MGT 3830 Ch. 8-10 Test Bank
Share option schemes go wrong when: @Pages and References: Pages 420-421 a. Bad senior managers manipulate reported profits b. Customers and suppliers cut out the firm and deal with each other directly c. Employees sue the government d. Employees become customers
a. Bad senior managers manipulate reported profits
Today's high levels of interconnectedness result from high levels of: @Pages and References: Pages 465-466 a. Global trade, interest and exchange rate flexibility, and speed of communication b. Global trade, unemployment and inflation c. Government and private sector debt, and today's high speed of communication d. Answers b and c
a. Global trade, interest and exchange rate flexibility, and speed of communication
International retailing has generally not succeeded because: @Pages and References: Pages 391-392 a. It should be a pleasurable experience that varies with national cultural differences b. It should be a pleasurable experience unless you have no money c. Retailers find it hard to get the same products at the same prices around the world d. Retailers find it hard to replicate the same logistic systems around the world
a. It should be a pleasurable experience that varies with national cultural differences
Johnson says that a corporate culture includes a firm's: @Pages and References: Page 442 a. Mission and values, rituals, routines and myths b. Human Resource goals, values and stories c. Marketing objectives, strategic goals and financial targets d. Answers b and c
a. Mission and values, rituals, routines and myths
Total Quality Management requires that employees receive: @Pages and References: Page 437 a. Regular, timely, feedback on their performance b. Regular, timely, feedback on the quality of the whole firm's output c. Immediate quality control reports d. Reports that predict future quality
a. Regular, timely, feedback on their performance
The practical importance of budgets is that: @Pages and References: Pages 439-440 a. Senior executives and divisional managers are held accountable against the figures in these budgets b. The CEO is accountable to shareholders and analysts against these detailed predictions c. The individual figures don't matter, it is the process by which the numbers were reached that matters d. Answers a and b
a. Senior executives and divisional managers are held accountable against the figures in these budgets
The rule to decide which of these four has priority is: @Pages and References: Pages 427-428 a. The individuals with the highest need to coordinate must work in the same unit b. The individuals with the highest need to control resources should work in the same unit c. Those with the highest need to meet customers should work in the same unit d. Either of answers b or c
a. The individuals with the highest need to coordinate must work in the same unit
A firm's culture could be shown by: @Pages and References: Pages 446-448 a. The way a customer complaint is handled b. The firm's profitability c. The growth rate of profits d. How rapidly its financial results are produced
a. The way a customer complaint is handled
Corporate governance refers to: @Pages and References: Pages 467-468 a. The way that a company is directed, administered and controlled at the top b. The company's internal rules governing how members of the Board must behave c. The set of national laws concerning the general ways companies are run d. Answers b and c
a. The way that a company is directed, administered and controlled at the top
Consumer electronics (laptops, personal devices etc.) are an example of: @Pages and References: Pages 369-371 a. A multi-domestic industry b. A global industry c. A trading industry d. The phishing industry
b. A global industry
On expanding into the USA, IKEA changed: @Pages and References: Pages 364-369 a. Kept its markets and products unchanged b. Made minimal changes to its products and processes c. Consciously changed its culture but not its products d. Changed its products but not its culture
b. Made minimal changes to its products and processes
A matrix structure means a firm is formally organized by: @Pages and References: Pages 431-433 a. Executive Committees b. Products, geography and functions simultaneously c. Products, functions and structure simultaneously d. Either of answers a or c
b. Products, geography and functions simultaneously
The advantage of alliances is that they: @Pages and References: Pages 385-387 a. Allow firms to economize on resources b. Allow firms access to specialized resources or capabilities c. Answers a and b d. Keep all strategic options open
c. Answers a and b
In a weak culture: @Pages and References: Page 442 a. People interpret a senior manager's statement or signal differently b. People hold contrary views on how they should behave at work c. Answers a, b or both d. Non-aggression and meekness are espoused and practiced by all staff
c. Answers a, b or both
Emotional intelligence is: @Pages and References: Page 469 a. Social awareness, social skills, self-awareness and self-management b. Self-awareness, self- management, emotional training and emotional control c. Emotional training, emotional control, social skills and social awareness d. Self-awareness, self-management, integrity and initiative
a. Social awareness, social skills, self-awareness and self-management
A functional structure means individual departments: @Pages and References: Page 430 a. Provide only a basic service to all the others b. Do the same kind of activity or task c. Adopt the same general approach d. Focus on producing one product each
b. Do the same kind of activity or task
Two mechanisms promote internationalization: @Pages and References: Pages 362-364 a. Inter-governmental bond borrowing, and inter-bank capital flows b. Inter-bank capital flows and trade c. Inter-bank capital flows and direct investment d. Direct investment and trade
d. Direct investment and trade
"Psychic distance" is the least between: @Pages and References: Pages 369-371 a. The USA and Canada b. The USA and the UK c. The USA and the UAE d. Guinea-Bissau and Papua New Guinea
a. The USA and Canada
An advantage of internationalizing can be: @Pages and References: Pages 387-390 a. To learn from the fiercest competition or most demanding customers in the world b. To drive the fiercest competitors in the world into bankruptcy c. To teach the most demanding customers in the world a lesson d. Answers a and b
a. To learn from the fiercest competition or most demanding customers in the world
Internationalization opens: @Pages and References: Pages 362-364 a. Borders for foreign b. Doors for commercial spies c. Domestic markets to foreign competitors d. Answers a and c
c. Domestic markets to foreign competitors
The basis for different structures is different ways of organizing: @Pages and References: Pages 446-448 a. The Board of Directors b. The firm's core processes c. Hierarchies within the firm d. Relationships between departments
c. Hierarchies within the firm
Ultimately business leaders have got to: @Pages and References: Pages 468-470 a. Tend the emotional climate of the organization b. Provide meaning for the typical employee's aspirations c. Unify and inspire their employees d. All of the above
d. All of the above
A long-term underlying cause of the financial crisis was: @Pages and References: Pages 459-462 a. 'Light touch' regulation which encouraged financial innovation b. Lehman Brothers c. Increased lending by Chinese savers d. Governments selling CDOs
a. 'Light touch' regulation which encouraged financial innovation
The diagram illustrating the optimal location of value chain activities shows that: @Pages and References: Pages 380-382 a. At least five factors need to be considered b. Having the lowest costs is the main factor c. Each stage can be looked at on its own d. Answers b and c
a. At least five factors need to be considered
A symbol of TNCs acting differently from MNCs is: @Pages and References: Pages 397-399 a. Creating or moving divisional or corporate headquarters out of the firm's country of origin b. Developing product logos that are globally recognizable c. Listing the company's shares on several global stock markets d. All of the above
a. Creating or moving divisional or corporate headquarters out of the firm's country of origin
Porter's national diamond identifies some factors that: @Pages and References: Pages 373-375 a. Determine a country's competitive advantage for a sector b. Determine a country's national income c. Determine the growth rate of a country's national income d. Determine the growth rate of its exports
a. Determine a country's competitive advantage for a sector
At BP, before Deepwater Horizon, drilling risks were evaluated: @Pages and References: Pages 441-442 a. Differently by managers and engineers, who belonged to different sub-cultures b. By big game hunters who 'shot from the hip' c. By managers who were too frightened d. By people on the wrong side of the Atlantic Ocean
a. Differently by managers and engineers, who belonged to different sub-cultures
In international industries competitive advantage often means a firm will: @Pages and References: Pages 372-373 a. Emerge from a strong national environment in this industry b. Overcome natural disadvantages in this industry, so that only the very strongest firms emerge internationally c. Use Porter's diamond as a strategic roadmap d. Pawn Porter's diamond and trade on the margin (but close out before margin call)
a. Emerge from a strong national environment in this industry
When a natural disaster occurs in the twenty-first century: @Pages and References: Pages 462-463 a. Financial markets and global economies react rapidly - sometimes with dire effects b. Global financial markets go into meltdown c. Most people and governments ignore pleas for help d. It has little effect outside the region concerned
a. Financial markets and global economies react rapidly - sometimes with dire effects
The 'equity' problem is: @Pages and References: Page 464 a. Fundamentally about the distribution of income in the capitalist system, and what seems fair given different people's inputs b. About banks' inadequate reserves of equity compared to their debt funding from savers c. About excessive gearing generally in the financial system, and the failure of global regulators to ensure adequate reserve ratios d. The old agency problem: shareholders being ripped off by managers giving themselves bonuses that are far too generous
a. Fundamentally about the distribution of income in the capitalist system, and what seems fair given different people's inputs
If well-designed, share options can be a way of aligning the: @Pages and References: Pages 420-421 a. Interests of managers with those of shareholders b. Customers' interests with those of suppliers' c. Employees' interests with those of government d. Customers' interests with those of employees
a. Interests of managers with those of shareholders
The tomato grower example reminds us that: @Pages and References: Pages 470-471 a. It may be better to keep open more valuable later options than to cash in certainties now b. Judging future values requires patience and faith c. Discounting future values is never straightforward d. Gardening metaphors are of little use in business
a. It may be better to keep open more valuable later options than to cash in certainties now
Knowledge-based assets are best exploited through: @Pages and References: Page 388 a. Replicating the product or service in other countries or markets b. Internationalizing the product or service c. A focus strategy d. Moving employees around every two years
a. Replicating the product or service in other countries or markets
The 200-year-old quote from Adam Smith's early industrial pin factory illustrates: @Pages and References: Page 420 a. The gains to be had from task specialization b. The usefulness of 200-year-old economics textbooks c. How technology has progressed in 200 years d. Answers a and b
a. The gains to be had from task specialization
Trading industries are distinguished by: @Pages and References: Pages 369-371 a. The widespread practice of importing and exporting b. The widespread practice of moving capital investments from one country to another c. The tendency for employees to move from one country to another d. All of the above
a. The widespread practice of importing and exporting
Realized strategies are the result of: @Pages and References: Pages 414-416 a. Top managers' conscious strategic choices and middle managers' thousands of daily operational decisions b. Top managers' Board Room constraints and middle managers' daily implementation processes c. The firm's strategic position and its owners' long term vision d. The firm's environment and its strategic strengths and weaknesses
a. Top managers' conscious strategic choices and middle managers' thousands of daily operational decisions
In global industries: @Pages and References: Pages 369-371 a. Trade and direct investment are both important b. Firms trade commodities globally c. Capital is traded globally d. Employees move globally
a. Trade and direct investment are both important
That Tata Motors should stay in India and export its cars round the world shows that: @Pages and References: Pages 382-385 a. Where a firm's competitive advantage is based on national resource advantages it should not move production abroad b. If a firm's advantage is based on a strong local market it should keep production there c. Exporting is the optimal strategy for Tata d. Most companies should follow the cost leader's example
a. Where a firm's competitive advantage is based on national resource advantages it should not move production abroad
The Enron scandal featured: @Pages and References: Page 461 a. A crude oil ship, the Valdez, that ran aground b. A company that falsified its accounts from top to bottom of its main financial statements c. A rogue trader who bankrupted his firm d. A financier who stole money from rich clients including Hollywood stars, politicians and a wealthy dog
b. A company that falsified its accounts from top to bottom of its main financial statements
Comparative advantage refers to: @Pages and References: Pages 372-373 a. A country's absolute efficiency in producing goods or services b. A country's relative efficiency in producing goods or services c. A country's total efficiency in producing goods or services d. A country's inefficiency in producing goods or services
b. A country's relative efficiency in producing goods or services
At the heart of the Enron and Worldcom scandals was: @Pages and References: Pages 464-465 a. A fraud by businessmen purporting to be more qualified than they actually were b. A fraud by Directors and senior managers involving accounts with overstated profits c. A series of increasingly daring financial raids that was ultimately bound to fail d. Bribery and corruption of government officials
b. A fraud by Directors and senior managers involving accounts with overstated profits
An adhocracy describes the kind of structure found in: @Pages and References: Page 434 a. A modern retail chain of supermarkets b. A research lab or new product development group - such as much of Google or Microsoft c. A prestigious firm of Latin-speaking lawyers d. A private hedge fund of financial traders with clear trading rules and limits
b. A research lab or new product development group - such as much of Google or Microsoft
Schein says that corporate culture can be understood: @Pages and References: Page 442 a. At three levels: artificial constructs, values and explicit statements b. At three levels: artefacts, values and tacit beliefs c. As being at the intersection of personal, corporate and national values d. The acme of inimitable competitive advantage
b. At three levels: artefacts, values and tacit beliefs
To sum up, strategy in practice may differ from top management's vision: @Pages and References: Pages 446-448 a. But not by much b. Because staff enact it, and they are influenced by the firm's structure, systems and culture around them c. Because staff enact it but they are not as experienced as top managers d. Because top management has failed to explain sufficiently clearly what it wants
b. Because staff enact it, and they are influenced by the firm's structure, systems and culture around them
Tappin and Cave argue that the quality most needed by today's leaders is: @Pages and References: Page 469 a. Integrity b. Bonds of fellowship between the top management team c. Close intellectual ties to the Chairman of the Board of Directors d. Energy
b. Bonds of fellowship between the top management team
Hamel argues that modern business leaders need to be: @Pages and References: Pages 468-470 a. All-wise decision makers and iron-fisted disciplinarians b. Constitution writers, social architects and entrepreneurs of meaning c. Information system architects and social entrepreneurs d. IT architects, constitutional experts and successful entrepreneurs
b. Constitution writers, social architects and entrepreneurs of meaning
By persuading employees to adopt common values of the firm's culture, managers aim to: @Pages and References: Page 423 a. Brainwash their gullible juniors b. Get all employees to align their actions to achieve company goals independently - reducing the need for close supervision c. Persuade employees to buy the firm's shares d. Propagate their own moral and religious views
b. Get all employees to align their actions to achieve company goals independently - reducing the need for close supervision
"Appropriating the returns to a resource" means: @Pages and References: Pages 382-385 a. Having some of the resources and capabilities needed to able to earn a higher potential profitability from your unique resources b. Having all of the resources and capabilities needed to earn a higher potential profitability c. Obtaining workers for the lowest wage possible d. Ensuring that capital earns the full cost of capital
b. Having all of the resources and capabilities needed to earn a higher potential profitability
Meeting the 'triple bottom line' refers to: @Pages and References: Pages 466-467 a. Having acceptable profits, balance sheets and cashflows b. Having an adequate performance economically, socially and environmentally c. Satisfying all three of your main stakeholder groups simultaneously d. Producing satisfactory financials for this year, next year, and the medium term future
b. Having an adequate performance economically, socially and environmentally
In its first, largely European, phase of internationalization IKEA: @Pages and References: Pages 364-369 a. Kept its markets and products unchanged b. Made minimal changes to its products and processes c. Consciously changed its culture but not its products d. Changed its products but not its culture
b. Made minimal changes to its products and processes
Competitive advantage is achieved when a firm: @Pages and References: Pages 371-372 a. Achieves higher profit margins than its rivals b. Matches its strongest resources & capabilities to the key success factors of the industry c. Achieves the highest asset turnover ratio in the industry d. Answers b and c
b. Matches its strongest resources & capabilities to the key success factors of the industry
If a rival uses cash flows from one country to finance aggressive pricing in another: @Pages and References: Pages 389-390 a. This is illegal under World Trade Organization rules b. Now is the time to attack his high-price markets and grow your market share there c. You must retaliate in the price war - or drop all your strategic goals in this country d. Stay out of this price war
b. Now is the time to attack his high-price markets and grow your market share there
Digital technologies are causing: @Pages and References: Pages 462-463 a. The forces of rivalry to weaken b. The forces of rivalry to strengthen c. Entry barriers in most industries to rise d. Substitution alternatives to weaken
b. The forces of rivalry to strengthen
A good strategic plan is less important than: @Pages and References: Pages 437-439 a. A good month's financial results b. The process of strategic planning c. A good Chief Finance Officer d. A good Chief Human Resources Officer
b. The process of strategic planning
Corporate culture typically means: @Pages and References: Page 442 a. The firm's official ethical position on issues such as bribery, equal rights and the environment b. The values and ways of thinking the firm's senior managers wish to encourage c. A derogatory term for junior employees, likening them to a growth on a Petri dish d. The diverse cultural patterns that exist in the informal organization
b. The values and ways of thinking the firm's senior managers wish to encourage
Being international can be a source of competitive advantage if: @Pages and References: Page 388 a. Your product or service is tradable b. There are significant economies of scale in your industry c. Your customers only consider local conditions a. Answers a and b
b. There are significant economies of scale in your industry
Firms can use a value chain analysis of their industry: @Pages and References: Pages 380-382 a. As the basis of their customer segmentation b. To divide and locate production between countries with different natural resources that suit each stage of production c. To identify the profitability of production at each stage of the firm value chain d. To definitively categorize their suppliers
b. To divide and locate production between countries with different natural resources that suit each stage of production
The Nokia example shows that: @Pages and References: Page 444 a. Engineers boast too much b. Too strong an internal culture can blind a firm to what its customers really want c. There is no market for phones called the "AJ473X" or anything like it d. A period of outstanding commercial success usually leads to excessive pride - arrogance
b. Too strong an internal culture can blind a firm to what its customers really want
Realized strategies are a mix of: @Pages and References: Pages 414-416 a. Practice and theory b. Unintended and intended actions c. Intended and unintended successes d. Dreams, despair and cynical calculation
b. Unintended and intended actions
The original cause of the Great Recession was: @Pages and References: Pages 459-462 a. A tsunami in the Pacific Ocean b. The 'Euro' crisis c. A financing failure in the US housing market d. Government borrowing rising out of control
c. A financing failure in the US housing market
In a multidivisional structure each division is responsible for: @Pages and References: Pages 430-431 a. A major market or country b. A major function or task of the firm c. All functions necessary to produce one range of products d. Either of answers a or b
c. All functions necessary to produce one range of products
Competing strategically means: @Pages and References: Pages 389-390 a. Defeating the Gauls, Goths and Barbarians b. Using profits from one country to subsidize a price war in another country c. Answer b and subtler versions of the same principle d. Using tactics drawn from military manuals
c. Answer b and subtler versions of the same principle
The main management systems that can affect how strategy is implemented are: @Pages and References: Pages 446-448 a. Information and human resource management systems b. Strategic and financial planning systems c. Answers a and b d. Strategic, financial, operational and marketing planning systems
c. Answers a and b
Tradability refers to the idea that: @Pages and References: Pages 378-380 a. Some products or services are almost impossible to export or import b. Some goods have to be produced where they are consumed: eating a meal in a restaurant would be a good example c. Answers a and b both illustrate the idea of tradability d. All other answers are wrong; tradability simply means the shipping cost as a percentage of the sales price
c. Answers a and b both illustrate the idea of tradability
If banks lack 'social legitimacy' they: @Pages and References: Pages 463-465 a. Have balance sheets which, though legal, are weaker than society expects b. Have not paid enough money into fashionable charities and swanky dinners c. Are perceived by society to have equity, ethical and/or sustainability problems d. Are perceived by society to have equity, gearing and sustainability problems
c. Are perceived by society to have equity, ethical and/or sustainability problems
For the theory of comparative advantage a country's innate national endowments include its: @Pages and References: Pages 372-373 a. Climate, labour and exports b. Climate, labour and its steel industry c. Climate, minerals, history and culture d. Climate, labor and its financial wealth
c. Climate, minerals, history and culture
When considering where to locate production globally: @Pages and References: Pages 378-380 a. Exporting firm-specific competitive capabilities from home territory is easy b. Exporting firm-specific competitive capabilities from home territory is practically impossible c. Exporting firm-specific competitive capabilities from home territory requires close attention and may not even be possible d. None of the above
c. Exporting firm-specific competitive capabilities from home territory requires close attention and may not even be possible
Ways to group employees in international multiproduct companies include by: @Pages and References: Pages 427-428 a. Geography, Products, Processes, and People b. Geography, Products, Tasks and People c. Geography, Products, Tasks and Processes d. Geography, Products, Stars and Cash Cows
c. Geography, Products, Tasks and Processes
The 'cooperation problem' is: @Pages and References: Pages 420-424 a. How to persuade customers to cooperate with each other when supplies are scarce b. How to get workers to coordinate their actions so that something is produced on time c. How to align the interests of the different participants who make up a firm d. How to get rival commercial firms to cooperate during disasters or emergencies
c. How to align the interests of the different participants who make up a firm
A country has a comparative advantage: @Pages and References: Pages 372-373 a. In producing milk if its cows are heavy milk producers b. In producing mobile phones if it has a big timber industry c. In producing those products or services that make intense use of those resources in which it has a relative abundance d. In producing those products or services that make intense use of those resources for which it has the lowest domestic demand
c. In producing those products or services that make intense use of those resources in which it has a relative abundance
Internationalization has: @Pages and References: Pages 362-364 a. Increased global efficiency but reduced consumer choice b. Increased global efficiency and growth options for large and small firms c. Increased global efficiency and growth options, and widened consumer choice d. Increased global efficiency and growth options but reduced consumer choice
c. Increased global efficiency and growth options, and widened consumer choice
If keeping strategic options open has real value then: @Pages and References: Pages 470-471 a. Keeping strategic financial options open has even more value b. Customers should pay you if they close down options c. Investments in industries with heavy sunk costs, such as water treatment, are less valuable than the same sum invested in a chain of shops d. School teachers should be paid more
c. Investments in industries with heavy sunk costs, such as water treatment, are less valuable than the same sum invested in a chain of shops
Sheltered industries are protected from: @Pages and References: Pages 369-371 a. Imports b. Imports and Exports c. Inward direct investment and imports d. Direct and Indirect inward investment
c. Inward direct investment and imports
After BP moved from strategic controls to financial controls: @Pages and References: Pages 440-442 a. Financial controllers like John Brown rose to the top b. Environmental worries were completely ignored c. Operational managers were being asked to trade off savings that were certain against risks they thought very unlikely d. The company withdrew from all risky exploration activities
c. Operational managers were being asked to trade off savings that were certain against risks they thought very unlikely
The commonest ways to achieve coordination are to use: @Pages and References: Pages 424-426 a. Laws, deterrents and an internal 'police force' b. Frequent short meetings with tight agendas c. Rules, routines and mutual adjustment d. Answers b and c
c. Rules, routines and mutual adjustment
In an adhocracy a person: @Pages and References: Page 434 a. Specializes in one role b. Performs at least two roles simultaneously c. Switches between roles as needed by the team at that period in the project's life d. Has no role at all, but performs whichever task the group decides to do that day
c. Switches between roles as needed by the team at that period in the project's life
In this chapter we examine how three key factors shape and are shaped by strategy: @Pages and References: Pages 414-416 a. Purpose, structure, and culture b. Values, structure and culture c. Systems, structure and culture d. Structure, structure and structure - it's all about structure!
c. Systems, structure and culture
Transnational corporations (TNCs) differ from multinational corporations (MNCs) in that: @Pages and References: Pages 397-399 a. They have different kinds of internal financial reconciliation processes b. TNCs are a globally integrated network of independent profit centers c. TNCs are a globally integrated network of independent resources and capabilities d. There is no real difference
c. TNCs are a globally integrated network of independent resources and capabilities
The main components of financial plans are: @Pages and References: Pages 439-440 a. The Income Statement and the Balance Sheet b. The Balance Sheet and the Cashflow forecast c. The capital budget and the operating budget d. All of the above
c. The capital budget and the operating budget
The Philips example of developing TVs around the world shows: @Pages and References: Pages 397-399 a. How a good TNC can exploit its unique global resources b. The scale and scope of resources needed to compete in this industry nowadays c. The dangers of failing to integrate development properly d. The problems of decentralized European TNCs
c. The dangers of failing to integrate development properly
One might expect corporate culture to be at least partly summarized in: @Pages and References: Page 442 a. A firm's Prospectus to Shareholders b. The latest quarterly earnings statement c. The staff handbook given to all new joiners d. A firm's Disciplinary Procedures
c. The staff handbook given to all new joiners
The "triad doctrine" no longer works because: @Pages and References: Pages 389-390 a. The triads were wiped out in the 1990s b. Linking to organized crime doesn't work because it is actually not well organized c. The world now has more than three major economic centres d. In reality there is no such thing as an economic centre of activity
c. The world now has more than three major economic centres
For most of the last sixty years internationalization has been: @Pages and References: Pages 362-364 a. A source of increased tension between countries b. A source of innovative ideas for firms and individuals c. A source of higher earnings for firms and individuals d. A source of opportunity for firms and individuals
d. A source of opportunity for firms and individuals
Besides demand conditions the other factors in Porter's national diamond are: @Pages and References: Pages 373-375 a. Strategy, structure and rivalry, such as intense domestic competition b. Factor conditions, such as the scarcity or abundance of certain resources c. Related and supporting industries, such as clusters of complementary or supporting industries d. All of the above
d. All of the above
The people who might profitably use a Porter's national diamond analysis are: @Pages and References: Pages 373-375 a. Policymakers, such as politicians and civil servants b. The Boards of companies when deciding where to locate their major resource centers (Corporate HQ, R&D labs, Marketing etc.) c. Venture Capitalists when influencing where a start-up company should locate itself d. All of the above
d. All of the above
For a modern country innate resources include: @Pages and References: Pages 372-373 a. Management, developed capital markets and an efficient legal system b. A large home market, and good transport and communication facilities c. Large military forces and a space capability d. Answers a and b
d. Answers a and b
Many MNCs are 'captives of their history' because: @Pages and References: Pages 395-397 a. Structure follows strategy, and their original strategies may now be irrelevant b. Once you have established them successfully, it is hard to change both international structures and strategies c. Strategy follows structure, so they have to adapt their global strategies to the reality of global political structures d. Answers a and b
d. Answers a and b
A Ponzi scheme: @Pages and References: Pages 464-465 a. Is guaranteed a minimum income b. Pays "returns" to savers out of capital paid in from new investments or new investors c. Is guaranteed to fail eventually d. Answers b and c
d. Answers b and c
The Deepwater Horizon oil spill taught us that: @Pages and References: Pages 416-419 a. Giant firms are often too ambitious b. Even the most professional risk plans can ignore some major risks c. Confused responsibilities can emerge from trying to coordinate complex teams and systems d. Answers b and c
d. Answers b and c
Sheltered industries are protected by their: @Pages and References: Pages 369-371 a. Perishability b. Transport difficulties and high transport costs c. Very small size of operation and lack of scale economies d. Any of the above
d. Any of the above
The hypothetical link between culture and a company's performance has not been statistically demonstrated yet because: @Pages and References: Pages 444-446 a. It's a very weak link at best b. It's such an indirect link: culture affects people which affects actions which affect financial results c. No-one can control a company's culture: it just grows, or not, as fate determines d. Both 'culture' and 'relative company performance' are hard to measure statistically across many firms
d. Both 'culture' and 'relative company performance' are hard to measure statistically across many firms
Whether formal or informal, all strategic planning systems: @Pages and References: Pages 437-439 a. Describe the company's ultimate goals b. Map stakeholders' influence on the company c. Coordinate financial results within a company d. Coordinate plans within a company
d. Coordinate plans within a company
Alliances usually go wrong if: @Pages and References: Pages 385-387 a. Firms squabble over the contributions and returns from the alliance b. Each firm really wants to acquire the other's core capabilities c. The firms are Customer and Supplier d. Either answers a or b
d. Either answers a or b
International strategic alliances allow: @Pages and References: Pages 385-387 a. Governments to share national resources b. Retailers to control their suppliers c. Strong firms to dominate weak ones without having to buy them d. Firms to share resources and capabilities
d. Firms to share resources and capabilities
Multi-domestic industries: @Pages and References: Pages 369-371 a. Are distinguished by their focus on products for the domestic sector b. Have very high transport costs c. Supply standard products around the world with instructions in the local language d. Internationalize though direct investment
d. Internationalize though direct investment
To bring labor specialization to a productive conclusion firms need to implement structures and systems that: @Pages and References: Pages 446-448 a. Command and Control employees b. Control and Coordinate employees c. Coordinate and Command employees d. Make employees Coordinate their actions and Cooperate with other stakeholders
d. Make employees Coordinate their actions and Cooperate with other stakeholders
The strategic worry about short-termism is that: @Pages and References: Pages 466-467 a. Managers focus on short-term sales targets and are not concerned about profits b. Managers focus too much on short-term economic conditions and not on profits c. Managers focus too much on immediate operations, and not on strategic issues d. Managers focus too much on headline profitability and not enough on the underlying causes of it
d. Managers focus too much on headline profitability and not enough on the underlying causes of it
HR Management systems need to: @Pages and References: Pages 440-442 a. Record who is on the payroll and how much they get paid b. Keep a track of sick leave and holidays due and taken c. Monitor each employee's performance every day d. Set goals, create incentives, and monitor the performance of every individual
d. Set goals, create incentives, and monitor the performance of every individual
The coordination problem is: @Pages and References: Pages 424-426 a. Aligning the outputs of different divisions in a group b. Harmonizing the conflicting requirements of marketing, financial and operational plans c. Uniting the conflicting goals of all the firm's stakeholders d. Unless employees coordinate their efforts nothing will get produced
d. Unless employees coordinate their efforts nothing will get produced
Hairdressing is traditionally an example of: @Pages and References: Pages 369-371 a. A domestic industry b. A multi-domestic industry c. A declining industry d. A sheltered industry
d. A sheltered industry
