When a merger takes place, there is a transfer of ownership.
A frequent flyer program is an example of a barrier to customer mobility.
Economic logic is the means by which a firm will earn a profit by implementing a
strategy.
Social change is more obvious than other forms of external change.
Competitive advantage is developed when a firm can create value in similar ways to
their rivals.
JetBlue’s decision to secure a home base at JFK Airport when the New York Port
Authority was anxious to attract more air traffic is an example of a decision regarding
the “arenas” element of strategy.
Most of the motives behind mergers and acquisitions reflect shareholders’ best interests.
Outsiders bring a fresh strategic perspective.
Price competition increases when rivalry is reduced.
Corporate strategy addresses issues-related decisions about entering or exiting an
industry.
Productivity gains are possible when activities linked in the value chain are supported
with transaction-specific investments.
Communicating upward means enlisting the support of the lower- and middle-level
managers.
Learning is enhanced if a firm develops specific processes for managing ________.
A)production
B)employee relations
C)disputes
D)knowledge exchange
All of the following are examples of equity entry modes except ________.
A)greenfield investments
B)alliances
C)wholly owned subsidiaries
D)contracted R&D
During the ________ stage of the industry life cycle, there is no standardized
technology and uncertainty is high.
A)embryonic
B)growth
C)maturity
D)decline
Airline companies struggle with staying competitive amid rising costs. Many airlines
have stopped ________ to save money.
A) transferring luggage
B) using the hub system
C) converting exclusively to Boeing 737s
D) serving meals
Exaggerated managerial self-confidence that may result in an overestimation of the
value of a potential acquisition is referred to as ________.
A)synergy
B)overconfidence
C)hubris
D)effrontery
During the ________ stage of the industry life cycle, competition is marked by mergers
and acquisitions.
A)embryonic
B)growth
C)maturity
D)decline
Attitudes toward consumerism, environmentalism, and the roles of men and women in a
local society are examples of what type of factors?
A)economic
B)sociocultural
C)political
D)legal
Examples of complementors can include all but which of the following?
A)music and electronics industries
B)food and wine industries
C)clothing and footwear industries
D)baseball and football industries
The disadvantage a firm faces by not being a local player is referred to as liability of
________.
A)newness
B)governance
C)foreignness
D)coordination
The most clear-cut cause of resources and capabilities being difficult to substitute is
________.
A)property rights
B)replication
C)inimitability
D)distinctive competencies
According to the CAGE framework, which of the following is an example of a product
most affected by economic distance?
A)mobile phones
B)electricity
C)financial services
D)mass transportation
Which of the following is not one of the ways alliances can help firms achieve their
objectives?
A)Alliances spread the risk of business ventures.
B)Alliances allow companies to stabilize their environments.
C)Alliances give firms access to resources and capabilities that they might lack.
D)Alliances give firms access to shared knowledge.
Multiple alliances might easily come to resemble a web of complex network
relationships among all except ________
A)competitors
B)complementors
C)suppliers
D)co-opetors
During the ________ stage of the industry life cycle, products begin to resemble
commodities.
A)embryonic
B)growth
C)maturity
D)decline
A group of individuals that formally represent the firm’s shareholders and oversee the
work of executives are referred to as ________.
A) agents
B) board of directors
C) managers
D) governing boards
The continued success of highly profitable growth companies results largely from
________.
A) skill in recruiting people who fit the organization
B) finding people with differing values and beliefs
C) attracting people who wish to work toward autonomous goals
D) all of the above
A business utilizing the “people and rewards” implementation lever would most likely
carry out which of the following?
A.providing on-the-job training programs
B.instituting just-in-time inventory control
C.reorganizing the company’s management hierarchy
D.decentralizing the company’s business operations
Some things that would be in shareholders’ best interests may be detrimental to the best
interests of executives, and vice versa.
Firms may find internal development preferable to acquisitions for all of the following
reasons except ________.
A)acquisitions are less expensive than internal development
B)internal development entails incremental investment over time
C)acquisitions are all-or-nothing propositions
D)organizational conflict is more likely during acquisitions
Suppliers are considered to be powerful when they control factors that include all but
which of the following?
A)postpurchase service
B)fuel prices
C)payment terms
D)minimum orders
Explain the relationship between competitive context and the alliance decision.
Economies of scale exist if average costs are lower at higher levels of production. What
actions can be taken by firms that result in economies of scale?
Briefly explain new-venture creation versus corporate renewal.
PESTEL is an acronym for what?
What are the three criteria that appear to be common among successful outsourcing
arrangements?