MGT 499 Final Exam
Which of the following did management at Zappos do to reduce the level of formalization in their organization?
. They avoided asking their customer service reps in call centers to follow a detailed script.
Which of the following is an observable feature in the globalization 3.0 stage
Based on an optimal mix of costs, skills, and PESTEL factors, companies now freely locate business functions anywhere in the world
Which of the following has been a key driver for firms to expand globally during the globalization 3.0 stage?
Benefits from lower labor costs in manufacturing and services
Which of the following statements is true of a multidomestic strategy?
Firms frequently use a multidomestic strategy when entering host countries with large and/or idiosyncratic local markets.
in which of the following stages of globalization did firms organize as networks to pursue a global-standardization strategy?
Globilization 3.0
Which of the following is a feature of an organic organization?
High span of control
To maintain its core competency of providing a superior customer experience in the face of explosive growth, Zappos split the organization into 10 standalone units. Which of the following does this scenario best illustrate?
How an organization accommodates strategy implementation through a flexible organizational structure
Which of the following statements is true of an equity alliance?
In an equity alliance, the partners frequently exchange personnel to make the acquisition of tacit knowledge possible
Which of the following is an advantage of using a functional structure when pursuing a cost-leadership strategy?
It allows a cost leader to upgrade core competencies in manufacturing and logistics.
Which of the following is an advantage offered by a functional structure?
It allows for a higher degree of specialization and deeper domain expertise.
Which of the following is a disadvantage of a functional strategy?
It cannot effectively address a higher level of diversification.
How does Kraft Foods benefit from its hostile takeover of Cadbury PLC in 2010
It has access to convenience stores and new distribution channels.
Which of the following statements is true of organizational culture?
It is better for founder CEOs to create a relevant culture, structure, and strategy in the early stages.
Which of the following real-world scenarios best exemplifies formalization?
McDonald's use of standard operating procedures across the world
Which of the following is a feature of the globalization 2.0 stage?
Multinational enterprises (MNEs) began to create smaller, self-contained replicas of themselves in a few key countries.
An organization is characterized as having a flexible division of labor, distributed decision-making, and generalized knowledge of how to accomplish strategic goals valued. This organization is most likely _____ in nature.
Organic
Which of the following statements is true of strategy in an organization?
Organizational structure must follow strategy in order for firms to achieve superior performance
The managers at Movo Automobile Inc. want to diversify their business by acquiring a consumer electronics company. This acquisition would mean increased job security, higher compensation, and greater decision-making authority for the managers. The managers correlate this acquisition with greater power for them rather than to the appreciation in shareholder value.
Principal - Agent Problem
Which of the following is an unintended side-effect of a high degree of specialization in an organization?
Reduced employee satisfaction due to repetition of tasks
Why is it difficult to imitate the organizational culture of firms like Southwest Airlines and Zappos?
Their culture reflects complex relationships with their employees, customers, and suppliers.
Which of the following statements is true of strategic alliances?
They are most beneficial when they join together resources and knowledge in a combination that complies with the VRIO framework
When does a merger between companies typically occur?
When two firms of comparable size join to form a combined entity
Why does a firm use an organic organization combined with a functional structure when implementing a differentiation strategy?
allows the firm to constantly upgrade core competencies in R&D, innovation, and marketing.
During the period of globalization 1.0, the mode of entry into foreign markets primarily involved:
exporting goods.
McDonald's uses detailed standard operating procedures throughout the world to ensure product quality. This implies that McDonald's has a high degree of _____.
formalization
A functional structure is recommended when a firm:
has a low level of diversification.
Which of the following is a disadvantage of a horizontal integration corporate strategy? it increases the potential for legal repercussions.
it increases the potential for legal repercussions
Organizational culture can be the basis of a firm's competitive advantage if _____.
it is valuable, rare, and difficult to imitate
A trend observed during the globalization 3.0 stage involves:
multinational companies organizing as global-collaboration networks
Since an organic structure helps a firm build core competencies in areas such as R&D and marketing, this structure is employed by firms that:
pursue a differentiation strategy at the business level.
The process of alliance management begins with _____.
selecting the best possible partner
A high degree of formalization in an organization is most likely to _____.
slow down decision-making
Organizational design is:
the process of creating, implementing, and modifying the structure of an organization.
As a result of globalization, the:
world's market economies are becoming more integrated