Question 1

Hitachi manages its 28 divisions by:

Accepted Answer

Hitachi manages its divisions by using complex integrating mechanisms, such as integrating roles, to coordinate and control its diverse operations effectively.

Question 2

Which of the following functions would be responsible for implementing a just- in- time inventory system?

Accepted Answer

Materials management is responsible for implementing a just-in-time inventory system as it involves managing the flow of materials and ensuring that inventory levels are kept low while meeting production needs.

Question 3

Due to intense competition, an organization has decided to move from a global strategy to a transnational strategy. What can this company do to ensure that it successfully pursues a transnational strategy?

Accepted Answer

The answer of Due to intense competition, an organization has...

Question 4

A multidomestic strategy is characterized by all of the following except_________ .

Accepted Answer

A multidomestic strategy focuses on tailoring products and services to local markets, which involves decentralized decision-making and high local responsiveness, but it does not emphasize global learning, which is more characteristic of a transnational strategy.

Question 5

Taking core competencies and combining them to exploit opportunities overseas is part of_________ .

Accepted Answer

Global level strategy involves leveraging core competencies to expand and exploit opportunities in international markets.

Question 6

A software company operates in a dynamic environment; getting products to the market quickly is the way to achieve competitive advantage. How can this company match strategy, structure, and culture to achieve a competitive advantage?

Accepted Answer

The answer of A software company operates in a dynamic...

Question 7

A consumer electronics manufacturer that excels at local responsiveness has been experiencing high pressures for global integration. How does this affect its strategy, structure, culture, and integrating mechanisms?

Accepted Answer

The answer of A consumer electronics manufacturer that excels at...

Question 8

Which function typically has the most organic structure?

Accepted Answer

R&D (Research and Development) typically has the most organic structure because it requires flexibility, creativity, and adaptability to innovate and develop new products or solutions.

Question 9

The primary disadvantage of vertical integration is:

Accepted Answer

Vertical integration can lead to increased bureaucratic costs due to the complexities of managing more stages of production internally.

Question 10

An organization will need to flatten its hierarchy when it moves from a global__________ structure to a global _________structure.

Accepted Answer

Flattening the hierarchy typically occurs when moving from a product group structure, which is more hierarchical, to a matrix structure, which integrates multiple dimensions and requires more collaboration and less rigid hierarchy.

Question 11

How can an organization develop low- cost core competences?

Accepted Answer

The answer of How can an organization develop low- cost...

Question 12

A company pursuing a multidomestic strategy should adopt which of the following structures?

Accepted Answer

A multidomestic strategy focuses on tailoring products and services to local markets, which is best supported by a global geographic structure that allows for regional divisions to operate independently and cater to local preferences.

Question 13

Which of the following strategies enables a company to obtain the strongest differentiation advantage in foreign markets?

Accepted Answer

A multidomestic strategy allows a company to tailor its products and marketing to each foreign market, creating a strong differentiation advantage by meeting local needs and preferences.

Question 14

Coordination abilities refer to:

Accepted Answer

Coordination abilities involve linking functional and organizational resources to ensure smooth operations and achieve organizational goals.

Question 15

Which of the following corporate- level strategies has the lowest bureaucratic costs?

Accepted Answer

The answer of Which of the following corporate- level strategies...

Question 16

An innovative organization is growing rapidly. Because the company has reached its maximum potential in its current domain, the CEO wants to expand into new domains. The CEO wants to pursue diversification. What advice can you give?

Accepted Answer

The answer of An innovative organization is growing rapidly. Because...

Question 17

McDonald's core competences in manufacturing, marketing, and materials management create a competitive advantage over rivals Burger King and Wendy's. This is an example of_________ strategy.

Accepted Answer

Business-level strategy focuses on how a company competes in a particular market, leveraging its core competencies to gain a competitive advantage over rivals.

Question 18

Which of the following structures is a variant of the multidivisional structure?

Accepted Answer

A conglomerate is a variant of the multidivisional structure, where a company is composed of multiple distinct divisions, each operating in different industries or sectors.

Question 19

Which of the following strategies involves entering a completely new domain?

Accepted Answer

Diversification involves entering a completely new domain by introducing new products or services to new markets.

Question 20

Which of the following strategies has the highest bureaucratic costs?

Accepted Answer

The transnational strategy has the highest bureaucratic costs because it requires a complex organizational structure to manage both global efficiency and local responsiveness, leading to increased coordination and administrative expenses.

Quiz 8: Organizational Design and Strategy in a Changing Global Environment