Question

Question 1 (1 point)
A ________ business-level strategy is a plan whereby an organization produces high-priced, quality products aimed at particular market segments.
Question 1 options:

A) differentiation

B) lateral diversification

C) market penetration

D) vertical integration
Question 2 (1 point)
Typically, the manufacturing function in an organization uses ________.
Question 2 options:

A) a high level of standardization

B) a flat organizational structure

C) an organic structure

D) decentralized decision-making
Question 3 (1 point)
A global matrix structure is most appropriate for a company pursuing a(n) ________ strategy.
Question 3 options:

A) global

B) transnational

C) multidomestic

D) international
Question 4 (1 point)
Which of the following statements is true regarding an organization following a low-cost strategy?
Question 4 options:

A) Low-cost organizations typically use complex organizational structures.

B) The organizational structure used by a low-cost organization generally has higher integration than that used by a differentiator.

C) An organic structure is more suitable for a low-cost organization than a mechanistic structure.

D) Typically, low-cost organizations use centralized decision-making.
Question 5 (1 point)
A computer manufacturer uses its competence in product design to produce laser printers. Which of the following strategies is being pursued by this company?
Question 5 options:

A) vertical integration

B) related diversification

C) product development

D) market penetration
Question 6 (1 point)
In a ________ structure, each business is placed in a self-contained division and there is no contact between divisions.
Question 6 options:

A) conglomerate

B) matrix

C) mechanistic

D) functional
Question 7 (1 point)
For a soft drinks company, which of the following will be considered forward vertical integration?
Question 7 options:

A) buying sugar plantations

B) buying a bottling and trucking company that distributes soft drinks

C) establishing a company that manufactures and sells snack foods

D) taking over a company that provides software services
Question 8 (1 point)
Which of the following is an example of a functional resource?
Question 8 options:

A) skills of a technical expert

B) plant equipment

C) corporate reputation

D) capital reserves
Question 9 (1 point)
A shoe manufacturer acquires the retail stores that sell its shoes. This is an example of a(n) ________.
Question 9 options:

A) unrelated diversification

B) forward vertical integration

C) market penetration

D) sequential horizontal integration
Question 10 (1 point)
According to ________ theory, an organization's design should permit each function to develop a structure that suits its human and technical resources.
Question 10 options:

A) strategic choice

B) transaction cost

C) contingency

D) resource dependence
Question 11 (1 point)
Which of the following statements is true regarding a global product group structure?
Question 11 options:

A) A global product group structure increases local responsiveness of an organization.

B) Typically, a global product group structure is used by an organization that is implementing a transnational strategy.

C) A global product group structure lowers the bureaucratic costs associated with resource transfers between corporate headquarters and the company's global divisions.

D) A global product group structure allows different product groups to transfer and share their competences.
Question 12 (1 point)
Which of the following functions typically has the most organic structure?
Question 12 options:

A) materials management

B) R&D

C) manufacturing

D) sales
Question 13 (1 point)
Which of the following structures is a variant of the multidivisional structure?
Question 13 options:

A) conglomerate structure

B) mechanistic structure

C) Functional structure

D) matrix structure
Question 14 (1 point)
3M and HP, invest heavily to improve their skills in R&D and product design. This is an example of a ________ strategy.
Question 14 options:

A) supply-level

B) business-level

C) corporate-level

D) functional-level
Question 15 (1 point)
Coca-Cola uses its marketing skills to defend its niche against PepsiCo. This is an example of a ________ strategy.
Question 15 options:

A) functional-level

B) business-level

C) contingency-level

D) corporate-level
Question 16 (1 point)
Which of the following functions would be responsible for implementing a just-in-time inventory system?
Question 16 options:

A) manufacturing

B) materials management

C) marketing

D) R&D
Question 17 (1 point)
________ strategy is a plan to use and combine an organization's functional core competences to position it so it has a competitive advantage in its domain or segment of its industry.
Question 17 options:

A) Corporate-level

B) Functional-level

C) Business-level

D) Environmental-level
Question 18 (1 point)
In the context of global expansion strategies, which of the following strategies has the highest need to coordinate and integrate global activities?
Question 18 options:

A) transnational strategy

B) international strategy

C) multidomestic strategy

D) global strategy
Question 19 (1 point)
________ strategy involves specializing in one segment of a market and concentrating all of the organization's resources on that segment.
Question 19 options:

A) Diversification

B) Vertical integration

C) Focus

D) Horizontal integration
Question 20 (1 point)
A company pursuing a multidomestic strategy generally operates with a ________ structure.
Question 20 options:

A) global matrix

B) multidivisional matrix

C) global geographic

D) global product team
Question 21 (1 point)
KFC specializes in the chicken segment of the fast-food market. This is an example of a ________ strategy.
Question 21 options:

A) vertical integration

B) focus

C) market penetration

D) conglomerate diversification
Question 22 (1 point)
A core competence in ________ management can allow an organization quickly to discover and respond to customer needs.
Question 22 options:

A) marketing

B) human resource

C) financial

D) materials
Question 23 (1 point)
To become core competences, the functional resources possessed by an organization should be ________.
Question 23 options:

A) plentiful and easily available

B) unique and difficult to imitate

C) cheap

D) easily replaceable with alternative resources
Question 24 (1 point)
In order to strengthen an organization's technical and human resources, a manager trains and develops his subordinates. This is an example of a ________ strategy.
Question 24 options:

A) business-level

B) corporate-level

C) global expansion

D) functional-level
Question 25 (1 point)
Which of the following is the primary disadvantage of backward and forward vertical integration?
Question 25 options:

A) loss of control over inputs

B) decreased product quality

C) decreased environmental richness

D) increased bureaucratic costs

0 of 25 questions saved

Answer 1

Answer 1. A. Differentiation

Differentiation leads to the premium and price premium can be obtained by focusing on specific market with highly priced products. Therefore, answer is Differentiation.

Answer 2. A high level of standardization

Since manufacturing process requires strict quality control measure and it can be obtained by standardizing the manufacturing process and making it more process dependent rather than person dependent.

Answer 3- B. Transnational

An organization which operates transnational have different function located in different nations and this required a global matrix organization structure. E.g Company like Schneider electric follows the same.

Answer 4- D) Typically, low-cost organizations use centralized decision-making.

This is because low cost organizations need to maintain a very high level of efficiency to maintain their cost leadership and therefore, they save time and resources by making decision making centralized.