Exam 11: Organizational Structure and Controls

For firms in a vertical complementary alliance (such as between Toyota and its suppliers), it is more difficult to identify the strategic center firm than in a horizontal complementary alliance (e.g., airline alliances).

Companies and business units of large diversified firms using the cost leadership strategy should use strategic controls.

Ichabod Industries has a Latin American Division, a European Division, an Industrial Lubricants Division, and a Food Service Division. Ichabod Industries probably uses the ____ organizational structure.

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 the cost-leadership/differentiation strategies?

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

Toyota and its suppliers have a relationship in which Toyota encourages suppliers to modernize their facilities and provides them with technical and financial assistance to do so. It also promotes longer term contracts with suppliers, and enables engineers in the supplier company to have better communication with Toyota. This is an example of a(an):

Distributed strategic networks are the organizational structure used to manage international cooperative strategies.

Ortiz is a manager of BRS Corp. Ortiz's division did not meet financial targets this year. Ramirez, manager of another division, has indicated that Ortiz's division incurred significant costs which resulted in Ramirez's division setting record profits for the year. As a result, performance for BRS as a whole exceeded projections. Which pairing of organizational structures for BRS and bonus for Ortiz is most plausible?

In the ____ structure hierarchy, the headquarters relies on strategic controls to set rate-of-return targets and financial controls to monitor divisional performance relative to those targets.

As a firm grows, it typically shifts from a simple structure to a functional structure.

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

Which of the following does NOT cause a firm to move from a functional structure to a multidivisional structure?

Which of the following is NOT associated with an organizational structure that supports a cost leadership strategy?

According to the Chapter 11 Strategic Focus, Cisco implemented the related constrained strategy using the SBU form of the multidivisional structure.

The need for the organization to combine local responsiveness and efficiency is most critical in a ____ strategy.

Organizational structures must be both stable and flexible.

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

Walmart's effective strategy/structure configuration is

With a related diversification corporate-level strategy, financial controls are used by corporate leaders to verify the sharing of appropriate strategic factors such as knowledge, markets, and technologies across businesses.

The __________ structure is best for implementing the related constrained diversification strategy.