Minimum efficient scale is an explanation for the use of alliances as a foreign-entry
tactic.
Companies can reduce human capital loss by developing industry-specific, transferable
knowledge.
Executive compensation tends to be linked to firm size.
Growth of local and foreign national economies and exchange rates are critical
economic factors.
Economies of scope are only possible in production.
In the 1970s, alliances were likely to gain economies of scale and scope.
Many large monopolistic companies were broken up as a result of the Great Depression.
Some firms use acquisitions instead of internal research and development.
The decline in U.S. manufacturing employment is a direct consequence of automation
and importation.
In most situations, the interests of principals and agents naturally overlap completely.
Which of the following is not one of the ways that Gallo Wines uses to achieve its
low-cost leadership position?
A)innovative cost-effective blending techniques
B)scale economies in distribution
C)scale of operations
D)scope of involvement
Focus positions may fail because of all of the following except ________.
A)trying to meet the needs of too many customers
B)straddling inconsistent positions
C)being out-focused by competitors
D)attempting to grow beyond the niche
All but which of the following can impede management’s designs to create synergies?
A)bureaucratic costs
B)transaction costs
C)complexity
D)simplicity
A strategy by which a firm sacrifices local responsiveness for the lower costs associated
with global efficiency is referred to as ________ vision.
A)multinational
B)transnational
C)international
D)global
Decision-making bias under which people are willing to commit additional resources to
a failing course of action is called ________.
A)illusion of control
B)self-serving fairness bias
C)illusion of optimism
D)escalation of commitment
According to the text, leadership can best be defined as which of the following?
A)the task of ensuring that all people hired within an organization are qualified
B)the task of exerting influence on other people’s pursuit of goals in an organizational
context
C)the task of reporting company progress in the business world to the media
D)the task of finding new locations, designing new facilities, and hiring contractors
The initial pre-closing screening, analysis, and negotiations for an acquisition is
referred to as ________.
A)idea generation
B)justification
C)due diligence
D)symbiosis
Corporation new venturing may take the form of either establishing a new business or
________.
A) creating a new-ventures division
B) merging with an equal-sized competitor
C) acquiring a smaller competitor
D) establishing a global market presence
In an oligopoly, ________.
A)there is only one seller in the market
B)the industry is characterized as concentrated
C)firms are typically regulated
D)the industry is characterized as fragmented
The concept that selling many individual products that each have low sales volume can
add up to huge revenues is called ________.
A) Short Tail
B) Long Tail
C) Short Leash
D) Long Leash
All of the following are advantages of bonus-plan incentives except ________.
A) they are easily revocable
B) they can be tied to financial performance
C) they can be linked with customer satisfaction
D) they may create short-term bias
Regardless of the actual formal structure, those firms that foster ________ relationships
are more likely to see achievement of desired results beyond what they could normally
expect.
A) fluid and living network
B) internal and external customer
C) effective interpersonal
D) close management-employee
Firms with strong cultures generally achieve all of the following except ________.
A) higher levels of return on investment
B) higher net income growth
C) higher levels of attrition
D) higher change in share price
Which statement about the dynamic perspective is true?
A.A firm’s market position tends to remain relatively stable over time.
B.The current market position of a firm is not an accurate predictor of its future
performance.
C.Competitive advantage is determined by the structure of the industry.
D.Competitive advantage is determined by industry attractiveness.
All of the following are critical decisions that need to be made during the justification
stage except ________.
A)strategic assessment
B)organizational conditions
C)technological alignment
D)implementation timing
The rationale for the use of stock options is that they motivate executives to ________
and take reasonable risks that result in the company’s stock price increasing.
A) work harder
B) keep an eye on the stock market
C) act like owners
D) take less initial salary
Reductions in average costs that result from producing two or more products jointly
instead of producing them separately are called ________.
A)cost advantages
B)economies of scope
C)synergistic integrations
D)strategic values
A profit pool map will reveal the segments in which money is ________ in an industry.
A)increasing at the highest rate
B)increasing at the lowest rate
C)below the profit line
D)actually being made
Using the carbonated beverage industry, describe the industry value chain.
What are integration managers and what role do they play in mergers and acquisitions?
What are some strategic questions that managers must ask concerning the relationship
between staging and international strategy?
What is the definition of succession planning?
What is the definition of ethnocentrism?