Test 4

Question 1

What statement concerning reengineering and TQM is correct

Answer 1

Reengineering and TQM usually take place after a company restructures.

Question 2

What steps should managers take if the change process is to succeed

Answer 2

Determining the need to change
Determining the obstacles to change
Managing change
Evaluating the effects of change on organizational performs

Question 3

Hamel and Prahalad have developed a model that can help managers assess how and when they should expand beyond their current market or industry. They find that it is useful to view a company as a…

Answer 3

Portfolio of core competencies

Question 4

Internal new ventures are likely to be preferred when..

Answer 4

A company possesses a set of valuable competencies in its existing businesses that can be leveraged to enter new business

Question 5

Research indicates that the uncertainty surrounding new ventures to be so heat that it usually took a company ______ years after launching the venture to reasonably estimate the vented future profitability

Answer 5

Four to five

Question 6

What strategy should be used when speed is an important consideration

Answer 6

Acquisition

Question 7

A company considering entering an industry that is in the mature stage of its life cycle would generally prefer what entry strategy?

Answer 7

Acquisition

Question 8

Acquisitions fail because of

Answer 8

Differences in corporate culture

Question 9

What are the guidelines for a successful acquisition

Answer 9

Good bidding strategy

A clear strategic rationale for making the acquisition

Thorough preacquisition screening

A good plan to integrate the acquired company into the acquired one

Question 10

What are true potential advantages of strategic alliances?

Answer 10

Facilitating entry into a market

Sharing the costs of developing new products

Bringing together complementary skills and assets that neither company could easily develop on its own

Question 11

In a strategic alliance, a good partner..

Answer 11

Has capabilities that the company values but that it lacks

Helps the company achieve its strategic goals

Shares the firms vision for the purpose of the alliance

Is unlikely to opportunistically exploit the alliance

Question 12

Pertinent info about potential alliance partners is available from…

Answer 12

Informed 3rd parties

Investment bankers who have had dealings withy the firm

Former employees

Face to face meetings with senior managers

Question 13

A key to making a strategic alliance work is…

Answer 13

Selecting the right partners

Question 14

What provides the vehicle through which managers can coordinate the activities of a company’s various functions, divisions, and business units to take advantage of their skills and competencies

Answer 14

Organizational stucture

Question 15

Flat organizational structures are characterized by…

Answer 15

Few levels of management and a relatively wide span of control

Question 16

Tall organizational structures are characterized by…

Answer 16

Many levels of management and a relatively narrow span of control

Question 17

The minimum chain of command principe states that firms should use the ____ levels of hierarchy that are necessary, and often result in or organizational structure that are _____

Answer 17

Minumum ; flatter

Question 18

Authority is ______ when managers at the upper management levels of the organizational hierarchy retain the authority to make the most important decisions

Answer 18

Centralized

Question 19

As new, small firms grow and mature, which structure are they likely to choose?

Answer 19

Functional

Question 20

In the ____ structure activities are grouped by product line

Answer 20

Product

Question 21

In the ______ structure activities are grouped by geographical region

Answer 21

Epigraphic all

Question 22

To best meet the needs of its customers, a nationwide he supply company, such as Home Depot, should adopt a ______ structure

Answer 22

Geographical

Question 23

What structure results in the creation of an office of corporate headquarters staff?

Answer 23

Multi divisional

Question 24

Transfer pricing is used most commonly in a….

Answer 24

Multidivisional structure

Question 25

What integrating mechanisms consists of one member from each relevant function or division assigned to a ad hoc committee

Answer 25

Temporary task force

Question 26

Strategic control systems

Answer 26

Enable a company to evaluate whether it is successfully implementing its strategy

Question 27

What are the company levels where strategic control systems measure performance

Answer 27

Functional
Corporate
Divisional
Individual

Question 28

What are the types of organizational control systems

Answer 28

Output control
Behavioral control
Financial control

Question 29

Standardization is a form of….

Answer 29

Behavior control

Question 30

Standardization is employed to squeeze out costs in manufacturing. Standardization may be achieved through standardization of….

Answer 30

Inputs, conversion activities, and outputs

Question 31

Bill gates deliberate cultivation of values that encourage subordinates to perform in innovative and creative ways is an example of

Answer 31

Organizational culture

Question 32

Control through organizational culture

Answer 32

Involves employees internalizing the norms and values of the organization

Question 33

The virtue of shared values is that it

Answer 33

Increases integration and improved coordination among organizational members

Question 34

What action do you expect to see in a company that is undergoing a reengineering?

Answer 34

Examining business processes to better serve customers