Management Final Review

True or False: An open innovation model reduces a firm's absorptive capacity.

False

True or False: Innovation and Strategic entrepreneurship can only occur within new businesses.

False

True or False: Managerial decisions about a firm's strategy and organizational structure should not be interrelated.

False

True or False: Product Innovation is more important than process innovation when a firm is in the growth stage of the industry life cycle.

False

True or False: Four Elements of a firm's organizational structure are specialization, centralization, formalization, and generalization.

False - generalization is not correct

True or False: Administrative and political distances are part of the cost-responsiveness framework.

False - its part of the CAGE framework

What of the following statements is true of strategy in an organization?

Org. structure must follow strategy to achieve superior performance

Jack is a board member of firm A but is not an employee of firm A. Jack can best be described as a(n)

Outside Director

Which fast food restaurant has the largest number of retail locations in the world?

Subway

True or False: Even though a firm chooses a business model at its founding, it may change that model later in the life of the firm.

True

True or False: When outsourced activities take place outside the home country, it is known as offshoring.

True

Which of the following best supports the fact that Dieselgate was unethical when entering the U.S. market?

VW engineers installed "defeat devices" that altered the harmful emissions

Which of the following will most likely harm the reputation of a multinational enterprise (MNE)?

a sweatshop owned by an MNE has an explosion that kills hundreds of workers

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

acquisition

How has Apple been able to sustain its competitive advantage in the smartphone industry?

by regularly introducing incremental improvements in its products

ABC's earnings and cash flow are high and stable. According to the Boston Consulting Group growth-share matrix, ABC is a

cash cow

Because keeping costs low is critical to IKEA's value innovation, it switched from a(n)

international strategy to a global-standardization strategy

HIJ corp will be marketing similar products from a company they bought. How will this integration affect HIJ?

it will lower costs through economies of scale

Decisions relating to the range of products and services a firm will offer determine the firm's ________

level of diversification

Why did Quaker Oats Company's acquisition of Snapple fail?

managerial hubris

A radical innovation leverages ________ markets, while incremental innovations are based on _________ markets.

new; existing

QRS drug co. prints the chemical composition of its latest drug right on the package. QSR is protected by a ____

patent

Uber has become one of the largest transportation companies without owning a single car. This is an example of?

platform business

Terry is CEO of XYZ Corp. Terry finds ways to maximize his total compensation. XYZ's performance suffers. This is called

principle-agent problems