Some excellent examples of mission statements are: To be the happiest place on earth
(Disneyland) and Restoring patients to full life (Medtronic).
Research has shown that executives who have large holdings of stock in their firm were
more likely to have diversification strategies more consistent with shareholder interests,
like increasing long-term returns.
According to the text, new venture ideas must pass through two critical stages to be
implemented by corporations: project definition and project impetus.
Competition tends to be more intense among firms within a strategic group than
between strategic groups.
With reverse positioning, a strategy to be used during the mature stage of the industry
life cycle, a product escapes its category by deliberately associating with a different
one.
Gillette developed the Fusion and Mach 3 shaving systems that created superior
customer value as a result of their core competency in research and development.
Radical innovations are evolutionary applications of novel ideas within existing
paradigms.
The same environmental trend or event may have a very different impact on different
strategic groups within the same industry.
Developing social capital is risky for an organization because social capital is specific
to individuals and remains with the employee, if he or she leaves the organization.
Because of the Internet and digital technologies, it is very difficult for suppliers to
create purchasing techniques that lower switching costs.
A strategic vision provides many benefits. Which of the following is not one of those
benefits:
A. a clear future direction
B. a framework for their organization mission and goals
C. enhanced employee communication and commitment
D. diminished employee participation
Strategic business unit (SBU) structures are best suited for corporations pursuing
_____________, whereas holding company structures are best suited for companies
with ______________ strategies.
A. product-market diversification; international
B. international diversification; product-market
C. related diversification; unrelated diversification
D. unrelated diversification; related diversification
Scanning the general environment would identify information on _______________.
A. substitute goods
B. the aging population and ethnic shifts
C. customer and firm bargaining power
D. competitive rivalry
The late Sam Walton, founder of Walmart, used to give pep rallies at local Walmart
stores. What purpose did this serve?
A. It was used to remind employees of Walmart rules and regulations.
B. It helped reinforce and sustain the Walmart culture.
C. It demonstrated to employees the importance of articulating explicit goals and
objectives.
D. It made the Walmart reward system very explicit.
The least effective way to retain human capital is to _________.
A. encourage employee identification with organizational mission and goals
B. provide employees with a challenging and stimulating work environment
C. require employees to sign agreements that prevent them from working for
competitors in the future
D. provide employees with financial and nonfinancial rewards and incentives
Because the Internet lowers barriers to entry in most industries, it ________.
A. decreases the threat of new entrants
B. increases the threat of new entrants
C. makes it easier to build customer loyalty
D. increases supplier power
Portfolio management matrices are applied to what level of strategy?
A. departmental level
B. business level
C. international level
D. corporate level
Multinational firms are constantly faced with the dilemma of choosing between
_______ and __________.
A. local adaptation; global integration
B. local adaptation; local integration
C. global adaptation; local integration
D. global adaptation; global integration
The downsides or limitations of mergers and acquisitions include all of the following
EXCEPT:
A. Premiums that are frequently paid to acquire a business are expensive.
B. Difficulties exist in integrating the activities and resources of the acquired firm into
on-going operations.
C. There can be many cultural issues that can doom an otherwise promising acquisition.
D. It is a slow means to enter new markets and acquire skills and competences.
In corporations with a strong entrepreneurial culture, the willingness and ability to
change _____________.
A. is imposed from the top-down
B. is considered a core capability
C. often leads to instability
D. often worries stakeholders such as suppliers and creditors
Social capital has many potential benefits. However, according to the text, social capital
_________.
A. is always beneficial to a firm
B. usually restricts the productivity of employees
C. may or may not be beneficial to a firm
D. always hurts firm performance
Which of the following is not a characteristic of a successful learning organization?
A. It creates a proactive, creative approach to the unknown.
B. It actively solicits the involvement of employees at all levels.
C. It regularly engages in activities to reinforce the status quo.
D. It enables everyone to use their intelligence and apply their imagination.
Complicated working relationships, intense power struggles, and excessive reliance on
group processes are disadvantages of which type of organizational structure?
A. divisional
B. matrix
C. holding company
D. functional
One of the following is not a type of risk that executives must address. Which is it?
A. business risk taking
B. financial risk taking
C. personal risk taking
D. product-market risk taking
The innovation dilemma known as seeds versus weeds refers to _____________.
A. choosing to pursue radical rather than incremental innovations
B. choosing to pursue product rather than process innovations
C. promoting organizational stars onto innovation teams rather than involving all
employees in innovation efforts
D. choosing to pursue investment in one innovative idea over another
Generally speaking, the opportunity recognition process consists of two phases of
activity. They are ______________ and _____________.
A. global search; recycling profits
B. value creation; affordability
C. discovery; evaluation
D. global search; valuation
A global start-up faces many management challenges including _____________.
A. communication and coordination across time zones
B. pressure to perform internally all primary activities of the value chain
C. assuring financing from home country only
D. hiring only from home country
A narrow market focus is to a differentiation-based strategy as a __________________.
A. growth market is to a differentiation-based strategy
B. broadly-defined target market is to a cost leadership strategy
C. growth market is to a cost-based strategy
D. technological innovation is to a cost-based strategy
Which of the following examples demonstrates how successful organizations manage
their primary activities?
A. Motorola has revised its compensation system to reward employees who learn a
variety of skills.
B. Hewlett Packard has cut lead time from five days to one by employing JIT inventory
management.
C. National Steel improved its efficiency by reducing the number of job classifications.
D. Wal-Mart implemented a sophisticated information system that resulted in reduced
inventory carrying costs and shortened customer response times.