Exam 18: Implementing the Strategic Response

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The complexity of outsourcing has decreased during the current globalization wave.

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Externalization within the global factory alters the management of activities from one based on hierarchy to one based on _______

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The dual loyalties of a subsidiary result from the fact that it is not only part of the corporate network but also _______

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Matrix structures suffer from problems of complexity, multiple reporting patterns, and high cost.

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Functional organizational structures have the major advantage of dispersing expertise and reducing specialization

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Coordination and integration are key skills for managers in the global factory

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Centralization in a global factory is encouraged by a high level of product diversification, significant geographical distance between the home and host countries, and low interdependence between affiliates.

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Strategic implementation requires the organization to ensure that all actions are consistent with its strategic choice(s).

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A product structure is attractive to single commodity or business firms.

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Geographical organizational structures encourage staff collaboration in dynamic and disparate markets.

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External embeddedness in the local environment increases the ability of a subsidiary to undertake knowledge sourcing and transfer.

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Knowledge identification, absorption, and sharing are critical tasks for the global factory.

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Strategy operates through structure because structure provides a framework for strategy implementation and control.

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Corporate culture is an example of behavioural controls which seek to influence the behaviour of organizational members.

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As well as organizational structure the global factory can also use _______ to facilitate the implementation of strategy.

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There has been a trend within global factories to augment traditional output-based control measures.

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Externalized transactions can still be managed hierarchically under a superior-subordinate relationship.

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The three main types of control are _______

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In principle, a control process is a closed loop system which assesses progress towards predetermined goals.

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After completing strategic analysis, an organization faces two further steps in the strategy process: strategic choice and strategic implementation.

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