MGT491Exam1

Exporting is an expensive way to enter domestic markets. T/F

False

Within a worldwide market, the most effective strategies are purely multidomestic or purely global. T/F

False

Added insight and cultural sensitivity, and heterogeneity in decision making and problem solving are some of the arguments supporting _________ in the workplace. -role playing -brainstorming -diversity -social network analysis

diversity

Social capital is based on the skills and abilities of an individual employee, not on the network of relationships within a firm. T/F

False

______ teams complete tasks primarily through email communication. -email -online -networked -electronic

Electronic

Which of the following are the 5 measures on which a company's performance is judged/scored? -Credit rating, cumulative revenues, net profit, ROE, and the number of annual dividend increases -Global market share of worldwide branded and private-label revenues, ROE, net profit, stock price, and annual cash flow from operations -Annual cash flow from operations, cumulative revenues, global market share of worldwide branded and private-label revenues, cumulative net profit, and ROE -Earnings per share, ROE, global market share of worldwide branded and private-label revenues, stock price, and credit rating -Stock price, EPS, credit rating, ROE, and image rating

Stock price, EPS, credit rating, ROE, and image rating

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? -The new business must be similar to existing businesses to benefit from a core competence -The competence must help the business change its market position relative to its competition -The collection of competencies should be unique, so that they cannot be easily imitated -The new business must create superior value

The competence must help the business change its market position relative to its competition

An important implication of the balanced scorecard is that managers need to look at their job as primarily balancing stakeholder demands. T/F

True

Corporate retreats, according Ram Charan in the textbook, give companies an opportunity to look beyond their own industries to evaluate trends that could impact their own industries in the future. T/F

True

Expanding the global presence of a firm automatically increases its scale of operations. T/F

True

Geely acquired Volvo from Ford as a means of leverage core competencies in a bid to gain global recognition. T/F

True

If a supplier group is able to maintain a credible threat of forward integration, the power of suppliers will be enhanced. T/F

True

In value-chain analysis, primary activities include human resource management and procurement. T/F

True

Which of the following statement about the importance of each competitive factor (most particularly influential competitive factors like S/Q ratings, models/styles, and selling prices) in determining company sales volumes and market shares in a particular geographic region is false? -Big cross-company S/Q rating differences in a region always weigh heavily in accounting for company-to-company differences in branded pairs sold and market share in all four regions. -Tiny cross-company differences in competitive effort on a highly influential competitive factor (like S/Q ratings, the number of models/styles offered, and selling prices) nearly always have a farA BiggerA impact on company sales/market share outcomes in a region than do large differences on less influential competitive factors.A -As the spread between the company with the region's highest S/Q rating and the company with lowest S/Q rating becomes smaller and smaller, the weaker is the unit sales/market share impact of the differences in the S/Q rating among competing companies -In the rare instance that all companies should happen to have exactly the same S/Q ratings on their branded footwear in a region's wholesale and internet segments, then S/Q ratings become a total competitive nonfactor and have zero impact on buyer appeal for one company's brand versus another -How much company S/Q ratings matter in determining each company's unit sales/market share in a region is not a fixed amount but rather is an amount that varies from "big") to "small" (when S/Q rating differences are "small") to "zero" (when the S/Q ratings of rivals are identical.

Tiny cross-company differences in competitive effort on a highly influential competitive factor (like S/Q ratings, the number of models/styles offered, and selling prices) nearly always have a farA BiggerA impact on company sales/market share outcomes in a region than do large differences on less influential competitive factors.A

Which of the following is among the three competitive factors that impact only Internet sales and market share in a region? -Whether a company offers free shipping on buyer orders or requires customers to pay the shipping charges -The size of the per pair mail-in rebates on the purchases of online buyers -The number of branded models/styles that each company has designed and produced for exclusive sale at its regional websites--such models/styles cannot be obtained anywhere else -The celebrity appeal ratings of the celebrities who are under contract to endorse a company's branded footwear via videos, pictures, and commentary posted prominently at numerous locations on the company's regional websites -Company expenditures to support the online merchandising efforts of third-party online retailers of athletics footwear

Whether a company offers free shipping on buyer orders or requires customers to pay the shipping charges

Disney now intends to compete with its former distributors, Netflix and Amazon, by becoming a _______ diversified ________ integrated media player. -vertically; vertically -vertically; focused -narrowly; focused -broadly; vertically

broadly; vertically

Currency exchange rates are an example of which segment of the general environment? -demographic -sociocultural -political/legal -economic/global

economic/global

The retailer, Zara, is incorporating new technologies and processes to -becomes a less stodgy competitor -enhance its capability to meet evolving customer needs -only improve its brick and mortar inventories -only improve its online communication

enhance its capability to meet evolving customer needs

The four key attributes of strategic management do not include -directing the organization toward overall goals and objectives -having multiple stakeholders in decision making -excluding consideration of the trade-offs between efficiency and effectiveness -needing to incorporate short-term and long-term perspectives

excluding consideration of the trade-offs between efficiency and effectiveness

Which of the following is not an important element of the political/legal segment of the general environment? -tort reform -genetic engineering -Americans with Disabilities (ADA) -deregulation of utilities and other industries

genetic engineering

Airbus decided to build production capacity in China by manufacturing airplanes and working with many Chinese suppliers. What is the biggest risk the company faces with this decision? -lower international sales -increased competition -intellectual property theft -local strikes

increased competition

_______ capital can be defined as the difference between the market value and book value of a firm, or a measure of its intangible assets. -human -intellectual -social -personal

intellectual

Which would be the appropriate strategy for companies to use to compete in the global marketplace if the marketplace pressure is for lower costs with no pressure for local adaptation? -global strategy -international strategy -multidomestic strategy -transnational strategy

international strategy

Which of the following is not a reason that a manager should be familiar with the Porter five forces model? -it clarifies whether your firm should remain in or exit an industry -it helps justify changes in resources allocation -it suggests methods for discouraging new rivals from competing against your firm. -it identifies which demographic trends will be most import in the short term

it identifies which demographic trends will be most import in the short term

Which of the following is not a motivation for a company to pursue international expansion? -it wishes to increase the size of the potential market for its products and services -it wishes to take advantage of arbitrage opportunities in order to increase profit -it wishes to decrease foreign market penetration by developing products for the home market -it wishes to optimize value-chain activities to enhance performance, reduce costs, and reduce risk

it wishes to decrease foreign market penetration by developing products for the home market

Multinational firms are constantly faced with the dilemma of choosing between ______ and ________. -local adaptation; local integration -global adaption; local integration -local adaptation; global integration -global adaptation; global integration

local adaptation; global integration

Investor presentations of ________ provide an opportunity for discussions to take place regarding the continuing corporate performance on _______ value creation story and a _________ value creation plan. -short-term plans; short term; short term -short-term plans; long term; long term -long-term plans; short term; long term -long-term plans; long term; long term

long-term plans; long term; long term

What do effective vision statements include? -measures -massive inspiration -specific plans -leadership

massive inspiration

Microsoft has improved the ________ part of its value chain by providing formal reviews of its suppliers, which has helped to clarify expectations for them. -general administration -procurement -human resource management -technology development

procurement

Divesting of businesses can accomplish many different objectives, except. -providing the firm with fewer resources to spend on more attractive alternatives. -enabling managers to focus their efforts more directly on the core businesses of the firm. -raising cash to help fund existing businesses -providing the firm with increased cash resources

providing the firm with fewer resources to spend on more attractive alternatives

Business level strategy addresses two related issues: what businesses should a corporation compete in an dhow can these businesses be managed so that they create synergy. T/F

False

Costco Wholesale Corporation changed its generous return merchandise policy for electronic goods to 90 days and the company suggests having a receipt.. Why would such a policy change be necessary? -fraudulent returns were the majority of the returns -customers only returned malfunctioning items -Costco was losing money on this customer service -Costco had low stock levels

Costco was losing money on this customer service

A disadvantage of mergers and acquisitions is that they can enable a firm to rapidly enter new product markets. T/F

False

A golden parachute is a prearranged contract with managers specifying that, in the event of a hostile takeover, the target company managers will not be paid a significant severance package. T/F

False

In value-chain analysis, value is measured by total revenue. T/F

True

_______ ratios reflect whether a firm is efficiently using its resources. -activity -turnover -leverage -liquidity

turnover

A good manager can be flexible when it comes to sticking to the original plan; to get good results, the intended strategy has to become the realized strategy. T/F

False

A primary weakness of the balanced scorecard is that it fails to complement financial indicators with operational measures of customer satisfaction, internal processes, and the organization's innovation and improvement activities. T/F

False

Attracting top talent is not a challenge for many organizations. In the current economy, knowledge workers typically have a limited number of employment opportunities. T/F

False

Competitors, as internal stakeholders, should be included in the stakeholder management consideration of a company and in its mission statement. T/F

False

Global monitoring deals with tracking changes in environmental trends that are often uncovered during the environmental scanning process. T/F

False

Interrelationships both within and across organizational boundaries are used by corporations to improve their sustainability efforts. Top management is not involved in this process. T/F

False

Related diversification enables a firm to benefit from vertical relationships across different businesses in the diversified corporation by leveraging core competencies and sharing activities. T/F

False

The Toyota Research Institute is located in three major academic towns because future employees prefer to stay close to their universities for research. T/F

False

The main purpose of a corporation is to maximize short-term returns to all of its stakeholders. T/F

False

The task-first relationship with fellow employees, in which emotions and personal life are checked at the door, is becoming more common and essential with the current increased focus on efficiency. T/F

False

There is little relationship between CSR behaviors and consumer reaction to the products and services of the firm according to survey results listed in the Harvard Business Review. T/F

False

Typically, a firm has a substantial ability to control trends in its general environment-if it can predict them correctly. T/F

False

In 2012, Hewlett-Packard wrote off 9 billion USD of the 11 billion USD it paid for Autonomy, a software company that it purchased one year earlier. This is an example of a failed merger. T/F

True

Intellectual property rights are not as easy to define and protect as property rights for physical assets (e.g., plant and equipment). T/F

True

Offshoring takes place when a firm decides to shift an activity that they were previously performing in a foreign location to a domestic location. T/F

True

The aging of the U.S. population is both a demographic trend and a part of the economic segment of the general environment because it has implications for tax policies. T/F

True

The idea that organizations are not only accountable to stockholders but also to the community-at-large is known as social responsibility. T/F

True

Elements of a multidomestic strategy may facilitate the competitive advantage of ________ by decreasing shipping and transportation costs inherent in local production. -decentralization -centralization -uniformity -homogeneity

decentralization

Which of the following is not a reason for the rise in regional expansion? -decrease in the number of trading blocs and free trade zone -increase in the number of local customers -decreasing national trade restrictions -decreasing value of local taxes and tariffs

decrease in the number of trading blocs and free trade zone

Because_________ often make it possible for young firms to provide services that are equivalent or superior to an incumbent, a new entrant may be able to serve a market more effectively, with more personalized services and greater attention to product details. -backward and forward integration -entry barriers -digital technologies -strategic groups

digital technologies

All activities associated with transforming inputs into the final product form are known as ________ in the value chain. -just-in-time inventory management -outbound logistics -inbound logistics -operations

operations

These kinds of companies create value through management expertise in areas such as budgeting, planning, procurement, and human resource management. -restructured -leveraged -parent -competition

parent

In the ________ view of leadership, the leader is the key force in determining the success of an organization. -internal -external -romantic -personal

romantic

PPG emphasizes ______ in its strategic planning; it develops four alternative futures based on two key variables: the cost of energy and the extent of growth opportunities in emerging markets. -SWOT analysis -scenario analysis -Porter's five forces model -strategic groups

scenario analysis

An individual who uses the contacts they develop to pursue their own interests and agendas that may be inconsistent with the organization objectives is one potential downside of -electronic teams -social network analysis -social captial -mentoring

social capital

Which of the following is not one of the recommended criteria for strategic objectives? -sustainable -measurable -appropriate -realistic

sustainable

Managers use _______ for developing human capital. -the cascade approach -the trickle-down approach -training -the synchronized method

training