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Leslie is a newly-graduated certified public accountant with a specialty in corporate tax. She wishes to join an organization (not an accounting firm) that will allow her to concentrate on corporate tax and become deeply proficient in this area. Leslie should look for a position in a firm with a ____ structure.


A) simple
B) functional
C) multidivisional
D) network

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Toyota heavily uses a strategic network of vertical relationships. Toyota enables engineers in supplier firms to communicate easily with companies with whom Toyota has contracts for services. This results in the suppliers and the Toyota (the strategic center firm) being more


A) interdependent.
B) rivalrous.
C) creative.
D) complementary.

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Discuss the organizational structures used to implement the different business-level strategies.

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Business-level strategies are usually im...

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A multidomestic strategy would be associated with


A) high levels of coordination.
B) low levels of formalization.
C) many integrative mechanisms.
D) interdependent divisions.

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Arnold Schwartz, CEO and founder of Schwartz Engineering, has repeatedly rebuffed efforts by other firms to draw Schwartz Engineering into strategic alliances. Schwartz Engineering has built its highly-successful business around proprietary processes invented by Mr. Schwartz in the 1980s. Mr. Schwartz is concerned that his firm will be required to share the sources of its competitive advantage with alliance partners. This is a reasonable fear.

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Which of the following is a TRUE statement about organizational structures for implementing business-level strategies?


A) A cost leadership strategy requires a simple structure emphasizing high specialization, centralization, and structured job roles.
B) A differentiation strategy requires a functional structure with limited formalization, broad job descriptions, and an emphasis on the R&D and marketing functions.
C) An integrated cost leadership/differentiation strategy requires a multidivisional structure using high formalization, decentralized decision-making, and vertical coordination.
D) A focused strategy requires a functional structure featuring high levels of both specialization and formalization.

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A firm that frequently acquires and divests other firms is most likely to use the ____ structure.


A) matrix
B) competitive multidivisional
C) hybrid combination
D) horizontal complementary strategic alliance

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____ is the degree to which decision making authority is retained at higher managerial levels.


A) Formalization
B) Centralization
C) Specialization
D) Unification

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Icarus Aviation, Athena Instrumentation, and Hercules Miniaturization are strategic business units of Olympia Industries. One can expect that Icarus, Athena, and Hercules


A) use integrative mechanisms to share core competencies among themselves.
B) compete with one another in Olympia's internal capital markets.
C) are not necessarily related to one another in terms of products or markets.
D) are network member firms while Olympia is the strategic center firms.

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The three multidivisional structures that are used to implement a diversification strategy are the competitive form, the strategic business unit form, and the integrated form.

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A private university is made up of various "schools," such as the School of Journalism, the School of Business, the School of Law, the School of Arts and Sciences, and so forth. The university is experiencing some financial problems and the top administration has decided to have each school of the university become a profit center. This scheme is somewhat parallel to the organizational ____ structure.


A) network
B) strategic business unit multidivisional
C) functional
D) matrix

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Describe the organizational structures used to implement the three international strategies.

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A multidomestic strategy is implemented ...

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Firms implementing the multidomestic strategy often attempt to isolate themselves from global competitive forces by establishing the cost leadership position in the industry in each country in which they operate.

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As a firm grows, it typically shifts from a simple structure to a functional structure.

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If firms band together in a large number of vertical complementary strategic alliances, there is a danger that the government will suspect them of illegal collusive activities.

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Typically, a successful firm pursuing a differentiation strategy will


A) have a very hierarchical structure.
B) require a structure which is very formal.
C) use cross-functional development teams.
D) develop free-standing business units.

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A firm pursuing an unrelated diversification strategy will utilize a ____ structure.


A) network
B) cooperative form multidivisional
C) competitive form multidivisional
D) functional

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After years of negotiating short-term contracts with its suppliers, Icon Images has decided to agree to longer-term contracts. In doing this, Icon Images is hoping to


A) reduce transaction costs.
B) increase negotiating leverage with suppliers.
C) become less dependent on its suppliers.
D) move toward horizontal alliances with its suppliers.

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____ controls are objective criteria that allow corporate managers to evaluate the returns earned by individual business units.


A) Strategic
B) Managerial
C) Financial
D) Environmental

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Wal-Mart's effective strategy/structure configuration is


A) cost leadership/functional.
B) differentiation/functional.
C) related-constrained/multidivisional.
D) related-linked/multidivisional.

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