BADM final

Which of the following is a disadvantage of a functional strategy?

It cannot effectively address a higher level of diversification.

Ruby, a recent fashion design school graduate, has received praise for her clothing designs from her peers and friends on social networking sites; this has inspired her to set up a store where she can design and sell apparel. After experiencing some success with sales, she recruits two employees to handle customers at the store. However, she handles other day-to- day affairs herself, while continuing to design clothes. Which of the following is likely to be a pitfall of this organizational structure established by Ruby?

Once the firm starts growing and attracting more customers she is likely to feel overloaded.

when an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop

a functional structure

let us assume that companies in the oil and gas industry would decrease their prices to respond to a threat by car manufacturers' move towards electric vehicles. what type of competitive strategy would this be?

a tactical action as it does not require fundamental, strategic commitment of resources

a growing number of analysts argue that the smartphone industry is transitioning to the maturity stage of its life cycle. which of the following describes a change likely brought about by the transition

an increased emphasis on process design

Landon is a senior manager for the firm Anderssen Inc. Because of his experience, he has been appointed to the board of EEC inc even though he doesn't work for the firm. He also serves on the board of several other companies. Landon is...

an inside director for Anderssen and an outside director for EEC

all but 1 of the following assumptions underlie closed innovation systems

building a better business model is better than getting to markets first

External governance control mechanisms include all of the following except

competitors

the phrase that best defines a virtual organization is a

continually evolving network of independent companies

which of the following is not an example of how organizational culture exerts behavioral control?

culture sets explicit boundaries

which of the following would be the core objective for a company who's industry has transitioned into the maturity stage

defending market share

when an organization with functional structure diversifies into related product-markets, it generally

develops a divisional structure

Shareholders rely on CEOs to adopt policies and strategies that maximize the value of their shares. to motivate the CEOs to maximize the value of their companies board of directors can consider all of the following options except one:

dismissal for poor performance is not an option

what kind of innovation do hulu, amazon prime, and airbnb represent

disruptive innovation

which 2 components of emotional intelligence deal with the personal ability to manage relationships with others

empathy and social skill

the primary participants in corporate governance do not include the

financial institutions

Tina is the inventor of a personal fitness tracking device, and she is in the process of hiring employees after receiving investment funding. When considering how to structure her company, she should

first establish a strategy and let that be her guide.

Which of the following organizational structures matches best with an international strategy?

functional

A functional structure is recommended when a firm

has a low level of diversification.

Marika received a tip from a close friend who is an executive manager of a publicly traded company called MicroGreen Inc. The manager received some inside information about how to trade MicroGreen stock to get a huge profit. He shared this information with Marika. This scenario is an example of

information asymmetry

top managers at ABC company meet every friday to review daily operational reports and year to year data. this is an example of

informational control

with its sales expected to increase from nearly $17 billion this year to more than $24 billion in 2023, the online food delivery industry is a growing industry. which of the following is not among the features of such an industry

intensity of competition reaches maximum levels at this stage of the industry lifecycle

________ involves building entrepreneurial business within existing corporations

intrapreneurship

Bernard is a board member at Lopez Electronics Inc. He is also a senior executive of the firm. The board is chaired by Ernest Jones, the CEO of Stanley Motors. According to this scenario, Benard ....

is an inside director of Lopez Entertainment

In trying to assure that managerial actions lead to shareholder value maximization, a risk can come about if the market value of a firm becomes less than its book value. the risk is

it becomes an attractive takeover target

which of the following is incorrect about organizational structure

it consists of arrows, which symbolize the differentiation of activities and tasks

which of the following is incorrect about corporate entrepreneurship

it may take a form of focused corporate venturing in which creativity and innovation are embodied in a culture of the organization

Angelica is the CEO of sandhaven ltd, a publicly traded company. The shareholders want Angelica on the board of directors despite her recent appointment as CEO. This decision of the shareholders is most likely because Angelica is...

likely to provide the board with valuable inside information

a simple structure is characterized by

low specialization and high centralization

effective leadership is like a 3 legged stool. which of the following is NOT represented by one of the stool legs?

maintaining the status quo

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.

matrix

in which of the following stages of industry life cycle does emphasis on the production and logistic parts of the value chain become crucial?

maturity stage

what type of organization is defined as a central hub surrounded by networks of outside suppliers and specialists

modular organization

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

multidivisional

Which of the following global strategies best matches with a multidivisional structure

multidomestic

Michael Lazaridis got the idea for a wireless email device that led him to found Research in Motion, now called BlackBerry, from a conference he attended. At the conference, a speaker was discussing a wireless system Coca-Cola was using that allowed vending machines to send a signal when they needed refilling. Lazaridis saw the opportunity to use the same concept with email communications, and the idea for the smartphone was hatched. This is an example of which innovator DNA trait?

networking innovator

after watching his wife struggle to keep track of family finances, intuit founder scott cook identified the need for easy to use financial software that provided a single place for managing bills, bank accounts and investments. this is an example of which innovator trait?

observing innovator

________ describes the collectively shared values and norms of an organization's members.

organizational culture

in his book Loonshots, Bahcall presents the following as the main reason why small biotech companies are more innovative than big pharmaceutical companies

organizational leadership

successful organizations create ________ boundaries among the _______ activities as well as between the org and its external customers, suppliers, and alliance partners.

permeable; internal

Yelena, a CEO of Andron Inc, reports to the board of directors appointed by the shareholders. Based on shareholder suggestions, the board ties Yelena's compensation due to the performance of Andron. Due to this pressure, Yelena begins devoting extra time to projects and undertakes other activities to ensure she has job security and that she receives adequate compensation. The reasons why the board ties Yelena's compensation to firm performance is to overcome

principal-agent problem

CPA Inc. is a publicly traded company. The stockholders of this company delegate the authority to make decisions for the company to a CEO named Joaquin. The stockholders expect Joaquin to make decisions that will benefit the company. However, Joaquin begins to find ways to maximize his total compensation, which hinders CPA's performance. This scenario reflects

principal-agent problems

after witnessing the emergence of eBay and amazon, marc benioff questioned why computer software was still sold in boxes rather than leased with a subscription and downloaded through the internet. this was the genesis of salesforce.com, a firm with over 6.7 billion USD in sales in 2016. this is an example of which innovator DNA trait?

questioning DNA

which of the following constitutes a fundamental shift in the guiding philosophy of leadership in that the interests and needs of leaders becomes more subordinate to those of followers

servent leadership

CEO duality refers to situations in which the CEO

serves as CEO and chairman of the board

While working a night job at a call center, Eric creates an app called EatOut, which can be used to place orders at restaurants, rate the restaurants, and make reservations. Because he receives good responses for his app, he quits his current job to focus his efforts on EatOut. He creates a start-up called BestApps and hires three people to help him improve EatOut and maintain the servers that run it. In this scenario, BestApps most likely has a

simple

which of the following real world scenarios best exemplifies the use of organizational culture to build competitive advantage

southwest airlines pilots sometimes help load baggage, which results in quick turnaround

agency theory is concerned with resolving two problems that can occur in agency relationships. which of the following is not one of those problems?

stockholders and management align with external management

all of the following are central considerations of the agency theory except

the differences in the duties and responsibilities between shareholders and top management

the innovation process is a demanding one involving many choices. all but one of the following correctly describes a key choice involved

the issue of timing (when) comes in the form of a decision on whether to build internal capabilities or collaborate with partners

By takeover constraint, we mean

the risk of being acquired by a hostile raider.

Which of the following is the source of the principal-agent problem in publicly traded companies?

the separation of ownership and control

which of the following represent a correct portion of the steps in the model of competitive dynamics

threat analysis --> motivation and capability to respond --> types of competitive action

Which of the following best explains why a board of directors may grant stock options as part of a compensation package?

to align incentives between shareholders and management

which of the following is not among corporate governance mechanisms

top management training