Deck 18: Implementing the Strategic Response

Question 1

The three main types of control are _______

A) output control, behavioural control, cultural control.
B) coordination, harmonization, configuration.
C) integration control, mechanical control, cultural control.
D) input control, cultural control, configuration control.

Answer 1

A
Explanation: The principal forms of control focus on measures of output (sales output, etc.), influencing behaviour through incentives (e.g. profit sharing), and corporate culture (values, expected behaviours).

Question 2

Functional organizational structures have the major advantage of dispersing expertise and reducing specialization

Answer 2

False
Explanation: The statement is false. A functional structure has the opposite effect, concentrating expertise and increasing specialization.

Question 3

Geographical organizational structures encourage staff collaboration in dynamic and disparate markets.

Answer 3

True
Explanation: The statement is true, a geographical structure pools expertise around a particular geographical region or area and enables rapid adaptation to changing conditions.

Question 4

A product structure is attractive to single commodity or business firms.

Question 5

Matrix structures suffer from problems of complexity, multiple reporting patterns, and high cost.

Question 6

Centralization in a global factory is encouraged by a high level of product diversification, significant geographical distance between the home and host countries, and low interdependence between affiliates.

Question 7

In principle, a control process is a closed loop system which assesses progress towards predetermined goals.

Question 8

There has been a trend within global factories to augment traditional output-based control measures.

Question 9

After completing strategic analysis, an organization faces two further steps in the strategy process: strategic choice and strategic implementation.

Question 10

Corporate culture is an example of behavioural controls which seek to influence the behaviour of organizational members.

Question 11

External embeddedness in the local environment increases the ability of a subsidiary to undertake knowledge sourcing and transfer.

Question 12

As well as organizational structure the global factory can also use _______ to facilitate the implementation of strategy.

A) corporate culture
B) administrative heritage
C) organizational downsizing
D) the creation of core competences

Question 13

Externalization within the global factory alters the management of activities from one based on hierarchy to one based on _______

A) inter-organizational coordination.
B) technology transfer.
C) risk minimization.
D) effective sanctions.

Question 14

The dual loyalties of a subsidiary result from the fact that it is not only part of the corporate network but also _______

A) part of the local business environment.
B) pursuing conflicting goals.
C) subject to expatriate concerns.
D) under pressure from local competitors.

Question 15

Strategy operates through structure because structure provides a framework for strategy implementation and control.

Question 16

Strategic implementation requires the organization to ensure that all actions are consistent with its strategic choice(s).

Question 17

The complexity of outsourcing has decreased during the current globalization wave.

Question 18

Coordination and integration are key skills for managers in the global factory

Question 19

Knowledge identification, absorption, and sharing are critical tasks for the global factory.

Question 20

Externalized transactions can still be managed hierarchically under a superior-subordinate relationship.