Strategy & Organizations Final
Google acquired Motorola in 2011 for $12.5 Billion. This was what type of transaction?
Acquisition
Which of the following is the best example of Low-end Disruption?
AirBnB
Blue Ocean strategies always involve increasing the price of the product or service. (True or False)
False
Finding a Blue Ocean Strategy is relatively low risk (True or False)
False
It is uncommon to find false information on someone's resume (True or False)
False
Mission and Vision are the same thing. Many companies use them interchangeably and there is essentially no difference between the two. (True or False)
False
The primary reason Ringling Brothers Circus went out of business was because of Cirque Du Soleil's success. (True or False)
False
Millennials/Generation Y were born between 1983-2000. Which of the following is NOT a preferred leadership approach?
Have the boss make decisions whenever possible
A company's mission can
Help all employees focus on tasks that will be supportive of the company's goals and objectives
Jim Collins believes it is important "Getting the Right People on the Bus". You can do this by
Hire people who already share core values
The following are attributes of the "Comfort Zone" EXCEPT:
Honor
Which of the following industries is LEAST likely to be affected by the development of autonomous (self-driving) vehicles?
Housing
Which of the following is NOT a question that great managers ask themselves when making a tough ethical decisions?
How can I gain from this decision?
Porter and Lawler argue that
If rewards are adequate, high levels of performance may lead to satisfaction
A Company's Vision can
Impact Culture, Create a purpose that is not defined by sales and profits alone, Help attract and retain talent
Blue Ocean Strategy is most closely aligned with which of the following 5 business strategies from Michael Porter?
Integrated Cost Leadership/Differentiation
Which of the following is NOT an ethical decision-making myth?
It is hard to be ethical
Industries is most likely to change because of disruptive technology over the next five years
Medical diagnosis, The trucking industry, Foodservice industry
Which one of the following is NOT one of the needs of the Clayton Alderfer theory?
Money
Employee performance requires the right combination of
Motivation, Ability, Environment
Which of the following is not an entitlement compensation philosophy?
No raises for poor performing employees
Applicant Sourcing can come from multiple channels. Which of the following channels has the shortest average time to hire?
Referrals
If you believe in Conscious Capitalism, you would agree with all of the following EXCEPT:
capitalism is the root of evil and little good comes from it
A company pursuing the differentiation or focused differentiation strategy would tend to
develop flexible systems that allow rapid response to customers' changing needs
Ikea offers young customers a selection of home furnishings featuring good design, function, and acceptable quality at low prices. Ikea is using which business-level strategy?
focused cost leadership
A transnational corporate-level strategy seeks to achieve
global efficiency and local responsiveness
An analysis of the economic segment of the external environment would include all of the following EXCEPT
income distribution
Customer loyalty programs such as airline frequent-flyer miles are an attempt to
increase customers' switching costs
Zara has pioneered "cheap chic" in clothing apparel. Zara offers current and desirable fashion goods at relatively low prices. To implement the strategy, Zara uses sophisticated designers and effective means of managing costs. These are all characteristics of which business level strategy?
integrated cost leadership/differentiation
The Mars acquisition of the Wrigley assets was part of its related constrained diversification and added market share to the Mars/Wrigley integrated firm. It allowed Mars to gain _______________ because it could sell its products above the market level or reduce its costs below the market level.
market power
Ever-improving levels of efficiency enhance profit margins for a cost-leader. This effects which of the five forces of industry structure most directly?
potential entrants
Which of the following is not an effective influence tactic?
pressure
Backward integration occurs when a company
produces its own inputs
Which of the following reasons for diversification is most likely to increase the firm's value?
reducing costs through business restructuring
Which of the following would NOT be identified in an analysis of the economic portion of the general environment?In a suburban community outside a city in Alabama, a retail store opened that specialized in dance-wear for children and adults. It was moderately successful for five years until the local newspaper published an exposé that scanty lingerie stocked in the back of the store's showroom was selling briskly to a certain clientele. Afterward, the store lost most of its customers and nearly closed. Which segment of the environment did the store owners fail to take into account when they began selling the lingerie?
sociocultural segment
Utilitarian theory says
the best decision is the one that provides the greatest good for the greatest number
Components of Resource Architecture
1. Culture 2. Structure 3. People 4. Processes
Components of a Performance Focused Culture
1. Detailed Appraisal 2. Consequences for Performance 3. Clear feedback on Performance 4. Clear Expectations 5. Training as needed
Employer of Choice would include
1. Engagement 2. Schedule 3. Pay 4. Benefits 5. Culture
Situational Leadership by Ken Blanchard:
1. Gives managers a way to determine what leadership style is needed based on the Development Level of the subordinate 2. Helps the Supervisor to use the right balance of supportive behavior and directive behavior 3. Allow the subordinate to understand where they are on the Development Level
Millennials:
1. Have high expectations for management 2. Are quick learners 3. Are flexible 4. Are driven 5. Can appear self-absorbed
Problems that can occur with an acquisition is
1. Inability to achieve synergy 2. Integration difficulties 3. Too large 4. Inadequate target evaluation
Types of Power in an organization can be
1. Legitimate 2. Reward 3. Referent 4. Expert 5. Informational 6. Coercive 7. Persuasive
Links in the value chain that defines an aligned enterprise
1. Management Systems 2. Resource architecture 3. Business Strategy 4. Organizational capability 5. Enterprise purpose
Mission and Vision can have "unintended consequences" if
1. Management allows current market conditions to bypass Mission/Vision and focus on maximizing profits 2. Employees do not see management "Walk the Walk" 3. Mission and Vision are updated/amended annually
MoviePass is the firm that created a monthly movie pass for $19.95 that consumers could use to see as many movies at the theater as they wanted each month. What was the problem with its business model?
1. MoviePass lost money as the more movies that each customer watched each month, created even greater losses for MoviePass 2. There was no competitive advantage to the offering and movie theaters like AMC and Showcase could create that offer themselves 3. The cost of the offering was more than what MoviePass could generate in revenue
David McClelland acquired framework states
1. Need for affiliation 2. Need for achievement 3. Need for power 4. Needs are acquired, or learned, from cultural, societal, and family influences
How sub-units gain/lose power
1. centrality 2. substitutability 3. uncertainty 4. resource scarcity
Dr. Morris Massey is well known for his work on Value Programming. How many transition "Periods" does a person experience by age 21?
3
Which acquisition would be considered the LEAST related?
An upscale "white-tablecloth" restaurant chain acquires a travel agency
According to a 2016 Gallup Survey, "Engaged" employees will NOT
Be 50% more creative than their peers
Disruptive Innovation Leaders are good at all of the following EXCEPT
Being humble when necessary
Which of the following is NOT important when considering whistle blowing?
Being personally motivated by the action
Important factors to conducting an effective PESTEL analysis
Being precise and concise in your wording for each factor, Brainstorming as many external factors that might affect the industry, Prioritizing the top 5-8 factors that are most important, Assessing whether each factor could have a major impact
Blood banks are highly dependent on donors. In the terminology of industry analysis, which statement of donors is accurate?
Blood donors are suppliers and are powerful because of the critical nature of what they provide to the blood bank
Which of the following is not a reason to make an acquisition?
CEO can earn more money
Which of the following is NOT a strategic decision by Ford?
Changing steel suppliers to get a less expensive price for steel
Which of the following steps toward making an ethical decision includes utilizing checks such as the Platinum Rule test and the Mom test?
Check your instincts
An external analyis of the macro environment does NOT include
Competitive factors
Which one of the following is NOT a stakeholder in Enterprise purpose?
Competitor
According to Kotter, which one of the following is NOT a leadership attribute:
Controlling & Problem Solving
Which of the following steps to making an ethical decision follows the fact-gathering step?
Define the ethical issues
Which of the following can be used to determine how much to pay for a company?
EBITDA
Which of the following is NOT good advice about making ethical decisions?
It is important to come to quick decisions to resolve these important matters
Southwest has a strong business model because
It offers great value to customers through low cost flights, It has figured out how to manage its costs while offering great prices to consumers, It has developed competitive advantage versus other airlines
Why is Blue Ocean strategy important?
It provides an alternative to traditional Competitive Strategy models and creates new ways to think about a business
Important competitive success factors for top performing companies
Making effective use of valuable competencies, Offering innovative products and services, Having an entrepreneurial mindset, Focusing on customer needs
Parts of Strategy
Making management decisions of what to do, Generating above-average returns and profits, Identifying and developing long-term competitive advantage, Making decisions on what not to do
Which one of the following is NOT an integral part of John Maxwell's 5 Levels of Leadership?
People follow you because of charisma and communication skills
Which of the following is NOT one of the adjacent segments that Yellow Tail added to their target market as they expanded their Blue Ocean efforts
People who like Australian cuisine
All of the following are effective ways that large companies use to manage disruptive innovation EXCEPT
Putting more money into advertising and promoting their products
Which of the following is not part of Blue Ocean strategy?
Reduce product quality
All of the following were key to Cirque Du Soleil's Blue Ocean Strategy EXCEPT
Reduce the appeal to children
If Southwest Airlines employees lost their high enthusiasm and commitment to the company
Southwest would have lost one of its competitive advantages and its performance would be threatened
In the Apple case about creating a backdoor to the iPhone it is clear that
That this a Right vs. Right struggle where there is not easily found ethical solution
Which of the following, identified in an analysis of the external environment, is an opportunity for an entrepreneur who wishes to open a business providing "Fitness for Life" physical conditioning services (strength, balance, and flexibility training) in a city of 100,000 people?
The average age of the population in his community is high.
Theory Y by Douglas McGregor states
The average person has significant untapped capacity for creativity and ingenuity
The main reason Telsa has NOT perfected its business model is because
The cost of running the company is very high causing uncertainty about the company and its ability to be profitable long-term
A certain marble quarry provides a unique type of marble that is richly colored and strikingly veined. It has been used for churches and public buildings throughout the world. The architect of a new headquarters for a prestigious Fortune 500 firm has specified the use of this marble, and this marble only, for this project. Which of the following statements is most likely to be true?
The cost of the marble will be expensive because of the bargaining power of the supplier
In the last few years, all of the following have had a major effect on strategic planning EXCEPT
The difficulty in raising financial capital
Which of the following is NOT part of evaluating a firm's business model?
Understanding how a firm expects raise money for acquisitions
Which one of the following is NOT how Corporate Culture can affect acquisitions?
The type of industry you are in
Companies can make profits without having a Vision or Mission statement. A well thought out Mission/Vision statement can help a company achieve above average returns. (True or False)
True
Google and Apple are serious threats to Ford. (True or False)
True
Marvel could produce a movie for 30% less than other high end Hollywood Studios because of lower overhead. (True or False)
True
Organizational politics is social influence attempts directed at those who can provide rewards that will help promote or protect the self-interests of the actor. (True or False)
True
The distinction between political and non-political behavior is intent (True or False)
True
Which of the following is not a good example of a disruptive technology?
Uber
Which of the following questions is NOT part of Organizational Capability?
What is the company's views towards corporate politics?
Which of the following questions does NOT apply to Business Strategy?
Who are your largest shareholders?
Wholesome Pet Food has successfully specialized for 20 years in high-quality pet food made from all-natural ingredients and organically raised lamb. This brand has a strong following and is recommended by veterinarians who practice in affluent neighborhoods. Wholesome's main supplier of lamb has announced that the price for lamb will be 15 percent higher next year
Wholesome will probably be able to pass the cost on to its customers because they are less sensitive to price increases than the average buyer
Yellow Tail wine was successful because it did all of the following EXCEPT
Win prestigious medal awards for their wines
Frederick Taylor's research indicated that
Workers are motivated purely by money
According to Maslow's Hierarchy of Needs which of the following does NOT apply?
You can exist in multiple stages of the hierarchy at the same time
When a firm is able to produce non-standardized (that is, distinctive) products for customers who value differentiated features more than they value low cost, the firm is successfully implementing
a differentiation strategy
Looking at the business model of a firm is
a key part to evaluating a firm's overall strategic efforts
A cost leadership strategy provides goods or services with features that are
acceptable
Which of the following is NOT an abuse of power by the supervisor
after hours socializing
Moving into international markets is a particularly attractive strategy to firms whose domestic markets
are limited in opportunities for growth
Which of the following is NOT an entry barrier to an industry?
bargaining power of suppliers
The differentiation strategy can be effective in controlling the power of rivalry with existing competitors in an industry because
customers are loyal to brands that are differentiated in meaningful ways
A global corporate-level strategy emphasizes
economies of scale
Global warming and energy consumption trends are _________________ aspects of the that firms should monitor.
environmental
A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company, but it is looking for growth opportunities. This company should primarily consider the option of
exporting
A company using a narrow target market in its business strategy is
limiting the group of customer segments served
Media content has moved from paper, tape, and film to a digital world based on Internet technology. From the perspective of the five forces model, which force is most relevant here?
substitutes
A multi-domestic corporate-level strategy is one in which
the firm customizes the product for each country in which it competes
Suppliers are powerful when
they offer a credible threat of forward integration
A firm successfully implementing a differentiation strategy would expect
to charge premium prices
Corporate-level strategy is concerned with and how to manage these businesses
what product markets and businesses the firm should be in
When selecting a business level strategy, the firm must determine all of the following EXCEPT
why should these customers' needs be satisfied?
