An acquisition ensures that a firm enters a new business with viable competitive
strength.
How managers define an industry is critical to the formulation of a strategy for
competing in it.
When bonuses are tied to accounting indicators of performance, executives may be
motivated to alter year-end income deferrals.
Whether or not an alliance is deemed as strategic does not depend on the degree to
which one or both parties’ survival or competitive advantage depends on the alliance.
The degree of rivalry is influenced by both complement exclusivity and price
sensitivity.
Downsizing will usually result in a short-term stock price improvement.
Accumulating resources is a dynamic process.
People with ethnocentrism believe that their ethnic group is superior to all others.
Possessing and controlling a resource are necessary and sufficient for gaining a
competitive advantage.
Managers may have self-serving motives for diversification.
A firm that is a second mover is also a late mover.
In countries when ownership is highly concentrated, owners typically have low levels
of influence over corporate affairs.
In the area of international strategy, distance can not only be viewed in terms of
geography, but also in terms of all but which of the following?
A)culture
B)language
C)administrative heritage
D)economics
Industry characteristics that contribute to entry barriers include all but which of the
following?
A)marketing strategies
B)strong brands
C)proprietary technologies
D)bases for product differentiation
Which of the following alliances involves more than two partners?
A)joint venture
B)equity alliance
C)nonequity alliance
D)consortia
The profit to be gained from buying a parent firm and selling off its portfolio piecemeal
gives potential buyers a significant ________.
A)pre-sale profit
B)consolidation discount
C)diversification discount
D)competitive advantage
If/when implementing strategic change, managers have the following combination of
change elements: communication of vision, skills, resources, structure, and execution
plan, which of the following forms of strategic change will most likely occur?
A) confusion
B) stress
C) gradual change
D) chaos
Something that a firm can do that competitors cannot do is called a ________.
A)resource
B)dynamic capability
C)strength
D)distinctive competence
Business strategy alliances tend to fall into two major categories: vertical alliances or
________.
A)vertical integration
B)horizontal integration
C)horizontal alliances
D)acquisitions
Corporate strategy is largely concerned with determining the right mix of businesses in
the corporate portfolio and ________.
A)analyzing the industry conditions
B)developing business-specific competitive plans
C)determining the right mix of products and/or services
D)ensuring that the corporate portfolio creates shareholder value
All of the following should be considered by a firm contemplating a first-mover
strategy except ________.
A)the inimitability of its new product
B)the firm’s monopolistic industry position
C)the switching costs holding together current customer relationships
D)the strength of its complementary assets
_______ refers to a situation in which firms are both competitors and cooperative
partners.
A)Co-opt alliance
B)Consolidation
C)Cooperation
D)Co-opetition
Which of the following is a disadvantage associated with stock options?
A) They may increase risk taking.
B) They motivate executives to act like owners.
C) They align incentives with shareholder interests.
D) They encourage executives to create stock value.
Provisions in managers’ compensation packages that offer significant bonuses when
loss of employment is a consequence of an acquisition is known as a golden ________.
A) handshake
B) parachute
C) buyout
D) safety net
All of the following are examples of social trends except ________.
A) changes in lifestyles
B) changes in population composition
C) interest rate increases
D) attitudes toward personal health
Which of the following concepts describes the process used to decide what a firm
should do?
A.strategy integration
B.strategy implementation
C.strategy formulation
D.strategic alignment
The leader’s role of disseminator is best described by which of the following?
A)The executive taps into a network of contacts to collect needed information.
B)The executive passes necessary information to external stakeholders.
C)The executive passes necessary information to internal stakeholders.
D)The executive designs the firm’s strategy.
What are some of the advantages of bonus plan incentives?
What are some of the benefits to the multidivisional structure?
What are the three elements of the entrepreneurial process?
Compare corporate strategies in dynamic and stable contexts.
According to Michael Porter’s theory, what factors determine competitive advantage?
How do people (employees) influence a firm’s performance?
What is a stock option?