exam study
A public stock company is considered by law to be an entity with legal rights and obligations. This is known as ______.
legal personality
To get the benefits of vertical integration without the accompanying risks, companies can ______. (Check all that apply.)
choose strategic outsourcing use taper integration
Introducing a new technology to an existing market to better address consumer needs is known as ______ innovation.
disruptive
Amazon's explosive success is largely due to which of the following? (Check all that apply.)
diversification vertical integration
When two competitors merge, leading to industry consolidation, they are engaging in ______.
horizontal integration
Why might a firm create a joint venture when entering a new geographic market?
to access local contacts to adhere to local law to access local expertise
What are common reasons a firm might pursue a merger?
to address principal-agent problems to overcome competitive disadvantage to gain superior acquisition and integration capability
What is the goal of a differentiation strategy
to create a competitive advantage by offering products or services at a higher perceived value, while keeping costs under control
True or false: A major reason why a firm may choose a related diversification strategy is to take advantage of both economies of scale and of scope.
True
True or false: Firms that pursue either related or unrelated diversification generally employ a multidivisional structure. True false question.
True
Firms that pursue an unrelated diversification strategy and are unable to create additional value tend to experience which of the following?
a diversification discount
The cultural disparity between the internationally expanding firm's home country and its targeted host country is known as ______.
cultural distance
The process in which change agents create new products or processes at significant economic risk is known as ______.
entrepreneurship
What are the three mechanisms that alliances can be governed by?
equity alliances joint ventures non-equity alliances
At which stage of the industry life cycle does the size of the market expand rapidly?
growth
A characteristic of a matrix organizational structure is that it ______.
is difficult to implement
Which of the following factors enabled India to gain a competitive advantage in business process outsourcing? (Check all that apply.)
its well-educated, English-speaking workforce its low-cost labor
According to agency theory, conflicts such as the principal-agent problem are considered ______ issues.
legal
The framework for R&D that involves permeable firm boundaries and allows for sharing of ideas and inventions is known as ______.
open innovation
The structure, processes, and procedures of an organization are designed, put into place, reviewed, and reworked through a process known as ______.
organizational design
Corporate governance addresses the ______ problem, which underscores the risk of delegating responsibility and control to individuals who may not have the firm's best interests in mind.
principal-agent
Which diversification strategy involves executives pursuing various business opportunities that share only a small number of similarities?
related-linked
During the first stage of globalization, business functions that took place abroad were limited to which of the following? (Check all that apply.)
sales distribution
When pursuing an international strategy, a company ______.
sells the same product in both domestic and foreign markets
Benny's Baos had an edge in the market, but other companies began to enter the market. Benny is now losing customers even though he has launched an aggressive marketing campaign in an attempt to attract customers. Benny's Baos is likely in the ______ stage of the industry life cycle.
shakeout
Which type of alternative on the make-or-buy continuum involves competitive bidding by external companies hoping to acquire a temporary arrangement with a firm?
short-term contracts
Which types of diversification tend to have the lowest performances?
single business unrelated diversification
The partners in non-equity alliances can have weak ties because such alliances are often ______ in nature, which can cause lack of trust and commitment.
temporary
Unlike short-term contracts, long-term contracts encourage firms to make ______ investments.
transaction-specific
What are the three dimensions along which executives formulate corporate strategy?
The degree of vertical integration The geographic scope The type of diversification
What are some advantages of strategic alliances? (Select all that apply.)
They help firms achieve goals faster than they would alone. They might give companies a competitive advantage.
Which of the following statements about equity alliances is true?
They require larger investments than non-equity alliances.
Which type of company is considered a unicorn?
a private start-up company valued at more than $1 billion
What allows firms to manage both strategic alliances and mergers and acquisitions?
a relational capability
The customer segment known as ______ enjoy testing product prototypes and providing voluntary feedback that companies use to perfect their products.
technology enthusiasts
Horizontal integration can reduce ______.
the threat of entry
Which are the three main reasons firms make acquisitions? (Check all that apply.)
to gain access to a new capability or competency to gain access to new distribution channels and markets to preempt rivals
The shared value creation framework encourages managers to focus on which of the following needs? (Check all that apply.)
economic social
The oldest form of internationalization is ______, which involves producing goods in one country to sell in another country.
exporting
The organizational element that determines the organization's formal, position-based reporting lines is known as ______.
hierarchy
The ______ identifies how industries tend to develop and change over time.
industry life cycle
Creating new products out of new or existing ideas is known as
invention
The main goal of a poison pill is to ______.
minimize the threat of a hostile takeover
The most common type of alliance is a(n) ______.
non-equity alliance
What is a related-linked diversification strategy?
one in which executives pursue various businesses opportunities that share only a limited number of linkages
In the ______ stage of the industry life cycle, falling demand leads to a reduction in market size.
decline
Which two customer segments make up the largest percentage of the market potential? (Check all that apply.)
early and late majority
Taki works for a start-up company that is highly centralized and its employees are not allowed to wear headphones while working. However, the company offers a flexible work schedule, free childcare, and free yoga classes. These rules and perks describe the company's ______.
organizational culture
What are three advantages of equity alliances? (Check all that apply.)
stronger ties a window into new technology (option value) possible emergence of trust and commitment
A firm might want to use a strategic alliance to ______.
change the industry structure
The primary purpose of the board of directors is ______.
general strategic oversight and guidance
When a company's culture is defined and shaped by the people who start it, it is known as founder ______.
imprinting
In order for a company to be considered a multinational enterprise, it must operate ______.
in more than one country
A fiduciary responsibility is a(n) ______.
legal duty to act in another party's interests
Long-term contracts include which of the following forms? (Check all that apply.)
licensing franchising
MNEs pursuing a multidomestic strategy hope that ______.
local consumers will perceive them to be a domestic company
What are the four quadrants of the integration-responsiveness framework? (Check all that apply.)
multidomestic strategy global standardization strategy transnational strategy international strategy
A company that resists change and sticks to formalized business processes and structures is likely experiencing ______.
organizational inertia
Which type of knowledge cannot be codified and can only be gained through active participation in the task?
tacit knowledge
If there are several levels of management between the lowest employee and the CEO, the firm has a ______ structure.
tall
______ refers to an increase in the variety of products and services a firm offers or markets and the geographic regions in which it competes.
Diversification
Which of the following are advantages of platform businesses compared to pipeline businesses? (Check all that apply.)
They benefit from community feedback. They unlock new sources of value creation and supply. They scale efficiently by eliminating gatekeepers.
A multidomestic strategy is appropriate when which of the following conditions exist? (Check all that apply.)
Markets in the host country are idiosyncratic. The firm feels little need to reduce costs. The firm faces high demand for local responsiveness.
What is a true statement about strategic alliances?
They have a high failure rate.
Though many benefits exist, which of the following are among the drawbacks of a transnational strategy? (Check all that apply.)
It's difficult to implement. It requires implementing a complex organizational structure.
What is a component of post-formation alliance management?
establishing knowledge-sharing routines
Porter's diamond framework to explain national competitive advantage includes four interrelated factors: demand conditions, competitive intensity in a focal industry, related and supporting industries/complementors, and ______.
factor conditions
What do stakeholders want above all else?
fair treatment
Equity alliances allow for the sharing of ______, which involves information that cannot be codified for completing tasks.
tacit knowledge
Which of the following are characteristics of the early majority? (Check all that apply.)
They weigh benefits and costs carefully. They have a strong sense of practicality.
When a firm covers a limited geographic area and is narrowly focused in terms of product/service offerings, a ______ structure is recommended.
functional
Incentives that are too high-powered, such as an outsized bonus, may cause individuals to ______.
focus too much attention on the incentive and not enough on strategic activities
Effective strategy implementation, in general, will help a firm __.
gain and sustain competitive advantage
Since expanding internationally, IKEA has shifted focus, concentrating on effectively managing a global supply chain in order to achieve economies of scale. This is reflective of a(n) ______ strategy.
global-standardization
Which are the four steps of the innovation process?
idea, invention, innovation, imitation
Companies seek to access international markets as a means of ______.
increasing their economic value creation
Although the three tasks of alliance management capability often occur at the same time, in general what is the first phase of alliance management?
partner selection and alliance formation
Which statement describes the long tail?
A large amount of revenue derived from a small number of units among almost unlimited choices
Which of the following is true of an M-form?
Each division operates independently.
______ are partnerships in which at least one partner takes partial ownership in the other partner
Equity alliances
Which statement best describes the speed of innovation over the past hundred years?
It has accelerated dramatically.
Which of the following statements regarding factor conditions in Porter's diamond framework is true?
Natural resources are not necessarily needed to generate world-leading companies.
______ refers to the assets whose physical and engineering properties are designed to satisfy a particular customer.
Physical-asset specificity
Strategists can grow their firms by growing organically through internal development or externally through alliances and ______.
acquisitions
The idea that a corporation is simply a collection of legal contracts is known as ______.
agency theory
Which type of organization attempts to balance and harness different activities in trade-off situations?
ambidextrous organization
The introductory stage of the industry life cycle is a ______-intensive process.
capital
Which of the following are alternatives on the make-or-buy continuum? (Check all that apply.)
equity alliances joint ventures
Under agency theory, a manager should seek to align ______ between principals and agents to minimize opportunism.
incentives
Horizontal integration through mergers and acquisitions can create costs. Which of the following are sources of such costs?
increased potential for legal repercussions reduced flexibility
What are some managerial advantages of building a firm into a large organization?
increased power greater prestige more job security
As the standard of living rises in emerging economies, MNEs are hoping that ______.
increased purchasing power will enable workers to purchase the products previously made only for export
If the economic value creation of international expansion is negative, a firm should ______.
not expand internationally
A firm with alliance management capability is able to effectively manage which of the following tasks?
partner selection and alliance formation post-formation alliance management alliance design and governance
An agreed-upon solution about a common set of engineering features and design choices is known as a ______.
standard
The right to buy a company's stock at a predetermined price sometime in the future is known as a(n) ______. Multiple choice question.
stock option
A multinational enterprise would likely be motivated to pursue a global-standardization strategy in order to ______.
take advantage of economies of scale take advantage of location economies
An external governance mechanism that makes a poorly managed company vulnerable to takeover by outside investors is known as ______.
the market for corporate control
Which of the following helped motivate globalization after the end of World War II? (Check all that apply.)
the need to reconstruct economies damaged by war unfilled needs during the war years
Which of the following describes economies of scope?
the savings from producing two or more outputs at less cost than producing each output individually
What are the two significant issues regarding the CEO pay debate? (Check all that apply.)
the size of the CEO compensation in relation to average employee pay the relationship between firm performance and CEO pay
True or false: Innovation can create value for one firm while destroying value for another
true
True or false: The chasm separating the early adopters from the early majority is the largest.
true
If an alliance between two firms succeeds, it is likely that the firms in the alliance _____.
trust each other
A conglomerate fits which type of corporate diversification model?
unrelated diversification
Foreign direct investments are investments in ______.
value chain activities abroad
Which of the following is the most important yet least visible element of organizational culture?
values
True or false: In most cases, mergers and acquisitions create competitive advantage.
False
Which bodies regulate mergers and acquisitions?
Federal Trade Commission European Commission
Under the shared value creation framework, which of the following strategic actions would fail to connect economic and societal needs?
Focusing exclusively on maximizing returns for shareholders.
In what way does the strategic alliance between GM and Lyft allow GM to hedge against uncertainty?
It gives GM access to the market of the future, in which traditional private car ownership no longer exists.
Which of the following is true regarding the government and horizontal integration?
Large horizontal integration activity typically needs to be approved by government authorities.
Which of the following statements about the maturity stage of the industry life cycle is true?
Only a few large firms remain.
What are downsides of equity alliances? (Check all that apply.)
The time and effort for assembling the partnership The amount of investment involved
Which type of structure uses domain expertise to separate employees into specific areas based on their purpose, such as sales and human resources?
a functional structure
The four-step innovation process begins with ______.
an idea
When a business answers the question of where to compete, it is determining ___.
corporate strategy
In order to assess whether ______ is working, managers can ask if the individual businesses are worth more under the firm's management or if they are worth more under individual management.
diversification
TWN, a large multinational corporation, chose to spin off one of its SBUs that was unrelated to TWN's core business in order to avoid the ______. When they announced the spin-off, the stock price of TWN went up by 5%. Multiple choice question.
diversification discount
Which of the following are examples of artifacts of an organization's culture? (Check all that apply.)
dress code formal vocabulary private offices
Which two of the following accurately describe organic organizations? (Check all that apply.)
flat low specialization
Which of the following occurs when agents are better informed than principals?
information asymmetry
Mount Mountain is a manufacturer of outdoor gear and apparel. It uses American sizing and standards for its apparel and gear across all markets. Which strategy is Mount Mountain adhering to?
international
match
international matches Choice, functional multidomestic matches Choice, multidivisional with divisions according to geographic areas; decentralized decision making global standardization matches Choice, multidivisional with divisions according to products; centralized decision making transnational matches Choice, global matrix; balance of centralized and decentralized decision making, two layers of hierarchy (geographic and product)
When multinationals draw on multiple innovation hubs that all have equal status, they pursue a ______.
polycentric innovation strategy
New methods for producing existing products or delivering existing services are known as ______.
process innovations
Because it targeted a new market and used new technologies, the first mass-produced automobile is considered a(n) ______ innovation.
radical
Innovations that target NEW markets and represent a major break from existing technologies or ways of thinking, such as the digital camera, the touch-screen smart phone, or the decoding of the human genome, are examples of ______ innovations.
radical
Simple structures tend to be used by which group?
small companies with low organizational complexity
Which of the following are part of culture?
social mores beliefs social norms
In the taper integration system, a firm has ______ reliance on outside markets.
some partial
A firm's organizational structure directly determines which of the following aspects of the firm? (Check all that apply.)
the distribution of resources the orchestration of individual and team work efforts
______ refers to the firms' ownership of its production of needed inputs or of the channels by which it distributes its outputs.
vertical integration
What happens when the markets along the industry value chain are too risky and alternatives too costly in time or money?
vertical market failure
When a firm is more efficient in organizing economic activity than markets are, the firm should ______
vertically integrate
Which of the following are the most important determinants of economic distance? (Check all that apply.)
wealth and per capita income
According to the Boston Consulting Group matrix, cash cows are SBUs that do which of the following
compete in a low-growth market but have high market share
The Japanese market is very particular, and MNEs tend to have a challenging time breaking into the market successfully. To provide the most local responsiveness and to influence Japanese consumers in believing that the products are local, an MNE should follow a(n) ______ strategy.
multidomestic
Which of the following are characteristics of a joint venture?
It is a long-term commitment by two or more partners. It facilitates transaction-specific investments.
How does horizontal integration affect Porter's Five Forces for the surviving firms? (Check all that apply.)
It reduces rivalry among existing firms. It reduces the threat of entry.
Which of the following are types of innovation?
radical, incremental, disruptive, architectural
National culture, according to Geert Hofstede, can be defined as different groups' distinctive ______.
"programming of the mind"
A(n) ______ is when two firms agree to join and create a combined entity, and a(n) ______ is when one firm buys or takes over another firm.
merger; acquisition
The extent to which the ability to make decisions rests with the people at the top of a firm is referred to as ______.
centralization
One of the key characteristics of a leveraged buyout (LBO) is that it _______.
changes the ownership structure of a company from public to private
The business structure that is linear and has producers at one end and consumers at the other is known as a(n) ______.
pipeline
True or false: Organizational culture should never change.
False
Which of the following statements are true of the network organizational structure? (Check all that apply.)
It should be supported by uniform, company-wide policies and procedures. It enables firms to access communities of practice.
Kava Botanicals, a boutique retailer that sells high-end makeup and accessories, is owned by two makeup manufacturers. Kava Botanicals is an example of which type of strategic alliance?
a joint venture
Companies from wealthy countries benefit from cross-border trade with other wealthy countries when their competitive advantage is based on which of the following factors?
economies of experience standardization economies of scale
When a company makes incremental investments as part of a larger investment and takes the time to analyze the information gained following each incremental investment, the company is taking a ______.
real-options perspective
The element of organizational structure that separates the tasks of one job from the tasks of another is known as ______.
specialization
Long-term contracts are classified as ______.
strategic alliances
Which of the following are among the reasons firms need to grow? (Check all that apply.)
to increase profits to motivate management
What is the relationship between innovation and competitive advantage?
Innovation is a powerful weapon for gaining and maintaining competitive advantage.
Companies that transact in the open market incur ______.
external transaction costs
True or false: Firms tend to enter strategic alliances when they have no other choice.
False
How do foreign governments typically influence a firm's use of strategic alliances to enter new markets?
Governments may require that foreign firms have a local joint venture partner in order to conduct business within the country's borders.
It is challenging for firms to "cross the chasm" because ______.
each stage of the industry life cycle features a different group of customers with different preferences and demands
A firm that successfully leverages network effects can ___.
push its industry into the growth stage
What are the four characteristics of a public stock company that make it an attractive corporate form? (Check all that apply.)
transferability of investor interests separation of ownership and control legal personality limited liability for investors
What are the four quadrants of the core competence-market matrix?
existing competencies with new markets existing competencies with existing markets new competencies with new markets new competencies with existing markets
Which of the following have been found to be ethical norms in business? (Check all that apply.)
honesty reciprocity fairness
Svanhildur's company is committed to corporate social responsibility but also understands that growth and profit are imperative for survival. What should Svanhildur's company do to achieve this balance?
It should use the shared value creation framework.
True or false: It can be riskier to own parts of the supply chain than to rely on external supply chains.
True
Calculating cultural distance involves comparing the cultures of which of the following? (Check all that apply.)
a firm's home country a targeted host country
Which of the following terms describes the strengths that allow a firm to distinguish itself from the competition?
core competencies
Which of the following are the four underlying strategic management concepts that determine the scope of a firm? (Check all that apply.)
core competencies transaction costs economies of scope economies of scale
The mechanism used to guide a company toward meeting its strategic goals within the bounds of the law is known as ______.
corporate governance
When an established firm makes an equity investment in an entrepreneurial venture it is known as a(n) ______ investment.
corporate venture capital
During the growth stage of the industry life cycle, ______ increases rapidly.
demand
Which customer segment dominates the market growth stage of the industry life cycle?
early adopters
Which of the following are types of strategic alliances? (Check all that apply.)
equity alliances joint ventures long-term contracts
The idea of corporate social responsibility (CSR) suggests that a firm's obligations should ______.
exceed the traditional imperative to increase profits
Social consequences of business activities, including pollution, energy loss, and dangerous accidents, are known as ______.
externalities
True or false: The benefits of local responsiveness always outweigh the costs.
false, Local responsiveness typically entails higher costs.
Which of the following dimensions are considered in the CAGE distance framework? (Check all that apply.)
geographic distance cultural distance economic distance administration/political
A firm using a(n) ______ strategy is likely to have a multidivisional structure with the multiple divisions representing different products and centralized decision making.
global standardization
A company's ______ is the part of a corporate strategy that addresses how to gain and sustain a competitive advantage when competing against other foreign and domestic companies around the world.
global strategy
A firm that is organized according to SBUs but also is decentralized in that different geographic locations are fully functional is likely organized in the ______ structure.
matrix
An enterprise that creates value by matching external producers and consumers in a way that creates value for all participants and that depends on the infrastructure that the platform manages is a(n) ______.`
platform business
It is common for firms to get their start by introducing a(n) ______ innovation.
radical
The Boston Consulting Group growth-share matrix locates a firm's individual SBUs in which of the following dimensions? (Check all that apply.)
speed of market growth relative market share
Which of the following are common reasons for companies to make foreign direct investments? (Check all that apply.)
to avoid import restrictions to reduce labor costs to reduce tax burdens
______ is a situation in which one party has more knowledge than another due to the possession of private knowledge.
Information asymmetry
Most firms consider laggards to be ______.
not worth the effort of pursuing
Which of the following are among the primary considerations when determining the mode in which a firm enters a foreign market? (Check all that apply.)
the degree of investment the desired level of control over foreign operations
DaShawn likes to do a lot of research before he buys a new product and relies on the endorsement by others. He also wants to be sure the product will be practical. DaShawn is likely a member of which type of customer?
the early majority
Pavel works for a successful pharmaceutical company. Despite several years of unprecedented growth, the company wants to boost profits even more. It has taken steps to drastically raise the prices of its most widely distributed medications, which are difficult to imitate. Research into employee ethical decision-making capacity indicates that Pavel will ______.
act in a manner that reflects his company's organizational culture
Corporate culture is expressed through ______, which are elements such as vocabulary and the type of clothing worn by employees.
artifacts
Which of the following is an example of the principal-agent problem even when the principal's goal is to create shareholder value?
a manager flying first class on all business trips
In team-based environments, the principal may have difficulty determining individual contributions by members. This can create a situation in which an opportunistic employee does little work but takes credit. This is known as ______.
adverse selection
Narrowly defining public stock companies in terms of financial performance can lead to ______.
black swan events
MNEs pursuing a ______ ocean strategy tend to also pursue a transnational strategy.
blue
Which of the following statements about formalization is true?
It is often necessary to achieve consistent and predictable results.
Long-term contracts typically last ______.
1 year or more
Samira works for a company with a strict top-down structure. Her daily tasks must conform carefully to written guidelines and rules, and she has very specific job responsibilities. Samira works for a(n) ______.
mechanistic organization
A situation in which one party has an incentive to shirk their responsibility because the costs will fall to the other party is known as ______.
moral hazard
Despite a growing belief in the death-of-distance hypothesis, there remains evidence that certain countries remain leaders in specific industries and maintain a kind of ______ advantage.
national competitive
Gunther is transferred from the United States to Hong Kong for work. He notices that his colleagues at the new office, most of whom are Hong Kong natives, behave and communicate in a similar manner that is a striking contrast to what Gunther is accustomed to. Gunther is observing his colleagues' ______.
national culture
Which of the following have significantly more value in their intended use than in their next-best use?
specialized assets
Which of the following is a federal regulatory agency whose task it is to oversee stock trading and enforce federal securities laws?
Securities and Exchange Commission
Which of the following is an example of invention?
Apple combining smart phone and wristwatch technologies to create the Apple Watch
How willing the firms in an alliance are to share necessary resources and make sacrifices in the name of long-term rewards is referred to as partner ______.
commitment
Who sets the tone for the ethical climate within an organization?
strategic leaders
Which of the following were black swan events that occurred in the early 21st century and helped reshape the global economy?
the European refugee crisis the European debt crisis the Global financial crisis
The benefits of competing on a global scale exist ______.
for an increasing number of firms
The type of innovation that focuses on improving an existing product by using existing technology and targeting existing markets is a(n) ______ innovation.
incremental
When a company introduces a new product or process or business model with the intent of gaining a competitive advantage, that company is engaging in ______.
innovation
Due to globalization, the world's market economies are becoming more ______.
integrated and interdependent
Peter's Pans makes cast-iron cookware. It decides to acquire another similar-sized cast-iron cookware company in the hope that its larger size will enable it to snag some market share away from Iron Maiden, the industry leader. What is Peter's Pans strategy?
Peter's Pans is trying to overcome competitive disadvantage.
Which of the following have helped make globalization possible? (Check all that apply.)
Reductions in transportation costs Falling trade barriers Advances in telecommunications
Using known components, based on existing technologies, in a new configuration to create a new market is known as ______.
architectural
A conceptual model that helps strategists choose between seeking internal development, entering into an alliance, or acquiring new resources, capabilities, and competencies is called the "______ framework."
build-borrow-or-buy
When supporting a related-diversification strategy with the M-form organizational structure, managers typically ______.
concentrate decision making at the top of the organization
The specific characteristics of needs in a firm's domestic market, such as customers who hold companies to a high standard of value creation and cost containment, are also called ______.
demand conditions
When facing an ethical dilemma, a manager should ______. (Check all that apply.)
determine whether he or she could comfortably defend the action to the public consider whether the action in question conforms to the firm's code of conduct and industry practices
Which of the following are types of vertical integration along the industry value chain? (Check all that apply.)
forward backward
Benicio's Burritos is a leader in the Mexican fast-food category in the United States. It decides to expand internationally, starting in Japan. Benicio's Burritos fails within a year, learning later that Mexican food is uncommon in Japan and that the flavor profiles are not compatible with Japanese palates. The failure of Benicio's Burritos can be attributed to which of the following?
liability of foreignness
Which of the following are characteristics of simple organizational structures? (Check all that apply.)
low formalization flat hierarchies single leader makes all important decisions
What three of the following are the primary benefits of horizontal integration?
lower costs increased differentiation a reduction in competitive intensity
Gaining new capabilities or competencies is one of the three main reasons companies ______.
make acquisitions
In the ______ stage of the industry life cycle, a few number of large firms compete for a share of a market that has reached its maximum size.
maturity
In comparison to other countries, the United States ranks ______ in terms of its acceptance of Milton Friedman's philosophy that "the social responsibility of business is to increase its profits."
near the middle
Which of the following factors helped make Germany, which was a tough environment for a car company, conducive to successful car companies?
no-speed-limit autobahn demanding customers fierce domestic competition
Graciela's used to be the industry leader in restaurant supplies, but over the years competition grew and the company's market share declined. Graciela's has launched several marketing campaigns and introduced new products and services. However not much else in the company has changed, and it still relies on the same team of managers. Graciela's is experiencing ______.
organizational inertia
When companies face a highly competitive environment at home, they are more likely to ______.
outperform global competition that lacks such intense domestic competition
The primary difference between outside and inside members of the board of directors is that ______.
outside directors are not employees of the firms, whereas inside directors are
Multinational enterprises that manufacture commodity products that focus on cost leadership tend to use a(n) ______ strategy.
global-standardization
When companies get involved in a bidding war and the winner overpays for the acquisition, the acquiring company has fallen victim to the ______.
winner's curse
Before World War II, business strategy, implementation, and knowledge typically flowed ______.
from domestic headquarters to outposts abroad
Companies pursuing business-level strategies like cost leadership, differentiation, and integration should organize using a _____ structure.
functional
