MGMT 310 exam 2 topcoat, and quizzes
economies of scale can permit a a firm to pursue what type of strategy
cost leadership strategy
The process by which managers transfer decision rights to individual employees is known as
delegation
A firm can become more customer-centric by
developing a cooperative environment in which workers are given incentives for working across silos to deliver customer solutions.
connecion involves
developing relationships with parties outside a firm to increase the value of the firm's offerings. Capability development
when senior managers do long range planning they are participating in
firm infrastructure, or the general management activities of the organization.
examples of intangible resources
firms culture, brand names and internal systems
levision sets, it would be engaged in
forward integration
During acquisitions and mergers, the most challenging goal to meet is to
fully merge the two cultures into a new one. With regard to culture, the most challenging goal in a merger or acquisition is truly merging the cultures of the two organizations into a new one.
Small organizations are often well served by what structure in which employees are grouped by what they do—for example, by research and development, engineering, accounting, sales, and customer relations.
functional structure
SWOT analysis is a tool that allows the managers of a firm to
get an overview of the firm's internal strengths and weaknesses and predict external threats and opportunities.
firms invest in what by offering excellent pay and benefits
human resources
tangible resources are
inanimate things and annot be touched or easily quantified
primary activities
inbound logistics, operations, outbound logistics, marketing and sales, service
artifacts of an organization are
include the company's visible products, language, technology, and observable rituals. its visible organizational structures, processes, and languages.
Strengths and weaknesses are what to the organization
internal
If you feel committed to the Challenge for Charity Group because the organization's values align with your own, then you are in the what stage of commitment.
internalization
financial economies
involve(s) the cost savings that a firm achieves through the distribution of capital among different business units. Financial economies can be achieved by efficiently allocating capital among units and by purchasing a new business and restructuring its assets with the goal of selling it back into the marketplace at a higher price.
cost leadership
is a strategy that aims to provide a product or service at the lowest price to a broad audience.
bureaucratic approach
is an extreme form of control in which systems are highly formalized and are characterized by extensive rules, procedures, policies, and instructions
diversification
is defined as a strategy in which a firm engages in several different businesses that may or may not be related in order to create more value than if the businesses existed as stand-alone entities.
outbound logistics
is the same set of tasks as inbound logistics but used for completed products, such as finished hamburgers. Delivering food orders by carhop is an example of outbound logistics, or activities involved with collecting, storing, and physically distributing final products to customers.
One advantage of related diversification is
it allows for the sharing of resources among business units.
when there is potential for new market entrants, barriers are
low
supply side of economies of scale arise when a firm
manufactures products in high volumes, resulting in lower production costs.
inbound logistics involves
materials handling, warehousing, and inventory control for the supplies (meat and vegetables) that will eventually become company products (hamburgers). Inbound logistics are activities related to storing and distributing the items needed to create a product, while operations involve actually making the product. the process of handling supplies before they are turned into products.
a corporate advantage occurs when a firm
maximizes its resources to build a competitive advantage across its various business lines.
When competitive rivalry, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and the number of new entrants into a business are all low, a business ismore Correct likely to be more or less successful.
more
During the 1990s, consumers started to drink bottled water instead of soft drinks. The Coca-Cola Company and PepsiCo decided to change their product lineup to include water products, indicating what on the part of both companies.
strategic flexibility
Cultures that form around geographic or organizational units in a company are called
subcultures form around geographical, product, or functional subunits within the organization.
if a company has what of 2 things it will eliminate some barriers of entry
superior technology or materials to accesss to open distribution channels
Deelited Inc. is a company that manufactures soft toys for children. The company operates on a very large scale, and this has enabled it to price its toys at competitive rates while still retaining good product quality. Since it is extremely difficult for a new entrant to sell toys at such low prices, few competitors have emerged for Deelited in the past five years. In this case, the low threat that Deelited Inc. faces from new entrants can be attributed to
supply side economies of scale
disadvantage of a functional organizational structure
t is not suited to deal with the environmental changes in an organization.
Which of the following functions is a support activity of a firm?
technology development
when the suppliers products are largely undifferentiated the buyer has the power to
the buyer has the power to force down prices in the industry.
strategic flexibility
the capability to identify and react to changes in the external environment (changes in drink preferences) and mobilize internal resources to deal with those changes (by creating new products).
In a formal organization, the backbone of culture generally begins with
the founder of the organization. A founder usually comes to the organization with a strong set of assumptions and infuses them into the group.
if a company can negotiate from a strong position with suppliers bargaining power may overcome costs of equipment and technology,but it will not overcome
the power of strong competitors
socialization is the process of what
the process of understanding how work gets done and how individuals should interact in an organization.
The choice between related or unrelated diversification often results from an assessment of
the resources of the firm
A buyer will have high bargaining power relative to a supplier when
the supplier's products are largely undifferentiated.
clan approach is good when
theres a high need for creativity and a turbulent changing environment. It uses self-motivated, self-managing employee teams and are particularly effective when work activities are difficult to measure.
start up
1. opportunity identification, focus on innovation, access to capital
growth
2. efficiency, standardization, consolidation and control, protection of the status quo
decline
3. cost management, realignment, restructuring
An organizational structure characterized by formal structures that control employee behavior in a top-down, hierarchical fashion is known as a
A centralized organization is characterized by formal structures that control employee behavior by concentrating decisions in a top-down, hierarchical fashion.
focus strategy
A focus strategy means concentrating on a specific customer, geographic region, or product; Coke and Pepsi did not pursue a focus strategy by expanding their product line and seeking customers with different tastes.
hich of the following is a consequence of having a strong organizational culture?
A strong culture can make adapting to change more difficult, especially if a focus on adaptability is not a core part of the company's culture.
What problem might the CEO expect if the company switches to a network structure?
Accountability for results may be more difficult to enforce.
Which of the following is an example of an intangible resource of a firm?
Brand nam
how does a manager know whether the company meets the better off test after diversification
By analyzing distribution of capital across business units. By determining whether the company is selling its products or licensing them to other businesses. By analyzing the company's sales in new markets. By measuring economies of scope
clout
Clout involves delegating decision rights to customer-facing functions and employees, who often have the most information about the customer. In this case, repair technicians know a lot about what parts are most needed, and giving them the authority to order parts will reduce delays in customer service.
cooperation
Cooperation involves changing the organization's culture and implementing incentives to help employees focus on customers. Bringing up the customer in all meetings is one way of changing the focus of the company's culture.
coordination
Coordination involves setting up an organizational structure that supports links between silos. This allows employees to work together more closely and to serve customers more effectively. A cross-functional group is an example of an organizational structure that brings employees from different silos together. Focusing these employees on the customer helps to make sure the company as a whole is more customer-centric.
Which of the following factors discourages the entry of new players into a market by reducing consumers' preference to purchase from them?
Demand-side benefits of scale
At C & J Construction, CEO Charlie and vice president Janice have traditionally made most of the key decisions. However, they are considering decentralizing the firm's decision making. Which of the following is a problem that may result?
Employees at lower levels in the firm may make decisions that benefit themselves or their customers but not the department or company.
capability development
Employees need the skills—the capability—to better serve customers. These can be technical skills as well as soft skills such as the ability to communicate effectively with employees in different areas of the company. Capability can be developed both through formal training and the informal training that occurs as a person moves from job to job during a career. Having employees hear presentations from staff in other departments and then getting to ask questions will increase their knowledge of the organization and their ability to serve customers more effectively.
barriers to entry include
Equipment costs, advanced technology, and formidable competitors
disadvantages of vertical integration
Higher marketing costs Harder to achieve differentiation in all business areas Higher administrative costs Supplier of clay may become less efficient
apple management decided to recruit employees with specific skills and knowledge. Which question did managers answer to determine this strategy?
How will we provide this product? Apple's management asked how the company would provide electric vehicles. They determined that they needed to hire expert talent developed at other companies in this industry.
Which of the following is a valid difference between a divisional and a functional organizational structure?
In divisional structures, core functions are often duplicated in each division.
Which of the following statements is true of a clan approach to control?
It is ideal for organizations that have constantly changing environments
which of the following is a disadvantage of vertical integration
Lack of strategic flexibility
if you decide to focus on your ( ) you will choose to open another coffee shop in a different neighborhood
core business
connection
Making connections means restructuring the organization's boundaries, bringing customers inside the company and sending employees outside the company to interact with customers. By encouraging employees to spend time in the fitness centers where they will observe end users interacting with your products and see equipment made by other manufacturers, you increase the connection between employees and customers, which can increase your firm's competitive advantage.
what is true of a differentiation strategy
Multiple firms can simultaneously compete based on differentiation in an industry.
SWOT stands for
Strengths, Weakness, Opportunities, and Threats
which of the following is true of organizational culture
The power structure of a company can help one decipher its culture. Identifying the rules for achieving, keeping, and losing power helps one understand the group's assumptions about what is and is not appropriate.
ownership test
The test that a manager can use to determine whether a firm should undertake an acquisition involves two components—a better-off test and a(n)
when a company has (what), different groups have more or less difficulty collaborating, and the firm may be less customer-centric.
When a company hasstrong subcultures , different groups have more difficulty collaborating, and the firm may be less customer-centric.
a network is
a dynamic way of aligning knowledge workers, individually or in groups, with specific projects as needed. As projects end and begin, employees are reassigned and have new managers. Employees are brought together to work on a project from across functional specialties.
Intangible resources include
a firm's internal processes, brand names, technology, culture, and intellectual property.
differentiation
a strategy in which a firm seeks to be unique in its industry along a dimension or a group of dimensions that is valued by consumers.
As Uniqlo continues to open new stores, it must pay attention to which clothes it is selling in these new markets. A primary concern for Uniqlo managers is whether Uniqlo's clothes are valued by their clients. At Uniqlo, clothing is what resource
a tangible resource
examples of people who handle support activities
accountants who handle corporate finances. They provide the support necessary for the primary activities, such as product manufacturing and sales, to occur. Other examples of support activities are typically the human resources, IT, and legal functions.
Backward integration is the strategy of
acquiring suppliers of inputs to the firm's production.
which is an advantage of vertical integration
advantage to vertical integration is improved coordination.
Recently, you began work as an auto mechanic. Your manager ( ) has set up your job so that you do very few tasks. You are expected to do those tasks extremely well, according to the rules and regulations established by your manager.
an organizer
demand side benefits of scale arise when
any buyers' willingness to pay for that product increases as the number of other buyers for that product increases.
transaction costs are
are what a company spends acquiring supplies from other firms
the attractiveness test
asks the question: Is the industry profitable or capable of being profitable?
If you wanted to start a new oil company, you would face large ( ) , including the cost of extraction and refining equipment; the advanced technology needed to find, retrieve, and process oil; and formidable competitors.
barriers to entry
not making enough products to create supply- or demand-side economies of scale, costs associated with changing suppliers, the need for capital to create a properly sized business, government regulations that control product or service manufacturing and distribution, and competitors that may have better techniques or distribution advantages.
barriers to entry of a new organization
When conducting a SWOT analysis, information about turnover, profit margins, and staff quality can be used to identify:
company strengths and weaknesses
The first stage of the process by which organizational commitment is achieved is
compliance
as a firm matures and grows in size, it tends to emphasize
division of labor
Which of the following organizational structures is most likely to have the highest levels of accountability
divisional
Companies that focus on reducing costs by making large quantities of product are looking for
economies of scale
bureaucratic approach advantages
efficient, can withstand high turnover, provides focus for diverse workforce
Unrelated diversification will be more successful in what economies
emerging economies
economies of scope
exist when the costs of operating two or more businesses are less than the costs of operating the businesses independently.
In SWOT analysis T stands for what and refers to factors that are what to the environment
external
Opportunity and threats are what to the organization
external
support activities
firm infrastructure, HR management, technological development, procurement
support activities of a firm include
firm infrastructure, human resource management, technology development, and procurement.
economies of scope occur when
occur when a company shares resources or transfers skills and core competencies among business units
Companies that seek to pursue a cost leadership strategy will most likely make organizational design decisions that emphasize
operational efficiency
3M made a decision about what when it realigned its business groups to focus on five types of customers or products (consumer, industrial, health care, safety and graphics, and electronics and energy) instead of six.
organizational design
You decide to purchase the bakery and continue to allow the current manager to run that business. However, you will order supplies and handle accounting for both the coffee shop and bakery in a central office. What type of corporate-level decision is this?
organizational design. Determinations of how the resources of the enterprise will be coordinated are organizational design decisions
examples of ( ) include warehousing, material handling, and order processing
outbound logistics
which of the following refers to activities involved with collecting, storing, and physically distributing a final product to customers?
outbound logistics
forward integration occurs when a firm
owns or controls the distribution channels for its main products.
behaviorist approach
proposes more loosely defined roles, and a clan approach allows fluid job roles within self-managed teams.
A leadership approach is most likely to be successful when a leader of a firm
rewards achievement with nonpay perks such as new assignments. Successful leaders reward achievement with nonpay perks such as new assignments and employee recognition.
the 5 force model includes
threat of new entrants, bargaining power of customers, threat of substitutes, bargaining power of suppliers, and rivalry among existing competitors.
what is a component of Porterts 5 forces model
threat of substitutes
A company that actively tries to become more efficient is likely to be pursuing a cost leadership strategy. true or false
true
Siemens is a large multinational company that has businesses in the energy and health care industries. Because these companies use different resources and do not produce similar products, Siemens is engaged in
unrelated diversification
financial economies occur when
when companies can distribute their capital across other companies they acquire.
a company has ( )
when people will pay more than the normal cost of its products in the marketplace.Market power is achieved when a firm can sell products above the normal price seen in the market.