Strat Management Ch 11

______ is the degree to which rules and procedures govern work

Formalization

Which of the following multidivisional structures is CORRECTLY paired with the appropriate corporate-level strategy?

SBU form with related-linked strategy

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

Which of the following is NOT a preliminary task of the strategic center firm in a strategic network?

allocating internal capital

One disadvantage of the functional structure is that

communication and coordination are difficult among organizational functions

The ______ structure is best for implementing the related-constrained diversification strategy

cooperative form of the multidivisional

Cisco used the ______ structure to implement its ______ strategy

cooperative form of the multidivisional; related constrained

The BEST multidivisional structure to use

depends on the degree of diversification

A firm pursuing a related constrained diversification strategy would typically need all of the following EXCEPT

division managers' rewards based on division financial performance

Implementing the multidomestic strategy requires decentralization to

facilitate the tailoring of products to the demand in local markets

In the competitive form of the multidivisional structure, the focus of headquarters is on all of the following EXCEPT

integration.

Toyota heavily uses a strategic network of vertical relationships. Toyota enables engineers in supplier firms to communicate easily with companies with which Toyota has contracts for services. This results in the suppliers and Toyota (the strategic center firm) being more

interdependent

Some experts consider the ______ structure to be one of the 20th century's most significant organizational innovations because of its value to diversified firms

multidivisional

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

potential for global efficiency

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

Functional structures work best for firms for all of the following strategies EXCEPT

related constrained diversification strategy

The benefits of a simple structure include all of the following EXCEPT

the ability of specialists to develop deep expertise