1. Canada Gear Inc. produces durable sports equipment for young players. In its latest meeting, management of the hockey-gear division decided to focus its attention on becoming the leading supplier of gear for the growing market of female players. What level of strategy would this be classified as? a) Corporate level b) Organizational level c) Functional level d) Business level 2. Which of the following most closely reflects a best-value strategy? ) A new airline advertises that it offers the lowest fares, and that the airline ticket gives the customer a seat and a seatbelt but nothing else. b) A clothing manufacturer outsources all of its production to ensure that its expenses are lower than those of its closest competitors, and offers frequent sales to attract returning customers. C) A well-known television manufacturer produces a lower-cost model that is large and has a high- quality picture but offers limited interactivity and connectivity, because consumer research suggests that televisions have become overly complex. d) A company produces the "Dorm Diner," a small microwave oven that doubles as a toaster oven and markets it exclusively to university students living on campus. 3. Petpharm Inc. produces ingredients for pet medications. Prices are highly regulated, so the company needs to reduce its costs to remain profitable. Over time, the company has developed additional uses for some of its main ingredients so that it can produce larger batches of the ingredients and still sell them before they become outdated. Which cost-impacting factor does this best reflect? a) Diseconomies of scale b) Economies of scale c) Learning-curve economies d) Technology independent of scale 4. Westlake Production Lid. (Westlake) operates across Canada. It has three main regional plants: Eastern, which produces lawnmower engines; Central, which produces components for watercraft; and Western, which makes all-terrain vehicle frames. Each region has its own local administrative office to handle hiring, accounting, payroll, and similar roles, and each region is considered an autonomous unit. What organizational structure does this reflect? a) Functional structure b) A combination of functional and divisional structures c) Matrix structure d) Divisional structure 5. Which of the following statements correctly reflects the benefits or challenges of centralized and decentralized designs? a) Decentralization tends to decrease employee motivation because employees have more autonomy. b) Centralization increases the risk that managers will focus on unit-level performance at the expense of corporate-level results c) Centralization has the advantage of reducing company support costs. d) Decentralization helps reduce inappropriate risk-taking by managers