Entrepreneurs who depend on significant investor capital often find their flexibility
considerably increased.
Blockholders are considered powerful because they control 10 percent or more of a
firm’s shares.
Intel is successful because it doesn’t license its technology to other manufacturers.
It is easier to manage a firm that requires dissimilar dominant logics across business
units.
The generic strategy model helps decision makers determine how best to motivate
customers to choose their products over those of competitors.
With stock ownership, executives are risking their own human capital.
Establishing a new business can put a new foreign division in a disadvantageous
position relative to local foreign competitors.
When a CEO is fired for performance reasons, it is more likely that the board will
recruit an insider as a replacement.
An analysis of market, cost, government, and competition factors can help determine if
a market has globalized or is in the process of globalizing.
All the value-adding activities by which a firm produces, distributes, and markets a
product are its value chain.
Sometimes senior managers make decisions based on personal, and not shareholder,
interest.
To determine alliance fit, a company should take situation-specific factors into
consideration.
Managers often have unsound confidence in both their valuations of acquisitions and in
their ability to create value
Goals are a broad indication of organizational intentions.
Possible threats to the low-cost strategic position include new technology and inferior
quality.
Pacific Cycle grabbed the lion’s share of the U.S. bicycle market by pioneering the
concept of sourcing bicycles from Asia.
Strategic-group analysis helps managers gain a better understanding of ________.
A)their weaknesses
B)their competitors
C)their suppliers
D)their complementors
A firm’s success can give it all except which of the following options?
A) It may remain independent.
B) It can merge with an established firm.
C) It can go public through an IPO.
D) It can form a monopoly.
Opportunities are often identified by individuals who have close contact with
________.
A) market researchers
B) venture capitalists
C) resource discoveries
D) scientific breakthroughs
Industry concentration is one of the important factors in industry analysis because
concentration affects the intensity of ________ in an industry.
A)supply procurement
B)hiring efforts
C)marketing efforts
D)competition
The organizational structure that provides flexibility by making it possible to organize
teams around specific projects, products, or markets is the ________ structure.
A) multidivisional
B) matrix
C) functional
D) network
You can judge whether a firm’s debt is excessive by comparing one firm’s ________
against others in the industry.
A)multiplier
B)invoices
C)assets
D)liabilities
The trait that can lead people to give themselves more credit for their successes and
take less responsibility for their failures is ________.
A)compassion
B)confidence
C)aggressiveness
D)passiveness
A manager decides that certain activities are best performed by people outside the firm.
This is known as ________.
A)divesting
B)competing
C)outsourcing
D)resourcing
A successful differentiation position requires that a firm satisfy all but which of the
following criteria?
A)one or more buyer needs in a manner superior to competitors.
B)customers so that they pay higher prices for the added points of differentiation
C)the requirement of perceived uniqueness about the product that attracts customers
D)competitive pricing
Two concepts that are critical in evaluating opportunities for diversification and value
creation are revenue-enhancement opportunities and ________.
A)synergy
B)economic logic
C)vertical integration
D)economies of scope
The opportunity for a new venture may revolve around a proprietary ________.
A) process
B) product
C) technology
D) all of the above
If set up right, alliances make sense for all of the following reasons except ________.
A)they can help a company grow faster
B)they can help companies compete with each other better
C)they can help companies introduce new products faster
D)they can expand into new areas less expensively
If a firm is pursuing a growth strategy, the coevolution model of corporate strategy
suggests that it drop alliances developed around ________ and add alliances with
partners using forward-looking strategies.
A)low margin
B)high margin
C)leading-edge
D)commoditized
All of the following countries’ codes of governance recommend a split between the
roles of CEO and chairperson except ________.
A) United States
B) Brazil
C) United Kingdom
D) Russia
The most far-reaching governance reforms in the U.S. in terms of legal requirements
are contained in the ________.
A) Sarbanes-Oxley Act
B) Cadbury Committee Act
C) Enron Act
D) Public Company Accounting Oversight Board Act
The practice of buying something in one market and selling it in another market where
it earns a higher price is called ________.
A)marketing
B)arbitrage
C)promotion
D)sponsorship
The ________ perspective argues that the structure of industries and positioning of
products/services determine whether the firm achieves competitive advantage.
A.general environmental
B.external
C.task environment
D.resource-based
Toyota, a company pursuing an integrated approach, delivers more consumer value
through the use of intangibles such as ________.
A)price
B)features
C)quality
D)product
Which of the following is not one of the steps involved in the PESTEL analysis?
A)Managers should think through the relevance of each of the factors in their particular
context.
B)Managers should identify and categorize the information that applies to these factors.
C)Managers should conduct a thorough stakeholder analysis.
D)Managers should analyze the data collected on the factors and draw conclusions.
What are some of the potential disadvantages to executive ownership?
Explain the four basic forms of organizational structure.
Explain how managers can be both resources and capabilities.
Why is there no single correct price for an acquisition or merger?
What are some of the possible threats facing the low-cost competitive position?
Compare and contrast the traditional and retention forms of stock ownership programs.
What is the capability-building process?