Question 1

Which of the following statements is true of a worldwide product divisional structure?

Accepted Answer

A) It involves the decentralization of the overall strategic development and fmancial control of the finn. 
B) It is favored by fmns that are not diversified. 
C) It usually more creates scope for coordination problems than the international division structure. 
D) It facilitates the transfer of competencies within a division's worldwide operations. 
E) It brings area or country managers to the same level as of corporate managers. 
A) It involves the decentralization of the overall strategic development and fmancial control of the finn. 
B) It is favored by fmns that are not diversified. 
C) It usually more creates scope for coordination problems than the international division structure. 
D) It facilitates the transfer of competencies within a division's worldwide operations. 
E) It brings area or country managers to the same level as of corporate managers. D

Question 2

Transfer pricing may lead to divisional battles in a multidivisional company.

Accepted Answer

A) True 
 B)False  True

Question 3

In a multidivisional structure:

Accepted Answer

A) support functions, such as accounting, are centralized at the top of the organization. 
B) each division essentially has the same organizational structure. 
C) divisional managers have overall corporate strategic responsibility. 
D) corporate headquarters is responsible for providing guidance for interdivisional projects. 
E) each self-contained division has its own corporate headquarters staff. 
A) support functions, such as accounting, are centralized at the top of the organization. 
B) each division essentially has the same organizational structure. 
C) divisional managers have overall corporate strategic responsibility. 
D) corporate headquarters is responsible for providing guidance for interdivisional projects. 
E) each self-contained division has its own corporate headquarters staff. D

Question 4

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

Accepted Answer

Mohawk should consider use of the global

Question 5

Gemini Pharmaceuticals Inc.is a large finn that operates in many industries.The various units of the firm like packaging and chemical laboratories function independently and have their own organizational structures.The operations and strategies of all the units are monitored by the corporate headquarters staff.Gemini Pharmaceuticals Inc.is mostly an example of a:

Accepted Answer

A) flat organizational hierarchy. 
B) product structure. 
C) brand structure. 
D) matrix structure. 
E) multidivisional structure. 
A) flat organizational hierarchy. 
B) product structure. 
C) brand structure. 
D) matrix structure. 
E) multidivisional structure.

Question 6

Which of the following is an advantage of mergers and acquisitions?

Accepted Answer

A) In acquisitions, little emphasis is required on control systems and culture. 
B) Mergers and acquisitions ensure equal power and status for all managers. 
C) Mergers consisting of related companies have uniform norms and values. 
D) Mergers and acquisitions are less risky compared to internal ventures. 
E) Mergers and acquisitions can help combine the best of efficiencies and cultures. 
A) In acquisitions, little emphasis is required on control systems and culture. 
B) Mergers and acquisitions ensure equal power and status for all managers. 
C) Mergers consisting of related companies have uniform norms and values. 
D) Mergers and acquisitions are less risky compared to internal ventures. 
E) Mergers and acquisitions can help combine the best of efficiencies and cultures.

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A joint venture can be dangerous to a company if its partuer is acquired by a competitor.

Accepted Answer

A) True 
 B)False

Question 9

In a finn with a Multidivisional structure, corporate managers oversee the actions of divisional managers.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following statements is true in the context of the international division structure?

Accepted Answer

A) Regardless of the finn's domestic structure, its international division tends to be organized functionally. 
B) The heads of foreign subsidiaries are usually given more voice in the organization than the heads of domestic functions or divisions. 
C) The head of the international division is often presumed to be able to represent the interests of all countries to headquarters. 
D) The international division structure eliminates coordination problems between domestic and international subsidiaries. 
E) In the international division structure, each country's manager is also a part of the corporate headquarters staff. 
A) Regardless of the finn's domestic structure, its international division tends to be organized functionally. 
B) The heads of foreign subsidiaries are usually given more voice in the organization than the heads of domestic functions or divisions. 
C) The head of the international division is often presumed to be able to represent the interests of all countries to headquarters. 
D) The international division structure eliminates coordination problems between domestic and international subsidiaries. 
E) In the international division structure, each country's manager is also a part of the corporate headquarters staff.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

When implementing an international strategy, many companies create global divisions that they add to their existing divisional structures.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

To expand its global sales, Synergy Corp.has purchased a finn in Lanthania.Synergy Corp.plans to manage the new business by allowing it to continue as before, with little integration into the rest of the firm.Based on this information, which entry mode is Synergy Corp.using to enter into Lanthania?

Accepted Answer

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

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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

Question 17

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

Accepted Answer

A) Faster decision making process 
B) Centralized decision-making 
C) Emphasis on a transnational strategy 
D) Reduced conflicts and power struggles. 
E) Emphasis on global standardization 
A) Faster decision making process 
B) Centralized decision-making 
C) Emphasis on a transnational strategy 
D) Reduced conflicts and power struggles. 
E) Emphasis on global standardization

Question 18

Which of the following statements is tme about transfer pricing in the context of multidivisional organizational structure?

Accepted Answer

A) It can severely damage coordination and corporate culture. 
B) It occurs when one division's products are priced higher than another division's products. 
C) It often results in a uniform increase in profitability among all the divisions. 
D) It refers to the changes in product prices that occur when certain functions from the divisions are centralized. 
E) It helps corporate managers create the maximum profitability out of the multidivisional strategy. 
A) It can severely damage coordination and corporate culture. 
B) It occurs when one division's products are priced higher than another division's products. 
C) It often results in a uniform increase in profitability among all the divisions. 
D) It refers to the changes in product prices that occur when certain functions from the divisions are centralized. 
E) It helps corporate managers create the maximum profitability out of the multidivisional strategy.

Question 19

Problems in effectively managing the multidivisional structure include:

Accepted Answer

A) assessment of divisional profits. 
B) coordination. 
C) transfer pricing. 
D) lack of value chain functions in divisions. 
E) lack of corporate fmancial control. 
A) assessment of divisional profits. 
B) coordination. 
C) transfer pricing. 
D) lack of value chain functions in divisions. 
E) lack of corporate fmancial control.

Question 20

A finn that is pursuing a globalization strategy will typically use a worldwide-area structure.

Accepted Answer

A) True 
 B)False

Which of the following statements is true of a worldwide product divisional structure?

Transfer pricing may lead to divisional battles in a multidivisional company.

In a multidivisional structure:

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

Which of the following is an advantage of mergers and acquisitions?

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

A joint venture can be dangerous to a company if its partuer is acquired by a competitor.

In a finn with a Multidivisional structure, corporate managers oversee the actions of divisional managers.

Which of the following statements is true in the context of the international division structure?

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

When implementing an international strategy, many companies create global divisions that they add to their existing divisional structures.

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

To expand its global sales, Synergy Corp.has purchased a finn in Lanthania.Synergy Corp.plans to manage the new business by allowing it to continue as before, with little integration into the rest of the firm.Based on this information, which entry mode is Synergy Corp.using to enter into Lanthania?

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

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

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

Which of the following statements is tme about transfer pricing in the context of multidivisional organizational structure?

Problems in effectively managing the multidivisional structure include:

A finn that is pursuing a globalization strategy will typically use a worldwide-area structure.

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

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

Which of the following statements is true of a worldwide product divisional structure?

Transfer pricing may lead to divisional battles in a multidivisional company.

In a multidivisional structure:

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

Which of the following is an advantage of mergers and acquisitions?

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

A joint venture can be dangerous to a company if its partuer is acquired by a competitor.

In a finn with a Multidivisional structure, corporate managers oversee the actions of divisional managers.

Which of the following statements is true in the context of the international division structure?

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

When implementing an international strategy, many companies create global divisions that they add to their existing divisional structures.

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

To expand its global sales, Synergy Corp.has purchased a finn in Lanthania.Synergy Corp.plans to manage the new business by allowing it to continue as before, with little integration into the rest of the firm.Based on this information, which entry mode is Synergy Corp.using to enter into Lanthania?

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

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

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

Which of the following statements is tme about transfer pricing in the context of multidivisional organizational structure?

Problems in effectively managing the multidivisional structure include:

A finn that is pursuing a globalization strategy will typically use a worldwide-area structure.

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

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