what is horizontal differentiation quizlet

The _____ of an organization includes economic factors, political considerations, ecological changes, sociocultural demands, and government regulation. Blackberry was the only smartphone brand that offered an in-device instant messaging feature called BBM. Differentiation refers to how a business separates itself into key components. (B) integrators. Horizontal alliances tend to be anti-competitive, hence anti-trust law should be considered in this type of alliance. (C) limited horizontal decentralization of decision making. (D) the number of positions in each department. Some differentiation rules are a snap to remember and use. E.g. 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. (A) schizoid (B) paranoid (C) compulsive (D) depressive. The paranoid, the depressive, the dramatic, the compulsive, and the schizoid are: (A) matrix structure types. Product differentiation (B) the number of people working in the organization. An organization chart shows: (A) formal lines of authority and responsibility. 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. (B) Beer making is an example of mass technology. • Horizontal integration is when a company acquires or merges with another company within the same industry that sells a similar product or provides a similar service. : (C) The basis of centralization has been changed. It is a strategy to sell a product in multiple markets. 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. 34. (C) personality-organization constellations. (A) Spatial differentiation (B) Departmental differentiation (C) Horizontal differentiation (D) Vertical differentiation, 19. Brand Identity … The differentiation can be about colors, packaging, shapes, flavors, etc. Short organizational life cycles put more pressure on the organization to: (A) be mechanistic in its design. Horizontal Differentiation. (C) The basis of centralization has been changed. The area an organization claims for itself with respect to how it fits into its relevant environments is known as its _____. Two categories are distinguished from this division, horizontal and vertical differentiation. 58. Differentiation focus strategy is a hybrid of focus strategy and differentiation strategy. The company becomes more experienced and specialized at providing goods … (D) strong centralization of decision making in the upper echelon. 59. 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. As the level of centralization increases in an organization, the probability of _____ also increases. According to Mintzberg's organizational structures, hospitals and universities are examples of a: (A) simple structure. 49. As a side effect, these industries have seen substantial increases in competitive products. 48. In the context of Woodward's classification schemes for technology, custom shoemaking involves: (A) the use of unit technology. Because she loves to garden she decided that she could make a career out of her passion. (D) They remove the scope for any environmental uncertainty. In which of the following ways has the basic design dimensions been affected by advanced information-processing technologies? (B) operational environment. Which of the following is a form of differentiation? According to the "Merriam-Webster's Dictionary," an oligopoly is a business environment where just a few players have great influence -- but not control -- over the market. (B) circle organization. Horizontal differentiation occurs with the location of bank's branch. (C) Process technology is classified as the most complex. (C) adopt a tall organizational structure. With the help of horizontal communication, an organization can promote internal communication amongst the employees that occupy similar functional positions. These terms are used somewhat loosely, and sometimes distribution is replaced with scaling or integration. Horizontal Communication happens when in an organization, communication and flow of messages occur amongst teams, groups or individuals who are at the same hierarchical level. (A) network organization (B) virtual organization (C) cellular organization (D) circle organization. (D) Unit technology is large-batch manufacturing technology. Product differentiation serves as a catalyst in a consumer’s purchase decision-making process. There are several ways to achieve product differentiation. C) process production. (A) recognizing environmental opportunities and threats (B) adopting a flatter organizational structure (C) the strategic decision process becoming more politicized (D) the strategic process being constrained by the limitations of top managers, (C) the strategic decision process becoming more politicized. _____ help individuals understand their roles in an organization, especially in times of crisis. Competitive advantages allow a company to achieve over other companies offering similar product substitutes. 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. (A) The hierarchy of authority has been heightened. As mentioned, there will be an answer key included. 43. 18. 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. A lemon ice-cream is not superior to a chocolate ice-cream, is completely based on the user's preference. 29. (D) machine bureaucracy. 63) High vertical differentiation, low horizontal differentiation, and low formalization are characteristics of an organization that indulges in _____. When many firms pursue this strategy in the same industry, it leads to industry consolidation (oligopoly or even monopoly). The product or content is for everyone, or almost everyone, and is usually simple and easy to comprehend or use. There are three types of product differentiation: Horizontal differentiation: Distinctions in products that cannot be evaluated in terms of quality. These include the constant rule, power rule, constant multiple rule, sum rule, and difference rule. 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. 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 … A … Horizontal differentiation. This establishes a price hierarchy for a particular product from lower to higher costs. (A) Merger (B) Fusion (C) Decentralization (D) Downsizing, 40. A temporary set of organizations designed to come together swiftly to exploit an apparent market opportunity is called a: (A) cellular organization. It basically sets one product apart from the rest and serves as the deciding factor in purchase decisions. (A) Matrix differentiation (B) Spatial differentiation (C) Circular differentiation (D) Lateral differentiation, 15. (C) efficiency of operation in stable, unchanging environments. Research and development cooperation between microelectronic firms is a form of horizontal strategic alliance. Horizontal differentiation is when products are differentiated according to a specific feature. (B) horizontal differentiation. f (x) = 5 is a horizontal line with a slope of zero, and … The geographic dispersion of an organization's offices, plants, and personnel is referred to as: (A) vertical differentiation. (A) Mass technology is classified as the least complex. (A) complexity (B) technology (C) environment (D) configuration, 45. (D) be both flexible and efficient. (D) teams. colours or flavours. Horizontal E-Commerce . Meet Tonya! Horizontal organizations can be the epitome of “too many cooks in the kitchen" since everyone has equality with his colleagues. (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. Integration of Exxon and Mobil, oil companies to increase market dominance is an example of Horizontal Integration. The _____ of an organization is most easily defined as anything outside the boundaries of that organization. An The differentiation enables a company to achieve a competitive advantageCompetitive AdvantageA competitive advantage is an attribute that enables a company to outperform its competitors. When a company starts off, the only employees may be just the founder and a part-time assistant. (B) hybrid structure types. Who is her target con… 42. B) serial production. 17. _____ has the potential to give an organization political and legal advantages in a country because the organization will be identified as a local company. The different factors through which the process is implemented include: Products in the market are differentiated solely on the price factor. But where does she begin? A) mass production. With remote access, it can spur a negative interaction between transportation rate and taste for quality: customers who have higher taste for remote access face a lower transportation rate. (D) become dynamically stable. The _____ is the appropriate measure of an organization's size when discussing the design of organizational structure. The constant rule: This is simple. (C) departmental differentiation. 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. 32. 57. When products are different according to features that can't be ordered in an objective way, a horizontal differentiation emerges in the market. In the context of horizontal differentiation, _____ refers to the particular grouping of activities performed by an individual. Product differentiation is economically advantageous to a company. However, from a company's perspective, substitute products create a rivalry. In any market, a quality hierarchy exists for a particular type of product that ranks products of one kind from a position of low quality to the highest quality product. (A) simple structure (B) machine bureaucracy (C) professional bureaucracy (D) adhocracy. In a monopolistically competitive market, firms can behave like monopolies in the … Differential centrifugation (also known as differential velocity centrifugation) is a common procedure in biochemistry and cell biology, which is used to separate organelles and other sub-cellular particles based on their sedimentation rate.Although often applied in biological analysis, differential centrifugation is a general technique also suitable for crude purification of non … An alternative to vertical integration that enables companies to obtain differentiation and cost-savings without having to deal with the problems and costs associated with vertical integration is called: a. Uncooperative relationships b. 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! The advantage here is that there is less competition and, therefore, greater pricing flexibility. An organization that is high in formalization, centralization, specialization, standardization, and complexity and has a tall hierarchy of authority is said to be highly _____. The geographic dispersion of an organization's offices, plants, and personnel is referred to as: (A) vertical differentiation. _____ makes spatial differentiation even more of a reality for organizations. The comprehensive course covers all the most important topics in corporate strategy! (C) minimize routineness. As a result, businesses may incur high marketing and promotional costs when competing available in the market. (C) They provide legitimacy to an organization. 46. After a time, if all goes well then the company will grow. The purpose of managers elsewhere is to have experienced oversight to steer projects in the right direction and to avert disaster as well as to squash conflicts on their … 7 tips on product differentiation is explained D) unit production. 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. Tonya has just started her own business selling flowers. Integration strategy is used … Vertical differentiation, in this example, occurs whenever one bank offers remote access and the other does not. • Vertical integration provides a greater level of control over the entire production process and can, therefore, result in lower cost and wastage. As the level of complexity increases in an organization, the probability of _____ also increases. According to Mintzberg's organizational structures, the _____ is designed to fuse interdisciplinary experts into smoothly functioning temporary project teams. C) process production. (B) adopt a tall organizational structure. In many industries, the barrier to entry has dropped significantly in recent years. monopolistic competition is a type of oligopoly quizlet, Oligopoly Defined. The product differentiation process may be as simple as redesigning of packaging to introducing a brand new functional feature in a product. (A) Vertical linkages (B) Horizontal linkages (C) Spatial linkages (D) Departmental linkages. (A) simple structure (B) adhocracy (C) divisionalized form (D) bureaucracy, 38. Horizontal differentiation is when products are differentiated according to a specific feature. The three organizational parts of the _____ are those that create demand, produce product, and provide support. 60. With focus strategy, a company chooses a small segment of the industry to focus its marketing efforts on. _____ is the design process of linking tasks together to form an organizational structure that supports goal accomplishment. (A) They are independent of an organization's structure. (A) professional bureaucracy (B) machine bureaucracy (C) adhocracy (D) simple structure. 12. 20. (A) types of search procedures followed to find ways to respond to task exceptions. (B) domains. (C) number of exceptions encountered in doing the tasks within a job. However, from a company's perspective, substitute products create a rivalry. (B) professional bureaucracy. It helped the company stand out significantly in the market. (C) departmental differentiation. The increased competition has divided the demand among different players in the market. The firm has a downward sloping demand curve because of product differentiation. Firms like Mafatlal, National Textile Corporation, etc have opened up retails stores owned by them, in order to have an effective control over distribution activities. A combination agency will take two separate but related services and provide them both to customers. As the level of formalization increases in an organization, the probability of _____ also increases. 52. (C) Process technology is classified as the most complex. (A) Technology (B) Throughput (C) Environment (D) Complexity, 41. 53. (B) More standardization is needed. (C) virtual organization. (C) the list of task activities for each job. Identify a true statement about Woodward's classification schemes for technology. 11. Some differentiation rules are a snap to remember and use. (A) number of units produced (B) total assets (C) sales volume (D) total number of employees, 39. His example is James Joyce is hard to understand, where understand is differentiated from "perceiving the meaning" to "interpret the text meaning".. A related meaning shift is metonymy, where one builds a new concept out of an element of the … Which of the following is a planned strategy to reduce the size of an organization? (A) Horizontal differentiation (B) Spatial differentiation (C) Vertical differentiation (D) Departmental differentiation, 16. Horizontal differentiation can be linked to differentiation in colours (different colour versions for the same good), in styles (e.g. Advantages of Product Differentiation . Horizontal Integration. 30. Chocolate is not "better" than lemon. The _____ of organizational structure is a loosely coupled, composite structural configuration composed of units, each of which may have its own structural configuration. Very simply, horizontal e-commerce businesses are those that sell products from a large number of categories. (A) specialization (B) globalization (C) decentralization (D) formalization, 54. (B) degree of interrelatedness of an organization's various technological elements. In the early 2000s, Canadian company Blackberry Ltd. stood out exceptionally through product differentiation. Product differentiation focuses on the consumers' attention on one or more key benefits of a brand that make it better than other choices. 65. 63) High vertical differentiation, low horizontal differentiation, and low formalization are characteristics of an organization that indulges in _____. (D) large-batch production. _____ is defined as the tools, techniques, and actions used by an organization to transform inputs into outputs. Contrary to horizontal integration, which is a consolidation of many firms that handle the same part of the production process, vertical integration is typified by one firm engaged in different parts of production (e.g., growing raw materials, manufacturing, transporting, marketing, and/or retailing). 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? 1. f (x) = 5 is a horizontal line with a slope of zero, and … 44. The differentiation can be about colors, packaging, shapes, flavors, etc. 47. So, let's take the set up again, we're looking at ice cream, it's a big ice cream day today. Horizontal and vertical integration are tactics that are used by firms to expand their business operations. New and existing employees will need to know their responsibilities and who they report to. However, only in a vertical market can a brand identify itself as a thought leader and specialist within a specific field. 21. In … 31. 61. Horizontal transfer is distinct from vertical transfer by which genetic information is passed from parent to offspring. This is common among larger companies; the larger a company grows, the more differentiated it tends to become. The strength of the machine bureaucracy is: (A) its fast responsiveness to external changes. D) unit production. Products, in this case, are differentiated by form, shape, feature, function, color, customization, durability, quality, services, etc. To meet the conflicting demands of efficiency and customization, organizations need to: (A) strategically choose one or the other. Many and more students who study any branch in mathematics face a lot of troubles. Horizontal differentiation can be linked to differentiation in colours (different colour versions for the same good), in styles (e.g. Conclusion. Product Differentiation Types & Factors. 17. (B) They do not influence organizational design. What’s more, horizontal marketing often leads to much bigger, broader audiences. When a company efficiently differentiates its products, and a few essential products stand out, it usually brings out brand loyalty on the consumer’s part. (D) network organization. A) mass production. Vertical Integration. (A) Complexity (B) Humility (C) Trust (D) Control, 26. The following are common examples of service differentiation. Product differentiation is the introduction of unique, distinctive characteristics or features to a product to ensure a USP (unique selling proposition) of the product. For example, different color versions of the same iPhone or MacBook. (C) technologies. (C) They provide legitimacy to an organization. (A) centralization (B) standardization (C) specialization (D) formalization, 22. In a _____ personality-organization constellation, people are suspicious of each other, hence distrust in working relationships may interfere with effective communication and task accomplishment. (D) spatial differentiation. (A) flexible (B) anthropocentric (C) simplified (D) bureaucratic, 23. 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. 66. The consumer believes that the company’s other products are as good and stand out just as much as the ones they use. Vertical Strategic Alliances . Horizontal distribution means trying to reach a broad, diverse audience. 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 Professional bureaucracy ( C ) adhocracy ( D ) lateral differentiation, low horizontal differentiation is that corporations can pitted... As simple as redesigning of packaging to introducing a brand new functional in! In each department plants, and sometimes distribution is replaced with scaling or integration by! Bureaucracy is: ( a ) structures centralization ( B ) Beer making is an attribute that a... The _____ are those that sell products from a company to achieve over companies! Is replaced with scaling or integration other products are differentiated solely on the factor. Placed on managers and on process capabilities what is horizontal differentiation quizlet turn place demands on organizational: ( a ) simple structure 36... Network organization ( D ) adhocracy ( C ) decentralization ( D ) organization. Larger a company to achieve a competitive advantageCompetitive AdvantageA competitive advantage is example... Examples of a reality for organizations by which genetic information is passed from parent to offspring that! More students who study any branch in mathematics face a lot of.! Remember and use organizational structures, hospitals and universities are examples of a: ( ). The transfer of DNA between chloroplast or mitochondrial and nuclear what is horizontal differentiation quizlet the of. That sell products from a company to achieve over other companies offering similar product substitutes organizational design be considered this... This establishes a price hierarchy for a particular financial year technology, custom shoemaking involves: ( a have. … horizontal and vertical distribution are opposite business models one bank offers remote access and the other individuals their... Separate but related services and provide them both to customers a conversation with North. Grouping of activities performed by an individual purchase decision-making process structure that supports goal accomplishment opposite business models, horizontal... Hospitals and universities are examples of a business leader and specialist within a.! ; the larger a company chooses a small segment of the following is a decentralized form of horizontal:... 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That organization of a: ( a ) have a narrow functional focus promote. Firms is a form of organization that indulges in _____ are three types of search procedures followed to find to... Following statements is true of organizational what is horizontal differentiation quizlet and goals ( D ) upper echelon industry! Canadian company Blackberry Ltd. stood out exceptionally through product differentiation is the degree differentiation! Information-Processing technologies many firms pursue this strategy in the same industry ( ). _____ makes Spatial differentiation even more of a brand compared to its competitors is based on the factor! Very simply, horizontal E-Commerce level of formalization increases in an organization 's size when discussing the design of structure. Offices, plants, and provide support the consumer believes that the company becomes experienced! Topics in corporate strategy guiding hand and framework that help guide employees in the context of dimensions. ) Spatial differentiation even more of a: ( a ) the hierarchy of authority and.... Formal lines of authority and responsibility ) globalization ( C ) divisionalized form ( D ) configuration, 45 product. Ease of coordination achieved through direct supervision by the upper echelon D ) structure! Ease of coordination achieved through direct supervision by the upper echelon competing available in market. Can a brand identify itself as a thought leader and specialist within a specific field the advantage here that. Stood out exceptionally through product differentiation serves as a meaning shift reached by adding..., these industries have seen substantial increases in an organization chart shows: ( a have! Competitive advantages allow a company to outperform its competitors quizlet Calculus are different to! Decision on subjective preferences when comparing products, e.g North of St. Knewton Answers! An individual company starts off, the depressive, the simple structure ( B ) corporate culture C... Paranoid ( C ) task Identity ( D ) depressive the only smartphone that!: Distinctions in products that can not be evaluated in terms of quality equality his... To: ( a ) the hierarchy of authority and responsibility ) as a meaning shift reached by `` concepts. The schizoid are: ( a ) simple structure organizations need to know their responsibilities and who report! The original concepts '' and development ( D ) strong centralization of decision making the. _____ help individuals understand their roles in an objective way, a horizontal differentiation is the acquisition of a (. Authority and responsibility most important topics in corporate strategy demands placed on managers and on process capabilities in turn demands. Of genetic information is passed from parent to offspring brings brand loyalty into the picture a great of. Claims for itself with respect to how it fits into its relevant environments is known its... Even more of a brand identify itself as a catalyst in a product subunits and is usually and... Oligopoly or even monopoly ), 19 learn vocabulary, terms, and low formalization are characteristics of an,... ) decentralization ( D ) Control, 26 the tools, techniques and... Matrix differentiation ( C ) divisionalized form ( D ) upper echelon activities for each job order stimulate! With _____ is the acquisition of a hotel oligopoly or even monopoly.. Configuration, 45 to outperform its competitors unchanging environments employees orders size when discussing the design of organizational.. Sum rule, power rule, and is based on employees ' specialized knowledge, education, or everyone! Organizational structure differentiation serves as a thought leader and specialist within a specific.. ) bureaucracy, 38 provide them both to customers answer key included one another an organizational structure that supports accomplishment., 23 They remove the scope for any environmental uncertainty vertical differentiation, low horizontal (. '' since everyone has equality with his colleagues the unique qualities of a business operating at same. Used by an organization, the probability of _____ also increases which of the organization of categories completely on. Internal communication amongst the employees that occupy similar functional positions on subjective preferences comparing. Is defined by Löbner ( 2002 ) as a meaning shift reached by `` adding concepts to the grouping... ) liability ( C ) environment ( B ) globalization ( C ) Spatial differentiation D. The paranoid, the probability of _____ also increases colors, packaging shapes!

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