Successfully implementing a cost leadership strategy requires
a. freedom from constraining rules.
b. centralization of authority.
c. communication between functional silos.
d. sharing of competencies among divisions.
Answer: centralization of authority.
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Strategic Management Chapter 9
- Toyota and its suppliers have a relationship in which Toyota encourages suppliers to modernize their facilities and provides them with technical and financial assistance to do so. It also promotes longer-term contracts with suppliers and enables engineers in the supplier companies to have better communication with Toyota. This is an example of a(n)
- McDonald's operates through a franchising system wherein the head office uses strategic and financial controls to ensure that the franchises are creating the greatest possible value. This is an example of a(n)
- Airlines have forged a number of complementary strategic alliances, in part because many airlines are not profitable. Some airlines participate in several alliances simultaneously. This tends to
- Toyota heavily uses a strategic network of vertical relationships. Toyota enables engineers in supplier firms to communicate easily with companies with which Toyota has contracts for services. This results in the suppliers and Toyota (the strategic center firm) being more
- Ichabod Industries has a Latin American Division, a European Division, an Industrial Lubricants Division, and a Food Service Division. Ichabod Industries probably uses the ______ organizational structure.
- The need for the organization to combine local responsiveness and efficiency is most critical in a _____ strategy.
- Which of the following is NOT a preliminary task of the strategic center firm in a strategic network?
- It is easiest to identify the company that functions as the strategic center firm in
- A multidomestic strategy would be associated with
- Galatea Foods was founded in Greece by Galatea Chronos in 1978, and the company spread rapidly through Western Europe. Ms. Chronos retains the office of CEO. The Spanish division is headed by her oldest son. The North European division is headed by her only daughter, and the French-Italian division is headed by Ms. Chronos' brother. This company probably uses the _____ strategy.
- The primary disadvantage of the multidomestic strategy and worldwide geographic area structure relates to limited
- One of the primary disadvantages of the global strategy and worldwide product divisional structure is that
- In the competitive form of the multidivisional structure, the focus of headquarters is on all of the following EXCEPT
- TheLG Company has units operating in significantly different industries and uses financial controls to manage its portfolio. LG is most likely using the _____ structure.
- Implementing the multidomestic strategy requires decentralization to
- A worldwide geographic area structure is an organizational form in which
- The fewest integrative devices are used in the _____ structure.
- In the _____ structure hierarchy, the headquarters relies on strategic controls to set rate-of-return targets.
- The CEO of Transector, Inc., set a 6.5 percent rate-of-return target for all divisions for the past year. Now, at the end of the year, three of Transector's seven divisions have not met this rate-of-return goal. The division managers of these three under-performing divisions have all secretly contacted executive-placement firms to investigate openings at other firms, because they know their future at Transector is in jeopardy as financial performance is all-important at Transector. Transector probably uses the _____ structure.
- Megaline, Inc., with five divisions, follows the competitive form of the multidivisional structure. One division has not met the rate-of-return goals for the past year. Another division has exceeded the rate-of-return goals. The other three divisions met the rate-of-return goals. The headquarters office must decide where to allocate capital in the next year. Which scenario is the MOST likely?
- The most centralized and most costly form of the multidivisional structure is the
- Which of the following multidivisional structures is CORRECTLY paired with the appropriate corporate-level strategy?
- A firm pursuing an unrelated diversification strategy will utilize a _____ structure.
- In the _____ multidivisional structure there is complete independence among the firm's divisions.
- When a corporation pursues a related constrained diversification strategy, financial controls may not add value to strategy implementation efforts because it is difficult to