Mgmt 491 Final

What was one of the reasons for Jerry Yang's failure at Yahoo?

Jerry's preference for obtaining consensus among his managers led to bickering and infighting.

Why does Michael Porter recommend expanding the customer base of an organization in terms of the Shared Value creation framework?

Doing so could yield significant business opportunities that could improve the standard of living of the poor.

Which of the following modes of entering a foreign market allows for the lowest level of control?

Exporting

Which of the conditions prevail when an industry is at the end of its life cycle?

The level of process innovation reaches its maximum as firms attempt to lower cost.

A successfully implemented integration strategy allows a firm to:

charge a higher price than the cost leader in the industry.

When two neighboring, democratic countries that are part of a trading bloc follow different religions and social norms, they most likely have high _____.

cultural distance

Intel's Celeron chip and Atom chip are initiatives to

guard the company against disruptive innovation by protecting the low end of the market

A. G. Lafley at Procter & Gamble (P&G), had implemented an open-innovation model, which had greatly benefitted the company. In the light of this information, we can conclude that A. G. Lafley is a(n):

intrapreneur

Some of the best engineering and car companies are in Germany. Thus, it can be concluded that Germany has a _____ in the automobile industry.

national competitive advantage

he strategic objective of businesses during the shakeout phase of the industry life cycle will primarily be to:

survive by drawing on "deep pockets."

A drawback of short-term contracting as an alternative to making a component in-house is that:

the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality

After Jeff Bezos read about how the Internet was growing by 2,000 percent a month, he set out to use the Internet as a new distribution channel and founded Amazon, which is now the world's largest online retailer. This is clearly an example of a(n):

entrepreneur who commercialized invention into an innovation

Which of the following statements accurately brings out the difference between technology enthusiasts and early adopters?

Unlike technology enthusiasts, early adopters' demand is fueled more by intuition and vision rather than technology concerns

Why did the American MTV network cable channel fail when pursuing a global-standardization strategy?

Because cultural distance most affects products with high linguistic content

Which of the following has been a key driver for firms to expand globally during the globalization 3.0 stage?

Benefits from lower labor costs in manufacturing and services

____ are best described as equity investments by large established firms making in entrepreneurial ventures to gain access to new, and potentially disruptive, technologies

Corporate venture capital investments

Which of the following is an ineffective practice in alliance management

Focusing on developing an alliance-management capability in isolation

Which of the following is a firm effect that has an impact on the competitive advantage of a firm

The value and the cost position of the firm relative to its competitors

Glova Inc., a company that manufactures and sells premium perfumes, is pursuing an international strategy. RightMart Inc., a supermarket chain, follows a multidomestic strategy. Which of the following statements is most likely true of this scenario?

Glova Inc. will sell the same products and services in both domestic and foreign markets, whereas RightMart Inc. will customize its product offerings to suit local requirements.

Today, Hollywood movies are banking more on foreign sales for their overall revenues. Hollywood studios have been adapting scripts to appeal to global audiences, and casting foreign actors in leading roles. Which of the following statements most accurately explains the reason for this change?

Hollywood is now a truly global enterprise with the vast majority of revenues coming from outside the United States.

Which of the following statements is true of taper integration?

It exposes in-house suppliers and distributors to market competition to make performance comparisons possible.

Which of the following could most likely have prevented the accounting scandals of the early 2000s and the global financial crisis?

Practicing effective corporate governance

Which of the following is an unintended side-effect of a high degree of specialization in an organization

Reduced employee satisfaction due to repetition of tasks

Grace Apparel Inc. has decided to procure fabrics required for its garments from external suppliers instead of maintaining its own dyeing and weaving facilities. How will this decision affect the firm?

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

Which of the following is true of the parent-subsidiary relationship?

The transaction costs that arise are frequently due to transfer prices.

Disney's "Wedding Banned," a romantic comedy about a divorced couple trying to prevent their daughter from getting married, was axed in the advanced production stage despite several marquee stars (Robin Williams, Anna Faris, and Diane Keaton). Which of the following statements best explains why this happened?

There were perceptions that this movie would not succeed outside of the American market

Why are controls like budgets and operating procedures that McDonald's implements known as input controls?

They are considered before employees make any decisions

Which of the following is an advantage of non-equity alliances?

They are flexible and easy to initiate and terminate

Which of the following is true of the board of directors in a public stock company?

Votes at shareholder meetings determine whose representatives are appointed to the board of directors.

W.L. Gore has four product divisions: electronic products, industrial products, medical products, and fabrics division. It also has manufacturing facilities in U.S., China, Germany, Japan, and Scotland, and business activities in 30 countries across the globe. Based on this information, which of the following statements is most accurate?

W.L. Gore is using a multidivisional structure.

The primary goal of a firm pursuing an integration strategy should be to

achieve a larger economic value created than that of rivals in the industry.

In publicly-traded companies, individuals who are delegated to perform duties on behalf of company owners are known as _____.

agents

Neville and Andre are customer care employees at JPN Care. In between calls, Neville and Andre spend time on Facebook and YouTube. The relaxed guidelines at JPN allow them to do that. However, sometimes, they knowingly avoid answering calls or keep customers on hold, while they check their social networking accounts. Such behavior:

can be stopped by implementing performance incentives and strict control mechanisms.

A differentiator is least likely to be threatened by increases in input prices due to powerful suppliers when the

differentiator is able to create a significant difference between perceived value and current market prices.

n the context of the Boston Consulting Group (BCG) growth-share matrix, if one of the strategic business units of a conglomerate is categorized under dogs, the management should

divest the strategic business unit

In contrast to a differentiator, a cost leader will:

focus its research and development on process technologies to improve efficiency. avoid an organizational structure that relies on strict budget controls.

NorthStar Inc. and The Royal Group have together established The Royal Star Group of hotels. NorthStar owns 49 percent and The Royal Group has a 51 percent share in The Royal Star Group of hotels. However, the management of The Royal Star Group of hotels is separate from its parent companies. What alliance type does this scenario best illustrate

joint venture

When a firm combines experience based learning and process innovation, the firm:

jumps to a steeper learning curve

In Eli Lilly's Office of Alliance Management, the alliance champion is primarily responsible for:

making sure that an alliance fits within the firm's existing alliance portfolio and corporate-level strategy

Walmart is an example of a(n) _____ organization.

mechanistic

Rajat Gupta's role in providing inside information to Galleon Group for the benefit of Galleon Group's stockholders and Rajat Gupta himself is an example of _____.

moral hazard - Moral hazard describes a situation in which information asymmetry increases the incentive of one party to take undue risks or shirk other responsibilities because the costs incur to the other party.

Which of the following global strategies best matches with a multidivisional structure?

multidomestic

While working a night job at a call center, Neville creates an app called FastServe, which can be used to place orders at restaurants, rate the restaurants, and make reservations. Because he receives good responses for his app, he quits his current job to focus his efforts on FastServe. He creates a startup called TYOP and hires three people to help him improve FastServe and maintain the servers that run it. In this scenario, TYOP most likely has a _____ structure.

simple