In single loop learning, the assumptions, premises, goals, and strategies of the
organization are continuously monitored, tested, and reviewed.
Entrepreneurial competitive dynamics refers to a cycle of actions and responses
between firms competing for the same customers.
Vertical integration is attractive when market transaction costs are higher than internal
administrative costs.
Coercive power is the power exercised by use of fear of punishment for errors of either
omission or commission by employees.
To enhance integration and control of related product market activities, the functional
structure minimizes centralization.
The example of Lexus automobiles in the text points out that a firm can strengthen its
differentiation strategy by achieving integration at multiple points along the value
chain.
Outsourcing in noncore functions of modular companies offers the advantage of
decreased overall costs, but the company will be unable to focus on scarce resources in
the areas where it holds competitive advantage.
When U.S. currency appreciates against other currencies, U. S. goods can be less
expensive to consumers in foreign countries.
Corporate codes of conduct provide norms and expectations for employees to not
commit unethical acts.
Since electronic teams (e-teams) seldom meet face-to-face, it is NOT important for
them to be concerned with how to combine individual contributions effectively.
A successful differentiation strategy lowers entry barriers because of customer loyalty
and the ability of the firm to provide uniqueness in its products and services.
Creative intelligence involves the ability to see patterns in data, integrating data, and
making insights. Which of the following are the four patterns of action managers should
take in order to develop more creative and higher potential innovations?
A. observing, experimenting, cataloging, and networking
B. questioning, observing, integrating, and networking
C. questioning, observing, experimenting, and networking
D. observing, experimenting, cataloging, and integrating
The CEO scraps the company commission-based reward system, because it rewards
employees for inappropriate behavior. This is an example of _____________.
A. setting a direction
B. designing the organization
C. unethical behavior
D. failure to maintain the status quo
New knowledge involves the continual interaction between __________ and
__________ knowledge.
A. intellectual; pragmatic
B. tacit; explicit
C. theoretical; practical
D. detailed; tacit
Which of the following is not a disadvantage of a divisional type of organizational
structure?
A. It can be very expensive compared to a functional organizational structure.
B. There is a strong tendency for divisions to focus on short-term performance.
C. There can be dysfunctional competition among divisions.
D. There is separation of strategic and operating control.
Emerging sociocultural changes in the environment include ____________.
A. changes in the ethnic composition
B. the increasing educational attainment of women in the past decade
C. progressively less disposable income by consumers
D. changes in the geographic distribution of the population
Which of the following is most often true of mature markets?
A. Some competitors enjoy a significant operating advantage due to increasing
experience effects.
B. Advantages that cannot be duplicated by other competitors are difficult to achieve.
C. The market supports premium pricing, which attracts additional competitors.
D. The magnitude of pricing differences and product differentiation is larger than in the
growth stage.
Which of the following is an advantage of a divisional type of organizational structure?
A. efficient use of managerial and technical talent
B. an enhanced ability to respond quickly to changes in the external environment
C. high degree of emphasis on long-term performance
D. uniformity in image and quality across divisions
Which of the following is not a guideline an organization can use to promote the
challenging of the status quo?
A. establishing a culture of dissent
B. forcefully creating a sense of urgency
C. fostering a culture that encourages risk taking
D. creating a results-based reward system