Cypress Semiconductor utilizes a computer-based information system. Such a system
would allow managers to manage what employees and teams do in this decentralized
organization.
Toyota’s lean production system is the basis of its competitive advantage.
A company may create value if it can leverage the skills created within subsidiaries and
apply them to other operations within the firm’s global network.
A new product’s relative advantage refers to the degree to which a new product is
perceived as better at satisfying customer needs than the product that it supersedes.
While Information Systems (IS) have greatly improved externally focused decision
making, they have had little impact on lowering costs.
Interest rates have an impact on the sale of autos, appliances, and capital equipment and
thus represent a macroeconomic force.
A joint venture can be dangerous to a company if its partner is acquired by a competitor.
Mass customization describes the ability of companies to use flexible manufacturing
technology to reconcile the two goals of low cost and differentiation through product
customization.
In a multidivisional structure, corporate managers can compare the performance of one
division against another in terms of its cost structure or the profit it generates.
For diversification to increase profitability, a company’s top managers must have
superior entrepreneurial capabilities.
Critics of corporate governance state that boards with more inside directors than outside
directors are generally an effective governance mechanism because they know more
about how the company works.
Mike works as a corporate trainer, teaching new employees how to perform
manufacturing tasks. Mike works in which value chain activity?
A.Research and development
B.Human resources
C.Materials management
D.Production
E.Company infrastructure
Which of the following will not help an established company in addressing the potential
challenge of a disruptive technology?
A.Access to knowledge about how disruptive technologies can revolutionize markets
B.Investing in newly emerging technologies that may ultimately become disruptive
technologies
C.Anticipating and planning for how disruptive technology will change business
D.Distinctive competencies in the current business model
E.Understanding that a disruptive technology will require a radically different value
chain with a different cost structure
Roza Munoz is the head of Maxwell House Coffee, a division of the Kraft Foods
Company. Which of the following is not likely to be one of Ms. Munoz’s
responsibilities?
A.Turning corporate-level strategy into action
B.Defining Kraft Food’s mission
C.Deciding how to compete in the coffee industry
D.Supervising functional-level managers
E.Developing a business-level strategy
New ventures are likely to be preferred compared to acquisitions when
A.entry barriers are high.
B.exit barriers are high.
C.a company’s business model is based on using its technology to innovate new kinds
of products for related markets.
D.the company needs more mega-opportunities.
E.the industry is in the mature stage of the industry life cycle.
Which of the following is a tactical step for getting down the experience curve ahead of
competitors?
A.Premium pricing to create an image of uniqueness in consumers’ minds
B.Pursuing a distinctive competence in focused marketing
C.Constructing a manufacturing plant of less than minimum efficient scale
D.Using aggressive pricing and promotions to expand sales volume as rapidly as
possible
E.Making the assembly of the product as complex as possible because this results in
greater learning effects
For a hotel company whose competitive advantage is based on high brand-name
recognition, which of the following ways of serving an overseas market makes the most
sense?
A.Franchising
B.Licensing
C.Exporting
D.Entering into a joint venture with a foreign company
E.Setting up a wholly owned subsidiary
Business-to-business (B2B) networks link firms to
A.buyers.
B.suppliers.
C.regulators.
D.competitors.
E.buyers and suppliers.
Flexible production technology is sometimes referred to as
A.just-in-time manufacturing.
B.quick technology.
C.lean production.
D.stable production.
E.unscheduled manufacturing.
A large company produces a variety of clothing for different customer groups. This firm
is pursuing which of the following strategies?
A.Cost leadership
B.Differentiation
C.Both cost and differentiation
D.Focus
E.Share building
Which of the following actions would you expect to see in a company that is
undergoing a reengineering?
A.Hiring more managers
B.Hiring more workers
C.Examining activities from a customer’s point of view
D.Investing more in product research and development (R&D)
E.Centralizing decision-making authority
A company considering entering an industry that is in the mature stage of its life cycle
would generally prefer which of the following entry strategies?
A.Joint ventures
B.New ventures
C.Acquisitions
D.Long-term contracting
E.Taper integration