Question 1

An organization will need to flatten its hierarchy when it moves from a global__________ structure to a global _________structure.

Accepted Answer

A)  geographic/ multidivisional matrix
B)  matrix/product group
C)  product group/matrix
D)  geographic/product group C

Question 2

A __________ strategy is a plan whereby an organization produces high- priced, quality products aimed at particular market segments.

Accepted Answer

A)  differentiation business- level
B)  environmental
C)  low- cost business- level
D)  global A

Question 3

A company pursuing unrelated diversification has many coordination problems because divisions refuse to share information with each other.

Accepted Answer

A) True 
 B)False  False

Question 4

A software company operates in a dynamic environment; getting products to the market quickly is the way to achieve competitive advantage. How can this company match strategy, structure, and culture to achieve a competitive advantage?

Accepted Answer

The answer of A software company operates in a dynamic...

Question 5

Which of the following strategies generally requires the most integration?

Accepted Answer

A)  Differentiation
B)  Focus
C)  Long- term contracts
D)  Low- cost

Question 6

Which function typically has the most organic structure?

Accepted Answer

A)  R&D
B)  Manufacturing
C)  Sales
D)  Materials management

Question 7

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

Accepted Answer

A)  Product division
B)  Matrix
C)  Product team
D)  Conglomerate

Question 8

Differentiated companies operate in a more dynamic environment than low- cost organizations.

Accepted Answer

A) True 
 B)False

Question 9

A __________ strategy is often used for cars, stereos, cameras, and television because of product standardization and low price.

Accepted Answer

A)  contingency
B)  transnational
C)  diversification
D)  product development

Question 10

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_________ strategy.

Accepted Answer

A)  marketing
B)  corporate- level
C)  business- level
D)  development

Question 11

A company that pursues a(n)__________ strategy will have a tall, highly centralized structure.

Accepted Answer

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

Question 12

A_________ structure creates product group headquarters to coordinate the activities of the domestic and foreign divisions within each product.

Accepted Answer

A)  global learning
B)  product team
C)  geographic
D)  global product group

Question 13

Unrelated diversification is characterized by all of the following except:

Accepted Answer

A)  relatively high bureaucratic costs.
B)  maintaining a small corporate headquarters' staff.
C)  evaluating divisions on a profit basis.
D)  restructuring inefficient units.

Question 14

A(n)_________strategy is a plan that offers global customers a standardized product and allows foreign divisions to adapt products only slightly to local preferences.

Accepted Answer

A)  international
B)  decentralized
C)  environmental
D)  related diversification

Question 15

An organization's choice of _________determines which companies it will compete with directly.

Accepted Answer

A)  organizational strategy
B)  organizational structure
C)  organizational culture
D)  interorganizational strategies

Question 16

An organization's brand name is considered to be an organizational resource.

Accepted Answer

A) True 
 B)False

Question 17

In a __________, each business is placed in a self- contained division and there is no contact between divisions.

Accepted Answer

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

Question 18

Which of the following strategies most helps a company to avoid the problem of opportunistic suppliers?

Accepted Answer

A)  Product development
B)  Vertical integration
C)  Global expansion
D)  Related diversification

Question 19

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_________ strategy.

Accepted Answer

A)  value creation
B)  educational
C)  environmental
D)  business- level

Question 20

In a global matrix structure, which of the following managers are responsible for coordinating resource transfers from corporate headquarters to foreign divisions?

Accepted Answer

A)  Product group managers
B)  Individual business division managers
C)  Corporate headquarters staff
D)  World area managers

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

An organization will need to flatten its hierarchy when it moves from a global__ structure to a global _structure.