Question 1

A company pursuing an international strategy typically

Accepted Answer

A) should use a global geographic structure. 
B) maintains a balance between centralization and decentralization. 
C) has a relatively flat hierarchy. 
D) should use a global matrix structure. 
A) should use a global geographic structure. 
B) maintains a balance between centralization and decentralization. 
C) has a relatively flat hierarchy. 
D) should use a global matrix structure.

Question 2

Hitachi manages its 28 divisions by:

Accepted Answer

A) promoting economical values. 
B) using complex integrating mechanisms, such as integrating roles. 
C) using a conglomerate structure to control divisional activities. 
D) using a mechanistic, centralized structure. 
A) promoting economical values. 
B) using complex integrating mechanisms, such as integrating roles. 
C) using a conglomerate structure to control divisional activities. 
D) using a mechanistic, centralized structure.

Question 3

A multidomestic strategy is characterized by all of the following except_________ .

Accepted Answer

A) decentralized decision- making 
B) high local responsiveness 
C) global learning 
D) relatively low bureaucratic costs 
A) decentralized decision- making 
B) high local responsiveness 
C) global learning 
D) relatively low bureaucratic costs

Question 4

Which of the following strategies is most appropriate for a company that wants to achieve a low- cost advantage?

Accepted Answer

A) International 
B) Multidomestic 
C) Related diversification 
D) Global 
A) International 
B) Multidomestic 
C) Related diversification 
D) Global

Question 5

American Home Products and Monsanto called off their merger because

Accepted Answer

A) their cultures were too different. 
B) they pursued a low- cost strategy. 
C) their products were different. 
D) they had a short- term focus. 
A) their cultures were too different. 
B) they pursued a low- cost strategy. 
C) their products were different. 
D) they had a short- term focus.

Question 6

How can an organization develop low- cost core competences?

Accepted Answer

Each function should focus on lowering c

Question 7

A Canadian auto manufacturer establishes plants in Europe and in Asia. This is an example of _________.

Accepted Answer

A) vertical integration 
B) unrelated diversification 
C) related diversification 
D) global expansion 
A) vertical integration 
B) unrelated diversification 
C) related diversification 
D) global expansion

Question 8

Which of the following structures is characterized by a small corporate headquarters staff?

Accepted Answer

A) Multidivisional 
B) Conglomerate 
C) Product division 
D) Multidivisional matrix 
A) Multidivisional 
B) Conglomerate 
C) Product division 
D) Multidivisional matrix

Question 9

Developing core competences is the direct responsibility of _________.

Accepted Answer

A) functional managers 
B) corporate managers 
C) the CEO 
D) divisional managers 
A) functional managers 
B) corporate managers 
C) the CEO 
D) divisional managers

Question 10

Due to intense competition, an organization has decided to move from a global strategy to a transnational strategy. What can this company do to ensure that it successfully pursues a transnational strategy?

Accepted Answer

This organization needs to transfer core

Question 11

Which of the following corporate- level strategies has the lowest bureaucratic costs?

Accepted Answer

A) Related diversification 
B) Unrelated diversification 
C) Differentiation 
D) Vertical integration 
A) Related diversification 
B) Unrelated diversification 
C) Differentiation 
D) Vertical integration

Question 12

It would be pointless in a conglomerate structure to try and develop common corporate cultures.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following activities can be a source of both a low- cost advantage and a differentiation advantage?

Accepted Answer

A) Forming long- term relationships with suppliers 
B) Developing innovative training programs 
C) Targeting customer groups 
D) Creating new products 
A) Forming long- term relationships with suppliers 
B) Developing innovative training programs 
C) Targeting customer groups 
D) Creating new products

Question 14

A bicycle manufacturer has been exporting its bicycles to many countries. Sales volume has increased, causing pressures for local responsiveness to increase. Pressures for global integration are relatively low. Which of the following structures should this company adopt?

Accepted Answer

A) Multidivisional matrix 
B) Global product group 
C) Global geographic 
D) Global matrix 
A) Multidivisional matrix 
B) Global product group 
C) Global geographic 
D) Global matrix

Question 15

Taking core competencies and combining them to exploit opportunities in the environment is part of __________.

Accepted Answer

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

Question 16

A shoe manufacturer acquires the retail stores that sell its shoes. This is an example of _________.

Accepted Answer

A) backward development 
B) market development 
C) related diversification 
D) forward vertical integration 
A) backward development 
B) market development 
C) related diversification 
D) forward vertical integration

Question 17

Which of the following strategies enables a company to obtain the strongest differentiation advantage in foreign markets?

Accepted Answer

A) Unrelated diversification 
B) Global 
C) International 
D) Multidomestic 
A) Unrelated diversification 
B) Global 
C) International 
D) Multidomestic

Question 18

The primary disadvantage of vertical integration is:

Accepted Answer

A) increased bureaucratic costs. 
B) increased number of opportunistic suppliers. 
C) decreased product quality. 
D) loss of control over inputs. 
A) increased bureaucratic costs. 
B) increased number of opportunistic suppliers. 
C) decreased product quality. 
D) loss of control over inputs.

Question 19

Communication flows laterally between divisions and vertically between corporate headquarters and divisions in a company that pursues an unrelated diversification strategy.

Accepted Answer

A) True 
 B)False

Question 20

Coordination abilities refer to:

Accepted Answer

A) linking functional and organizational resources. 
B) the attributes that provide a competitive edge. 
C) planning the organization's strategy. 
D) the skills possessed by functional personnel. 
A) linking functional and organizational resources. 
B) the attributes that provide a competitive edge. 
C) planning the organization's strategy. 
D) the skills possessed by functional personnel.

A company pursuing an international strategy typically

Hitachi manages its 28 divisions by:

A multidomestic strategy is characterized by all of the following except_________ .

Which of the following strategies is most appropriate for a company that wants to achieve a low- cost advantage?

American Home Products and Monsanto called off their merger because

How can an organization develop low- cost core competences?

A Canadian auto manufacturer establishes plants in Europe and in Asia. This is an example of _________.

Which of the following structures is characterized by a small corporate headquarters staff?

Developing core competences is the direct responsibility of _________.

Due to intense competition, an organization has decided to move from a global strategy to a transnational strategy. What can this company do to ensure that it successfully pursues a transnational strategy?

Which of the following corporate- level strategies has the lowest bureaucratic costs?

It would be pointless in a conglomerate structure to try and develop common corporate cultures.

Which of the following activities can be a source of both a low- cost advantage and a differentiation advantage?

A bicycle manufacturer has been exporting its bicycles to many countries. Sales volume has increased, causing pressures for local responsiveness to increase. Pressures for global integration are relatively low. Which of the following structures should this company adopt?

Taking core competencies and combining them to exploit opportunities in the environment is part of __________.

A shoe manufacturer acquires the retail stores that sell its shoes. This is an example of _________.

Which of the following strategies enables a company to obtain the strongest differentiation advantage in foreign markets?

The primary disadvantage of vertical integration is:

Communication flows laterally between divisions and vertically between corporate headquarters and divisions in a company that pursues an unrelated diversification strategy.

Coordination abilities refer to:

Organizations and Organizational Effectiveness

Organizational Stakeholders, Management, and Ethics

Managing in a Changing Global Environment

Basic Challenges of Organizational Design

Designing Organizational Structure: Coordination, Communication, and Control

Designing Organizational Structure: Specialization and Coordination

Creating and Managing Organizational Culture

Organizational Design, Competencies, and Technology

Types and Forms of Organizational Change

Organizational Transformations: Birth, Growth, Decline, and Death

Decision Making, Learning, Knowledge Management, and Information Technology

Innovation, Entrepreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters

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

A company pursuing an international strategy typically

Hitachi manages its 28 divisions by:

A multidomestic strategy is characterized by all of the following except_________ .

Which of the following strategies is most appropriate for a company that wants to achieve a low- cost advantage?

American Home Products and Monsanto called off their merger because

How can an organization develop low- cost core competences?

A Canadian auto manufacturer establishes plants in Europe and in Asia. This is an example of _________.

Which of the following structures is characterized by a small corporate headquarters staff?

Developing core competences is the direct responsibility of _________.

Due to intense competition, an organization has decided to move from a global strategy to a transnational strategy. What can this company do to ensure that it successfully pursues a transnational strategy?

Which of the following corporate- level strategies has the lowest bureaucratic costs?

It would be pointless in a conglomerate structure to try and develop common corporate cultures.

Which of the following activities can be a source of both a low- cost advantage and a differentiation advantage?

A bicycle manufacturer has been exporting its bicycles to many countries. Sales volume has increased, causing pressures for local responsiveness to increase. Pressures for global integration are relatively low. Which of the following structures should this company adopt?

Taking core competencies and combining them to exploit opportunities in the environment is part of __________.

A shoe manufacturer acquires the retail stores that sell its shoes. This is an example of _________.

Which of the following strategies enables a company to obtain the strongest differentiation advantage in foreign markets?

The primary disadvantage of vertical integration is:

Communication flows laterally between divisions and vertically between corporate headquarters and divisions in a company that pursues an unrelated diversification strategy.

Coordination abilities refer to:

Organizations and Organizational Effectiveness

Organizational Stakeholders, Management, and Ethics

Managing in a Changing Global Environment

Basic Challenges of Organizational Design

Designing Organizational Structure: Coordination, Communication, and Control

Designing Organizational Structure: Specialization and Coordination

Creating and Managing Organizational Culture

Organizational Design, Competencies, and Technology

Types and Forms of Organizational Change

Organizational Transformations: Birth, Growth, Decline, and Death

Decision Making, Learning, Knowledge Management, and Information Technology

Innovation, Entrepreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters