MAN 4900 Exam 2
The multidivisional structure was initially designed to produce three major benefits over the functional form. Which of the following is NOT one of the three benefits?
Aligning the corporate structure with the demands of global expansion
A strategy in which firms work together to achieve a shared objective is a:
Cooperative strategy
Associations such as the European Union, Organization of American States, and the North American Free Trade Agreement encourage:
Regional Strategies
After a leveraged buyout, __________ typically occur(s).
Selling of assets
The expenses incurred by firms trying to create synergy through acquisition are called __________ costs.
Transaction
The CEO of Skyco, a publicly traded company that has been earning below-average returns, has been publicly criticized by shareholders for persuading the board of directors to give her interest-free loans, for having the company purchase and furnish a lavish apartment in Paris for her personal use on her twice-yearly trips there, and for excessive stock options. The CEO's behavior may be an indication of:
a weak board of directors.
Historically, __________ have been at the center of the German corporate governance system.
banks
Among the value-neutral incentives to diversify, some come from the firm's external environment while others are internal to the firm. External incentives to diversify include:
changes in antitrust regulations and tax laws.
A(n) __________ cooperative strategy helps firms diversify in terms of products offered, markets served, or both.
corporate-level
Walmart's effective strategy/structure configuration is:
cost leadership/functional.
Firms seek to create value from economies of scope through all of the following EXCEPT:
de-integration.
Compared with downsizing, __________ has (have) a more positive effect on firm performance.
downscoping
Legitimately, a firm may pursue an international strategic alliance for all of the following reasons EXCEPT to:
enhance the compensation packages of top managers.
A strategic alliance in which the partners own different percentages of the new company they have formed is called a(n):
equity strategic alliance.
Institutional owners are:
financial institutions, such as mutual funds and pension funds, that control large-block shareholder positions.
Successful unrelated diversification through restructuring is typically accomplished by:
focusing on mature, low-technology businesses.
McDonald's, Hilton International, and Subway all license their trademarks and methods to other businesses. In doing so, they rely on the __________ strategy.
franchising
Managerial motives to seek diversification beyond value-creating and value-neutral levels include a desire to:
increase compensation.
Generally, a board member who is a source of information about a firm's day-to-day activities is classified as a(n) __________ director.
inside
Ownership concentration is determined by both the number of:
large-block shareholders and the total percentage of shares they own.
The Mars acquisition of the Wrigley assets was part of its related constrained diversification and added market share to the Mars/Wrigley integrated firm. It allowed Mars to gain __________ because it could sell its products above the market level or reduce its costs below the market level.
market power
The presence of barriers to entry in a particular market will generally make acquisitions __________ as an entry strategy.
more likely
Burgess Corp. manufactures a line of heavy construction equipment. The company has announced a contractual relationship with FS Electronics whereby FS will supply Burgess with advanced GPS navigation and guidance systems. These systems will be an option on all bulldozers, dump trucks, and road graders Burgess produces. Which of the following types of alliance is this?
nonequity strategic alliance
The Publicis Groupe has three major groups of business (advertising, media, and digital) that share resources and activities. The Publicis Groupe is using a(n) __________ diversification strategy.
related constrained
A leveraged buyout refers to a(n):
restructuring action whereby a party buys all of the assets of a business, financed largely with debt, and takes the firm private.
Firms participate in strategic alliances for all of the following reasons EXCEPT to:
retain tight control over intangible core competencies.
Typically, an organization using a simple structure would be:
small
A firm may narrow its focus to a specific region of the world:
so that it can better understand the cultures, legal and social norms, and other factors that are important for effective competition in those markets.
Factors of production in Porter's model of international competitive advantage include all of the following EXCEPT:
supporting industries
When the target firm does not solicit the acquiring firm's bid, it is referred to as a(n):
takeover or unfriendly acquisition.
Monitoring by shareholders is usually accomplished through:
the board of directors.
In China, Starbucks is standardizing its operations while simultaneously decentralizing some decision-making responsibility to local levels to meet customers' tastes. Starbucks is following the __________ international corporate-level strategy.
transnational
In a merger:
two firms agree to integrate their operations on a relatively coequal basis.
All of the following are international corporate-level strategies EXCEPT the __________ strategy.
universal
All of the following complicate the implementation of an international diversification strategy EXCEPT:
widespread multilingualism.
