A firm can attain an overall cost leadership position by using automated technology to
reduce scrappage rates.
Product champions are critical during the period after a new venture project has been
defined but before it has gained momentum and achieved project impetus.
Refinements or extensions of existing strategies are often referred to as tactical actions.
The traditional approach to strategic control is interactive, while the contemporary
approach to strategic control is sequential.
The three primary participants in corporate governance are: (1) the shareholders, (2) the
management (led by the chief executive officer), and (3) the employees.
One of the risks of outsourcing is a loss of cross-functional skills.
Multinational firms following a transnational strategy strive to optimize the trade-offs
associated with efficiency, local adaptation, and learning.
Because of the Small Business Administration and government regulations, small
businesses are rarely allowed to bid on government contracts.
The French automobile maker, Renault, attains competitive advantage by revamping
cars to be more cost efficient.
Crowdsourcing is used by companies to develop products.
Technological innovations can create entirely new industries and alter the boundaries of
industries.
Rule-based controls are appropriate in organizations, where most of the employees are
unskilled.
By 2015, it is predicted that trade within nations will exceed trade across nations.
Entrepreneurial new entry is often perceived as a competitive threat because most
market needs are being met, either directly or indirectly, by an existing firm.
Objectives in organizations should be clear, stated, and known by employees
throughout the organization.
In trying to assure that managerial actions lead to shareholder value maximization, a
risk can come about if the market value of a firm becomes less than its book value. The
risk is _____________.
A. it becomes an attractive takeover target
B. the firm will be delisted by the stock exchange
C. the Securities and Exchange Commission will not allow it to declare dividends until
the market value once again exceeds the book value
D. the firm will be unable to service its debt
In an effort to capture key employees from competitors, firms may attract the symbolic
leader of a group within a competing firm and hope others will follow. This has been
termed _____________.
A. the Columbus effect
B. knowledge integration
C. the Pied Piper effect
D. strategically competitive hiring
Expert power _____________.
A. is derived from organizationally conferred decision-making authority
B. arises from manager access, control, and distribution of information that is not freely
available to everyone in an organization
C. is derived from referent power
D. is derived from leader capability and knowledge in a particular field
Which of the following is NOT a disadvantage of the barrier-free form of organization?
A. Lack of strong leadership can lead to coordination problems.
B. Democratic process can be time-consuming and difficult to manage.
C. Additional integration issues result is a slower response to market changes.
D. If trust among employees is not sufficiently high, organizational performance may
suffer.
Peter Senge, of MIT, recognized three types of leaders. __________ are individuals
that, although having little positional power and formal authority, generate their power
through the conviction and clarity of their ideas.
A. Local line leaders
B. Executive leaders
C. Internal networkers
D. Shop floor leaders
When an organization with a functional structure diversifies into related
product-markets, it generally _____________.
A. maintains its functional structure
B. develops a divisional structure
C. develops a matrix structure
D. develops a worldwide product-division structure
As in the case of Siebel Systems (now part of Oracle), elements of a global strategy
may facilitate the competitive advantage of differentiation by _______.
A. increased freedom of individual business units to adapt to local tastes
B. the creation of a worldwide network to achieve consistent service regardless of
location
C. flexibility in applying Research and Development to meet country-specific needs
D. tailoring products to meet country-specific needs
Threat of substitute products comes from ____________.
A. other companies in the same industry
B. foreign companies which can use cheap labor in their countries
C. firms in other industries that produce products or services that satisfy the same
customer need
D. new companies in the same industry
Leadership is a necessary (but not sufficient) condition for organizational success.
Leaders should emerge at which level(s) of an organization?
A. only at the top
B. in the middle
C. throughout the organization
D. only during times of change
Attracting and retaining human capital is a challenge for many firms today. Firms
experiencing high turnover should __________.
A. focus on increased recruiting
B. decrease money spent on human capital
C. adopt effective retention strategies
D. make their work environment less stimulating
The three participants in corporate governance are:
A. the shareholders, board of directors, and employees
B. the shareholders, labor unions, and employees
C. the shareholders, board of directors, and management
D. the shareholders, banks and lending institutions, and management
According to the text, intellectual capital is the difference between the market value and
the book value of a firm. Intellectual capital can be increased by ________________.
A. increasing retention of below average workers
B. decreasing labor costs
C. attracting and retaining knowledgeable workers
D. increasing the turnover of employees
In a retail service industry, which of the following is not a primary value-chain activity?
A. purchasing goods
B. operating stores
C. partnering with vendors
D. human resource management
When an organization with a simple structure increases its sales revenue and volume of
outputs, it is most likely to develop a ______________ structure.
A. divisional
B. functional
C. product-market
D. geographic
Amazon is an example of a company that used the differentiation strategy to enter the
market. The differentiation features included _____________.
A. minimal customer service
B. traditional back office logistics
C. exceptional customer service
D. traditional delivery logistics
Compare and contrast the financial and strategic objectives of corporate
entrepreneurship. Provide examples of each type of objective and discuss their benefits
and/or costs.
Describe the attributes of a functional organizational structure. What are the advantages
and disadvantages associated with using the functional organizational form?
Discuss the key elements of corporate governance.
Discuss the four characteristics of an entrepreneurial opportunity. Explain why each is
important for the opportunity to be viable.
In what ways are human capital and social capital valuable to an entrepreneurial
start-up? Provide examples of each.
What are the four characteristics of effective contemporary control systems? Give
examples of how firms apply these practices.
Briefly describe global start-ups. What advantages do they have and what challenges do
they face?
What are the differences between product and process innovation? What are the
strategic implications of each approach to innovation?
Discuss the six segments of the general environment. Provide examples of how they
might be related.
What are the primary benefits and risks associated with related diversification?