Control systems can help managers evaluate how efficiently they are producing goods
and services.
Wal-Mart is a large, complex organization. It most likely utilizes a flat organizational
structure.
A differentiation business model is based on pursuing a set of generic strategies that
allows a company to achieve a competitive advantage by creating a product that
customers perceive as different or distinct in some important way.
Six Sigma is a quality and efficiency program derived from the concept of Total Quality
Management, and was widely used in Japan before acceptance in the U.S.
A 100-year-old industrial giant, 3M serves as an example of how a company can
leverage technology to create successful new business.
The Six Sigma name refers to the Greek letter meaning standard deviation from the
mean.
Local responsiveness may be driven by economic and political demands placed on
companies by host country governments.
Sara Lee Corp., a baking firm, purchased Platex Apparel Inc. This purchase helped to
make Sara Lee Corp. one of the largest makers of women’s apparel in the United States.
Sara Lee Corp. utilized a diversification strategy
A possible strategy for winning a format war is for a company to make sure that, in
addition to the product itself, there is an adequate supply of complements.
Internal stakeholders of a company include
A.unions.
B.customers.
C.the board of directors.
D.suppliers.
E.local communities.
A company’s strategic commitments
A.allow it to imitate a competitor’s advantage rapidly.
B.are a way to avoid failure.
C.occur when an organization is profitable.
D.reduce inertia.
E.allow it to develop a particular set of resources and capabilities.
When a company engages in restructuring, it may be necessary to
A.increase the size of the work force.
B.increase the number of organizational levels.
C.lay off employees.
D.add to the operating costs.
E.none of these.
A company with a business-level strategy of cost leadership should pursue which of the
following global expansion strategies?
A.Localization
B.Simple
C.International
D.Transnational
E.Global standardization
Miller Brewing was related to Philip Morris’s tobacco business because it was possible
to create important marketing commonalities: both beer and tobacco are mass market
consumer goods in which brand positioning, advertising, and product development
skills are crucial to create successful new products. This is an example of which of the
following?
A.Transferring competencies
B.Leveraging competencies
C.General organizational competencies
D.Economies of scope
E.Organizational design skills
Business ethics is concerned with
A.teaching people the difference between right and wrong.
B.ensuring that managers weigh the ethical implications of their decisions.
C.ensuring that employees obey the law.
D.replacing economics with social responsibility in the decision-making process.
E.increasing profits.
If a company uses a focused cost-leadership strategy, it competes in the market
segments where
A.it can operate at no cost disadvantage.
B.where cost is not a high concern.
C.it can operate at a minimal cost disadvantage.
D.there is frequently little or no competition.
E.none of these.
New ventures
A.should be killed if they don’t make a profit within three years.
B.are often preferred by technology-based companies.
C.are preferred compared to acquisitions when entry barriers are high.
D.are less risky than acquisitions.
E.are best when the company is entering the industry on a small scale.
Successful companies in a mature industry are most interested in
A.increasing entry barriers.
B.reducing the power of suppliers.
C.reducing the threat of substitute products.
D.reducing entry barriers.
E.reducing the power of buyers.
Which of the following is not one of the advantages of a geographic structure?
A.Cost inefficiencies from issues of scope
B.Responsiveness to the needs of regional customers
C.Lower transportation costs
D.More coordination and control than a functional structure
E.Centralization of key activities and functions that allow leveraging skills across
regions
At The Luxury Hotel in Miami, Florida, three hotel employees serve the needs of each
guest. In every room, a guest can summon a chef, a maid, or a valet by pressing a
button at bedside. Which generic business-level strategy is The Luxury Hotel utilizing?
A.Cost leadership
B.Differentiation
C.Focus
D.Strategic group
E.Brand loyalty
Confronted with agency problems, which of the following is(are) challenge(s) for
principals?
A.Shape the behavior of agents so that they act in accordance with the goals set by
principals
B.Reduce the information asymmetry between agents and principals
C.Develop mechanisms for removing agents who do not act in accordance with the
goals of principals
D.Develop mechanisms for removing agents who mislead principals
E.All of these are challenges for principals
Which of the following is (are) the probable consequence(s) of an inability to integrate
two divergent corporate cultures after an acquisition?
A.High management turnover
B.Damaging political tensions between the management of the acquired and acquiring
companies
C.An inability to realize potential gains from synergies
D.All of these
E.None of these
In the 1870s, Christopher Sholes invented the layout of keys on a typewriter keyboard,
sometimes called the QWERTY layout. This invention is a(n)
A.technical standard.
B.fast-mover advantage.
C.complementary product.
D.outmoded technology.
E.high-tech industry.
Zappos.com executives have aligned the entire organization around one purpose: €to
provide the best customer service possible.€ This statement can best be described as
which of the following?
A.The company’s emergent strategy
B.The company’s corporate structure
C.The company’s HR strategy
D.The company’s mission
E.The company’s vision
Which of the following factors that affect market growth rates refers to the degree to
which a new product is perceived as better at satisfying customer needs than the
product it supersedes?
A.Complexity
B.Relative advantage
C.Compatibility
D.Trialability
E.Observability
Which of the following statements concerning profitability and profit growth is false?
A.Attaining future profit growth may require investments that reduce current
profitability.
B.Managers must find the right balance between profitability and profit growth.
C.Too much emphasis on current profitability at the expense of profit growth can make
an enterprise less attractive to shareholders.
D.Boosting a company’s profitability and profit growth rate is inconsistent with
satisfying the claims of other key stakeholder groups.
E.Too much emphasis on profit growth can reduce profitability and make an enterprise
less attractive to shareholders.