TEST 1 CHAPTER 3 PART 3

Question 1

A firm selling one or more businesses

Answer 1

Divestiture

Question 2

Continuously change the boundaries of
their task environment by seeking new
products and markets, diversifying and
merging, or acquiring new enterprises

Answer 2

Prospectors

Question 3

Stay within a stable product domain as a

strategic maneuver

Answer 3

Defenders

Question 4

The set of important assumptions about
the organization and its goals and
practices that members of the company
share

Answer 4

Organizational culture

Question 5

A _______ culture is one in which everyone

understands and believes in the firm’s goals, priorities, and practices

Answer 5

Strong culture

Question 6

In a ________ culture, different people hold different values, there is confusion about corporate goals, and it is not clear from one day to the next what principles should guide decisions.

Answer 6

Weak Culture

Question 7

Difficult to change

Can be a liability during a
merger as each separate culture
must merge together to change

Answer 7

Challenges of a strong culture

Question 8

Dominant attribute: cohesiveness, participation, teamwork, sense of family

Leadership style: Mentor, facilitator, parent figure

Bonding: Loyalty, Tradition, interpersonal. cohesion

Strategic emphasis: Toward developing human resources, commitment and morale

Answer 8

Clan (Collaborate) culture

Question 9

Dominant Attribute: Entrepreneurship, adaptability, dynamism

Leadership style: Innovator, entrepreneur, risk taker

Bonding: Flexibility, Risk, Entrepreneur

Strategic emphasis: Toward innovation, growth, new resources

Answer 9

Adhocracy (Create) culture

Question 10

Dominant Attribute: Order, rules and regulations, uniformity, efficiency

Leadership Style: Coordinator, organizer, administrator

Bonding: Rules, policies, and procedures, clear expectations

Strategic emphasis: Toward stability, predictability, smooth

Answer 10

Hierarchy (Control) culture