Org. Theory and Design: Chapter 8 (MC)
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Questions and Answers

What is a strategy in an organization?

  • A general approach to decision-making without specific goals
  • A set of random decisions and actions taken by managers
  • A rigid set of rules and regulations for employees
  • A specific pattern of decisions and actions taken by managers to achieve a competitive advantage (correct)

    • What are core competences in an organization?

  • General skills possessed by an organization's functional personnel
  • Specific resources that are easily imitated by competitors
  • Skills and abilities that have no impact on value creation activities
  • Skills and abilities in value creation activities that allow a company to achieve superior efficiency, quality, innovation, or customer responsiveness (correct)

    • What contributes to the strength of an organization's core competences?

  • The number of employees in the organization
  • The size of the organization
  • The amount of revenue generated by the organization
  • The specialized resources and coordination abilities that it possesses (correct)

    • What are functional resources in an organization?

    <p>Skills and abilities possessed by an organization's functional personnel</p> Signup and view all the answers

    Why is it not sufficient for an organization to have high-quality functional resources?

    <p>Because high-quality resources must also be unique and difficult to imitate</p> Signup and view all the answers

    What are organizational resources in an organization?

    <p>Company-specific skills and competences that give an organization a competitive advantage</p> Signup and view all the answers

    What is the primary focus of coordination ability in an organization?

    <p>Creating value from functional and organizational resources</p> Signup and view all the answers

    Which of the following is NOT a way for an organization to create value through global expansion?

    <p>Gaining access to local skills and resources</p> Signup and view all the answers

    At which organizational level is strategy formulated to position the organization for competitive advantage in its specific segment of the industry?

    <p>Business level</p> Signup and view all the answers

    What is the strategic goal of each function within an organization?

    <p>To create a core competence for competitive advantage</p> Signup and view all the answers

    What is the responsibility of corporate-level managers in a multi-business organization?

    <p>Combining value-creation skills to improve the competitive position</p> Signup and view all the answers

    What does business-level strategy focus on selecting?

    <p>The domain in which the organization will compete</p> Signup and view all the answers

    What is the primary requirement for an organization to exploit its differentiation advantage?

    <p>Decentralized, cross-functional team approach to decision-making</p> Signup and view all the answers

    3

    <p>Market segmentation</p> Signup and view all the answers

    What is the main focus of functional-level strategy and structure?

    <p>Developing core competences</p> Signup and view all the answers

    Why does an organization have to change its business-level strategy over time?

    <p>To match changes in the environment</p> Signup and view all the answers

    What is the role of an organic structure in relation to a low-cost business-level strategy?

    <p>It allows for decentralized, cross-functional team approach to decision-making</p> Signup and view all the answers

    What must an organization match to create a competitive advantage?

    <p>Organizational structure with business-level strategy</p> Signup and view all the answers

    Which structure is best suited for an organization focused on serving the needs of different customer groups?

    <p>Market structure</p> Signup and view all the answers

    What cultural values help a differentiator implement its chosen strategy?

    <p>Values of innovation, quality, excellence, and uniqueness</p> Signup and view all the answers

    What is the entry into a new domain that is related in some ways to an organization’s domain called?

    <p>Related diversification</p> Signup and view all the answers

    What strategy involves an organization taking over and owning its suppliers or distributors?

    <p>Forward vertical integration</p> Signup and view all the answers

    What company strategy is oriented towards local responsiveness with divisions in each country?

    <p>Multidomestic strategy</p> Signup and view all the answers

    What kind of structure is best suited for managing a global business?

    <p>Mulitdivisional structure</p> Signup and view all the answers

    What does vertical integration strategy involve?

    <p>Owning its suppliers or distributors</p> Signup and view all the answers

    What is the value creation advantage of related diversification?

    <p>Operating a set of organizations in concert more effectively than if each of the organizations were controlled by separate top-management teams.</p> Signup and view all the answers

    What are the four principal strategies companies can use as they begin to market their products and establish production facilities abroad?

    <p>Multidomestic, international, global, transnational.</p> Signup and view all the answers

    What cultural values must organzations develop if they pursue a low-cost strategy?

    <p>Cultural values of economy and frugality.</p> Signup and view all the answers

    What is the main drawback of the product group structure in implementing a transnational strategy?

    <p>Centralized control leading to limited responsiveness to customers</p> Signup and view all the answers

    In an international strategy using a global product group structure, what is the responsibility of product group managers?

    <p>Organizing value creation on a global level</p> Signup and view all the answers

    What is the primary advantage of a global matrix structure in implementing a transnational strategy?

    <p>Decentralized control to overseas managers</p> Signup and view all the answers

    Why does a company with a wide range of products use a global product group structure in an international strategy?

    <p>To coordinate the activities of home and international divisions</p> Signup and view all the answers

    What is a significant disadvantage of the global matrix structure in implementing a transnational strategy?

    <p>Weakness in achieving superior efficiency and quality</p> Signup and view all the answers

    How does the product group structure reduce transaction costs in managing operations across countries and world regions?

    <p>By coordinating the activities of home and international divisions</p> Signup and view all the answers

    What is the role of a global matrix structure in implementing a global strategy?

    <p>Simultaneously decentralizing and centralizing control</p> Signup and view all the answers

    Why is a product group structure considered weak in responsiveness to customers in implementing a transnational strategy?

    <p>Centralized control leading to limited responsiveness to customers</p> Signup and view all the answers

    What is the focus of a company implementing a global strategy using a global product group structure?

    <p>Organizing value creation on a global level</p> Signup and view all the answers

    What does a company using a global strategy primarily achieve by locating its manufacturing and value chain activities at global locations?

    <p>Increasing efficiency and quality.</p> Signup and view all the answers

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