Mgt. 4335 Ch. 8, Mgt. 4335 Ch. 10, Mgt. 4335 Ch. 12, Mgt. 4335 Ch. 11
What is the Pareto Principle? 20% of the effects come from 80% of the causes. 60% of the effects come from 40% of the causes. 50% of the effects come from 50% of the causes. 80% of the effects come from 20% of the causes.
80% of the effects come from 20% of the causes.
_________ occurs when one partner tries to exploit the alliance-specific investments made by another partner. Misrepresentation Battery Hold-up Bondage
Hold-up
Which stage of the product/business/industry life cycle involves an increase in competitive rivalry and late majority buyers? Introduction stage Growth stage Maturity stage Decline stage
Maturity stage
LeeAllen Inc., a well-established healthcare centre, starts a new production unit. The company hires 100 new employees for the new unit to meet the customer demand. In the context of the 7 S model of organizational alignment, which of the following is exemplified in this case? Structure Staffing Strategy Style
Staffing
In the ___________ of the product/business/industry life cycle, sales begin to accelerate as innovation gains traction and increased market acceptance. introduction stage growth stage maturity stage decline stage
growth stage
Paws Corp., a manufacturer of pet products, tries to get a few customers to try out their products. The primary goal of the organization is to get some reference customers that will seed future growth to increase market acceptance. In this case, the organization is in the ___________ stage of the product life cycle. growth decline maturity introduction
introduction
The most common way to distinguish one type of alliance from another is by the _________. measure of profit each firm derives out of the alliance mechanism used to govern the alliance motive behind the alliance products of the firms involved in the alliance
mechanism used to govern the alliance
MorrisWhitaker Inc., a metallurgical firm, wants to create a new production plan. This step involves formalizing and institutionalizing new behaviors, methods, processes, or routines. This is an example of the ________ phase of organizational change. monitoring changing refreezing unfreezing
refreezing
An organization studies the strategies of its competitors closely. At the current stage, it studies factors such as geographic location, characteristics of business model, services provided, and time management. At this stage, the organization is identifying the competitor's __________. organizational structure goals and achievements resources and capabilities objectives
resources and capabilities
The approach, or pricing strategy, a company uses to get paid for the value it delivers through its business model is called the ___________. differentiation model customization model revenue model cost model
revenue model
Nathan, a designer at Zeal Inc., comes up with a new idea. While Nathan considers turning it into a piece of art, Ricky, his colleague, suggests converting the idea into a product that generates revenue. Ricky's suggestion to convert the idea into a revenue-generating product refers to a(n) ___________. variation innovation invention revolution
innovation
Which of the following statements is true of the maturity stage of an industry's life cycle? Toward the end of this stage product innovation starts to give way to process innovation. Demand increases as the early majority is convinced that the product concept works. The market size of the product shrinks significantly. Growth starts to slow as total market penetration increases.
Growth starts to slow as total market penetration increases.
ThomasMyers Inc., a global automobile company, aims at developing a strategy to create and sustain a competitive environment. It wants to develop a structure that divides the labor and tasks of the organization. It aims at coordinating and controlling work of the different units within the firm. In the context of the 7 S model of organizational alignment, which of the following best exemplifies ThomasMyers' approach? Hard triangle Scorecard Soft square Guiding coalition
Hard triangle
How do companies in different strategic groups differ from each other? They employ different business models. They go after customers with different value propositions. They are in completely different industries (e.g., automobile vs. medicine). They are in completely different industries and employ different business models. They employ different business models and go after customers with different value propositions.
They employ different business models and go after customers with different value propositions.
Timber Inc. enters an exclusive partnership to ally with Teal Corp. in order to enter a foreign market. Which of the following statements is likely to be true in this case? Timber and Teal are unlikely to receive inputs or activity from each other. Timber is likely to acquire an activity or input from Teal to create a new value. Timber is likely to buy an activity from Teal using an arm's-length relationship. Timber is likely to send a bid to Teal along with other suppliers for the lowest price.
Timber is likely to acquire an activity or input from Teal to create a new value.
Zara, a research analyst, is studying the business decisions of some restaurant owners. During the data analysis stage, she employs a strategic canvas. Which of the following is likely to be her primary reason to employ this tool? To study the differences in the ways the restaurants compete with each other To identify the combined target audience of strategic groups as a whole To observe the similarities in the employees' views of their respective organizations To understand the pricing strategy used for different dishes within each restaurant
To study the differences in the ways the restaurants compete with each other
Alignment means that parts are properly positioned in relationship to each other. True False
True
Companies that are in your industry but not in your strategic group are not direct competitors. True False
True
Switching from one strategic group to another is usually difficult. True False
True
The only true way to protect against misrepresentation is to partner with trustworthy individuals.
True
Which of the following is one of the three criteria of an innovation presented in the animation? Useful Scalable Inimitable Disruptive
Useful
Zeal Inc., a software firm, decides to enter the publishing industry. While it has the financial resources required to enter the new market, it lacks the expertise and technical knowledge required to establish itself in the new industry. So, Zeal Inc. enters into strategic alliance with Chrome Corp., a leading e-publisher. Which of the following is likely to be true in this case? Chrome is likely to lose its relational advantage through this alliance. Zeal and Chrome are likely to cooperate even at the stage of research and development. Zeal's vision is likely to contradict that of Chrome. Chrome is likely to provide its expertise only at the marketing stage.
Zeal and Chrome are likely to cooperate even at the stage of research and development.
High conversion rate refers to ___________. the high rate at which the production cost is returned in the form of profits from sales a high percentage of sales achieved as a result of a firm's current marketing strategy the high rate at which people switch to a firm's product from a rival firm's product a high percentage of free users who are willing to convert to paid customers for premium features
a high percentage of free users who are willing to convert to paid customers for premium features
Palm's, a new restaurant in Boston, enters the market with a new strategy. Cooking enthusiasts can co-create a dish for their family along with the in-house chefs. They also allow families to cook their meals together and dine by the poolside. None of the other restaurants in the city offers this unique service. This is an example of a ___________. blue ocean strategy low-end disruptive innovation high-end disruptive innovation mass-customization strategy
blue ocean strategy
A well-established pharmaceutical company has built a number of mechanisms to promote innovation. As part of this initiative, it provided an opportunity to its employees to work on projects that interest them. It also arranged for a weekly brainstorming session to gather and consolidate innovative ideas and approaches. This is an example of _________. communicating a vision creating a response profile empowering individuals building a guiding coalition
empowering individuals
Noel, the CEO of a firm operating in the electronics industry, wants to change the environmental trends, store keeping facilities, and distribution strategy by creating a new plan for the production plant immediately. This need for change can be achieved by _________. refreezing creating a response profile generating urgency building a guiding coalition
generating urgency
An alliance is likely to rely most on relationships between individuals when it is based on _________. legal contracts collateral bonds goodwill trust shared ownership
goodwill trust
Peach Corp. continues to refine its chocolate products even as they look for innovative ways to reach customers through marketing and new distribution channels. In this case, the organization is in the ___________ stage of the product life cycle. growth maturity introduction decline
growth
Rimezine Inc., a pharmaceutical company, incurred losses in the current quarter due to low customer demand. It recognized and publicly admitted that the current strategies of the company are not producing acceptable results. The company is in the ________ phase of organizational change. soft square changing hard triangle unfreezing
unfreezing
A cell phone manufacturing company gives away a free case with a purchase of any product higher than $50. Which of the following is being exemplified in this case? A bundling strategy A third-party pay strategy A blue ocean strategy A cross-sell strategy
A bundling strategy
Borpon Inc. and Biocolog Corp. are well-established biotechnology companies. They enter into a strategic alliance in which they create and own a legally independent company. The new company is created from resources and assets contributed by the parent firms. Revenues, expenses, and profits are equally shared by both firms. Which of the following strategic alliances is adopted by Borpon and Biocolog? A joint venture An equity alliance A distribution agreement A contractual alliance
A joint venture
Sepia Inc., a fertilizer company, needs permission to test its new products on plantations owned by an agro-based industry. In return, the company is willing to pay a percentage of revenue to the agro-based industry. In this case, which of the following contractual alliances should be adopted by Sepia? A distribution agreement A licensing agreement A supply agreement An input agreement
A licensing agreement
Lucy, a researcher, wants to identify the main differences in different healthcare firms competing to deliver value. She studies the relative price, product line breadth, and geographic placement to identify the differences. Which of the following is Lucy likely to rely on to identify how the firms compete? A workflow analysis A quality control measure A strategic group map An employee survey
A strategic group map
A research firm creates a graph to represent how companies compete with each other. The X-axis represents the competitive offerings and Y-axis represents performance. Which of the following does the graph represent? A workflow analysis A strategic group map A strategy canvas A structural analysis
A strategy canvas
John requires 500 shirts of a particular fabric and quality. He partners with Loumang Inc., a fabric manufacturing company, to develop certain customized inputs. Which of the following is being exemplified in this scenario? A profit agreement A supply agreement A licensing agreement A distribution agreement
A supply agreement
Which of the following companies uses the strategy of "Eliminating a Step in the Value Chain"? Nordstrom Mercedes-Benz Amazon Wal-Mart
Amazon
Which of the following is not an example of a company that uses/has used the strategy of Low End Disruptive Innovation? Amazon Apple Nucor Skype
Amazon
Inks Corp. is a manufacturer of pens. It creates a new product called Quink, a quick-drying ink pen that does not require the use of blotting paper. It creates this product by building on its established knowledge of the properties of ink and the mechanisms of a pen. Which of the following innovations is being exemplified in this case? A radical innovation A revolutionary innovation An incremental innovation A subversive innovation
An incremental innovation
Which of the following are ways a firm can take advantage of another firm in an alliance? Vertically integrating Misrepresentation Hold-up Both vertically integrating and hold-up Both misrepresentation and hold-up
Both misrepresentation and hold-up
Why should a company create a strategic alliance with one or more other companies? To differentiate more from competitors To combine resources and capabilities to create new value To make employees happy that may have connections with other companies Both to differentiate more from competitors and to combine resources and capabilities to create new value Both to combine resources and capabilities to create new value and to make employees happy that may have connections with other companies All of the choices are correct.
Both to differentiate more from competitors and to combine resources and capabilities to create new value
Identify a way firms create value through alliance. By combining unique resources By creating new industry-specific resources By pooling trade secrets By increasing the transaction costs
By combining unique resources
Robinson Inc., a manufacturer of smartphones, focuses on moving from its one set of strategic plans to another by increasingly engaging itself with customer services. It feels that it is important to increase the quality of products to increase and retain its customer base. Which of the following phases of organizational change is exemplified in this case? Refreezing Unfreezing Hard triangle Changing
Changing
Identify a feature of the soft square. It represents a set of levers that managers can quickly pull to create realignment. It includes elements that can be influenced and changed easily. Changing an organization's skill set can take several months. Changing the style or shared values of a firm takes place over a week.
Changing an organization's skill set can take several months.
Green Dye Inc., a manufacturing firm that produces organic products, is approached by Zoe, a leading clothes designer owning her own label. Together, they create a line of clothes using organic dye and fabric made from pure cotton. Which of the following is likely to be the primary value created by this alliance? Lowering the transaction costs at all stages of the value chain Offering customized retail benefits to increase the sale of the products Combining unique resources along different stages of the value chain Lowering distribution costs at all stages of the value chain
Combining unique resources along different stages of the value chain
Which of the following should ideally take place in the refreeze phase of organizational change? Engaging in trial and error process Making a clear break with past actions Creating alignment Developing new behaviors
Creating alignment
Which of the following is not involved with the execution portion of strategy implementation? Accountability for action Creating organizational alignment Clear Goals Accurate measures of performance Rewards and incentives
Creating organizational alignment
Which of the following is not one of the innovative strategies presented in the animation? Differentiation High-End Disruption Mass Customization Blue Ocean Strategy
Differentiation
What classification of strategy best describes the strategy deployed by Netflix to take on Blockbuster? Incremental Disruptive Differentiation Low End
Disruptive
Which one of the following is NOT one of the basic alliance arrangements? Contractual alliance Equal alliance Equity alliance Joint venture
Equal alliance
A contractual alliance involves writing a contract that describes how much equity each partner receives.
False
Southwest and Delta compete in the same strategic group. True False
False
Strategy implementation depends only on the ability to execute. True False
False
To achieve economies of scale in a strategic alliance, two or more companies combine unique resources.
False
An air conditioner manufacturer, Hues Corp., decides to form a strategic alliance with a firm to source components that make up the highest percentage of total costs. Which of the following suppliers is it most likely to choose as a partner? Fin Inc. which produces the compressors used in Hues air conditioners Black Corp., which prints Hues logo on the air conditioners Den Corp., which produces the designer vents for Hues that come in different colors Jades Inc., which manufactures the packages required for finished products of Hues
Fin Inc. which produces the compressors used in Hues air conditioners
Which of the following statements is true about how an arm's-length relationship is used in strategic alliance? Firms that use the arm's-length relationship acquire the production facilities of other firms. Firms typically use the arm's-length relationship between internal departments. Firms use the arm's-length relationship to purchase inputs at the lowest price. Firms cannot buy inputs from multiple sources using the arm's-length relationship.
Firms use the arm's-length relationship to purchase inputs at the lowest price.
Gem Inc. a clothing manufacturer, creates a new strategy to increase its customer base. Maya, a marketing student, observes that Gem engages in disintermediation, while Nate, her friend, believes that this observation is incorrect. Which of the following statements is likely to support Maya's observation? Gem is likely to eliminate middlemen and directly deliver products to customers. Gem is likely to offer coupons to regular customers and increase brand loyalty. Gem is likely to create disruptive innovations to eliminate competition. Gem is likely to misrepresent facts in its promotions to increase sales.
Gem is likely to eliminate middlemen and directly deliver products to customers.
Teal Inc. forms a strategic alliance with White Corp. In their contract, they specify how governance issues, operating issues, and termination issues would be resolved. Which of the following is likely to be covered under the clause that deals with governance issues? How intellectual property will be shared by Teal and White How profits will be split between Teal and White What performance is expected by Teal and White from each other Under which circumstances Teal or White can exit the alliance
How profits will be split between Teal and White
___________ refers to Professor Rich's argument that competitive intensity has increased, and that periods of competitive advantage have decreased. Hypercompetition Mass customization Third-party competition Standardization
Hypercompetition
A research institute plans to build a competitor response profile for a study. Which of the following is the first step to build such a profile? Creating a structural chart Focusing on productivity Studying the strategic ideas of competitors Identifying the assumptions
Identifying the assumptions
Which of the following statements is true about strategic alliances? In strategic alliances, companies may choose to cooperate at any stage along the value chain. Strategic alliances usually lead to one of the firms losing their relational advantage. Strategic alliances exclude functions that are bought through bidding. In strategic alliances, the power to make decisions is always evenly distributed amidst the firms.
In strategic alliances, companies may choose to cooperate at any stage along the value chain.
Which of the following statements refers to incremental innovation? It is a pricing strategy that a company uses to get paid for the value it delivers through its business model. It can be described as building on a competing firm's established knowledge base to steadily improve a firm's own product or service. It can be described as innovation that draws on a different knowledge base, technologies, or methods to deliver value in a truly unique way. It can be described as building on a firm's established knowledge base to create minor improvements to the product or service a firm offers.
It can be described as building on a firm's established knowledge base to create minor improvements to the product or service a firm offers.
Which of the following statements is true of the blue ocean strategy? It creates new demand in an uncontested market space. It disrupts an existing market by displacing an earlier technology. It relies on its existing knowledge of products to improvise on new features. It uses low-end disruptive innovations to compete in the market.
It creates new demand in an uncontested market space.
Which of the following statements is a characteristic of a disruptive innovation? It disturbs an existing market by displacing an earlier technology. It sustains a company's current product offering by the firm's established knowledge. It typically uses old technologies used by competitors in the market. It typically offers value in a way that is easy to imitate.
It disturbs an existing market by displacing an earlier technology.
Which of the following statements is true of a firm that creates a radical innovation? It focuses on the established knowledge base of a firm to deliver value. It employs a fundamentally different business model than its rivals. It aims to sustain its current product offering and revenues. It relies on existing technologies and resources to create a new product.
It employs a fundamentally different business model than its rivals.
In the context of the 7 S model of organizational alignment, which of the following statements is true of structure? It includes recruitment, hiring, training, promotion, and compensation. It is the ability of an individual to perform tasks. It represents the most important S in the 7 S model. It helps create alignment between goals, skills, and environmental needs.
It helps create alignment between goals, skills, and environmental needs.
Which of the following statements is true about the principle of line of sight? It is often successful by trial and error. It provides the fundamental motivation for change. It helps to overcome the limited perspectives of individual organizational members. It means moving from one set of behaviors and activities to another.
It helps to overcome the limited perspectives of individual organizational members.
Identify a true statement about the innovative strategy of disintermediation. It uses the price skimming strategy to gain a foothold in the market. It creates products that outperform existing products in the market. It involves reconfiguring the value chain to eliminate activities or steps. It involves producing a low-cost product or service at the low-end or most price-sensitive segment of the market.
It involves reconfiguring the value chain to eliminate activities or steps.
Which of the following statements best describes a strategic alliance? It is a cooperative arrangement in which two or more firms combine their resources and capabilities to create new value. It is an unofficial arrangement in which two large firms cooperate unofficially to control production and prices within a certain market segment. It is an arrangement where a firm purchases an input from another firm with no obligation to have a long-term relationship with the other firm. It is a cooperative arrangement where a firm which is on the verge of shutting down sells all of its assets to another firm.
It is a cooperative arrangement in which two or more firms combine their resources and capabilities to create new value.
Identify a feature of the changing phase of organizational change. It is how a company adapts to its environment and learns new behaviors. It begins when individuals, groups, or companies make a "stop doing" list. It allows organizations to maintain the progress they made through change. It provides the fundamental motivation for change.
It is how a company adapts to its environment and learns new behaviors.
Ochre Inc. uses the freemium strategy to enter a market. This strategy becomes successful and the organization gains a wide customer base. Which of the following is likely to be true in this case? It is likely to gain a wide customer base only if there is a high conversion rate. It is likely to gain new customers in an existing market only through price skimming. It is likely to use the high-end disruptive innovation strategy. It is likely to use product differentiation to mark-up the initial price of the product.
It is likely to gain a wide customer base only if there is a high conversion rate.
Which of the following statements is true of the changing phase of organizational change? It means moving from one set of behaviors and activities to another. It entails moving away from certain actions, policies, or strategies before adopting anything new. It involves formalizing and institutionalizing new behaviors, methods, processes, or routines. It provides the fundamental motivation for change.
It means moving from one set of behaviors and activities to another.
Which of the following statements is true of the unfreezing phase of organizational change? It provides the fundamental motivation for change. It allows organizations to maintain the progress they made through change. It means moving from one set of behaviors and activities to another. It is the phase where an organization engages in a trial and error process.
It provides the fundamental motivation for change.
Identify an accurate statement about the principle of line of sight. It recognizes that grand strategies only come to fruition as individual managers and employees make decisions about how to allocate the valuable resources they control. It is often successful by trial and error. It provides the fundamental motivation for change. It helps company strategies to revolve around vague notions such as creating shareholder value and increasing earnings.
It recognizes that grand strategies only come to fruition as individual managers and employees make decisions about how to allocate the valuable resources they control.
Which of the following statements is true of shared values? It refers to the priorities and virtues that members of an organization see as important. It represents the most important S in the 7 S model. It helps create alignment between goals, skills, and environmental needs. It includes recruitment, hiring, training, promotion, and compensation.
It refers to the priorities and virtues that members of an organization see as important.
Identify a feature of the hard triangle. The word "hard" in this context refers to difficulty, not tangibility. Structure usually appears in policy manuals, computer programs, or equipment. It represents elements that are often difficult to codify. It represents a set of levers that managers can quickly pull to create alignment.
It represents a set of levers that managers can quickly pull to create alignment.
Which of the following statements is true about strategy? It represents the most important S in the 7 S model. It is the ability of an individual to perform tasks. It refers to the priorities, values, and virtues that members of an organization see as important. It includes recruitment, hiring, training, promotion, and compensation.
It represents the most important S in the 7 S model.
Which of the following statements is true of an incremental innovation? It typically creates improvements based on the knowledge perceived from competitors. It sustains a company's current product offering and revenues. It creates new values through a different set of resources and capabilities than that of rivals. It focuses on a different knowledge base to deliver value in a truly unique way.
It sustains a company's current product offering and revenues.
The research and development department of a pharmaceutical company is in the process of developing a new drug to cure Parkinson's disease. It requires additional resources to complete the process. To convince another pharmaceutical company to provide the necessary resources, it gives false information about how long the drug has been in the developmental pipeline and the guidelines followed in the production process. Which of the following is being exemplified in this case? Profit stealing Misrepresentation Hold-up Bondage
Misrepresentation
_________ occurs when one partner in an alliance creates false expectations about the resources it brings to the relationship or fails to deliver what it originally promised. Misrepresentation Hold-up Profit stealing Bondage
Misrepresentation
An organization forms an alliance contract. It specifies in detail the duties and obligations of each of the partners, how the profits are to be split by the partners, and the process by which disputes will be resolved. Which of the following clauses is likely to cover the duties and obligations of the partners, including warranties and minimum output levels required to satisfy the contract? Performance clause Dispute clause Residual rights clause Voting rights clause
Performance clause
Austin Inc., a media firm, wants to link its employees' day-to-day activities to its impact on the overall strategy. Which of the following will help the company in this case? Principle of line of sight Empowerment of action Creation of a response profile Communication of a vision
Principle of line of sight
Copper Inc., an existing clothing outlet, decides to shift from direct to online retailing. It offers the same products at a reduced price as it does not have to incur the costs to manage a store. In this case, which of the following patterns of innovative strategies has Copper adopted? Forming product differentiation strategies to increase value Adding additional product features to increase the product life-cycle Creating low-end disruptive innovations to decrease competition Reconfiguring the value chain to eliminate activities
Reconfiguring the value chain to eliminate activities
Which of the following is not in the McKinsey 7 S model? Strategy Systems Shared Values Skills Situations
Situations
Richardson Corp., a biotechnology company, wants to hire people who have the abilities to perform tasks, maintain interpersonal relationships, and focus on values of the organization. In the context of the 7 S model of organizational alignment, which of the following best exemplifies Richardson's approach? Hard triangle Soft square Scorecard Guiding coalition
Soft square
Which of the following is correct? Strategy implementation is unimportant because it follows naturally from formulation. Strategy implementation is important because people need to feel good about the new strategy before they enact it. Strategy implementation is easy because organizational members see how a new strategy will lead to competitive advantage. Strategy implementation is difficult because it requires the organization to re-align its internal processes around the new strategy.
Strategy implementation is difficult because it requires the organization to re-align its internal processes around the new strategy.
Godwel Inc., an insurance company, wants to assign accountability for particular tasks. It wants to measure the performance of every unit of the company. Which of the following organizational elements will help Godwel accomplish the given task? Structure Style Strategy Skill
Structure
Mark Dinewell Inc., a well-established restaurant chain has vice presidents for different geographic regions and functional managers for each of those regions. Which of the following organizational elements is exemplified in this case? Structure Style Skill Strategy
Structure
Two organizations that are positioned at different stages along the value chain form an alliance. The contract includes the conditions under which the contract will be closed and the consequences of closure for each partner. Which of the following clauses specifies the above conditions? Voting rights clauses Termination clauses Noncompete clauses Preemption rights clauses
Termination clauses
Rafael, the chief executive officer of a chemical firm, believes that concentrating on the hard triangle of the 7 S model will help bring in the necessary organizational alignment in a relatively short period of time. Which of the following statements, if true, would strengthen Rafael's belief? The organizational element of strategy is often difficult to codify. Changing the style or shared values of an organization is a less burdensome task for the top management. The elements of style and skills are often easy to codify and can speed up the process of change in an organizational structure. The elements of strategy, structure, and systems can help an organization to quickly reach the desired level of change within an organization.
The elements of strategy, structure, and systems can help an organization to quickly reach the desired level of change within an organization.
Which of the following statements is true about strategic groups? The firms within each group compete in similar ways. They exclude rivals who share a similar business model. They identify allies in business groups. The firms within each group are unlikely to target the same customer segment.
The firms within each group compete in similar ways.
Which of the following statements is true about firms in a joint venture? The contributions made by individual firms are easy to measure. The parent firms share revenues and expenses in a particular ratio. The dependency level between partners is low. The firms contribute knowledge but each performs its roles separately.
The parent firms share revenues and expenses in a particular ratio.
A company revises its pay grades to motivate its employees. The details of the revised pay grades are distributed to the employees through a memo or a post on the company's intranet site. This is an example of _________. creating a response profile communicating a vision building a guiding coalition generating urgency
communicating a vision
Determining the best way to respond to _____________ is often a company's most central concern. difficult employees upset customers competitive threats ups and downs of the economy
competitive threats
A software industry implements a new structural change in the corporate hierarchy. Employees are provided with a clear statement of desired outcomes and endpoints for organizational change. This is an example of _________. creating a response profile creating a vision generating urgency building a guiding coalition
creating a vision
Toyota's seat supplier built its factory next door to Toyota's main factory and built a conveyor belt that transferred seats from the supplier into the Toyota factory. This is an example of _____________. combining unique resources creating alliance specific resources pooling similar resources making the best out of their situation
creating alliance specific resources
A salon that specializes in haircuts comes up with a new service that sets it apart from those of its rivals. Clients are requested to send in their photographs; the stylists then create a set of digital images with various looks. Once the client chooses a desired look, a stylist goes to the client's home to deliver the service. The strategy of creating digital images, which requires a unique set of resources and skills, is an example of a(n) ___________. incremental innovation radical innovation progressive innovation altered innovation
radical innovation
Drew's Cafe Inc. and Cuppa Corp., two local coffee chains, combine resources to enter the global market. They retain their individual ownership; however, they agree to share production facilities and manpower, and they also decide to market their products through combined promotional tools. The arrangement made by the two retail chains to combine resources and collaborate for a common objective refers to a _________. product-differentiation strategy mass-customization strategy standardization venture strategic alliance
strategic alliance
A set of companies that compete in similar ways with similar business models pursuing similar sets of customers is called a __________. strategic alliance supplier group strategic group joint venture
strategic group
The soft square in the 7 S model refers to elements that are difficult for people to understand. take time to change. have little effect on a firm's strategy. are tangible elements managers can work on.
take time to change.
The hard triangle refers to elements of alignment are difficult to articulate. skills and other difficult things to change. tangible elements of the 7 S model that managers can easily work on. the partnership between managers, employees, and shareholders that allow strategic change to happen.
tangible elements of the 7 S model that managers can easily work on.
