Differentiation in semantics is defined by Löbner (2002) as a meaning shift reached by "adding concepts to the original concepts". (B) the expertise of the professionals in the operating core of the organization. Definition: Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product or service, from other similar products, offered by the competitors in the market.It entails development of a product or service, that is unique for the customers, in terms of product design, features, brand image, quality, or customer service. (C) personality-organization constellations. Some differentiation rules are a snap to remember and use. Business culture may differ significantly between the IT department and the … A) mass production. 34. In increasingly crowded competitive landscapes, differentiation is a critical prerequisite for a product’s survival.What does your product or service do/accomplish/offer that the competition does not? 52. According to Perrow's classification schemes for technology, problem analyzability examines the: (A) types of search procedures followed to find ways to respond to task exceptions. (A) specialization (B) globalization (C) decentralization (D) formalization, 54. (A) the standardization of the professionals' skills (B) extensive empowerment of middle-level managers (C) direct supervision by the upper echelon (D) the standardization of work processes, (C) direct supervision by the upper echelon. So, from horizontal product differentiation let's now look at vertical product differentiation and see what that does to profits of firms and to, of course, price cost margins of firms. (B) professional bureaucracy. However, only in a vertical market can a brand identify itself as a thought leader and specialist within a specific field. Horizontal differentiation. When many firms pursue this strategy in the same industry, it leads to industry consolidation (oligopoly or even monopoly). (A) simple structure (B) adhocracy (C) divisionalized form (D) bureaucracy, 38. 31. 1. According to Mintzberg's organizational structures, the _____ is designed to fuse interdisciplinary experts into smoothly functioning temporary project teams. Combination Agency: A type of agency which combines segments that are normally separate. Cooperative relationships c. Horizontal integration d. Forward integration Unlike managers today, managers of the future will most likely: (A) have a narrow functional focus. The level of an organization's environment that includes stakeholders such as unions, customers, suppliers, competitors, government regulatory agencies, and trade associations is called the: (A) task environment. (A) the upper echelon losing power (B) the strategic decision process being initiated by lower-level managers (C) adopting a flatter organizational structure (D) the decision process being goal-oriented and rational, (D) the decision process being goal-oriented and rational, 51. Horizontal distribution means trying to reach a broad, diverse audience. CFI offers the Financial Modeling & Valuation Analyst (FMVA)™FMVA® CertificationJoin 350,600+ students who work for companies like Amazon, J.P. Morgan, and Ferrari certification program for those looking to take their careers to the next level. But while she is a very skilled gardener and very knowledgeable about a wide variety of plants, her business skills are basic at best. Definition: Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product or service, from other similar products, offered by the competitors in the market.It entails development of a product or service, that is unique for the customers, in terms of product design, features, brand image, quality, or customer service. (B) domains. 12. A) mass production. _____ is the degree of differentiation between organizational subunits and is based on employees' specialized knowledge, education, or training. Profit can be positive (as shown below), negative or equal to zero ; In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms. (A) centralization (B) standardization (C) specialization (D) formalization. (C) mechanistic environment. A combination agency will take two separate but related services and provide them both to customers. When many firms pursue this strategy in the same industry, it leads to industry consolidation (oligopoly or even monopoly). A successful differentiation campaign boosts sales for a company by a significant margin and gives it a competitive advantage in the market as to why they deserve a consumer’s investment more than the others. The product differentiation process may be as simple as redesigning of packaging to introducing a brand new functional feature in a product. (C) technologies. Research and development cooperation between microelectronic firms is a form of horizontal strategic alliance. _____ makes spatial differentiation even more of a reality for organizations. In the context of Mintzberg's structural configurations for organizations, an automobile plant with routinized operating tasks is most likely to use a(n) _____. Product differentiation focuses on the consumers' attention on one or more key benefits of a brand that make it better than other choices. 11. (D) teams. (C) efficiency of operation in stable, unchanging environments. Think of it this way, if you’re looking for a standard selection of office chairs to kit out your new business space, you’d go to a horizontal company like an office furniture … Please join Knewton Content Developer Becky Moening in a conversation with Sharon North of St. Knewton Alta Answers Quizlet Calculus. (D) strategies. Consumer behavior reveals how to appeal to people with different habits, Value proposition is a promise of value stated by a company that summarizes the benefit(s) of the company’s product or service and how they are delivered, Certified Banking & Credit Analyst (CBCA)®, Capital Markets & Securities Analyst (CMSA)®, Financial Modeling & Valuation Analyst (FMVA)™, Financial Modeling & Valuation Analyst (FMVA)®. Combination Agency: A type of agency which combines segments that are normally separate. (A) Merger (B) Fusion (C) Decentralization (D) Downsizing, 40. The increased competition has divided the demand among different players in the market. (A) Spatial differentiation (B) Departmental differentiation (C) Horizontal differentiation (D) Vertical differentiation, 19. Product differentiation deals with making changes in the marketing mix of a product so as to differentiate it from whatever the competition is offering OR to offer a product which stands out in the market. _____ help individuals understand their roles in an organization, especially in times of crisis. f (x) = 5 is a horizontal line with a slope of zero, and … Vertical Strategic Alliances . (C) limited horizontal decentralization of decision making. In a monopolistically competitive market, firms can behave like monopolies in the … Horizontal transfer is distinct from vertical transfer by which genetic information is passed from parent to offspring. (A) schizoid (B) paranoid (C) compulsive (D) depressive. (C) divisionalized form. Which of the following is a planned strategy to reduce the size of an organization? The _____ of an organization includes economic factors, political considerations, ecological changes, sociocultural demands, and government regulation. (D) More specialization is needed. Because she loves to garden she decided that she could make a career out of her passion. The machine bureaucracy emphasizes: (A) the support staff and mutual adjustment among people. Short organizational life cycles put more pressure on the organization to: (A) be mechanistic in its design. Horizontal, or lateral, gene transfer is generally defined as exchange of genetic information between contemporary organisms. Product differentiation 20. (C) adopt a tall organizational structure. These include the constant rule, power rule, constant multiple rule, sum rule, and difference rule. Horizontal differentiation seeks to affect an individuals subjective decision making, that is the difference cannot be measured in an objective way. (A) Matrix differentiation (B) Spatial differentiation (C) Circular differentiation (D) Lateral differentiation, 15. The advantage here is that there is less competition and, therefore, greater pricing flexibility. The _____ of organizational structure is a loosely coupled, composite structural configuration composed of units, each of which may have its own structural configuration. These include the constant rule, power rule, constant multiple rule, sum rule, and difference rule. This is because once a consumer is satisfied with a few products of a brand, they tend to just start buying other products from that one particular brand. (B) Beer making is an example of mass technology. • Vertical integration provides a greater level of control over the entire production process and can, therefore, result in lower cost and wastage. In addition, product differentiation helps a company operate at a higher price point just because of that additional benefit or feature introduced in a product. Horizontal differentiation occurs with the location of bank's branch. Horizontal alliances tend to be anti-competitive, hence anti-trust law should be considered in this type of alliance. _____ ensures that all essential organizational tasks are assigned to one or more jobs and that the tasks receive the attention they need. As mentioned, there will be an answer key included. One potential problem with _____ is that corporations can become pitted against sovereign nations when rules and laws conflict across national borders. When a company starts off, the only employees may be just the founder and a part-time assistant. (A) professional bureaucracy (B) machine bureaucracy (C) divisionalized form (D) simple structure, 36. 66. Two categories are distinguished from this division, horizontal and vertical differentiation. (A) They are independent of an organization's structure. 29. 63) High vertical differentiation, low horizontal differentiation, and low formalization are characteristics of an organization that indulges in _____. (C) The basis of centralization has been changed. Product differentiation is the process of identifying and communicating the unique qualities of a brand compared to its competitors. As the level of formalization increases in an organization, the probability of _____ also increases. Conclusion. The strongest method of horizontal integration is through: (A) liaison roles. Product Differentiation Types & Factors. Product differentiation is economically advantageous to a company. The former is given when consumers base their purchasing decision on subjective preferences when comparing products, e.g. modern / antique), in shapes, in flavours, in tastes, in well-known category-idiosyncratic axes as well as elaborated proprietary marketing categories. Horizontal organizations can be the epitome of “too many cooks in the kitchen" since everyone has equality with his colleagues. (D) the number of positions in each department. Vertical Integration. Horizontal differentiation can be linked to differentiation in colours (different colour versions for the same good), in styles (e.g. So, let's take the set up again, we're looking at ice cream, it's a big ice cream day today. 33. The different factors through which the process is implemented include: Products in the market are differentiated solely on the price factor. (A) Horizontal differentiation (B) Spatial differentiation (C) Vertical differentiation (D) Departmental differentiation, 16. (A) network organization (B) virtual organization (C) cellular organization (D) circle organization. (B) horizontal differentiation. (C) The basis of centralization has been changed. (C) They provide legitimacy to an organization. Integration of Exxon and Mobil, oil companies to increase market dominance is an example of Horizontal Integration. 59. Integration strategy is used … E.g. (C) They provide legitimacy to an organization. Very simply, horizontal e-commerce businesses are those that sell products from a large number of categories. (C) personality-organization constellations. (A) life cycle (B) liability (C) task identity (D) domain. (A) centralization (B) standardization (C) specialization (D) formalization, 22. Horizontal differentiation is when products are differentiated according to a specific feature. A company may decide to acquire companies in the same industry producing/providing the same product/service or acquire companies that become part of the entire production process. (C) departmental differentiation. (A) number of units produced (B) total assets (C) sales volume (D) total number of employees, 39. An organization chart shows: (A) formal lines of authority and responsibility. (B) the number of people working in the organization. In the context of Woodward's classification schemes for technology, custom shoemaking involves: (A) the use of unit technology. New and existing employees will need to know their responsibilities and who they report to. The different factors on which the process is implemented include: For example, different color versions of the same iPhone or MacBook. (A) logistics (B) finance (C) research and development (D) human resources, 24. Environments Physical environments such as the architecture and decor of a hotel. 44. The 5 P's of, The bargaining power of buyers, one of the forces in Porter’s Five Force Industry Analysis framework, refers to the pressure that customers/consumers can, Buyer types is a set of categories that describe spending habits of consumers. She knows that if she is going to be successful, she needs to reach out to those who would be most interested in her products. In the context of design dimensions, which of the following is most likely an important organizational variable for flexible structures? When that one distinct feature or difference introduced in the product makes it better than its substitutes, consumers more often than not perceive it to be worth the increased price. There is seldom the guiding hand and framework that help guide employees in other firms. The differentiation can be about colors, packaging, shapes, flavors, etc. The most famous horizontal e-commerce business is Amazon.com It sells books, furniture, food, grocery, apparel, toys, software, music, gadgets, and a whole lot more. 13. Horizontal and vertical distribution are opposite business models. 49. (D) organic environment. (A) simple structure (B) machine bureaucracy (C) professional bureaucracy (D) adhocracy. The _____ departments in many organizations are often more flexible than other departments in order to stimulate creativity. (A) Technology (B) Throughput (C) Environment (D) Complexity, 41. C) process production. In many industries, the barrier to entry has dropped significantly in recent years. As the level of centralization increases in an organization, the probability of _____ also increases. Blackberry was the only smartphone brand that offered an in-device instant messaging feature called BBM. (B) integrators. Horizontal Differentiation: Functional structure Most firms begin with no formal structure, but as they grow, split into functions reflecting the firm's value creation activities Horizontal Differentiation: Product divisional structure (A) The hierarchy of authority has been heightened. (C) have broad cross-functional collaboration. _____ has the potential to give an organization political and legal advantages in a country because the organization will be identified as a local company. Differentiation refers to how a business separates itself into key components. (B) operational environment. Horizontal E-Commerce . Horizontal integration is the acquisition of a business operating at the same level of the value chain in the same industry. D) unit production. Differentiation focus strategy is a hybrid of focus strategy and differentiation strategy. 21. Essentially, vertical differentiation is aimed at differentiating the product in order to move up the hierarchy toward higher quality and use the trait as a competitive advantage to sell the product. However, from a company's perspective, substitute products create a rivalry. What’s more, horizontal marketing often leads to much bigger, broader audiences. 30. To keep learning and advancing your career, the following CFI resources will be helpful: Learn to perform Strategic Analysis in CFI’s online Business Strategy Course! (D) network organization. The constant rule: This is simple. (D) spatial differentiation. A lemon ice-cream is not superior to a chocolate ice-cream, is completely based on the user's preference. 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