Strategic Planning Final
In terms of the build-borrow-or-buy framework, a firm's internal resources are considered to be relevant when they are
(1) similar to those that need to be developed and (2) superior to those of competitors in the targeted area
Which is the process and implications of founder imprinting?
--The founder defines & shapes the culture. --Can persist for decades after his or her departure --Examples: Steve Jobs, Walt Disney, Michael Dell, Oprah Winfrey, Martha Stewart, Bill Gates
_______ is illustrated by a situation in which the principal cannot determine the value created by individual members of a team
Adverse selection
Newhaven Pharmaceuticals Inc., BioCure Pharma Inc., and Premier Pharma Inc. are three rival firms who have set up an alliance to conduct research and find a cure for cancer. They have made almost equal contributions to the research, and they also share their expertise with each other. However, the three firms will continue to behave as competitors in markets for other drugs and vaccines. What is this arrangement best referred to as?
Co-opetition
________ are best described as equity investments by large established firms making in entrepreneurial ventures to gain access to new, and potentially disruptive, technologies
Corporate venture capital investments
Amazon.com has decided to enter the college bookstore market. The goal of "Amazon Campus" is to offer co-branded university-specific web sites that offer textbooks and paraphernalia, such as logo sweaters and baseball hats. This development shows Amazon's relentless pursuit of __________ Diversification (or) Integration
Diversification?
In which of the stages of globalization did firms organize as networks to pursue a global-standardization strategy?
Globalization 3.0
______ refers to a firm's resistance to change the status quo that can set the stage for the firm's subsequent failure
Inertia
_______ is best described as a situation in which one party is more informed than another, because of the possession of private information
Information asymmetry
New United Motor Manufacturing, Inc. (NUMMI), formed between General Motors (GM) and Toyota in 1984 was the first ______ in the U.S. automobile industry
Joint Venture
_______ is best described as a form of long-term contracting in the manufacturing sector that enables firms to commercialize intellectual property
Licensing
In principal-agent relationships, ______ describes the difficulty of principals to ascertain whether agents have really put forth their best efforts
Moral Hazard
A(n) _______ arises out of the combination of high pressure for local responsiveness and low pressure for cost reductions
Multidomestic strategy
McDonald's uses mutton instead of beef in India and offers teriyaki burgers in Japan. Which of the following strategies is the fast-food chain pursuing?
Multidomestic strategy
All public companies listed on the U.S. stock exchanges must file a number of financial statements with the ________
Securities and Exchange Commission (SEC)
Which of the following globalization strategies required managers working in multinational enterprises (MNEs) to remember to think globally, but act locally?
Transnational strategy
_______ is best described as a firm's ownership of its production of needed inputs or of the channels by which it distributes its outputs
Vertical integration
W.L.Gore has four product divisions: electronic products, industrial products, medical products, and fabrics division. It also has manufacturing facilities in the U.S, China, Germany, Japan, and Scotland, and business activities in 30 countries across the globe. Based on this information, which structure are they using?
W. L. Gore is using a multidivisional structure
Sam is a manager at Style One Apparels Inc. and is friends with the company's CEO. This privilege gives Sam the information that Style One Apparels is in the midst of talks to take over a leading rival. Sam buys stocks of Style One with the expectation that its stocks will appreciate. But the deal falls through and the stocks of Style One depreciate in the following months. Are Sam's actions unethical? Why?
Yes, because it is unethical to trade stocks based on insider information irrespective of the final outcome
Otomobail Autos Inc., a large automobile company, made an initial small investment in a start-up company that was developing a solar-powered car. However, Otomobail Autos had no obligations to make continued investments in the experiments of the start-up company. It could invest in small amounts depending on the new product's success at each stage of its development. If the product proved to be successful, Otomobail Autos would have the right to buy out the start-up company. This approach to strategic alliance is referred to as
a real-options perspective
SuperDisk Inc. holds the highest market share in the low-growth compact disk industry. With the introduction of flash drives, the market for compact disks has reduced. However, SuperDisk has been able to generate sufficient revenues for the parent company by selling its products in less developed countries. In the Boston Consulting Group (BCG) growth-share matrix, SuperDisk will be categorized under
cash cow
A ______ is best defined as a company that combines two or more strategic business units under one overarching corporation and follows an unrelated diversification strategy
conglomerate
______ is a mechanism to direct and control an enterprise in order to ensure that it pursues its strategic goals successfully and legally
corporate governance
The ______ states that geographic location alone should not lead to firm-level competitive advantage because firms are now, more than ever, able to source inputs globally
death-of-distance hypothesis
A(n) ______ is best described as a partnership in which at least one partner takes partial ownership in the other partner
equity alliance
In Michael Porter's diamond framework, _______ conditions describe a country's endowments in terms of natural, human, and other resources
factor
Pyramid Times Inc., a Swiss-based premium watch brand, has recently started selling its watches through company-owned retail outlets in major cities of the emerging nations. Which type of diversification strategies is the firm pursuing?
geographic diversification
Some multinational enterprises (MNEs) attempt to reap significant economies of scale and location economies by pursuing an international division of labor based on wherever best-of-class capabilities reside at the lowest cost. This is known as a(n) ______ strategy
global-standardization
Pitt Steels Inc. has decided to enter into a foreign market by setting up its own production facilities and distribution channels from scratch. This will allow it to have strong control over all of its business activities. What is the foreign entry mode most likely opted by Pitt Steels Inc.?
greenfield operation
Successful strategy ______ requires managers to design and shape structure, culture, and control mechanisms
implementation
A(n) _______ is best used to depict the transformation of raw materials into finished goods and services along distinct vertical stages
industry value chain
The board of directors of a public stock company consists of what makeup of people?
inside and outside directors who are elected by the shareholders
When a firm pursues a(n) ______, it sells the same products or services in both domestic and foreign markets
international strategy
A mortgage-loan officer persuades unsuspecting consumers to sign up for exotic mortgages, such as "option ARMs." These mortgages offer borrowers the choice to pay less than the required interest, which is then added to the principal while the interest rate can adjust upward. Because of this setup, many borrowers are unable to repay the mortgage once the interest rates go up. Is this legal/illegal, ethical/unethical?
legal but unethical
Peter sent in a complaint about a rude salesperson he dealt with at Up Beat Electronics Inc. He didn't get a response for about three months. Also, when the response finally came, it was just a formal, cursory letter. Based on this scenario, Up Beat Electronics most likely has an extremely ______ organizational structure
mechanistic
An organization is characterized as having a flexible division of labor, distributed decision making, and generalized knowledge of how to accomplish strategic goals valued. This organization is most likely _______ in nature
organic
Zappos' 10 core values that define what it means for employees to be working at Zappos also define the organizational _______ of Zappos
organizational culture
The most efficient way to overcome the principal-agent problem in a firm is to
provide stock options to managers
A _______ is best described as an approach to strategic decision making that breaks down a larger investment decision into a set of smaller decisions that are staged sequentially over time
real-options perspective
Disney became the world's leading media company to a large extent by pursuing a corporate strategy of ________
related-linked diversification
The ______ is a strategic management framework that proposes that critical resources and capabilities frequently are embedded in strategic alliances that span firm boundaries
relational view of competitive advantage
Creating economic value for shareholders while also creating social value is known as creating _______
shared value
While working a night job at a call center, Dennis creates an app called DineIN, which can be used to place orders at restaurants, rate the restaurants, and make reservations. Because he receives good responses for his app, he quits his current job to focus his efforts on DineIN. He creates a start-up called TYOP and hires three people to help him improve DineIN and maintain the servers that run it. In this scenario, TYOP most likely has a _______ structure
simple
______ describes the degree to which a task is divided into separate jobs
specialization
How did Uber conflict with Carnegie Mellon University's National Robotics Engineering Center (NREC)?
stole 40 researchers
A ______ is best described as a voluntary arrangement between firms that involves the sharing of knowledge, resources, and capabilities with the intent of developing processes, products, or services
strategic alliance
______ are best described as voluntary arrangements between firms that involve the sharing of knowledge, resources, and capabilities with the intent of developing processes, products or services to lead to competitive advantage
strategic alliances
The three key components of organizational design are _______
structure, culture, and control
The MBA oath first developed at Harvard and now signed by students at over 300 business schools is modeled after what oath?
the Hippocratic oath in medicine
Multinational enterprises (MNEs) like Harley-Davidson, Rolex, and Starbucks are said to be following an international strategy because
they offer the same products or services in all their stores throughout the world