MAN Exam

Which of the following is NOT a preliminary task of the strategic center firm in a strategic network? Strategic outsourcing Encouraging friendly rivalry among network members Allocating internal capital Supporting development of new core competencies

Allocating internal capital

__________ is the degree to which rules and procedures govern work. Formalization Centralization Specialization Unification

Formalization

Firms such as Textron Inc. that frequently acquire and divest other firms are MOST likely to use the __________ structure. matrix competitive multidivisional hybrid combination horizontal complementary strategic alliance

competitive multidivisional

The noted business historian Alfred Chandler viewed the multidivisional structure as an innovative response to: an emerging professional management philosophy. the increasing demand by consumers for both high quality and low prices. coordination and control problems. a shift toward the global economy.

coordination and control problems.

Walmart's effective strategy/structure configuration is: cost leadership/functional. differentiation/functional. related constrained/multidivisional. related linked/multidivisional.

cost leadership/functional.

Selecting the organizational structure and controls that effectively implement the chosen strategy is a challenge for managers because: firms must be flexible while retaining a degree of stability. managers are never able to obtain all the information necessary to make the best selection. the structure of a firm should not duplicate the structures of its competitors. the environment changes too rapidly for corporations to maintain a consistent corporate structure.

firms must be flexible while retaining a degree of stability.

The cooperative multidivisional firm: establishes profit centers based on products or markets. has a flat organizational structure that broadens jobs and empowers workers. has a structure organized around both functional specialization and business projects. has a structure requiring heavy use of horizontal integrative devices.

has a structure requiring heavy use of horizontal integrative devices.

The three structural characteristics that differ among organizational structures include all of the following EXCEPT: centralization. formalization. specialization. intermediation.

intermediation.

One of the primary disadvantages of the global strategy and worldwide product divisional structure is that: it is difficult to achieve economies of scale. the firm must develop centers to offer after-sales service to customers. it is difficult to respond effectively to local market needs and preferences. achieving economies of scale with this strategy/structure combination is nearly impossible.

it is difficult to respond effectively to local market needs and preferences.

Galatea Foods was founded in Greece by Galatea Chronos in 1978, and the company spread rapidly through Western Europe. Ms. Chronos retains the office of CEO. The Spanish division is headed by her oldest son. The North European division is headed by her only daughter, and the French-Italian division is headed by Ms. Chronos' brother. This company probably uses the __________ strategy. network multidomestic global transnational

multidomestic

A worldwide geographic area structure is an organizational form in which: multiple alliances across the globe link complementary businesses. standardized products are offered across country markets. national interests dominate and management adapts to local or cultural differences. responsiveness to local demand is combined with economies of scale.

national interests dominate and management adapts to local or cultural differences.

Firms seeking to differentiate particularly need support from the __________ and __________ functions. finance; accounting engineering; operations product R&D; marketing management information; finance

product R&D; marketing

After years of negotiating short-term contracts with its suppliers, Icon Images has decided to agree to longer-term contracts. In doing this, Icon Images is hoping to: reduce transaction costs. increase negotiating leverage with suppliers. become less dependent on its suppliers. move toward horizontal alliances with its suppliers

reduce transaction costs.

Functional structures work best for firms for all of the following EXCEPT: cost leadership strategy. differentiation strategy. related constrained diversification strategy. single or dominant business corporate strategy.

related constrained diversification strategy.

Andermeyer Jewelers, which specializes in high-end jewelry, has been in existence since the 1870s and has served generations of wealthy families. Owned and managed by the Andermeyer family since its founding, it has never had more than 20 designers and jewelers in its shop. Andermeyer Jewelers should use the __________ structure. simple functional matrix network

simple

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): worldwide product divisional structure. functional structure. SBU multidivisional structure. strategic network.

strategic network.