Divisional battles may lead to battles over transfer pricing.
Government deregulation of telephone service lowered the barriers to entry and lowered
industry profit margins.
A union and the general public are examples of internal stakeholders.
Development of a mass market is the stimulus for an industry to change from growth to
embryonic.
Reaching the early majority requires successful niche marketing and narrow market
segmentation.
Lucy is an entrepreneur who is interested in opening her own bakery. She is concerned
with obtaining money for equipment for the bakery such as ovens, pots and pans, and
display cabinets. Lucy is trying to obtain intangible resources for her business.
Learning effects tend to be more significant when a technologically complex task is
performed only occasionally.
An important purpose of control systems is to motivate employees to work toward
increasing efficiency, quality, innovation, and responsiveness to customers.
Antibody Solutions is an American company that specializes in cell bank storage and
finding and producing antibodies for bacterial and viral infections. Antibody Solutions
would not be considered a high-tech company since it is not in the computer industry
which is considered high-tech.
Companies with a differentiation advantage must charge a lower price for their
products.
Unfortunately, Harvard Business School found no differences in learning effects among
hospitals performing a new cardiac procedure.
In manufacturing, functional strategy usually centers on improving efficiency and
quality.
Distinctive competencies are firm-specific strengths that allow a company to
differentiate its products and/or achieve substantially lower costs than its rivals.
Marginal costs in high-technology industries tend to stay very low as production rises.
When a company produces a wide range of products for different customer groups, it is
following a strategy of
A.cost leadership.
B.differentiation.
C.focus.
D.market concentration.
E.share building.
Black and Decker, Capitol One, Gillette, and Unilever are all companies that conduct
business in two or more national markets. These companies are known as
A.bimarket companies.
B.national companies.
C.transnational companies.
D.multinational companies.
E.localized companies.
Which of the following is not a cognitive bias?
A.Escalating commitment
B.Reasoning by analogy
C.Ivory tower thinking
D.Representativeness
E.Illusion of control
Cost of goods sold is determined by examining which of the following?
A.The balance sheet
B.Sources and uses of the financial statement
C.The cash budget
D.The income statement
E.The overhead and administrative expense statement
Employee productivity is
A.a function of employee socialization.
B.one of the key determinants of a company’s efficiency, cost structure, and
profitability.
C.not subject to measurement.
D.typically not sustainable in the long run.
E.none of these.
When a firm produces products that customers perceive as having higher utility than
those of its rivals, this firm’s source of competitive advantage is
A.design.
B.low innovation.
C.superior quality.
D.efficiency.
E.customer responsiveness.
A disadvantage of pursuing a cost leadership strategy is that
A.technological change can make production methods obsolete.
B.price wars make it hard to compete with differentiators.
C.it costs more than a differentiation strategy because of the necessity of high capital
investments.
D.powerful buyers are a major threat.
E.no quality control exists.
Which of the following is the organization’s principal general manager?
A.The Board of Director
B.Marketing division head
C.CFO
D.CEO
E.Controller
A company should pursue unrelated diversification instead of related diversification
when
A.its core skills are highly specialized and have few applications outside its core
business.
B.the company’s top managers are skilled at acquiring and turning around poorly run
enterprises.
C.its core technological skills are applicable to a wide variety of industrial and
commercial situations.
D.it wants to maximize growth.
E.the bureaucratic costs of implementation do not exceed the value that can be created
by realizing economies of scope.
The specific collection of values, norms, beliefs, and attitudes shared by people and
groups in a company is commonly referred to as
A.organizational fit.
B.organizational culture.
C.organizational development.
D.organizational positioning.
E.all of these.