Question

17) Organizational strategy is formulated at all of the following levels except at the A) business level B) functional level C) individual level D) corporate level 18) strategy is a plan to use and develop core competences so that the organization cannot only can protect and enlarge its domain but can also expand into new domains A) Business-level B) Functional level C) Global level D) Corporate-level 15 19) Which of the following activities can be a source of both a low-cost advantage and a differentiation advantage? A) Targeting customer groups B) Forming long-term relationships with suppliers C) Creating new products D) Developing innovative training programs 20) suggests that each function should create a structure to match its resources. A) Transaction cost theory B) Strategic choice C) Contingency theory D) Resource dependence theory 21) 21) Mutual adjustment is the primary mechanism used to control activities in which of the following departments? A) Manufacturing B) Materials management C) R&D D) Sales 22) Taking core competencies and combining them to exploit opportunities in the environment is part 22). A) global level strategy C) corporate-level strategy B) functional-level strategy D) business-level strategy 23) 23) McDonald's core competences in manufacturing marketing, and materials management create a competitive advantage over rivals Burger King and Wendy's. This is an example of an) strategy. A) environmental B) educational C) business-level D) value creation 24) A focus strategy is a(n) A) corporate-level strategy C) functional-level strategy B) business-level strategy D) individual-level strategy - Tudun hinhnriced muality products

Answer 1

17) Answer C Individual level -  With respect to an organization, Individual Level refers to the roles and responsibilities assigned to an individual to complete a module or a part or an element of an overall assignment using individual task specific skills (technical or otherwise). Various such individual task add up to complete one level of assignment so that it may progress to next level where it may again be divided into subgroups or higher/successive individual task to complete the particular level of assignment. This process is repeated until the final level of assignment is achieved and the product / service is ready customer usage / application.

Organizational Strategy is the collective of decisions and actions a company takes to achieve tactical and strategic goals. Broadly there are three levels of organizational strategy. Corporate Level Strategy identifies and defines the important objectives of the organizations. Business Level Strategy focuses on the how the company intends to achieve the intended corporate goals. Functional Level Strategy defines the right methodology of performing the function or standard operating procedure to succeed in performing the function and contribute to fulfillment of business level goals.

18) Answer C . Corporate Level Strategy is developed taking into account the current product positioning, market constraints, challenges, competition, opportunities, unique value proposition, consolidation and expansion as key elements of company's objectives. Therefore it focuses on developing core competencies for market consolidation and portfolio diversification for expansionary objectives of the company.

Global Strategy on the other hand involves developing plans to expand the company's business beyond the current geographical limits of the company into international markets.

19) Answer C . Creating a new product can be a source of low cost advantage and differentiation advantage. With current market in any stage of maturation (nascent, developing, developed) with respect to a product, the current offering by the company and competitors variously enjoy the benefits of supplier relationship management, innovative training programs and customer group targeting. All three depending upon the size, competence, culture of organization and quality of leadership. Thus long term low cost advantage and product differentiation cannot be ensured from later three where there are even two competing companies willing and competent to exploit supplier relationship management, training and segment based targeting to lower cost as soon the competitor will catch up on these strategies to make their offering comparable. Only new product development ensures low cost and differentiation advantage for long term, although in today's information age even that is not a permanent advantage with competing companies willing to spend on research and development to make similar or superior products and competitive costs.

20 ) Answer D . Resource dependence theory suggest that resources are key to organizational success and control over resources ensures control over the performance of the organization. When every functional level works towards creating a structure to obtain resources necessary for successful operations, then every functional level is able to perform its schedule of activities in time leading to in time completion of overall task and thereby ensure organizational success.

Transaction Cost Theory explains the escalation of cost as a result of subletting or outsourcing and evaluates its relevance as per the business model and cost of operations. Contingency Theory defines the fluid (dynamic) nature of corporate organization and claims that the method of such organization changes as per requirement of organization from time to time depending upon situational factors and organizational necessities. Strategic Choice is the leadership level decision making to identify corporate and business goals of the organization and the necessary adoption of plans and actions to achieve those objectives.

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