Test 4 Flashcards
What statement concerning reengineering and TQM is correct
Reengineering and TQM usually take place after a company restructures.
What steps should managers take if the change process is to succeed
Determining the need to change
Determining the obstacles to change
Managing change
Evaluating the effects of change on organizational performs
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…
Portfolio of core competencies
Internal new ventures are likely to be preferred when..
A company possesses a set of valuable competencies in its existing businesses that can be leveraged to enter new business
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
Four to five
What strategy should be used when speed is an important consideration
Acquisition
A company considering entering an industry that is in the mature stage of its life cycle would generally prefer what entry strategy?
Acquisition
Acquisitions fail because of
Differences in corporate culture
What are the guidelines for a successful acquisition
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
What are true potential advantages of strategic alliances?
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
In a strategic alliance, a good partner..
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
Pertinent info about potential alliance partners is available from…
Informed 3rd parties
Investment bankers who have had dealings withy the firm
Former employees
Face to face meetings with senior managers
A key to making a strategic alliance work is…
Selecting the right partners
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
Organizational stucture
Flat organizational structures are characterized by…
Few levels of management and a relatively wide span of control
Tall organizational structures are characterized by…
Many levels of management and a relatively narrow span of control
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 _____
Minumum ; flatter
Authority is ______ when managers at the upper management levels of the organizational hierarchy retain the authority to make the most important decisions
Centralized
As new, small firms grow and mature, which structure are they likely to choose?
Functional
In the ____ structure activities are grouped by product line
Product
In the ______ structure activities are grouped by geographical region
Epigraphic all
To best meet the needs of its customers, a nationwide he supply company, such as Home Depot, should adopt a ______ structure
Geographical
What structure results in the creation of an office of corporate headquarters staff?
Multi divisional
Transfer pricing is used most commonly in a….
Multidivisional structure
