MAN4720 Quiz 11

division managers' rewards based on division financial performance

A firm pursuing a related constrained diversification strategy would typically need all of the following EXCEPT: -centralization of some organizational functions for the sake of coordination. -frequent, direct contact between division managers. -division managers' rewards based on division financial performance. -temporary teams or task forces formed around specific projects.

?SBU

As illustrated by Textron Inc., when a firm uses the ___ structure hierarchy, the headquarters might rely on strategic controls to set rate-of-return targets and financial controls to monitor divisional performance relative to those targets and then allocate cash flow to the different divisions accordingly

transnational, combination

IKEA is a global furniture retailer with more than 300 outlets in 39 countries and regions. IKEA focuses on lowering its costs as well as understanding customer needs, especially younger ones. IKEA's international strategy is best described as ___, and the appropriate organizational structure to implement this strategy is the ___ structure.

hybrid combination

Ichabod Industries has a Latin American Division, a European Division, an Industrial Lubricants Division, and a Food Service Division. Ichabod Industries probably uses the ___ organizational structure

facilitate the tailoring of products to the demand in local markets

Implementing the multidomestic strategy requires decentralization to:

vertical complementary strategic alliances

It is easiest to identify the company that functions as the strategic center firm in:

strategic network

McDonald's operates through a franchising system wherein the head office uses strategic and financial controls to ensure that the franchises are creating the greatest possible value. This is an example of a(n):

firms must be flexible while retaining a degree of stability

Selecting the organizational structure and controls that effectively implement the chosen strategy is a challenge for managers because:

examine the fit between what the firm might do and what it can do

Strategic controls allow corporate-level managers to:

decreasing communications between network members to reduce communication costs

The center firm in a strategic network of vertical relationships might be expected to undertake all of the following EXCEPT: -reducing its transaction costs by promoting longer-term contracts with subcontractors. -enabling engineers in upstream companies to have better communication with those companies with which it has contracts for services. -encouraging subcontractors to modernize their facilities and providing them with technical and financial assistance to do so. -decreasing communications between network members to reduce communication costs.

has a structure requiring heavy use of horizontal integrative devices

The cooperative multidivisional firm:

cooperative, economies of scope

The heavy use of integrative mechanisms in the ___ multidivisional organizational structure is intended to achieve ___.

Aligning the corporate structure with the demands of global expansion

The multidivisional structure was initially designed to produce three major benefits over the functional form. Which of the following is NOT one of the three benefits? -Aligning the corporate structure with the demands of global expansion -More accurate monitoring of the performance of each business -Facilitating comparison between divisions -Stimulating managers of poorly performing divisions to look for ways of improving performance

coordination and control problems

The noted business historian Alfred Chandler viewed the multidivisional structure as an innovative response to:

potential for global efficiency

The primary disadvantage of the multidomestic strategy and worldwide geographic area structure relates to limited:

cost leadership/functional

Walmart's effective strategy/structure configuration is:

?Competitive

Which M-form structure is the least centralized and has the lowest bureaucratic costs?

Firms pursuing a related constrained strategy should implement a cooperative structure, use integrative devices to link divisions, centralize the R&D function, and emphasize sharing

Which of the following statements about implementing corporate-level strategies and effective organizational structures is true?

B) A differentiation strategy requires a functional structure with limited formalization, broad job descriptions, and an emphasis on the product R&D and marketing functions

Which of the following statements about organizational structures for implementing business-level strategies is true? -A cost leadership strategy requires a simple structure emphasizing high specialization, centralization, and structured job roles. -A differentiation strategy requires a functional structure with limited formalization, broad job descriptions, and an emphasis on the product R&D and marketing functions. -An integrated cost leadership/differentiation strategy requires a multidivisional structure using high formalization, decentralized decision making, and vertical coordination. -A focused strategy requires a functional structure featuring high levels of both specialization and formalization.

Formalization

___ is the degree to which rules and procedures govern work