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

To foster the development of the matrix-in-the-mind concept and promote cooperation,companies are increasingly making use of the integrating capabilities of information technology (IT).

Nestlé,the world's biggest food company,has been pursuing an ambitious program of global expansion,acquiring companies such as Perrier and Rowntree.

Companies pursue a localization strategy when they want to maximize responsiveness to the unique needs of customers in each country.

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

Mohawk Industries Inc.is the largest designer,maker,and seller of carpets in the United States.In a separate division,the firm's product line also includes floor tile,pillows,and bed linens.Mohawk has a strong emphasis on cost reduction.If the firm wishes to sell more products overseas,what strategy would you recommend,and why? Mohawk Industries Inc.is the largest designer,maker,and seller of carpets in the United States.In a separate division,the firm's product line also includes floor tile,pillows,and bed linens.Mohawk has a strong emphasis on cost reduction.If the firm wishes to sell more products overseas,what strategy would you recommend,and why? Based on your response,recommend an organizational structure for Mohawk to use as it globalizes.Explain why the structure you recommend is the most appropriate one for Mohawk.

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

In a multidivisional structure,corporate managers can compare the performance of one division against another in terms of its cost structure or the profit it generates.

Often global companies use the services of foreign intermediaries or brokers,such as Li & Fung,to find suppliers that best fit their input requirements.

Companies pursue a global standardization strategy when they want to minimize costs.

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.

How can information technology (IT)help in the implementation of a multibusiness model?

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?

The two main innovations in a multidivisional structure (over a functional or product structure)are

Consider the information given in Question 83 and your answer to that question,and then recommend an organizational structure for Mohawk to use as it globalizes.Explain why the structure you recommend is the most appropriate one for Mohawk.

In a multidivisional structure,which form of control is used to compare the relative performances of different divisions?

Vertical integration is a less expensive strategy to manage than is unrelated diversification.

In September 2006,Ford Motor Company announced a plan to sell both its U.S.and global operations.

In joint venturing,two or more companies typically agree to

A company pursuing unrelated diversification