The cooperative form is an M-form structure in which horizontal integration is used to
bring about interdivisional cooperation.
a. True
b. False
Effective use of the generic business strategies allows the firm to favorably position
itself relative to the five forces.
a. True
b. False
Which of the following is a TRUE statement about organizational structures for
implementing business-level strategies?
a. A cost leadership strategy requires a simple structure emphasizing high
specialization, centralization, and structured job roles.
b. A differentiation strategy requires a functional structure with limited formalization,
broad job descriptions, and an emphasis on the product R&D and marketing functions.
c. An integrated cost leadership/differentiation strategy requires a multidivisional
structure using high formalization, decentralized decision making, and vertical
coordination.
d. A focused strategy requires a functional structure featuring high levels of both
specialization and formalization.
Value is measured by the variable and fixed costs associated with the production and
marketing of a particular product compared with the revenue and profits the product
generates.
a. True
b. False
Intensified rivalry within an industry results in
a. increased hiring across the industry.
b. increased total revenues across the industry.
c. decreased average profitability across the industry.
d. increased entries into the industry.
Which of the following is a FALSE statement about corporate governance?
a. Governance is used to establish order between parties whose interests may be in
conflict.
b. Corporate governance mechanisms sometimes fail to monitor and control top
managers’ decisions. c. Corporate governance mechanisms can be in conflict with one
another.
d. Corporate governance is best achieved with a board of directors with strong ties to
management.
The concepts of Guanxi,Wa,and Inhwaall convey the general idea of
a. entrepreneurial risk-taking.
b. interpersonal relationships.
c. the value of hard work.
d. personal achievement.
In most cases, the focus strategy is best managed using a structure.
a. simple
b. functional
c. multidivisional
d. vertical
The value-creating activities associated with the cost leadership strategy and
differentiation strategy are the same.
a. True
b. False
The balanced scorecard focuses on both financial and non-financial controls.
a. True
b. False
Developing a political strategy by the newly formed General Motors would likely be
ineffective as firms are generally unable to influence the political/legal environment.
a. True
b. False
The worldwide product divisional structure has centralized decision-making authority
in the worldwide division headquarters to coordinate and integrate decisions and actions
among business units.
a. True
b. False
Japanese keiretsu are
a. management structures related to total quality management systems.
b. company unions, which are a type of governance system.
c. the banks owing the largest shares of stock in the firm.
d. a system of cross-shareholding among firms.
The transnational strategy is becoming increasingly necessary to compete in
international markets for all the following reasons EXCEPT
a. the growing number of competitors heightens the requirements to keep costs down.
b. the desire for specialized products to meet consumers’ needs.
c. differences in culture and institutional environments also require firms to adapt their
products and approaches to local environments.
d. it is easy to use.