Strategic Management UARK ch 6&7 quiz

Which of the following is not one of the characteristics of a contemporary control system? It is a key catalyst for an ongoing debate about underlying data, assumptions, and action plans. It must focus on constantly changing information that is strategically important. It circumvents the need for face-to-face meetings among superiors, subordinates, and peers. It generates information that is important enough to demand regular and frequent attention.

It circumvents the need for face-to-face meetings among superiors, subordinates, and peers.

________, which captures the cultural fit between different firms, is one key element needed when selecting an alliance partner Partner compatibility Partner commitment Joint ventures Partner competency

Partner compatibility

Agency theory is concerned with resolving two problems that can occur in agency relationships. Which of the following is not one of those problems? Goals conflict between principals and agents. Verification of actual agency activity is expensive and difficult to obtain. Principals and agents have differing attitudes toward risk. Stockholders and management align with external stakeholders.

Stockholders and management align with external stakeholders.

Which of the following is not one of the characteristics of reward and incentive systems? They represent a poor means of influencing the culture of an organization. They focus efforts on high priority tasks. They motivate high levels of individual and collective task performance. They represent an effective control mechanism

They represent a poor means of influencing the culture of an organization.

In order to minimize the temptation for managers to act in their own self-interest, governance mechanisms exist for implementation consideration. Which of the following is not a primary means for monitoring managerial behavior? a board of directors that acts in the best interests of shareholders to create short-term value shareholder activism in which owners view themselves as shareowners a board of directors that acts in the best interests of shareholders to create long-term value managerial incentives to align management interests with those of the stockholders

a board of directors that acts in the best interests of shareholders to create short-term value

Behavioral controls are aspects of strategic change that involve finding the appropriate ________ and ________ among the culture, rewards, and boundaries of the firm. balance; alignment measure; balance alignment; balance measure; outcome

balance; alignment

The acquisition by Disney of such firms as Marvel, Pixar, and Lucasfilm strengthened its competitive position by increasing the differentiation of its product and service offerings. sharing only tacit knowledge about its existing products. developing a nonbinding contract. immediately selling its recent acquisitions to more suitable firms.

increasing the differentiation of its product and service offerings.

Mars Tennis Equipment, Inc. wishes to pursue international markets such as Spain and France. In order to do this, it may wish to consider a possible... government partnership that may lead to lobbying. joint venture with another firm already established in those markets. hostile takeover with a firm operating in the United States. marketing strategy that strengthens the international value chain.

joint venture with another firm already established in those markets.

What causes the winner's curse?

overpaying for an acquisition

When does a merger between companies typically occur? when two firms of comparable size join to form a combined entity when large, incumbent firms buy startup companies when a target firm does not want to be acquired when two or more firms enter a temporary vertical strategic alliance

when two firms of comparable size join to form a combined entity

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. Performance is measured against the predetermined goal. Strategies are implemented. Strategies are formulated and top management sets goals.

Action plans are submitted by lower level managers.

Which of the following is not an example of how organizational culture exerts behavioral control? - Culture helps maintain control by creating behavioral norms. - Culture generates unwritten standards of acceptable behavior. - Culture encourages individual identification with the organization and its objectives. - Culture sets explicit boundaries.

Culture sets explicit boundaries.

Daniela wishes to strengthen her firm's marketing department by partnering with a large marketing firm that can complement her existing value chain. However, she fears potential legal repercussions, including potential lawsuits filed by U.S. federal agencies such as the Federal Trade Commission. Which of the following strategic options should Daniela pursue? Daniela should implement green field operations with the marketing firm to strengthen her international reach. Daniela should consider forming a strategic alliance with the marketing firm. Daniela should move forward with a hostile takeover of the marketing firm. Daniela should purchase the marketing firm outright via an acquisition

Daniela should consider forming a strategic alliance with the marketing firm.

Which of the following statements is true of an equity alliance? An equity alliance is based on contractual agreements rather than partial ownership. In an equity alliance, the partners frequently exchange personnel to make the acquisition of tacit knowledge possible. In an equity alliance, a standalone organization is created that is jointly owned by two or more parent companies. An equity alliance creates weaker ties between the alliance partners when compared to a non-equity alliance.

In an equity alliance, the partners frequently exchange personnel to make the acquisition of tacit knowledge possible.

Informational control systems are concerned with which of the following questions? Is the organization doing things right? Is the organization doing the right things? Are rules and regulations being followed as information is processed? Is the environment of the organization a necessary and sufficient condition for success?

Is the organization doing the right things?

In addition to an annual base salary of 1.3 million USD and 10.4 million USD in stock compensation and bonuses, Heather Bresch, CEO of Mylan Pharmaceuticals, also received 6.4 million USD in other compensation in 2015. This included 19,200 USD for the use of a company-provided automobile and 310,000 USD in personal use of the company jet. Which of the following statements is true regarding this situation? Shareholders favor diversification. Executives favor diversification. Top-level managers always act in the shareholder interest. Top-level managers may pursue their own interests over that of the company.

Top-level managers may pursue their own interests over that of the company.

The Konex Hotel Group purchased Green-Plus Hotels for an estimated value of $120 billion. All the hotels previously owned by Green-Plus Hotels are now managed by the Konex Hotel Group and are known as Konex hotels. What does this scenario best illustrate? a merger a joint venture an acquisition an equity alliance

an acquisition

What is the term for the process of merging with a competitor at the same stage of the industry value chain? hierarchical integration horizontal integration cross integration vertical integration

horizontal integration

NoRu 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

Top managers at ABC Company meet every Friday to review daily operational reports and year to date data. This is an example of: behavioral control. informational control. strategy formulation. strategy implementation.

informational control.