SM Exam 2 (Final)
Which of the following is not part of a culture of entrepreneurship? Every value chain activity is viewed as a source of entrepreneurial value creation. A select staff are assigned to be attuned to new opportunities to create business. The search for venture opportunities permeates every part of the organization. Employees at every level are attuned to opportunities to help create new businesses.
A select staff are assigned to be attuned to new opportunities to create business.
________ are private individuals who provide seed capital to young ventures. Cash cows Rising stars Gazelles Angels
Angels
In choosing sides concerning CEO duality, two schools of thought exist. Which of the following would not be a consideration for the Unity of Command school of thought? CEO duality creates unity across the board of directors and managers of a company. One person holding both roles will be able to act more efficiently and effectively. CEO duality provides smoother strategic decision making. CEO duality slows down decision making.
CEO duality slows down decision making.
________ is the intense rivalry involving actions and responses among similar competitors vying for the same customers in a marketplace. Resource similarity Competitive dynamics The threat of substitutes Pioneering new entry
Competitive dynamics
Which of the following statements about simple organizational structures is false? Creativity and individualism are rare. Decision-making authority is highly centralized. There is little specialization of tasks. Small firms with a narrow product-market scope will adopt such a structure.
Creativity and individualism are rare.
Which of the following statements about ethics is false? Ethics may be defined as a system of right and wrong. Ethics assists individuals in deciding when an act is moral or immoral. Business ethics is the application of ethical standards to commercial enterprises. Ethics can be assessed by the legality of an action.
Ethics can be assessed by the legality of an action.
________ involves building entrepreneurial businesses within existing corporations. Insourcing Intrapreneurship On-shoring Entrepreneurship
Intrapreneurship
Brent Beshore, CEO of adventur.es, a private investment firm, walks around the office every day thanking people for their contributions. What purpose does this serve in terms of attaining behavioral control? It demonstrates to employees the importance of articulating explicit goals and objectives. It helps reinforce and sustain the adventures culture. It makes the adventur.es reward system very explicit. It reminds employees of adventur.es rules and regulations.
It helps reinforce and sustain the adventures culture.
Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations. Which of the following is not a technique for moving in that direction? Align reward systems with organizational goals and objectives. Hire people who identify with the dominant values of the organization. Develop managerial role models. Minimize training and indoctrination.
Minimize training and indoctrination.
________ occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in-house. A global strategy Offshoring A transnational strategy Outsourcing
Outsourcing
Which of the following is an advantage of a functional type of organizational structure? Decentralized decision-making enhances an organization-wide perspective across functions. It is easy to establish uniform performance standards. Pooling of specialists enhances coordination and control. It facilitates the development of general management talent.
Pooling of specialists enhances coordination and control.
________ are fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark, patent, trade secret, technology). Dividends Royalties Intra-corporate inflows Transfer prices
Royalties
Which of the below best describes the competitive tendencies of small firms? Small firms typically have more resources available as they undertake competitive attacks than do large firms. Small firms tend to signal their competitive actions long before they launch those actions because they lack legitimacy in the marketplace. Small firms are more nimble and cannot respond quickly to competitive attacks. Small firms are more nimble and can respond quickly to competitive attacks.
Small firms are more nimble and can respond quickly to competitive attacks.
________ provide(s) a key avenue for growth for many young and small firms through partnering to obtain resources and to expand into new markets. Funding Banking Strategic alliances Research and development
Strategic alliances
________ are obstacles in which the design of organization structure, information processing, and reporting relationships, impede the proper flow and evaluation of information. Systemic barriers Political barriers Behavioral barriers Barriers to entry
Systemic barriers
The Lending Club removed CEO Renaud Laplanche in 2016. Hans Morris, the company executive chairman, lauded him, saying his entrepreneurial spirit was critical to the success of the firm. But he also signaled the board was removing Mr. Laplanche because he had failed to build a strong control system and culture, stating that as a public company that provides a financial service, Lending Club must meet the industry high standards of transparency and disclosure. This kind of dismissal signals what message to the public? The board of directors is active and engaged. The board of directors needed a scapegoat to cover up their ineffectiveness. Mr. Laplanche was dishonest. Mr. Laplanche was not a creative entrepreneur.
The board of directors is active and engaged.
Which of the following is not an advantage of a strategic business unit (SBU) type of organizational structure? Divisions with similar products, markets, or technologies are formed into homogeneous groups that can achieve synergies. The corporate office is more removed from the individual divisions. Planning and control by the corporate office is more manageable. Divisional executives can respond quickly to market changes and opportunities.
The corporate office is more removed from the individual divisions.
Which of the following is not a characteristic of effective reward and incentive systems? Performance measures are clear and highly visible. Objectives are well understood, and broadly accepted. The compensation system is perceived as fair and equitable. The structure is fixed to assure employees of consistency.
The structure is fixed to assure employees of consistency.
________ are groups of countries that agree to increase trade among them by lowering trade barriers. Open zones Trading blocs Exchange partners Black zones
Trading blocs
Which of the following statements about venture capital is false? Entrepreneurs raise venture capital by selling shares of ownership in their business. Venture capital groups can often provide helpful management advice. Venture capital is a form of public equity financing. Venture capital is used to finance rapid growth or large capital expenditures.
Venture capital is a form of public equity financing.
________ are most appropriate when a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries. Strategic alliances Wholly owned subsidiaries Licensing agreements Joint Ventures
Wholly owned subsidiaries
In order to minimize the temptation for managers to act in their own self-interest, governance mechanisms exist for implementation consideration. Which of the following is not a primary means for monitoring managerial behavior? a board of directors that acts in the best interests of shareholders to create long-term value shareholder activism in which owners view themselves as shareowners a board of directors that acts in the best interests of shareholders to create short-term value managerial incentives to align management interests with those of the stockholders
a board of directors that acts in the best interests of shareholders to create short-term value
Green tea Oreos in China, chocolate and peanut butter Oreos in Indonesia, and banana dulce de leche Oreos in Argentina are examples of Kraft using ________ strategy. a single country a transnational an international a multidomestic
a multidomestic
Many situations that a firm faces have regular, identifiable patterns. Leaders tend to handle such routines by establishing ________ or ________ to be followed that can be applied ________ to each occurrence. a policy; a procedure; uniformly rules; regulations; individually policies; regulations; uniformly documents; credos; uniquely
a policy; a procedure; uniformly
Which of the following is an advantage of a divisional type of organizational structure? efficient use of managerial and technical talent an enhanced ability to respond quickly to changes in the external environment high degree of emphasis on long-term performance uniformity in image and quality across divisions
an enhanced ability to respond quickly to changes in the external environment
Firms are more likely to effectively leverage their technologies in new markets if they identify new applications of the technology by considering a ________ scope of ________ markets. limited; current limited; past broad; past broad; potential
broad; potential
The innovation dilemma known as "seeds versus weeds" refers to choosing to pursue investment in one innovative idea over another. choosing to pursue product rather than process innovations. promoting organizational stars onto innovation teams rather than involving all employees in innovation efforts. choosing to pursue radical rather than incremental innovations.
choosing to pursue investment in one innovative idea over another.
Which of the following is not one of the three characteristics of entrepreneurial leadership mentioned by the text? clarifying job responsibilities vision commitment to excellence dedication and drive
clarifying job responsibilities
A risk of co-opetition is if the companies actions are perceived as collusion. partnering. competitive. forbearance.
collusion.
If a firm outsources some parts of its value chain in order to reduce costs and increase quality and at the same time engages in multiple alliances to penetrate new markets, this is an example of a firm using a ________ of organizational types. barrier-free collection bounded consortium combination boundaryless consortium
combination
External governance control mechanisms include all the following except media. auditors. competitors. analysts.
competitors.
In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders), the ownership (of equity) is often held by employee stock ownership programs. controlled almost completely by management. widely dispersed. concentrated.
concentrated.
Statistics indicate that over half of the world's output now comes from emerging markets. This is leading to a(n) ________ of living standards across the globe and is changing the face of business. contraction expansion convergence divergence
convergence
For years O.R.T. Technologies resisted moving any operations outside Israel. However, when faced with a sharp rise in the value of the shekel, the maker of specialized software for managing gas stations froze all local hiring and decided to transfer some developmental work to Eastern Europe. This is an example of ________ risk. currency management economic political
currency
The innovation dilemma known as "building capabilities versus collaborating" refers to building innovative products in-house versus outsourcing. developing innovation skills internally versus partnering with qualified outsiders. incrementally launching a product. building credibility by launching products ahead of potential collaboration partners.
developing innovation skills internally versus partnering with qualified outsiders.
Which component of emotional intelligence (EI) enables a manager to have a deep understanding of the existence and importance of cultural and ethnic differences? social skills empathy self-regulation self-awareness
empathy
A drawback of EI is that a leader can find it easy to over-identify with others and confuse ________ with ________. motivation; intelligence intelligence; empathy motivation; empathy empathy; sympathy
empathy; sympathy
Which of the following is not a dilemma faced by corporations trying to manage the innovation process? choosing between experience and initiative launching incremental versus preemptive innovations choosing between internal rather and external staffing emphasizing marketing versus management innovations
emphasizing marketing versus management innovations
In attracting the best talent and relentlessly looking to build their skills, the most successful managers regularly ________ the ________ and ________ capital around them. As their followers mimic this pattern of behavior, the firm is able to build a dynamic and sustainable business model. expand; human; social eliminate; talent; social expand; corporate; financial eliminate; corporate; financial
expand; human; social
Entrepreneurial firms that pursue a low-cost leadership strategy use all the following to achieve lower costs except simple organizational structures. rapid decision making. cost-saving technology. extensive investment in order to achieve economies of scale.
extensive investment in order to achieve economies of scale.
Companies that cultivate cultures of experimentation and curiosity make sure that ________ is not to be avoided at all costs. experimentation risk taking authority failure
failure
The failure of many auditing firms to raise red flags about accounting irregularities in companies such as Enron and WorldCom is generally attributed to all the following factors except the failure of U.S. audit firms to hire technically qualified professionals. desire to get future auditing contracts from the company. fact that auditors are appointed by the firm. desire to get consulting work from the company because most audit firms also do consulting work.
failure of U.S. audit firms to hire technically qualified professionals.
For firms competing in highly unstable and turbulent industries, traditional strategic controls are most appropriate. false true
false
Informational controls involve the balance and alignment of the culture, rewards, and boundaries of a firm. true false
false
Which kind of risk taking requires that a company borrow heavily or commit a large portion of its resources in order to grow? personal risk taking technological risk taking financial risk taking business risk taking
financial risk taking
Consolidating the European aerospace industry was a strategic decision to compete against Boeing because Boeing had a ________ advantage. licensing first mover transnational multidomestic
first mover
In 2016, John Stumpf, CEO of Wells Fargo, was forced to resign after both stakeholder and government scrutiny of the practices of the firm. Firm management had instituted very aggressive sales goals for employees, leading employees to create sham accounts using the names and money of the real customers of the bank. This is an example of _______ corporate governance. guided controlled sound flawed
flawed
When an industry is mature, a(n) ________ strategy is considered one of the most effective approaches for a new entrant. overall low-cost small business differentiation focus
focus
When an organization with a simple structure increases its sales revenue and volume of outputs, it is most likely to develop a ________ structure. geographic product-market functional divisional
functional
Which of the following is not a common source of new business opportunities? chance event future work suggestions by family or friends current or past work experiences
future work
Virtual organizations ________ whereas modular organizations ________. accept interdependent destinies; pursue collective strategies pursue collective strategies; forfeit strategic control are usually permanent; are usually temporary give up part of their strategic control; retain full strategic control
give up part of their strategic control; retain full strategic control
TJ Parker went through the process of opportunity recognition when he developed PillPack. This means he ________, ________, and ________ the potential opportunity that arose from customers finding it difficult to keep to their medication schedule. chose; altered; discounted identified; selected; developed selected; improved; altered answered; analysed; rejected
identified; selected; developed
Square provides a means for small businesses to process credit and debit card sales without signing up for a traditional credit card arrangement of monthly fees and minimum charges. When its business grew rapidly, Apple, Google, and PayPal responded with ________ actions. imitative pioneering adaptive differentiated
imitative
What advantages does outsourcing not provide an organization? focusing scarce resources on core competencies enabling rapid expansion with relatively low capital investment improved buyer positioning accessing best in class goods and services
improved buyer positioning
Organizations that make it to the growth stage, design strategies to reduce the tendency to increase operational scope. increase the overall scope of operations. reduce the commitment to new product-market domains. leave exiting product-market domains.
increase the overall scope of operations.
The power of shareholders has intensified in recent years because of the decline in the number of interested institutional investors. increasing influence of small individual investors. decreasing influence of large institutional investors. increasing influence of large institutional investors.
increasing influence of large institutional investors
Building production capacity in locations outside of Europe can threaten ________, an issue typically raised when investing in China. balance of trade intellectual property rights protection European economic risk European investment potential
intellectual property rights protection
Which would be the appropriate strategy for companies to use to compete in the global marketplace if both the pressures to lower costs and adapt locally are low? international strategy transnational strategy global strategy multidomestic strategy
international strategy
The U.S. Small Business Administration supports small business through all the following except training and counseling. underwriting loans. investing venture capital. government contracting.
investing venture capital.
In corporations with a strong entrepreneurial culture, the willingness and ability to change often worries stakeholders such as suppliers and creditors. is considered a core capability. is imposed from the top-down. often leads to instability.
is considered a core capability.
In trying to assure that managerial actions lead to shareholder value maximization, a risk can come about if the market value of a firm becomes less than its book value. The risk is the Securities and Exchange Commission will not allow it to declare dividends until the market value exceeds the book value. the firm will be delisted by the stock exchange. the firm will be unable to service its debt. it becomes an attractive takeover target.
it becomes an attractive takeover target.
Continuous monitoring, in the contemporary approach, is beneficial because it reduces time lags. organizational flexibility is reduced. it increases the time it takes to detect changes in the competitive environment. organization response time is increased.
it reduces time lags.
Expert power is derived from leader capability and knowledge in a particular field. organizationally conferred decision-making authority. referent power. manager access, control, and distribution of information that is not freely available to everyone in an organization.
leader capability and knowledge in a particular field.
In organizations, ethical behavior must start with the ________ before the ________ can be expected to perform accordingly. leader; employees employees; shareholders leader; shareholders shareholders; leader
leader; employees
Which of the following is not a strategic risk of outsourcing? loss of nonvital functions loss of cross-functional skills loss of critical skills loss of control over a supplier
loss of nonvital functions
In emerging economies and continental Europe, firms often can be characterized by all the following except business group structures. weak legal protection for minority shareholders. low family ownership and control. concentrated ownership.
low family ownership and control.
According to the textbook, ________ and ________ must accept personal responsibility for developing and strengthening ethical behavior throughout the organization. bankers; employees managers; stockholders managers; top executives employees; external stakeholders
managers; top executives
Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of which type of organizational structure? matrix holding company divisional functional
matrix
According to the textbook, globalization involves international exchange. Included in this exchange is trade in goods and services as well as the exchange of ________, ________, and ________ across countries. habits; values; ideas traditions; legal systems; history statistics; personnel; purchasing power money; ideas; information
money; ideas; information
According to Michael Porter, firms that have experienced intense domestic competition are more likely to demand protection from their governments. more likely to design strategies that will allow them to successfully compete abroad. most likely to design strategies aimed primarily at the domestic market. unlikely to have the time or resources to compete abroad.
more likely to design strategies that will allow them to successfully compete abroad.
High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy? transnational strategy multidomestic strategy overall cost leadership strategy global strategy
multidomestic strategy
Michael Lazaridis got the idea for a wireless email device that led him to found Research in Motion, now called BlackBerry, from a conference he attended. At the conference, a speaker was discussing a wireless system Coca-Cola was using that allowed vending machines to send a signal when they needed refilling. Lazaridis saw the opportunity to use the same concept with email communications, and the idea for the smartphone was hatched. Seeing this innovative idea while at a conference is an example of which innovator DNA trait? experimenting observing networking associating
networking
Which habit is most directly related to the innovative process that managers should acquire as they start to build the innovative DNA needed to be more successful innovators in the future? networking across functions and organizations never sleeping over five hours at a time writing down product goals regularly motivating the team to work longer hours
networking across functions and organizations
Innovation involves using ________ knowledge to ________ organizational processes or create commercially viable products and services. good; disrupt new; transform more; disrupt old; design
new; transform
From watching his wife struggle to keep track of the family finances, Intuit founder Scott Cook identified the need for easy-to-use financial software that provided a single place for managing bills, bank accounts, and investments. This is an example of which innovator DNA trait? networking associating observing experimenting
observing
The best example of a tactical action that a company might use in response to a competitive attack is to target the markets of the rival. expand into new geographical areas. offer price discounts and rebates. acquire the competitor.
offer price discounts and rebates.
As illustrated in the opening case for Chapter 10, Boeing lost a lot of control and, therefore, incurred high operating costs for its build out of the 787 Dreamliner because it ________ design and manufacturing. on-shored internalized outsourced internationalized
outsourced
A report issued by the World Trade Organization described the production of a particular U.S. car. The study showed that 30 percent of the car value goes to Korea for assembly, 17.5 percent to Japan for components and advanced technology, 7.5 percent to Germany for design, 4 percent to Taiwan and Singapore for minor parts, 2.5 percent to U.K. for advertising and marketing services, and 1.5 percent to Ireland and Barbados for data processing. This is an example of outsourcing and on-shoring. outsourcing and offshoring. insourcing and outsourcing. insourcing and offshoring.
outsourcing and offshoring.
One of the disadvantages of divisional structure design is that they divide ________, ________, and knowledge. They insulate divisional managers from other divisional managers thus inhibiting their ability to coordinate activities, share resources, and learn from each other. people, resources people, buildings land, buildings assets, structures
people, resources
Successful organizations create ________ boundaries among the ________ activities as well as between the organization and its external customers, suppliers, and alliance partners. permeable; external impermeable; internal permeable; internal impermeable; external
permeable; internal
Carefully developed ________ and ________ guide behavior so that all employees will be encouraged to behave in ________ manner. policies; procedures; an ethical corporate credos; codes of conduct; an unethical codes of conduct; role models; a legal role models; standards; a stagnant
policies; procedures; an ethical
Renault paid 1 billion USD to acquire a 25 percent ownership stake in the Russian automaker AvtoVAZ in 2008. Just one year later, Russian Prime Minister Vladimir Putin threatened to dilute the Renault ownership stake unless it contributed more money to prop up AvtoVAZ, which was then experiencing a significant slide in sales. This is an example of ________ risk. management economic political currency
political
Refusal to share information, conflicts over resources, conflicts between departments and divisions, and petty interpersonal differences are symptoms of which type of barrier to change? behavioral barriers systemic barriers political barriers entry barriers
political barriers
In the compliance-based approach to ethics management, the objective is to reduce discretion, training, controls, audits, and penalties. enable responsible conduct. prevent criminal misconduct. conform with externally imposed standards.
prevent criminal misconduct.
When a company chooses to maintain low-price dominance, it is using which tactical action? increased marketing efforts price cutting product and service enhancements changing production capacity
price cutting
Which of the following dimensions of entrepreneurial orientation is described as a forward-looking perspective characteristic of a marketplace leader that has the foresight to seize opportunities? competitive aggressiveness proactiveness autonomy risk taking
proactiveness
In large organizations, a strategy of diversification requires a need to reorganize around ________ or ________. competitor lines; geographic markets product lines; geographic markets distribution lines; competitor markets product lines; competition
product lines; geographic markets
After witnessing the emergence of eBay and Amazon, Marc Benioff questioned why computer software was still sold in boxes rather than leased with a subscription and downloaded through the Internet. This was the genesis of Salesforce.com, a firm with over 6.7 billion USD in sales in 2016. This is an example of which innovator DNA trait? questioning networking associating experimenting
questioning
Strategic business unit (SBU) structures are best suited for corporations pursuing ________, whereas holding company structures are best suited for companies with ________ strategies. international diversification; product-market unrelated diversification; related diversification related diversification; unrelated diversification product-market diversification; international
related diversification; unrelated diversification
SC Johnson makes Windex, Ziploc bags, Glade Air Fresheners, and Saran Wrap. It decided to remove chlorine as an ingredient in Saran Wrap which reduced the effectiveness of the product to cling to containers. Which of the following does notexemplify Johnson's goal? maintaining a strong ethical culture being environmentally responsible developing an ethical organization culture respecting the financial position of the company only
respecting the financial position of the company only
Community hospitals in Mississippi can video conference with the specialists at the University of Mississippi Medical Center thus lowering health care delivery costs and increasing the quality of medical care. This system mirrors that of the Indian health care delivery system for reaching rural areas. This is an example of forward innovation. vertical innovation. reverse innovation. arbitrage.
reverse innovation
Product champions are strong supporters of the status quo. scavenge for resources and encourage others to back promising new ideas. are typically senior executives. are usually inventors of some sort.
scavenge for resources and encourage others to back promising new ideas.
Common features of a dispersed approach to corporate entrepreneurship include all the following except semi-autonomous new venture groups. an entrepreneurial culture. a top-down approach to supporting entrepreneurial behavior. use of product champions.
semi-autonomous new venture groups.
CEO duality refers to a situation in which the CEO serves as both the CEO and the chair of the board of directors. is responsible for acting as CEO and Chief Operating Officer (COO). is responsible for acting as CEO and serving on the compensation committee. formulates and implements strategies.
serves as both the CEO and the chair of the board of directors.
CEOs who are ________ tend to have a wide circle of acquaintances as well as a knack for finding common ground and building rapport. self-aware self-regulators socially skilled motivated
socially skilled
In the contemporary approach to strategic control, adapting to and anticipating both internal and external environmental change is an integral part. The relationships between ________, ________, and ________ are highly interactive. strategy formulation; leadership; control strategy formulation; implementation; control strategic information; organizational behavior; implementation change; leadership; control
strategy formulation; implementation; control
Rivalry is intense in nations with conditions of ________ consumer demand, ________ supplier bases, and ________ new entrant potential from related industries. strong; strong; low weak; weak; low strong; strong; high weak; weak; high
strong; strong; high
Which of the following is not a key control lever of behavioral control? culture boundaries rewards structure
structure
Generally speaking discussions of the relationship between strategy and structure strongly imply that structure typically has a very small influence on the strategy of a firm. strategy follows structure. structure follows strategy. strategy can effectively be formulated without considering structural elements.
structure follows strategy.
Which of the following do corporate business incubators typically not provide? physical space student interns funding mentoring
student interns
An ethically sound organization, drawing on the concepts of stakeholder management, can also strengthen its bonds among its ________, ________, and ________. suppliers; customers; governmental agencies current employees; potential employees; future employees values; organizational design; employees policies; procedures; values
suppliers; customers; governmental agencies
In competitive dynamics, new entrants may be forced to change their strategies or develop new ones to ________ competitive challenges by ________. overcome; other new rivals survive; former rivals succumb; potential rivals survive; incumbents
survive; incumbents
A small firm may be unable to mount a serious attack due to lack of resources. As a result, it is more likely to react to ________ actions, such as incentive pricing or enhanced service offerings, because they are less costly to attack than large-scale strategic actions. co-opetition strategic forbearance tactical
tactical
As a manager, when faced with ethical crises you should cover up as much as possible. wait for the other party to make the first move. focus on issues most relevant to stockholders. take the initiative to address the problem.
take the initiative to address the problem.
Which of the factors below has not made the software services industry in India extremely competitive on a global scale? -tax and antitrust legislation that protects the dominant players in the industry -large pool of skilled workers -large network of public and private educational institutions -large, growing market and sophisticated customers
tax and antitrust legislation that protects the dominant players in the industry
Poor organizational design by leaders can result in all the following except reward systems that do not motivate individuals toward desired organizational goals. teams, systems, and organizational processes that facilitate implementation. inadequate or inappropriate budgeting and control systems. lack of understanding of responsibility and accountability among managers.
teams, systems, and organizational processes that facilitate implementation.
As in the case of Siebel Systems (now part of Oracle), elements of a global strategy may facilitate the competitive advantage of differentiation by -increased freedom of individual business units to adapt to local tastes. -tailoring products to meet country-specific needs. -the creation of a worldwide network to achieve consistent service regardless of location. -flexibility in applying research and development to meet country-specific needs.
the creation of a worldwide network to achieve consistent service regardless of location.
Competitive actions can take many forms. Which is not likely to be one of them? an attack by a lower-ranked incumbent on an industry leader the launch of a breakthrough innovation that disrupts the industry structure the exit of a successful business from the market the entry of a start-up into a market for the first time
the exit of a successful business from the market
When Mario Cotta Zincometal Group, an Italian firm, had developed an innovative machine for cutting paper tissue, they sent three managers to Drupa, a printing and cutting technology trade show in Germany. Why? to help the managers overcome their fear of marketplace rejection to reduce uncertainty in the marketplace for their company success to assure their employees that the company was not planning to declare insolvency to scour conference booths to identify cutting product segments in which they could apply their technology
to scour conference booths to identify cutting product segments in which they could apply their technology
Business incubators are designed to support fledgling entrepreneurial ventures until they can operate as stand-alone businesses. false true
true
Cutting prices or increasing marketing efforts are examples of tactical competitive actions. false true
true
Firms are more likely to effectively leverage their technologies in new markets if they redefine the technology or competency in general terms. true false
true
If similar competitors vie for the same customers in a marketplace, they are likely to escalate their competitive strategy through a reactive series of actions and responses. true false
true
In order to succeed in being creative and agile, innovative firm teams must hold the team accountable. true false
true
Increasing international exchange in goods and services can run into the difficulty of how to address the needs of customers at differing income levels. false true
true
Sales quotas, operating budgets, and production schedules are examples of traditional controls. true false
true
The central key to empowerment is effective leadership. Leading-edge organizations recognize the need for ________, ________, and ________ at all levels instead of the extensive and cumbersome rules and regulations inherent in hierarchical control. trust; cultural control; expertise control, order, finances respect; finances; trust training; finances; expertise
trust; cultural control; expertise
The two vital elements that managers must concern themselves with, when creating boundaryless organizations, are product marketability and capital structure. financial returns and marketplace value. type of structure and the mechanisms, processes, and techniques for enhancing permeability. market share and shareholder value.
type of structure and the mechanisms, processes, and techniques for enhancing permeability.
Which of the following is not an aspect of culture that effective learning organization firms need to develop as they redistribute information, knowledge and rewards? encourage widespread sharing of information from various sources encourage employees to offer ideas, ask questions, and express concerns encourage collaborative decision-making and the sharing of best practices utilize technology that fosters tighter controls
utilize technology that fosters tighter controls
If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is a(n) ________ structure. international division worldwide matrix worldwide product division worldwide functional
worldwide matrix