MGMT 310 Ch 6-8

Which of the following statements is true about how the portfolio strategy can be used to help managers acquire companies that fit well with the rest of their corporate portfolio?

Risk can be reduced through related diversification (creating or acquiring companies in related businesses).

The ____ is a regional trade agreement that liberalizes trade between countries more than any other such agreement.

North American Free Trade Agreement

Which of the adaptive strategies tends to result in the poorest performance?

reactors

In order from beginning to end, the phases of a technology cycle within an innovation stream consists of

Technological discontinuity, discontinuous change, dominant design, incremental change

The Green Giant consumer products company learned that it could not use their Jolly Green Giant character in parts of Asia where a green hat worn by a man signifies that he has an unfaithful wife. This is an example of a(n) ____ that influenced global marketing.

cultural difference

Kodak is a company name that is associated with photography. The company has recognized that digital photography is a threat to the future growth of the company. Therefore, the company has decided to become a market leader in digital imaging while still providing customer support for people still using film cameras. The existence of both technologies is an example of ____.

design competition

Hohner is a company that manufactures and markets harmonicas, a product with a steady demand rate. It is so successful at what it does that the company controls 85 percent of the world's harmonica industry. In terms of the adaptive strategies, Hohner would most likely be categorized as a(n) ____.

defender

In an attempt to stop declining profitability, ICI, a British chemical company, deleted petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. What type of a grand strategy was ICI using?

retrenchment

A country or region that has an attractive business climate for companies that want to go global has ____.

easy access to growing markets

Companies that are following a ____ strategy would be most likely to try to improve the way in which they sell the same goods or services to the same customers.

stability

Which of the following statements about portfolio strategy is true?

Dysfunctional consequences can occur when companies are categorized.

When the bargaining power of suppliers and buyers is high, companies in the industry will ____.

Find it more difficult to be profitable

Which of the following statements about the strategic reference point theory is true?

None of these statements about the Strategic Reference Point Theory is true

According to Kurt Lewin, _____ lead to differences in the form, quality, or condition of an organization over time, while ____ supports the status quo, or the existing state of conditions in an organization

change forces; resistance forces

Which of the following is NOT one of the basic methods for managing resistance to change?

change simulation

Clorox Corporation controls 60 percent of the bleach market. Imagine you are an entrepreneur who was considering developing and marketing a new brand of bleach. Which of Michael Porter's industry forces should you be most concerned about?

character of the rivalry

While ____ is a problem strongly associated with top managers, ____ is a problem more likely to be associated with middle and lower-level managers.

competitive inertia; strategic dissonance

ARI is a leading provider of sales and profit-building technology services for equipment dealers. When Unverferth Manufacturing, a supplier of agricultural equipment, wanted to change the way it supplied information it contacted ARI. ARI presented the manufacturer with a solution that allowed it to replace its paper catalogs with online catalogs. As a result, Unverferth was able to eliminate costly paper catalogs and gain the ability to provide up-to-the-minute information to its dealers. This incremental change that was aided by supplier involvement was an example of the ____ approach to innovation.

compression

What are the strategies that can be used to minimize or adapt to the political risk inherent to global business?

control, avoidance, and cooperative strategies

Specialized Bicycle Components, Inc. introduced the first major production mountain bike in 1980. Since then, the company has maintained a technological leadership in the production of bike and bike accessories and an organizational culture that encourages innovation. Technological leadership, as well as its organizational culture, are the company's ____.

core capabilities

The primary disadvantage of using wholly owned affiliates as the means of entering a foreign market is ____.

costs

Aveda is a manufacturer and marketer of cosmetics, perfumes, hair-care, and skin-care products. To differentiate its products from other similar brands, Aveda focuses on educating its customers on general skin and hair care. Its salespeople are trained to answer questions and help customers find solutions. Aveda has used customer education and employee training to ____.

create a competitive advantage

Covisint is an e-commerce venture involving many car manufacturers that allows carmakers access to online auctions for buying component parts and materials. Because the idea of such a Web site was a new concept, the prototype site was built and tested, then revised and rebuilt for further testing before the Web site was ever offered to customers. The management concept of ____ was used to develop Covisint.

design iteration

An ad for a major brand of clothes washer reads, "Since our humble beginnings back in 1950, we have been dedicated to building machines with superior cleaning power, reliability, and style." This manufacturer is more than likely using which kind of positioning strategy?

differentiation

When a U.S. automaker learned that it took longer than any other U.S. car manufacturer to assemble a vehicle, it purchased newer, more flexible manufacturing systems to replace its older ones. Which state of the technology cycle did it enter?

discontinuous change

The use of milestones in the experiential approach to innovation

does all of these

Unverferth Manufacturing has been a manufacturer and supplier of innovative agricultural equipment since 1948. Recently it began developing a new 12-row strip-till subsoiler, which prepares 10-inch wide seed beds spaced 40 inches apart. Before introducing the new tiller to themarket, Unverferth developed and tested nearly three-dozen product prototypes. Unverferth used the _____ approach to innovation.

experiential

What is the correct sequence for the phase model of globalization?

exporting; cooperative contracts; strategic alliances; wholly owned affiliates

When Clorox Corporation, the manufacturer of bleach and bleach-based cleaning products acquired Kingsford Charcoal and Prime Choice brand steak sauce; it was an example of _____.

external growth

According to Hofstede's research on cultural dimensions, _____ cultures emphasize the importance of relationships, modesty, caring, for the weak, and quality of life

feminine

The positioning strategies identified by Michael Porter are ____.

focus, cost leadership, and differentiation

Backward compatibility is an important consideration for software users who are using an accounting program to facilitate their tax preparation and who want to use a newer version that has a greater capacity. Therefore, many software companies engage in

generational change

The two major approaches to corporate-level strategy are ____.

grand strategies and the portfolio strategy

patterns of innovation over time that can create sustainable competitive advantage are called

innovation streams

Sodima is a French Cooperative that owns the name, the trade secrets, and the patents on Yoplait yogurt. General Mills pays Sodima for the right to sell Yoplait yogurt in the United States. This is an example of ____

licensing

In terms of Hofstede's cultural differences, the people who are described as happy-go-lucky and are people who are comfortable with an unstructured life and deal well with sudden changes, have a ____.

low degree of uncertainty avoidance

Which of the following approaches is aimed at changing large systems, small groups, or individuals?

organizational development

When Gregg Steiner became the vice president for Cleveland-based Pinxav, he knew the diaper-rash product manufacturer's sales were declining. At a trade show Steiner was pitching the product to some new mothers who had never heard of it. The mothers weren't convinced that they should part with their money for a new-to-them product. The inspired Steiner said, "If you're not happy with the product, I will not only give you your money back, I'll buy you our competitors' product. I'll buy you whatever other brand you want." Suddenly the women were interested, and they all plunked down their money. None of the women ever took Steiner up on his offer. So Steiner decided to make it part of his business practice. This new guarantee was an example of

organizational innovation

Historically, most companies have used the ____ to successfully enter foreign markets.

phase model of globalization

The first step in the compression approach to innovation is ____.

planning

Starbucks is expanding its global operations into South America in spite of the real probability of civil wars and terrorist activities in many of the continent's nations. As Starbucks expands into South America, it must deal with ____.

political uncertainty

Which of the following is a trend that has allowed companies to skip the phase model when going global?

quick, reliable air travel

from buying raw materials to processing purchase orders to marketing the roughly 2,000 products that make up its nearly 200 brands. Employees worked to "Make e-business the way we do business." Nestle USA used ____ change to reinvent the company.

results-driven

Top-Flite manufactures Strata golf balls and prices these balls at about three times what ordinary golf balls cost. The Strata ball sells exceptionally well because customers perceive its patented three-layer construction to improve handling and increase distance. The patent on these golf balls gives Top-Flite a(n) ____.

sustainable competitive advantage

As Malta got ready for its admittance into the European Union (EU), the EU removed all taxes on the importation of goods manufactured in Malta. In other words, the EU abolished ____ for Malta-manufactured merchandise

tariffs

When a merger of South Carolina-based Springs Industries with the Brazilian textile producer Coteminas was announced, the CEO of Springs was quoted as saying, "It is unclear what effect this move will have on our employees though no immediate layoffs are planned. There may be some in the future." In this stage of the organizational change, ____ the CEO should use empathy and communicate specific details of the merger.

unfreezing

Which of the following factors helps a company determine the growth potential of a foreign market?

purchasing power

In an attempt to stop declining profitability, ICI, a British chemical company, deleted petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. If ICI is successful in making the needed changes, it will more than likely implement a ____ strategy.

recovery

The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the:

World Trade Organization

As direct competitors, UPS and FedEx would have _____

a high degree of market commonality

Which of the following forms of organizing a global business help companies to avoid tariff and nontariff barriers to entry of a given foreign market?

all of these

Which of the following is a component of a creative work environment that encourages creativity?

all of these

the typical S-curve pattern of innovation, increased effort (i.e., money, research and development) brings only small improvements in technological performance

at both the beginning and end of the cycle

in the typical S-curve pattern of innovation, small amounts of effort will result in significant increases in performance

at the midpoint of the cycle

Tom Valerio was the point man on a major push to reinvent CIGNA Property & Casualty. His vision for CIGNA was to become a top-quartile, specialist property and casualty company. It was a radical proposition. Valerio was a(n) ____.

change agent

According to John Kotter, which of the following actions will adversely influence refreezing efforts

declaring victory too soon

While ____ are tangible, ____ are not.

distinctive competencies; core capabilities