Technological integration is critical in most acquisitions because of the time value of
money.
The external perspective on competitive advantage is based on the assumption that
differences in competitive advantage are a function of the uniqueness of the firm.
A firm needs to consider its international strategy when any potential competitor is not
domestic.
Stakeholder analysis allows managers to gain a better understanding of the groups and
individuals who have a vested interest in the firm’s strategy and some influence on the
firm’s performance.
The balanced scorecard can serve as a tool for communicating vision and mission
throughout an organization.
Currently, the SEC requires companies to open road shows to all investors, including
individuals and analysts.
Alliances are vehicles for exploring and implementing diversification options.
Strategic positioning increases the effects of rivalry and decreases profitability.
Stronghold assault creates a sustainable competitive advantage.
Key people are among the tangible resources and capabilities that distinguish the
potential new venture as an opportunity.
The financial success of any acquisition has a significant effect on the overall economic
logic of a firm’s strategy.
Owning resources that don’t meet the VRINE criteria is considered a necessary element
of conducting business.
Diversification of a firm’s revenue stream creates immense value for shareholders.
Revenue enhancement synergies are also sometimes referred to as ________.
A)soft synergies
B)hard synergies
C)economic synergies
D)engineering synergies
In the context of a firm’s industry evolution, arenas must fit with all but which of the
following?
A)resources
B)capabilities
C)customer base
D)dynamic capabilities
Price competition tends to be more fierce in industries that are ________.
A)new to the marketplace
B)well-established
C)growing rapidly
D)growing slowly
Tradeoff protection requires firms to ________.
A)patent their core competencies
B)trade some of their tangible resources for intangible resources
C)alternate between the stock and flow of resources
D)add and eliminate value-chain activities
Global expansion is viewed as necessary for medium and large organizations for all of
the following reasons except ________.
A)that many domestic markets in developed countries are becoming saturated
B)that efficiencies in all value-chain activities are linked across borders
C)that knowledge is uniformly distributed around the world
D)that customers themselves are becoming global
_____ stock ownership guidelines establish ownership through a multiple-of-salary
approach.
A) Traditional
B) Contemporary
C) Non-CFO level
D) Outside
Two factors determine the size and organization of corporate-level management,
including the scope of the firm’s involvement in disparate arenas and the ________.
A)diversity of management
B)organizational strategy
C)firm’s resources
D)stability of the arena
The three major inputs into an organizational strategy are resources, capabilities, and
________.
A)performance
B)tangible assets
C)strategic leadership
D)intangible assets
________ is calculated by multiplying the number of shares outstanding by their market
price.
A)Intrinsic value
B)Current value
C)Market value
D)Present value
Complimentors are players who provide complementary rather than competing products
and services. This category has been associated with the five-forces model and includes
all but which of the following elements?
A)barriers to complement entry
B)difficulty of engaging complements
C)buyer perception of complements
D)seller perception of complements
Which of the following is not a characteristic mindset of new-market creation?
A)emphasizes substitutes across industries
B)emphasizes redefinition of buyers’ preferences
C)looks across strategic groups and industry segments
D)emphasizes efficient operation of the traditional business model
________ is an alliance in which one or more partners assume a greater ownership
interest in either the alliance or another partner.
A)Joint venture
B)Equity alliance
C)Nonequity alliance
D)Consortium
_____ are inputs that firms use to create goods or services.
A)resources
B)capabilities
C)tradeoffs
D)competences
_____ distance captures fundamental differences relating to income, the distribution of
wealth, and the relative purchasing power of segments of a geographic market.
A)Economic
B)Cultural
C)Geographic
D)Administrative
Conditions under which average total costs for a unit of production is lower at higher
levels of output are called ________.
A)scope of involvement
B)economies of scale
C)learning curves
D)fixed costs
All of the following are possible self-serving motives for diversification except
________.
A)shareholder value
B)risk reduction
C)empire building
D)compensation
_____ programs express ownership as a percentage of the gains resulting from the
exercise of stock options and other equity-based incentives, such as restricted stock.
A) Regulation
B) Retention
C) Stock option
D) Reimbursement
In an overcapacity acquisition, the objectives include ________.
A)short cut innovation by buying it from small companies
B)synergy of similar but expanded product lines or geographic markets
C)eliminating capacity, gaining market share, and increasing efficiency
D)anticipation of new industry emerging and culling resources from firms in multiple
industries whose boundaries are eroding
In a monopoly, ________.
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
Scarcity relative to demand is called ________.
A)valuable
B)distinctive
C)rarity
D)tangible
BP and Exxon Mobil possess significant capabilities in exploration, extraction, refining,
and distribution. These companies are categorized as highly ________ because they are
involved in every stage of the value chain.
A)integrated
B)diversified
C)tangible
D)capable
Explain the relationship between R&D and internationalization.
What categories should be considered when analyzing a firm’s economic logic?
How did the American Medical Association use shaping strategy in its response to
chiropractic medicine?
Discuss some of the various types of production costs.
What is a qualified opinion from an independent SEC-approved auditor who audit’s a
firm’s financial statements?
What are some of the benefits of acquisition over internal development?