Exam 11: Organizational Structure and Controls

ValCor's structure is made up of complex and flexible reporting relationships.The firm focuses on the marketing and product R&D functions.It is likely that ValCor employs the functional structure to implement the differentiation strategy.

Centralized and formalized procedures allow for greater flexibility, an important factor for firms using a cost leadership strategy.

Which M-form structure is the least centralized and has the lowest bureaucratic costs?

One of the primary disadvantages of the global strategy and worldwide product divisional structure is that:

Which of the following statements is true?

The multidivisional structure was initially designed to produce three major benefits over the functional form.Which of the following is NOT one of the three benefits?

Some experts consider the __________ structure to be one of the twentieth century's most significant organizational innovations because of its value to diversified firms.

Organizational structure specifies the firm's:

Highly formalized rules and procedures which often emanate from the centralized staff are a characteristic of the structure used to implement the cost leadership strategy.

The worldwide geographic area structure differs from the worldwide product divisional structure in the level of centralization of decision making.

DovBid sells non-standardized products to customers with unique needs.Because DovBid uses a differentiation strategy, it is likely that it will:

The benefits of a simple structure include all of the following EXCEPT:

Toyota and its suppliers have a relationship in which Toyota encourages suppliers to modernize their facilities and provides them with technical and financial assistance to do so.It also promotes longer-term contracts with suppliers and enables engineers in the supplier companies to have better communication with Toyota.This is an example of a(n):

If firms band together in a large number of vertical complementary strategic alliances, there is a danger that the government will suspect them of illegal collusive activities.

Firms implementing the multidomestic strategy often attempt to isolate themselves from global competitive forces by establishing protected market positions or by competing in industry segments that are most affected by differences among local countries.

Firms using the differentiation strategy need to respond quickly to environmental opportunities and threats.The structural features that are best for these requirements are centralization, specialization, and many rules and procedures.

There are three variations of the multidivisional structure.

The worldwide product divisional structure has centralized decision-making authority in the worldwide division headquarters to coordinate and integrate decisions and actions among business units.

To implement a related linked strategy, a firm usually needs a strategic business unit structure.

A firm pursuing an unrelated diversification strategy will most likely utilize a __________ structure.