Question 1

Which of the following statements is true regarding organizational culture?

Accepted Answer

A)  A competitor can easily imitate another organization's culture. 
B)  Culture is easy to control and manage. 
C)  Culture is embedded in the day-to-day interactions of functional personnel. 
D)  Culture cannot be a source of competitive advantage. 
A)  A competitor can easily imitate another organization's culture. 
B)  Culture is easy to control and manage. 
C)  Culture is embedded in the day-to-day interactions of functional personnel. 
D)  Culture cannot be a source of competitive advantage.

Question 2

A functional-level strategy is a plan to combine functional core competences in order to position the organization so that it has a competitive advantage in its domain.

Accepted Answer

A) True 
 B)False

Question 3

Explain how effective culture is an important source of competitive advantage?

Accepted Answer

A competitor can easily imitate another

Question 4

Which of the following structures is characterized by a small corporate headquarters staff?

Accepted Answer

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

Question 5

Organizations following a low-cost business-level strategy typically produce a wide range of products to suit the needs of different groups of customers.

Accepted Answer

A) True 
 B)False

Question 6

An organization's brand name is considered to be a functional resource.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is true regarding an organization following a low-cost strategy?

Accepted Answer

A)  Low-cost organizations typically use complex organizational structures. 
B)  Typically, low-cost organizations use centralized decision-making. 
C)  The organizational structure used by a low-cost organization generally has higher integration than that used by a differentiator. 
D)  An organic structure is more suitable for a low-cost organization than a mechanistic structure. 
A)  Low-cost organizations typically use complex organizational structures. 
B)  Typically, low-cost organizations use centralized decision-making. 
C)  The organizational structure used by a low-cost organization generally has higher integration than that used by a differentiator. 
D)  An organic structure is more suitable for a low-cost organization than a mechanistic structure.

Question 8

Explain the implementation of the multidomestic strategy of global expansion.

Accepted Answer

A multidomestic strategy is oriented tow

Question 9

Mercedes-Benz used its competences in R&D and product development to enter the household products and aerospace industries. This is an example of a(n) ________ strategy.

Accepted Answer

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

Question 10

Walmart specialize in selling low-price clothing to customers who want or can afford to pay only a modest amount for their attire and Neiman Marcus specializes in selling high-priced clothing made by exclusive designers to wealthy customers who want prestige or status. Based on this information we can conclude that ________.

Accepted Answer

A)  organizational structure of Walmart is taller than that of Neiman Marcus 
B)  Walmart and Neiman Marcus have chosen different domains in which to compete 
C)  Walmart has an organic structure and Neiman Marcus has a mechanistic structure 
D)  as compared to Walmart, Neiman Marcus operates in a more complex environment 
A)  organizational structure of Walmart is taller than that of Neiman Marcus 
B)  Walmart and Neiman Marcus have chosen different domains in which to compete 
C)  Walmart has an organic structure and Neiman Marcus has a mechanistic structure 
D)  as compared to Walmart, Neiman Marcus operates in a more complex environment

Question 11

What are the disadvantages of the global product-group structure?

Accepted Answer

The main failing of the global product-g

Question 12

Typically, the R&D function in an organization uses ________.

Accepted Answer

A)  centralized decision-making 
B)  a mechanistic structure 
C)  a high level of standardization 
D)  a flat organizational structure 
A)  centralized decision-making 
B)  a mechanistic structure 
C)  a high level of standardization 
D)  a flat organizational structure

Question 13

Coca-Cola uses its marketing skills to defend its niche against PepsiCo. This is an example of a ________ strategy.

Accepted Answer

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

Question 14

Which of the following statements is true regarding related diversification?

Accepted Answer

A)  The bureaucratic costs associated with managing related diversification are much greater than those associated with unrelated diversification. 
B)  Considerably more communication and coordination are needed to create value from unrelated diversification than from related diversification. 
C)  A functional structure is most suitable for an organization that is pursuing a strategy of related diversification. 
D)  If unrelated diversification is to provide the gains comparable to those obtained from related diversification, a much larger corporate headquarters staff is required to coordinate interdivisional activities. 
A)  The bureaucratic costs associated with managing related diversification are much greater than those associated with unrelated diversification. 
B)  Considerably more communication and coordination are needed to create value from unrelated diversification than from related diversification. 
C)  A functional structure is most suitable for an organization that is pursuing a strategy of related diversification. 
D)  If unrelated diversification is to provide the gains comparable to those obtained from related diversification, a much larger corporate headquarters staff is required to coordinate interdivisional activities.

Question 15

The need to coordinate and integrate global activities increases as a company moves from a transnational strategy to a multidomestic strategy.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following terms refers to a strategy in which an organization takes over and owns its suppliers or its distributors?

Accepted Answer

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

Question 17

Which of the following statements is true regarding a transnational strategy?

Accepted Answer

A)  A transnational strategy is focused on achieving both local responsiveness and cost reduction. 
B)  Typically, the organizational structure used by a company implementing a transnational strategy is less complex than that used by a company implementing a multidomestic strategy. 
C)  A transnational strategy does not require integration and coordination of activities on a global level. 
D)  A global geographic structure is typically used by a company that is implementing a transnational strategy. 
A)  A transnational strategy is focused on achieving both local responsiveness and cost reduction. 
B)  Typically, the organizational structure used by a company implementing a transnational strategy is less complex than that used by a company implementing a multidomestic strategy. 
C)  A transnational strategy does not require integration and coordination of activities on a global level. 
D)  A global geographic structure is typically used by a company that is implementing a transnational strategy.

Question 18

For a soft drinks company, which of the following will be considered forward vertical integration?

Accepted Answer

A)  establishing a company that manufactures and sells snack foods 
B)  buying a bottling and trucking company that distributes soft drinks 
C)  buying sugar plantations 
D)  taking over a company that provides software services 
A)  establishing a company that manufactures and sells snack foods 
B)  buying a bottling and trucking company that distributes soft drinks 
C)  buying sugar plantations 
D)  taking over a company that provides software services

Question 19

A computer manufacturer uses its competence in product design to produce laser printers. Which of the following strategies is being pursued by this company?

Accepted Answer

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

Question 20

Organizations with a strategy of unrelated diversification are likely to use a conglomerate structure.

Accepted Answer

A) True 
 B)False

Which of the following statements is true regarding organizational culture?

A functional-level strategy is a plan to combine functional core competences in order to position the organization so that it has a competitive advantage in its domain.

Explain how effective culture is an important source of competitive advantage?

Which of the following structures is characterized by a small corporate headquarters staff?

Organizations following a low-cost business-level strategy typically produce a wide range of products to suit the needs of different groups of customers.

An organization's brand name is considered to be a functional resource.

Which of the following statements is true regarding an organization following a low-cost strategy?

Explain the implementation of the multidomestic strategy of global expansion.

Mercedes-Benz used its competences in R&D and product development to enter the household products and aerospace industries. This is an example of a(n) ________ strategy.

What are the disadvantages of the global product-group structure?

Typically, the R&D function in an organization uses ________.

Coca-Cola uses its marketing skills to defend its niche against PepsiCo. This is an example of a ________ strategy.

Which of the following statements is true regarding related diversification?

The need to coordinate and integrate global activities increases as a company moves from a transnational strategy to a multidomestic strategy.

Which of the following terms refers to a strategy in which an organization takes over and owns its suppliers or its distributors?

Which of the following statements is true regarding a transnational strategy?

For a soft drinks company, which of the following will be considered forward vertical integration?

A computer manufacturer uses its competence in product design to produce laser printers. Which of the following strategies is being pursued by this company?

Organizations with a strategy of unrelated diversification are likely to use a conglomerate structure.

Organizations and Organizational Effectiveness

Stakeholders, Managers, and Ethics

Organizing 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

Organizational Design, Competences, and Technology

Types and Forms of Organizational Change

Organizational Transformations: Birth, Growth, Decline, and Death

Decision Making, Learning, Knowledge Management, and Information Technology

Innovation, Intrapreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters

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

Which of the following statements is true regarding organizational culture?

A functional-level strategy is a plan to combine functional core competences in order to position the organization so that it has a competitive advantage in its domain.

Explain how effective culture is an important source of competitive advantage?

Which of the following structures is characterized by a small corporate headquarters staff?

Organizations following a low-cost business-level strategy typically produce a wide range of products to suit the needs of different groups of customers.

An organization's brand name is considered to be a functional resource.

Which of the following statements is true regarding an organization following a low-cost strategy?

Explain the implementation of the multidomestic strategy of global expansion.

Mercedes-Benz used its competences in R&D and product development to enter the household products and aerospace industries. This is an example of a(n) ________ strategy.

What are the disadvantages of the global product-group structure?

Typically, the R&D function in an organization uses ________.

Coca-Cola uses its marketing skills to defend its niche against PepsiCo. This is an example of a ________ strategy.

Which of the following statements is true regarding related diversification?

The need to coordinate and integrate global activities increases as a company moves from a transnational strategy to a multidomestic strategy.

Which of the following terms refers to a strategy in which an organization takes over and owns its suppliers or its distributors?

Which of the following statements is true regarding a transnational strategy?

For a soft drinks company, which of the following will be considered forward vertical integration?

A computer manufacturer uses its competence in product design to produce laser printers. Which of the following strategies is being pursued by this company?

Organizations with a strategy of unrelated diversification are likely to use a conglomerate structure.

Organizations and Organizational Effectiveness

Stakeholders, Managers, and Ethics

Organizing 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

Organizational Design, Competences, and Technology

Types and Forms of Organizational Change

Organizational Transformations: Birth, Growth, Decline, and Death

Decision Making, Learning, Knowledge Management, and Information Technology

Innovation, Intrapreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters