The Sarbanes-Oxley Act of 2002 stipulates that executives of a firm will still be able to
sell their shares in the firm when other employees cannot.
The success of an adaptive new entrant can be limited, if the value proposition is
perceived as being unique.
If a firm has a successful differentiation strategy, it is necessary to attain parity on cost.
When sharing activities across business units, a company can attain the highest cost
savings when it acquires another from the same industry in the same country.
In order to gather information from informal sources, successful executives must be
good listeners.
A barrier-free organization creates successful relationships between internal and
external constituencies and sometimes with competitors as well.
When firms like Siebel Systems, Disney, Oracle, and Microsoft separated the roles of
CEO and chairman of the board, they were creating CEO duality.
Many international firms are increasing their efforts to market their products and
services to countries such as India and China as the ranks of their middle class continue
to increase.
Inbound logistics include all activities associated with transforming inputs into the final
product form such as machining, packaging, assembly, equipment, testing, printing, and
facility operations.
Once an adaptive entrant has achieved initial success, the company is safe from copycat
competition.
The innovation dilemma known as building capabilities versus collaborating refers to
_____________.
A. developing innovation skills internally versus partnering with qualified outsiders
B. building innovative products in-house versus outsourcing
C. building credibility by launching products ahead of potential collaboration partners
D. launching a product incrementally
______________ provide(s) a key avenue for growth for many young and small firms
through partnering to obtain resources and/or expand into new markets.
A. Strategic alliances
B. Bootstrappers
C. Lone wolf entrepreneurs
D. Research & development
Creating value within business units can happen when the corporate office helps
subsidiaries make wise choices in their own acquisitions, divestures, and new ventures.
This is known as ________.
A. restructuring
B. parenting
C. leveraging core competencies
D. increasing market power
The relationship between strategy and structure can be best described as
_____________.
A. strategy determines structure but structure does not determine strategy
B. structure determines strategy but strategy does not determine structure
C. strategy and structure influence each other
D. a third force determines both strategy and structure
Which of the following is NOT one of the characteristics of an entrepreneurial
opportunity?
A. attractive
B. affordable
C. achievable
D. value creating
Research has consistently shown that firms that achieve both cost leadership and
differentiation advantages tend to perform ______________.
A. at about the same level as firms that achieve either cost or differentiation advantages
B. about the same as firms that are stuck-in-the-middle
C. higher than firms that achieve either a cost or a differentiation advantage
D. lower than firms that achieve differentiation advantages but higher than firms that
achieve cost advantages
Procter and Gamble has perfected a technique for compacting cleaning powder into a
liquid concentration. Consumers, retailers, shipping and wholesalers, and
environmentalists all have benefited from the resulting change in consumer shopping
habits and the revolution in industry supply-chain economics. According to the text, this
is an example of __________.
A. zero-sum relationship among stakeholders
B. stakeholder symbiosis
C. rewarding stakeholders
D. emphasizing financial returns
A marketing department that promises delivery faster than the ability of the production
department to produce is an example of a lack of understanding of the _____________.
A. organizational culture and leadership
B. interrelationships among functional areas and firm strategies
C. need to maintain the reputation of the company
D. synergy of the business units
Real options analysis is most appropriate when _____________.
A. the total investment required is small, but the environment is uncertain
B. the investment required can be justified by Discounted Cash Flow (DCF) techniques
C. a small investment up front can be followed by a series of subsequent investments
D. there is no prospect of obtaining additional knowledge before making subsequent
investments
Effective ambidextrous organizations have alignment, which means that
_____________.
A. employees are rewarded according to both profit and sales growth
B. managers are focused on growth opportunities
C. there is a clear sense of how value is being created in the short-term and how
activities are properly integrated and coordinated
D. divisional-level goals are consistent with overall corporate goals
Options exist when the owner of the option has _____________.
A. the obligation, but not the right to engage in a transaction
B. the right, but not the obligation to engage in a transaction
C. the right and obligation to engage in a transaction
D. neither the right, nor the obligation to engage in a transaction
The best way to minimize improper and unethical conduct is to ______________ and
_____________.
A. set boundaries; constraints
B. establish standards; guidelines
C. develop policies; regulations
D. design sanctions; guidelines
The primary aim of strategic management at the business level is
__________________.
A. maximizing risk-return tradeoffs through diversification
B. achieving a low cost position
C. maximizing differentiation of products and/or services
D. achieving competitive advantage
Vertical integration is attractive when ____________.
A. internal administrative costs are higher than transaction costs
B. transaction costs are higher than internal administrative costs
C. transaction costs and internal administrative costs are equal
D. search costs are higher than monitoring costs
Divesting of businesses can accomplish many different objectives, except _______.
A. enabling managers to focus their efforts more directly on the core businesses of the
firm
B. providing the firm with more resources to spend on more attractive alternatives
C. dispersing manager focus
D. raising cash to help fund existing businesses
What is the name of the practice that many modular organization use to grow?
A. operational effectiveness
B. outsourcing
C. strategic leveraging
D. strategic enabling
The form of entry strategy into international operations that offers the lowest level of
control for the domestic corporation would be _________.
A. franchising
B. licensing
C. joint venture
D. exporting
The organizational versus the individual rationality perspective suggests that:
A. what is good for a functional area is always good for the organization
B. what is good for the organization is always good for a functional area
C. what is best for a functional area may not be best for the organization
D. the incremental perspective may be best for functional areas while the “rational”
perspective may be best for the organization
Discuss how the potential benefits of diversification may be adversely affected by
conflicts between manager interests and stockholder interests. Hint: Egotism, growth
for the sake of growth, antitakeover tactics.
Strategic alliances are arrangements in which two firms join forces and form a
cooperative partnership. Discuss the advantages and disadvantages of strategic alliances
as well as guidelines for reducing conflict between the partners.
Address some of the potential limitations (or downsides) of social capital.
Organizations must focus on financial and nonfinancial objectives. Select an
organization and discuss possible financial and nonfinancial objectives the organization
may have.
What are product champions and why are they important to corporate entrepreneurship?
Explain the pitfalls that are associated with a pioneering new entry and the implications
these have for new entrants with high technology offers.
Explain how differentiation strategy is used by new ventures to achieve competitive
advantage. Provide an example.
What is meant by the terms radical innovation and incremental innovation? Describe
the advantages and disadvantages of each type of innovation and provide examples.
Explain the four attributes that a resource must have to provide a firm with a sustainable
competitive advantage.