Exam 11: Organizational Structure and Controls

Typically, a successful firm pursuing a differentiation strategy will

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?

The ____ structure is the most appropriate structure for implementing the integrated cost leadership /differentiation strategy.

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

Structural stability affects the organization's ability to:

Firms such as Textron Inc. that frequently acquire and divest other firms are most likely to use the ____ structure.

Strategy has a more important influence on strategy, although once in place, structures influence strategy.

In Japan, the center firm in a strategic network of vertical relationships might be expected to undertake all of the following EXCEPT

The noted business historian Alfred Chandler viewed the multidivisional structure as an innovative response to

The Chapter 11 Strategic Focus illustrates the use of the competitive form of the multidivisional structure to implement an unrelated diversification strategy by the LG Company.

IKEA is a global furniture retailer with more than 300 outlets in 39 countries and regions. IKEA focuses on lowering its costs as well as understanding customer needs, especially younger ones. IKEA's international strategy is best described as __________ and the appropriate organizational structure to implement this strategy is the __________ structure.

Which of the following is a TRUE statement about organizational structures for implementing business-level strategies?

There are three variations of the multidivisional structure.

Implementing the multidomestic strategy requires decentralization

The organizational structure for an internationally diversified firm requires trade-offs between global integration and local market responsiveness.

In the hybrid form of the combination structure, some divisions are oriented toward products while others are oriented toward market areas.

A private university is made up of various "schools," such as the School of Journalism, the School of Business, the School of Law, the School of Arts and Sciences, and so forth. The university is experiencing some financial problems and the top administration has decided to have each school of the university become a profit center. This scheme is somewhat parallel to the organizational ____ structure.

The CEO of Transector, Inc., set a 6.5 percent rate-of-return target for all divisions for the past year. Now, at the end of the year, three of Transector's seven divisions have not met this rate-of-return goal. The division managers of these three under-performing divisions have all secretly contacted executive placement firms to investigate openings at other firms, because they know their future at Transector is in jeopardy as financial performance is all-important at Transector. Transector probably uses the ____ structure.

Which of the following is a TRUE statement about implementing corporate-level strategies and effective organizational structures?

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