The Bermuda Triangle of Management describes the region where firms are faced with
the need to cross over from new ventures to IPOs.
Strategy must be internally consistent and externally oriented.
Economies of scale exist if average costs are lower at higher levels of production.
Returning to normal is usually the most difficult of the five stages of turnaround.
Examples of differentiated resources include land, debt financing, and unskilled labor.
The economic logic of diversification incorporates levers to achieve synergy and
transfer knowledge between business units.
The CAGE Framework is particularly helpful in determining the arenas and vehicles for
expanded internationally.
If a firm doesn’t need to use an IPO to support its growth, it also doesn’t need to migrate
from visionary to professional leadership management practices.
The use of international outsourcing has decreased significantly in recent years.
Incumbents who use new-market strategies shift competitive focus to the task of
redefining the business model for a part of the existing market.
Instead of retaliation, incumbent firms may strategically decide that ________ is the
best course of action.
A)ignoring new competition
B)waiting for uncertainty to clear
C)cutting off growth possibilities
D)cooperation
Religion falls into the category of ________.
A)nationality
B)demographics
C)socioeconomics
D)background differences
After going public, the founders of an IPO firm generally find that all except ________
happens.
A) They dilute their ownership.
B) They often become minority owners.
C) They leave the company and start a new firm.
D) They accept accountability for their actions to independent outside shareholders.
Which of the following is not one of the possible reasons that late movers survive?
A)the existence of a highly competitive market
B)they are protected by government regulation
C)they have extensive cash reserves
D)they have an oligopolistic industry position
Kohl’s is able to sell products for higher prices than competitors, or manage a higher
priced mix of products. This suggests that one of Kohls’ differentiators might be the
ability to ________.
A)merchandise lower-margin products
B)buy products at a lower price than competitors
C)merchandise higher-margin products
D)buy products at a higher volume than competitors
The stakeholder group composed of the CEO and the members of the top-management
team is important for which of the following reasons?
A)its responsibility for formulating a strategy that realizes the vision and mission
B)its influence over the shareholders and board of directors
C)its role in environmental scanning
D)its responsibility for encouraging teamwork
The basic category of ________ motives for mergers and acquisitions usually reflects
shareholders’ best interests.
A)hubris
B)managerial self-interest
C)synergy
D)synchronicity
Barriers to entry include all of the following except ________.
A)perfect competition
B)strong brands
C)differentiated products
D)government regulations
Most industries have orthodoxies along all of the following dimensions except
________.
A) who the customer is
B) how a benefit is defined
C) what form the product should take
D) what competitors are spending to develop the product
Trade practices between countries can be significantly affected by laws and regulations
enacted at the national or international level, which can include all but which of the
following?
A)free trade agreements
B)property tax laws
C)import laws
D)intellectual property protection
Total average cost can be represented on a graph by ________.
A)a straight line that rises from left to right
B)a straight line that falls from left to right
C)a u-shaped curve that has a minimum point
D)a u-shaped curve that has a maximum point
All of the following are examples of economic factors except ________.
A)inflation rates
B)interest rates
C)exchange rates
D)birth rates
Patching may involve which of the following activities?
A) combining business units
B) splitting business units
C) adding new business units
D) all of the above
The industry environment has strategic groups that seem to be more similar in certain
ways than other members of the larger industry. Which of the following strategic groups
least fit this definition?
A)food and beverage industry
B)entertainment industry
C)automotive industry
D)telemarketing industry
In the corporate world, the “triple bottom line” involves all except ________ objectives.
A) social
B) financial performance
C) community
D) environmental
If a venture has too much money too early, problems may occur which can include all
except ________.
A) the firm’s flexibility can be reduced by depending on significant cash flow from
loans
B) potential problems can be obscured until their consequences become irreversible
C) the firm can end up hiring less qualified personnel
D) the firm can be sheltered from the need to innovate
The ________ perspective involves strategy for growth and risk when viewed from the
shareholder’s or owner’s perspective.
A) financial
B) internal-business-process
C) learning-and-growth
D) external-relations
Researchers have identified significant cultural differences among people of different
countries that include all but which of the following dimension?
A)power distance
B)uncertainty avoidance
C)individualism
D)gender dominance
SWOT is an acronym for strengths, weaknesses, opportunities and ________.
A)technologies
B)threats
C)tools
D)tradeoffs
All of the following are potential alliance partners except ________.
A)competitors
B)new entrants
C)complementors
D)supplementors
What are the four categories of factors that managers can examine to determine if their
industry has globalized or is in the process of globalizing?
Briefly discuss the history of the Cadbury Code.
What are some of the costs associated with exporting? How can firms deal with these
costs?
What is patching, and how is it used in diversified firms operating in dynamic markets?
Why would a firm with innovative capabilities generally choose the differentiation
approach?
Define acquisition.
What is portfolio planning, and what contribution does it make to corporate
diversification?
What are some of the drawbacks of acquisition over internal development?
Explain the five factors that can affect the attractiveness of acquisitions as strategy
vehicles.
What role does strategic leadership play in the strategy implementation process?