MGT 431 – Flashcards
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D. Only at the corporate and business levels
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General Managers are found at the? A. Only at the corporate level? B. Only at the business level ? C. At the functional business level? D. Only at the corporate and business levels
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d) returns in excess of what an investor expects to earn from other investments with a similar level of risk.
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Above-average returns are a) higher profits than the firm earned the previous year. b) higher profits than the industry averaged over the last 10 years. c) profits in excess of what an investor expects to earn from a historical pattern of performance of the firm. d) returns in excess of what an investor expects to earn from other investments with a similar level of risk.
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d) higher product quality.
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Globalization has led to a) lower operational efficiency as firms must transport raw materials and finished goods farther. b) increasing loyalty of customers for products made domestically. c) declining returns from investment in research and development. d) higher product quality.
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c) disruptive technology.
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Apple's iPad is an example of a) the march of globalization. b) rapid technological diffusion. c) disruptive technology. d) products that were not imitated by competitors.
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b) shareholders.
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Capital market stakeholders include a) industry competitors. b) shareholders. c) employees. d) government regulators
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b) capital market
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Although it closed stores, changed the top management team, and sought potential buyers, none of these actions resulted in outcomes that allowed Circuit City to meet the expectations of its ________stakeholders. a) product market b) capital market c) organizational d) governmental
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d) skilled employees
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In the resource-based model, which of the following factors would be considered a key to organizational success? a) unique market niche b) weak competition c) economies of scale d) skilled employees
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c) companies provide a dynamic, stimulating, and rewarding work environment.
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Organizational stakeholders are usually satisfied when a) their return on investment has been maximized. b) customers pay the highest sustainable price for the goods and services they receive. c) companies provide a dynamic, stimulating, and rewarding work environment. d) companies are paying the highest prices to suppliers.
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c) Risk
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_______is an investor's uncertainty about the economic gains or losses that will result from a particular investment. a) Return b) Reward c) Risk d) Revenue
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b) an important source of competitive advantage in virtually all industries.
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10) The ability to effectively and efficiently access and use information is a) vitally important at the point where a domestic firm enters the global market. b) an important source of competitive advantage in virtually all industries. c) equally important in all industries. d) critically important mainly in high technology industries
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d) sociocultural
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1) Coca-Cola and PepsiCo have been accused of contributing to the obesity problem in the United States. This accusation comes from the ________ segment of the general environment. a) economic b) political/legal c) technological d) sociocultural
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c) conduct an analysis of the external environment.
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Acme Valves, Inc., has been a successful player in the oil field supply industry in the last 15 years. Acme maintained its traditional strategy and product characteristics over this time period. However, Acme has experienced declines in sales and profits over the last four quarters. The CEO of Acme should a) continue with the proven strategy because its returns over the long run are important. b) focus on improving efficiency of production and cost control. c) conduct an analysis of the external environment. d) immediately begin making incremental adjustments to the traditional business strategy in an effort to improve sales.
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d) scanning.
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The use of the Internet by Netflix to collect data on customer preferences is an example of a) assessing. b) monitoring. c) forecasting. d) scanning.
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d) income distribution.
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An analysis of the economic segment of the external environment would include all of the following EXCEPT a) interest rates. b) trade deficits or surpluses. c) inflation rates. d) income distribution.
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a) barriers to entry; expected retaliation of current industry organizations.
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The likelihood of entry of new competitors is affected by______and______ a) barriers to entry; expected retaliation of current industry organizations. b) the power of existing suppliers; buyers. c) the profitability of the industry; the market share of its leading firm. d) the demand for the product; the profitability of the competitors.
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d) product differentiation
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The large amount of advertising by firms such as Procter & Gamble and Colgate-Palmolive is an example of what kind of barrier to entry? a) access to distribution channels b) capital requirements c) economies of scale d) product differentiation
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c) increase customers' switching costs.
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Customer loyalty programs such as airline frequent-flyer miles are an attempt to a) decrease competitors' access to distribution channels. b) develop a cost advantage independent of scale. c) increase customers' switching costs. d) overcome the perishability of the hotel "product."
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a) The cost of the marble will be expensive because of the bargaining power of the supplier.
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A certain marble quarry provides a unique type of marble that is richly colored and strikingly veined. It has been used for churches and public buildings throughout the world. The architect of a new headquarters for a prestigious Fortune 500 firm has specified the use of this marble, and this marble only, for this project. Which of the following statements is most likely to be true? a) The cost of the marble will be expensive because of the bargaining power of the supplier. b) The cost of the marble will be moderate because of the bargaining power of the buyer. c) The cost of the marble will be moderate because of economies of scale. d) The cost of the marble will be expensive because of the high strategic stakes involved.
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d) the power of the customers/buyers
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Golden Lotus, an exercise club targeting healthy individuals over 50, is located in a fastgrowing city in the Southwest. Which of the following factors that may have an effect on the success of Golden Lotus is the most directly controllable by the company? a) the sociocultural environment b) the demographics of the environment c) the economy of the local area d) the power of the customers/buyers
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d) traditions.
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A competitor analysis includes all of the following about competitors EXCEPT a) objectives. b) strategy. c) resources and capabilities d) traditions.
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a) can do.
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Internal analysis enables a firm to determine what the firm a) can do. b) should do. c) will do. d) might do.
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b) analysis of buyer power
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Which of the following is NOT a component of internal analysis leading to competitive advantage? a) tangible and intangible resources b) analysis of buyer power c) capabilities d) core competencies
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a) a product's proprietary characteristics and attributes for which customers are willing to pay.
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Customer value consists of a) a product's proprietary characteristics and attributes for which customers are willing to pay. b) a product's performance characteristics and attributes for which customers are willing to pay. c) a product's proprietary characteristics and attributes for which customers consider paying. d) a product's performance characteristics and attributes for which customers consider paying.
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d) combining resources.
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Capabilities typically come from a) individual resources. b) one unique resource. c) several outstanding resources used independently. d) combining resources.
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c) more; harder
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Compared to intangible resources, tangible resources are ______constrained because they are _______to leverage. a) less; easier b) less; harder c) more; harder d) more; easier
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a) be technologically innovative.
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To provide a sustainable competitive advantage, a capability must satisfy all of the following criteria EXCEPT a) be technologically innovative. b) be hard for competing firms to duplicate. c) be without good substitutes. d) be valuable to customers.
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a) lack of scientific transference.
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Costly-to-imitate capabilities can emerge for all of the following reasons EXCEPT a) lack of scientific transference. b) social complexity. c) unique historical conditions. d) causal ambiguity.
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b) causally ambiguous.
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Gamma, Inc., has struggled for industry dominance with Ardent, Inc., its main competitor, for years. Gamma has gathered and analyzed large amounts of competitive intelligence about Ardent. It has observed as much of the firm's internal functioning and technology as it can legally, yet Gamma cannot understand why Ardent has a competitive advantage over it. The source of Ardent's success is a) impregnable. b) causally ambiguous. c) rationally obscure. d) elusive.
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c) temporary.
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A local restaurant, Farm Fresh Ingredients, has become highly successful through its menu, based solely on organically raised chicken and beef, and organic seasonal produce. It has opened new locations in other cities, and these new locations are becoming highly profitable. Farm Fresh can expect that, at best, its competitive advantage will be a) permanent. b) sustainable. c) temporary. d) defensible.
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c) understand the parts of the firm's operation that create value and those that do not.
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Value chain analysis is a tool used to ______ a) analyze a firm's external environment for value-creating opportunities. b) analyze a firm's value chain activities and support functions in isolation from its competitors' value chain. c) understand the parts of the firm's operation that create value and those that do not. d) identify the firm's core competencies in each of the primary activities of the firm.
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a) exclusiveness
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The three dimensions of a firm's relationships with customers include all the following EXCEPT a) exclusiveness b) affiliation c) richness d) reach
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a) creating differences between the firm's position and its competitors.
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Business-level strategies are concerned specifically with a) creating differences between the firm's position and its competitors. b) selecting the industries in which the firm will compete. c) how functional areas will be organized within the firm. d) how the firm with multiple physical locations will operate one of those locations.
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c) limiting the group of customer segments served.
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A company using a narrow target market in its business strategy is a) following a cost leadership business strategy. b) focusing on a broad array of geographic markets. c) limiting the group of customer segments served. d) decreasing the number of activities on its value chain
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a) acceptable.
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A cost leadership strategy provides goods or services with features that are a) acceptable. b) unique. c) substandard. d) mediocre.
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c) develop flexible systems that allow rapid response to customers' changing needs.
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A company pursuing the differentiation or focused differentiation strategy would tend to a) build economies of scale and efficient operations. b) develop and maintain cost-effective MIS operations. c) develop flexible systems that allow rapid response to customers' changing needs. d) have relationships with suppliers to maintain efficient flow of supplies for operations.
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d) Cost-Less will go out of business, and Durable will gain higher power over its customers.
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Durable Ceramics, Inc., provides inexpensive ceramic tile to builders of institutional buildings such as schools, prisons, and public administration buildings. It has always competed on a cost leadership basis. Most of its products are purchased by a few commercial construction firms, so it is fairly dependent on these construction firms for selling its product. Durable Ceramic's next most-efficient competitor, Cost-Less Ceramics, Inc., earns average returns, whereas Durable earns above-average returns. The commercial construction firms are putting pressure on Durable to reduce its prices. If Durable reduces its prices below those of Cost-Less's prices, it is likely that a) both Durable and Cost-Less will become more efficient in their production processes. b) Durable will be unable to absorb the lower cost, and will go out of business. c) both Cost-Less and Durable will go out of business, leaving the customers with fewer alternative sources of low-cost tile. d) Cost-Less will go out of business, and Durable will gain higher power over its customers.
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c) economies of scale and efficient operations.
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All of the following are ways that a good or service can be differentiated EXCEPT a) responsive customer service. b) perceived prestige and status. c) economies of scale and efficient operations. d) engineering design.
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d) customers develop brand loyalty.
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A differentiation strategy can be effective in controlling the power of substitutes in an industry because a) customers have low switching costs. b) substitute products are lower quality. c) a differentiating firm can always lower prices. d) customers develop brand loyalty.
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b) focused cost leadership
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Ikea offers young customers a selection of home furnishings featuring good design, function, and acceptable quality at low prices. Ikea is using which business-level strategy? a) cost leadership b) focused cost leadership c) differentiation d) focused differentiation
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d) integrated cost leadership/differentiation
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Target's brand promise "Expect More. Pay Less" and appeal to higher-income, fashionconscious discount shoppers illustrates the ___________strategy. a) cost leadership b) differentiation c) focused differentiation d) integrated cost leadership/differentiation
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a) business-level
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Competitive rivalry has the most effect on the firm's_______ strategies than the firm's other strategies. a) business-level b) corporate-level c) acquisition d) international
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c) total set of actions and responses taken by all firms competing within a market.
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Competitive dynamics refers to the__________ a) circumstances in which competitors are aware of the degree of their mutual interdependence resulting from market commonality and resource similarity. b) set of competitive actions and competitive responses the firm takes to build or defend its competitive advantages and to improve its market position. c) total set of actions and responses taken by all firms competing within a market. d) ongoing set of competitive actions and competitive responses between competitors as they maneuver for advantageous market position.
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b) less competitive rivalry.
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In general, compared with firms which compete in only one market, among firms which face one another in multiple markets there is__________ a) similar competitive rivalry. b) less competitive rivalry. c) more competitive rivalry. d) no competitive rivalry.
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c) high; high
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Firms with _______ market commonality and ______ resource similarity are direct and mutually acknowledged competitors. a) low; high b) low; low c) high; high d) high; low
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c) delay responding to competitive actions.
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Firms with few competitive resources are more likely to _________ a) not respond to competitive actions. b) respond quickly to competitive actions. c) delay responding to competitive actions. d) respond to strategic actions, but not to tactical actions.
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c) Entry into the European market by Home Depot
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Which of the following is an example of a strategic action? a) A "two movies for the price of one" campaign by Blockbuster Video b) Use of product coupons by a local grocer c) Entry into the European market by Home Depot d) No seat assignment by Southwest Airlines
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c) Bubble-Up's smaller size may make it more flexible in introducing innovations than Mega-Toy.
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Bubble-Up, Inc., is a small manufacturer of educational toys for children under age 10. It has co-existed with three other competitors in the educational toy industry for over 20 years, each of them maintaining a stable market share. There is a wide-spread rumor that Mega-Toy, Inc., the market leader in the broad children's toy market, has decided to target educational toys. Which of these statements is most likely TRUE? a) The owners of Bubble-Up are unconcerned about Mega-Toy's entry to the market because of the resource dissimilarity between the firms. b) Bubble-Up's greater organizational slack will allow it to aggressively attack Mega-Toy. c) Bubble-Up's smaller size may make it more flexible in introducing innovations than Mega-Toy. d) Competitive rivalry will not increase for Bubble-Up because Mega-Toy is not dependent on the educational toy market.
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b) lack credibility among customers.
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Without quality, the firm's products a) can compete effectively on the basis of low price. b) lack credibility among customers. c) must be exported to developing countries, because they are not competitive in the United States or developed countries. d) are associated with predatory competition.
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a) the attack is by a price predator.
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A firm is likely to respond to an attack by a competitor in all of the following situations EXCEPT when ________ a) the attack is by a price predator. b) the attack makes the firm's market position less defensible. c) the attack damages the firm's ability to use its capabilities. d) the attack improves the competitor's market position.
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a) slow-cycle
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Sustained competitive advantage is most achievable in a _______ market. a) slow-cycle b) medium-cycle c) standard-cycle d) fast-cycle
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c) businesses in the portfolio are worth more under the management of the company in question than they would be under any other ownership.
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The ultimate test of the value of a corporate-level strategy is whether the ________ a) corporation earns a great deal of money. b) top management team is satisfied with the corporation's performance. c) businesses in the portfolio are worth more under the management of the company in question than they would be under any other ownership. d) businesses in the portfolio increase the firm's financial returns.
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b) the level of resources and activities shared among the businesses.
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The main difference between the related constrained level of diversification and the related linked level of diversification is a) the percentage of total organizational profitability that comes from the dominant business. b) the level of resources and activities shared among the businesses. c) whether the diversification is vertical or horizontal. d) whether the diversification is value-creating or value-neutral.
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d) unrelated
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Hutchison Whampoa Limited (HWL) has businesses in ports and related services, telecommunications, property and hotels, retail and manufacturing, and energy and infrastructure. HWL makes no efforts to share activities or transfer core competencies among the businesses. HWL is following a strategy of ________diversification. a) dominant business b) related constrained c) related linked d) unrelated
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b) expanding the business portfolio in order to
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Which of the following is a value-reducing reason for diversification? a) enhancing the strategic competitiveness of the entire company b) expanding the business portfolio in order to diversify managerial employment risk c) gaining market power relative to competitors d) conforming to antitrust regulation
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b) firms have multiple products in their primary industry.
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Multipoint competition occurs when ________ a) firms have multiple retail outlets. b) firms have multiple products in their primary industry. c) diversified firms compete against each other in several markets. d) firms have diversified portfolios of companies.
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b) transfer key people into new management positions.
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One method of facilitating the transfer of competencies between firms is to _______ a) virtually integrate the two firms. b) transfer key people into new management positions. c) share support activities, such as purchasing practices. d) restructure the weaker firm to mirror the structure of the more successful firm.
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b) related
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Acquisitions to increase market power require that the firm have a(n) _________ diversification strategy. a) unrelated b) related c) dominant-business d) single-business
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a) produces its own inputs.
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Backward integration occurs when a company ________ a) produces its own inputs. b) owns its own source of distribution of outputs. c) is concentrated in a single industry. d) is divesting unrelated businesses.
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b) economies of scope between business units.
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Firms that have selected a related diversification corporate-level strategy seek to exploit a) control shared among business-unit managers. b) economies of scope between business units. c) the favorable demand of buyers. d) market power.
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d) problem child
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A ________ is a business that has a weak competitive position but is in a high-growth industry. a) cash cow b) dog c) star d) problem child
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b) two firms agree to integrate their operations on a relatively coequal basis.
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In a merger ________ a) one firm buys controlling interest in another firm. b) two firms agree to integrate their operations on a relatively coequal basis. c) two firms combine to create a third separate entity. d) one firm breaks into two firms.
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c) takeover or unfriendly acquisition.
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When the target firm does not solicit the acquiring firm's bid, it is referred to as a(n) a) stealth raid. b) adversarial acquisition. c) takeover or unfriendly acquisition. d) leveraged buyout.
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b) horizontal; increase market power.
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The March 2011 announcement that AT&T was acquiring T-Mobile USA from Deutsche Telekom is a __________ acquisition and is intended to ________ a) vertical; increase diversification. b) horizontal; increase market power. c) vertical; overcome entry barriers. d) related; increase speed to market.
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d) vertical acquisition.
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Manny Inc. recently completed the purchase of its primary supplier. Manny intends to begin expanding the market to which the suppliers' products are sold. This purchase is a(n) _______ a) merger. b) unrelated acquisition. c) horizontal acquisition. d) vertical acquisition.
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b) more likely
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The presence of barriers to entry in a particular market will generally make acquisitions _______ as an entry strategy. a) less likely b) more likely c) prohibitive d) illegal
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b) more accurate prediction of return on investment.
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Compared to internal product development, acquisitions allow _________ a) immediate access to innovations in mature product markets. b) more accurate prediction of return on investment. c) slower market entry. d) more effective use of company core competencies.
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d) positioning the firm for a tactical competitive move.
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Each of the following is a rationale for acquisitions EXCEPT __________ a) achieving greater market power. b) overcoming significant barriers to entry. c) increasing speed of market entry. d) positioning the firm for a tactical competitive move.
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c) post-acquisition integration
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The ________ phase is probably the single most important determinant of shareholder value creation in mergers and acquisitions. a) pre-acquisition negotiations b) pre-acquisition due diligence c) post-acquisition integration d) post-acquisition restructuring
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b) Pappelbon overpaid. d) Pappelbon's management was overly focused on acquisitions.
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Pappelbon Enterprises recently acquired a chain of convenience stores offering both fuel and food. Pappelbon is now surprised and dismayed to find that the gas pumps have been poorly maintained and will need to be replaced at considerable expense. Each of the following statements accurately reflect this EXCEPT a) Pappelbon did not fully evaluate the target. b) Pappelbon overpaid. c) Pappelbon's due diligence was not fully effective. d) Pappelbon's management was overly focused on acquisitions.
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a) realigning
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Which of the following is NOT one of the three main restructuring strategies? a) realigning b) downsizing c) downscoping d) leveraged buyouts
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c) to avoid high domestic taxation on corporate income
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Which of the following is NOT an incentive for firms to become multinational? a) to gain access to consumers in emerging markets b) to gain easier access to raw materials c) to avoid high domestic taxation on corporate income d) opportunities to integrate operations on a global scale
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d) availability of low labor costs
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Which of the following is NOT a factor pressuring companies for local responsiveness? a) differences in employment laws b) customization due to cultural differences c) government pressure for firms to use local sources for procurement d) availability of low labor costs
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d) evasion of host country governmental regulations.
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The location advantages associated with locating facilities in other countries can include all of the following EXCEPT _________ a) low-cost labor. b) access to critical supplies. c) access to customers. d) evasion of host country governmental regulations.
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b) universal
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All of the following are international corporate-level strategies EXCEPT the _______ strategy. a) multidomestic b) universal c) global d) transnational
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d) transnational; multidomestic; global
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Effectively implementing the ________ international corporate-level strategy often produces higher performance than does implementing either the _______ or _________ strategies. a) multidomestic; global; transnational b) global; multidomestic; transnational c) cost leadership; differentation; focus d) transnational; multidomestic; global
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a) competitive strategy is dictated by the home office.
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A global corporate-level strategy differs from a multidomestic corporate-level strategy in that in a global strategy, _____________ a) competitive strategy is dictated by the home office. b) competitive strategy is decentralized and controlled by individual strategic business units. c) products are customized to meet the individual needs of each country. d) the firm sells in multiple countries.
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b) exporting.
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A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company, but it is looking for growth opportunities. This company should primarily consider the option of ________ a) licensing. b) exporting. c) a strategic alliance. d) a greenfield venture.
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d) strategic alliances are easy to manage.
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All of the following are reasons why firms use international strategic alliances EXCEPT _________ a) sharing of risks and resources. b) alliances facilitate the development of new capabilities. c) learning new competencies particularly those related to technology. d) strategic alliances are easy to manage.
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d) It is the slowest way to enter a new market.
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Which of the following is NOT a disadvantage of international acquisitions? a) They are very expensive and often require debt financing. b) The acquiring firm has to deal with the regulatory requirements of a host country. c) Merging the acquired and acquiring firm is difficult. d) It is the slowest way to enter a new market.
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c) wholly owned subsidiary
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If intellectual property rights in an emerging economy are not well-protected, the number of firms in the industry is rapidly growing, and the need for global integration is high, ________is the preferred entry mode. a) exporting b) strategic alliance c) wholly owned subsidiary d) licensing
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d) create a competitive advantage.
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When using cooperative strategies, firms most frequently develop strategic alliances that ________ a) enhance the firm's reputation in the marketplace. b) are long-lived. c) will reduce the firm's political risk. d) create a competitive advantage.
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b) joint ventures
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Which type of cooperative strategy is best at passing tacit knowledge between firms? a) primary cooperative strategic alliances b) joint ventures c) equal strategic alliances d) nonequity strategic alliances
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d) This is a nonequity strategic alliance with Hewlett-Packard leveraging its unique capabilities.
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Hewlett-Packard licenses some of its intellectual property through strategic alliances. Which of the following is correct about this relationship? a) This is a joint venture because in licensing arrangements, a new company is created. b) This is an equity strategic alliance because licensing does not involve the creation of a new company, but does involve an equity commitment. c) The firms risk charges of collusion because most licensing relationships between competitors involve explicit collusion. d) This is a nonequity strategic alliance with Hewlett-Packard leveraging its unique capabilities.
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c) slow-cycle
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U.S. Steel and Nucor (the two remaining major players in the U.S. steel industry) have been forming alliances as a means to enter markets in Europe and Asia. The steel industry is an example of a ________market in which firms typically use alliances to gain market access. a) fast-cycle b) standard-cycle c) slow-cycle d) intermediate-cycle
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a) vertical complementary
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A manufacturer of specialty jams and jellies has decided to ally itself with an orchard and vineyard growing rare strains of fruit. This is a(n) ______ strategy. a) vertical complementary b) horizontal complementary c) uncertainty reduction d) network
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a) engaging in tacit collusion.
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The three main luxury hotels in a major tourist destination keep very close track of their competitors' room pricing, restaurant offerings, tour packages, and special services, such as airport transportation and spa privileges. When one hotel makes adjustments in prices or offerings, the other hotels follow suit. It is possible that these hotels are a) engaging in tacit collusion. b) following uncertainty reducing strategies. c) monitoring business competitors for opportunistic behaviors. d) engaging in a competitive action strategy.
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d) nonequity-based horizontal complementary alliance
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The risks of being accused of collusion are MOST likely under what type of alliance? a) equity-based vertical complementary alliance b) equity-based horizontal complementary alliance c) nonequity-based vertical complementary alliance d) nonequity-based horizontal complementary alliance
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b) complementary; competition reducing
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_______strategic alliances have stronger focus on value creation than do _______ alliances. a) competition reducing; complementary b) complementary; competition reducing c) uncertainty reducing; complementary d) collusive; uncertainty reducing
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a) brand name.
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In the franchising strategy, the most important competitive advantage for the franchisee is the franchisor's ________ a) brand name. b) capital resources. c) access to a consolidated market. d) geographic locations.
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d) internalize the knowledge about the successes and failures of this alliance so FrameCo can learn from the experience.
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FrameCo, a maker of commercial greenhouses, has just extricated itself from a failing cooperative alliance with another firm. The expected synergies never were achieved, and FrameCo lost most of its investment. The top management of FrameCo should a) avoid future cooperative alliances because they lack the skills needed to manage them successfully. b) enter into future cooperative alliances only if the alliance is closely monitored by a third party to prevent opportunistic behavior by the alliance partner. c) realize that most cooperative alliances fail and that it should ally itself only with an experienced alliance partner in the future. d) internalize the knowledge about the successes and failures of this alliance so FrameCo can learn from the experience.
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d) Strategy has a more important influence on structure than structure has on strategy.
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Which of the following is TRUE? a) Organizations tend to change structure too frequently, which erodes their competitive advantage. b) Large organizations can retain a simple structure as long as they have a focus strategy. c) Flexibility in structure is more important than stability. d) Strategy has a more important influence on structure than structure has on strategy.
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a) Amos should consider adopting the multidivisional structure.
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The Amos Ball Printing Company was established in 1866. Currently, Amos Ball V is the CEO and chairman of the board. The company has traditionally used a functional structure. Five years ago, the company branched into online publishing and small-batch printing in addition to its regular large-batch operations. Both new businesses are significantly different in technology and marketing from each other and from Ball's traditional business. Despite the hiring of experienced professionals in these new endeavors, performance continues to be poor and is affecting Ball's overall performance. Which of the following statements is TRUE? a) Amos should consider adopting the multidivisional structure. b) Mr. Ball has insufficient power to change the structure of the organization. c) Restructuring must only be done from a position of strength, so it is necessary to wait until the company's overall performance improves before making radical changes. d) These businesses are too disparate to coordinate within one corporate structure.
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c) Financial
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_______ controls are objective criteria that allow corporate managers to evaluate the returns earned by individual business units. a) Strategic b) Managerial c) Financial d) Environmental
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a) simple or functional
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In most cases, the focus strategy is best managed using a ______ structure. a) simple or functional b) functional or multidivisional c) simple or multidivisional d) vertical
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d) communication and coordination are difficult among organizational functions.
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One disadvantage of the functional structure is that ________ a) career paths and professional development are limited. b) dual reporting relationships blur lines of authority. c) the CEO cannot coordinate and control the efforts of functional-level employees. d) communication and coordination are difficult among organizational functions.
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a) coordination and control problems.
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Jumbo Industrial Supply has grown from a one-location firm with a restricted product line to a multi-state organization with numerous product lines and a large sales staff. Sales have doubled every year for the last three years. It currently has a simple structure with Jared Smith, the owner-manager, making all major decisions. Jumbo is probably now experiencing or will soon experience a) coordination and control problems. b) bureaucratic inefficiencies. c) excessive competition among division managers. d) limited communication among functional specialists.
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b) centralization of authority.
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Successfully implementing a cost leadership strategy requires _______ a) freedom from constraining rules. b) centralization of authority. c) communication among divisions d) sharing of competencies among divisions.
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c) product R; marketing
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Firms seeking to differentiate particularly need support from the ______ and _______ functions. a) finance; accounting b) engineering; operations c) product R; marketing d) management information; finance
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d) cooperative form of the multidivisional
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The ________ structure is best for implementing the related-constrained diversification strategy. a) functional b) competitive form of the multidivisional c) SBU form of the multidivisional d) cooperative form of the multidivisional
