MGT 499 2021 Study Vocab Exam 2 Ji Youn Kim

Which of the following statements about narcissistic CEOs is wrong? - Narcissistic CEOs tend to spend more on advertising. - Narcissistic CEOs tend to be good at dealing with set back - Narcissistic CEOs have a clear vision and show charisma. - Narcissistic CEOs tend to make more merges and acquisitions and continued to make big merge and acquisition deals even if their recent performance has been poor.

- Narcissistic CEOs have a clear vision and show charisma

A drawback of short-term contracting as an alternative to make a component inhouse is that. - firm has no incentives. To make any transactions-specific investments to increase performance or quality.

- firm has no incentives. To make any transactions-specific investments to increase performance or quality.

How is an equity alliance difference from a joint venture? - An equity alliance involves ownership that facilitates transaction-specific ventures; a joint venture involves taking ownership by buying stock. - Alliance involves taking ownership in a partner; a joint venture involves two are more entity owning a firm. - An equity alliance involved partners contributing equity to a joint venture; joint venture involved two more entities owning a firm. - alliance involve taking ownership in a partner; a joint venture, involves taking ownership by and stock

Alliance involves taking ownership in a partner; a joint venture involves two are more entity owning a firm.

Which of the following statements is true about an equity alliance? - An equity alliance creates weaker ties between the alliance partner, which compared to a non-equity alliance.

An equity alliance creates weaker ties between the alliance partner, which compared to a non-equity alliance.

_______ is best describes as an increase in variety of products and services a firm offers or markets and the geographic regions in which it competes.

Diversification

Firms that use taper integration also use _____ when they rely on outside-market firms for some of their supplies. A. backward vertical integration B. forward vertical integration C. backward horizontal integration D. Forward horizontal integration

Backward vertical integration

Which of the following is not a potential advantage of an outsider CEO? - Understanding the organizations' specific issues. - Bring in fresh perspectives. - Seeing solutions that others miss. - Being open to change.

Bring in fresh perspectives.

Which of the following statements about CEO is wrong

CEOs can determine their own compensation

______ are best described as equity investments by large established firms making in entrepreneurial ventures to gain access to novel

Corporate venture Capital investments

Horizontal integration through mergers and acquisitions can help firms strengthen their competitive position by increasing. - Differentiation. - Perfect competition. - Neutral monopoly. - Oligarchy

Differentiation

ElectraSync Inc., a large consumer electronics company, has divided each product in its portfolio into a separate segment strategic business unit (SBU). this has been attributed to the low growth in the desktop market. After the arrival of tablet computers and laptops. In the context of the Boston Consulting Group (BCG) Growth-Share matrix the desktop SBU will be categorized under. -question marks - stars - dogs -cash cows

Dogs

Which alliance type is the Renault-Nissan alliance in which Nissan owns 15 percent of Renault, and renault owns 44.4 percent in Nissan? -Joint Venture - Equity alliance - Non-equity alliance - Greenfield venture

Equitty Alliance

As discussed in class. Kellog experience diversification discount in the Asia-Pacific region with the acquisition Pringles in the global snack industry. True are false?

F

As we discussed in class, Apple as a public company openly advertises their new acquisitions to signal their industry dominance. True or False

F

LG smart phone division is an example of cash called in the BCG growth share matrix True or False

F

Outsider CEOs are more likely to generate higher firm performance than insider CEOs. True or False

F

Research evidence suggests that horizontal accusations of firms with dissimilar characteristics result in higher performance level. True or false?

F

As discussed in class, Hallmark began as a film studio and later acquired television channels to expand into a new industry. True or False

False

Bird acquired an electronic scoter supplier Scoot to access the licenses in the San Francisco market. True and False

False

Inclined electronics relied on a large chain of consumer electronics stores to sell its tablet computers, phone, and televisions and also to provide consumer service and technical support. However, that retailer outsourced its service departments, and consumers began to complain that they could not get reliable tech support for incline products. In response, Incline Electronics decided to set up its own tech support department, and it also began to investigate opening its own brand base retail store. What does this scenario best illustrate?

Forward vertical integration.

Which of the following question does the theory of transaction cost economic seeks to answer. - How does Firm achieve competitive advantage - Should a firm produce in house or outsource -How does firm form strategic alliance with other firms. - How does Farm reduce transaction cost.

How does firm form strategic alliance with other firms.

The Martinez legal Firm (MLF) recently acquired smaller competitor, Miller and Associates, Which specializes in issues not previously covered by MLF, such as land use and intellectual property cases. Given the increase in the firm's size and complexity, it is likely that its internal transaction costs will

Increase

Which of the following is a drawback of vertical integration? - It impedes scheduling and planning. - It impedes investment in special assets. - Increases the difficulty of securing critical supplies. - It may lower the incentives of internal suppliers to improve quality.

It impedes scheduling and planning.

Dow Corning is a newly created company owned by Dow Chemical and corning. This is most likely an example of a(n)_____ - equity alliance. - Sole proprietorship. - None-Equity alliance. - Joint venture.

Joint venture.

Hiku Inc, developed a superior touch screen technology for tablet computers that enabled multiple users to operate the screen at the same time. The technology was leased too Broadway technologies, a consumer electronics company, for five years. Which of the alternatives to integration does this best illustrate?

Licensing

True Tomato Inc. makes organic ketchup. To Promote its products, this firm decided to make bottles in the shape of tomatoes. To accomplish this. True Tomato worked with its manufacture to create a set of unique molds its bottles. Which of the following specialized assets does the example demonstrate?

Physical-asset specificity

Wellmade Manufacturer is a large conglomerate that operates only in its home country. The company competes in industries like the consumer electronics, health care, hotel, airlines, education, and steel industries. Which of the following diversification strategies does this best illustrates?

Product diversification

Best burger is a major fast food chain. Its managers are motivated to grow the firm in order to increase their market power and change the industry structure in their favor. Which of the following strategies is most associated with their motive for growth? - Purchasing competitors.

Purchasing competitors.

The Boston Consulting Group (BCG) growth-shape matrix locates a firm's individual strategic business units (SBUs) in which two dimensions?

Relative market share and speed of market

The smartphone division of large consumer electronics company. True Electra Inc., Has a significant market share in the fast growing cell phone market. If the company invests further into this division, it will be able to reap increased cashflows. In the Boston Consulting Group. (BCG) growth-share matrix, the smartphone division of True Electra will be categorized under. - cash cows - dogs - question mark - stars

Stars

_______ are best described as voluntary arrangements between firms that involve the sharing of knowledge, resources, and capability with the intent of developing processes, products, or service to lead to competitive advantage.

Strategic alliance

As discussed in class, PNG divested several businesses, including DURACELL Battery, and IAMS pet food business to refine its business. True or False

T

Diversification discount is part of the reasons why firms engaging in unrelated diversification are less likely to be profitable than firms engaging in related diversification. True are false

T

Women are more likely to be appointed CEO in Struggling firms. True or Fasle

T

Apple and Nike have their own retail outlets and also use other independent retailers, both the brick-and-mortar type and online, to sell their products. This is an example of A. Monopsony. B. Geographic diversification. C. Crowdsourcing. D. Taper integration.

Taper integration.

Which of the following is an example of an internal transaction cost?

The cost of paying salaries and benefits

Which of the following is an example of an external transaction cost? - The cost of searching for a contract manufacturer - The cost of recruiting and retaining employees - The cost of maintaining plat and machinery - The cost of setting dup a product unit

The cost of searching for a contract manufacturer

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. How will this decision affect the firm. - The firm will have high-powered incentives such as hourly wages and salaries. - The firm will have more flexibility in purchasing and comparing prices of goods and services. - The firm's administrative costs will be low because of necessary bureaucracy. - The firm will be protected against the principal-agent problem.

The firm will have more flexibility in purchasing and comparing prices of goods and services.

Which is NOT a reason for firms to enter strategic alliance?

To achieve economics of scale

As discuss in class, Apple announced that it would not work with intel anymore; instead it would work with AMD for future Mac computers to reduce cost. True or False

True

Decision relating to "what stages of the industry value chain to participate in" determine a firm's

Vertical integration

Gold Leaf computers, sources the components for its laptops from various suppliers on the market. The firm pays $100 for processors, $35 for disk drives, $50.00 for screens, $10 for memory, and $40 for graphics. An wireless Internet cards. Gold leaf has determined that it would cost $200 per unit to produce all the necessary components in its in-house manufacturing facility. In this scenario, go leave should. - Vertically integrate. - Exit the laptop industry. - Continue to outsource production. - Diversify its activities.

Vertically integrate.

A primary advantage of a firms producing in-house is the - low administrative costs because of reduce bureaucracy. - Eradication of the principal-agent problem. - coordinate highly complex tasks to allow for specialized division of Labor. - high-powered incentives to work as salaried employees for an existing firm.

coordinate highly complex tasks to allow for specialized division of Labor.

Which of the following alternatives on the making-or-buying continuum allows for most integration? Licensing short-term contracting joint Ventures parent-subsidiary relationship

parent-subsidiary relationship

PepsiCo sells a wide variety of aerated drinks, other beverages , and different types of chips in many countries period from this data, we can conclude that PepsiCo has been involved in____. - product- market diversification - lean manufacturing - strategic outsourcing - process diversification

product- market diversification

Baby phat kids, a designer and manufacturer of fashionable children's clothing, has decided to purchase a retail chain that specializes in the sale of children's clothing. This purchase is a(n) -vertical acquisition.

vertical acquisition

Anita has been named CEO of a popular sports apparel company as CEO, she is tasked with setting the firms cooperate strategy. Which of the following decision is Anita most likely to make? - whether to presume a differentiation or cost leadership strategy - which customer segments to target - what range of products the firm should offer - how to achieve the highest level of consumer satisfaction

what range of products the firm should offer