Question
1) A firm is operating in various different geographical regions that vary vastly in terms of customer tastes and preferences, cultural and political climate, etc.
1) A firm is operating in various different geographical regions that vary vastly in terms of customer tastes and preferences, cultural and political climate, etc. Given this infformation, what type ofdepartmental groupingmay be best suited for the firm to be able to deal with these region-specific differences in customer preferences, culture, regulation etc.?
Functional grouping | ||
Geographic grouping | ||
Holacracy | ||
Vertical Grouping |
2) Consider the following two firms -Firm A andFirm B.
Firm A-->Firm A delivers flowers for special occasions. Its operations are entirely online. Customers go to its website, order the type of flowers they want, and select the day and date of delivery. The firm then sources these flowers from its vendors and delivers them to the customer. So, the main stake-holders the firm interacts with are (a) the flower vendors and (b) the customers. Typically, the supply of flowers is pretty consistent and even the demand from customers has also remained the same over the years.
Firm B --> Firm B is a designer clothing store. It also has a similar 'online' business model. Customers browse through its website and order clothes, which are then delivered by the firm. However, customer preferences change frequently. Also, fashion trends and the demand for different types of clothes change with the seasons - clothes in demand in winter are different from those in demand in the summer. To ensure that the firm is able to retain its customers, the firm works with several designers who design clothes based on the latest fashion trends. The firm then needs to work with weavers and cloth manufacturers to make the clothes. Because the competition is very strong, the firm also uses the services of a marketing firm to advertise its products creatively. Another issue is the website itself. Since other competitors also operate online, firm B needs to make the online experience of customers hassle free. As technology related to website design keeps on changing constantly, firm B has hired a software firm to manage its website operations.
Overall, Firm B interacts with various stakeholders including (a) customers, (b) designers, (c) weavers/vendors, (d) Marketing firm, (e) Software firm and operates in an environment where customer demands & preferences, technology, and marketing needs are constantly changing.
FROM THE BELOW LIST OF STATEMENTS,SELECT ALL THE STATEMENTS THAT ARE CORRECT BASED ON THE INFORMATION GIVEN ABOVE.
Of the two firms, Firm B needs to have a higher speed of responding to environmental changes than firm A | ||
The use of scenario planning is likely to bemore beneficial to firm B than to firm A | ||
Firm B operates in an environment that ismore uncertain than the environment in which Firm A operates | ||
Use of 'Boundary Spanning' roles is likely to benefit Firm B more than firm A | ||
With regard to the stable-unstable dimension of external environment, we can say that Firm A operates in an environment that is more unstable than the environment of Firm B |
3) SelectALL the operational goals from the below list that are bothspecific andmeasurable:
Increase profit margin for product A from 10% to 14% and for product B from 5% to 8% | ||
Ensure that by 31st March, 2020,ALL employees in level 4 and 5 in the organization are provided the training on interpersonal skills. | ||
Reduce assembly cycle time for product A from 3 days to 2 days by 31st Dec. 2020 | ||
Improve production of part A by 31st Dec 2020 |
4) Please match the appropriate pairs based on what we have discussed and studied in the class:
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5) A complex and unstable environment will be high in uncertainty.
Agree
Disagree
6) An organization's stakeholder is defined as any group inside or outside of the organization that has a stake in the organization's performance and can be affected by it. Stakeholders can include investors, shareholders, customers, suppliers, vendors, the community the firm operates in, employees, etc. Based on what we have discussed, these stakeholders almost always have very similar expectations from the firm. Hence, it is may be relatively easy for managers to set goals that meet these expectations.
True
False
7) As the uncertainty in the external environment of the firm increases, continuous and ongoing scanning and evaluation of the external environment becomes more important
True
False
8) Firm A has:
a) Smaller span of control and more organizational levels
b) Higher formalization
c) Moderate level of centralization
d) Higher specialization
Firm B has:
a) Larger span of control and less number of organizational levels
b) Lower formalization
c) Moderate level of centralization
d) Lower specialization
Based on just the above information, whichone of the following statements is correct?
Relatively speaking, Firm B can be said to be more mechanistic than Firm A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
None of the above | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Relatively speaking, Firm A can be said to be more mechanistic than Firm B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Relatively speaking, Firm A and Firm B are equal as far as the mechanistic-organic structural design is concerned
9) Saucony shoes ran an advertisement in which they claimed to be developing "Bio-degradable" shoes. They are positioning these shoes as a unique type of environment-friendly product that is not yet available with any of the other shoe companies like Nike, Adidas etc. Saucony is investing substantial amount of money in R&D for these type of shoes and also spending considerable amount on advertising. The aim is to capture a loyal customer base of people who are highly conscious about sustainability issues and will appreciate this unique characteristic of the shoes. One possibility is that due to substantial investment in innovative R&D and marketing, the price of the shoes might be slightly higher than other shoes on the market. Select the option that represents the type of organizational strategy that Saucony has adopted in this case:
10) A trade association of firms in a given industry can at times use collective resources to lobby for government policies to protect that industry or to set standards and protocols to be followed by everyone in that industry True False
11) A firm'smission or official goals that outline its long term plans about what it is trying to achieve and where it wants to head in the long run, can help the firm gain legitimacy in the eyes of different stakeholders. True False
12) We have discussed different types of inter-organizational relationships. Which of the following is NOT a type of an inter-organizational relationship?
13) Firm A depends on Firm B for a resource that is very rare and not widely available elsewhere. Based on the concepts we studied in the class on inter-organizational relationships, we can say that firm A has higher power in the relationship between these two firms. True False 14) Amazon has recently started selling various everyday products under its own label of 'Amazon Basics.' By focusing on extremely efficient production and logistics processes, Amazon has been able to reduce the cost of production of these items. As a result, it is able to sell these items at a price that is substantially lower than the price at which other brands sell similar items. Thus, by reducing the cost of production, offering lowest prices on the products, and focusing on large volume of production and sales, Amazon hopes to gain profits based on the large quantity of items that it sells. A point to note is that these items do not necessarily have any unique feature or quality that sets them apart from items sold by other brands, except for their low price. What type of strategy is Amazon using in this case?
15) The task environment is that part of a firm's external environment with which the firm interacts directly & which can have a direct impact on the firm's ability to achieve its goals True False
16) In afunctional grouping of the firm's departments, employees with similar professional qualifications in functional areas (e.g., Finance, Marketing, HR, Operations etc.) are grouped together to consolidate their skills and knowledge. True False
17) When centralization is low, even employees in the lower levels of the organization will have a large amount of decision making authority and can feel empowered due to it. True False
18) Let us assume that Facebook views any kind of dependence on another firm as necessarily a bad thing. Hence, any time that Facebook executives feel that the firm may be getting too dependent on another firm, they simply go out and acquire that firm. This is an example of a resource dependence approach. True False
19) Ford Motors announced last year that it will work with the popular home security firm ADT to setup a company called 'Canopy' that will be specifically focused on developing products aimed at preventing car thefts. Canopy will combine ADT's professional security monitoring experience with Ford's AI-driven video camera technology to help customers strengthen security of new and existing vehicles across automotive brands. As per our class discussions, Canopy, which operates as a separate entity focused specifically on preventing car thefts is an example of:
20) Match the correct pairs based on the concepts we have covered in class
21) Assuming that the number of employees in a firm remains constant, what will happen if we increase the span of control?
22) A Balanced Score Card is a tool to establish organization-level strategy for the firm. It focuses ONLY on the financial goals of the firm and its profit motive - and can provide a framework for lower, department level operational goals. True False
23) Bed, Bath and Beyond has been struggling to maintain its markst share for a long time now. It just narrowly avoided bankruptcy recently but it still does not seem to have a well defined long-term strategy in place. Rather it seems to be just responding to external events in an ad-hoc manner to meet its immediate needs. Its actions seem rather erratic and not well thought out. According to Miles and Snow model, what type of strategy does the firm have?
24) A firm operating in an unstable and complex environment may generally benefit by adopting an organic structure True False
25) Toyota has an interesting strategy of targeting different types of customers: On the one hand, it sells cars such as Prius that are (a) manufactured via a highly efficient process, (b) have the basic features that you would expect in a car, and (c) are verylow priced as compared to competitors. This allows Toyota to target price sensitive customers and also the low price of the car helps them sell a large volume of these cars. On the other hand, Toyota also operates the luxury car divison Lexus that offers more stylish, high-end cars. Lexus cars have unique and distinct features that set them apart from others. A lot of investment in R&D, marketing and advertising is done to create the stylish look and superior features of these cars. As a result, the price of these cars is on the higher side and these cars are targeted at loyal customers who are less price sensitive but who value the experience and unique features of the car. In sum, one set of Toyota's products such as Prius are very affordable, with basic features and targeted at stable markets with high volumes of sales, and the other set of its products such as Lexus cars are more high-end, with unique features and styles, and are targeted at less price sensitive customers in growing markets who value unique features. Based on this information, which of the Miles and Snow Strategy Types would you say Toyota is following?
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