38 Questions
What is a strategy in an organization?
A specific pattern of decisions and actions taken by managers to achieve a competitive advantage
What are core competences in an organization?
Skills and abilities in value creation activities that allow a company to achieve superior efficiency, quality, innovation, or customer responsiveness
What contributes to the strength of an organization's core competences?
The specialized resources and coordination abilities that it possesses
What are functional resources in an organization?
Skills and abilities possessed by an organization's functional personnel
Why is it not sufficient for an organization to have high-quality functional resources?
Because high-quality resources must also be unique and difficult to imitate
What are organizational resources in an organization?
Company-specific skills and competences that give an organization a competitive advantage
What is the primary focus of coordination ability in an organization?
Creating value from functional and organizational resources
Which of the following is NOT a way for an organization to create value through global expansion?
Gaining access to local skills and resources
At which organizational level is strategy formulated to position the organization for competitive advantage in its specific segment of the industry?
Business level
What is the strategic goal of each function within an organization?
To create a core competence for competitive advantage
What is the responsibility of corporate-level managers in a multi-business organization?
Combining value-creation skills to improve the competitive position
What does business-level strategy focus on selecting?
The domain in which the organization will compete
What is the primary requirement for an organization to exploit its differentiation advantage?
Decentralized, cross-functional team approach to decision-making
3
Market segmentation
What is the main focus of functional-level strategy and structure?
Developing core competences
Why does an organization have to change its business-level strategy over time?
To match changes in the environment
What is the role of an organic structure in relation to a low-cost business-level strategy?
It allows for decentralized, cross-functional team approach to decision-making
What must an organization match to create a competitive advantage?
Organizational structure with business-level strategy
Which structure is best suited for an organization focused on serving the needs of different customer groups?
Market structure
What cultural values help a differentiator implement its chosen strategy?
Values of innovation, quality, excellence, and uniqueness
What is the entry into a new domain that is related in some ways to an organization’s domain called?
Related diversification
What strategy involves an organization taking over and owning its suppliers or distributors?
Forward vertical integration
What company strategy is oriented towards local responsiveness with divisions in each country?
Multidomestic strategy
What kind of structure is best suited for managing a global business?
Mulitdivisional structure
What does vertical integration strategy involve?
Owning its suppliers or distributors
What is the value creation advantage of related diversification?
Operating a set of organizations in concert more effectively than if each of the organizations were controlled by separate top-management teams.
What are the four principal strategies companies can use as they begin to market their products and establish production facilities abroad?
Multidomestic, international, global, transnational.
What cultural values must organzations develop if they pursue a low-cost strategy?
Cultural values of economy and frugality.
What is the main drawback of the product group structure in implementing a transnational strategy?
Centralized control leading to limited responsiveness to customers
In an international strategy using a global product group structure, what is the responsibility of product group managers?
Organizing value creation on a global level
What is the primary advantage of a global matrix structure in implementing a transnational strategy?
Decentralized control to overseas managers
Why does a company with a wide range of products use a global product group structure in an international strategy?
To coordinate the activities of home and international divisions
What is a significant disadvantage of the global matrix structure in implementing a transnational strategy?
Weakness in achieving superior efficiency and quality
How does the product group structure reduce transaction costs in managing operations across countries and world regions?
By coordinating the activities of home and international divisions
What is the role of a global matrix structure in implementing a global strategy?
Simultaneously decentralizing and centralizing control
Why is a product group structure considered weak in responsiveness to customers in implementing a transnational strategy?
Centralized control leading to limited responsiveness to customers
What is the focus of a company implementing a global strategy using a global product group structure?
Organizing value creation on a global level
What does a company using a global strategy primarily achieve by locating its manufacturing and value chain activities at global locations?
Increasing efficiency and quality.
Explore the factors influencing an organization's choice of structure to gain a competitive advantage. Understand how a wider product range, targeting new customer groups, and adapting to the pace of product development impact organizational structure.
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