man4720 ch 11 quiz

Walmart's effective strategy/structure configuration is a. cost leadership/functional. b. differentiation/functional. c. related-constrained/multidivisional. d. related-linked/multidivisional.

a. cost leadership/functional.

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

a. firms must be flexible while retaining a degree of stability.

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 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.

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 a. reduce transaction costs. b. increase negotiating leverage with suppliers. c. become less dependent on its suppliers. d. move toward horizontal alliances with its suppliers.

a. reduce transaction costs.

A firm's ____ specifies the work to be done and how to do it given the firm's strategy or strategies. a. structure b. controls c. culture d. strategy

a. structure

A firm pursuing an unrelated diversification strategy will utilize a ____ structure. a. network b. cooperative form multidivisional c. competitive form multidivisional d. functional

c. competitive form multidivisional

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

c. coordination and control problems.

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

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

successfully implementing a cost leadership strategy requires freedom from constraining rules centralization of authority communication between functional silos sharing of competencies among divisions

centralization of authority

one disadvantage of the functional structure is that career paths and professional development are limited dual reporting relationships blur lines of authority the ceo cannot coordinate and control the efforts of functional level employees communication and coordination are difficult among organizational functions

communication and coordination are difficult among organizational functions

LG Company has units operating in significantly different industries and uses financial controls to manage its portfolio. LG is MOST likely using the __________ structure. combination cooperative form of the multidivisional competitive form of the multidivisional strategic business unit multidivisional

competitive form of the multidivisional

the ____ structure is best for implementing the related constrained diversification strategy functional competitive form of the multidivisional sbu form of the multidivisional cooperative form of the multidivisional

cooperative form of the multidivisional

The most centralized and most costly form of the multidivisional structure is the a. integrated. b. competitive. c. SBU. d. cooperative.

d. cooperative.

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 company to have better communication with Toyota. This is an example of a(an): a. worldwide product divisional structure. b. functional structure. c. SBU multidivisional structure. d. strategic network.

d. strategic network.

the best multidivisional structure to use is the competitive form is the SBU form is the cooperative form depends on the degree of diversification

depends on the degree of diversification

the integrated cost leadership/differentiation strategy is difficult to implement mostly because different primary and support activities are emphasized when using cost leadership and differentiation strategies this strategic approach demands more flexibility than most firms can manage the dual reporting relationships required for this strategy slow organizational decision making the cost leadership strategy requires less structured job roles than does the differentiation strategy

different primary and support activities are emphasized when using cost leadership and differentiation strategies

organizational structure specifies the firms formal reporting relationships, procedures, controls, and authority and decision making processes informal reporting relationships, procedures, controls, and authority and decision making processes formal value proposition, the markets it will serve, and how the firm will provide value in those markets control mechanisms, grievance procedures, reporting relationships, procedures, and authority over decision making processes

formal reporting relationships, procedures, controls, and authority and decision making processes

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

intermediation

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

a private university is made up of various schools, such as the school of journalism, the school of business, the school of law, and the school of arts and sciences and so forth. the university is experiencing some financial problems, so the administration has decided to have each school of the university become a profit center. this scheme is somewhat parallel to the _____ organizational structure network strategic business unit multidivisional functions matrix

strategic business unit multidivisional