Question 1

All of the following are selected at the business level except ________.
A) a low-cost strategy
B) organizational domain
C) a differentiation strategy
D) a diversification strategy

Accepted Answer

The other options (A, B, and C) are all business-level strategies, while diversification strategy is a corporate-level strategy.

Question 2

A U.S. auto manufacturer establishes plants in Europe and in Asia. This is an example of ________.
A) global expansion
B) unrelated diversification
C) vertical integration
D) related diversification

Accepted Answer

Global expansion refers to a company expanding its operations and presence beyond national borders. In this case, the U.S. auto manufacturer is establishing plants in both Europe and Asia, indicating a global expansion strategy. The other choices do not accurately describe this scenario. Unrelated diversification refers to a company venturing into unrelated industries or markets, vertical integration involves a company expanding activities within its supply chain, and related diversification involves expanding into related industries or markets.

Question 3

Developing core competences is the direct responsibility of ________.
A) the CEO
B) corporate managers
C) divisional managers
D) functional managers

Accepted Answer

The answer of Developing core competences is the direct responsibility...

Question 4

________ suggests that each function should create a structure to match its resources.
A) Contingency theory
B) Transaction cost theory
C) Strategic choice
D) Resource dependence theory

Accepted Answer

Contingency theory suggests that organizational structures should be designed to fit the organization's environment and resources, implying that each function should create a structure to match its resources.

Question 5

A source of competitive advantage is ________.
A) uncertainty
B) an effective culture
C) centralized decision making
D) rules and standard operating procedures

Accepted Answer

An effective culture is a source of competitive advantage as it can provide a unique identity for the organization, foster collaboration and innovation, and attract and retain top talent. Uncertainty, centralized decision making, and rules and standard operating procedures may not necessarily provide a competitive advantage, and in some cases may even hinder it.

Question 6

Which of the following functions would be responsible for implementing a just-in-time inventory system?
A) Materials management
B) Marketing
C) Manufacturing
D) R&D

Accepted Answer

Materials management is responsible for managing inventory levels and ensuring materials are available when needed for production. Implementing a just-in-time inventory system falls under the purview of materials management. The other functions listed are not directly related to inventory management.

Question 7

Land is an example of ________ .
A) shareholder's equity
B) an organizational resource
C) an intangible asset
D) a functional resource

Accepted Answer

Land is considered as an organizational resource because it can be used by an organization for various purposes, such as to build a facility, conduct operations, or generate revenue. Shareholder's equity refers to the residual interest in the assets of an organization after deducting liabilities. Intangible assets are non-physical assets such as patents, trademarks, and copyrights. Functional resources refer to resources that are specific to a particular function or department within an organization, such as marketing resources or human resources.

Question 8

Procter & Gamble combined the skills of marketing, manufacturing, and product development. This is an example of ________.
A) coordination abilities
B) managerial expertise
C) decentralization
D) flattening the hierarchy

Accepted Answer

Combining the skills of marketing, manufacturing, and product development requires coordination abilities to ensure that these departments work together effectively.

Question 9

Taking core competencies and combining them to exploit opportunities overseas is part of ________.
A) functional-level strategy
B) global expansion strategy
C) corporate-level strategy
D) business-level strategy

Accepted Answer

Global expansion strategy involves leveraging core competencies to exploit opportunities overseas. This strategy involves entering new markets, establishing subsidiaries or joint ventures in foreign countries, and adapting products and services to meet local needs. Functional-level strategy focuses on specific functional areas within the organization, while business-level strategy is concerned with how the organization competes in a particular market. Corporate-level strategy pertains to the overall scope of the organization and its business units.

Question 10

Which of the following companies will most likely have a mechanistic structure?
A) A medical equipment manufacturer that has a core competence in manufacturing
B) A pharmaceutical company that has a core competence in R&D
C) A soft-drink company that has a core competence in marketing
D) A telecommunications company that operates in a dynamic environment

Accepted Answer

A mechanistic structure is typically characterized by high centralization, formalization, and specialization. It is most suitable for organizations that operate in a stable and predictable environment with well-defined tasks and procedures. Out of the given options, a medical equipment manufacturer that has a core competence in manufacturing is most likely to have a mechanistic structure as it requires a high level of control and standardization in its manufacturing process.

Question 11

Traditionally, manufacturing concentrated on all of the following except:
A) transferring control to managers.
B) creating a mechanistic hierarchy.
C) decreasing the level of skill required to perform a task.
D) increasing mutual adjustment.

Accepted Answer

Traditionally, manufacturing focused on standardization and efficiency, often reducing the need for mutual adjustment, which involves more flexible and adaptive processes.

Question 12

Taking core competencies and combining them to exploit opportunities in the environment is part of ________.
A) corporate-level strategy
B) business-level strategy
C) global level strategy
D) functional-level strategy

Accepted Answer

The combination of core competencies to exploit opportunities in the environment is part of business-level strategy. Business-level strategy focuses on creating a competitive advantage in a specific business or industry by leveraging the company's strengths and capabilities.

Question 13

Honda takes its strength in engine production and uses it to produce cars, motor bikes, and lawnmowers, creating value in different markets. This is an example of ________ strategy.
A) marketing
B) corporate-level
C) business-level
D) development

Accepted Answer

Honda is using its strength in engine production to enter multiple markets and diversify its offerings, which is a corporate-level strategy. This allows Honda to create value in different markets and reduce risk by not relying on one particular market.

Question 14

________ strategy is a plan to use and develop core competences so that the organization can not only can protect and enlarge its domain but can also expand into new domains.
A) Global level
B) Functional-level
C) Business-level
D) Corporate-level

Accepted Answer

Corporate-level strategy is concerned with the overall purpose and scope of the entire organization, including how to manage and coordinate business units and product lines. Developing core competencies is a key aspect of this strategy, as it enables organizations to expand into new domains and protect and enlarge their existing ones. The other options (A, B, and C) are focused on more specific levels of strategy within an organization.

Question 15

McDonald's developed breakfast items such as the Egg McMuffin that could be produced quickly. This is an example of a(n) ________.
A) craft
B) core competence
C) innovation
D) invention

Accepted Answer

The answer of McDonald's developed breakfast items such as the...

Question 16

Which of the following core competences is most difficult to imitate?
A) Reputation
B) Coordination abilities
C) Top-management skills
D) R&D expertise

Accepted Answer

The answer of Which of the following core competences is...

Question 17

Organizational strategy is formulated at all of the following levels except at the ________.
A) functional level
B) individual level
C) corporate level
D) business level

Accepted Answer

Organizational strategy is not typically formulated at the individual level, as it focuses on overall organizational goals and initiatives rather than specific goals and actions of individual employees. Strategy formulation typically occurs at the corporate, business, and functional levels, with each level contributing to the overall strategic direction of the organization.

Question 18

Which of the following activities can be a source of both a low-cost advantage and a differentiation advantage?
A) Creating new products
B) Targeting customer groups
C) Forming long-term relationships with suppliers
D) Developing innovative training programs

Accepted Answer

Forming long-term relationships with suppliers can lead to both a low-cost advantage (by negotiating lower prices) and a differentiation advantage (by receiving preferential treatment such as exclusive access to new products or faster delivery times). The other activities listed may lead to a differentiation advantage (A, B, D) but do not necessarily result in a low-cost advantage.

Question 19

Coordination abilities refer to:
A) the attributes that provide a competitive edge.
B) linking functional and organizational resources.
C) planning the organization's strategy.
D) the skills possessed by functional personnel.

Accepted Answer

Coordination abilities refer to the ability to link functional and organizational resources in order to achieve common goals. This involves teamwork, communication, and effective management of resources across different departments or teams. While having coordination abilities can provide a competitive edge, it is not the only attribute that contributes to that advantage. Planning the organization's strategy is a separate function, and coordination abilities are not limited to functional personnel but can and should be possessed by all members of an organization.

Question 20

Mutual adjustment is the primary mechanism used to control activities in which of the following departments?
A) R&D
B) Sales
C) Manufacturing
D) Materials management

Accepted Answer

Mutual adjustment is often used in R&D departments where tasks are non-routine and require collaboration and communication among team members to adapt to new information and changes.

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

All of the following are selected at the business level except ________.

A U.S. auto manufacturer establishes plants in Europe and in Asia. This is an example of ________.

Developing core competences is the direct responsibility of ________.

________ suggests that each function should create a structure to match its resources.

A source of competitive advantage is ________.

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

Land is an example of ________ .

Procter & Gamble combined the skills of marketing, manufacturing, and product development. This is an example of ________.

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

Which of the following companies will most likely have a mechanistic structure?

Traditionally, manufacturing concentrated on all of the following except:

Taking core competencies and combining them to exploit opportunities in the environment is part of ________.

Honda takes its strength in engine production and uses it to produce cars, motor bikes, and lawnmowers, creating value in different markets. This is an example of ________ strategy.

________ strategy is a plan to use and develop core competences so that the organization can not only can protect and enlarge its domain but can also expand into new domains.

McDonald's developed breakfast items such as the Egg McMuffin that could be produced quickly. This is an example of a(n) ________.

Which of the following core competences is most difficult to imitate?

Organizational strategy is formulated at all of the following levels except at the ________.

Which of the following activities can be a source of both a low-cost advantage and a differentiation advantage?

Coordination abilities refer to:

Mutual adjustment is the primary mechanism used to control activities in which of the following departments?