What was the cause of Walmart’s exit from the German market?
a) Loss of a predatory pricing lawsuit
b) High tariffs on imported goods
c) Total revenue that failed to cover sunk costs
d) German regulations against foreign owned firms
e) None of the above
Which of the following should not be considered when selecting organizing
dimensions?
a) Economies of scale
b) Economies of scope
c) Transactions costs
d) Agency costs
e) Sunk costs
What type of strategic alliance involves two or more firms creating and together owning
a new independent organization?
a) Partnership
b) Tapered integration
c) Close-knit semi-formal relationship
d) Mutual agreement
e) Joint venture
Which of the following is a dimension along which departmentalization can occur?
a) Tasks
b) Inputs
c) Outputs
d) Geography
e) All of the above
The average PCM (percentage contribution margin) in a Cournot equilibrium is given
by the formula PCM=H/·, where H is the Herfindahl index and · is the price elasticity of
market demand. Given this equation, which of the following statements is true?
a) The more concentrated the industry, the smaller the PCMs in equilibrium
b) The industry concentration only raises the PCMs in equilibrium
c) The industry concentration has no bearing on PCM size in equilibrium
d) The less concentrated the industry, the larger the PCMs in equilibrium
e) The less concentrated the industry, the smaller the PCMs in equilibrium
Which of the following terms best describes the situation when sources of competitive
advantage in an industry are being created and eroded at an increasingly rapid rate?
a) Leveraging resources b) Strategic intent
c) Strategic stretch
d) Hypercompetition
e) Global dominance
Which of the following terms best describes the extent to which two or more positions
depend on each other to do their own work?
a) Technology interdependence
b) Task interdependence
c) Information processing
d) Environmental contingencies
e) Structure-environment coherence
When is reputation a most effective entry barrier?
a) When the incumbent has incurred them and the entrant has not
b) When incumbents have long-standing relationships with suppliers and customers
c) When channels are few and hard to replicate
d) When a firm has a reputation for toughness or competes in multiple markets
e) When marginal costs are low and flooding the market causes large price reductions
What type of entrant would be described as a new entrant with no current brand
identity, distribution channels or presence within an industry?
a) Fast follower
b) Passive
c) Aggressive
d) Innovator
e) De novo
Which of the terms best describes the effect that results from supervisors giving all their
subordinates average (or above average) grading to avoid making sharp distinctions
between those subordinates when evaluating them?
a) Forced ranking system
b) Subjective assessment
c) Ratings balancing
d) Ratings compression
e) Merit ratings system
When are sunk costs a most effective entry barrier?
a) When the incumbent has incurred them and the entrant has not
b) When incumbents have long-standing relationships with suppliers and customers
c) When channels are few and hard to replicate
d) When a firm has a reputation for toughness or competes in multiple markets
e) When marginal costs are low and flooding the market causes large price reductions
Which of the following terms best describes a place in which a firm can sell its ideas for
full value?
a) Industry for ideas
b) Community of ideas
c) Innovation market
d) Market for ideas
e) Idea environment