The Michael Porter Diamond of National Advantage is a framework that explains why
countries foster successful multinational corporations based on factor endowments and
demand conditions only.
Firms that compete on overall cost leadership are vulnerable if there is an increase in
the cost of the inputs on which the advantage is based.
A car manufacturer controls its own system of dealerships to ensure retail outlets for its
products. This is an example of backward integration.
Crowdsourcing technologies, such as used by IBM when it hosted an Innovation Jam,
do not foster collaboration between employees, customers, suppliers, and other
stakeholders in their efforts to enhance innovation.
At times, the only other people who may have benefited from a merger-acquisition were
the shareholders of the acquired firms.
In most effective evaluation and reward systems employees only receive evaluation and
feedback from their immediate supervisor.
An important implication of the balanced scorecard is that managers need NOT look at
their job as primarily balancing stakeholder demands.
Opportunity recognition is the process of identifying, selecting, and developing
entrepreneurial opportunities.
The matrix structure attempts to combine the advantages of the functional and
product-oriented structure.
The potential advantages of strategic alliances and joint ventures include entering new
markets as well as developing and diffusing new technologies.
CalPERS, the California Public Employees Retirement System, manages over 240
billion dollars in assets. As an example of shared activism, they review all short- and
long-term performance figures for each of the firms in which they invest and request
changes in the governance structure of those firms, when they feel the firm is not
responsive to their concerns.
All of the following are components of emotional intelligence (EI) except
_____________.
A. self-awareness
B. self-regulation
C. self-promotion
D. empathy
Corporate-level strategy focuses on _____________.
A. gaining long-term revenue
B. gaining short-term profits
C. decreasing business locations
D. managing investment bankers and their interests
Which of the following is an important characteristic of a leader?
A. goal-oriented
B. satisfied with the status quo
C. reactive
D. focused on past performance
The most likely time to pursue a harvest strategy is in a situation of _______.
A. high growth
B. strong competitive advantage
C. decline in the market life cycle
D. mergers and acquisitions
Common features of a dispersed approach to corporate entrepreneurship include all of
the following except _____________.
A. semi-autonomous new venture groups
B. use of product champions
C. a top-down approach to supporting entrepreneurial behavior
D. an entrepreneurial culture
Pandora entered the radio business in 2000 using the Music Genome Project system that
analyzes music for its underlying traits as a means to distinguish itself. It was using
______________ entry strategy.
A. a pioneering
B. an imitative
C. an adaptive
D. a creative
Which of the following is a reason for the rise in regional expansion?
A. increase in the number of trading blocs and free trade zones
B. decrease in the number of trading blocs and free trade zones
C. increasing national trade restrictions
D. increasing local taxes and tariffs
Coca-Cola, Ford Motor Company, H. J. Heinz, Nike, and Procter and Gamble are
working together to develop plant-based plastics. Each company brings its own
competency to the table. This collaboration is an example of a _____________.
A. virtual organization
B. modular organization
C. horizontal organization
D. vertical organization
What are some of the pitfalls of real options analysis (ROA)?
PPG Industries, the Pittsburgh-based manufacturer of paints, coatings, optical products,
specialty materials, chemicals, glass, and fiber glass suffered serious failures in 1986
and 1987 when it attempted to diversify its offers. It used a technique to help it identify
possible future strategies. What was it?
A. crowdsourcing
B. scenario analysis
C. competitive intelligence
D. monitoring
According to the study by OReilly and Tushman, effective ambidextrous structures had
all of the following attributes except _____________.
A. a clear and compelling vision
B. managerial efforts were highly focused on revenue enhancement
C. cross-fertilization among business units
D. established units were shielded from the distractions of launching new businesses
Which of the following is not part of a good guideline list for managing strategic
alliances?
A. establishing a clear understanding between partners
B. not shortchanging your partner
C. relying primarily on a contract to make the joint venture work
D. working hard to ensure a collaborative relationship between partners