review

Top managers at USA Today meet every Friday to review daily operational reports and year-to-date data. This is an example of A) behavioral control. B) informational control. C) strategy formulation. D) strategy implementation.

B) informational control.

which of the following is not a common new wentry strategy according to the text? proactive new entry

proactive new entry

Corporate-level strategy addresses two related issues: A) how to compete in a given business; the application of technology. B) what businesses to compete in; how these businesses can achieve synergy. C) how to integrate primary activities; increase shareholder wealth. D) how to improve a firm's infrastructure; how to maintain ethical behavior.

what businesses to compete in; how these businesses can achieve synergy.

Which of the following is not an advantage of teams? A) because teams interact so closely, coordination and integration becomes unnecessary. B) teams substitute peer-based control for hierarchical control of work. C) because of sharing, teams often develop more creative solutions. D) teams permit the absorption of administrative tasks previously performed by specialists.

A) because teams interact so closely, coordination and integration becomes unnecessary.

Low pressure for local adaptation combined with low pressure for lower costs would suggest what type of strategy? A) international. B) global. C) multidomestic. D) transnational.

A) international.

Portfolio management frameworks (e.g., BCG matrix) share which of the following characteristics? A) Grid dimensions are based on external environments and internal capabilities/market positions. B) Businesses are plotted on a 3-dimensional grid. C) Position in the matrix suggests a need for, or ability to share, infrastructures or build on core competences. D) They are most helpful in helping businesses develop types of competitive advantage.

A) Grid dimensions are based on external environments and internal capabilities/market positions.

In the opening case, Polaroid was forced to declare bankruptcy after 30 years of strong financial performance. What was the fundamental problem that led to Polaroid's downfall? A) It overestimated the value of its core business. B) Its innovations were considered too radical. C) It was unwilling to borrow funds to invest in innovation. D) All of the above.

A) It overestimated the value of its core business.

_________ is when a firm's corporate office helps subsidiaries make wise choices in their own acquisitions, divestures, and new ventures. A) Parenting B) Restructuring C) Leveraging core competencies D) Increasing market power

A) Parenting

All of the following are ways that Internet technologies are being used to enhance an overall cost leadership strategy except: A) Quick online responses to service requests and rapid feedback to customer surveys and product promotions are enhancing marketing efforts. B) Direct access to progress reports and the ability for customers to periodically check work-in-progress is minimizing rework. C) Online bidding and order processing are eliminating the need for sales calls and minimizing sales force expenses. D) Online purchase orders are making many transactions paperless, reducing the costs of procurement and paper.

A) Quick online responses to service requests and rapid feedback to customer surveys and product promotions are enhancing marketing efforts.

The difference between a franchise and licensing contract is that A) a franchise contract is more specific and usually longer in duration. B) a franchise contract must include a foreign government. C) a licensing contract covers more aspects of operations. D) a franchise contract involves less control and less risk.

A) a franchise contract is more specific and usually longer in duration.

McKesson, a large distribution company, sells many product lines such as pharmaceuticals and liquor through its superwarehouses. This is an example of A) achieving economies of scope through related diversification. B) achieving market power through related diversification. C) attaining the benefits of restructuring through unrelated diversification. D) attaining the benefits of parenting through unrelated diversification.

A) achieving economies of scope through related diversification.

The "traditional" approach to strategic control is sequential. Which of the following is not one of the steps in the sequence? A) action plans are submitted by lower level managers. B) performance is measured against the predetermined goal. C) strategies are implemented. D) strategies are formulated and top management sets goals.

A) action plans are submitted by lower level managers.

Effective short-term objectives have all of the following priorities except A) an emphasis on "do your best" goals. B) being achievable yet challenging. C) providing a specific time horizon for their attainment. D) being specific and measurable.

A) an emphasis on "do your best" goals.

Private individual who provide seed capital to young ventures are known as A) angels B) gazelles C)cash cows D)rising stars

A) angels

External control mechanisms include all of the following except A) auditors. B) analysts. C) competitors. D) the market for corporate control.

A) auditors.

Complete the following sentence: "As firms simultaneously downsize and face the need for increased coordination across organization boundaries, a control system based primarily on ________________________________is dysfunctional." A) boundaries and constraints B) culture and rewards C) organizational loyalty D) innovation and risk taking

A) boundaries and constraints

Technical Computer Graphics uses small project teams and forms alliances with its teams, customers, and suppliers to accomplish projects. This is an example of A) combining forms of organizational structure. B) outsourcing. C) horizontal systems and processes. D) democratic management control.

A) combining forms of organizational structure.

Recent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations would include all of the following except A) customers' needs, interests, and tastes are becoming increasingly homogenized or similar. B) consumers around the world are increasingly willing to trade off idiosyncratic preferences in product features for lower price. C) flexible manufacturing trends have allowed a decline in the minimum volume required to reach acceptable levels of production efficiency. D) fluctuating exchange rates.

A) customers' needs, interests, and tastes are becoming increasingly homogenized or similar.

It is generally argued that the takeover constraint A) deters management from engaging in opportunistic behavior. B) deters management from considering acquiring other companies. C) deters management from declaring dividends. D) deters management from increasing a firm's level of borrowing.

A) deters management from engaging in opportunistic behavior.

The innovation dilemma known as building capabilities versus collaborating refers to A) developing innovation skills internally versus partnering with qualified outsiders. B) building innovative products in-house versus outsourcing. C) building credibility by launching products ahead of potential collaboration partners. D) all of the above.

A) developing innovation skills internally versus partnering with qualified outsiders.

Which of the following is a disadvantage of a functional type of organizational structure? A) differences in functional orientation may impede communication and coordination. B) use of managerial and technical talent is inefficient due to pooling of expertise in functional areas. C) decision making is centralized at the top of the organization. D) managers tend to be overly concerned with long-term strategies that minimize the importance of functional area strengths

A) differences in functional orientation may impede communication and coordination.

Which of the following is not a disadvantage of virtual structures? A) difficulty in individual and organizational knowledge sharing. B) potential loss of operational control among partners. C) loss of strategic control over emerging technology. D) difficulty in determining where one company ends and another begins due to close interdependencies.

A) difficulty in individual and organizational knowledge sharing.

Strategic business unit (SBU) and holding company structures result from extensive A) diversification. B) vertical integration. C) international expansion. D) organizational flattening.

A) diversification.

A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to a(n) A) divisional structure. B) functional structure. C) matrix structure. D) international structure.

A) divisional structure.

The benefits of continuous monitoring include A) enhancing the organization's ability to respond with speed and flexibility. B) replacing the time-consuming process of organizational learning. C) dramatically altering the organization's response to its competitive environment. D) all of the above

A) enhancing the organization's ability to respond with speed and flexibility.

The 3M Corporation, one of the most highly innovative companies, uses several approaches and "rules-of-thumb" to encourage innovation. Which of the following is not one of them? A) ensure that all risk-taking activities have a financial pay-off within one year. B) encourage experimentation and risk-taking by tolerating failure. C) reward the champions of successful new product ideas. D) invite customers to brainstorm about new product concepts.

A) ensure that all risk-taking activities have a financial pay-off within one year.

According to the text, firms that want to enhance their entrepreneurial position by being competitively aggressive should A) enter markets with drastically lower prices. B) foster creativity and experimentation. C) continuously seek out new products or services. D) research risk factors to minimize uncertainty.

A) enter markets with drastically lower prices.

All of the following would be viewed as advantages of global diversification except A) fewer social and political risks than domestic operations. B) a firm not being solely dependent on the domestic market. C) a firm with large margins at home helping subsidize its operations in other nations. D) the potential to lower costs of operation even if the primary market is at home.

A) fewer social and political risks than domestic operations.

Functional structures are usually found in organizations where there is A) high volume production. B) unrelated product lines or service offerings. C) very little vertical integration. D) a strong need to decentralize decision making.

A) high volume production.

All of the following are questions that should be answered when evaluating the performance of corporate venturing efforts except A) is the venture attracting external venture funding? B) is the venture considered to be a market success? C) does the venture add to the worth of the firm internally? D) does the value proposition offered by the venture insulate it from competitive attack?

A) is the venture attracting external venture funding?

If the market value of a firm becomes less than its book value, A) it becomes an attractive takeover target. B) the firm will be delisted by the stock exchange. C) the Securities and Exchange Commission will not allow it to declare dividends until the market value once again exceeds the book value. D) the firm will be unable to service its debt.

A) it becomes an attractive takeover target.

Juno.com became the third largest Internet service provider by offering free email service, but eventually had to stop this practice because of what potential pitfall: A) it offered the free service to build market share but then could not sustain the low-cost strategy. B) it copied a close competitor and was in danger of being sued. C) it let others aspects of its business slip because it was overly focused on selling advertising to support the free e-mail service. D) by offering the service for free it forfeited its bargaining power over suppliers.

A) it offered the free service to build market share but then could not sustain the low-cost strategy.

All of the following statements about innovativeness are true except A) it refers to making decisions and taking risks without certain knowledge of probable outcomes. B) it refers to a firm=s efforts to find new opportunities and novel solutions. C) it involves creativity and experimentation. D) it is aimed at developing new products, services, and processes.

A) it refers to making decisions and taking risks without certain knowledge of probable outcomes.

A "cash cow," referred to in the Boston Consulting Group Portfolio management technique, refers to a business that has A) low market growth and relatively high market share. B) relatively low market share and low market growth. C) relatively low market share and high market growth. D) high market growth and relatively high market share.

A) low market growth and relatively high market share.

In firms with overall low cost strategies, the culture should foster ________ levels of interdependence and rewards should be based primarily on _____________ measures of output. A) low, financial B) low, behavioral C) high, financial D) high, behavioral

A) low, financial

In firms with unrelated diversification strategies, the culture should foster ________ levels of interdependence and rewards should be based primarily on _____________ measures of output. A) low, financial B) low, behavioral C) high, financial D) high, behavioral

A) low, financial

It may be advantageous to vertically integrate when A) lower transaction costs and improved coordination are vital and achievable through vertical integration. B) the minimum efficient scales of two corporations are different. C) flexibility is reduced, providing a more stationary position in the competitive environment. D) various segregated specializations will be combined.

A) lower transaction costs and improved coordination are vital and achievable through vertical integration.

The three primary means by which a firm can diversify are: A) mergers and acquisitions; joint ventures and strategic alliances; internal development B) mergers and acquisitions; differentiation; overall cost leadership C) joint ventures and strategic alliances; integration of value chain activities; acquiring human capital. D) mergers and acquisitions; internal development; differentiation.

A) mergers and acquisitions; joint ventures and strategic alliances; internal development

Internet business models A) outline methods that online businesses use to create value. B) cannot be used by traditional businesses. C) outline specific actions a firm needs to take to be profitable. D) cannot be combined to create additional competitive advantages.

A) outline methods that online businesses use to create value.

Which of the following dimensions of entrepreneurial orientation is described as "a forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities"? A) proactiveness B) risk taking C) autonomy D) competitive aggressiveness

A) proactiveness

Whereas ________________________ are often associated with a low cost leader strategy, ____________________________ are frequently an important aspect of a differentiation strategy. A) process innovations, product innovations B) product innovations, service innovations C) radical innovations; instrumental innovations D) marketing innovations; management innovations

A) process innovations, product innovations

Important advantages of a holding company structure include A) savings in personnel and overhead expenses associated with a small corporate office. B) a high level of awareness at the corporate office of issues facing individual divisions. C) a high level of control of division executives by executives at the corporate level. D) gaining synergistic benefits across businesses.

A) savings in personnel and overhead expenses associated with a small corporate office.

Common features of a dispersed approach to corporate entrepreneurship include all of the following except A) semi-autonomous new venture groups. B) a strong spirit of entrepreneurship. C) a top-down approach to supporting entrepreneurial behavior. D) an entrepreneurial culture.

A) semi-autonomous new venture groups.

-------- provides a key avenue for growth for many young and small firms through partnering to obtain resources and expand into new markets A) strategic alliances

A) strategic alliances

Sharing core competencies is one of the primary potential advantages of diversification. In order for diversification to be most successful, it is important that A) the similarity required for sharing core competencies must be in the value chain, not in the product. B) the products use similar distribution channels. C) the target market is the same, even if the products are very different. D) the methods of production are the same.

A) the similarity required for sharing core competencies must be in the value chain, not in the product.

Which of the following is not one of the functions of reward and incentive systems: A) they represent a poor means of influencing an organization's culture. B) they focus efforts on high-priority tasks. C) they motivate high levels of individual and collective task performance. D) they represent an effective control mechanism.

A) they represent a poor means of influencing an organization's culture.

Vertical integration is attractive when A) transaction costs are higher than internal administrative costs. B) internal administrative costs are higher than transaction costs. C) transaction costs and internal administrative costs are equal. D) search costs are higher than monitoring costs.

A) transaction costs are higher than internal administrative costs.

The sum total of all expenses associated with conducting business are known as A) transaction costs. B) historical costs. C) opportunity costs. D) operating expenses.

A) transaction costs.

Software Tech, Inc., a company in the computer software industry, invests heavily in R&D and product design. Thus, most of its value is added A) upstream. B) in its infrastructure. C) downstream. D) midstream.

A) upstream.

The boundaries between levels in an organization's hierarchy are known as A) vertical boundaries. B) horizontal boundaries. C) external boundaries. D) geographic boundaries.

A) vertical boundaries.

Which of the following boundaries exist between the functional areas of an organization? A) vertical boundaries B) horizontal boundaries C) external boundaries D) all of the above

B) horizontal boundaries

When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a A) divisional structure. B) functional structure. C) product-market structure. D) geographic structure.

B) functional structure.

The reasons analyst recommendations are often more optimistic than warranted by an objective analysis of a firm's prospects include all of the following except A) many analysts fail to grasp the gravity of the problems facing a company. B) "sell" recommendations generate lower commissions than buy recommendations. C) the firms for which analysts work may have lucrative investment banking relationships with the firm. D) analysts are often pressured by their superiors to overlook negative information or tone down their criticisms of the firms they analyze.

B) "sell" recommendations generate lower commissions than buy recommendations.

Which of the following statements regarding internal development as a means of diversification is false: A) Many companies use internal development to extend their product lines or add to their service offerings. B) An advantage of internal development is that it is generally faster than other means of diversification and firms can benefit from speed in developing new products and services. C) The firm is able to capture the wealth created without having to "share the wealth" with alliance partners. D) Firms can often develop products or services at a lower cost if they rely on their own resources instead of external funding.

B) An advantage of internal development is that it is generally faster than other means of diversification and firms can benefit from speed in developing new products and services.

Internet-based venues that draw business buyers and sellers together in one virtual space where participants can reach new customers and reduce transaction costs are known as A) browsers. B) E-marketplaces. C) cyberstores. D) portals.

B) E-marketplaces.

___________ may be time consuming and, therefore, firms may forfeit the benefits of speed that growth through _________ and __________ can provide. A) Strategic alliances; joint ventures, internal development B) Internal development; mergers; acquisitions C) Strategic alliances; mergers; joint ventures D) Mergers; internal development; strategic alliances

B) Internal development; mergers; acquisitions

____________ entail the creation of a third-party legal entity, whereas __________ do not. A) Licensing agreements, joint ventures B) Joint ventures; strategic alliances C) Strategic alliances; joint ventures D) Franchising agreements; strategic alliances

B) Joint ventures; strategic alliances

_______ is when a firm tries to find and acquire either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change. A) Parenting B) Restructuring C) Leveraging core competencies D) Sharing activities

B) Restructuring

All of the following are ways that Internet technologies are being used to enhance a differentiation strategy except: A) Internet-based knowledge management systems that link all parts of the organization are shortening response times and accelerating organization learning. B) Virtual organizing and online "officing" are being used to minimize firm infrastructure requirements and lower costs. C) Online access to real-time sales and service information is being used to empower the sales force and continually update R&D and technology development efforts. D) Automated procurement and payment systems provide both suppliers and customers with access to detailed status reports and purchasing histories.

B) Virtual organizing and online "officing" are being used to minimize firm infrastructure requirements and lower costs.

Pressures to "reduce costs" require that A) a company should not trade idiosyncratic preferences in product features for higher economic returns. B) a company must pursue what is economically beneficial to the company including maximizing economies of scale and learning curve effects. C) the manager should follow a multidomestic strategy to maximize the economic benefits to the company. D) the company needs to supplement the local foreign economy in a manner specified by the local government.

B) a company must pursue what is economically beneficial to the company including maximizing economies of scale and learning curve effects.

An antitakeover tactic in which existing shareholders have the option to buy additional shares of stock at a discount to the current market price is called ___________. A) greenmail B) a poison pill C) a golden parachute D) scorched earth

B) a poison pill

Units coordinate their activities with headquarters and with one another, units adapt to special circumstances only they face, and the entire organization draws upon relevant corporate resources. These are all attributes of which type of strategy? A) a global strategy B) a transnational strategy C) an international strategy D) a multidomestic strategy

B) a transnational strategy

An antitakeover tactic called (a) ___________ is when a firm offers to buy shares of their stock from a company planning to acquire their firm at a higher price than the unfriendly company paid for it. A) golden parachute B) greenmail C) poison pill D) scorched earth

B) greenmail

Which of the following statements about action plans is true? A) action plans, though specific, should permit a degree of autonomy to managers and not be constrained by budgets. B) action plans must be specific so that managers will have a clear understanding of the resource requirements necessary to implement the plan. C) action plans should not be constrained by a time frame in order to allow for modification. D) although managers must be held accountable for implementing action plans, this accountability often erodes the managers motivation to implement the plan on a timely basis.

B) action plans must be specific so that managers will have a clear understanding of the resource requirements necessary to implement the plan.

Individual investors are dependent upon the corporation's managers to A) diversify the stockholder's investments in order to reduce risk. B) add value to their investments in a way that the stockholders could not accomplish on their own. C) achieve risk reduction at a lower cost than stockholders could obtain on their own. D) maximize short-term returns in the form of dividends.

B) add value to their investments in a way that the stockholders could not accomplish on their own.

which of the following is Not on of the characteristics of an entrepreneurial opportunity A) attractive. B) affordable. C) achievable. D) value creating

B) affordable.

Which of the following is an advantage of a divisional type of organizational structure? A) efficient use of managerial and technical talent B) an enhanced ability to respond quickly to changes in the external environment C) high degree of emphasis on long term performance D) uniformity in image and quality across divisions

B) an enhanced ability to respond quickly to changes in the external environment

According to the text, ________________________ which support fledgling startups are often used to pursue specific entrepreneurial ventures developed by _________________________. A) collaboration partners; strategic partners B) business incubators; new venture groups C) product champions; corporate venture capitalists D) lower-level managers; upper-level managers

B) business incubators; new venture groups

Philip Morris bought Miller Brewing and used its marketing expertise to improve Miller's market share. This justification for diversification is best described as A) utilizing common infrastructures. B) capitalizing on core competencies. C) reducing corporate risk. D) using portfolio analysis.

B) capitalizing on core competencies.

In the 1990s, DuPont used its knowledge of plastics to develop biodegradable plastic products. This is an example of A) focusing on process rather than product innovation. B) defining its innovation efforts within the context of its "strategic envelope." C) radical innovation. D) public relations since plastics are not biodegradable.

B) defining its innovation efforts within the context of its "strategic envelope."

Project ____________ involves justifying whether an opportunity is attractive in the marketplace ; project ______________ involves evaluating the strategic and economic impact of a new venture. A) impetus, definition B) definition, impetus C) reward, development D) development, focus

B) definition, impetus

When an organization with a functional structure diversifies into related product-markets, it generally A) maintains its functional structure. B) develops a divisional structure. C) develops a matrix structure. D) develops a worldwide product-division structure.

B) develops a divisional structure.

The sale of Boeing's commercial aircraft and Microsoft's operating systems in many countries enable these companies to benefit from A) higher prices in their domestic markets. B) economies of scale. C) optimizing the location for many activities in their value chain. D) reducing their exposure to currency risks.

B) economies of scale.

All of the following are dilemmas faced by corporations trying to manage the innovation process except A) launching incremental rather than "pre-emptive" innovations. B) emphasizing marketing over management innovations. C) preferring experience over initiative. D) choosing internal rather than external staffing.

B) emphasizing marketing over management innovations.

Rule-based controls are most appropriate in organizations with all of the following characteristics except A) environments are stable and predictable. B) employees are highly skilled and independent. C) consistency in product or service. D) the risk of malfeasance is extremely high.

B) employees are highly skilled and independent.

Which of the following is not one of the ways the Internet is lowering transaction costs A) eliminating supply chain intermediaries. B) evaluating employee performance. C) minimizing office expenses. D) reducing business travel.

B) evaluating employee performance.

A manager whose role is to question the viability of corporate venture projects is know as a(n) A) product champion. B) exit champion. C) rising star. D) mentor

B) exit champion.

Which of the following describes the most typical order of entry into foreign markets? A) franchising, licensing, exporting, joint venture, and wholly owned subsidiary B) exporting, licensing, franchising, joint venture, and wholly owned subsidiary C) licensing, exporting, franchising, joint venture, and wholly owned subsidiary D) exporting, franchising, licensing, joint venture, and wholly owned subsidiary

B) exporting, licensing, franchising, joint venture, and wholly owned subsidiary

Which kind of risk taking requires that a company borrow heavily or commit a large portion of its resources in order to grow? A) business risk taking B) financial risk taking C) personal risk taking D) technological risk taking

B) financial risk taking

At Sharp Corporation, work is divided into units that specialize in production, marketing, research and development, and other management tasks. This is an example of a A) simple structure. B) functional structure. C) divisional structure. D) matrix structure.

B) functional structure.

In corporations with a strong entrepreneurial culture, the willingness and ability to change A) is imposed from the top down. B) is considered a core capability. C) often leads to instability. D) often worries stakeholders such as suppliers and creditors.

B) is considered a core capability.

Informational control systems ask A) is the organization "doing things right"? B) is the organization "doing the right things"? C) whether rules and regulations are being followed as information is processed? D) is the organization's environment a necessary and sufficient condition for success?

B) is the organization "doing the right things"?

The value-adding activity known as problem-solving A) involves streamlining operations. B) is typically used in the context of providing unique services. C) refers to comparing the costs and benefits of various options. D) creates access to products' ratings and price comparisons.

B) is typically used in the context of providing unique services.

The late Sam Walton, founder of Wal-Mart, used to give pep rallies at local Wal-Mart stores. What purpose did this serve? A) it was used to remind employees of Wal-Marts rules and regulations. B) it helped reinforce and sustain Wal-Mart's culture. C) it demonstrated to employees the importance of articulating explicit goals and objectives. D) it made Wal-Mart's reward system very explicit.

B) it helped reinforce and sustain Wal-Mart's culture.

Pets.com spent an enormous sum promoting its brand but eventually closed during the dot-com downturn. Which of the following was not one of the reason Pets.com failed: A) it was based on a faulty business model with overly thin margins. B) it overextended its focus on a market niche and tried to appeal to an overly broad audience. C) despite its efforts, the Pets.com marketing campaign was ill-conceived and did not create name recognition. D) its strategy was based on a value proposition that customers did not value.

B) it overextended its focus on a market niche and tried to appeal to an overly broad audience.

Managerial opportunism can take all of the following forms except A) shirking. B) job-hopping. C) on the job consumption. D) excessive product diversification.

B) job-hopping.

The risks of vertical integration include all of the following except A) costs and expenses associated with increased overhead and capital expenditures. B) lack of control over valuable assets. C) problems associated with unbalanced capacities along the value chain. D) additional administrative costs associated with managing a more complex set of activities.

B) lack of control over valuable assets.

A simple structure is characterized by A) high specialization and low centralization. B) low specialization and high centralization. C) low formality and low creativity. D) high formality and low centralization.

B) low specialization and high centralization.

Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of what type of organizational structure? A) divisional B) matrix C) holding company D) functional

B) matrix

According to Michael Porter: "There's a tremendous allure to _______________. It's the big play, the dramatic gesture. With one stroke of the pen you can add billions to size, get a front page story, and create excitement in markets." A) strategic alliances and joint ventures B) mergers and acquisitions C) internal development D) differentiation strategies

B) mergers and acquisitions

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy: A) global B) multidomestic C) transnational D) overall cost leadership

B) multidomestic

One of the reasons the Internet is eroding sustainable competitive advantages is A) incumbent firms are entering market segments that they previously considered to be too small. B) nearly all competitors will have greater access to tools for managing costs making it hard for any one to achieve an advantage. C) differentiators have been able to preserve the unique advantages that have always been the hallmark of their success. D) firms are ignoring opportunities to offer high-end services in niche markets.

B) nearly all competitors will have greater access to tools for managing costs making it hard for any one to achieve an advantage.

Financial reasons for undertaking internal corporate venturing include A) strengthening competitive position. B) obtaining above average returns C) adding to the corporation's resource base D) all of the above

B) obtaining above average returns

Radical innovations A) often result in quick profits. B) often represent technological breakthroughs. C) usually apply to products and processes simultaneously. D) usually cannot be patented.

B) often represent technological breakthroughs.

Examples of value-adding content often found on websites include all of the following except A) customer feedback. B) online shopping. C) expertise. D) entertainment programming.

B) online shopping.

What is the name of the practice that many modular organization use to grow? A) operational effectiveness B) outsourcing C) strategic leveraging D) strategic enabling

B) outsourcing

Sony Corporation's mission statement says, "We should always be the pioneers with our products -- out front leading the market." This is an example of A) innovativeness. B) proactiveness. C) competitive aggressiveness. D) autonomy.

B) proactiveness.

Firms competing on the basis of cost must monitor and control costs and manage standardized and structured tasks. Therefore, A) rewards should primarily be based on the quality of outputs. B) procedures can be used to specify the basic components of each task. C) innovation and creativity is necessary and frequent. D) frequent changes in the product process are needed to meet specifications.

B) procedures can be used to specify the basic components of each task.

n the BCG (Boston Consulting Group) Matrix, a business that has a low market share in an industry characterized by high market growth is termed a A) star. B) question mark. C) cash cow. D) dog.

B) question mark.

To evaluate whether to get into automobile sales, Wal-Mart recently invested in just four auto sales operations on a trial basis to assess consumer reaction. According to the text, this action reflects a form of A) bottom-up corporate venturing. B) real options logic. C) financial planning. D) environmental scanning.

B) real options logic.

All of the following are guidelines for managing strategic alliances except A) establishing a clear understanding between partners. B) relying primarily on a contract to make the joint venture work. C) not shortchanging your partner. D) working hard to ensure a collaborative relationship between partners.

B) relying primarily on a contract to make the joint venture work.

When management uses common production facilities or purchasing procedures to distribute different but related products, they are A) building on core competencies. B) sharing activities. C) achieving process gains. D) using portfolio analysis.

B) sharing activities.

A company offering local telecommunications service combines resources with an international company that manufactures digital switching equipment to research a new type of telecommunications technology. This is an example of A) joint diversification. B) strategic alliance. C) divestment. D) global integration.

B) strategic alliance

Generally speaking, discussions of the relationship between strategy and structure strongly imply that A) strategy follows structure. B) structure follows strategy. C) strategy can effectively be formulated without considering structural elements. D) structure typically has a very small influence on a firm's strategy.

B) structure follows strategy.

All of the following are limitations of a global strategy except A) limited ability to adapt to local markets. B) the ability to locate activities in optimal locations. C) the concentration of activities may increase dependence on a single facility. D) single locations may lead to higher tariffs and transportation costs.

B) the ability to locate activities in optimal locations.

As in the case of Siebel Systems, elements of a global strategy may facilitate the competitive advantage of differentiation by A) increased freedom of individual business units to adapt to local tastes. B) the creation of a worldwide network to achieve consistent service regardless of location. C) flexibility in applying R&D to meet country-specific needs. D) tailoring products to meet country-specific needs.

B) the creation of a worldwide network to achieve consistent service regardless of location.

Options exist when the owner of the option has A) the obligation, but not the right to engage in a transaction. B) the right, but not the obligation to engage in a transaction. C) the right and obligation to engage in a transaction. D) neither the right, not the obligation to engage in a transaction.

B) the right, but not the obligation to engage in a transaction.

All of the following are characteristics of effective reward and incentive systems except: A) performance measures are clear and highly visible. B) the structure is fixed to assure employees of consistency. C) the compensation system is perceived as fair and equitable. D) objectives are well understood, and broadly accepted.

B) the structure is fixed to assure employees of consistency.

Microsoft decided to establish a corporate research laboratory in Cambridge, England A) because England is an ally of the United States. B) to access the outstanding technical and professional talent available there so that they can attain world-class excellence in selected value-creating activities. C) because the local language is English. D) because the company views the United States as a risky place to expand due to the actions of the U.S. Department of Justice.

B) to access the outstanding technical and professional talent available there so that they can attain world-class excellence in selected value-creating activities.

For businesses facing complex and turbulent business environments A) goals and objectives that are uncertain prevent opportunism. B) traditional strategic controls are usually inappropriate. C) complacency about predetermined milestones can prevent adaptability. D) detailed plans are needed to maintain order.

B) traditional strategic controls are usually inappropriate.

If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is A) worldwide functional. B) worldwide product division. C) worldwide matrix. D) international division.

B) worldwide product division.

According to the text, for an entrepreneurial start-up to be successful , three ingredients are critical . what are they? A. good ideas, a team of investors, and a business plan. B. a viable opportunity, available resources, and a qualified and motivated founding team. C. an opportunity, a marketing plan, and office space. D. management, marketing ,and money.

B. a viable opportunity, available resources, and a qualified and motivated founding team.

In managing a firm's portfolio, the BCG matrix would suggest that A) "dogs" should be invested in to increase market share and become cash cows. B) "stars" are in low growth markets and can provide excess cash to fund other opportunities. C) "question marks" can represent future "stars" if their market share is increased. D) "cash cows" require substantial cash outlays to maintain market share.

C) "question marks" can represent future "stars" if their market share is increased.

On average, approximately what percentage of corporate ventures reach profitability after six years? A) 80 percent B) 65 percent C) 50 percent D) 35 percent

C) 50 percent

In the opening case, Polaroid fell victim to the "innovator's dilemma." What does this refer to? A) Excessive borrowing in order to develop more radical innovations. B) Whether to innovate radically or incrementally. C) Becoming preoccupied with meeting current market needs and ignoring future innovation needs. D) Conflict over how to integrate product and process innovations.

C) Becoming preoccupied with meeting current market needs and ignoring future innovation needs.

__________ reflect the collective learning in organizations such as how to coordinate production skills, integrate multiple streams of technologies, and market and merchandise diverse products and services. A) Primary value chain activities B) Culture C) Core competencies D) Horizontal integration

C) Core competencies

All of the following are ways that Internet technologies are being used to enhance a focus strategy except: A) Permission marketing techniques are focusing sales efforts on specific customers who opt to receive advertising notices. B) Niche portals that target specific groups are providing advertisers with access to viewers with specialized interests. C) Human resources departments are using online testing and evaluation techniques in the hiring process and online training after they hire. D) Procurement technologies that use Internet software to match buyers and sellers are highlighting specialized buyers and drawing attention to smaller suppliers.

C) Human resources departments are using online testing and evaluation techniques in the hiring process and online training after they hire.

All of the following are examples of Internet business models except A) Referral-based model B) Subscription-based model C) Prescription-based model D) Production-based model

C) Prescription-based model

_______________________________ refers to efforts to create designs and applications of technology to develop new products; _______________________ refers to efforts to improve the efficiency of organizational systems such as manufacturing and operations. A) Radical innovation; incremental innovation B) Breakthrough innovation; instrumental innovation C) Product innovation, process innovation D) Product innovation, service innovation

C) Product innovation, process innovation

Real options analysis is most appropriate when A) the total investment required is small, but the environment is uncertain. B) the investment required can be justified by Discounted Cash Flow (DCF) techniques. C) a small investment upfront can be followed by a series of subsequent investments. D) there is no prospect of obtaining additional knowledge before making subsequent investments.

C) a small investment upfront can be followed by a series of subsequent investments.

which of the following terms is used to refer to opportunities that are practical and physically possible? A) durable B) valuable C) achievable D) sustainable

C) achievable

Incremental innovations A) are usually highly disruptive. B) usually represent technological breakthroughs. C) are usually small improvements in products or processes. D) nearly always can be patented.

C) are usually small improvements in products or processes.

Which of the following approaches to behavioral strategic control should be utilized least in an organization in which there is a great need for innovation and a high degree of autonomy? A) culture B) rewards C) boundaries D) all of the above are equally important

C) boundaries

Two common forms of a focused approach to corporate entrepreneurship include A) internal collaboration and internal venturing. B) social capital and collaboration capital. C) business incubators and new venture groups. D) focus groups and business incubators.

C) business incubators and new venture groups.

How do infomediaries and consumer information websites increase the intensity of competitive rivalry: A) by shifting customers attention away from issues of price. B) by making competitors in cyberspace seem less equally balanced. C) by consolidating the marketing message that consumers use to make a purchase decision to a few key pieces of information that the selling company has little control over. D) by highlighting a firms unique selling advantages.

C) by consolidating the marketing message that consumers use to make a purchase decision to a few key pieces of information that the selling company has little control over.

Top executives who support the view that employees should "do as I say, not as I do" A) are simply demonstrating their leadership position. B) are emphasizing the need for consistency in word and deed. C) can sabotage cultural cohesion and employee commitment. D) are just being honest and open about the role of executives.

C) can sabotage cultural cohesion and employee commitment.

A domestic corporation considering expanding into international markets for the first time will typically A) start off by implementing a wholly owned foreign subsidiary so it can maintain standards identical to those at home. B) consider licensing or franchising its operations. C) consider implementing a low risk/low control strategy such as exporting. D) form a joint venture with a reputable foreign producer.

C) consider implementing a low risk/low control strategy such as exporting.

According to the text, which of the following is not one of the methods companies can use to enhance their competitive position via innovativeness? A) fostering creativity and experimentation B) investing in new technology, R&D, and continuous improvement C) copying the business practices or techniques of successful competitors D) departing from existing technologies to develop products and practices that go beyond the current state of the art

C) copying the business practices or techniques of successful competitors

Portfolio management matrices are applied to what level of strategy? A) departmental level B) business level C) corporate level D) international level

C) corporate level

Elements of a multidomestic strategy may facilitate the competitive advantage of cost leadership by A) flexibility in adjusting to local laws and customs. B) decreased duplication of inventories which are often involved in having multiple plants producing similar products. C) decreased shipping and transportation costs inherent in local production. D) economies of scale gained through centralized production of standardized products.

C) decreased shipping and transportation costs inherent in local production.

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by A) posting written statements of the organization's goals and objectives. B) discouraging the formation of subcultures that isolate work groups. C) designing effective reward systems. D) encouraging employees to see themselves as free agents.

C) designing effective reward systems.

All of the following are types of information that a firm is required to disclose except A) quarterly and annual filings of financial information. B) stock trading by insiders. C) details of new products under development. D) details of executive compensation packages.

C) details of new products under development.

generally speaking, the opportunity recognition process consists of two phases of activity. they are A)global search and recycling profits. B) value creation and affordability. C) discovery and evaluation.. D) none of these.

C) discovery and evaluation

Contemporary approaches to strategic control rely primarily on A) feedback controls. B) single-loop learning. C) double-loop learning. D) comparative learning.

C) double-loop learning.

which of the following is a common source of new business opportunities? A. current or past work experiences. B. suggestions by family or friends. C. chance event. D. all of these.

D) all of these

Optimizing the location of every activity in the value chain can yield all of the following strategic advantages except A) performance enhancement. B) cost reduction. C) extending the life cycle of the product of service. D) risk reduction.

C) extending the life cycle of the product of service.

A divisional structure A) is organized around functional area departments. B) typically improves the performance of firms pursuing a strategy of vertical integration. C) facilitates the development of general managers. D) enhances centralized decision making.

C) facilitates the development of general managers.

Which of the following is not a disadvantage of the barrier-free form of organization? A) lack of strong leadership can lead to coordination problems. B) democratic process can be time-consuming and difficult to manage. C) fewer internal barriers means fewer political issues to deal with. D) if trust among employees is not sufficiently high, organizational performance may suffer.

C) fewer internal barriers means fewer political issues to deal with.

The benefits gained by firms that are the first to enter new markets, establish brand identity, and/or adopt new technologies are known as A) competitive aggressiveness. B) technological capabilities. C) first-mover advantages. D) breakthrough innovations.

C) first-mover advantages.

Internet search activities include A) generating action plans. B) considering alternatives. C) gathering information. D) making payments and taking delivery.

C) gathering information.

71. Antitakeover tactics include all of the following except A) greenmail. B) golden parachutes. C) golden handcuffs. D) poison pills.

C) golden handcuffs.

The reasons that explain why some governments make better use of the inflows from foreign investment and know-how than others include all of the following except A) governmental practices that are business-friendly. B) local entrepreneurs that can train workers and invest in modern technology. C) high tariffs and taxes on foreign investors and multinational corporations provide income to improve living conditions. D) sound management of broader economic factors such as interest rates and inflation.

C) high tariffs and taxes on foreign investors and multinational corporations provide income to improve living conditions.

Tools and techniques used to achieve effective coordination and integration of key activities in an organization include all of the following except A) horizontal organization structures. B) horizontal systems and processes. C) horizontal diversification. D) communications and information technologies.

C) horizontal diversification.

Which of the following is considered to be an advantage of a matrix structure? A) the layering of matrices B) increased clarity in reporting relationships C) increased responsiveness to the market D) fewer power struggles and reduced conflict

C) increased responsiveness to the market

When countercultures emerge that have shared values opposite from the dominant culture of an organization A) organizational cohesiveness increases. B) information is shared rather than hoarded. C) individuals begin working at cross purposes. D) individuals gain insights into overarching goals and objectives.

C) individuals begin working at cross purposes.

Which of the following is not one of the characteristics of a contemporary control system? A) it is a key catalyst for an ongoing debate about underlying data, assumptions, and action plans. B) it must focus on constantly changing information that is strategically important. C) it circumvents the need for face-to-face meetings among superiors, subordinates, and peers. D) it generates information that is important enough to demand regular and frequent attention.

C) it circumvents the need for face-to-face meetings among superiors, subordinates, and peers.

The downsides or limitations of mergers and acquisitions include all of the following except: A) expensive premiums that are frequently paid to acquire a business. B) difficulties in integrating the activities and resources of the acquired firm into a corporation's on-going operations. C) it is a slow means to enter new markets and acquire skills and competences. D) there can be many cultural issues that can doom an otherwise promising acquisition.

C) it is a slow means to enter new markets and acquire skills and competences.

All of the following are limitations (or downsides) of the BCG (Boston Consulting Group) matrix except A) every business cannot be accurately measured and compared on the two dimensions. B) it views each business as a stand-alone entity and ignores the potential for synergies across businesses. C) it takes a dynamic view of competition which can lead to overly complex analyses. D) while easy to comprehend, the BCG matrix can lead to some troublesome and overly simplistic prescriptions.

C) it takes a dynamic view of competition which can lead to overly complex analyses.

Foreign direct investment includes the following form of entry strategy: A) licensing B) franchising C) joint ventures D) exporting

C) joint ventures

Appreciation of the U.S dollar will have the following impact on McDonald's: A) lower sales abroad because foreign customers cannot afford McDonalds' products. B) more transfer of ingredients from the U.S to branches abroad to take advantage of the higher dollar. C) lower profits, because foreign profits will be reduced when measured in dollars. D) no impact at all.

C) lower profits, because foreign profits will be reduced when measured in dollars.

Nike is a company that makes use of the concept of "product expatriates." Product expatriates are A) managers from the home country sent abroad to oversee the marketing of a company's products. B) managers from suppliers who come to work at a company's headquarters. C) managers of the company sent abroad to work at the plants of its suppliers. D) local nationals hired by the company in the countries from which it sources products.

C) managers of the company sent abroad to work at the plants of its suppliers.

Rules and regulations, rather than culture or rewards, would be used for strategic control at which type of company? A) software developer B) stock brokerage firm C) manufacturer of mass produced products D) high tech research facility

C) manufacturer of mass produced products

Which of the following is not a boundaryless organizational design? A) virtual. B) modular. C) matrix. D) barrier-free.

C) matrix.

Effective boundaries and constraints A) tend to inhibit efficiency and effectiveness. B) distract employees who are trying to focus on organizational priorities. C) minimize improper and unethical conduct. D) tend to limit organizational growth

C) minimize improper and unethical conduct.

Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations. Which of the following is not a technique for moving in that direction? A) hire people that identify with the organization's dominant values. B) develop managerial role models. C) minimize training and indoctrination. D) align reward systems with organizational goals and objectives.

C) minimize training and indoctrination.

What type of organization is defined as "a central hub surrounded by networks of outside suppliers and specialists"? A) matrix B) virtual C) modular D) barrier-free

C) modular

According to Michael Porter, firms that have experienced intense domestic competition are A) unlikely to have the time or resources to compete abroad. B) most likely to design strategies aimed primarily at the domestic market. C) more likely to design strategies and structures that allow them to successfully compete abroad. D) more likely to demand protection from their governments.

C) more likely to design strategies and structures that allow them to successfully compete abroad.

the process of identifying, selecting, and developing new venture opportunities is known as A) innovativeness B) bootstrapping. C) opportunity recognition. D) brainstorming.

C) opportunity recognition.

Which of the following is an advantage of a functional type of organizational structure? A) decentralized decision-making enhances an organization-wide perspective across functions. B) it facilitates the development of general management talent. C) pooling of specialists enhances coordination and control. D) it is easy to establish uniform performance standards.

C) pooling of specialists enhances coordination and control.

In order to realize the strongest competitive advantage, firms engaged in worldwide competition must A) require that all of their various business units follow the same strategy regardless of location. B) ensure that all business units follow a strategy strictly tailored to their respective locations. C) pursue a strategy that combines the uniformity of a global strategy and the specificity of a multidomestic strategy in order to achieve optimal results. D) attempt to use the strategy that was most successful in their home country.

C) pursue a strategy that combines the uniformity of a global strategy and the specificity of a multidomestic strategy in order to achieve optimal results.

Complete the following sentence: "Strategic business unit (SBU) structures are best suited for corporations pursuing _________________________, whereas holding company structures are best suited for companies with ________________________ strategies." A) product-market diversification, international B) international diversification, product-market C) related diversification, unrelated diversification D) unrelated diversification, related diversification

C) related diversification, unrelated diversification

Fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark, patent, trade secret, technology) are usually called A) transfer prices. B) dividends. C) royalties. D) intra-corporate inflows.

C) royalties.

Product champions A) are typically senior executives. B) are usually inventors of some sort. C) scavenge for resources and encourage others to back promising new ideas. D) are strong supporters of the status quo.

C) scavenge for resources and encourage others to back promising new ideas.

All of the following are limitations of a multidomestic strategy except A) less ability to realize cost savings through scale economies. B) greater difficulty in transferring knowledge across countries. C) single locations may lead to higher tariffs and transportation costs. D) may lead to "overadaptation" as conditions change.

C) single locations may lead to higher tariffs and transportation costs.

An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure? A) functional structure B) matrix structure C) strategic business unit structure D) holding company structure

C) strategic business unit structure

The relationship between strategy and structure can be best described as A) strategy determines structure but structure does not determine strategy. B) structure determines strategy but strategy does not determine structure. C) strategy and structure influence each other. D) a third force determines both strategy and structure.

C) strategy and structure influence each other.

Rivalry is intense in nations with conditions of ________ consumer demand, ___________supplier bases, and ____________ new entrant potential from related industries. A) weak; weak; high B) strong; strong; low C) strong; strong; high D) weak; weak; low

C) strong; strong; high

All of the factors below have made India's software services industry extremely competitive on a global scale except A) large pool of skilled workers. B) large network of public and private educational institutions. C) tax and antitrust legislation that protect the dominant players in the industry. D) large, growing market and sophisticated customers.

C) tax and antitrust legislation that protect the dominant players in the industry.

Gillette's worldwide success with its Sensor razor demonstrates A) the importance of merging global and multidomestic strategies. B) the values of establishing joint ventures with several multinational corporations. C) that a global marketing effort can sometimes be successful. D) the usefulness of a multidomestic strategy.

C) that a global marketing effort can sometimes be successful.

Organizations are increasingly using teams for many reasons. The difference between a good team and an outstanding team has been found to be A) the combined technical skills of the members. B) similarities in the way team members solve problems. C) the way team members treat each other. D) similarities in the age and experience of team members.

C) the way team members treat each other.

Which of the following statements about skunkworks is false? A) they are independent work units. B) they are used to encourage creative thinking and brainstorming. C) they refer to a specialized type of outside contractor that corporations use to develop entrepreneurial ideas. D) they help managers set aside their usual routines and practices.

C) they refer to a specialized type of outside contractor that corporations use to develop entrepreneurial ideas.

According to the text, there are elements of team building that influence a team's success. These include all of the following except A) work. Work should be relevant and meaningful to group members. B) people bonding during the "heat of the battle." Team members become more unified during a crisis. C) titles. Titles are important to a team's success. D) teams taking care of their own. Team members look after each other's best interest.

C) titles. Titles are important to a team's success.

High pressure for local adaptation combined with high pressure for lower costs would suggest what type of international strategy: A) global B) multidomestic C) transnational D) differentiation

C) transnational

Which of the following is a disadvantage of a transnational strategy? A) less ability to realize cost savings through scale economies B) limited ability to adapt to local markets C) unique managerial challenges in fostering knowledge transfer D) single locations may lead to higher tariffs and transportation costs.

C) unique managerial challenges in fostering knowledge transfer

Industries in which proportionally more value is added in ____________ activities are more likely to benefit from a ____________ strategy. A) downstream; global B) upstream; multidomestic C) upstream; global D) manufacturing; multidomestic

C) upstream; global

Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input into its manufacturing process. This is an example of A) leveraging core competencies. B) sharing activities. C) vertical integration. D) pooled negotiating power.

C) vertical integration.

Unbalanced capacities that limit cost savings, difficulties in combining specializations, and reduced flexibility are disadvantages associated with A) strategic alliances. B) divestment. C) vertical integration. D) horizontal integration.

C) vertical integration.

Lockheed Martin uses a coalition of three entities -- its own company, academia, and government -- to achieve its goals. This is an example of a A) matrix organization. B) modular organization. C) virtual organization. D) government contractor.

C) virtual organization.

A ____________ is a business in which a multinational company owns 100 percent of the stock. A) joint venture B) strategic alliance C) wholly owned subsidiary D) franchising operation

C) wholly owned subsidiary

If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is A) worldwide functional. B) worldwide product division. C) worldwide matrix. D) international division.

C) worldwide matrix.

Unique content will not add value to an Internet website under the following conditions: A) the cost of developing the content exceeds the benefits gained. B) visitors to the website do not value or use the content. C) the content is unreliable. D) all of the above.

D) all of the above.

Financing for entrepreneurial start-ups includes which of the following? A) investments by family and friends B) personal savings C) private investors D) all of these

D) all of these

Cooperative relationships such as _______ have the potential advantages such as entering new markets, reducing manufacturing (or other) costs in the value chain, and developing and diffusing new technologies. A) joint ventures B) mergers and acquisitions C) strategic alliances D) A and C

D) A and C

Internet start-up Buy.com tried to build brand with an overall low cost leadership strategy. Why is this a risky strategy? A) To build brand recognition, companies must sell high-priced products or services. B) The Internet may help focusers build competitive advantage, but not low cost leaders. C) Only combination strategies that combine features of more than one competitive strategy will work for Internet companies. D) Investing heavily to build brand recognition is considered ineffective for low cost leaders because customers who seek low prices are typically not brand loyal.

D) Investing heavily to build brand recognition is considered ineffective for low cost leaders because customers who seek low prices are typically not brand loyal.

Which one of the following is one of Theodore Levitt's assumptions supporting a pure global strategy? A) Consumers are willing to pay more for specific product features. B) Customer needs and interests are becoming more dissimilar. C) If the world markets are treated as heterogeneous, substantial economies of scale are easily achieved. D) MNCs can compete with aggressive pricing on low cost products that meet the common needs of global consumers.

D) MNCs can compete with aggressive pricing on low cost products that meet the common needs of global consumers.

________________ produce fundamental changes that can transform a company or even revolutionize an industry; ___________________ enhance existing practices and often represent evolutionary applications of fundamental breakthroughs. A) Technological breakthroughs, product-market breakthroughs B) New technologies, new paradigms C) Incremental innovations, radical innovations D) Radical innovations, incremental innovations

D) Radical innovations, incremental innovations

according to the text, new ventures launch by entrepreneurial teams are more likely to be successful than ventures launched by A) established corporation B) bootstrappers C) lone wolf entrepreneurs D) all of these

D) all of these

For a core competence to be a viable basis for the corporation strengthening a new business unit, there are three requirements. Which one of the following is not one of these requirements? A) The competence must help the business gain strength relative to its competition. B) The new business must be similar to existing businesses to benefit from a core competence. C) The collection of competencies should be unique, so that they cannot be easily imitated. D) The new business must have an established large market share.

D) The new business must have an established large market share.

___________ are most appropriate where a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries. A) Joint ventures B) Strategic alliances C) Licensing agreements D) Wholly owned subsidiaries

D) Wholly owned subsidiaries

The phrase that best defines a virtual organization is A) a dot.com company. B) a type of modular structure. C) an organization that uses information technology to integrate different functions. D) a continually evolving network of independent companies.

D) a continually evolving network of independent companies.

Which of the following phrases best completes the sentence: Because of the Internet, firms that use a focus strategy have new opportunities to ________________________________ A) respond quickly to customer requests. B) provide more services and features. C) access markets less expensively. D) access niche markets in a highly specialized fashion.

D) access niche markets in a highly specialized fashion.

Transaction costs include all of the following costs except A) search costs. B) negotiating costs. C) monitoring costs. D) agency costs.

D) agency costs.

A major trend in international developments includes A) greater international trade and operations. B) a growing recognition of an international managerial perspective. C) a large increase in international investment. D) all of the above

D) all of the above

A matrix organizational structure is characterized by A) dual reporting relationships. B) a combination of functional and divisional organization structures. C) efficient use of resources and expertise. D) all of the above

D) all of the above

After 15 teams created 128 different phones, Chris Galvin, CEO of Motorola, recently eliminated the autonomous teams being used to develop new wireless phones. This was necessary because such teams A) often lack coordination. B) sometimes waste resources on projects with questionable feasibility. C) sometimes create inefficiencies through duplication of effort. D) all of the above

D) all of the above

Combination strategies may work best for Internet competitors because, in the Internet age, A) there are fewer rather than more opportunities for achieving sustainable advantages by using traditional competitive strategies. B) cost management and control systems will increase in importance as management tools that all companies can use. C) many of the unique advantages that were the hallmark of success for differentiators can easily be imitated. D) all of the above

D) all of the above

Even though Brazilian-based Semco, Inc. does not rely on rules and job titles to maintain control, and even allows its employees to bid for their own salaries, it has grown into a large diversified company. This is an example of A) a culture based on loyalty and trust. B) a reward system based on self-limiting controls. C) replacing boundaries and constraints with culture and rewards. D) all of the above

D) all of the above

In 2001, Cisco Systems, Inc.'s stock price fell dramatically when it inaccurately forecast new sales orders because it relied too heavily on historical sales figures. What caused this mistake? A) its strategic control system failed to detect changes in consumer demand. B) it "projected the past into the future." C) the momentum of its previous successes blinded it to the need to adapt and change. D) all of the above

D) all of the above

In a typical corporation, which of the following impact how the people within the corporation recognize entrepreneurial opportunities? A) structural features that guide and constrain action B) corporate culture C) organizational systems that foster learning and manage rewards D) all of the above

D) all of the above

Internet "cookies" can be used to violate consumer privacy because they A) reveal an individual Web users browsing habits. B) include a record of purchases that can be sold to marketers. C) are recorded on your hard drive and can be retrieved without your knowledge or consent. D) all of the above

D) all of the above

Strategic reasons for undertaking a corporate venture include which of the following: A) entering into new markets. B) expanding capabilities by acquiring new knowledge. C) building the corporation's base of resources. D) all of the above

D) all of the above

The causes of counterproductive behavior in organizations include A) lack of a clear understanding of organizational goals and objectives. B) motivated self-interest. C) outright malfeasance. D) all of the above

D) all of the above

What advantages does outsourcing provide an organization? A) accessing best in class goods and services B) enabling rapid expansion with relatively low capital investment C) focusing scarce resources on core competencies D) all of the above

D) all of the above

Organizations generally tend to become internally focused when faced with A) resource scarcity. B) declining performance. C) external pressures. D) all of the above.

D) all of the above.

The advantages of collaborating with strategic partners in order to innovate include A) obtaining skills and new knowledge from outside sources. B) making firms identify their own strengths and weaknesses. C) making managers clarify what an innovation project requires to be successful and who will accomplish it. D) all of the above.

D) all of the above.

which of the following tpes of resources contribute to the success of entrepreneurial firms? A) social captial B) financial resources. C) human resources. D) all of these contribute to the success of entrepreneurial firms.

D) all of these contribute to the success of entrepreneurial firms.

which of the following sources of entrepreneurial financing are available to ventures that have already started to conduct business and generate sales? A) bank financing. B) venture capital. C) public financing. D) all of these.

D) all of these.

Rules and regulations are examples of A) implicit controls. B) informational controls. C) cultural norms. D) boundaries and constraints.

D) boundaries and constraints.

According to the text, corporate restructuring includes A) capital restructuring, asset restructuring, and technology restructuring. B) global diversification, capital restructuring, and asset restructuring. C) management restructuring, financial restructuring, and procurement restructuring. D) capital restructuring, asset restructuring, and management restructuring.

D) capital restructuring, asset restructuring, and management restructuring.

Intel has invested $8 billion in several e-business start-ups. This is an example of A) strategic renewal. B) internal development. C) mergers and acquisitions. D) corporate venture funding.

D) corporate venture funding.

All of the following statements about simple organizational structures are true except A) small firms with a narrow product-market scope will adopt such a structure. B) decision making authority is highly centralized. C) there is little specialization of tasks. D) creativity and individualism are rare.

D) creativity and individualism are rare.

All of the following are examples of how organizational culture exerts behavioral control except A) culture helps maintain control by creating behavioral norms. B) culture generates unwritten standards of acceptable behavior. C) culture encourages individual identification with the organization and its objectives. D) culture sets explicit boundaries.

D) culture sets explicit boundaries.

Cadbury Schweppes has a policy that all payments, no matter how unusual, are recorded in the company's books. This rule is A) overly cumbersome. B) aimed at encouraging managers to make better budgetary decisions. C) directed at protecting client confidentiality. D) designed to minimize improper and unethical conduct.

D) designed to minimize improper and unethical conduct.

Complete the following sentence: "Individual rationality ____________________________ organizational rationality." A) is a good indicator of B) will ensure C) is often the opposite of D) does not always guarantee

D) does not always guarantee

when an opportunity is attractive long enough for it to be successfully developed and deployed, it is said to be A) value creating B) affordable C) achievable D) durable

D) durable

The form of entry strategy into international operations that offers the lowest level of control would be A) franchising. B) licensing. C) joint venture. D) exporting

D) exporting

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy? A) firms that compete in industries in which consumer preferences vary substantially in each country B) firms in industries that are expanding very rapidly C) firms in industries that have value added by sales and marketing departments D) firms in industries that have much value added in research and design or manufacturing

D) firms in industries that have much value added in research and design or manufacturing

Complete the following sentence: "Virtual organizations ____________________________ whereas modular organizations ____________________________." A) are usually permanent, are usually temporary B) accept interdependent destinies, pursue collective strategies C) pursue collective strategies, forfeit strategic control D) give up part of their strategic control, retain full strategic control

D) give up part of their strategic control, retain full strategic control

In firms with differentiation strategies, the culture should foster ________ levels of interdependence and rewards should be based primarily on _____________ measures of output. A) low, financial B) low, behavioral C) high, financial D) high, behavioral

D) high, behavioral

In firms with related diversification strategies, the culture should foster ________ levels of interdependence and rewards should be based primarily on _____________ measures of output. A) low, financial B) low, behavioral C) high, financial D) high, behavioral

D) high, behavioral

Which of the following is not a strategic risk of outsourcing? A) loss of critical skills B) loss of cross-functional skills C) loss of control over a supplier D) loss of non-vital functions

D) loss of non-vital functions

In the Boston Consulting Group's (BCG) Growth Share Matrix, the suggested strategy for "stars" is to A) milk them to finance other businesses. B) invest large sums to gain a good market share. C) not invest in them and to shift cash flow to other businesses. D) maintain position and after the market growth slows use the business to provide cash flow.

D) maintain position and after the market growth slows use the business to provide cash flow.

Which of the following methods of implementing a differentiation strategy has been greatly enhanced because of Internet technologies? A) celebrity endorsements B) prestige packaging C) exceptional service D) mass customization

D) mass customization

Dell Computer has an online ordering system that allows consumers to configure their own computers before Dell builds them. This capability is an example of A) electronic data interchange. B) knowledge management. C) collaborative design. D) mass customization.

D) mass customization.

based on statistics reported in the text, which of the following statements is False? A)firms that obtain venture-capital funding receive an average of over $1 million each. B) total investment in start-up firms averages about $80,000 in the firm's first year. C) among the 100 fastest - growing new businesses identified by Entrepreneur magazine, 61 percent obtain start-up funding from personal savings. D) ninety percent of the companies financed with venture capital funds fail.

D) ninety percent of the companies financed with venture capital funds fail.

The innovation dilemma known as seeds versus weeds refers to A) choosing to pursue radical rather than incremental innovations. B) choosing to pursue product rather than process innovations. C) promoting organizational stars onto innovation teams rather than involving all employees in innovation efforts. D) none of the above.

D) none of the above.

Which of the following is not one of the dimensions of entrepreneurial orientation? A) proactiveness B) risk taking C) autonomy D) opportunism

D) opportunism

The term "golden parachutes" refers to A) a clause requiring that huge dividend payments be made upon takeover. B) financial inducements offered by a threatened firm to stop a hostile suitor from acquiring it. C) managers of a firm involved in a hostile takeover approaching a third party about making the acquisition. D) pay given to executives fired because of a takeover.

D) pay given to executives fired because of a takeover.

the majority of entrepreneurial start-ups are financed with A) bank financing B)public financing (e.g., SBA loans) C) venture-capital financing D) personal savings and the contributions of family and friends.

D) personal savings and the contributions of family and friends.

In Michael Porter's framework all of the following factors affect a nation's competitiveness except A) factor conditions. B) demand characteristics. C) related and supported industries. D) policies that protect the nation's domestic competitors.

D) policies that protect the nation's domestic competitors.

Whereas ________________________ are willing to violate procedures and operate outside normal channels, ___________________________ gather hard data and develop a strong case for why a project should be killed. A) senior managers; entrepreneurial leaders B) strategic managers; financial managers C) exit champions; product champions D) product champions; exit champions

D) product champions; exit champions

All of the following are types of risks that executives must address except A) business risk taking. B) financial risk taking. C) personal risk taking. D) product-market risk taking

D) product-market risk taking

Four Internet-based activities that are enhancing firms' capabilities to use the Internet to add value include: A) outsourcing, problem-solving, bill-paying, and delivery. B) evaluating, bill-paying, customizing, and returning. C) search, rescue, repair, return. D) search, evaluation, problem-solving, and transaction

D) search, evaluation, problem-solving, and transaction

Firms following a global strategy strive to offer ______________ products and services as well as locate manufacturing, R&D, and marketing activities in _____________ locations. A) a wide variety of; several B) a wide variety of; few C) standardized; several D) standardized; few

D) standardized; few

When using a BCG matrix, a business that currently holds a large market share in a rapidly growing market and that has minimal or negative cash flow would be known as a A) cow. B) dog. C) problem child. D) star.

D) star.

Corporate business incubators typically provide all of the following functions except A) physical space. B) mentoring. C) funding. D) student interns.

D) student interns.

Which of the following is not one of the reasons the Internet increases the intensity of competitive rivalry: A) the Internet makes it more difficult for firms to differentiate themselves. B) the Internet has commoditized products that previously were regarded as rare or unique. C) the Internet has eliminated the importance of location by making geographically distant products available online. D) the Internet has made it more difficult to imitate the advantages achieved by competitors.

D) the Internet has made it more difficult to imitate the advantages achieved by competitors.

All of the following are advantages of a strategic business unit (SBU) type of organizational structure except A) divisions with similar products, markets, or technologies are formed into homogeneous groups that can achieve synergies. B) divisional executives can respond quickly to market changes and opportunities. C) planning and control by the corporate office is more manageable. D) the corporate office is more removed from the individual divisions

D) the corporate office is more removed from the individual divisions

The failure of many auditing firms to raise red flags about accounting irregularities in companies such as Enron and WorldCom is generally attributed to all of the following factors except A) the desire to get future auditing contracts from the company. B) the desire to get consulting work from the company because most audit firms also do consulting work. C) The fact that auditors are appointed by the firm. D) the failure of U.S. audit firms to follow internationally accepted accounting standards.

D) the failure of U.S. audit firms to follow internationally accepted accounting standards.

A firm should consider vertical integration when A) the competitive situation is highly volatile. B) customer needs are evolving. C) the firm's suppliers willingly cooperate with the firm. D) the firm's suppliers of raw materials are often unable to maintain quality standards.

D) the firm's suppliers of raw materials are often unable to maintain quality standards.

All of the following are risks associated with a global strategy except: A) a firm with only one manufacturing location must export its product—some of which may be a great distance from the operation. B) the geographic concentration of any activity may also tend to isolate that activity from the targeted markets. C) concentrating an activity in a single location makes the rest of the firm dependent on that location. D) the pressures for local adaptation may elevate the firm's cost structure.

D) the pressures for local adaptation may elevate the firm's cost structure.

By takeover constraint, we mean A) constraints placed by the firm on raiders who want to takeover the firm. B) legal constraints that limit the ability of the raiders to acquire a firm. C) provisions in the charter of a company that prevents it from attempting a takeover of other companies. D) the risk of being acquired by a hostile raider.

D) the risk of being acquired by a hostile raider.

All of the following are disadvantages of a divisional type of organizational structure except A) it can be very expensive compared to a functional organizational structure. B) there is a strong tendency for divisions to focus on short-term performance. C) there can be dysfunctional competition among divisions. D) there is separation of strategic and operating control.

D) there is separation of strategic and operating control.

The primary drawback of "traditional" strategic control systems is A) they are only appropriate when the environment is stable and simple. B) goals and objectives cannot be measured with a high level of certainty. C) they lead to complacency. D) they lack the flexibility needed to adjust to changes in the environment.

D) they lack the flexibility needed to adjust to changes in the environment.

Many U.S. multinational companies set up maquiladora operations south of the US-Mexico border primarily A) to sell products into the growing Mexican market. B) as part of US government-initiated measures to discourage illegal immigration. C) to take advantage of the lower tax rates in Mexico. D) to take advantage of the low cost of labor.

D) to take advantage of the low cost of labor.

The use of culture and intangible rewards as the primary means of controlling individual behavior is considered more effective than rules and boundaries when A) output is standardized. B) measurement of performance is straightforward. C) tasks are repetitive and routine. D) work is autonomous and creative.

D) work is autonomous and creative.

why is vision such an important element of entrepreneurial leadership?

all of these.

which of the following is NOT one of the three characteristics of entrepreneurial leadership mention by the text? clarifying job responsibilities

clarifying job responsibilities

seeking products or services that have been successful in one market and introducing the same basic product or service in another segment of the market is referred to as . Imitative new entry

imitative new entry

the us small business administration supports small business through all of the following except? investing venture capital

investing venture capital