MGMT 425 ANSWERS AND QUESTIONS SET A+
✔✔WALMART'S effective strategy/structure configuration is:
a. cost leadership/functional.
b. differentiation/functional.
c. related-constrained/multidivisional.
d. related-linked/multidivisional. - ✔✔A
✔✔FIRMS Seeking to compete on the basis of cost leadership particularly need support
from the ____ and ____ functions.
a. finance, accounting
b. manufacturing, process R&D
c. product R&D, marketing
d. management information, finance - ✔✔B
✔✔THE __________ structure is best for implementing the related constrained
diversification strategy.
a. functional
b. competitive form of the multidivisional
c. SBU form of the multidivisional
d. cooperative form of the multidivisional - ✔✔D
✔✔THE BEST multidivisional structure to use:
a. is the competitive form.
b. is the SBU form.
c. is the cooperative form.
d. depends on the degree of diversification. - ✔✔D
✔✔ORTIZ is a manager of BRS Corp. Ortiz's division did not meet financial targets this
year. Ramirez, manager of another division, has indicated that Ortiz's division incurred
significant costs which resulted in Ramirez's division setting record profits for the year.
As a result, performance for BRS as a whole exceeded projections. Which pairing of
organizational structures for BRS and bonus for Ortiz is most plausible?
a. cooperative structure; no bonus due to failure to meet divisional target.
b. competitive structure; no bonus due to failure to meet divisional target.
, c. cooperative structure; a bonus for increasing organizational performance.
d. competitive structure; a bonus for increasing organizational performance. - ✔✔C
✔✔WHICH Organizational structure will emphasize financial controls for headquarters'
evaluation of operating units while the operating units will emphasize strategic controls
within their units' performance?
a. Functional structure
b. Cooperative M-Form
c. SBU Form
d. Competitive M-Form - ✔✔C
✔✔ICARUS Aviation, Athena Instrumentation, and Hercules Miniaturization are
strategic business units of Olympia Industries. One can expect that Icarus, Athena, and
Hercules:
a. use integrative mechanisms to share core competencies among themselves.
b. compete with one another in Olympia's internal capital markets.
c. are not necessarily related to one another in terms of products or markets.
d. are network member firms while Olympia is the strategic center firms. - ✔✔C
✔✔IN The ____ structure hierarchy, the headquarters relies on strategic controls to set
rate-of-return targets and financial controls to monitor divisional performance relative to
those targets.
a. functional
b. cooperative
c. competitive
d. SBU - ✔✔C
✔✔FIRMS Such as Textron Inc. that frequently acquire and divest other firms are most
likely to use the ____ structure.
a. matrix
b. competitive multidivisional
c. hybrid combination
d. horizontal complementary strategic alliance - ✔✔B
✔✔THE Need for the organization to combine local responsiveness and efficiency is
most critical in a ____ strategy.
a. multidomestic
b. transnational
c. global
d. focus - ✔✔B
✔✔WALMART'S effective strategy/structure configuration is:
a. cost leadership/functional.
b. differentiation/functional.
c. related-constrained/multidivisional.
d. related-linked/multidivisional. - ✔✔A
✔✔FIRMS Seeking to compete on the basis of cost leadership particularly need support
from the ____ and ____ functions.
a. finance, accounting
b. manufacturing, process R&D
c. product R&D, marketing
d. management information, finance - ✔✔B
✔✔THE __________ structure is best for implementing the related constrained
diversification strategy.
a. functional
b. competitive form of the multidivisional
c. SBU form of the multidivisional
d. cooperative form of the multidivisional - ✔✔D
✔✔THE BEST multidivisional structure to use:
a. is the competitive form.
b. is the SBU form.
c. is the cooperative form.
d. depends on the degree of diversification. - ✔✔D
✔✔ORTIZ is a manager of BRS Corp. Ortiz's division did not meet financial targets this
year. Ramirez, manager of another division, has indicated that Ortiz's division incurred
significant costs which resulted in Ramirez's division setting record profits for the year.
As a result, performance for BRS as a whole exceeded projections. Which pairing of
organizational structures for BRS and bonus for Ortiz is most plausible?
a. cooperative structure; no bonus due to failure to meet divisional target.
b. competitive structure; no bonus due to failure to meet divisional target.
, c. cooperative structure; a bonus for increasing organizational performance.
d. competitive structure; a bonus for increasing organizational performance. - ✔✔C
✔✔WHICH Organizational structure will emphasize financial controls for headquarters'
evaluation of operating units while the operating units will emphasize strategic controls
within their units' performance?
a. Functional structure
b. Cooperative M-Form
c. SBU Form
d. Competitive M-Form - ✔✔C
✔✔ICARUS Aviation, Athena Instrumentation, and Hercules Miniaturization are
strategic business units of Olympia Industries. One can expect that Icarus, Athena, and
Hercules:
a. use integrative mechanisms to share core competencies among themselves.
b. compete with one another in Olympia's internal capital markets.
c. are not necessarily related to one another in terms of products or markets.
d. are network member firms while Olympia is the strategic center firms. - ✔✔C
✔✔IN The ____ structure hierarchy, the headquarters relies on strategic controls to set
rate-of-return targets and financial controls to monitor divisional performance relative to
those targets.
a. functional
b. cooperative
c. competitive
d. SBU - ✔✔C
✔✔FIRMS Such as Textron Inc. that frequently acquire and divest other firms are most
likely to use the ____ structure.
a. matrix
b. competitive multidivisional
c. hybrid combination
d. horizontal complementary strategic alliance - ✔✔B
✔✔THE Need for the organization to combine local responsiveness and efficiency is
most critical in a ____ strategy.
a. multidomestic
b. transnational
c. global
d. focus - ✔✔B
