Question 1

Typically, an organization that uses a differentiation strategy ________.

Accepted Answer

A)  does not respond to market changes quickly 
B)  operates in a complex, uncertain environment 
C)  focuses its resources on producing one product 
D)  has a mechanistic structure

Question 2

In the case of related diversification, when the coordination problems become very severe, which of the following organizational structures is most likely to be used to increase integration?

Accepted Answer

A)  functional structure 
B)  conglomerate structure 
C)  multidivisional matrix structure 
D)  product team structure

Question 3

An organization's strategy is a specific pattern of decisions and actions that managers take to use core competences to achieve a competitive advantage and outperform competitors.

Accepted Answer

A) True 
 B)False

Question 4

McDonald's core competences in manufacturing, marketing, and materials management create a competitive advantage over rivals Burger King and Wendy's. This is an example of a ________ strategy.

Accepted Answer

A)  business-level 
B)  global expansion 
C)  corporate-level 
D)  functional-level

Question 5

A focus strategy is a(n) ________ strategy.

Accepted Answer

A)  business-level 
B)  functional-level 
C)  supply-level 
D)  environmental-level

Question 6

Typically, the manufacturing function in an organization uses ________.

Accepted Answer

A)  a high level of standardization 
B)  an organic structure 
C)  a flat organizational structure 
D)  decentralized decision-making

Question 7

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

Accepted Answer

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

Question 8

________ strategy is a plan to use and develop core competences so that the organization can not only protect and enlarge its domain but can also expand into new domains.

Accepted Answer

A)  Functional-level 
B)  Business-level 
C)  Environmental-level 
D)  Corporate-level

Question 9

Which of the following statements is true regarding unrelated diversification?

Accepted Answer

A)  The bureaucratic costs associated with managing unrelated diversification are much greater than those associated with related diversification. 
B)  An organization pursuing a strategy of unrelated diversification tries to obtain value by sharing resources or by transferring functional skills from one division to another. 
C)  Organizations with a strategy of unrelated diversification are likely to use a conglomerate structure. 
D)  Considerably more communication and coordination are needed to create value from unrelated diversification than from related diversification.

Question 10

Companies implementing which of the following global expansion strategies are most likely to require the most complex structure and control system?

Accepted Answer

A)  multidomestic strategy 
B)  international strategy 
C)  global strategy 
D)  transnational strategy

Question 11

The bureaucratic costs associated with managing unrelated diversification are much greater than those associated with related diversification.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is an example of a functional resource?

Accepted Answer

A)  plant equipment 
B)  corporate reputation 
C)  capital reserves 
D)  skills of a technical expert

Question 13

A core competence in ________ management can allow an organization quickly to discover and respond to customer needs.

Accepted Answer

A)  financial 
B)  human resource 
C)  materials 
D)  marketing

Question 14

The ________ strategy does not require coordination of activities on a global level because value-creation activities are handled locally, by country or world region.

Accepted Answer

A)  international 
B)  multidomestic 
C)  global 
D)  transnational

Question 15

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 a ________ strategy.

Accepted Answer

A)  supplier-level 
B)  business-level 
C)  corporate-level 
D)  functional-level

Question 16

According to contingency theory, an organization's design should ensure that all the functions in the organization use the same organizational structure.

Accepted Answer

A) True 
 B)False

Question 17

In the context of global expansion strategies, which of the following strategies involves R&D and marketing being centralized at home and all the other value-creation functions being decentralized to national units?

Accepted Answer

A)  multidomestic strategy 
B)  vertical integration strategy 
C)  market penetration strategy 
D)  international strategy

Question 18

Which of the following statements is true regarding a global product group structure?

Accepted Answer

A)  Typically, a global product group structure is used by an organization that is implementing a transnational strategy. 
B)  A global product group structure increases local responsiveness of an organization. 
C)  A global product group structure allows different product groups to transfer and share their competences. 
D)  A global product group structure lowers the bureaucratic costs associated with resource transfers between corporate headquarters and the company's global divisions.

Question 19

What are the different types of business-level strategies?

Accepted Answer

The answer of What are the different types of business-level...

Question 20

A corporate-level strategy is a plan of action to strengthen an organization's functional and organizational resources, as well as its coordination abilities, in order to create core competences.

Accepted Answer

A) True 
 B)False

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

Typically, an organization that uses a differentiation strategy ________.

In the case of related diversification, when the coordination problems become very severe, which of the following organizational structures is most likely to be used to increase integration?

An organization's strategy is a specific pattern of decisions and actions that managers take to use core competences to achieve a competitive advantage and outperform competitors.

McDonald's core competences in manufacturing, marketing, and materials management create a competitive advantage over rivals Burger King and Wendy's. This is an example of a ________ strategy.

A focus strategy is a(n) ________ strategy.

Typically, the manufacturing function in an organization uses ________.

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

________ strategy is a plan to use and develop core competences so that the organization can not only protect and enlarge its domain but can also expand into new domains.

Which of the following statements is true regarding unrelated diversification?

Companies implementing which of the following global expansion strategies are most likely to require the most complex structure and control system?

The bureaucratic costs associated with managing unrelated diversification are much greater than those associated with related diversification.

Which of the following is an example of a functional resource?

A core competence in ________ management can allow an organization quickly to discover and respond to customer needs.

The ________ strategy does not require coordination of activities on a global level because value-creation activities are handled locally, by country or world region.

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 a ________ strategy.

According to contingency theory, an organization's design should ensure that all the functions in the organization use the same organizational structure.

In the context of global expansion strategies, which of the following strategies involves R&D and marketing being centralized at home and all the other value-creation functions being decentralized to national units?

Which of the following statements is true regarding a global product group structure?

What are the different types of business-level strategies?

A corporate-level strategy is a plan of action to strengthen an organization's functional and organizational resources, as well as its coordination abilities, in order to create core competences.