BUSI 690 Chapter 6-9

A transitional strategy is a __________ approach.

Think global, act local

Which of the following is true of economies of scope?

They come directly from strategic fit along the value chains of related businesses.

Joint ventures are likely to fail when what occurs?

A local partner's expertise is less valuable than expected.

Which of the following would be an example of a company shifting the environmental cost of its business into society?

A manufacturer disposes of waste in public waters that must be treated and cleaned with tax revenues.

Diversifying into new industries

Should be explored when a single business company encounters dwindling opportunities in its principal business.

In general, business ethics consists of

The application of ethical principles and standards to the actions and decisions of business organizations.

Some people have argued that there is an implied social contract between a business and the members of society, according to which of the following?

1.) A business has a moral responsibility to promote the general welfare and avoid doing harm. 2.) The members of society agree not to unreasonably restrain a business' pursuit of fair profit.

Which of the following actions can be effective ways to stop companies that practice socially irresponsible behaviors?

1.) Boycotting the companies' products and services. 2.) Publicizing the bad behavior of companies. 3.) Enacting legislation that makes the activity illegal.

Sharing resources with its international operations allows a company to

1.) Reduce the cost of creating them at each location. 2.) Spread the development costs over a larger volume of unit sales.

Examining which of the following are ways to determine whether a company is actually guided by its official code of ethics?

1.) The extent to which daily operations follow the code of ethics. 2.) Whether the company adheres to the code of ethics when crafting strategy.

Entering a new business via a joint venture can be useful in which of the following situations?

1.) When an opportunity is too complicated or risky for one company to attempt alone. 2.) When an opportunity in a new industry requires more know-how than one company has alone. 3.) When diversification entails operations in a foreign country.

The means of entering a new business by buying an existing business is referred to as

Acquisition.

Adherents of ethical universalism are likely to believe that

Common agreement about right and wrong is the basis for ethical standards that apply to all businesspeople.

Ethical business strategies

Typically arise from managers with strong moral characters.

Which set of standards takes precedence in integrative social contacts theory?

Universal ethics norms.