Strategic Management Chapter 9
Geovax Inc., a biotechnology comparv, was established to develop an effective vaccine against a deadly virus. As such, a large investment firm formed an equity X alliance with Geovax that resulted in a significant financial investment that followed a string of smaller investments so long as Geovax continued to make headway toward its vaccine. This "wait and see approach can best be described as
A real options perspective
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.
Rule-based controls are least appropriate in organizations with which one of the following characteristics?
Employees are highly skilled and independent.
Tyrell Corporation, a manufacturer of smartphones, has entered into a 15-year partnership with a software company to develop sophisticated operating systems and innovative mobile applications for its phones. This would mean that both companies will have to mutually share their resources, knowledge, and capabilities to develop a superior product. What is the relationship between Tyrell Corporation and the software company best referred to as in this scenario?
Strategic Alliance
Which of the following is not a characteristic of effective reward and incentive systems?
The structure is fixed to assure employees of consistency.
Which of the following is a benefit of outsider dominance on boards of directors?
There is broader access to knowledge and resources in the broader business community.
Behavioral controls are aspects of strategic change that involve finding the appropriate _____ and _______ firm. Among the culture, rewards, and boundaries of the firm
balance; alignment
When entering a foreign market, it is advisable for a new venture that has a core competency only in R&D to form a strategic alliance with a local partner because
building downstream complementary assets can be expensive and time-consuming
For the maximum benefit of each part, a corporation is a mechanism created to allow different parties to contribute all the following except
buildings
Horizontal integration through mergers and acquisitions can help firms strengthen their competitive positions by increasing
differentiation
primary participants in corporate governance do not include the
financial institutions
NoR Inc. is a publicly traded firm that does not wish to be acquired by FRESHPoP Corporation, a much larger publicly traded firm, who is planning an acquisition of NoRu inc. This is an example of a
hostile takeover
Benefit of horizontal integration
lower costs
Effective boundaries and constraints
minimize improper and unethical conduct
CEO duality refers to a situation in which the CEO
serves as both the CEO and the chair of the board of directors.
In terms of the Build-Borrow-Buy framework, a firm's internal resources are considered to be relevant when they are
similar to those that need to be developed and superior to those of competitors in the targeted area
A real-options perspective to strategic decision making breaks down a larger investment decision (such as whether to enter biotechnology or not) into a set of
smaller decisions that are staged sequentially over time.
Lupita is the CEO of JustFixlt 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 the firm enter a contractual agreement with a partner. This scenario best illustrates the concept of
the Build-Borrow-Buy framework
Many institutional investors are aggressive in protecting and enhancing their investments. They are shifting from _________ to owners. They are assuming the role of _________ shareholders and rigorously analyzing issues of corporate governance. In the process, they are reinventing systems of corporate monitoring and accountability.
traders; permanent