Chapter 11 matty Black

________ decision making occurs at a high organizational level in one location, such as an organization's headquarters.

Centralized

Which of the following is a disadvantage of a company with an international area structure?

Cross-fertilization of knowledge from one unit to another may be less than desirable.

A differentiation strategy is often implemented when a company wants to exploit economies of scale to have the lowest cost structure.

False

A focus strategy works best with mass-marketed products aimed at price-sensitive buyers.

False

A global matrix structure is an organizational structure that divides worldwide operations according to a company's product areas.

False

A joint venture is an example of a retrenchment strategy of an organization.

False

A main goal of the global product structure is to bring together geographic and product area managers in joint decision making.

False

A multinational strategy is best suited to industries in which price competitiveness is a key success factor.

False

A multinational strategy is most appropriate for companies that do not have foreign direct investments but rather export their products to foreign markets.

False

An international area structure separates domestic from international business activities by creating a separate international division with its own manager.

False

Centralized decision making is beneficial when fast-changing national business environments put a premium on local responsiveness.

False

Customer service is an example of a support activity in the value chain of an organization.

False

Free-market economies tend to levy high taxes on business profits whereas socialist economic systems normally levy lighter taxes.

False

Technology development is an example of a primary activity in the value chain of an organization.

False

The closing of factories with unused capacity is an example of a stability strategy.

False

The main benefit of a global strategy is that it allows companies to monitor buyer preferences closely in each local market.

False

The main purpose of self-managed teams is to help break down barriers between departments.

False

The scope of a corporation's operations refers to the size of its operations.

False

Which of the following statements is true of objectives?

Objectives become more precise at the level of individual departments.

________ is the process of identifying and selecting an organization's objectives and deciding how the organization will achieve those objectives.

Planning

________ teams are self-managed teams that help reduce waste in the production processes of many manufacturing companies.

Quality-improvement

A growth strategy is designed to increase the scale or scope of a corporation's operations.

True

A low-cost leadership strategy typically requires a company to have a large market share.

True

A multinational strategy entails having a separate strategy for each nation in which a company markets its products.

True

A negative aspect of a low-cost leadership strategy is low customer loyalty.

True

An international division structure reduces the authority of country managers in an organization's subsidiaries.

True

Core competencies are developed by organizations over long periods of time.

True

Decentralization can help foster participative management practices.

True

Support activities assist companies in performing their primary activities.

True

The purpose of a combination strategy is to mix growth, retrenchment, and stability strategies across a corporation's business units.

True

________ is the process of dividing a company's activities into primary and support activities and identifying those that create value for customers.

Value-chain analysis

The lines of authority in an organization that run from top management to individual employees and specify internal reporting relationships is called ________.

chains of command

Which of the following is a special ability of a company that competitors find extremely difficult to equal?

core competency

Companies involved in more than one line of business must first formulate a ________ strategy.

corporate-level

A ________ team is one composed of employees who work at similar levels in different operative departments in an organization.

cross-functional

The objectives at the ________ of an organization are typically more precise and contain numerical targets of performance.

department-level

Which of the following business-level strategies should a company follow in order to charge a higher price for its products and enjoy greater customer loyalty?

differentiation strategy

The main drawback of a multinational strategy is that it does not allow a company to ________.

exploit scale economies in product development or marketing

All parties ranging from suppliers and employers to consumers who are affected by a company's activities are called its stockholders.

false

Core competencies of organizations are the special skills of certain employees that give a company an edge over other organizations

false

Objectives at the highest level in a company are always stated in the most specific terms.

false

Decentralized decision making is beneficial when ________.

fast-changing national business environments put a premium on local responsiveness

A ________ strategy is one in which a company emphasizes on serving the needs of a narrowly defined market segment by being the low-cost leader, differentiating its product, or both.

focus

Organic growth refers to an organization's corporate strategy that relies on growth ________.

generated internally

An organizational structure that splits the chain of command between product and area divisions is referred to as a(n) ________ structure.

global matrix

A team of top managers from both headquarters and international subsidiaries who meet to develop solutions to company-wide problems is referred to as a ________ team.

global team

Which of the following strategies is designed to increase the scale or scope of a corporation's operations?

growth strategy

Which of the following is the first stage of the strategy-formulation process?

identification of company mission and goals

A growth strategy is designed to ________.

increase the scale or scope of a corporation's operations

A(n) ________ structure separates domestic from international business activities by creating a separate global branch with its own manager.

international division

Which of the following strategies works best for an organization that practices mass production and mass-marketing?

low-cost leadership strategy

Which of the following is considered as a primary activity in an organization?

marketing and sales

Which of the following refers to a written statement of why a company exists and what it plans to accomplish?

mission statement

A ________ strategy typically increases the cost structure for international companies and forces them to charge higher prices to recover such costs.

multidomestic

Which of the following strategies is appropriate for companies in industries where buyer preferences do not converge across national borders?

multidomestic strategy

Adapting products and their marketing strategies in each of the national markets of a company to suit local preferences is called a ________ strategy.

multinational

The way in which a company divides its activities among separate units and coordinates activities among those units is referred to as ________.

organizational structure

According to value-chain analysis, inbound and outbound logistics are considered as ________.

primary activities

Which of the following is considered as a support activity in an organization?

procurement

A company that is closing factories with unused capacity and laying-off workers is most likely following a ________ strategy.

retrenchment

The main benefit of a global strategy is that it allows a company to ________.

save costs due to product and marketing standardization

A team in which employees from a single department take on responsibilities of their former supervisors is called a ________ team.

self-managed

Which of the following strategies is designed to guard an organization against change?

stability strategy

A ________ is a set of planned actions taken by managers to help a company meet its objectives

strategy

Strategy is the set of planned actions that managers take to help a company meet its objectives.

true