Because the modular form of organizing involves outsourcing vital functions, modular
firms often forfeit full strategic control.
Focus, by itself, often constitutes a competitive advantage.
One of the most critical roles of the board of directors is to create incentives that align
the interests of the CEO and top executives with the interests of shareholders.
Corporate entrepreneurship is sometimes called intrapreneurship.
Businesses that compete in markets that are in decline should simply be harvested or
divested since they are no longer profitable.
Corporate business incubators often provide physical space and business services to
internal ventures, but not funding.
There are risks associated with the Bottom of the Pyramid strategy. One of them is that
the new low-cost products that are developed may cannibalize the sales of the core
products of the company using the strategy.
Product champions are the employees who identify new product ideas or services.
A major disadvantage of adopting a divisional structure is the tendency for managers to
focus on short-term objectives.
Economies of scope are cost savings from leveraging core competencies or sharing
unrelated activities among businesses in a corporation.
Value-chain analysis assumes that the basic economic purpose of a firm is to create
value and it is a useful framework for analyzing the strengths and weaknesses of the
firm.
Stockholders, employees, and the community-at-large are among the stakeholders of a
firm.
Real options analysis helps managers make investment decisions involving large
irreversible commitments of financial resources.
Operational decision making in a large business places excessive demands on top
management of the firm.
Economies of scope in a related diversification strategy result from the leveraging of
core competencies and the sharing of activities such as production.
When any two firms have both a high degree of market commonality and highly similar
resources, a ______________ threat is present.
A. weaker competitive
B. stronger competitive
C. successful marketing
D. stronger marketing
The text argues that a strategic perspective in an organization should be emphasized:
A. at the top of the organization
B. at the middle of the organization
C. throughout the organization
D. from the bottom up
Which of the following is not a factor that makes it more difficult for new ventures to
be successful as differentiators?
A. The strategy is thought to be expensive to put into action.
B. Establishing a brand, important to a differentiation strategy, is thought to be
expensive.
C. Superior innovation is often very costly.
D. Customer service is often costly, but it does not affect a differentiation strategy.
In a 360-degree evaluation and feedback system, which of these does not rate the skills
and performance of an individual?
A. superiors
B. family
C. direct reports
D. colleagues
Which component of emotional intelligence (EI) enables a manager to have a deep
understanding of the existence and importance of cultural and ethnic differences?
A. self-awareness
B. empathy
C. social skills
D. self-regulation
In considering the decision to offshore, which of the following generally is not one of
the hidden costs?
A. Total wage costs and indirect costs
B. Increased inventory and coordination costs
C. Reduced market responsiveness and intellectual property rights
D. Wage deflation
Leaders play a key role in developing and sustaining organization _____________.
A. status quo
B. culture
C. reporting relationships
D. rules and regulations
One of the pitfalls of real options analysis is that managers may have an incentive and
know-how to game the system and back-solve a formula to get a proposal approved.
This can give rise to _____________.
A. managerial conceit
B. the illusion of control
C. escalation of commitment
D. agency problems
Which of the following is not an advantage of collaborating with strategic partners in
order to innovate?
A. obtaining skills and new knowledge from outside sources
B. making firms identify their own strengths and weaknesses
C. managers clarifying what an innovation project requires to be successful and who
will accomplish it
D. decreasing economies of scale
Incremental innovations _____________.
A. are usually highly disruptive
B. usually represent technological breakthroughs
C. are usually small improvements in products and processes
D. nearly always can be patented
SWOT analysis is a framework for analyzing the internal and external environment of a
company. It consists of strengths, weaknesses, opportunities, and threats. According to a
SWOT analysis, which of the following is not an aspect that the strategy of the firm
must follow?
A. build on its weaknesses
B. remedy the weaknesses or work around them
C. take advantage of the opportunities presented by the environment
D. protect the firm from the threats
According to the text, new ventures launched by entrepreneurial teams are more likely
to be successful than ventures launched by _____________.
A. established corporations
B. bootstrappers
C. lone wolf entrepreneurs
D. individual investors
Generally speaking, discussions of the relationship between strategy and structure
strongly imply that _____________.
A. strategy follows structure
B. structure follows strategy
C. strategy can effectively be formulated without considering structural elements
D. structure typically has a very small influence on the strategy of a firm
Explain the advantages of the four alternative strategies of maintaining, harvesting,
exiting, and consolidating that are associated with the decline stage of the market life
cycle.
What are some of the key issues to take into account when considering whether or not
to vertically integrate?
Address how Internet and digital technologies affect the Porter five forces.
Discuss some of the potential benefits of divestment.
Briefly describe the strategic business unit (SBU) and holding company organizational
structures. Under what circumstances do organizations choose these forms of
organizing?
What are the five types of support that corporate business incubators provide to
entrepreneurial ventures?
What is a corporate credo? How can it be helpful in shaping the moral dimensions of an
organization?
What is the role of opportunity recognition in the new venture development process?