In integrity-based ethics programs, organizational ethics is seen as the responsibility of
the employees.
When the U.S. currency appreciates against other currencies, it becomes more
expensive for American companies that have branch operations overseas, when they
declare foreign profits in the United States.
Action plans permit a degree of autonomy for managers who sometimes must modify
activities to achieve the desired outcome.
The success Apple, Inc. achieved over the past decade was a direct result of the creative
and forceful leadership of its late CEO, Steve Jobs. According to the text, this would be
an example of the “romantic” perspective of leadership.
A potential pitfall of a focus strategy is that focusers can become too focused to satisfy
buyer needs.
Methods used for ethics management in a compliance-based approach include
education, reduced discretion, auditing and controls, and penalties.
Primary activities contribute to the physical creation of a product or service, its sale and
transfer to the buyer, and its service after the sale.
A multidomestic strategy is the most appropriate strategy for international operations,
because it drives economies of scale as far as possible and provides a
middle-of-the-road product that appeals to the largest number of consumers in every
market.
A matrix organization is organized strictly along product lines.
Portfolio management matrices generally consist of two axes that reflect industry or
market growth and the market share of a business.
Exit champions are often reluctant to gather hard data about a venture because it might
kill the project.
In most industries, new entrants will be a bigger threat because the Internet lowers entry
barriers.
Which of the following firms would you expect to have the highest ratio of market
value to book value?
A. Apple
B. Google
C. Southwest Airlines
D. Nucor (steel)
A firm can achieve differentiation through all of the following means EXCEPT
________.
A. improving brand image
B. better customer service
C. adding additional product features
D. offering lower prices to frequent customers
Intense rivalry involving actions and responses among similar competitors vying for the
same customers in a marketplace is known as _____________.
A. competitive dynamics
B. resource similarity
C. threat of substitutes
D. pioneering new entry
At Cooper Industries, there are few similarities in the products it makes or the industries
in which it completes. The corporate office adds value through such activities as superb
human resource practices and budgeting systems. This is an example of
__________________.
A. using related diversification to achieve value by leveraging core competencies to
attain economies of scope
B. using related diversification to achieve value by leveraging core competencies to
acquire market power
C. using unrelated diversification to achieve value through portfolio management in
order to acquire financial synergies
D. using unrelated diversification to achieve value through restructuring and parenting
The primary participants in corporate governance do not include _____________.
A. the shareholders
B. the financial institutions
C. the management (led by the chief executive officer)
D. the board of directors
Strategy formulation and implementation is a challenging ongoing process. To be
effective, it should not involve:
A. the CEO and the board of directors
B. the board of directors, CEO, and CFO
C. competitors
D. line and staff managers
If the U.S. dollar appreciates relative to foreign currency, what is likely to be the result
for the U.S. company that has company branches abroad?
A. Profits will increase, when measured in U.S. dollars.
B. Profits will decrease, when measured in U.S. dollars.
C. Foreign exports to the United States will decrease.
D. Foreign demand for U.S. goods and services will decrease.
Successful organizations are effective in motivating people. Employees work best
when:
A. they are asked to do their best
B. work requirements are vague and unclear
C. they are striving toward specific goals
D. they are guided by an abstract mission statement
According to the text, _____________, which support fledgling startups are often used
to pursue specific entrepreneurial ventures developed by _____________.
A. collaboration partners; strategic partners
B. business incubators; new venture groups
C. product champions; corporate venture capitalists
D. lower-level managers; upper-level managers
Which of the following is not a limitation of a multidomestic strategy?
A. less ability to realize cost savings through scale economies
B. greater difficulty in transferring knowledge across countries
C. single locations may lead to higher tariffs and transportation costs
D. may lead to overadaptation as conditions change
Limitations of multidomestic strategies include: a decreased ability to realize cost
savings through scale economies, a greater difficulty in transferring knowledge across
countries, and it may lead to overadaptation as conditions change.
In order to minimize the temptation for managers to act in their own self-interest,
governance mechanisms exist for implementation consideration. Which of the
following is not a primary means for monitoring managerial behavior?
A. a board of directors that acts in the best interests of shareholders to create short-term
value
B. shareholder activism in which owners view themselves as shareowners
C. a board of directors that acts in the best interests of shareholders to create long-term
value
D. managerial incentives to align management interests with those of the stockholders
As firms simultaneously downsize and face the need for increased coordination across
organizational boundaries, a control system based primarily on ______________ is
dysfunctional.
A. boundaries and constraints
B. culture and rewards
C. organizational loyalty
D. innovation and risk taking