The need for integrating mechanisms is greater when a company’s structure is more
complex.
Most manufacturing companies begin their global expansion by exporting.
Fortunately, focusers are not vulnerable to shifting consumer tastes, because of brand
loyalty that comes with focused strategy.
Johnson & Johnson is organized into Consumer, Medical, and Pharmaceutical units to
serve the needs of its different customer groups. Johnson & Johnson is using a market
structure.
Implementation problems can arise in unrelated acquisitions when managers from the
acquiring company apply inappropriate structure and controls to manage the new
business.
In the Multidivisional structure, each division typically contains only a partial set of
value chain activities.
Which generic business-level strategy is based on the intent to outperform competitors
by doing everything a company can to lower its cost structure?
A.Cost leadership
B.Differentiation
C.Broad differentiation
D.Focused differentiation
E.None of these
Maximizing shareholder value is
A.a byproduct of a company’s cost reduction programs.
B.not generally a viable goal for a company.
C.not the responsibility of a company’s managers.
D.the ultimate goal of profit-making companies.
E.not required to attract risk capital.
A functional organizational structure offers a company which of the following
advantages?
A.Specialization of activities leading to greater productivity
B.More efficient production activities
C.Greater control of activities by managers
D.All of these
E.None of these
A focused differentiator has the advantage of
A.charging a premium price because of its low costs.
B.pursuing differentiation and low-cost strategies simultaneously.
C.being close to the customer.
D.superior materials management.
E.protection against price wars.
Systematic errors in the decision-making process are caused by
A.inadequate information.
B.information overload.
C.cognitive biases on the part of decision makers.
D.poor data collection procedures.
E.all of these choices.
A fragmented industry is one composed of a
A.small number of large firms.
B.large number of small firms.
C.large number of small and medium-sized firms.
D.small number of small firms.
E.large number of one-person firms.
Why are some managers thought to engage in empire building?
A.Growth results in large company size, and large size satisfies managers’ needs for
power, status, income, and job security.
B.The pursuit of growth represents the best way of maximizing the long-run
profitability of the company.
C.Growth is designed to increase market share, which in turn increases company
profits.
D.Companies that do not grow stagnate.
E.Stockholders would rather invest in large companies than in small ones.
Functional managers
A.are responsible for the specific business functions or operations that constitute a
company or one of its divisions.
B.look at the overall picture of a corporation.
C.have no strategic role.
D.formulate generic strategies.
E.execute business-level decisions.
The scenario approach to strategic planning involves
A.devising plans for coping with a number of different possible future states of the
world.
B.homing in on a single prediction of future demand conditions using an iterative
planning process.
C.functional managers setting key corporate objectives.
D.using computers to build virtual worlds for top-level managers.
E.making planning the exclusive domain of top-level managers.
By the shakeout stage of a product’s life cycle, demand is
A.holding steady.
B.decreasing rapidly.
C.increasing slowly.
D.increasing rapidly but showing signs of slacking off.
E.increasing and decreasing in alternate cycles.
Most market demand and industry profits arise when
A.early adopters leave the market.
B.innovators become regular users.
C.initial users become regular customers.
D.early and late majority users enter the market.
E.none of these choices.
You can put your own message on and select the colors of your own M&Ms candies,
making the candies relevant to any occasion in your life. This is an example of
A.a positioning strategy.
B.just-in-time inventory.
C.a marketing strategy.
D.mass customization.
E.a flexible production technology.
Which of the following is not an attribute of a national or country-specific environment
that has an impact on global competitiveness of companies located in that nation?
A.Factory production endowments
B.Local demand conditions
C.Related and supporting industries
D.Strategy, structure, and rivalry of firms within the nation
E.Advertising expenses
Which of the following entry strategies should be used when speed is an important
consideration?
A.Internal new venture
B.Acquisition
C.Joint venture
D.Unrelated diversification
E.Related diversification
A cost leader could reasonably be expected to reduce costs by developing distinctive
competencies in all but
A.manufacturing.
B.materials management.
C.marketing and sales.
D.information technology.
E.learning organizational structure.
What is the process of transferring resources to and creating a new business unit in a
new industry called?
A.External new venturing
B.Exportation of resources
C.Intrapreneuring
D.Risk avoidance
E.Internal new venturing