mgt

Frederica, the chief financial officer at a moped manufacturer in Canada, wants to build new plants in Canada rather than overseas. Which of these points should she make as she argues her case to the board of directors "Keeping our factories in Canada means facing up to the liability of foreignness." "Canada's wages and benefits are so low compared with the rest of the world that it makes the most sense to build factories here." "As the rest of the world globalizes, we will lead the way in strengthening our home nation." "It will be much more difficult to protect our intellectual property if we build factories overseas."

"It will be much more difficult to protect our intellectual property if we build factories overseas."

Which of the following descriptions best exemplifies adverse selection? An employee spends time on social networking sites during work hours. An interview candidate lists his qualifications in chronological order. A manager cannot ascertain the contributions of individual team members in team production. A research scientist uses the organization's resources to conduct personal research.

A manager cannot ascertain the contributions of individual team members in team production.

Most businesses around the world are more than 50 percent globalized, meaning that more than half their revenues are from outside the home country

False

Why should managers using the M-form organizational structure to support a related-diversification strategy ideally concentrate decision making at the top of the organization It helps contain the core competencies within a strategic business unit (SBU). It allows a high level of integration. It helps evaluate each SBU as a stand-alone profit-and-loss center. It leads to competition between SBUs.

It allows a high level of integration.

Why does a firm use an organic organization combined with a functional structure when implementing a differentiation strategy? It allows the firm to reduce its cost below that of competitors while offering acceptable value. It allows the firm to create incentives to foster process innovation in order to drive down cost. It allows the firm to constantly upgrade core competencies in R&D, innovation, and marketing. It allows the firm to nurture and constantly upgrade necessary core competencies in manufacturing and logistics.

It allows the firm to constantly upgrade core competencies in R&D, innovation, and marketing.

Angie owns and runs Archana, a private start-up company with a current value of $1.3 billion. Archana is interested in going public to fund future growth. Which action should Angie take before Archana's initial public offering? She should investigate Archana's existing or potential problems with ethics or the law, if such problems exist. Angie should not embark on an IPO until Archana's value is higher. She and senior managers should write down their code of ethics. Angie should come up with a business plan for what Archana will do once it is no longer publicly traded.

She should investigate Archana's existing or potential problems with ethics or the law, if such problems exist.

What are poison pills Shareholders use them to prevent the founder of a company from taking the company private through a leveraged buyout. They are defensive provisions that kick in should a buyer reach a certain level of share ownership. Companies use them in a bid to perform a hostile takeover of competing firms. They are unspecified conditions in the contract between stakeholders in an organization.

They are defensive provisions that kick in should a buyer reach a certain level of share ownership.

According to Michael Porter, which of the following is a problem with many publicly traded companies Shareholders of publicly traded companies do not have a legitimate claim on profits. There is no transferability of stock ownership in publicly traded companies. They have defined value creation too narrowly in terms of financial performance. Publicly traded companies have no legal standing and are not responsible for their debts.

They have defined value creation too narrowly in terms of financial performance.

Administrative and political distances, such as the presence or absence of colonial ties, are part of the CAGE distance framework

True

Organizational design involves establishing a firm's structure, culture, and control mechanisms

True

Vassar Systems Inc. wants to globally expand its market. It intends to ensure that its mode of foreign entry allows it to have strong control over its operations and protect its intellectual property, though that may mean investing a significant amount of capital and other resources. In this scenario, which of the following foreign entry modes would best suit Vassar Systems? franchise agreement licensing exporting acquisition

acquisition

David and Fred are customer care employees at JPN Care. In between calls, David and Fred spend time on Facebook and YouTube. The relaxed guidelines at JPN allow them to do that. However, sometimes, they knowingly avoid answering calls or keep customers on hold, while they check their social networking accounts. Such behavior typically exemplifies the agency problem of adverse selection. can be stopped by implementing performance incentives and strict control mechanisms. demonstrates the dangers of information asymmetry. is neither unlawful nor unethical; hence, David and Fred cannot be reprimanded.

can be stopped by implementing performance incentives and strict control mechanisms.

According to the agency theory, conflicts that arise in corporations should be addressed in the legal realm. companies should focus on generating profits for stockholders. principals and agents have interchangeable roles. corporations are more than a set of contracts between parties.

conflicts that arise in corporations should be addressed in the legal realm.

Which of the following entry modes was used extensively in Globalization 1.0 stage acquisitions strategic alliances exports greenfield operations

exports

An open innovation model reduces a firm's absorptive capacity.

false

It is up to shareholders to make certain that the financial statements that their firms release are correct and not misleading.

false

A firm that uses a structure that is organized along different business functions such as HR, R&D, Sales, and Marketing and also along different geographical areas such as different countries of the world is most likely using a ________ structure simple multidivisional functional global matrix

global matrix

A functional structure is recommended when a firm diversifies into different product lines and geographies. has a low degree of specialization. has a low level of diversification. has a broad focus in terms of its product/service offerings.

has a low level of diversification

Starling Inc. is a public stock company that provides natural gas for businesses. Although this company generates a large profit, management's focus on reducing costs caused the maintenance budget to be trimmed. Its pipelines have at times leaked, which created significant environmental problems. As a result, the company's value creation has suffered. This scenario supports Michael Porter's warning that public companies have defined value creation too narrowly in terms of financial performance, thereby contributing to black swan events. have defined value creation too narrowly and as a result have ignored political lobbying, thereby contributing to black swan events. often do not keep economic needs and societal needs separate from each other, thereby contributing to low value creation. do not focus enough on increasing firm profits, thereby contributing to low value creation.

have defined value creation too narrowly in terms of financial performance, thereby contributing to black swan events

Downshift Autos Inc. has shifted its research and development unit from its home country to Germany. This allows the company to be better informed about the latest developments in the automotive industry by tapping into the highly advanced automotive industry in Germany. In this scenario, Downshift Autos Inc. is reaping the benefits of resource immobility. location economies. resource ambiguity. economies of scope.

location economies.

When a firm diversifies into different product lines and geographies, a ________ structure is preferred. simple network multidivisional functional

multidivisional

A trend observed during the Globalization 3.0 stage involves multinational companies organizing as global-collaboration networks. countries around the globe becoming more self-sufficient and independent. world's market economies becoming less integrated. privately owned firms getting nationalized.

multinational companies organizing as global-collaboration networks.

Planet Resource Inc. is a global internet company that offers country-specific variations of its sites, keeping in mind the linguistic and religious differences between the countries it serves. Planet Resource is most likely doing this to increase its economic distance from the other countries. reduce its cultural distance from the other countries. reduce its geographical distance from the other countries. increase its administrative distance from the other countries.

reduce its cultural distance from the other countries.

Which of the following characteristics of a public stock company deals with principals and agents? separation of legal ownership and management control legal personality transferability of investor ownership limited liability of investors

separation of legal ownership and management control

A high degree of formalization in an organization is most likely to slow down decision making. increase creativity and innovation. improve customer service. produce inconsistent results.

slow down decision making.

Employees learn about an organization's culture through the process of co-opetition. acculturation. socialization. exploitation.

socialization.

Jen works as a front-line employee for a nationwide retail store. She reports to a floor manager, who reports to a departmental manager, who reports to a regional supervisor, who reports to a vice president, who reports to the CEO. Which of the following best describes this retail store? tall structure flat structure decentralize structure centralized structure

tall structure

Which of the following factors is the most important determinant of economic distance? the presence of legal institutions in a country the topography of a country the ethnicity and religion of consumers the wealth and per capita income of consumers

the wealth and per capita income of consumers

European aircraft maker Airbus invested $600 million in Mobile, Alabama, to build jetliners. Which of the following statements best explains why it used this strategy to take advantage of the high cost of living in the southern United States to take advantage of the high labor costs in the southern United States to take advantage of lower taxes in the southern United States to take advantage of the low impact of globalization in the United States

to take advantage of lower taxes in the southern United States

If a privately held company has a history of legal and ethical problems, those problems can prevent a successful initial public offering (IPO) from taking place

true