Podcast
Questions and Answers
A strategy is a specific pattern of decisions and actions that managers take to utilize core competences to achieve a competitive advantage and outperform competitors. True or False?
A strategy is a specific pattern of decisions and actions that managers take to utilize core competences to achieve a competitive advantage and outperform competitors. True or False?
True
Core competences are skills and abilities in value-creation activities, such as manufacturing, marketing, or R&D, that allow a company to achieve superior efficiency, quality, innovation, or customer responsiveness. True or False?
Core competences are skills and abilities in value-creation activities, such as manufacturing, marketing, or R&D, that allow a company to achieve superior efficiency, quality, innovation, or customer responsiveness. True or False?
True
Functional resources are the skills possessed by an organization's functional personnel. True or False?
Functional resources are the skills possessed by an organization's functional personnel. True or False?
True
It is sufficient that an organization has high-quality functional resources; these resources must also be unique and difficult to imitate. True or False?
It is sufficient that an organization has high-quality functional resources; these resources must also be unique and difficult to imitate. True or False?
Signup and view all the answers
Organizational resources include the skills of a company’s top management team, the vision of its founder/CEO, and the possession of valuable and scarce resources. True or False?
Organizational resources include the skills of a company’s top management team, the vision of its founder/CEO, and the possession of valuable and scarce resources. True or False?
Signup and view all the answers
Specialized resources and coordination abilities are the sources of an organization's core competences. True or False?
Specialized resources and coordination abilities are the sources of an organization's core competences. True or False?
Signup and view all the answers
In an international strategy, companies with a wide range of products use a global product group structure.
In an international strategy, companies with a wide range of products use a global product group structure.
Signup and view all the answers
The product group structure allows a company to achieve superior efficiency and quality, but it is weak when it comes to responsiveness to customers.
The product group structure allows a company to achieve superior efficiency and quality, but it is weak when it comes to responsiveness to customers.
Signup and view all the answers
A global matrix structure can lower global cost structures and differentiate activities through superior innovation and responsiveness to customers globally.
A global matrix structure can lower global cost structures and differentiate activities through superior innovation and responsiveness to customers globally.
Signup and view all the answers
The product group managers are responsible for organizing all aspects of value creation on a global level.
The product group managers are responsible for organizing all aspects of value creation on a global level.
Signup and view all the answers
The main drawback of the global matrix structure is that it does not provide flexibility for managing local issues.
The main drawback of the global matrix structure is that it does not provide flexibility for managing local issues.
Signup and view all the answers
In a transnational strategy, the focus is still on centralized control.
In a transnational strategy, the focus is still on centralized control.
Signup and view all the answers
Implementing a global strategy involves locating manufacturing and other value chain activities at global locations to increase efficiency and quality.
Implementing a global strategy involves locating manufacturing and other value chain activities at global locations to increase efficiency and quality.
Signup and view all the answers
The product group structure reduces the transaction costs involved in managing handoffs across countries and world regions.
The product group structure reduces the transaction costs involved in managing handoffs across countries and world regions.
Signup and view all the answers
Companies implementing an international strategy lose the benefits of operating globally.
Companies implementing an international strategy lose the benefits of operating globally.
Signup and view all the answers
A company embarking on a global strategy may use a product group structure to decide how best to pursue global strategy and which value-chain activities should be performed where for increased efficiency.
A company embarking on a global strategy may use a product group structure to decide how best to pursue global strategy and which value-chain activities should be performed where for increased efficiency.
Signup and view all the answers
An organization's ability to coordinate its functional and organizational resources creates a competitive advantage. True or False?
An organization's ability to coordinate its functional and organizational resources creates a competitive advantage. True or False?
Signup and view all the answers
Global expansion allows an organization to create value for its stakeholders in three ways. True or False?
Global expansion allows an organization to create value for its stakeholders in three ways. True or False?
Signup and view all the answers
Corporate-level strategy is formulated at three organizational levels. True or False?
Corporate-level strategy is formulated at three organizational levels. True or False?
Signup and view all the answers
The responsibility of top-management team is to decide how to position the organization to compete for resources in its environment. True or False?
The responsibility of top-management team is to decide how to position the organization to compete for resources in its environment. True or False?
Signup and view all the answers
Functional-level strategy aims to create core competence that gives the organization a competitive disadvantage. True or False?
Functional-level strategy aims to create core competence that gives the organization a competitive disadvantage. True or False?
Signup and view all the answers
The strength of a function's core competence depends only on its skills and resources. True or False?
The strength of a function's core competence depends only on its skills and resources. True or False?
Signup and view all the answers
It is very difficult for a competitor to imitate an organization's structure but easy to imitate its culture. True or False?
It is very difficult for a competitor to imitate an organization's structure but easy to imitate its culture. True or False?
Signup and view all the answers
Business-level strategy focuses on selecting the domain in which an organization can take advantage of its functional-level core competences. True or False?
Business-level strategy focuses on selecting the domain in which an organization can take advantage of its functional-level core competences. True or False?
Signup and view all the answers
An organization can only pursue either low-cost or differentiation business-level strategy, not both simultaneously. True or False?
An organization can only pursue either low-cost or differentiation business-level strategy, not both simultaneously. True or False?
Signup and view all the answers
An organization has to change its business-level strategy over time to match changes in its environment. True or False?
An organization has to change its business-level strategy over time to match changes in its environment. True or False?
Signup and view all the answers
A focus strategy refers to diversifying in multiple segments of a market. True or False?
A focus strategy refers to diversifying in multiple segments of a market. True or False?
Signup and view all the answers
A low-cost strategy is associated with the need for close control of functional activities to monitor and lower the costs of product development. True or False?
A low-cost strategy is associated with the need for close control of functional activities to monitor and lower the costs of product development. True or False?
Signup and view all the answers
An organization's choice of structure is influenced by wider range of products, new customer groups, and pace of new product development.
An organization's choice of structure is influenced by wider range of products, new customer groups, and pace of new product development.
Signup and view all the answers
A functional structure is sufficient for a low-cost organization to coordinate its core competences.
A functional structure is sufficient for a low-cost organization to coordinate its core competences.
Signup and view all the answers
A market or geographical structure is best for an organization that handles different groups of customers.
A market or geographical structure is best for an organization that handles different groups of customers.
Signup and view all the answers
A product team or matrix structure is suitable when rapid product development and speedy response to competitors are crucial for competitive advantage.
A product team or matrix structure is suitable when rapid product development and speedy response to competitors are crucial for competitive advantage.
Signup and view all the answers
An organization must match its business-level strategy to the organizational structure to create competitive advantage.
An organization must match its business-level strategy to the organizational structure to create competitive advantage.
Signup and view all the answers
Organizations pursuing a low-cost strategy must develop values of economy and frugality.
Organizations pursuing a low-cost strategy must develop values of economy and frugality.
Signup and view all the answers
Cultural values of innovation, quality, excellence, and uniqueness help a differentiator implement its chosen strategy and become a source of competitive strength.
Cultural values of innovation, quality, excellence, and uniqueness help a differentiator implement its chosen strategy and become a source of competitive strength.
Signup and view all the answers
Vertical integration involves an organization taking over and owning its suppliers or distributors.
Vertical integration involves an organization taking over and owning its suppliers or distributors.
Signup and view all the answers
Related diversification is the entry into a new domain related in some ways to an organization’s core domain.
Related diversification is the entry into a new domain related in some ways to an organization’s core domain.
Signup and view all the answers
A multinational structure is generally used when a company pursues a multi-domestic strategy.
A multinational structure is generally used when a company pursues a multi-domestic strategy.
Signup and view all the answers
Implementing a global strategy generally involves locating manufacturing and other value chain activities at global locations to increase efficiency and quality.
Implementing a global strategy generally involves locating manufacturing and other value chain activities at global locations to increase efficiency and quality.
Signup and view all the answers
The global matrix structure provides flexibility for managing local issues.
The global matrix structure provides flexibility for managing local issues.
Signup and view all the answers
