Stg Capstone GR2

ability to coordinate highly complex tasks to allow for specialized division of labor.

A primary advantage of organizing economic activity within firms is the

Link the CEO's pay to her performance but avoid high-powered incentives that may cause reckless behavior.

Aperture Science is a publicly traded manufacturer of home electronics. Based on what you have read, which of these actions would be wisest for Aperture Science's board of directors to take to be sure that the company's new CEO is as motivated as possible?

Backward vertical integration

Billy is the CEO of Billy's Kicks, a soccer ball retailer. He decides to purchase the synthetic rubber manufacturing firm so he can create his own soccer balls and sell them, nationally, in his retail stores. In order to do this, Billy will need to engage in ____, which is a corporate level strategy.

build-borrow-or-buy framework

Jennifer is the CEO of JustFixIt Inc., a firm that merges technology with commercial hardware. She has been struggling with the decision to allocate her resources for the development of a new system or go to the market and search for an already established system. The Board of Directors for JustFixIt Inc. suggested that enter a contractual agreement with a partner. This scenario best illustrates the concept of

transferability of investor ownership

Johnathan owns shares in a company called Delos Inc. The company's financial performance has been declining over the past few months, and the value of its stock has been decreasing. Johnathan wants to proactively cut his losses and therefore sells his shares. Mary, a trading enthusiast, buys shares in Delos Inc. Industries because she believes that the share prices cannot go anywhere but up. Which of the following characteristics of a public stock company does this scenario best exemplify?

1. Increase profits/shareholder returns, 2. Increase market power 3. lower costs (econ of scale) 4. Reduce risk 5. Motivate management IILRM

List the 5 reasons why firms need to grow?

Los Pollos Hermanos has a high degree of specialization, formalization, and centralization and relies on a tall hierarchy.

Los Pollos Hermanos is a nationwide fast-food chain. Decision power resides at the top of the organization. Each job is documented in minute detail. The firm has many levels of supervision, including vice presidents and regional managers. The firm's headquarters provides detailed instructions to each of its franchisees so that they provide comparable quality and service across the board. Based on this scenario, which of the following is an accurate statement about Tony's?

diversification discount

Ontomedia Inc. is a large multinational conglomerate. As a single business unit, the company's stock price is estimated to be $200. However, by adding the actual market stock prices of each of its individual business units, the stock price of the company as one unit would be $300. What is Ontomedia experiencing in this scenario?

a dominant business firm

Sonron Auto Corporation generates 85 percent of its annual revenues by manufacturing luxury cars. The company derives 15 percent of its annual revenues by selling its sports merchandise that includes apparel, shoes, and other accessories under the same brand name. Which of the following terms best describes Sonron Auto Corporation?

imitation (4 step process is: Idea generation, idea testing, invention, imitation)

The four-step innovation process ends with

selecting the best possible partner.

The process of alliance management begins with

informational advantage of the lower-level employees.

The root cause of the principal-agent problem between senior executives and lower-level employees can be explained by the

first establish a strategy and let that be him guide.

Tom is the inventor of a personal fitness tracking device, and he is in the process of hiring employees after receiving investment funding. When considering how to structure his company, he should

False

True or False: Innovation that targets new markets with existing technologies is known as disruptive innovation.

Vertical integration, diversification, and geographic scope

What are the 3 dimensions of corporate strategy

Firms that consolidate by purchasing their rivals will find themselves at a disadvantage. (this is a good thing bc they essentially are monopolizing)

Which of the following is not true about the decline stage of an industry life cycle?

Samantha operates an industrial test kitchen in which local growers bring their produce to local chefs, who use the kitchen to try new recipes and determine which produce to buy

Which of the following scenarios best exemplifies a platform business?

Simple

While working a night job at a call center, John creates an app called iFood, which can be used to place orders at restaurants, rate the restaurants, and make reservations. Because he receives good responses for his app, he quits his current job to focus his efforts on iFood. He creates a start-up called JohnBuilt1 and hires three people to help him improve iFood and maintain the servers that run it. In this scenario, JohnBuilt1 most likely has a ____ structure.