A company pursuing the differentiation or focused differentiation strategy would tend to
a. build economies of scale and efficient operations.
b. develop and maintain cost-effective MIS operations.
c. develop flexible systems that allow rapid response to customers’ changing needs.
d. have relationships with suppliers to maintain efficient flow of supplies for operations.
The challenge and difficulty of making effective decisions are implied by preliminary
evidence that of organizational decisions fail.a. political/legal
b. physical
c. demographic
d. global
Early adopters of new technology often achieve higher market shares and higher returns
than later adopters of the technology.
a. True
b. False
Buyers are powerful when
a. there is a threat of forward integration.
b. they purchase a small proportion of the supplier’s output.
c. switching costs are low.
d. the buyers’ industry is fragmented.
The effective development and management of the firm’s ________ may be its only
sustainable competitive advantage.
a. capital base
b. human capital
c. technology
d. organizational culture
The divisions within each SBU are related in terms of shared products or markets, but
the divisions of one SBU
have little in common with the divisions of the other SBUs.
a. True
b. False
The external environment facing business stays relatively constant over time.
a. True
b. False
A CEO’s breadth of knowledge base is constrained by
a. his or her relationship with the board of directors.
b. whether he or she is also the chairperson of the board of directors.
c. his or her long tenure with the firm.
d. the level of social capital in the firm.
For 15 years, Edward was a compensation specialist at a mid-sized firm. He was laid
off when the firm experienced financial setbacks. Edward has decided to open his own
business as a compensation consultant to small firms. He can expect that his main
source of human capital will be a bank line of credit.
a. True
b. False
One method of facilitating the transfer of competencies between firms is to
a. virtually integrate the two firms.
b. transfer key people into new management positions.
c. share support activities, such as purchasing practices.
d. restructure the weaker firm to mirror the structure of the more successful firm.
Financial controls provide feedback about the outcomes of the firm’s past actions and
predictions about the results of the firm’s future actions.
a. True
b. False
While there are multiple means of entering new international markets, firms should use
one method consistently with all of its various products and across its different markets
in order to reduce administrative complexity.
a. True
b. False
Product market stakeholders include the firm’s customers, and the principal concern of
this stakeholder group is
a. maximizing the firm’s return on investment.
b. receiving the highest-quality products and services in the industry.
c. obtaining reliable products at the lowest possible price.
d. increasing the profitability of the firm.
Performance continues to increase as diversification increases from single business to
unrelated diversification.
a. True
b. False
Corporate governance is important to nations because
a. shareholders want large stock returns.
b. firms seek to invest in nations with national governance standards that are acceptable
to them.
c. company boards have lobbied for strong governance.
d. the United States requires that other nations adopt its governance practices.