Exam 13: Implementing Strategy in Companies That Compete Across Industries and Countries

Which of the following companies is the best example of an organization that formally encourages and supports entrepreneurship?

Which of the following is not a consequence of the increased ability of managers to use information technology as they implement strategies?

In joint venturing,two or more companies typically agree to

America Online blended its operations with those of Time Warner to create AOL Time Warner.America Online is using which entry mode to enter the broadcast industry?

The most widely used vehicles that companies can use to enter new industries or countries are

Firms pursuing related diversification typically rely more on output control than on culture control.

When a firm implements a global strategy with a global product group structure; it will be more responsive to the unique needs of each local country.

Reasons why a firm might benefit from the creation of a separate new-venture division include all of the following except

A localization strategy

An approach to internal new venturing that has been championed by those who believe that the best way to encourage new-product development is to integrate this effort into the rest of the organization is the creation of a new-venture division.

All of the following strategies can be employed by companies as they begin to market their products and establish production facilities overseas except:

One problem with a mishandled merger is that skilled managers who feel they have been demoted will work together to sabotage the organization.

The head of the finance function at ABC International employs a larger staff than is required for efficiency to reduce work pressures inside the department and to bring the manager higher status.This is known as organizational slack.

The U.S.firm Hewlett-Packard (HP)built twelve worldwide manufacturing facilities in several different countries,but its research and development (R&D)and marketing are centralized in the United States.Based on this information,which entry mode is HP using in its various locations?

The more interdependent the divisions in a multidivisional structure,the greater are the bureaucratic costs associated with obtaining the potential benefits from a particular strategy.

The control issue in managing the multidivisional structure is

For its South American operations,Caterpillar performs most functions at its U.S.headquarters but markets through cooperative relationships with local distributors.Based on this information,which entry mode is Caterpillar using in South America?

The global-product strategy is weak when it comes to

The organizational hierarchy is flatter in a multidivisional structure than in a product or functional structure.

In a related multidivisional structure,the idea of corporate culture is meaningless.