IS Exam 3

Which of the following statements is true of loosely coupled organizational structures?

They coordinate development and production activities through their adherence to shared objectives.

Which of the following statements is true of loosely coupled organizational structures?

The possibility of achieving synergies is very high in loosely coupled structures.

Not-invented-here syndrome occurs when

a division of a firm is reluctant to adopt other divisions' innovations.

Oxygenic Inc. is a company with major decentralized divisions in Germany, Russia, and the United States. The scientists in Russia develop cancer treatment methods. Treatment clinics are organized in Germany. The U.S. division gathers finance and markets the treatment methods. The activities of the different divisions are coordinated by the central office of the firm to meet company-wide objectives. This is most clearly an example of a _____ strategy.

globally linked

How long does an application for a patent through the Patent Cooperation Treaty (PCT) protect the right to file for patent protection in the member countries of PCT?

2.5 years

Urban Fashions Corp. has become very successful in the last few years and now employs a large number of people. Serena, the owner of the firm, had been very informal in running the company. However, because of the increase in the size of the firm, she now feels that the informal ways of management have become ineffective. In order to structure the behavior of employees, Serena wants to introduce written codes of conduct and regulations into the firm. This change being introduced in the company by Serena is referred to as _____.

Formalization

Which of the following is a characteristic of the center-for-global strategy?

Greater specialization and economies of scale in R&D activities are achieved.

Felix has designed a pair of sunglasses that can be folded and put into a case that easily fits into a shirt or pant pocket. Felix wants to know if he can receive a patent on this invention. Which of the following responses would be most accurate according to the U.S. patent law?

He cannot receive a patent since he is merely making the sunglasses more portable.

Which of the following statements is true of a collective research organization?

It allows a firm to share the cost and risk of basic research.

Which of the following statements is true of standardization?

It can ensure that activities within a firm run smoothly and yield predictable outcomes.

Which of the following is a disadvantage of the local-for-local strategy?

It can result in significant redundancy in activities.

Which of the following statements is true of outsourcing?

It carries a risk of proprietary technology being expropriated by the contract manufacturer.

Which of the following statements is true of contract manufacturing?

It enables a firm to tap the greater economies of scale

Which of the following statements is true of resource fit?

It encourages collaborations based on the combination of complementary resources to access resources a firm does not possess.

Which of the following statements is true of patent trolling?

Its primary purpose in owning patents is to extort money from other firms.

Liam, an employee of Centaurs Incorporated, is part of a new product development team that operates in a completely different manner from its parent organization. Within the team, there is considerable decentralization of authority and limited bureaucracy. It also has its own unique culture. Liam's team can be most accurately referred to as

skunk works.

When technology is progressing rapidly, firms are more likely to

use linkages with other specialized firms to access resources they do not possess.

To ensure that companies do not receive patents in countries where they do not intend to set up production of an invention, some countries have a "working requirement", according to which

The invention must be manufactured in the country where the patent was granted within a specified period of time.

M&P Incorporated, a consumer goods manufacturing firm, has subsidiaries throughout the globe that have to respond to varying local market requirements. Therefore, the firm has planned to adopt a local-for-local approach to innovation. Which of the following statements is true in this context?

The subsidiaries of M&P and their R&D divisions will be highly autonomous.

___ are legally binding contractual arrangements to ensure that partners are fully aware if their rights & obligations in the collaboration & have legal remedies available if a partner should violate the agreement

Alliance contract

__blank refers to the degree to which partners have compatible objectives and styles.

Strategic fit

Since larger companies tend to have more bureaucracy, fixed costs, and commitments to large numbers of employees, customers, and suppliers than smaller firms, you can expect it to

be less responsive to technological changes.

Techworld Zone Incorporated is a renowned laptop and desktop manufacturer. The firm employs thousands of employees and has always followed a rigid hierarchical structure. The management of the company recently decided that it was high time the firm disaggregate in order to

become more responsive to technological changes.

Tacit knowledge is best defined as the knowledge that

cannot be readily codified or transferred in written form.

carl owns a software firm, and Mike owns a computer hardware manufacturing firm. They decide to create an alliance in order to manufacture laptops and desktops using the shared competencies of their respective firms. When creating the alliance, they make sure that each of them invests 50 percent capital and that they would each own a specified right to a percentage of the profits from the alliance. The collaborative relationship in this scenario is known as ________blank.

equity ownership

LiteShoes Incorporated has recently obtained architectural control for its shoe glider technology. By doing so, the company has

improved its efficiency in controlling the rate at which the technology is upgraded or refined.

Stevenson, a U.S. citizen, wrote a book called The Ten Commandments of Leadership. He gave away copies of the book to the people who attended his workshops on leadership. The copyright protection for this book

is in effect from the time the book was created and fixed in a copy.

The R&D team of Zelda Technozone Incorporated has developed a prototype for a two-seater car that runs primarily on solar energy. Since the firm usually manufactures household appliances, the management acknowledges that it does not have the required competencies to manufacture this car on a large scale. It decides to access another firm's manufacturing competencies. Which of the following collaborative arrangements is most appropriate in this scenario?

joint venture

As a firm grows bigger, it becomes

less efficient in R&D because of loss of managerial control.

According to Schoonhoven and Jelinek, quasiformal structures are

not formally indicated on the organizational chart.

Since much innovation arises from experimentation and improvisation, the ________blank organization structure is typically considered better suited for innovation despite its possible detriment to efficiency.

organic