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Question 1

A holding company is:

a) An organization with a balanced portfolio of individual businesses

b) A decentralized organization with a small head office that organizes finance for the subsidiaries

c) A centralized organization with a small head office that helps subsidiaries develop and finance their strategies

d) A decentralized organization with a large head office that offers a broad range of advice and services to subsidiaries

Question 2

A firm has a functional director for six areas and an area director for three functions. There, staff at each area/function will be reporting to 2 bosses. This firm has which type of structure?

a) Project structure

b) Matrix structure

c) Divisionalized structure

d) Front-back structure

Question 3

An organization structure that is in the main a functional or divisional structure but also includes project teams to deal with specific issues is called:

a) An M-form structure

b) A front-back structure

c) A networked structure

d) A hybrid structure

Question 4

An organization that divides its structure into two main parts - one dealing with product groups and one dealing with customer segments is called:

a) A front-back structure

b) A product-customer structure

c) A back to back structure

d) A matrix structure

Question 5

The essential question that a corporate parent needs to ask is:

a) Does it add value to its individual businesses

b) How does it achieve a balanced portfolio

c) How does it achieve synergies across business units

d) How related should its business units be

Question 6

A corporate parent can offer an individual business a number of 'propositions'. These are build propositions, stretch propositions, link propositions, select propositions and:

a) Lend propositions

b) Locate propositions

c) Leverage propositions

d) Leap propositions

Question 7

The parenting style 'financial control' will tend to be most suitable in which type of portfolio?

a) A broad portfolio of fast growing businesses

b) Stable businesses with low investment needs

c) A narrow portfolio of closely related businesses

d) A rapidly changing business environment

Question 8

Which type of corporate parenting style has the closest relationship with its individual businesses?

a) Co-evolution

b) Corporate flexibility

c) Strategic Control

d) Strategic planning

Question 9

What is the main reason why organizations enter alliances?

a) To find out how the other organization works, and copy it

b) To obtain synergies between other organizations' resources and their own

c) To increase their capacity to learn

d) Because they have not enough cash to acquire the other organization

Question 10

Which of the following is NOT an important element to look for when selecting an alliance partner?

a) Very similar culture and resources

b) Compatible expectations and objectives

c) They should have as much to lose as you do if the alliance fails

d) Resources that complement your own

Oxford University Press, Online Resource Centre, Chapter 09.

Chapter 09

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