Which key strategic leadership action plays a key role in influencing how the firm
conducts its business and regulates and controls employees’ behavior?
a. Effectively Managing the Firm’s Resource Portfolio.
b. Determining Strategic Direction.
c. Regulating and Controlling Employees.
d. Sustaining an Effective Organizational Culture.
The most numerous of the following organizational characteristics are
a. resources.
b. capacities.
c. capabilities.
d. core competencies.
Some research findings have shown that acquisitions typically for shareholders in the
acquiring firm.
a. result in above-average returns
b. provide approximately average returns
c. result in returns near zero
d. take some time to achieve private synergy, but eventually result in above-average
returns
GM’s newest CEO, Dan Akerson, is building new capabilities in technology
development and marketing, especially in customer service. This is an example of a
CEO developing capabilities into core competencies.
a. True
b. False
The strategic direction of a firm usually focuses on the coming 3 to 5 years.
a. True
b. False
Companies creating financial economies through restructuring typically focus on
high-technology businesses primarily because these firms are human-resource
dependent.
a. True
b. False
Research suggests that emerging economy firms pay a higher premium than other firms
when making cross-border acquisitions (Chapter 7 Strategic Focus).
a. True
b. False
The March 2011 announcement that AT&T was acquiring T-Mobile USA from
Deutsche Telekom is a
acquisition and is intended to
a. vertical; increase diversification.
b. horizontal; increase market power.
c. vertical; overcome entry barriers.
d. related; increase speed to market.
In general, firms can be most effective if they develop business-level strategies that will
serve the needs of the “typical customer” in the industry. a. True
b. False
Charles is a customer service representative for a home improvement store. He has
creative ideas about how to increase customer satisfaction. Charles’s talents will be
most likely to be used in a firm that
a. uses the induced strategic behavior form of internal corporate venturing.
b. uses the autonomous strategic behavior form of internal corporate venturing.
c. makes significant investment in research and development.
d. focuses on an acquisition strategy for gaining innovative ideas.
Which of the following is NOT associated with heterogeneous top management teams?
a. higher firm performance
b. innovation and strategic change
c. diminished debate among top managers
d. better strategic decisions
Executive compensation is considered an external corporate governance mechanism
because it determined in part by market forces.
a. True
b. False
CaseScenario1:BlastFurnace,Inc.,(BFI)
Blast Furnace, Inc., (BFI) provides customized development of automated rich-media
applications, and scalable solutions that allow media and entertainment companies, as
well as enterprises and government organizations, to deploy, manage, and distribute
video content on IP-based networks. The company was founded in 1997 and went
public in 2004; its stock trades on the NASDAQ under the ticker BLST. While
providing solutions to a variety of firms and industries in North America, BFI has
experienced its fastest growth with the security products that it designs and sells to the
U.S. government and U.S. government agencies. This growth is based on its propriety
VUE software, which is a complete identification solution for capturing, analyzing, and
managing multi-biometric information. Proprietary analysis algorithms aggregate and
cross-compare multiple biometrics to increase accuracy and lessen dependence on
single identification techniques. Additionally, specialized encoding techniques reduce
file size and increase analysis and response times. VUE supports a wide range of
applications ranging from ID issuance and verification to gated entry screening for
border patrol, airports, government buildings, and corporations. Essentially, VUE is
able to sift through massive amounts of digitized multimedia files to create a unified ID
dossier of an individual and then identify those individuals rapidly anywhere in the
data. Such a capability is of great interest to security organizations, particularly since
the World Trade Center bombing, because it allows the user to identify suspects within
minutes on a real-time basis anywhere digitized media is being created (like that created
by the hidden and visible surveillance cameras in airline terminals, banks, ATMs, and
other public locations). Once a suspect is entered into the system, the software is
capable of scanning all data sources automatically and without stop. For two years, BFI
has had this market to itself but now two new entrants, a Belgian start-up and the
subsidiary of a Finnish telecom firm, are staking out positions in large non-U.S. markets
like Europe and Asia. BFI’s management fears that if it limits its efforts to North
America, then these aggressive
competitors may eventually develop strongholds in other markets from which they can
launch successful attacks on
BFI’s home turf.Should BFI expand its operations outside of North America?
The differentiation strategy can be effective in controlling the power of rivalry with
existing competitors in an industry because
a. customers will seek out the lowest-cost product.
b. customers of nondifferentiated products are sensitive to price increases.
c. customers are loyal to brands that are differentiated in meaningful ways.
d. the differentiation strategy benefits from rivalry because it forces the firm to
innovate.
The increased pressures for global integration of operations have been driven mostly by
a. new low-cost entrants.
b. increasing demand for similar products.
c. increased levels of joint ventures.
d. the rise of governmental regulation.
A network strategy involves a series of horizontal acquisitions by firms that are
committed to dominating a particular industry.
a. True
b. False