Question 1

The integrated cost leadership/differentiation strategy is difficult to implement mostly because:

Accepted Answer

A)  different primary and support activities are emphasized when using cost leadership and differentiation strategies. 
B)  this strategic approach demands more flexibility than most firms can manage. 
C)  the dual reporting relationships required for this strategy slow organizational decision making. 
D)  the cost leadership strategy requires less structured job roles than does the differentiation strategy. 
A)  different primary and support activities are emphasized when using cost leadership and differentiation strategies. 
B)  this strategic approach demands more flexibility than most firms can manage. 
C)  the dual reporting relationships required for this strategy slow organizational decision making. 
D)  the cost leadership strategy requires less structured job roles than does the differentiation strategy.

Question 2

In the hybrid form of the combination structure, some divisions are oriented toward products while others are oriented toward market areas.

Accepted Answer

A) True 
 B)False

Question 3

Which organizational structure will emphasize financial controls for headquarters' evaluation of operating units while the operating units will emphasize strategic controls within their units' performance?

Accepted Answer

A)  Functional 
B)  Cooperative M-Form 
C)  SBU form 
D)  Competitive M-Form 
A)  Functional 
B)  Cooperative M-Form 
C)  SBU form 
D)  Competitive M-Form

Question 4

Organizational structure:

Accepted Answer

A)  specifies the firm's formal reporting relationships, procedures, controls, and authority and decision-making processes. 
B)  specifies the firm's informal reporting relationships, procedures, controls, and authority and decision-making processes. 
C)  specifies the firm's formal value proposition, the markets it will serve, and how the firm will provide value in those markets. 
D)  specifies the firm's control mechanisms, grievance procedures, reporting relationships, procedures, and authority over decision-making processes. 
A)  specifies the firm's formal reporting relationships, procedures, controls, and authority and decision-making processes. 
B)  specifies the firm's informal reporting relationships, procedures, controls, and authority and decision-making processes. 
C)  specifies the firm's formal value proposition, the markets it will serve, and how the firm will provide value in those markets. 
D)  specifies the firm's control mechanisms, grievance procedures, reporting relationships, procedures, and authority over decision-making processes.

Question 5

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

Accepted Answer

A)  it is difficult to achieve economies of scale. 
B)  the firm must develop centers to offer after-sales service to customers. 
C)  it is difficult to respond effectively to local market needs and preferences. 
D)  achieving economies of scale with this strategy/structure combination is nearly impossible. 
A)  it is difficult to achieve economies of scale. 
B)  the firm must develop centers to offer after-sales service to customers. 
C)  it is difficult to respond effectively to local market needs and preferences. 
D)  achieving economies of scale with this strategy/structure combination is nearly impossible.

Question 6

The integrated cost leadership/differentiation strategy needs structural features that are partially centralized and partially decentralized, jobs that are semi-specialized, and rules and procedures that call for some formal and some informal job behavior.

Accepted Answer

A) True 
 B)False

Question 7

Companies and business units using the differentiation strategy should emphasize financial rather than strategic controls.

Accepted Answer

A) True 
 B)False

Question 8

The selection of an organizational structure for an internationally diversified firm should consider the international corporate-level strategy the firm is using.

Accepted Answer

A) True 
 B)False

Question 9

The cooperative multidivisional firm:

Accepted Answer

A)  establishes profit centers based on products or markets. 
B)  has a flat organizational structure which broadens jobs and empowers workers. 
C)  has a structure organized around both functional specialization and business projects. 
D)  has a structure requiring heavy use of horizontal integrative devices. 
A)  establishes profit centers based on products or markets. 
B)  has a flat organizational structure which broadens jobs and empowers workers. 
C)  has a structure organized around both functional specialization and business projects. 
D)  has a structure requiring heavy use of horizontal integrative devices.

Question 10

As a firm grows, it typically shifts from a simple structure to a functional structure.

Accepted Answer

A) True 
 B)False

Question 11

RexMacDonald, Inc., uses a differentiation strategy that relies on cooperation, communication, and sharing of ideas among employees. In order to foster this behavior, RexMacDonald should emphasize strategic controls over financial controls.

Accepted Answer

A) True 
 B)False

Question 12

A worldwide geographic area structure is an organizational form in which:

Accepted Answer

A)  multiple alliances across the globe link complementary businesses. 
B)  standardized products are offered across country markets. 
C)  national interests dominate and management adapts to local or cultural differences. 
D)  responsiveness to local demand is combined with economies of scale. 
A)  multiple alliances across the globe link complementary businesses. 
B)  standardized products are offered across country markets. 
C)  national interests dominate and management adapts to local or cultural differences. 
D)  responsiveness to local demand is combined with economies of scale.

Question 13

Which of the following is NOT a variation of the multidivisional structure?

Accepted Answer

A)  Competitive form 
B)  Regional form 
C)  Cooperative form 
D)  Strategic business unit form 
A)  Competitive form 
B)  Regional form 
C)  Cooperative form 
D)  Strategic business unit form

Question 14

For firms in a vertical complementary alliance (such as between Toyota and its suppliers), it is more difficult to identify the strategic center firm than in a horizontal complementary alliance (for example, airline alliances).

Accepted Answer

A) True 
 B)False

Question 15

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.

Accepted Answer

A) True 
 B)False

Question 16

Airlines have forged a number of complementary strategic alliances, in part because many airlines are not profitable. Some airlines participate in several alliances simultaneously. This tends to:

Accepted Answer

A)  make the partners' true loyalties and intentions unclear. 
B)  make the role of the strategic center firms more critical to alliance success. 
C)  distribute the alliances along several segments of the airline industry value chain. 
D)  be most effective when the alliances are with airlines headquartered in different nations. 
A)  make the partners' true loyalties and intentions unclear. 
B)  make the role of the strategic center firms more critical to alliance success. 
C)  distribute the alliances along several segments of the airline industry value chain. 
D)  be most effective when the alliances are with airlines headquartered in different nations.

The integrated cost leadership/differentiation strategy is difficult to implement mostly because:

In the hybrid form of the combination structure, some divisions are oriented toward products while others are oriented toward market areas.

Which organizational structure will emphasize financial controls for headquarters' evaluation of operating units while the operating units will emphasize strategic controls within their units' performance?

Organizational structure:

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

The integrated cost leadership/differentiation strategy needs structural features that are partially centralized and partially decentralized, jobs that are semi-specialized, and rules and procedures that call for some formal and some informal job behavior.

Companies and business units using the differentiation strategy should emphasize financial rather than strategic controls.

The selection of an organizational structure for an internationally diversified firm should consider the international corporate-level strategy the firm is using.

The cooperative multidivisional firm:

As a firm grows, it typically shifts from a simple structure to a functional structure.

RexMacDonald, Inc., uses a differentiation strategy that relies on cooperation, communication, and sharing of ideas among employees. In order to foster this behavior, RexMacDonald should emphasize strategic controls over financial controls.

A worldwide geographic area structure is an organizational form in which:

Which of the following is NOT a variation of the multidivisional structure?

For firms in a vertical complementary alliance (such as between Toyota and its suppliers), it is more difficult to identify the strategic center firm than in a horizontal complementary alliance (for example, airline alliances).

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.

Airlines have forged a number of complementary strategic alliances, in part because many airlines are not profitable. Some airlines participate in several alliances simultaneously. This tends to:

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Strategic Leadership

Strategic Entrepreneurship

Filters

Exam 11: Organizational Structure and Controls

The integrated cost leadership/differentiation strategy is difficult to implement mostly because:

In the hybrid form of the combination structure, some divisions are oriented toward products while others are oriented toward market areas.

Which organizational structure will emphasize financial controls for headquarters' evaluation of operating units while the operating units will emphasize strategic controls within their units' performance?

Organizational structure:

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

The integrated cost leadership/differentiation strategy needs structural features that are partially centralized and partially decentralized, jobs that are semi-specialized, and rules and procedures that call for some formal and some informal job behavior.

Companies and business units using the differentiation strategy should emphasize financial rather than strategic controls.

The selection of an organizational structure for an internationally diversified firm should consider the international corporate-level strategy the firm is using.

The cooperative multidivisional firm:

As a firm grows, it typically shifts from a simple structure to a functional structure.

RexMacDonald, Inc., uses a differentiation strategy that relies on cooperation, communication, and sharing of ideas among employees. In order to foster this behavior, RexMacDonald should emphasize strategic controls over financial controls.

A worldwide geographic area structure is an organizational form in which:

Which of the following is NOT a variation of the multidivisional structure?

For firms in a vertical complementary alliance (such as between Toyota and its suppliers), it is more difficult to identify the strategic center firm than in a horizontal complementary alliance (for example, airline alliances).

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.

Airlines have forged a number of complementary strategic alliances, in part because many airlines are not profitable. Some airlines participate in several alliances simultaneously. This tends to:

Strategic Management and Strategic Competitiveness

The External Environment: Opportunities, Threats, Industry Competition, and Competitor Analysis

The Internal Organization: Resources, Capabilities, Core Competencies, and Competitive Advantages

Business-Level Strategy

Competitive Rivalry and Competitive Dynamics

Corporate-Level Strategy

Merger and Acquisition Strategies

International Strategy

Cooperative Strategy

Corporate Governance

Strategic Leadership

Strategic Entrepreneurship

Filters