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  • ites; this has inspired her to set up a store where she can design and sell apparel. After experiencing some success with sales, she recruits two employees to handle customers at the store. However, she handles other day-to-day affairs herself, while continuing to design clothes. Which of the following is likely to be a pitfall of this organizational structure established by Jennifer??
A. Once the firm starts growing and attracting more customers she is likely to feel overloaded.
B. People are highly unlikely to buy clothes from a store run by a fashion design student.
C. The online admiration of her designs will not translate into sales.
D. Hiring more employees will result in loss of intellectual property.


1 points ?

QUESTION 72

  • Why does a firm use an organic organization combined with a functional structure when implementing a differentiation strategy??
A. It allows the firm to nurture and constantly upgrade necessary core competencies in manufacturing and logistics.
B. It allows the firm to create incentives to foster process innovation in order to drive down cost.
C. It allows the firm to reduce its cost below that of competitors while offering acceptable value.
D. It allows the firm to constantly upgrade core competencies in R&D, innovation, and marketing.


1 points ?

QUESTION 73

  • Frappe operates as a strategic business unit (SBU) under More or Less Inc., a home-furnishings manufacturer. From this information, it may be reasonable to infer that?
A. Frappe is dependent on the other SBUs in More or Less Inc.
B. Frappe is led by its own CEO (or equivalent general manager).
C. Frappe does not have its own profit and loss responsibility.
D. Frappe has a matrix organizational structure.


1 points ?

QUESTION 74

  • Which of the following real-world scenarios best exemplifies the use of organizational culture to build competitive advantage??
A. Apple develops high-tech products that are preferred by consumers across the world.
B. GM offers compensation if its products do not meet a consumer's expectations.
C. Southwest Airlines pilots sometimes help load baggage, which results in quick turnaround time.
D. W. L. Gore & Associates organizes its employees into project-based teams.


1 points ?

QUESTION 75

  • GreenValue Inc. started a chain of organic supermarkets that had initial success. The managers achieved a mastery of the firm's current environment, thereby filling a need in the market. However, GreenValue defined and measured it success by financial metrics, with a focus on short-term performance. As a result, the firm put in place metrics and systems to accommodate and manage increasing firm size due to continued success. As a result of this tightly coupled system, GreenValue developed a
A. resistance to change.
B. innovative approach.
C. flat organizational structure.
D. organic organizational structure.


1 points ?

QUESTION 76

  • Which of the following provides an example of a common drawback of a functional strategy?
A. Natashia did not accept the position with the firm because it has an ineffective cost-leadership strategy.
B. Joan was surprised about the inflexibility of her firm when it rejected her marketing plan.
C. Carl's manager dismissed his idea because it was too innovative.
D. David had a difficult time communicating efficiently with the manager of another department.


1 points ?

QUESTION 77

  • L?oreal Cosmetics Inc. has a functional structure that is flexible enough to allow it to leverage its brand name across different products. By doing this, Monica's is reaping ____ from its core competencies.
A. centralization
B. economies of scope
C. diversification
D. economies of scale


1 points ?

QUESTION 78

  • Which of the following shows founder imprinting??
A. A company's founder defines and shapes her organization; the founder dies; the influence of the founder on the organization's culture persists for decades.
B. A company's founder strongly influences her organization; the founder sells the company; the organization's culture changes after it is sold again in five years.
C. A company's founder strongly influences her organization; the founder sells the company; the organization's culture changes despite resistance from some employees.
D. A company's founder defines and shapes her organization; the founder dies; the influence of the founder on the organization's culture changes after a few years.


1 points ?

QUESTION 79

  • DigiGames Inc. established itself as the foremost producer of computer games. However, as the market for these games moved from laptop computers to cell phones based on cloud applications, DigiGames failed to adapt its games enough to this new environment. As result, the firm soon lost its competitive advantage. Which of the following best describes this scenario??
  • A.
  • movement from core rigidity to core competency
  • B.
  • movement from core competency to core rigidity
  • C.
  • movement from founder imprinting to core competency
  • D.
  • movement from core rigidity to founder imprinting

 


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