Question 1

Hitachi manages its 28 divisions by:

Accepted Answer

A)  using a mechanistic, centralized structure. 
B)  promoting economical values. 
C)  using complex integrating mechanisms, such as integrating roles. 
D)  Using a conglomerate structure to control division activities. 
A)  using a mechanistic, centralized structure. 
B)  promoting economical values. 
C)  using complex integrating mechanisms, such as integrating roles. 
D)  Using a conglomerate structure to control division activities.

Question 2

In a global matrix structure, which of the following managers are responsible for coordinating resource transfers from corporate headquarters to foreign divisions?

Accepted Answer

A)  Corporate headquarters staff 
B)  Individual business division managers 
C)  Product group managers 
D)  World area managers 
A)  Corporate headquarters staff 
B)  Individual business division managers 
C)  Product group managers 
D)  World area managers

Question 3

Which of the following strategies involves entering a completely new domain?

Accepted Answer

A)  Market penetration 
B)  Product development 
C)  Market development 
D)  Unrelated diversification 
A)  Market penetration 
B)  Product development 
C)  Market development 
D)  Unrelated diversification

Question 4

Procter & Gamble combined the skills of marketing, manufacturing, and product development. This is an example of ________.

Accepted Answer

A)  coordination abilities 
B)  managerial expertise 
C)  decentralization 
D)  flattening the hierarchy 
A)  coordination abilities 
B)  managerial expertise 
C)  decentralization 
D)  flattening the hierarchy

Question 5

________ are the skills and abilities in value creation activities that allow a company to achieve superior efficiency, quality, innovation, or customer responses.

Accepted Answer

A)  Rites of enhancement 
B)  Core competences 
C)  Ceremonies 
D)  Environmental contingencies 
A)  Rites of enhancement 
B)  Core competences 
C)  Ceremonies 
D)  Environmental contingencies

Question 6

A multidomestic strategy would have divisions that need few integrating mechanisms.

Accepted Answer

A) True 
 B)False

Question 7

Communication flows laterally between divisions and vertically between corporate headquarters and divisions in a company that pursues an unrelated diversification strategy.

Accepted Answer

A) True 
 B)False

Question 8

A focus strategy is a(n) ________.

Accepted Answer

A)  business-level strategy 
B)  corporate-level strategy 
C)  individual-level strategy 
D)  functional-level strategy 
A)  business-level strategy 
B)  corporate-level strategy 
C)  individual-level strategy 
D)  functional-level strategy

Question 9

A U.S. auto manufacturer establishes plants in Europe and in Asia. This is an example of ________.

Accepted Answer

A)  global expansion 
B)  unrelated diversification 
C)  vertical integration 
D)  related diversification 
A)  global expansion 
B)  unrelated diversification 
C)  vertical integration 
D)  related diversification

Question 10

A firm pursuing a low-cost strategy will likely have a mechanistic structure.

Accepted Answer

A) True 
 B)False

Question 11

In a global matrix structure:

Accepted Answer

A)  world area managers report to product group managers and to individual business managers. 
B)  product group managers report to individual business division managers. 
C)  product group managers report to world area managers. 
D)  individual business managers report to product group managers and to world area managers. 
A)  world area managers report to product group managers and to individual business managers. 
B)  product group managers report to individual business division managers. 
C)  product group managers report to world area managers. 
D)  individual business managers report to product group managers and to world area managers.

Question 12

Which of the following structures is a variant of the multidivisional structure?

Accepted Answer

A)  Product division 
B)  Conglomerate 
C)  Matrix 
D)  Product team 
A)  Product division 
B)  Conglomerate 
C)  Matrix 
D)  Product team

Question 13

A ________ strategy is often used for situations in which both local responsiveness and cost reduction are needed.

Accepted Answer

A)  product development 
B)  contingency 
C)  transnational 
D)  diversification 
A)  product development 
B)  contingency 
C)  transnational 
D)  diversification

Question 14

Which of the following companies will most likely have a mechanistic structure?

Accepted Answer

A)  A medical equipment manufacturer that has a core competence in manufacturing 
B)  A pharmaceutical company that has a core competence in R&D 
C)  A soft-drink company that has a core competence in marketing 
D)  A telecommunications company that operates in a dynamic environment 
A)  A medical equipment manufacturer that has a core competence in manufacturing 
B)  A pharmaceutical company that has a core competence in R&D 
C)  A soft-drink company that has a core competence in marketing 
D)  A telecommunications company that operates in a dynamic environment

Question 15

Which of the following structures fosters a low-cost culture?

Accepted Answer

A)  Mechanistic structure 
B)  Matrix structure 
C)  Market structure 
D)  Organic structure 
A)  Mechanistic structure 
B)  Matrix structure 
C)  Market structure 
D)  Organic structure

Question 16

A company can sometimes avoid direct competition with the low-cost leader or dominant differentiator by pursuing a focus strategy.

Accepted Answer

A) True 
 B)False

Question 17

A bicycle manufacturer has been exporting its bicycles to many countries. Sales volume has increased, causing pressures for local responsiveness to increase. Pressures for global integration are relatively low. Which of the following structures should this company adopt?

Accepted Answer

A)  Multidivisional matrix 
B)  Global matrix 
C)  Global geographic 
D)  Global product group 
A)  Multidivisional matrix 
B)  Global matrix 
C)  Global geographic 
D)  Global product group

Question 18

A source of competitive advantage is ________.

Accepted Answer

A)  uncertainty 
B)  an effective culture 
C)  centralized decision making 
D)  rules and standard operating procedures 
A)  uncertainty 
B)  an effective culture 
C)  centralized decision making 
D)  rules and standard operating procedures

Question 19

Disadvantages of an international strategy include all of the following except:

Accepted Answer

A)  limited local responsiveness. 
B)  inability to achieve significant economies of scale. 
C)  inability to transfer core competences to foreign divisions. 
D)  little opportunity for global learning. 
A)  limited local responsiveness. 
B)  inability to achieve significant economies of scale. 
C)  inability to transfer core competences to foreign divisions. 
D)  little opportunity for global learning.

Question 20

Honda takes its strength in engine production and uses it to produce cars, motor bikes, and lawnmowers, creating value in different markets. This is an example of ________ strategy.

Accepted Answer

A)  marketing 
B)  corporate-level 
C)  business-level 
D)  development 
A)  marketing 
B)  corporate-level 
C)  business-level 
D)  development

Hitachi manages its 28 divisions by:

In a global matrix structure, which of the following managers are responsible for coordinating resource transfers from corporate headquarters to foreign divisions?

Which of the following strategies involves entering a completely new domain?

Procter & Gamble combined the skills of marketing, manufacturing, and product development. This is an example of ________.

________ are the skills and abilities in value creation activities that allow a company to achieve superior efficiency, quality, innovation, or customer responses.

A multidomestic strategy would have divisions that need few integrating mechanisms.

Communication flows laterally between divisions and vertically between corporate headquarters and divisions in a company that pursues an unrelated diversification strategy.

A focus strategy is a(n) ________.

A U.S. auto manufacturer establishes plants in Europe and in Asia. This is an example of ________.

A firm pursuing a low-cost strategy will likely have a mechanistic structure.

In a global matrix structure:

Which of the following structures is a variant of the multidivisional structure?

A ________ strategy is often used for situations in which both local responsiveness and cost reduction are needed.

Which of the following companies will most likely have a mechanistic structure?

Which of the following structures fosters a low-cost culture?

A company can sometimes avoid direct competition with the low-cost leader or dominant differentiator by pursuing a focus strategy.

A bicycle manufacturer has been exporting its bicycles to many countries. Sales volume has increased, causing pressures for local responsiveness to increase. Pressures for global integration are relatively low. Which of the following structures should this company adopt?

A source of competitive advantage is ________.

Disadvantages of an international strategy include all of the following except:

Honda takes its strength in engine production and uses it to produce cars, motor bikes, and lawnmowers, creating value in different markets. This is an example of ________ strategy.

Organizations and Organizational Effectiveness

Stakeholders, Managers, and Ethics

Managing in a Changing Global Environment

Basic Challenges of Organizational Design

Designing Organizational Structure: Authority and Control

Designing Organizational Structure: Specialization and Coordination

Creating and Managing Organizational Culture Environment

Organizational Design, Competences, and Technology

Managing Innovation and Change

Organizational Birth, Growth, Decline, and Death

Decision Making and Organizational Learning

Managing Innovation, Intrapreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters

Exam 8: Organizational Design and Strategy in a Changing Global Environment

Hitachi manages its 28 divisions by:

In a global matrix structure, which of the following managers are responsible for coordinating resource transfers from corporate headquarters to foreign divisions?

Which of the following strategies involves entering a completely new domain?

Procter & Gamble combined the skills of marketing, manufacturing, and product development. This is an example of ________.

________ are the skills and abilities in value creation activities that allow a company to achieve superior efficiency, quality, innovation, or customer responses.

A multidomestic strategy would have divisions that need few integrating mechanisms.

Communication flows laterally between divisions and vertically between corporate headquarters and divisions in a company that pursues an unrelated diversification strategy.

A focus strategy is a(n) ________.

A U.S. auto manufacturer establishes plants in Europe and in Asia. This is an example of ________.

A firm pursuing a low-cost strategy will likely have a mechanistic structure.

In a global matrix structure:

Which of the following structures is a variant of the multidivisional structure?

A ________ strategy is often used for situations in which both local responsiveness and cost reduction are needed.

Which of the following companies will most likely have a mechanistic structure?

Which of the following structures fosters a low-cost culture?

A company can sometimes avoid direct competition with the low-cost leader or dominant differentiator by pursuing a focus strategy.

A bicycle manufacturer has been exporting its bicycles to many countries. Sales volume has increased, causing pressures for local responsiveness to increase. Pressures for global integration are relatively low. Which of the following structures should this company adopt?

A source of competitive advantage is ________.

Disadvantages of an international strategy include all of the following except:

Honda takes its strength in engine production and uses it to produce cars, motor bikes, and lawnmowers, creating value in different markets. This is an example of ________ strategy.

Organizations and Organizational Effectiveness

Stakeholders, Managers, and Ethics

Managing in a Changing Global Environment

Basic Challenges of Organizational Design

Designing Organizational Structure: Authority and Control

Designing Organizational Structure: Specialization and Coordination

Creating and Managing Organizational Culture Environment

Organizational Design, Competences, and Technology

Managing Innovation and Change

Organizational Birth, Growth, Decline, and Death

Decision Making and Organizational Learning

Managing Innovation, Intrapreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters