____ can help an organization overcome inertia.
A.Power struggles
B.Capabilities
C.Prior strategic commitments
D.A crisis
E.The Icarus paradox
To be commercially successful, new products must be developed with ____ utmost in
mind.
A.manufacturing requirements
B.engineering technology
C.customer requirements
D.sales techniques
E.technical requirements
Which of the following is not an objective of a transnational company?
A.Local responsiveness
B.Realization of experience-based economies
C.Low cross-national integration
D.Global learning
E.Realization of location economies
Consider a cost curve, with production volume on the horizontal axis and marginal
costs on the vertical axis. What shape would the marginal cost curve most resemble in a
high-tech industry?
A.Upward at a 45-degree angle
B.U-shape
C.Straight and vertical
D.J-shape
E.Straight and flat
If a first mover does not have complementary assets, barriers to imitation are low, and
there are many capable competitors, the first mover should
A.license the innovation to others.
B.enter into a joint venture to protect the product.
C.produce the product itself.
D.sell the technology outright to another firm.
E.wait until competitors develop an alternative product.
Meineke Car Care Centers, Dunkin’ Donuts, Burger King, Subway, and Liberty Tax
Service all use which of the following strategies for consolidating in a fragmented
industry?
A.Horizontal merger
B.Chaining
C.Divestment strategy
D.Niche strategy
E.Franchising
A radio station has a distinctive competency in developing new products (shows) and
wants to serve the upscale market. Which of the following is the most appropriate
generic strategy for this company?
A.Cost leadership
B.Differentiation
C.Both cost leadership and differentiation
D.Focused low-cost approach
E.Focused differentiation approach
Which of the following is not a characteristic of emotional intelligence?
A.Self-awareness
B.Self-regulation
C.Self-esteem
D.Empathy
E.Social skills
Transfer pricing is used most commonly in a
A.functional structure.
B.product team structure.
C.multidivisional structure.
D.matrix structure.
E.geographic structure.
The three main types of diversification strategies are
A.Acquisitions, joint ventures, and divestments.
B.Acquisitions, mergers, and buy outs.
C.Acquisitions, internal new ventures, and joint ventures.
D.Related acquisitions, unrelated acquisitions, and mergers.
E.Joint ventures, strategic alliances, and long-term contracts.
Which of the following is not a characteristic of well-constructed goals?
A.They are precise and measurable.
B.They are the result of a group decision process.
C.They specify a time period.
D.They are challenging but realistic.
E.They address critical issues.
Which structure has been adopted by most large, complex U.S. companies?
A.Multidivisional
B.Product
C.Product team
D.Market
E.Functional
Which of the following factors tends to accelerate customer demand for a product?
A.The product’s relative advantage
B.The product’s compatibility
C.The simplicity of the product’s use
D.The degree to which a product can be experimented with
E.All of these
Which of the following strategies allows interdependent firms indirectly to coordinate
their actions?
A.Cost cutting
B.Vertical integration
C.Preemption
D.Price signaling
E.Horizontal mergers
The experience curve refers to the
A.learning by doing technique.
B.company’s overall experience in a particular industry.
C.systematic lowering of the cost structure and unit cost reductions.
D.diseconomies of scale caused by inexperienced workers.
E.increases in unit costs experienced over time.
As a barrier to new entry, absolute cost advantages can be based on
A.continuous advertising of brand and company names.
B.high product quality, service-oriented innovations, and good after-sales service.
C.cost reductions that arise from the mass production of standardized output.
D.the unique ability of established companies to spread fixed costs over a large volume.
E.control over low-cost inputs required for production, be they labor, materials,
equipment, or management skills.
When a company increases its growth rate by taking goods or services developed at
home and selling them internationally, it is
A.leveraging its existing products.
B.taking the path of least resistance.
C.engaging in price positioning.
D.realizing cost economies from global expansion.
E.realizing location economies.