Question 1

Implementation of a global matrix provides a company with which of the following advantages?

Accepted Answer

A) Decentralizes control to overseas managers 
B) Provides overseas managers with considerable flexibility 
C) Allows overseas managers the flexibility to manage local issues 
D) Allows corporate executives to exercise control when needed 
E) All of these choices 
A) Decentralizes control to overseas managers 
B) Provides overseas managers with considerable flexibility 
C) Allows overseas managers the flexibility to manage local issues 
D) Allows corporate executives to exercise control when needed 
E) All of these choices E

Question 2

SAP is the world's leading supplier of software for the videogame industry.

Accepted Answer

A) True 
 B)False  False

Question 3

Implementation problems can arise in unrelated acquisitions when managers from the acquiring company apply inappropriate structure and controls to manage the new business.

Accepted Answer

A) True 
 B)False  True

Question 4

In a multidivisional structure

Accepted Answer

A) support functions,such as accounting,are centralized at the top of the organization. 
B) corporate headquarters staff have operating responsibility. 
C) divisional managers have overall corporate strategic responsibility. 
D) corporate headquarters is responsible for overseeing the company's long-term multibusiness model and for providing guidance for interdivisional projects. 
E) financial controls are necessarily weak. 
A) support functions,such as accounting,are centralized at the top of the organization. 
B) corporate headquarters staff have operating responsibility. 
C) divisional managers have overall corporate strategic responsibility. 
D) corporate headquarters is responsible for overseeing the company's long-term multibusiness model and for providing guidance for interdivisional projects. 
E) financial controls are necessarily weak.

Question 5

Competition for resources is one of the drawbacks of the multidivisional structure.

Accepted Answer

A) True 
 B)False

Question 6

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.

Accepted Answer

A) True 
 B)False

Question 7

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.

Accepted Answer

A) True 
 B)False

Question 8

A camera manufacturer that has separate divisions for making personal cameras,movie cameras,and film acquired a small film developer and a car battery supplier.Which of the following structures is most appropriate for this firm?

Accepted Answer

A) Functional 
B) Matrix 
C) Geographic 
D) Multidivisional 
E) Product team 
A) Functional 
B) Matrix 
C) Geographic 
D) Multidivisional 
E) Product team

Question 9

Problems in effectively managing the multidivisional structure include

Accepted Answer

A) distortion of information. 
B) competition for resources. 
C) transfer pricing. 
D) all of these choices. 
E) none of these choices. 
A) distortion of information. 
B) competition for resources. 
C) transfer pricing. 
D) all of these choices. 
E) none of these choices.

Question 10

A localization strategy

Accepted Answer

A) involves an appropriate mix of centralization and decentralization. 
B) centralizes all functions. 
C) centralizes only the research and development (R&
D) and marketing functions. 
D) is the most complex strategy. 
E) is oriented toward local responsiveness. 
A) involves an appropriate mix of centralization and decentralization. 
B) centralizes all functions. 
C) centralizes only the research and development (R&
D) and marketing functions. 
D) is the most complex strategy. 
E) is oriented toward local responsiveness.

Question 11

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?

Accepted Answer

A) Acquisition 
B) Internal new venture 
C) Merger 
D) Divestiture 
E) Joint venture 
A) Acquisition 
B) Internal new venture 
C) Merger 
D) Divestiture 
E) Joint venture

Question 12

A company that makes and sells the same product in many different countries often groups its overseas divisions into ____ to simplify the coordination of products across countries.

Accepted Answer

A) world regions 
B) horizontal areas 
C) six areas 
D) local regions 
E) none of these choices 
A) world regions 
B) horizontal areas 
C) six areas 
D) local regions 
E) none of these choices

Question 13

The set of strategic alliances that an organization creates with suppliers,manufacturers,and distributors to produce and market a product is called a(n)

Accepted Answer

A) network structure. 
B) outsourcing network. 
C) structure alliance. 
D) oligopoly. 
E) suppliers' network. 
A) network structure. 
B) outsourcing network. 
C) structure alliance. 
D) oligopoly. 
E) suppliers' network.

Question 14

Ownership of the company created by a joint venture

Accepted Answer

A) is split 50/50 between the two joint-venturing companies. 
B) is usually a matter to be negotiated between the companies engaged in the venture. 
C) automatically goes to the largest company engaged in the venture. 
D) automatically goes to the smallest company engaged in the venture. 
E) none of these choices. 
A) is split 50/50 between the two joint-venturing companies. 
B) is usually a matter to be negotiated between the companies engaged in the venture. 
C) automatically goes to the largest company engaged in the venture. 
D) automatically goes to the smallest company engaged in the venture. 
E) none of these choices.

Question 15

In the multidivisional structure,each division typically contains only a partial set of value chain activities.

Accepted Answer

A) True 
 B)False

Question 16

In a firm with a multidivisional structure,corporate managers oversee the actions of divisional managers.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Transfer pricing is used most commonly in a

Accepted Answer

A) functional structure. 
B) product team structure. 
C) multidivisional structure. 
D) matrix structure. 
E) geographic structure. 
A) functional structure. 
B) product team structure. 
C) multidivisional structure. 
D) matrix structure. 
E) geographic structure.

Question 19

When Toyota first decided to manufacture and market cars in the United States,it entered into a ____ with General Motors.

Accepted Answer

A) strategic alliance 
B) joint venture 
C) global partnership 
D) trade agreement 
E) contingency plan 
A) strategic alliance 
B) joint venture 
C) global partnership 
D) trade agreement 
E) contingency plan

Question 20

The control issue in managing the multidivisional structure is

Accepted Answer

A) how much authority should be centralized at corporate headquarters. 
B) how much authority should be decentralized to the divisions. 
C) how much authority should be given to each functional unit. 
D) how much authority should be centralized at corporate headquarters and decentralized to the divisions. 
E) how much authority should be given to corporate division heads. 
A) how much authority should be centralized at corporate headquarters. 
B) how much authority should be decentralized to the divisions. 
C) how much authority should be given to each functional unit. 
D) how much authority should be centralized at corporate headquarters and decentralized to the divisions. 
E) how much authority should be given to corporate division heads.

Implementation of a global matrix provides a company with which of the following advantages?

SAP is the world's leading supplier of software for the videogame industry.

Implementation problems can arise in unrelated acquisitions when managers from the acquiring company apply inappropriate structure and controls to manage the new business.

In a multidivisional structure

Competition for resources is one of the drawbacks of the multidivisional structure.

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.

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.

A camera manufacturer that has separate divisions for making personal cameras,movie cameras,and film acquired a small film developer and a car battery supplier.Which of the following structures is most appropriate for this firm?

Problems in effectively managing the multidivisional structure include

A localization strategy

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?

A company that makes and sells the same product in many different countries often groups its overseas divisions into ____ to simplify the coordination of products across countries.

The set of strategic alliances that an organization creates with suppliers,manufacturers,and distributors to produce and market a product is called a(n)

Ownership of the company created by a joint venture

In the multidivisional structure,each division typically contains only a partial set of value chain activities.

In a firm with a multidivisional structure,corporate managers oversee the actions of divisional managers.

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

Transfer pricing is used most commonly in a

When Toyota first decided to manufacture and market cars in the United States,it entered into a ____ with General Motors.

The control issue in managing the multidivisional structure is

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

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

Implementation of a global matrix provides a company with which of the following advantages?

SAP is the world's leading supplier of software for the videogame industry.

Implementation problems can arise in unrelated acquisitions when managers from the acquiring company apply inappropriate structure and controls to manage the new business.

In a multidivisional structure

Competition for resources is one of the drawbacks of the multidivisional structure.

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.

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.

A camera manufacturer that has separate divisions for making personal cameras,movie cameras,and film acquired a small film developer and a car battery supplier.Which of the following structures is most appropriate for this firm?

Problems in effectively managing the multidivisional structure include

A localization strategy

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?

A company that makes and sells the same product in many different countries often groups its overseas divisions into ____ to simplify the coordination of products across countries.

The set of strategic alliances that an organization creates with suppliers,manufacturers,and distributors to produce and market a product is called a(n)

Ownership of the company created by a joint venture

In the multidivisional structure,each division typically contains only a partial set of value chain activities.

In a firm with a multidivisional structure,corporate managers oversee the actions of divisional managers.

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

Transfer pricing is used most commonly in a

When Toyota first decided to manufacture and market cars in the United States,it entered into a ____ with General Motors.

The control issue in managing the multidivisional structure is

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Filters