SEVI 3013 Exam 3 Questions with
Verified Solutions
Corporate governance - ANSWER-the set of mechanisms used to manage the
relationships among stakeholders and to determine and control the strategic direction
and performance of organizations
Simple Organizational Structure - ANSWER-structure in which the owner-manager
makes all major decisions and monitors all activities, while the staff serves as an
extension of the manager's supervisory authority.
functional organizational structure - ANSWER-consists of a chief executive officer and a
limited corporate staff, with functional line managers in dominant organizational areas
such as production, accounting, marketing, R & D, engineering, and human resources.
multidivisional organizational structure - ANSWER-consists of a corporate office and
operating divisions, each operating division representing a separate business or profit
center in which the top corporate officer delegates responsibilities for day-to-day
operations and business-unit strategy to division managers.
three versions of the multidivisional (M-form) structure to implement different
diversification strategies - ANSWER-1. Cooperative form
2. Strategic Business Unit Form
3. Competitive form
cooperative form - ANSWER-an M-form structure in which horizontal integration is used
to bring about interdivisional cooperation
strategic business unit (SBU) form is an M-form consisting of 3 levels - ANSWER-1.
Corporate headquarters
2. Strategic business units (SBU's)
3. SBU divisions
Competitive form - ANSWER-an M-form structure characterized by complete
independence among the firm's divisions which compete for corporate resources
three international strategies - ANSWER-Multidomestic Strategy Global Strategy
Transnational Strategy
, Multidomestic Strateg - ANSWER-decentralizes the firm's strategic and operating
decisions to business units in each country so that product characteristics can be
tailored to local preferences.
global strategy - ANSWER-one through which the firm offers standardized products
across country markets.
transnational strategy - ANSWER-calls for the firm to combine the multi domestic
strategy's local responsiveness with the global strategy's efficiency.
The transnational strategy is often implemented through two possible combination
structures: - ANSWER-1. A global matrix structure
2. A hybrid global design
Strategic leadership - ANSWER-the ability to anticipate, envision, maintain flexibility,
and empower others to create strategic change as necessary
Strategic change - ANSWER-change resulting from selecting and implementing a firm's
strategies
what affects a firm's performance? - ANSWER-The style of leadership those in top
management positions use
what is one of the most effective strategic leadership styles? - ANSWER-
Transformational leadership
Effective strategic leaders: - ANSWER-•meaningfully influence the behaviors, thoughts,
and feelings of those with whom they work by word and by personal example, and
through their ability to envision the future
•Create and then support the context or environment through which stakeholders (e.g.,
employees and suppliers) can perform at peak efficiency
•Implement strategies in ways that lead to above-average returns
top management team - ANSWER-a group composed of the individuals responsible for
making certain the firm uses the strategic management process
heterogeneous top management team - ANSWER-composed of individuals with
different functional backgrounds, experience, and education
internal managerial labor market - ANSWER-consists of a firm's opportunities for
managerial positions and the qualified employees within that firm
external managerial labor market - ANSWER-the collection of managerial career
opportunities and the qualified people who are external to the organization in which the
opportunities exist
Verified Solutions
Corporate governance - ANSWER-the set of mechanisms used to manage the
relationships among stakeholders and to determine and control the strategic direction
and performance of organizations
Simple Organizational Structure - ANSWER-structure in which the owner-manager
makes all major decisions and monitors all activities, while the staff serves as an
extension of the manager's supervisory authority.
functional organizational structure - ANSWER-consists of a chief executive officer and a
limited corporate staff, with functional line managers in dominant organizational areas
such as production, accounting, marketing, R & D, engineering, and human resources.
multidivisional organizational structure - ANSWER-consists of a corporate office and
operating divisions, each operating division representing a separate business or profit
center in which the top corporate officer delegates responsibilities for day-to-day
operations and business-unit strategy to division managers.
three versions of the multidivisional (M-form) structure to implement different
diversification strategies - ANSWER-1. Cooperative form
2. Strategic Business Unit Form
3. Competitive form
cooperative form - ANSWER-an M-form structure in which horizontal integration is used
to bring about interdivisional cooperation
strategic business unit (SBU) form is an M-form consisting of 3 levels - ANSWER-1.
Corporate headquarters
2. Strategic business units (SBU's)
3. SBU divisions
Competitive form - ANSWER-an M-form structure characterized by complete
independence among the firm's divisions which compete for corporate resources
three international strategies - ANSWER-Multidomestic Strategy Global Strategy
Transnational Strategy
, Multidomestic Strateg - ANSWER-decentralizes the firm's strategic and operating
decisions to business units in each country so that product characteristics can be
tailored to local preferences.
global strategy - ANSWER-one through which the firm offers standardized products
across country markets.
transnational strategy - ANSWER-calls for the firm to combine the multi domestic
strategy's local responsiveness with the global strategy's efficiency.
The transnational strategy is often implemented through two possible combination
structures: - ANSWER-1. A global matrix structure
2. A hybrid global design
Strategic leadership - ANSWER-the ability to anticipate, envision, maintain flexibility,
and empower others to create strategic change as necessary
Strategic change - ANSWER-change resulting from selecting and implementing a firm's
strategies
what affects a firm's performance? - ANSWER-The style of leadership those in top
management positions use
what is one of the most effective strategic leadership styles? - ANSWER-
Transformational leadership
Effective strategic leaders: - ANSWER-•meaningfully influence the behaviors, thoughts,
and feelings of those with whom they work by word and by personal example, and
through their ability to envision the future
•Create and then support the context or environment through which stakeholders (e.g.,
employees and suppliers) can perform at peak efficiency
•Implement strategies in ways that lead to above-average returns
top management team - ANSWER-a group composed of the individuals responsible for
making certain the firm uses the strategic management process
heterogeneous top management team - ANSWER-composed of individuals with
different functional backgrounds, experience, and education
internal managerial labor market - ANSWER-consists of a firm's opportunities for
managerial positions and the qualified employees within that firm
external managerial labor market - ANSWER-the collection of managerial career
opportunities and the qualified people who are external to the organization in which the
opportunities exist
