One of the criteria for a core competence is that the different businesses in the
corporation must be similar in at least one important way related to the core
competence.
Founders using a pioneering new entry strategy look for opportunities to capitalize on
proven market successes.
Auditors are appointed by the Securities and Exchange Commission to audit company
financial statements.
A multidomestic strategy would likely include the use of high volume, centralized
production facilities to maximize economies of scale.
A hard trend is something that might happen and for which the probability that it might
happen can be estimated.
Switching costs for an end user are likely to be much higher because of the Internet.
The five-forces model helps to determine both the nature of competition in an industry
and the profit potential for the industry.
Strategic management recognizes the trade-offs between effectiveness and efficiency.
A golden parachute is a prearranged contract with managers specifying that, in the
event of a hostile takeover, the target company managers will be paid a significant
severance package.
If leaders do not believe in the ethical standards that they are trying to inspire, they will
not be effective as good role models.
The two broad bases of leader power are organizational and hierarchical.
Shell, NEC, and Procter and Gamble have been measuring their performance according
to what has been called a triple bottom line. This technique involves an assessment of
financial, social, and environmental performance.
Financial analysis provides an accurate way to assess the relative strengths of firms and
can be used as a complete guide to study companies.
Stockholders in a company are the only individuals with an interest in the financial
performance of the company.
A crash R&D program by one firm cannot replicate a successful technology developed
by another firm, when research findings cumulate. This is an example of
____________.
A. social complexity
B. physical uniqueness
C. path dependency
D. causal ambiguity
Continuous monitoring, in the contemporary approach, is beneficial because
_____________.
A. it reduces time lags
B. it increases the time it takes to detect changes in the competitive environment
C. organizational flexibility is reduced
D. organization response time is increased
Which of the following is not a potential pitfall of a differentiation strategy?
A. Uniqueness that is not valuable.
B. All rivals share a common input or raw material.
C. The price premium is too high.
D. Perceptions of differentiation may vary between buyers and sellers.
A __________ is a business in which a multinational company owns 100 percent of the
stock.
A. joint venture
B. strategic alliance
C. wholly owned subsidiary
D. franchising operation
Human resource management consists of activities involved in the recruiting, hiring,
training, development, and compensation of all types of personnel. It supports
_______________.
A. only individual primary activities
B. both individual primary and support activities and the entire value chain
C. only individual support activities
D. mostly support activities but does have some impact on primary activities
Which kind of risk taking requires that a company borrow heavily or commit a large
portion of its resources in order to grow?
A. business risk taking
B. financial risk taking
C. personal risk taking
D. technological risk taking
As the competitive environment changes, strategic management must focus on different
aspects of the organization. Recently, strategic management has moved from focusing
on tangible resources to ____.
A. fixed capital
B. working capital
C. intangible resources
D. investment capital
Which of the following is not a factor that helps to explain the extent to which
employees and managers will be able to obtain a proportionately high level of the
profits that they generate?
A. Employees have high bargaining power.
B. The cost of employee replacement is high.
C. The cost of exit is high for an employee.
D. Managers have low bargaining power.
Which of the following statements about ethical organizations is not true?
A. The potential benefits of an ethical organization are few but direct.
B. Ethical values shape the search for opportunities.
C. Organizational ethics define what a company is and what it stands for.
D. Ethics provide a common frame of reference that serves as a unifying force.
According to Michael Porter, there is a tremendous allure to _________. It is the big
play, the dramatic gesture. With one stroke of the pen you can add billions to size, get a
front-page story, and create excitement in markets.
A. strategic alliances and joint ventures
B. internal development
C. mergers and acquisitions
D. differentiation strategies
In the value net analysis, complementors are _________________.
A. firms that produce substitute products
B. customers who compliment the company for their good products and services
C. firms that produce products or services that have a positive impact on the value of
firm products or services
D. firms that supply critical inputs to a company
How do organizational structures change as organizations grow and mature? What are
the dominant patterns of growth?
Feedback and 360-evaluation systems are used by organizations to provide performance
information to employees. Describe how the 360-evaluation systems are implemented
and give an example of how it is used in an actual company.
Discuss how a competitive advantage can be attained through differentiation using the
value chain concept.
How can developing and maintaining a high ethical standard benefit an organization?
Give examples and describe the effects the examples have had on the organization
and/or its stakeholders.
Effective human capital is a benefit to any organization. What are some challenges
firms face when attempting to attract and develop top talent?