Entrepreneurial firms are often in a strong position to use combination strategies,
because they have the flexibility to approach situations uniquely.
In a global strategy a firm operates all of its businesses under a single common strategy,
regardless of location.
Greenmail is an offer by a company, threatened by takeover, to offer its stock at a
reduced price to a third party.
High levels of environmental awareness in Denmark have led to a decline in Danish
industrial competitiveness in the international marketplace.
An important potential pitfall of an integrated overall cost leadership and differentiation
strategy is that firms may fail to implement either one and become stuck-in-the-middle.
Once a strong and healthy organizational culture has been established, it becomes
self-sustaining.
The term innovation refers primarily to an invention that uses the latest technologies.
Developing and protecting social capital requires independence, in which individuals
must spend most of their time working individually.
Because new ventures typically are small, they usually do not have high economies of
scale relative to competitors.
Most analysts agree that use of the Internet will lower transaction costs.
Radical innovation often involves open-ended experimentation which can be very time
consuming.
Socially skilled people tend to have a wide circle of acquaintances as well as a knack
for finding common ground and building support. This means that they are less likely to
be effective in leading change or in having expertise in building and leading teams.
The failure of many auditing firms to raise red flags about accounting irregularities in
companies such as Enron and WorldCom is generally attributed to all of the following
factors except _____________.
A. the desire to get future auditing contracts from the company
B. the desire to get consulting work from the company because most audit firms also do
consulting work
C. the fact that auditors are appointed by the firm
D. the failure of U.S. audit firms to hire technically qualified professionals
Maintaining a competitive workforce is very challenging in the current economy. The
role of evaluating human capital, in recent years, has _____.
A. remained the same
B. decreased
C. become less important
D. increased
Buyer power will be greater when _______.
A. the products purchased are highly differentiated
B. there are high switching costs
C. the industry product is very important to the quality of the buyer end products or
services
D. it is concentrated or when a buyer group purchases large volumes relative to seller
sales
Which of these statements regarding the industry life cycle is correct?
A. Part of the power of the market life cycle is its ability to serve as a short-run
forecasting device.
B. Trends suggested by the market life cycle model are generally not reversible or
repeatable.
C. It points out the need to maintain a differentiation advantage and a low cost
advantage simultaneously.
D. It has important implications for company generic strategies, functional areas,
value-creating activities, and overall objectives.
The management of intellectual property involves all of the following EXCEPT _____.
A. patents
B. converting explicit knowledge to tacit knowledge
C. contracts with confidentiality and noncompete clauses
D. copyrights and trademark
Companies that cultivate cultures of experimentation and curiosity make sure that
______________ is not, in essence, to be avoided at all costs.
A. experimentation
B. failure
C. authority
D. risk taking
Which one of the following is one of the Theodore Levitt assumptions supporting a
pure global strategy?
A. Consumers are willing to pay more for specific product features.
B. Customer needs and interests are becoming more dissimilar.
C. MNCs can successfully compete globally by aggressively pricing products at the
sacrifice of product features.
D. If the world markets are treated as heterogeneous, substantial economies of scale are
easily achieved.
Private individuals who provide seed capital to young ventures are known as
_____________.
A. angels
B. gazelles
C. cash cows
D. rising stars
Which of the following is the primary drawback of traditional strategic control
systems?
A. They are only appropriate when the environment is stable and simple.
B. Goals and objectives cannot be measured with a high level of certainty.
C. They lead to complacency.
D. They lack the flexibility needed to adjust to changes in the environment.
Which of the following is a disadvantage of a transnational strategy?
A. less ability to realize cost savings through scale economies
B. limited ability to adapt to local markets
C. unique managerial challenges in fostering knowledge transfer
D. single locations may lead to higher tariffs and transportation costs
The takeover constraint refers to _____________.
A. constraints placed by the firm on raiders who want to take over the firm
B. legal constraints that limit the ability of the raiders to acquire a firm
C. provisions in the charter of a company that prevents it from attempting a takeover of
other companies
D. the risk of being acquired by a hostile raider
In contrast to the vision of an organization, its mission should:
A. be shorter in length
B. encompass both the purpose of the company as well as the basis of competition
C. encompass all the major rules and regulations of the corporate work force
D. be less detailed.
Dynamic capabilities include all of the following EXCEPT _________________.
A. learning and innovating
B. becoming more efficient in operational processes
C. the ability of an organization to challenge the conventional industry in its industry
and market
D. continuously adopting new ways of serving the evolving needs of the market
What are the five elements of a learning organization? What is the value of a learning
organization in the current global marketplace?
Briefly discuss the three interdependent activities that are critical for effective
leadership.
What are some of the potential drawbacks of emotional intelligence?
A firm has a variety of stakeholders. Identify several possible stakeholders a firm may
have and discuss how the firm may achieve stakeholder symbiosis.
What are some of the key tradeoffs between closure and bridging relationships in social
network theory? What are some implications for career success?
Explain how the two opposing forces facing MNC managers (cost reduction and local
adaptation) create pressures to operate with a global or multidomestic strategy,
respectively.
Describe the attributes of a simple organizational structure. What are the advantages
and disadvantages associated with using the simple organizational form?