phi 210 assignment 1 sensory perceptions

MGT 195-HK1 Business Policy And Strategy Exam

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Question 1 1 points Sa

veIn the __________ stage of the industry life cycle, there are many segments, competition is very intense, and the emphasis on process design is high.

Introduction

Growth

Maturity

Decline


veOne aspect of using a cost leadership strategy is that experience effects may lead to lower costs. Experience effects are achieved by:

Hiring more experienced personnel

Repeating a process until a task becomes easier

Spreading out a given expense or investment over a greater volume

Competing in an industry a long time




veIn the __________ stage of the industry life cycle, the emphasis on product design is very high, the intensity of competition is low, and the market growth rate is low.

Introduction

Growth

Maturity

Decline


veOne of the reasons the Internet is eroding sustainable competitive advantages is:

Incumbent firms are entering market segments that they previously considered to be too small

Nearly all competitors will have greater access to tools for managing costs making it hard for any one to achieve an advantage

Differentiators have been able to preserve the unique advantages that have always been the hallmark of their success

Firms are ignoring opportunities to offer high-end services in niche markets


veThe text discusses three approaches to combining overall cost leadership and differentiation competitive advantages. These are the following except:

Automated and flexible manufacturing systems

Exploiting the profit pool concept for competitive advantage

Coordinating the “extended” value chain by way of information technology

Deriving benefits from highly focused and high technology markets


veA differentiation strategy enables a business to address the five competitive forces by:

Lessening competitive rivalry by distinguishing itself

Having brand-loyal customers become more sensitive to prices

Increasing economies of scale

Serving a broader market segment


veDuring the decline stage of the product life cycle, a harvesting strategy means that a firm keeps a product going without significantly reducing marketing support, technological development or other investments, while hoping that competitors will exit the market.

True

False


veResearch has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform:

At about the same level as firms that achieve either cost or differentiation advantages

About the same as firms that are “stuck-in-the-middle.”

Lower than firms that achieve differentiation advantages but higher than firms that achieve cost advantages

Higher than firms that achieve either a cost or a differentiation advantage


veOne potential pitfall of a differentiation strategy is that a brand’s identification in the marketplace may become diluted through excessive product line extensions.

True

False

Question 10

1 points Save

The primary aim of strategic management at the business level is:Maximizing risk-return tradeoffs through diversification

Achieving a low cost position

Maximizing differentiation of products and/or services

Achieving competitive advantage(s)

Question 111 points Sa

veAn important advantage of first movers or “pioneers” in a market is that they may establish brand recognition that may later serve as an important switching cost.

True

False

Question 12

1 points Save

A firm following a focus strategy:Must focus on governmental regulations

Must focus on a market segment or group of segments

Must focus on the rising cost of inputs

Must avoid entering international markets

Question 13

1 points Save

Piecemeal productivity improvements during a turnaround typically does not involve:

Business process reengineering

Increased capacity utilization

Benchmarking

Expansion of a firm’s product market scope


veDuring the growth stage of the market life cycle, customers are very likely to establish brand loyalty.

True

False


veOne way the Internet and digital technologies are creating opportunities for firms with differentiation strategies is by enabling mass customization.

True

False

Question 16

1 points Save

Research shows that the following are all strategies used by firms engaged in successful turnarounds except:

Asset and cost surgery

Selective product and market pruning

Global expansion

Piecemeal productivity improvements


veTo generate above average returns, a firm following an overall cost leadership position should not be concerned with attaining parity or proximity on the basis of differentiation relative to its peers.

True

False

Question 18

1 points Save

According to the text, intellectual capital is the difference between the market value and the book value of a firm. Intellectual capital can be increased by:

Increasing retention of below average workers

Attracting and retaining knowledgeable workers

Decreasing labor costs

Increasing the turnover of employees


veIn most effective evaluation and reward systems employees only receive evaluation and feedback from their immediate supervisor.

True

False

Question 20

1 points Save

Attracting and retaining human capital is a challenge for many firms today. Firms experiencing high turnover should:

Focus on increased recruiting

Decrease money spent on human capital

Make their work environment less stimulating

Adopt effective retention strategies


veTechnical skills are a necessary and sufficient condition for hiring an employee.

True

False

Question 22

1 points Save

Human capital and social capital are vital for superior firm performance. If a firm has strong human capital, the firm may exploit this by building social capital. This can be accomplished through:

Requiring workers to work independently of each other

Decreasing the interaction of departments within the firm

Encouraging the sharing of ideas between employees in the firm

Structuring the firm with rigid departmental and employee divisions

Question 23

1 points Save

The makeup of goods and services in the Gross Domestic Products of developed countries has changed over the last decade. More than 50% of the value of GDP of developed countries is based on:

Clothing and apparel

Capital accumulation

Financial management

Knowledge

Question 24

1 points Save

Among the downsides of social capital is/are:High social capital may breed “groupthink,” i.e., a tendency not to question shared beliefs

Socialization processes whereby individuals are socialized into the norms and values of the organization may become expensive

Individuals may become less willing to collaborate on joint projects

A and B

Question 25

1 points Save

Maintaining a competitive workforce is very challenging in today’s economy. The role of evaluating human capital, in recent years, has:

Increased

Decreased

Become less important

Remained the same

Question 26

1 points Save

Generally, employees are most likely to stay with an organization if:The employer provides high salaries to technology professionals

The organization’s mission and values align with the employee’s mission and values

The firm is in a high tech industry

The mission and values of the organization change often

Ques 1 points Sa

tion 27 ve360-degree evaluation systems are not useful due to the need to integrate large amounts of feedback.

True

False

Question 28

1 points Save

In an effort to capture key employees from competitors, firms may attract the symbolic leader of a group within a competing firm and hope others will follow. This has been termed:

The “Columbus effect.”

The “Pied Piper effect.”

Strategically competitive hiring

Knowledge integration

Question 29

1 points Save

As the competitive environment changes, strategic management must focus on different aspects of the organization. Recently, strategic management has moved from focusing on:

Intangible resources to tangible resources

Tangible resources to intangible resources

Working capital to fixed capital

Fixed capital to working capital

Question 30

1 points Save

The management of intellectual property involves all of the following except:Patents

Contracts with confidentiality and noncompete clauses

Converting explicit knowledge to tacit knowledge

Copyrights and trademarks


veExplicit knowledge is generally known to everyone in the firm and is not a critical concern of management.

True

False

Question 32

1 points Save

In the knowledge economy, if a large portion of a firm’s value is in intellectual and human assets, the difference between the company’s market value and book value should ___________ a company with mostly physical and financial assets.

Be equal to

Be smaller than

Be larger than

Not be correlated with


veCompanies have found that referrals from their own employees are generally an ineffective approach to recruiting top talent.

True

False


veIn today’s economy, reliance on the three traditional financial statements: income statement, balance sheet, and statement of cash flow, has increased.

True

False


veThere is generally a weak relationship between equity markets (e.g., New York Stock Exchange) and economic indicators.

True

False

Question 36

1 points Save

Environmental forecasting involves developing plausible projections about the ________ of environmental change.

Direction

Scope

Speed

All of the above


veCompetitor Intelligence gathering is no different than spying.

True

False

Question 38

1 points Save

The most intense rivalry results from:Numerous equally balanced competitors, slow industry growth, high fixed or storage costs

Few competitors, slow industry growth, lack of differentiation, high fixed or storage

costs

Numerous equally balanced competitors, manufacturing capacity increases only in large increments, low exit barriers

A high level of differentiation

Question 39

1 points Save

The threat of new entrants is high when there are:Low economies of scale

High capital requirements

High switching costs

High differentiation among competitors’ products and services

Question 40

1 points Save

Strategic groups consist of:A group of top executives who make strategies for a company

A group of firms within an industry that follow similar strategies

A group of executives drawn from different companies within an industry that makes decisions on industry standards

A group of firms within an industry that decide to collude rather than compete with each other so that they can increase their profits


veThe strategic groups in the world-wide automobile industry have been very stable and unchanging in recent years.

True

False

Question 42

1 points Save

The aging of the population, changes in ethnic composition, and effects of the baby boom are:

Macroeconomic changes

Demographic changes

Global changes

Sociocultural changes

Question 43

1 points Save

Interest rate increases have a __________ impact on the residential home construction industry and a __________ effect on industries that produce consumer necessities such as prescription drugs or basic grocery items.

Positive; negligible

Negative; negligible

Negative; positive

Positive; negative

Question 44

1 points Save

Firms would be most likely to face intense rivalry with competitors when they:

Are in a high growth industry with low fixed costs

Are in a protected market

Have high fixed costs, in a slow growth industry with high exit barriers

Have low exit barriers for easy transition to another industry


veAn end user’s switching costs are potentially much higher because of the Internet.

True

False

Question 46

1 points Save

Increasingly larger numbers of women entering the work force since the

early 1970s is an example of:Demographic changes

Political and legal environmental changes

Sociocultural changes

Technological developments


vePorter’s Five Forces model helps to determine both the nature of competition in an industry and the industry’s profit potential.

True

False

Question 48

1 points Save

Threat of substitute products comes from:Other companies in the same industry

Foreign companies which can use cheap labor in their countries

Firms in other industries that produce products or services that satisfy the same customer need

All of the above


veThe Internet and digital technologies suppress the bargaining power of buyers by providing them with more information to make buying decisions.

True

False


veThe more attractive the price/performance ratio of substitute products, the more tightly it constrains an industry’s ability to charge high prices.

True

False

Question 51

1 points Save

Fortune Brands states they will “cut corporate costs by $30 million a year.” This is an example of a:

Nonfinancial strategic objective

Financial strategic objective

Vision statement

Mission statement


veDecisions by Boards of Directors are always consistent with shareholder

interests.True

False


veThe three primary participants in corporate governance are: (1) the shareholders; (2) management (led by the chief executive officer); and, (3) employees.

True

False


veAccording to the text, a mission statement is an overarching statement that is massively inspiring, long-term, and only discusses the purpose of the company.

True

False

Question 55

1 points Save

Strategy formulation and implementation is a challenging on-going process. To be effective, it should involve:

The CEO and the board of directors

The board of directors, CEO, and CFO

Line and staff managers

All of the above

Question 56

1 points Save

The four key attributes of strategic management include the idea that:Strategy must be directed toward overall organizational goals and objectives

Strategy must be focused on long-term objectives

Strategy must be focused on one specific area of an organization

Strategy must focus on competitor strengths

Question 57

1 points Save

“We want to be the top-ranked supplier by our customers.” (PPG) This is an example of a:

Nonfinancial strategic objective

Financial strategic objective

Vision statement

Mission statement

Ques 1 points Sa

tion 58 veOrganizational goals and objectives should be vague in order to allow for changes in strategy.

True

False


veStrategic objectives are more specific than vision statements.

True

False

Question 60

1 points Save

Members of Boards of Directors are:Appointed by the Securities and Exchange Commission

Elected by the shareholders as their representatives

Elected by the public

Only allowed to serve one term of four years

Question 61

1 points Save

According to Michael Porter, management innovations such as total quality, benchmarking, and business process reengineering cannot lead to sustainable competitive advantage because:

Companies that have implemented these techniques have lost money

There is no proof that these techniques work

They cost too much money and effort to implement

Every company is trying to implement them and hence it does not make a company different from others

Question 62

1 points Save

Peter Senge, of M.I.T., recognized three types of leaders. __________ are individuals that, although having little positional power and formal authority, generate their power through the conviction and clarity of their ideas.

Local line leaders

Executive leaders

Internal networkers

Shop floor leaders

Question 63

1 points Save

In large organizations, conflicts can arise between functional areas. In order to resolve these conflicts, strategic objectives:

Put financial objectives above human considerations

Align departments toward departmental goals

Help resolve conflicts through their common purpose

Cause debate and increase conflict


veAccording to the text, formulating strategy includes taking into consideration strategy at the business, international, and corporate levels. In addition managers must formulate effective entrepreneurial initiatives.

True

False


veA mission statement encompasses both the purpose of the company as well as the basis of competition and competitive advantage.

True

False


veSocial responsibility is the idea that organizations are not only accountable to stockholders but also to the community-at-large.

True

False

Ques 1 points Sa

tion 67 veThe two principal means by which firms achieve synergy through market power are: pooled negotiating power and corporate parenting.

True

False


veWhenever an organization diversifies, it represents investing a stockholder’s funds in a way in which the individual investor is unable.

True

False

Question 69

1 points Save

Antitakeover tactics include all of the following except:Greenmail

Golden parachutes

Golden handcuffs

Poison pills


veOne of the risks of vertical integration is that there may be problems associated with unbalanced capacities or unfilled demands along a firm’s value chain.

True

False

Question 71

1 points Save

An antitakeover tactic called (a) __________ is when a firm offers to buy shares of their stock from a company (or individual) planning to acquire their firm at a higher price than the unfriendly company paid for it.

Golden parachute

Greenmail

Poison pill

Scorched earth

Question 72

1 points Save

When management uses common production facilities or purchasing procedures to distribute different but related products, they are:

Building on core competencies

Sharing activities

Achieving process gains

Using portfolio analysis

Question 73

1 points Save

Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that:

The similarity required for sharing core competencies must be in the value chain, not in the product

The products use similar distribution channels

The target market is the same, even if the products are very different

The methods of production are the same


veAmong the disadvantages of acquisitions are the expensive premiums that are frequently paid to acquire a business.

True

False


veThe potential advantages of strategic alliances and joint ventures include entering new markets as well as developing and diffusing new technologies.

True

False

Ques 1 points Sa

tion 76 veSharing activities across business units can provide two primary benefits: cost savings and revenue enhancements.

True

False


veA publishing company that purchases a chain of bookstores to sell its books is an example of unrelated diversification.

True

False


veRestructuring requires the corporate office to find either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change.

True

False

Question 79

1 points Save

__________ is when a firm’s corporate office helps subsidiaries make wise choices in their own acquisitions, divestures, and new ventures.

Parenting

Restructuring

Leveraging core competencies

Increasing market power


veMarket power refers to cost savings from leveraging core competencies or sharing activities among the businesses in a corporation.

True

False

Question 81

1 points Save

It may be advantageous to vertically integrate when:Lower transaction costs and improved coordination are vital and achievable through vertical integration

The minimum efficient scales of two corporations are different

Flexibility is reduced, providing a more stationary position in the competitive environment

Various segregated specializations will be combined


veVertical integration is attractive when market transaction costs are higher

than internal administrative costs.True

False

Question 83

1 points Save

A company offering local telecommunications service combines resources with an international company that manufactures digital switching equipment to research a new type of telecommunications technology. This is an example of:

Joint diversification

Strategic alliance

Divestment

Global integration


veValue chain analysis can only be applied to manufacturing operations.

True

False

Question 85

1 points Save

Human resource management consists of activities involved in the recruiting, hiring, training, development, and compensation of all types of

personnel. It:Supports only individual primary activities

Supports only individual support activities

Supports both individual primary and support activities and the entire value chain

Supports mostly support activities but does have some impact on primary activities


veProducts and services that are difficult to imitate help firms sustain their profitability.

True

False

Question 87

1 points Save

A variety of firm resources include interpersonal relations among managers in the firm, its culture, and its reputation with its suppliers and customers. Such competitive advantages are based upon:

Social complexity

Path dependency

Physical uniqueness

Tangible resources

Question 88

1 points Save

An important implication of the “balanced scorecard” approach is that:Managers need to recognize tradeoffs in stakeholder demands and realize that such demands represent a “zero-sum” game in which one stakeholder will gain only at another’s loss

The key emphasis on customer satisfaction and financial goals are only a means to that end

Managers should not look at their job as primarily balancing stakeholder demands; increasing satisfaction among multiple stakeholders can be achieved simultaneously

Gains in financial performance and customer satisfaction must often come at a cost of employee satisfaction


veInformation systems can create advantages that deter entry by competitors into an industry.

True

False


veBusiness models can be defined as methods companies use to create value and earn profits in a competitive environment.

True

False

Question 91

1 points Save

Inbound logistics include:Machining and packaging

Warehousing and inventory control

Repair and parts supply

Promotion and packaging


veValue chain analysis assumes that a firm’s basic economic purpose is to create value and it is a useful framework for analyzing a firm’s strengths and weaknesses.

True

False

Question 93

1 points Save

Four Internet-based activities that are enhancing firms’ capabilities to use the Internet to add value include:

Outsourcing, problem-solving, bill-paying, and delivery

Evaluating, bill-paying, customizing, and returning

Search, rescue, repair, return

Search, evaluation, problem-solving, and transaction

Question 94

1 points Save

Which of the following is a support activity?Inbound logistics

Operations

Technology development

Customer service


veA commission-based business model, when applied to the Internet, is similar to the broadcast television model in which viewers watch shows produced with revenues from commission fees.

True

False

Question 96

1 points Save

Which of the following lists consists of support activities?Human resource management, technology development, customer service, and procurement

Human resource management, customer service, marketing and sales, and operations

Human resource management, information systems, procurement, and firm infrastructure

Customer service, information systems, technology development, and procurement

Question 97

1 points Save

How should managers assess changes in their firm’s competitive position in their industries during a period of unusual economic growth?

Compare the firm’s financial ratios with ratios of firms in other strategic groups in the industry

Compare the firm’s financial ratios over the most recent one-year period

Compare the financial ratios of all firms in the country’s industry—some of whom serve very diverse market segments and have specialized accordingly

Compare the financial ratios of firms in the company’s strategic group


vePerforming a value chain analysis provides a complete assessment of the firm’s strengths and weaknesses.

True

False

Ques 1 points Sa

tion 99 ve

Customer service would include:Product promotion

Product distribution

Parts supply

Procurement of critical supplies

Question 100

1 points Save

The three key types of resources that are central to the resource-based view of the firm are:

Tangible resources, intangible resources, and organizational structure

Culture, tangible resources, intangible resources

Tangible resources, intangible resources, and organizational capabilities

Tangible resources, intangible resources, and top management

PART 2

MGT195-HK1. BUSINESS POLICY AND STRATEGY (MGT195-HK1) > TAKE ASSESSMENT: FINAL EXAM


veThe laws, and the enforcement of laws, associated with the protection of

intellectual property rights, represent a significant currency and management risk to multinational firms.

True

False


veSoftware Tech, Inc., a company in the computer software industry, invests heavily in R&D and product design. Thus, most of its value is added:

Upstream

In its infrastructure

Downstream

Midstream


veOffshoring takes place when a firm decides to shift an activity that they were previously performing in a domestic location to a foreign location.

True

False


veElements of a multidomestic strategy may facilitate the competitive advantage of cost leadership by:

Flexibility in adjusting to local laws and customs

Decreased duplication of inventories which are often involved in having multiple plants producing similar products

Decreased shipping and transportation costs inherent in local production

Economies of scale gained through centralized production of standardized products


veCorporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.

True

False


veThe sale of Boeing’s commercial aircraft and Microsoft’s operating systems in many countries enable these companies to benefit from:

Higher prices in their domestic markets

Economies of scale

Optimizing the location for many activities in their value chain

Reducing their exposure to currency risks

Ques 1 points Sa

tion 7 veAppreciation of the U.S dollar will have the following impact on McDonald’s:

Lower sales abroad because foreign customers cannot afford McDonalds’ products

More transfer of ingredients from the U.S to branches abroad to take advantage of the higher dollar

Lower profits, because foreign profits will be reduced when measured in dollars

No impact at all


veA multidomestic strategy would likely include the use of high volume, centralized production facilities to maximize economies of scale.

True

False


veAn advantage of international expansion is that it can enable a firm to optimize the location of every activity in its value chain.

True

False


veIndustries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer).

True

False

Question 11

1 points Save

__________ entail the creation of a third-party legal entity, whereas __________ do not.

Licensing agreements; joint ventures

Joint ventures; strategic alliances

Strategic alliances; joint ventures

Franchising agreements; strategic alliances

Question 12

1 points Save

The form of entry strategy into international operations that offers the lowest level of control would be:

Franchising

Licensing

Joint venture

Exporting

Question 13

1 points Save

Which one of the following is one of Theodore Levitt’s assumptions supporting a pure global strategy?

Consumers are willing to pay more for specific product features

Customer needs and interests are becoming more dissimilar

If the world markets are treated as heterogeneous, substantial economies of scale are easily achieved

MNCs can compete with aggressive pricing on low cost products that meet the common needs of global consumers

Question 14

1 points Save

The reasons that explain why some governments make better use of the inflows from foreign investment and know-how than others include all of the following except:

Governmental practices that are business-friendly

Local entrepreneurs that can train workers and invest in modern technology

High tariffs and taxes on foreign investors and multinational corporations provide income to improve living conditions

Sound management of broader economic factors such as interest rates and inflation


veBecause many countries are investing in countries other than their own, each country is becoming more autonomous and independent.

True

False

Question 16

1 points Save

All of the following are limitations of a global strategy except:Limited ability to adapt to local markets

The ability to locate activities in optimal locations

The concentration of activities may increase dependence on a single facility

Single locations may lead to higher tariffs and transportation costs

Question 17

1 points Save

As a manager, when faced with ethical crises you should:Focus on issues most relevant to stockholders

Wait for the other party to make the first move

Take the initiative to address the problem

Cover up as much as possible


ve

Emotional intelligence (EI) is one of the components of a high intelligence quotient (IQ).

True

False

Question 19

1 points Save

Proactive measures to prevent organizational ethics problems include all of the following except:

Instituting a reward system which considers outcomes as its primary criterion

Using leaders as role models of ethical behavior

Issuing statements describing the organization’s commitment to certain standards of behavior

Using the organization’s information systems as a control system

Question 20

1 points Save

Which of the following is an important characteristic of a leader?Goal-oriented

Satisfied with the status quo

Reactive

Focused on past performance


veLeaders who fail to institute proper systems and controls that facilitate ethical conduct share responsibility with those who conceive, execute, and knowingly benefit from corporate misdeeds.

True

False

Question 22

1 points Save

All of the following constitute organizational bases of a leader’s power except:

Legitimate power

Reward power

Referent power

Coercive power


veBehavioral barriers to change occur because of conflicts between departments, conflicts arising from power relationships, and refusal to share information.

True

False

Question 24

1 points Save

All of the following are elements of the Goolsby Leadership Model except:Integrity

Charisma

Courage

Impact

Question 25

1 points Save

The “top down” perspective of empowerment:Encourages intelligent risk-taking

Trusts people to perform

Encourages cooperative behavior

Delegates responsibility


veCompetitive benchmarking is a method of seeking the best examples of practices or processes that have essentially the same function regardless of industry.

True

False

Question 27

1 points Save

Manufacturing employees at Chaparral Steel are directly involved with customers and have access to the new innovative knowledge being developed in its manufacturing processes. This is an example of:

Hierarchical control

Knowledge management

Enabling heroes and drones

Employee empowerment


veA compliance-based approach to ethics management combines a concern for law with an emphasis on managerial responsibility for ethical behavior.

True

False

Question 29

1 points Save

Which component of emotional intelligence (EI) enables a manager to have a deep understanding of the existence and importance of cultural and ethnic differences?

Self-awareness

Empathy

Social skills

Self-regulation


veInternal benchmarking is discouraged in most organizations because it creates competition and internal rivalries that are counterproductive.

True

False


veInspiring and motivating people with a mission or purpose is a necessary and sufficient condition for developing a learning organization.

True

False

Question 32

1 points Save

All of the following are guidelines an organization can use to promote the challenging of the status quo except:

Establishing a “culture of dissent.”

Forcefully creating a sense of urgency

Fostering a culture that encourages risk taking

Creating a results-based reward system

Question 33

1 points Save

The three broad sets of capabilities that a leader should possess include all of the following except:

Technical skills

Cognitive abilities

Calculative abilities

Emotional intelligence


veContinuous monitoring enhances an organization’s ability to respond with speed and flexibility.

True

False


veIn emerging economies and continental Europe, principal-principal conflicts are frequent. These consist of conflicts between controlling shareholders and executives.

True

False

Question 36

1 points Save

Rules and regulations are examples of:Implicit controls

Informational controls

Cultural norms

Boundaries and constraints

Question 37

1 points Save

In 2001, Cisco Systems, Inc.’s stock price fell dramatically when it inaccurately forecast new sales orders because it relied too heavily on historical sales figures. What caused this mistake?

Its strategic control system failed to detect changes in consumer demand

It “projected the past into the future.”

The momentum of its previous successes blinded it to the need to adapt and change

All of the above contributed to the mistake

Question 38

1 points Save

The “traditional” approach to strategic control is sequential. Which of the following is not one of the steps in the sequence?

Action plans are submitted by lower level managers

Performance is measured against the predetermined goal

Strategies are implemented

Strategies are formulated and top management sets goals

Question 39

1 points Save

Top managers at USA Today meet every Friday to review daily operational reports and year-to-date data. This is an example of:

Behavioral control

Informational control

Strategy formulation

Strategy implementation


veIn “single loop” learning, the organization’s assumptions, premises, goals, and strategies are continuously monitored, tested, and reviewed.

True

False

Question 41

1 points Save

For businesses facing complex and turbulent business environments:Goals and objectives that are uncertain prevent opportunism

Traditional strategic controls are usually inappropriate

Complacency about predetermined milestones can prevent adaptability

Detailed plans are needed to maintain order

Question 42

1 points Save

Intel’s exemplary corporate governance practices include all of the following except:

A mix of inside and outside directors

All outside directors to assure objectivity in decision-making

Board presentations and access to employees

Formal evaluation of officers


veThe Sarbanes-Oxley Act of 2002 requires that CEOs and CFOs of publicly-listed companies must reveal off-balance-sheet finances and vouch for the

accuracy of information provided.True

False

Question 44

1 points Save

The late Sam Walton, founder of Wal-Mart, used to give pep rallies at local Wal-Mart stores. What purpose did this serve?

It was used to remind employees of Wal-Mart’s rules and regulations

It helped reinforce and sustain Wal-Mart’s culture

It demonstrated to employees the importance of articulating explicit goals and objectives

It made Wal-Mart’s reward system very explicit


veAn organization’s reward system is typically a weak method of motivating employees.

True

False

Question 46

1 points Save

When countercultures emerge that have shared values opposite from the dominant culture of an organization:

Organizational cohesiveness increases

Information is shared rather than hoarded

Individuals begin working at cross purposes

Individuals gain insights into overarching goals and objectives


veRule-based controls are appropriate in organizations where most of the employees are unskilled.

True

False

Question 48

1 points Save

In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders), the ownership (of equity) is:

Widely dispersed (5-20% is considered “concentrated ownership”)

Controlled almost completely by management

Concentrated—often greater than 50% of equity is controlled by controlling shareholders

Often held by employee stock ownership programs

Question 49

1 points Save

Rules and regulations, rather than culture or rewards, would be used for strategic control at which type of company?

Software developer

Stock brokerage firm

Manufacturer of mass produced products

High tech research facility

Question 50

1 points Save

Managerial opportunism can take all of the following forms except:Shirking

Job-hopping

On the job consumption

Excessive product diversification


veFor firms following a differentiation strategy, behavioral and intangible incentives are not an effective means of motivating employees.

True

False


veOperational decision making in a large business places excessive demands on the firm’s top management.

True

False

Question 53

1 points Save

Which of the following is an advantage of a divisional type of organizational structure?

Efficient use of managerial and technical talent

An enhanced ability to respond quickly to changes in the external environment

High degree of emphasis on long term performance

Uniformity in image and quality across divisions

Question 54

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According to the text, there are elements of team building that influence a team’s success. These include all of the following except:

Work. Work should be relevant and meaningful to group members

People bonding during the “heat of the battle.” Team members become more unified during a crisis

Titles. Titles are important to a team’s success

Teams taking care of their own. Team members look after each other’s best interest


veThe matrix structure attempts to combine the advantages of the functional and divisional structure.

True

False


veAn advantage of the barrier-free form of organizing is that internal cooperation and shared objectives are not required for it to work.

True

False

Question 57

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All of the following are disadvantages of a divisional type of organizational structure except:

It can be very expensive compared to a functional organizational structure

There is a strong tendency for divisions to focus on short-term performance

There can be dysfunctional competition among divisions

There is separation of strategic and operating control

Question 58

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A matrix organizational structure is characterized by:Dual reporting relationships

A combination of functional and divisional organization structures

Efficient use of resources and expertise

All of the above


veAccording to the text, boundaryless organizational structures are most effective when they replace rather than complement traditional organizational structures.

True

False


veFor firms following related diversification strategies, reward and evaluation systems should rely primarily on behavioral indicators, since the

organization needs to reward and reinforce behaviors that facilitate sharing and collaboration.

True

False

Question 61

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An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure?

Functional structure

Matrix structure

Strategic business unit structure

Holding company structure


veThe purpose of boundaryless forms of organizing is to facilitate the widespread sharing of knowledge and information across internal and external boundaries of the organization.

True

False

Question 63

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Complete the following sentence: “Strategic business unit (SBU) structures are best suited for corporations pursuing __________, whereas holding company structures are best suited for companies with __________ strategies.”

Product-market diversification, international

International diversification, product-market

Related diversification, unrelated diversification

Unrelated diversification, related diversification

Question 64

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Strategic business unit (SBU) and holding company structures result from extensive:

Diversification

Vertical integration

International expansion

Organizational flattening

Question 65

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All of the following statements about simple organizational structures are true except:

Small firms with a narrow product-market scope will adopt such a structure

Decision making authority is highly centralized

There is little specialization of tasks

Creativity and individualism are rare

Question 66

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Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of what type of organizational structure?

Divisional

Matrix

Holding company

Functional


veIn a simple structure where the owner manager makes most of the important decisions, extensive rules and regulations are used to maintain order.

True

False


ve

Product champions are critical during the period after a new venture project has been defined but before it has gained momentum and achieved project impetus.

True

False


veOnly about 50 percent of corporate venturing efforts reach profitability within six years of their launch.

True

False

Question 70

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In the opening case, Polaroid fell victim to the “innovator’s dilemma.” What does this refer to?

Excessive borrowing in order to develop more radical innovations

Whether to innovate radically or incrementally

Becoming preoccupied with meeting current market needs and ignoring future innovation needs

Conflict over how to integrate product and process innovations

Question 71

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__________ produce fundamental changes that can transform a company or even revolutionize an industry; __________ enhance existing practices and often represent evolutionary applications of fundamental breakthroughs.

Technological breakthroughs; product-market breakthroughs

New technologies; new paradigms

Incremental innovations; radical innovations

Radical innovations; incremental innovations


veProcess innovations are often associated with a low cost leadership strategy.

True

False

Question 73

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Two common forms of a focused approach to corporate entrepreneurship include:

Internal collaboration and internal venturing

Social capital and collaboration capital

Business incubators and new venture groups

Focus groups and business incubators

Question 74

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Product champions:Are typically senior executives

Are usually inventors of some sort

Scavenge for resources and encourage others to back promising new ideas

Are strong supporters of the status quo

Question 75

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After 15 teams created 128 different phones, Chris Galvin, former CEO of Motorola, recently eliminated the autonomous teams being used to develop new wireless phones. This was necessary because such teams:

Often lack coordination

Sometimes waste resources on projects with questionable feasibility

Sometimes create inefficiencies through duplication of effort

All of the above


veCorporate venture funding refers to special funds that are set aside to invest in the corporation’s internal ventures.

True

False


veReal options analysis helps managers make investment decisions involving large irreversible commitments of financial resources.

True

False

Question 78

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Incremental innovations:Are usually highly disruptive

Usually represent technological breakthroughs

Are usually small improvements in products or processes

Nearly always can be patented

Question 79

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Whereas __________ are often associated with a low cost leader strategy, __________ are frequently an important aspect of a differentiation strategy.

Process innovations; product innovations

Product innovations; service innovations

Radical innovations; instrumental innovations

Marketing innovations; management innovations


veThe term “skunkworks” is used to refer to a type of in-house facility that corporations use to develop entrepreneurial ideas.

True

False


veFor innovation team members to work enthusiastically on innovation projects, it is important to separate the performance of individual team members from the performance of the innovation itself.

True

False

Question 82

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Sony Corporation’s mission statement says, “We should always be the pioneers with our products—out front leading the market.” This is an example of:

Innovativeness

Proactiveness

Competitive aggressiveness

Autonomy


veAccording to the text, new venture ideas must pass through two critical stages to be implemented by corporations—project definition and project impetus.

True

False


veReal options logic is useful when corporations consider stock options as a way to finance entrepreneurial ventures.

True

False

Question 85

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All of the following are examples of strategic actions a firm might take except:

Acquire competitors to reduce competition

Expand into neglected markets

Change product packaging

Tie-up raw material sources


veAdaptive new entry involves offering a radical new product or highly innovative service.

True

False

Question 87

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Generally speaking, the opportunity recognition process consists of two phases of activity. They are:

Global Search and Recycling Profits

Value Creation and Affordability

Discovery and Evaluation

None of the above


veVenture capital funding for entrepreneurial ventures is usually available only after the start-up has become a going concern and established a track record.

True

False

Question 89

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Which of the following is not a key element of a blue ocean strategy?Pursue low cost and differentiation advantages simultaneously

Make the competition irrelevant

Highlight incremental improvements to capture market share

Create new demand in uncharted territory


veBecause new ventures are typically small, they usually don’t have high economies of scale relative to competitors.

True

False

Question 91

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The best example of a tactical action that a company might use in response to a competitive attack is:

Acquire the competitor

Target the rival’s markets

Expand into new geographical areas

Offer price discounts and rebates

Question 92

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Netflix CEO Reed Hastings made this important observation about dealing with rivals:

“In a highly competitive marketplace, firms must be paranoid about the multitude of potential rivals.”

“You can afford to ignore rivals in small markets, but you can never ignore rivals in large markets, such as on-line video companies like YouTube.”

“There are tens and maybe hundreds of start-ups who think that they are going to eat Netflix’s lunch. The challenge for a management team is to figure out which are real threats and which aren’t.”

“Netflix’s position is so strong that I don’t worry about new entrants.”


ve“Blue ocean” strategies rarely provide sustainable advantages because they are easily imitated.

True

False


veMarket commonality is the extent to which rivals draw from the same types of resources.

True

False


veForbearance is a particularly aggressive type of competitive attack.

True

False


veIn the context of competitive dynamics, tactical actions involve major commitments of distinctive and specific resources to strategic initiatives.

True

False

Question 97

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In the opening case, ESPN’s cell phone enterprise failed even though it was designed to appeal to sports fanatics and was backed by a $40 million ad campaign. What happened?

It misread how easy it would be to leverage its brand

Compared to other providers, it had no buyer incentives and poor customer service

Its costs were significantly higher than other cell phone providers because it had to lease network access

All of the above happened

Question 98

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Which of the following questions should a firm ask itself before responding to a competitive attack?

How serious is the impact of the attack?

What is our competitive intent—do we want to blunt the attack or enhance our competitive position with our response?

What resources do we have available for a response?

All of the above

Question 99

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Equity financing for entrepreneurial start-ups includes which of the following?

Investments by family and friends

Personal savings

Private investors

All of the above

Question 100

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Which of the following types of resources contribute to the success of entrepreneurial firms?

Social capital

Financial resources

Human resources

All of the above contribute to the success of entrepreneurial firms

phi 210 assignment 1 sensory perceptions

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