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
Question 2 1 points Sa
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
Question 3 1 points Sa
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
Question 4 1 points Sa
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
Question 5 1 points Sa
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
Question 6 1 points Sa
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
Question 7 1 points Sa
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
Question 8 1 points Sa
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
Question 9 1 points Sa
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
Question 141 points Sa
veDuring the growth stage of the market life cycle, customers are very likely to establish brand loyalty.
True
False
Question 151 points Sa
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
Question 171 points Sa
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
Question 191 points Sa
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
Question 211 points Sa
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
Question 311 points Sa
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
Question 331 points Sa
veCompanies have found that referrals from their own employees are generally an ineffective approach to recruiting top talent.
True
False
Question 341 points Sa
veIn today’s economy, reliance on the three traditional financial statements: income statement, balance sheet, and statement of cash flow, has increased.
True
False
Question 351 points Sa
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
Question 371 points Sa
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
Question 411 points Sa
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
Question 451 points Sa
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
Question 471 points Sa
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
Question 491 points Sa
veThe Internet and digital technologies suppress the bargaining power of buyers by providing them with more information to make buying decisions.
True
False
Question 501 points Sa
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
Question 521 points Sa
veDecisions by Boards of Directors are always consistent with shareholder
interests.True
False
Question 531 points Sa
veThe three primary participants in corporate governance are: (1) the shareholders; (2) management (led by the chief executive officer); and, (3) employees.
True
False
Question 541 points Sa
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
Question 591 points Sa
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
Question 641 points Sa
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
Question 651 points Sa
veA mission statement encompasses both the purpose of the company as well as the basis of competition and competitive advantage.
True
False
Question 661 points Sa
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
Question 681 points Sa
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
Question 701 points Sa
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
Question 741 points Sa
veAmong the disadvantages of acquisitions are the expensive premiums that are frequently paid to acquire a business.
True
False
Question 751 points Sa
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
Question 771 points Sa
veA publishing company that purchases a chain of bookstores to sell its books is an example of unrelated diversification.
True
False
Question 781 points Sa
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
Question 801 points Sa
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
Question 821 points Sa
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
Question 841 points Sa
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
Question 861 points Sa
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
Question 891 points Sa
veInformation systems can create advantages that deter entry by competitors into an industry.
True
False
Question 901 points Sa
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
Question 921 points Sa
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
Question 951 points Sa
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
Question 981 points Sa
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
Question 1 1 points Sa
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
Question 2 1 points Sa
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
Question 3 1 points Sa
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
Question 4 1 points Sa
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
Question 5 1 points Sa
veCorporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.
True
False
Question 6 1 points Sa
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
Question 8 1 points Sa
veA multidomestic strategy would likely include the use of high volume, centralized production facilities to maximize economies of scale.
True
False
Question 9 1 points Sa
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
Question 101 points Sa
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
Question 151 points Sa
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
Question 181 points Sa
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
Question 211 points Sa
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
Question 231 points Sa
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
Question 261 points Sa
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
Question 281 points Sa
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
Question 301 points Sa
veInternal benchmarking is discouraged in most organizations because it creates competition and internal rivalries that are counterproductive.
True
False
Question 311 points Sa
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
Question 341 points Sa
veContinuous monitoring enhances an organization’s ability to respond with speed and flexibility.
True
False
Question 351 points Sa
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
Question 401 points Sa
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
Question 431 points Sa
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
Question 451 points Sa
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
Question 471 points Sa
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
Question 511 points Sa
veFor firms following a differentiation strategy, behavioral and intangible incentives are not an effective means of motivating employees.
True
False
Question 521 points Sa
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
1 points Save
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
Question 551 points Sa
veThe matrix structure attempts to combine the advantages of the functional and divisional structure.
True
False
Question 561 points Sa
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
1 points Save
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
1 points Save
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
Question 591 points Sa
veAccording to the text, boundaryless organizational structures are most effective when they replace rather than complement traditional organizational structures.
True
False
Question 601 points Sa
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
1 points Save
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
Question 621 points Sa
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
1 points Save
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
1 points Save
Strategic business unit (SBU) and holding company structures result from extensive:
Diversification
Vertical integration
International expansion
Organizational flattening
Question 65
1 points Save
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
1 points Save
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
Question 671 points Sa
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
Question 681 points Sa
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
Question 691 points Sa
veOnly about 50 percent of corporate venturing efforts reach profitability within six years of their launch.
True
False
Question 70
1 points Save
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
1 points Save
__________ 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
Question 721 points Sa
veProcess innovations are often associated with a low cost leadership strategy.
True
False
Question 73
1 points Save
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
1 points Save
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
1 points Save
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
Question 761 points Sa
veCorporate venture funding refers to special funds that are set aside to invest in the corporation’s internal ventures.
True
False
Question 771 points Sa
veReal options analysis helps managers make investment decisions involving large irreversible commitments of financial resources.
True
False
Question 78
1 points Save
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
1 points Save
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
Question 801 points Sa
veThe term “skunkworks” is used to refer to a type of in-house facility that corporations use to develop entrepreneurial ideas.
True
False
Question 811 points Sa
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
1 points Save
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
Question 831 points Sa
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
Question 841 points Sa
veReal options logic is useful when corporations consider stock options as a way to finance entrepreneurial ventures.
True
False
Question 85
1 points Save
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
Question 861 points Sa
veAdaptive new entry involves offering a radical new product or highly innovative service.
True
False
Question 87
1 points Save
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
Question 881 points Sa
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
1 points Save
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
Question 901 points Sa
veBecause new ventures are typically small, they usually don’t have high economies of scale relative to competitors.
True
False
Question 91
1 points Save
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
1 points Save
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.”
Question 931 points Sa
ve“Blue ocean” strategies rarely provide sustainable advantages because they are easily imitated.
True
False
Question 941 points Sa
veMarket commonality is the extent to which rivals draw from the same types of resources.
True
False
Question 951 points Sa
veForbearance is a particularly aggressive type of competitive attack.
True
False
Question 961 points Sa
veIn the context of competitive dynamics, tactical actions involve major commitments of distinctive and specific resources to strategic initiatives.
True
False
Question 97
1 points Save
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
1 points Save
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
1 points Save
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
1 points Save
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