Question 1

Which of the following structures is the most appropriate for an organization that pursues a differentiation strategy?

Accepted Answer

A)  functional structure 
B)  centralized structure 
C)  mechanistic structure 
D)  matrix structure

Question 2

The plant equipment possessed by a company is considered to be an organizational resource.

Accepted Answer

A) True 
 B)False

Question 3

A retail clothing chain buys a real estate business and an investment banking firm. Which of the following structures is most appropriate for this organization?

Accepted Answer

A)  matrix structure 
B)  product team structure 
C)  mechanistic structure 
D)  conglomerate structure

Question 4

Land is an example of a(n) ________.

Accepted Answer

A)  liquid asset 
B)  organizational resource 
C)  deferred revenue asset 
D)  functional resource

Question 5

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

Accepted Answer

A)  matrix structure 
B)  conglomerate structure 
C)  functional structure 
D)  mechanistic structure

Question 6

The strategy of ________ involves an organization entering a new domain in which it can use one or more of its existing core competences to create a low-cost or differentiated competitive advantage in that new domain.

Accepted Answer

A)  cost leadership 
B)  related diversification 
C)  vertical integration 
D)  market penetration

Question 7

Which of the following terms refers to the pattern of decisions and actions that managers take to use core competences to achieve a competitive advantage and outperform competitors?

Accepted Answer

A)  product formation chain 
B)  PERT chart 
C)  strategy 
D)  value engineering

Question 8

What are the four levels of strategy?

Accepted Answer

The answer of What are the four levels of strategy?...

Question 9

According to ________ theory, an organization's design should permit each function to develop a structure that suits its human and technical resources.

Accepted Answer

A)  strategic choice 
B)  contingency 
C)  resource dependence 
D)  transaction cost

Question 10

A strategy in which an organization takes over and owns its distributors is known as backward vertical integration.

Accepted Answer

A) True 
 B)False

Question 11

A multidomestic strategy is oriented toward cost reduction, with all the principal value-creation functions centralized at the lowest cost global location.

Accepted Answer

A) True 
 B)False

Question 12

What are the two types of specialized resources that provide an organization with core competences? Explain with an example.

Accepted Answer

The answer of What are the two types of specialized...

Question 13

A steel producer implements a strategy to achieve economies of scale throughout its world operations. Which of the following structures should it adopt?

Accepted Answer

A)  global geographic 
B)  global product group 
C)  functional structure 
D)  multidivisional matrix

Question 14

A global matrix structure is most appropriate for a company pursuing a(n) ________ strategy.

Accepted Answer

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

Question 15

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

Accepted Answer

A)  market penetration 
B)  product development 
C)  unrelated diversification 
D)  vertical integration

Question 16

Typically, the manufacturing function in an organization uses an organic structure and decentralized decision-making.

Accepted Answer

A) True 
 B)False

Question 17

The strategy of related diversification involves an organization entering a new domain in which it can use one or more of its existing core competences to create a low-cost or differentiated competitive advantage in that new domain.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

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

Question 19

________ strategy involves specializing in one segment of a market and concentrating all of the organization's resources on that segment.

Accepted Answer

A)  Vertical integration 
B)  Diversification 
C)  Horizontal integration 
D)  Focus

Question 20

Business-level strategy is the responsibility of the top-management team.

Accepted Answer

A) True 
 B)False

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

Which of the following structures is the most appropriate for an organization that pursues a differentiation strategy?

The plant equipment possessed by a company is considered to be an organizational resource.

A retail clothing chain buys a real estate business and an investment banking firm. Which of the following structures is most appropriate for this organization?

Land is an example of a(n) ________.

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

The strategy of ________ involves an organization entering a new domain in which it can use one or more of its existing core competences to create a low-cost or differentiated competitive advantage in that new domain.

Which of the following terms refers to the pattern of decisions and actions that managers take to use core competences to achieve a competitive advantage and outperform competitors?

What are the four levels of strategy?

According to ________ theory, an organization's design should permit each function to develop a structure that suits its human and technical resources.

A strategy in which an organization takes over and owns its distributors is known as backward vertical integration.

A multidomestic strategy is oriented toward cost reduction, with all the principal value-creation functions centralized at the lowest cost global location.

What are the two types of specialized resources that provide an organization with core competences? Explain with an example.

A steel producer implements a strategy to achieve economies of scale throughout its world operations. Which of the following structures should it adopt?

A global matrix structure is most appropriate for a company pursuing a(n) ________ strategy.

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

Typically, the manufacturing function in an organization uses an organic structure and decentralized decision-making.

The strategy of related diversification involves an organization entering a new domain in which it can use one or more of its existing core competences to create a low-cost or differentiated competitive advantage in that new domain.

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

________ strategy involves specializing in one segment of a market and concentrating all of the organization's resources on that segment.

Business-level strategy is the responsibility of the top-management team.