Implementing Strategy In Companies That Compete Across Industries And Countries

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Questions Bank

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage
External Analysis: The Identification of Opportunities and Threats
Internal Analysis: Distinctive Competencies,Competitive Advantage,and Profitability
Building Competitive Advantage Through Functional-Level Strategy
Building Competitive Advantage Through Business-Level Strategy
Business-Level Strategy and the Industry Environment
Strategy and Technology
Strategy in the Global Environment
Corporate-Level Strategy: Horizontal Integration,Vertical Integration,and Strategic Outsourcing
Corporate-Level Strategy: Related and Unrelated Diversification
Corporate Performance,Governance,and Business Ethics
Implementing Strategy in Companies That Compete in a Single Industry
Implementing Strategy in Companies That Compete Across Industries and Countries

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Question 1

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In the multidivisional structure,each division typically contains only a partial set of value chain activities.

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Question 2

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In a firm with a multidivisional structure,corporate managers oversee the actions of divisional managers.

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Question 3

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The organizational hierarchy is flatter in a multidivisional structure than in a product or functional structure.

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Question 4

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It is important for corporate managers to be able to identify high-performing and underperforming divisions and to take corrective action as necessary.

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Question 5

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Unfortunately,different divisions in a firm with a multidivisional structure are not given authority to adopt their own organizational structures.

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Question 6

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In a multidivisional structure,corporate managers can compare the performance of one division against another in terms of its cost structure or the profit it generates.

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Question 7

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Competition for resources is one of the drawbacks of the multidivisional structure.

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Question 8

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Divisional battles may lead to battles over transfer pricing.

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Question 9

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The more interdependent the divisions in a multidivisional structure,the greater are the bureaucratic costs associated with obtaining the potential benefits from a particular strategy.

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Question 10

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In a related multidivisional structure,the idea of corporate culture is meaningless.

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Question 11

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Vertical integration is a less expensive strategy to manage than is unrelated diversification.

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Question 12

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Firms pursuing related diversification typically rely more on output control than on culture control.

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Question 13

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Companies pursue a localization strategy when they want to maximize responsiveness to the unique needs of customers in each country.

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Question 14

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When implementing an international strategy,many companies create global divisions that they add to their existing divisional structures.

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Question 15

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Companies pursue a global diversification and differentiation strategy when they want to minimize costs.

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Question 16

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Few integrating mechanisms are needed when a company uses a global-area structure.

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Question 17

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A firm that is pursuing a globalization strategy will typically use a global-area structure.

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Question 18

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When a firm implements a global strategy with a global product group structure; it will be more responsive to the unique needs of each local country.

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Question 19

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An approach to internal new venturing that has been championed by those who believe that the best way to encourage new-product development is to integrate this effort into the rest of the organization is the creation of a new-venture division.

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Question 20

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A joint venture occurs when two equal-sized firms agree to blend their operations,creating one larger firm.

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