Test Bank Key
C. Human resources departments are using online testing and evaluation techniques in the hiring process and online training after they hire
D. Procurement technologies that use Internet software to match buyers and sellers are highlighting specialized buyers and drawing attention to smaller suppliers.
Dess - Chapter 08 #50 Learning Objective: 4
575.
(p. 227)
Among all Canadian small- and medium-sized businesses
A. incumbent firms are entering market segments that they previously considered to be too small.
B. 34% are already relying on the Internet for part of their sales.
C. differentiators have been able to preserve the unique advantages that have always been the hallmark of their success.
D. 3.4% are making profits, the rest are not.
Dess - Chapter 08 #51 Learning Objective: 4
576.
(p. 229)
Combination strategies may work best for Internet competitors because, in the Internet age, A. there are fewer rather than more opportunities for achieving sustainable advantages by using
traditional competitive strategies.
B. cost management and control systems will increase in importance as management tools that all companies can use.
C. many of the unique advantages that were the hallmark of success for differentiators can easily be imitated.
D. all of the answers are correct
Dess - Chapter 08 #52 Learning Objective: 4
577.
(p. 212-214)
Discuss the reasons why the use of Internet technologies is more important to achieving competitive advantages than the technologies themselves.
Answers will vary.
Dess - Chapter 08 #53 Learning Objective: 2
578.
(p. 218-223)
Discuss some of the ways that digital technologies are changing how companies conduct business.
What is the role of the Internet in bringing about these digital technology-driven changes?
Answers will vary.
Dess - Chapter 08 #54 Learning Objective: 3
579.
(p. 214-218)
Briefly explain the impact of the Internet and Internet technologies on the five competitive forces.
Answers will vary.
Dess - Chapter 08 #55 Learning Objective: 1
580.
(p. 215)
How has the Internet made the problem of channel conflict worse? Provide examples of companies that have used the Internet to sell goods without creating channel conflict.
Answers will vary.
Dess - Chapter 08 #56 Learning Objective: 1
581.
(p. 220-221)
Briefly explain the role of search, evaluation, problem-solving and transaction activities in helping firms use the Internet to add value. Provide examples of companies that exhibit each of these value-adding activities.
Answers will vary.
Dess - Chapter 08 #57 Learning Objective: 3
582.
(p. 221-223)
Discuss the function of a business model and its role, if any, in creating competitive advantages.
Provide examples of companies that illustrate each of the seven Internet business models, based on commission, advertising, mark-up, production, referral, subscription, and fee-for-service.
Answers will vary.
Dess - Chapter 08 #58 Learning Objective: 3
583.
(p. 224-225)
Explain the impact of the Internet on overall cost leadership strategies. What are the advantages and pitfalls associated with using the Internet to pursue a strategy of cost leadership?
Answers will vary.
Dess - Chapter 08 #59 Learning Objective: 4
584.
(p. 225-226)
Explain the impact of the Internet on differentiation strategies. What are the advantages and pitfalls associated with using the Internet to pursue a strategy of differentiation?
Answers will vary.
Dess - Chapter 08 #60 Learning Objective: 4
585.
(p. 227-228)
Explain the impact of the Internet on focus strategies. What are the advantages and pitfalls associated with using the Internet to pursue a strategy of focus?
Answers will vary.
Dess - Chapter 08 #61 Learning Objective: 4
586.
(p. 229-230)
What are the benefits and risks associated with using the Internet to generate combination strategies?
How are Internet-based combination strategies creating competitive advantages?
Answers will vary.
Dess - Chapter 08 #62 Learning Objective: 4
587.
(p. 239)
There is no link between a firm's strategy and its structure.
FALSE
Dess - Chapter 09 #1 Learning Objective: 1
588.
(p. 240-241)
In a simple structure where the owner manager makes most of the important decisions, extensive rules and regulations are used to maintain order.
FALSE
Dess - Chapter 09 #2 Learning Objective: 2
589.
(p. 237-238)
As Power Corporation grew, it shied away from being an operator of the businesses it ended up owning.
A simple organizational structure may lead to problems such as unclear boundaries of authority and few career advancement options.
TRUE
Dess - Chapter 09 #4 Learning Objective: 2
591.
(p. 241-242)
One disadvantage of a functional structure is that differences in functional orientation may impede organization coordination and communication.
TRUE
Dess - Chapter 09 #5 Learning Objective: 2
592.
(p. 241-242)
To enhance integration and control of related product market activities, the functional structure minimizes centralization.
A major disadvantage of adopting a divisional structure is the tendency for managers to focus on short-term objectives.
TRUE
Dess - Chapter 09 #7
594.
(p. 244)
Rogers Communications has only two divisions: wireless and media.
FALSE
Dess - Chapter 09 #8 Learning Objective: 2
595.
(p. 245)
The strategic business unit (SBU) and holding company structure are variants of the functional form of structure.
The strategic business unit (SBU) structure is also referred to as the conglomerate structure.
FALSE
Dess - Chapter 09 #10 Learning Objective: 2
597.
(p. 246-247)
The matrix structure attempts to combine the advantages of the functional and product-oriented structure.
TRUE
Dess - Chapter 09 #11 Learning Objective: 2
598.
(p. 246-247)
A matrix organization is organized strictly along product lines.
FALSE
Dess - Chapter 09 #12 Learning Objective: 2
599.
(p. 246-247)
A major disadvantage of the matrix structure is that it duplicates the use of specialized personnel, equipment, and facilities.
FALSE
Dess - Chapter 09 #13 Learning Objective: 2
600.
(p. 247)
A worldwide product division structure is used when global strategies require that each division be responsible for overall efficiency and performance.
TRUE
Dess - Chapter 09 #14 Learning Objective: 3
601.
(p. 251)
The purpose of boundaryless forms of organizing is to facilitate the widespread sharing of knowledge and information across internal and external boundaries of the organization.
TRUE
Dess - Chapter 09 #15 Learning Objective: 4
602.
(p. 252)
Boundaryless structures replace traditional structures.
FALSE
Dess - Chapter 09 #16 Learning Objective: 4
603.
(p. 252)
In a barrier-free organization, differences in skills, authority, and talent disappear.
FALSE
Dess - Chapter 09 #17 Learning Objective: 5
604.
(p. 252-255)
An advantage of the barrier-free form of organizing is that internal cooperation and shared objectives are not required for it to work.
FALSE
Dess - Chapter 09 #18 Learning Objective: 5
605.
(p. 255-258)
Because the modular form of organizing involves outsourcing vital functions, modular firms often forfeit full strategic control.
FALSE
Dess - Chapter 09 #19 Learning Objective: 5
606.
(p. 255-258)
Modular companies can achieve rapid growth because they don't require large investments in fixed assets.
TRUE
Dess - Chapter 09 #20 Learning Objective: 5
607.
(p. 252)
Outsourcing relieves companies of the requirement to maintain skill levels needed to manufacture essential components.
TRUE
Dess - Chapter 09 #21 Learning Objective: 5
608.
(p. 256)
One of the risks of outsourcing is a loss of cross-functional skills.
TRUE
Dess - Chapter 09 #22 Learning Objective: 5
609.
(p. 259)
The virtual type of organization is a network of independent companies linked together to share skills, costs, and access to one another's markets.
TRUE
Dess - Chapter 09 #23 Learning Objective: 5
610.
(p. 259)
The virtual organization is characterized by participating firms which pursue a collective strategy that enables them to cope with environmental uncertainty through cooperative efforts.
TRUE
Dess - Chapter 09 #24 Learning Objective: 5
611.
(p. 259)
Managing virtual structures requires new and difficult-to-acquire managerial skills.
TRUE
612.
(p. 239)
When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a
A. divisional structure.