Which of the following strategies is most likely to help a company to avoid the problem of opportunistic suppliers?
A) vertical integration
B) product differentiation
C) related diversification
D) market penetration
Question 2Which of the following statements is most likely to be true about generalists?
A) Generalists concentrate their competences and skills to compete for resources in a single niche.
B) Generalists are more likely to use matrix organizational structure than specialists.
C) Generalists are more likely to use product differentiation strategy than the specialists.
D) Generalists can often outcompete specialists when there is considerable uncertainty in the environment.
Question 3According to the study conducted by Lawrence and Lorsch, an organization functioning in a highly unstable environment was most effective when it ________.
A) used rules and SOPs extensively to coordinate tasks
B) concentrated decision-making authority at the top-management level
C) incorporated high levels of organizational integration
D) relied more on mutual adjustment between subunits
Question 4Which of the following is the primary disadvantage of backward and forward vertical integration?
A) increased bureaucratic costs
B) decreased product quality
C) decreased environmental richness
D) loss of control over inputs
Question 5According to contingency theory, in order to manage its environment effectively, an organization should ________.
A) use mechanistic structures to make organizational decisions
B) design its internal structure to control the external environment
C) concentrate all authority within the top-management level
D) limit the extent of internal differentiation and integration
Question 6A shoe manufacturer acquires the retail stores that sell its shoes. This is an example of a(n) ________.
A) forward vertical integration
B) unrelated diversification
C) market penetration
D) sequential horizontal integration
Question 7________ use their well-developed competences to compete for resources in many or all niches in an environment.
A) Organizations following an r-strategy
B) Generalist organizations
C) Organizations following a K-strategy
D) Specialist organizations
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