Knowledge workers are more loyal to their companies than traditional workers.
Even with all of the advances in recent years, forecasting is typically considered more
of an art than a science and it is of little use in generating accurate predictions.
An oil refinery secures land leases and develops its own drilling capacity to ensure a
constant supply of crude oil. This is an example of forward integration.
The use of the strategic group concept is generally not helpful in charting the future
directions of the strategies of a firm.
Corporate venturing that is focused permeates all parts of the organization and involves
every member of the organization.
According to the text, a mission statement is an overarching statement that is massively
inspiring, long term, and only discusses the purpose of the company.
The evaluation phase of opportunity recognition occurs when an entrepreneur has an
insight about a new business venture, often based on prior knowledge.
There can be a high-integrity organization, without high-integrity individuals.
Cooper Industries has followed a successful strategy of related diversification. There
are few similarities in the products it makes or the industries in which it competes.
The structure of a firm typically has almost no effect on its strategy.
Codes of conduct help employees from diverse backgrounds to work more effectively
across cultural backgrounds.
The acquisition of two or more counter-cyclical businesses is an example of using
diversification to reduce risk.
One major advantage of the holding company form of organization structure is that it
minimizes the duplication of functional activities between product lines.
Strategic objectives are more specific than vision statements.
Industries characterized by high economies of scale typically attract fewer new entrants.
Which of the following is not characteristic of a disruptive innovation?
A. It is usually more sophisticated technologically.
B. It appeals to less demanding customers.
C. It is typically a less expensive solution for meeting a need.
D. It usually takes root in a new market or the low-end of an existing market.
Which of the following is a support activity?
A. inbound logistics
B. technology development
C. operations
D. customer service
Which of the following is not a potential pitfall of a focus strategy?
A. Erosion of cost advantages can arise within the narrow segment.
B. Product/service offerings that are highly focused are subject to competition from
new entrants.
C. All rivals share a common input or raw material.
D. Focusers can become too focused to satisfy buyer needs.
Two common forms of a focused approach to corporate entrepreneurship include
______________ and _____________.
A. internal collaboration; internal venturing
B. social capital; collaboration capital
C. business incubators; new venture groups
D. focus groups; business incubators
Which of the following is NOT one of the characteristics of a contemporary control
system?
A. It is a key catalyst for an ongoing debate about underlying data, assumptions, and
action plans.
B. It must focus on constantly changing information that is strategically important.
C. It circumvents the need for face-to-face meetings among superiors, subordinates, and
peers.
D. It generates information that is important enough to demand regular and frequent
attention.
The sale of Boeing commercial aircraft and Microsoft operating systems in many
countries enables these companies to benefit from ____________.
A. higher prices in their domestic markets
B. reducing their exposure to currency risks
C. economies of scale
D. optimizing the location for many activities in their value chain
Which of the following statements about leadership is not true?
A. Leadership is focused on the creation and implementation of a creative vision.
B. Leadership is the process of transforming organizations from what they are to what
the leader would have them become.
C. Leaders support the status quo and seek control mechanisms to maintain it.
D. Effective implementation of strategy is essential for successful leadership.
Which of the following statements about simple organizational structures is not true?
A. Small firms with a narrow product-market scope will adopt such a structure.
B. Decision making authority is highly centralized.
C. There is little specialization of tasks.
D. Creativity and individualism are rare.
Fees that a multinational receives from a foreign licensee in return for its use of
intellectual property (trademark, patent, trade secret, technology) are usually called
_____________.
A. transfer prices
B. dividends
C. royalties
D. intra-corporate inflows
Rules and regulations are examples of ______________ and _____________.
A. controls; behaviors
B. controls; norms
C. boundaries; behaviors
D. boundaries; constraints
To overcome barriers to organizational change, companies work more collaboratively
than in the past. In companies such as Microsoft, an important obstacle to effective
collaboration is _____________.
A. higher-level political battles
B. competition
C. effective leadership
D. poor organization
Effective vision statements include:
A. all strategic directions of the organization
B. a brief statement of the company’s direction
C. strategic posturing and future objectives
D. financial objectives and projected figures
The term golden parachute refers to _________.
A. a clause requiring that huge dividend payments be made upon takeover
B. pay given to executives fired because of a takeover
C. financial inducements offered by a threatened firm to stop a hostile suitor from
acquiring it
D. managers of a firm in a hostile takeover approaching a third party about making the
acquisition
Which of the following reasons explains why painter Vincent van Gogh died penniless,
while painter Pablo Picasso left a $740 million estate upon this death?
A. Picasso had a wider range of social connections and bridging relationships.
B. Van Gogh had a wider range of social connections.
C. Picasso was a solitary node with few connections.
D. Van Gogh was a hub who embedded himself in a vast network that stretched across
various social lines.
Creativity and problem solving ability are considered to be part of ____________.
A. physical capital
B. human capital
C. social capital
D. emotional capital
Which would be the appropriate strategy for companies to use to compete in the global
marketplace if the marketplace pressure is for lower costs with little pressure for local
adaptation?
A. international strategy
B. global strategy
C. multidomestic strategy
D. transnational strategy
Portfolio management frameworks, such as the BCG matrix, share which of the
following characteristics?
A. Businesses are plotted on a 3-dimensional grid.
B. Grid dimensions are based on external environments and internal capabilities/market
positions.
C. Position in the matrix suggests a need for sharing synergies.
D. They are most helpful in helping businesses develop types of competitive advantage.
At Sephora.com, a customer service representative taking a phone call from a repeat
customer has instant access to what shade of lipstick she likes best. This is an example
of a procurement support activity in the value chain.
What are the advantages and disadvantages associated with using contemporary
approaches to strategic control?
Discuss the uses and limitations of the barrier-free organizational structure. What is the
role of teams in the barrier-free organization?
What are the key advantages of value-chain analysis over SWOT analysis?
Discuss some of the limitations of forecasting.
Leaders are role models in their organizations. Explain how this can be used to build an
ethical organization. Provide examples of successful leaders whose organizations are
known to be ethically rigorous.
What are ambidextrous organizations? When should they be used and how can they be
made effective?
Explain how causal ambiguity can provide a sustainable competitive advantage.
Illustrate your comments with an example from a real business.
What are exit champions and how do they further the internal corporate venturing
process?
Discuss the adage hire for attitude, train for skill. What are its implications for the
attraction, training, and retention of top talent?
Discuss the role of informal investments versus venture-capital financing as it is used
by entrepreneurial ventures. What are the advantages and disadvantages of each type?