One way a diversified company can increase its profitability is by acquiring inefficient
or poorly managed companies and then restructuring them to improve their
performance.
The organizational hierarchy is flatter in a Multidivisional structure than in a product or
functional structure.
The traditional planning model suggests that a company’s strategies are the result of a
plan from a highly structured process orchestrated by top management.
Often global companies use the services of foreign intermediaries or brokers to find
suppliers that best fit their input requirements.
Barnes & Noble owns thousands of retail outlets and is pursuing a strategy called
franchising.
Thinking of it in its simplest terms, the balanced scorecard approach may be viewed as
the
A.dashboard on an automobile.
B.touchpad on a cell phone.
C.keyboard for a computer.
D.dials and indicators in an airplane cockpit.
E.none of these choices.
Which of these is (are) the risk(s) associated with licensing as a means of entering
overseas markets?
A.Licensing limits a company’s ability to coordinate strategic moves across countries.
B.A company may lose control of its technology.
C.A company may lose control over its manufacturing, marketing, and strategic
functions.
D.All of these.
E.None of these.
Which of the following is not an accurate statement about current levels of pay for
CEOs of U.S.-based firms?
A.Today, the average CEO earns more than 350 times the pay of the average blue-collar
worker.
B.Most of CEO pay is in the form of salary.
C.CEO compensation is not closely tied to corporate performance in most firms.
D.CEO pay is rising more rapidly than pay for other workers.
E.The level of CEO compensation is determined by the corporate board of directors.
Donna can make a chair for about $100, she charges customers $150 to buy the chair,
and customers perceive that the chair is worth $225. Donna’s profit margin is
A.$50.
B.$75.
C.$100.
D.$150.
E.$225.
A company’s hiring strategy
A.directly affects employee productivity.
B.has little effect on employee productivity.
C.does not relate to profitability.
D.is not part of the company’s overall human resource strategy.
E.None of these.
Today, just about everyone has a cell phone. However, Thomas did not own a cell
phone until he took a job as a store manager where he was required to own a cell phone
so that his employees may reach him in case of an emergency. Which of the following
customer groups does Thomas belong to?
A.Early majority
B.Late majority
C.Laggards
D.Early adopters
E.Innovators
In which of the following circumstances does a global standardization strategy make
the most sense?
A.Global market standardization is not possible, and there are no significant economies
of scale to be realized from centralizing global manufacturing.
B.Global market standardization is possible, but there are no significant economies of
scale to be realized from centralizing global manufacturing.
C.Global market standardization is not possible, but there are significant economies of
scale to be realized from centralizing global manufacturing.
D.Consumer tastes and preferences differ among national markets, and economies of
scale are insubstantial.
E.Global market standardization is possible, and there are significant economies of
scale to be realized from centralizing global manufacturing.
Most manufacturing companies begin their global expansion by
A.licensing.
B.franchising.
C.exporting.
D.forming a joint venture.
E.setting up a wholly owned subsidiary in the host country.
Which of the following strategies should a company not adopt if it wants to win a
format war?
A.License their technology to competitors.
B.Develop complementary products.
C.Enter into a joint venture to ensure compatibility.
D.Aggressively market to jump-start demand.
E.Price the product high to recover steep upfront costs.
The control issue in managing the multidivisional structure is
A.how much authority should be centralized at corporate headquarters.
B.how much authority should be decentralized to the divisions.
C.how much authority should be given to each functional unit.
D.how much authority should be centralized at corporate headquarters and
decentralized to the divisions.
E.how much authority should be given to corporate division heads.
The relationship between an enterprise and its stakeholders is essentially what type of
relationship?
A.Exchange
B.Master-servant
C.Bailor-bailee
D.Supply and demand
E.Quasi-egalitarian