Mgmt 352 Final

what was the rationale for Coke or Pepsi to conduct "bottler consolidation"?

because small bottling companies don't have adequate resources

From the concentrate producers' perspective, the bottlers are:

buyers

what is the term Rothaermel uses for when competitors form a strategic alliance for a given project/endeavor?

co-operation

the Coca-Cola company is primarily a:

concentrate producer

What mode of resource growth would the Build, Borrow, Buy model recommend if the resources the firm needs are highly/easily tradable?

contractual alliance

Rothaermel draws from which economic tradition to define where the boundaries of a firm should be drawn:

transactional-cost economics

T/F: Train Partners considered PepsiCo's diverstiture of restaurant businesses in 1997 a successful example of value creating divestiture.

true

t/f: a company's bundle of resources and capabilities need to be different form their competitors' for them to be a source of competitive advantage.

true

What is the process through which Rothaermel suggests pursuing both differentiation and cost leadership?

value innovation

What was the one prototyping experiment Reed Hastings did to test the feasibility of the initial business model?

drove to different locations in California to mail himself CDs to see how fast and in what condition they arrived.

what qualities does a resource need to have to be a source of sustainable competitive advantage according to the VRIO model?

1. valuable 2. costly to imitate

What are the 3 situations that Feldman says indicate a failure of the Better Off Test and would indicate that a divestiture may be appropriate?

1. when certain operations do not fit strategically with the rest of the company 2. when disparities among the company's operations create internal complexity 3. when diversification makes it difficult for external constituents to appropriately value the business in the equity market.

According to Rothaermel, what are the 2 main drivers of economic value creation?

1. willingness to pay 2. cost

according to Rothaermel, which of the following statements are true? 1. platforms have high marginal costs, but low fixed costs 2. when the value of a platform or service increases with the number of users, this is an example of a positive network effect 3. pipeline businesses scale more efficiently than platform businesses 4. platforms enable value-creating interactions between producers and consumers.

2. when the value of a platform or service increases with the number of users, this is an example of a positive network effect 4. platforms enable value-creating interactions between producers and consumers.

who were the 3 main companies that have been major shareholders in Hulu (major meaning 30% ownership or more at any time)?

21st Century Fox Disney NBC Universal

which criteria does the case say Target prioritizes above the others in staffing decisions?

Skills and Culture

from the bottlers' perspective, concentrate producers are:

suppliers

What were the 2 main approaches that Hulu has pursued that differentiated them from Netflix?

1. Advertisements 2. Live Television

Which of the following individuals served as the CEO for Disney?

1. Robert Iger 2. Roy Disney 3. Walt Disney 4. Michael Eisner 5. Robert Chapek

what 2 strategic options did Train Partners recommend to PepsiCo?

1. acquire Mondelez, then spin off the combined snack foods business from the beverage business 2. separate snack foods business and beverage business

When a firm tries to pursue BOTH differentiation and cost leadership, what does Rothaermel identify as the 2 most likely potential resulting strategies?

1. blue ocean strategy 2. stuck in the middle strategy

What does Rothaermel identify as common areas with which a firm would pursue a value differentiation strategy?

1. complements 2. customer service 3. product features

the main types of diversification Rothaermel presents are:

1. dominant business 2. unrelated diversification 3. single business 4. related-linked 5. related-constrained

what does Rothaermel identify as the 4 phases of the innovation process?

1. innovation 2. imitation 3. idea 4. invention

what are the 3 main lines of business for Narayana Hrudaylaya described in the case?

1. insurance program for the poor 2. health city, one-stop shop 3. cardiac surgery

Which of the following are examples of isolating mechanisms that could allow a firm to sustain a resource-based competitive advantage (all that apply)?

1. intellectual property protection 2. causal ambiguity

What does Rothaermel present as the 5 phases of industry lifestyle?

1. introduction 2. decline 3. growth 4. maturity 5. shakeout

Which of the following are a type of industry competitive structure?

1. monopolistic competition 2. perfect competition 3. monopoly 3. Oligopoly

what does Feldman say is often a motivation to engage in a divestiture?

1. one of the firm's businesses operates in an unattractive industry 2. when a company previously undertook an acquisition that underperformed

what does Rothaermel identify as common areas with which a firm would pursue a cost leadership strategy (all that apply)?

1. product features 2. economies of scale 3. learning curve effect 4. experience-curve effects 5. cost of input factors

which of the following are forces in the PESTEL model?

1. technological 2. economic 3. environmental

what were the 2 problems Netflix had with their system of positing editorials on what movies customers should watch on the website's home page?

1. the movies that were promoted were quickly all rented out 2. it took too much staff time and attention to do

What problems did PepsiCo face Train Partners identified as a motivation for their strategic recommendations?

1. the synergies between the beverage and snack foods businesses have not been as strong as management believed they would be 2. there were cultural differences and unnecessary operational complexities caused by including snack foods and beverages together 3. earnings per share (EPS) and EPS growth lagged behind peer companies 4. total shareholder returns for PepsiCo stock lagged behind peer companies.

which of the following are forces in Porter's Five Forces Model?

1. threat of substitutes 2. threat of new entrants 3. bargaining power of suppliers

originally, to cancel a Netflix subscription, a customer had to call a customer service line. Netflix changed this to add an option to unsubscribe on the website. What one rationale for this is given in the case?

Hastings felt that it was the right thing to do and that it would cause less frustration for the customer, increasing their chance of returning in the future.

which of the following companies were either acquired by Disney or were a joint venture Disney was a park of (all that apply)?

Hulu, 21st Century Fox, LucasFilm, ABC, and Marvel

Which famous individual was one of Dr. Shetty's cardiac patients from whom he drew inspiration?

Mother Teresa

What enterprise software did Target attempt to launch Canada with?

SAP

which video game console was the 1st to use authentication technology to lock out unlicensed game developers?

Nintendo NES

Which video game console was the first to offer wireless motion-sensing technology?

Nintendo Wii

Which beverage company owned major restaurant chains as part of their corporation until divesting them as Yum Brands 1997?

PepsiCo

which video game console was the 1st to use CD-ROM?

Playstation 1

which video game console was the first to use removable game cartridges?

Playstation 2

which one framework from our class did Feldman suggest using to decide whether to divest a problematic business?

Porter's 5 Forces

which key partnership helped Netflix with logistics distribution of DVDs to customers?

US Postal Service (USPS)

Which company's retail locations did Target acquire in Canada?

Zeller

What type of entity was Train Partners?

activist shareholder

how did Target acquire the 124 retail locations in Canada?

all at once in a single transaction

what primary conflict or challenge facing Hulu is described in the readings?

an imbalance of ownership after one shareholder acquired another

the case states that Target Canada's early customers were dismayed by:

empty shelves/stockouts

Cica-Cola purchasing bottling companies is primarily an example of:

forward vertical integration

Coca-cola purchasing BODYARMOR is an example of:

horizontal related diversification

what mode of resource growth would the build, borrow, buy model recommend if the firm's existing resource are similar to those the firm needs and are superior to those of competitors?

internal development

Hulu is primarily an example of what type of strategic alliance?

joint venture

what mode of resource growth would the Build, Borrow, Buy model recommend if the resources the firm needs are not easily tradable and a high degree to closeness to the resource partner is required?

merger/acquisition

when managers act on their own behalf rather than that of the owner of the firm, Rothaermel describes this as an example of:

principal-agent problem

What was the one most important key to solving Netflix's issues with stockouts?

putting a filter on the recommendation system so that out of stock movies would not be recommended

what does Rothaermel call a situation where a firm has a strategic alliance with a resource partner, then later acquires that partner?

real option

the "diversification discount" or "conglomerate discount" refers to:

the undervaluing of corporations relative to the sum of their parts.

What was the primary rationale for having multiple payment tiers described in the Narayana Hrudayalaya case?

to use the margin from the higher tier to subsidize patients at the lower tier.

Is it more common for CEOs to be too hasty or too slow to divest businesses?

too slow