Final - Business Strategy & Policy

strategic alliance

A ________ is best described as a voluntary arrangement between firms that involves the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services.

information asymmetry increases the likelihood of selecting inferior alternatives.

Adverse selection in a public stock company occurs when

principal.

An individual who is part owner of a company and hires another individual to act on his or her behalf is referred to as a(n)

input controls.

Coda Inc. is an apparel manufacturer. The management at Coda prefers moderate control over the operations of the different departments such as R&D, design, marketing, and sales. It allocates a budget to each function at the beginning of each quarter. This is an example of implementing control through

joint venture.

Dow Corning is a company owned by Dow Chemical and Corning. This is most likely an example of a(n)

exporting goods.

During the period of Globalization 1.0, the mode of entry into foreign markets primarily involved

not synonymous with law.

Ethics is

organic

Fast Call Inc. is a pharmaceutical company that has many breakthroughs in medicine to its credit. Unlike many other pharmaceutical companies, Fast Call has a relaxed work environment where employees are free to discuss projects with each other. Employees are encouraged to choose the projects that interest them; communication between team members and their supervisors is open and easy. Because of the company's work culture, its employees feel motivated to work harder and display more entrepreneurial behaviors. In this scenario, Fast Call Inc. is most likely an organization that is

price

For a firm pursuing a global-standardization strategy, which of the following bases of competition becomes its primary weapon?

Fragra Inc. will sell the same products and services in both domestic and foreign markets, whereas SaveMarket Inc. will customize its product offerings to suit local requirements.

Fragra Inc., a company that manufactures and sells premium perfumes, is pursuing an international strategy. SaveMart Inc., a supermarket chain, follows a multidomestic strategy. Which of the following statements is most likely true of this scenario?

national competitive advantage

Some of the best engineering and car companies are in Germany. Thus, it can be concluded that Germany has a ________ in the automobile industry.

values.

The most important yet least visible element of organizational culture is

selecting the best possible partner.

The process of alliance management begins with

information asymmetry.

The risk of employee opportunism on behalf of agents in a public stock company is exacerbated by

blue ocean

The transnational strategy is similar to a(n) ________ strategy because they both focus on product differentiation and low costs.

The firm's culture can turn from a core competency into a core rigidity.

What is most likely to happen if a firm relies too long on a competency without honing, refining, and upgrading as the firm and the environment change?

consider an outright acquisition.

When a firm does not have the resource required for pursuing a growth strategy, and if the resource in question is not easily tradable, the implication for the strategist is most likely to

acquisition

When large, incumbent firms buy start-up companies, the transaction is generally described as a(n)

Its job descriptions are very descriptive.

Which of the following characteristics of McDonald's best supports the fact that it is a mechanistic organization?

lack of trust between partners

Which of the following is a common drawback of a non-equity alliance?

They create strong ties, trust, and commitment between the partners.

Which of the following is an advantage of joint ventures?

They are flexible and easy to initiate and terminate.

Which of the following is an advantage of non-equity alliances?

Private companies are not required to disclose financial statements.

Which of the following is an advantage that a private company enjoys over a public company?

They reduce a firm's exposure to loss of reputation.

Which of the following is the most likely advantage of using foreign acquisitions or greenfield plants as a foreign entry mode?

Votes at shareholder meetings determine whose representatives are appointed to the board of directors.

Which of the following is true of the board of directors in a public stock company?

exporting

Which of the following modes of entering a foreign market allows for the lowest level of control?

Sixteen of the 17 board directors are from outside the organization.

Which of the following proves that GE's board of directors is significantly independent?

the need to tailor product and service offerings to fit native consumer preferences and host-country requirements

Which of the following statements best describes local responsiveness?

organic organization

Which of the following types of organizations best helps match a differentiation strategy to a functional structure?

Business ethics

________ are an agreed-upon code of conduct in business, based on societal norms.

Specialization

________ describes the degree to which a task is divided into separate jobs.

Organizational inertia

________ refers to a firm's resistance to change the status quo that can set the stage for the firm's subsequent failure.