysfunctional for companies with a related-constrained strategy.

Accepted Answer

A) True 
 B)False

Question 12

Centralized and formalized procedures allow for greater flexibility, an important factor for firms using a cost strategy.

Accepted Answer

A) True 
 B)False

Question 13

The multidivisional structure was initially designed to produce three major benefits over the functional form. Which of the following is NOT one of the three benefits?

Accepted Answer

A)  aligning the corporate structure with the demands of global expansion 
B)  more accurate monitoring of the performance of each business 
C)  facilitation of comparison between divisions 
D)  stimulating managers of poorly performing divisions to look for ways of improving performance 
A)  aligning the corporate structure with the demands of global expansion 
B)  more accurate monitoring of the performance of each business 
C)  facilitation of comparison between divisions 
D)  stimulating managers of poorly performing divisions to look for ways of improving performance

Question 14

Case Scenario 3: Jewell Company.
Jewell Company (JC) is a $2 billion diversified manufacturer and marketer of simple household items, cookware, and hardware. While JC's 16 different lines of business may appear quite different, they all share the common characteristics of being staple manufactured items and sold primarily through volume retail channels like Wal-Mart, Target, and Kmart. Because JC operates each line of business autonomously (separate manufacturing, R&D, and selling responsibilities for each line), it is perhaps best described as pursuing a related linked diversification strategy. The common linkages are both internal (accounting systems, product merchandising skills, and acquisition competency are centralized in the corporate office) and external (distribution channel of volume retailers). Despite this partial centralization of the divisions' operations, each business is run entirely separately. To keep the managers focused on their respective businesses, they are paid a base salary but can earn up to three times that salary in bonuses based on meeting divisional performance targets. An additional, but smaller part of their compensation is derived from stock options.
-(Refer to Case Scenario 3) What is the corporate structural form used by Jewell?

Accepted Answer

A)  functional structure 
B)  cooperative M-Form 
C)  SBU M-Form 
D)  competitive M-Form 
A)  functional structure 
B)  cooperative M-Form 
C)  SBU M-Form 
D)  competitive M-Form

Question 15

Unilever is changing from a multidomestic strategy to a transnational strategy. In order to implement this change, Unilever must move to the ____ organizational structure.

Accepted Answer

A)  combination 
B)  worldwide product divisional 
C)  worldwide geographic area 
D)  strategic business unit multidivisional 
A)  combination 
B)  worldwide product divisional 
C)  worldwide geographic area 
D)  strategic business unit multidivisional

Question 16

Which of the following is NOT a preliminary task of the strategic center firm in a strategic network?

Accepted Answer

A)  strategic outsourcing 
B)  encouraging friendly rivalry among network members 
C)  allocating internal capital 
D)  supporting development of new core competencies 
A)  strategic outsourcing 
B)  encouraging friendly rivalry among network members 
C)  allocating internal capital 
D)  supporting development of new core competencies

Question 17

Strategic controls allow corporate-level managers to

Accepted Answer

A)  evaluate business-level performance on objective criteria. 
B)  concentrate on day-to-day corporate operations. 
C)  assess performance of employees and managers in each business unit. 
D)  examine the fit between what the firm might do and what it can do. 
A)  evaluate business-level performance on objective criteria. 
B)  concentrate on day-to-day corporate operations. 
C)  assess performance of employees and managers in each business unit. 
D)  examine the fit between what the firm might do and what it can do.

Question 18

It is easiest to identify the company that functions as the strategic center firm in

Accepted Answer

A)  horizontal complementary strategic alliances. 
B)  vertical complementary strategic alliances. 
C)  corporate-level cooperative partnerships. 
D)  international cooperative partnerships. 
A)  horizontal complementary strategic alliances. 
B)  vertical complementary strategic alliances. 
C)  corporate-level cooperative partnerships. 
D)  international cooperative partnerships.

Question 19

A firm pursuing a related-constrained diversification strategy would typically need all of the following EXCEPT

Accepted Answer

A)  centralization of some organizational functions for the sake of coordination. 
B)  frequent, direct contact between division managers. 
C)  division managers' rewards based on division financial performance. 
D)  temporary teams or task forces formed around specific projects. 
A)  centralization of some organizational functions for the sake of coordination. 
B)  frequent, direct contact between division managers. 
C)  division managers' rewards based on division financial performance. 
D)  temporary teams or task forces formed around specific projects.

Question 20

Case Scenario 3: Jewell Company.
Jewell Company (JC) is a $2 billion diversified manufacturer and marketer of simple household items, cookware, and hardware. While JC's 16 different lines of business may appear quite different, they all share the common characteristics of being staple manufactured items and sold primarily through volume retail channels like Wal-Mart, Target, and Kmart. Because JC operates each line of business autonomously (separate manufacturing, R&D, and selling responsibilities for each line), it is perhaps best described as pursuing a related linked diversification strategy. The common linkages are both internal (accounting systems, product merchandising skills, and acquisition competency are centralized in the corporate office) and external (distribution channel of volume retailers). Despite this partial centralization of the divisions' operations, each business is run entirely separately. To keep the managers focused on their respective businesses, they are paid a base salary but can earn up to three times that salary in bonuses based on meeting divisional performance targets. An additional, but smaller part of their compensation is derived from stock options.
-(Refer to Case Scenario 3) The centralization of Jewell's operations can be described as

Accepted Answer

A)  centralized at corporate headquarters. 
B)  centralized at country office. 
C)  partially centralized in SBUs or divisions. 
D)  decentralized to divisions. 
A)  centralized at corporate headquarters. 
B)  centralized at country office. 
C)  partially centralized in SBUs or divisions. 
D)  decentralized to divisions.

Structural stability affects the organization's ability to:

Discuss the difference between strategic and financial controls.

The marketing and R&D functions are emphasized in the differentiation strategy's functional structure.

In the competitive form of the multidivisional structure, the focus of headquarters is on all the following EXCEPT

Firms switch from a functional structure to a multidivisional structure because greater levels of environmental complexity and uncertainty make it necessary for the firm to develop cooperative relationships with its stakeholders.

Which of the following multidivisional structures is CORRECTLY paired with the appropriate corporate-level strategy?

The worldwide geographic area structure varies from the worldwide divisional structure in the level of centralization of decision-making.

Over time, large and complex organizations must customize their structure to fit their unique strategic needs.

In the ____ multidivisional structure there is complete independence among the firm's divisions.

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

Internal competition for corporate resources is effective for companies with an unrelated diversification strategy, but dysfunctional for companies with a related-constrained strategy.

Centralized and formalized procedures allow for greater flexibility, an important factor for firms using a cost strategy.

The multidivisional structure was initially designed to produce three major benefits over the functional form. Which of the following is NOT one of the three benefits?

Unilever is changing from a multidomestic strategy to a transnational strategy. In order to implement this change, Unilever must move to the ____ organizational structure.

Which of the following is NOT a preliminary task of the strategic center firm in a strategic network?

Strategic controls allow corporate-level managers to

It is easiest to identify the company that functions as the strategic center firm in

A firm pursuing a related-constrained diversification strategy would typically need all of the following EXCEPT

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Acquisition and Restructuring Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 11: Organizational Structure and Controls

Structural stability affects the organization's ability to:

Discuss the difference between strategic and financial controls.

The marketing and R&D functions are emphasized in the differentiation strategy's functional structure.

In the competitive form of the multidivisional structure, the focus of headquarters is on all the following EXCEPT

Firms switch from a functional structure to a multidivisional structure because greater levels of environmental complexity and uncertainty make it necessary for the firm to develop cooperative relationships with its stakeholders.

Which of the following multidivisional structures is CORRECTLY paired with the appropriate corporate-level strategy?

The worldwide geographic area structure varies from the worldwide divisional structure in the level of centralization of decision-making.

Over time, large and complex organizations must customize their structure to fit their unique strategic needs.

In the ____ multidivisional structure there is complete independence among the firm's divisions.

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

Internal competition for corporate resources is effective for companies with an unrelated diversification strategy, but dysfunctional for companies with a related-constrained strategy.

Centralized and formalized procedures allow for greater flexibility, an important factor for firms using a cost strategy.

The multidivisional structure was initially designed to produce three major benefits over the functional form. Which of the following is NOT one of the three benefits?

Unilever is changing from a multidomestic strategy to a transnational strategy. In order to implement this change, Unilever must move to the ____ organizational structure.

Which of the following is NOT a preliminary task of the strategic center firm in a strategic network?

Strategic controls allow corporate-level managers to

It is easiest to identify the company that functions as the strategic center firm in

A firm pursuing a related-constrained diversification strategy would typically need all of the following EXCEPT

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Acquisition and Restructuring Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Strategic Leadership

Strategic Entrepreneurship

Filters