Slotting fees are the fees that suppliers pay for access to retailers’ shelf space.
The person who assumes the role of strategic leadership reports directly to the CEO.
New-venture activities are typically more predictable and are, therefore, less risky than
those in which a firm traditionally engages.
Managers may willingly overpay in mergers and acquisitions in order to maximize their
own interests.
Alliances perform better when partners trust each other.
A firm suffering from a liability of newness does not gain benefits from the learning
curve.
eBay generates revenues only through charging listing and selling fees.
Acquisitions increase the risk associated with entering new markets.
When there is perfect competition, relatively heterogeneous products are offered by
different firms.
The physical entry barriers to becoming an exporter are higher than ever before.
SWOT is a simple tool that can be used to develop an understanding of a firm’s external
environment.
There is little or no presence of small firms that are global very early in their business
lives.
An executive team can accommodate diverse input while acting as an integrated unit.
Successful entrepreneurs are often people who challenge orthodoxies.
Which of the following is not an intangible resource?
A)trademarks
B)culture
C)location
D)real estate
The amount received by the target firm’s shareholders in excess of the value of their
stock during a merger or acquisition is called ________.
A)a premium
B)excess capital
C)a bonus
D)increased principal
Firms must be sensitive to environmental factors when relocating to a new area. Some
ways that firms express this sensitivity are by participating in all but which of the
following activities?
A)planting trees
B)performing waste management
C)practicing organic farming
D)setting up power lines
An alliance that involves neither the assumption of equity interest nor the creation of
separate organizations is referred to as a(n) ________.
A)joint venture
B)equity alliance
C)nonequity alliance
D)consortium
The degree to which a company conducts business in more than one arena is called
________.
A)synergy
B)competitive advantage
C)diversification
D)corporate strategy
Many universities are increasing investments that support research faculty in ________.
A) identifying commercial opportunities
B) creating new ventures
C) protecting intellectual property
D) all of the above
Business plans serve the purpose of doing all except which of the following?
A) assuring key stakeholders that the venture has a well-considered strategy
B) helping the entrepreneur reexamine the five elements of the strategy diamond
C) satisfying a requirement for launching the venture
D) sharing goals and objectives, and plans for implementing them.
All of the following are possible implementation levers except ________.
A)structure
B)resources
C)people
D)rewards
When using mergers and acquisitions as substitutes for research and development, the
objectives include ________.
A)short-cut innovation by buying it from small companies
B)synergy of similar but expanded product lines or geographic markets
C)eliminating capacity, gaining market share, and increasing efficiency
D)anticipation of new industry emerging and culling resources from firms in multiple
industries whose boundaries are eroding
A process that effective firms employ encourages middle managers to identify, grow,
and detect new ways of creating value for the organization. This is known as the
________ process.
A)renewal
B)capability-building
C)entrepreneurial
D)reflective
Several uses have emerged from the technology developed by credit card companies.
Which is not one of these uses?
A)employment identification badges
B)hotel keys
C)library cards
D)national park admission cards
_____ is/are typically an all-or-nothing proposition as opposed to incremental
investment over time.
A)Internal development
B)Acquisitions
C)Sole-sourcing
D)Roll-ups
A conglomerate is best described as ________.
A.a business that fits into a specific market or industry category
B.a business that is not diversified
C.a business that sells only one product
D.a highly diversified business that does not fit into one specific category
Stronghold assault may be used to ________.
A)create a sustainable advantage
B)match competitors’ prices
C)eliminate a competitor’s home market monopoly
D)compete more effectively in a growing industry
In the perceptions of consumers, low prices tend to be associated with ________.
A.fast ship times
B.low quality
C.state-of-the-art technology
D.wide availability
The key to logical connection in arenas is ________.
A)value
B)relatedness
C)resources
D)economics
The degree to which products of one industry can satisfy the same demand as those of
another is called ________.
A)threat of new entrants
B)supplier power
C)complementors
D)threat of substitutes
Decision agents are people who put the processes that use the firm’s ________ into
motion.
A)competitive advantage
B)financial capital
C)resources and capabilities
D)research and development
The corporate strategy involves operating in a singular arena.
One of the most successful firms at managing learning through alliance networks is
________.
A)Toyota
B)General Motors
C)Ford
D)BMW
Organizational conflict may emerge as a potential problem in the integration of two
firms as a result of ________.
A)managerial self-interest
B)cultural clashes
C)hubris
D)all of the above
What are some possible threats to the differentiation position?
Define international strategy.
What are some common warning signs of organizational decline?
What are some of the more common industry orthodoxies?
Why is market analysis critical to successful pursuit of the differentiation strategy?
What are the two possible objectives of the new-venture division structural approach?
Why is the minimum efficient scale critical to strategic decisions?