14 Aug MGT195-HK1. BUSINESS POLICY AND STRATEGY (MGT195-HK1) > TAKE ASSESSMENT: FINAL

MGT195-HK1. BUSINESS POLICY AND STRATEGY (MGT195-HK1) > TAKE ASSESSMENT: FINAL EXAM Question 1 1 points Save The laws, and the enforcement of laws, associated with the protection of intellectual property rights, represent a significant currency and management risk to multinational firms. TrueFalse Question 2 1 points Save Software Tech, Inc., a company in the computer software industry, invests heavily in R&D and product design. Thus, most of its value is added: Upstream In its infrastructure Downstream Midstream Question 3 1 points Save Offshoring takes place when a firm decides to shift an activity that they were previously performing in a domestic location to a foreign location. TrueFalse Question 4 1 points Save Elements of a multidomestic strategy may facilitate the competitive advantage of cost leadership by: Flexibility in adjusting to local laws and customs Decreased duplication of inventories which are often involved in having multiple plants producing similar products Decreased shipping and transportation costs inherent in local production Economies of scale gained through centralized production of standardized products Question 5 1 points Save Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy. TrueFalse Question 6 1 points Save The sale of Boeing’s commercial aircraft and Microsoft’s operating systems in many countries enable these companies to benefit from: Higher prices in their domestic markets Economies of scale Optimizing the location for many activities in their value chain Reducing their exposure to currency risks Question 7 1 points Save Appreciation of the U.S dollar will have the following impact on McDonald’s: Lower sales abroad because foreign customers cannot afford McDonalds’ products More transfer of ingredients from the U.S to branches abroad to take advantage of the higher dollar Lower profits, because foreign profits will be reduced when measured in dollars No impact at all Question 8 1 points Save A multidomestic strategy would likely include the use of high volume, centralized production facilities to maximize economies of scale. TrueFalse Question 9 1 points Save An advantage of international expansion is that it can enable a firm to optimize the location of every activity in its value chain. TrueFalse Question 10 1 points Save Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer). TrueFalse Question 11 1 points Save __________ entail the creation of a third-party legal entity, whereas __________ do not. Licensing agreements; joint ventures Joint ventures; strategic alliances Strategic alliances; joint ventures Franchising agreements; strategic alliances Question 12 1 points Save The form of entry strategy into international operations that offers the lowest level of control would be: Franchising Licensing Joint venture Exporting Question 13 1 points Save Which one of the following is one of Theodore Levitt’s assumptions supporting a pure global strategy? Consumers are willing to pay more for specific product features Customer needs and interests are becoming more dissimilar If the world markets are treated as heterogeneous, substantial economies of scale are easily achieved MNCs can compete with aggressive pricing on low cost products that meet the common needs of global consumers Question 14 1 points Save The reasons that explain why some governments make better use of the inflows from foreign investment and know-how than others include all of the following except: Governmental practices that are business-friendly Local entrepreneurs that can train workers and invest in modern technology High tariffs and taxes on foreign investors and multinational corporations provide income to improve living conditions Sound management of broader economic factors such as interest rates and inflation Question 15 1 points Save Because many countries are investing in countries other than their own, each country is becoming more autonomous and independent. TrueFalse Question 16 1 points Save All of the following are limitations of a global strategy except: Limited ability to adapt to local markets The ability to locate activities in optimal locations The concentration of activities may increase dependence on a single facility Single locations may lead to higher tariffs and transportation costs Question 17 1 points Save As a manager, when faced with ethical crises you should: Focus on issues most relevant to stockholders Wait for the other party to make the first move Take the initiative to address the problem Cover up as much as possible Question 18 1 points Save Emotional intelligence (EI) is one of the components of a high intelligence quotient (IQ). TrueFalse Question 19 1 points Save Proactive measures to prevent organizational ethics problems include all of the following except: Instituting a reward system which considers outcomes as its primary criterion Using leaders as role models of ethical behavior Issuing statements describing the organization’s commitment to certain standards of behavior Using the organization’s information systems as a control system Question 20 1 points Save Which of the following is an important characteristic of a leader? Goal-oriented Satisfied with the status quo Reactive Focused on past performance Question 21 1 points Save Leaders who fail to institute proper systems and controls that facilitate ethical conduct share responsibility with those who conceive, execute, and knowingly benefit from corporate misdeeds. TrueFalse Question 22 1 points Save All of the following constitute organizational bases of a leader’s power except: Legitimate power Reward power Referent power Coercive power Question 23 1 points Save Behavioral barriers to change occur because of conflicts between departments, conflicts arising from power relationships, and refusal to share information. TrueFalse Question 24 1 points Save All of the following are elements of the Goolsby Leadership Model except: Integrity Charisma Courage Impact Question 25 1 points Save The “top down” perspective of empowerment: Encourages intelligent risk-taking Trusts people to perform Encourages cooperative behavior Delegates responsibility Question 26 1 points Save Competitive benchmarking is a method of seeking the best examples of practices or processes that have essentially the same function regardless of industry. TrueFalse Question 27 1 points Save Manufacturing employees at Chaparral Steel are directly involved with customers and have access to the new innovative knowledge being developed in its manufacturing processes. This is an example of: Hierarchical control Knowledge management Enabling heroes and drones Employee empowerment Question 28 1 points Save A compliance-based approach to ethics management combines a concern for law with an emphasis on managerial responsibility for ethical behavior. TrueFalse Question 29 1 points Save Which component of emotional intelligence (EI) enables a manager to have a deep understanding of the existence and importance of cultural and ethnic differences? Self-awareness Empathy Social skills Self-regulation Question 30 1 points Save Internal benchmarking is discouraged in most organizations because it creates competition and internal rivalries that are counterproductive. TrueFalse Question 31 1 points Save Inspiring and motivating people with a mission or purpose is a necessary and sufficient condition for developing a learning organization. TrueFalse Question 32 1 points Save All of the following are guidelines an organization can use to promote the challenging of the status quo except: Establishing a “culture of dissent.” Forcefully creating a sense of urgency Fostering a culture that encourages risk taking Creating a results-based reward system Question 33 1 points Save The three broad sets of capabilities that a leader should possess include all of the following except: Technical skills Cognitive abilities Calculative abilities Emotional intelligence Question 34 1 points Save Continuous monitoring enhances an organization’s ability to respond with speed and flexibility. TrueFalse Question 35 1 points Save In emerging economies and continental Europe, principal-principal conflicts are frequent. These consist of conflicts between controlling shareholders and executives. TrueFalse Question 36 1 points Save Rules and regulations are examples of: Implicit controls Informational controls Cultural norms Boundaries and constraints Question 37 1 points Save In 2001, Cisco Systems, Inc.’s stock price fell dramatically when it inaccurately forecast new sales orders because it relied too heavily on historical sales figures. What caused this mistake? Its strategic control system failed to detect changes in consumer demand It “projected the past into the future.” The momentum of its previous successes blinded it to the need to adapt and change All of the above contributed to the mistake Question 38 1 points Save The “traditional” approach to strategic control is sequential. Which of the following is not one of the steps in the sequence? Action plans are submitted by lower level managers Performance is measured against the predetermined goal Strategies are implemented Strategies are formulated and top management sets goals Question 39 1 points Save Top managers at USA Today meet every Friday to review daily operational reports and year-to-date data. This is an example of: Behavioral control Informational control Strategy formulation Strategy implementation Question 40 1 points Save In “single loop” learning, the organization’s assumptions, premises, goals, and strategies are continuously monitored, tested, and reviewed. TrueFalse Question 41 1 points Save For businesses facing complex and turbulent business environments: Goals and objectives that are uncertain prevent opportunism Traditional strategic controls are usually inappropriate Complacency about predetermined milestones can prevent adaptability Detailed plans are needed to maintain order Question 42 1 points Save Intel’s exemplary corporate governance practices include all of the following except: A mix of inside and outside directors All outside directors to assure objectivity in decision-making Board presentations and access to employees Formal evaluation of officers Question 43 1 points Save The Sarbanes-Oxley Act of 2002 requires that CEOs and CFOs of publicly-listed companies must reveal off-balance-sheet finances and vouch for the accuracy of information provided. TrueFalse Question 44 1 points Save The late Sam Walton, founder of Wal-Mart, used to give pep rallies at local Wal-Mart stores. What purpose did this serve? It was used to remind employees of Wal-Mart’s rules and regulations It helped reinforce and sustain Wal-Mart’s culture It demonstrated to employees the importance of articulating explicit goals and objectives It made Wal-Mart’s reward system very explicit Question 45 1 points Save An organization’s reward system is typically a weak method of motivating employees. TrueFalse Question 46 1 points Save When countercultures emerge that have shared values opposite from the dominant culture of an organization: Organizational cohesiveness increases Information is shared rather than hoarded Individuals begin working at cross purposes Individuals gain insights into overarching goals and objectives Question 47 1 points Save Rule-based controls are appropriate in organizations where most of the employees are unskilled. TrueFalse Question 48 1 points Save In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders), the ownership (of equity) is: Widely dispersed (5-20% is considered “concentrated ownership”) Controlled almost completely by management Concentratedoften greater than 50% of equity is controlled by controlling shareholders Often held by employee stock ownership programs Question 49 1 points Save Rules and regulations, rather than culture or rewards, would be used for strategic control at which type of company? Software developer Stock brokerage firm Manufacturer of mass produced products High tech research facility Question 50 1 points Save Managerial opportunism can take all of the following forms except: Shirking Job-hopping On the job consumption Excessive product diversification Question 51 1 points Save For firms following a differentiation strategy, behavioral and intangible incentives are not an effective means of motivating employees. TrueFalse Question 52 1 points Save Operational decision making in a large business places excessive demands on the firm’s top management. TrueFalse Question 53 1 points Save Which of the following is an advantage of a divisional type of organizational structure? Efficient use of managerial and technical talent An enhanced ability to respond quickly to changes in the external environment High degree of emphasis on long term performance Uniformity in image and quality across divisions Question 54 1 points Save According to the text, there are elements of team building that influence a team’s success. These include all of the following except: Work. Work should be relevant and meaningful to group members People bonding during the “heat of the battle.” Team members become more unified during a crisis Titles. Titles are important to a team’s success Teams taking care of their own. Team members look after each other’s best interest Question 55 1 points Save The matrix structure attempts to combine the advantages of the functional and divisional structure. TrueFalse Question 56 1 points Save An advantage of the barrier-free form of organizing is that internal cooperation and shared objectives are not required for it to work. TrueFalse Question 57 1 points Save All of the following are disadvantages of a divisional type of organizational structure except: It can be very expensive compared to a functional organizational structure There is a strong tendency for divisions to focus on short-term performance There can be dysfunctional competition among divisions There is separation of strategic and operating control Question 58 1 points Save A matrix organizational structure is characterized by: Dual reporting relationships A combination of functional and divisional organization structures Efficient use of resources and expertise All of the above Question 59 1 points Save According to the text, boundaryless organizational structures are most effective when they replace rather than complement traditional organizational structures. TrueFalse Question 60 1 points Save For firms following related diversification strategies, reward and evaluation systems should rely primarily on behavioral indicators, since the organization needs to reward and reinforce behaviors that facilitate sharing and collaboration. TrueFalse Question 61 1 points Save An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure? Functional structure Matrix structure Strategic business unit structure Holding company structure Question 62 1 points Save The purpose of boundaryless forms of organizing is to facilitate the widespread sharing of knowledge and information across internal and external boundaries of the organization. TrueFalse Question 63 1 points Save Complete the following sentence: “Strategic business unit (SBU) structures are best suited for corporations pursuing __________, whereas holding company structures are best suited for companies with __________ strategies.” Product-market diversification, international International diversification, product-market Related diversification, unrelated diversification Unrelated diversification, related diversification Question 64 1 points Save Strategic business unit (SBU) and holding company structures result from extensive: Diversification Vertical integration International expansion Organizational flattening Question 65 1 points Save All of the following statements about simple organizational structures are true except: Small firms with a narrow product-market scope will adopt such a structure Decision making authority is highly centralized There is little specialization of tasks Creativity and individualism are rare Question 66 1 points Save Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of what type of organizational structure? Divisional Matrix Holding company Functional Question 67 1 points Save In a simple structure where the owner manager makes most of the important decisions, extensive rules and regulations are used to maintain order. TrueFalse Question 68 1 points Save Product champions are critical during the period after a new venture project has been defined but before it has gained momentum and achieved project impetus. TrueFalse Question 69 1 points Save Only about 50 percent of corporate venturing efforts reach profitability within six years of their launch. TrueFalse Question 70 1 points Save In the opening case, Polaroid fell victim to the “innovator’s dilemma.” What does this refer to? Excessive borrowing in order to develop more radical innovations Whether to innovate radically or incrementally Becoming preoccupied with meeting current market needs and ignoring future innovation needs Conflict over how to integrate product and process innovations Question 71 1 points Save __________ produce fundamental changes that can transform a company or even revolutionize an industry; __________ enhance existing practices and often represent evolutionary applications of fundamental breakthroughs. Technological breakthroughs; product-market breakthroughs New technologies; new paradigms Incremental innovations; radical innovations Radical innovations; incremental innovations Question 72 1 points Save Process innovations are often associated with a low cost leadership strategy. TrueFalse Question 73 1 points Save Two common forms of a focused approach to corporate entrepreneurship include: Internal collaboration and internal venturing Social capital and collaboration capital Business incubators and new venture groups Focus groups and business incubators Question 74 1 points Save Product champions: Are typically senior executives Are usually inventors of some sort Scavenge for resources and encourage others to back promising new ideas Are strong supporters of the status quo Question 75 1 points Save After 15 teams created 128 different phones, Chris Galvin, former CEO of Motorola, recently eliminated the autonomous teams being used to develop new wireless phones. This was necessary because such teams: Often lack coordination Sometimes waste resources on projects with questionable feasibility Sometimes create inefficiencies through duplication of effort All of the above Question 76 1 points Save Corporate venture funding refers to special funds that are set aside to invest in the corporation’s internal ventures. TrueFalse Question 77 1 points Save Real options analysis helps managers make investment decisions involving large irreversible commitments of financial resources. TrueFalse Question 78 1 points Save Incremental innovations: Are usually highly disruptive Usually represent technological breakthroughs Are usually small improvements in products or processes Nearly always can be patented Question 79 1 points Save Whereas __________ are often associated with a low cost leader strategy, __________ are frequently an important aspect of a differentiation strategy. Process innovations; product innovations Product innovations; service innovations Radical innovations; instrumental innovations Marketing innovations; management innovations Question 80 1 points Save The term “skunkworks” is used to refer to a type of in-house facility that corporations use to develop entrepreneurial ideas. TrueFalse Question 81 1 points Save For innovation team members to work enthusiastically on innovation projects, it is important to separate the performance of individual team members from the performance of the innovation itself. TrueFalse Question 82 1 points Save Sony Corporation’s mission statement says, “We should always be the pioneers with our productsout front leading the market.” This is an example of: Innovativeness Proactiveness Competitive aggressiveness Autonomy Question 83 1 points Save According to the text, new venture ideas must pass through two critical stages to be implemented by corporationsproject definition and project impetus. TrueFalse Question 84 1 points Save Real options logic is useful when corporations consider stock options as a way to finance entrepreneurial ventures. TrueFalse Question 85 1 points Save All of the following are examples of strategic actions a firm might take except: Acquire competitors to reduce competition Expand into neglected markets Change product packaging Tie-up raw material sources Question 86 1 points Save Adaptive new entry involves offering a radical new product or highly innovative service. TrueFalse Question 87 1 points Save Generally speaking, the opportunity recognition process consists of two phases of activity. They are: Global Search and Recycling Profits Value Creation and Affordability Discovery and Evaluation None of the above Question 88 1 points Save Venture capital funding for entrepreneurial ventures is usually available only after the start-up has become a going concern and established a track record. TrueFalse Question 89 1 points Save Which of the following is not a key element of a blue ocean strategy? Pursue low cost and differentiation advantages simultaneously Make the competition irrelevant Highlight incremental improvements to capture market share Create new demand in uncharted territory Question 90 1 points Save Because new ventures are typically small, they usually don’t have high economies of scale relative to competitors. TrueFalse Question 91 1 points Save The best example of a tactical action that a company might use in response to a competitive attack is: Acquire the competitor Target the rival’s markets Expand into new geographical areas Offer price discounts and rebates Question 92 1 points Save Netflix CEO Reed Hastings made this important observation about dealing with rivals: “In a highly competitive marketplace, firms must be paranoid about the multitude of potential rivals.” “You can afford to ignore rivals in small markets, but you can never ignore rivals in large markets, such as on-line video companies like YouTube.” “There are tens and maybe hundreds of start-ups who think that they are going to eat Netflix’s lunch. The challenge for a management team is to figure out which are real threats and which aren’t.” “Netflix’s position is so strong that I don’t worry about new entrants.” Question 93 1 points Save “Blue ocean” strategies rarely provide sustainable advantages because they are easily imitated. TrueFalse Question 94 1 points Save Market commonality is the extent to which rivals draw from the same types of resources. TrueFalse Question 95 1 points Save Forbearance is a particularly aggressive type of competitive attack. TrueFalse Question 96 1 points Save In the context of competitive dynamics, tactical actions involve major commitments of distinctive and specific resources to strategic initiatives. TrueFalse Question 97 1 points Save In the opening case, ESPN’s cell phone enterprise failed even though it was designed to appeal to sports fanatics and was backed by a $40 million ad campaign. What happened? It misread how easy it would be to leverage its brand Compared to other providers, it had no buyer incentives and poor customer service Its costs were significantly higher than other cell phone providers because it had to lease network access All of the above happened Question 98 1 points Save Which of the following questions should a firm ask itself before responding to a competitive attack? How serious is the impact of the attack? What is our competitive intentdo we want to blunt the attack or enhance our competitive position with our response? What resources do we have available for a response? All of the above Question 99 1 points Save Equity financing for entrepreneurial start-ups includes which of the following? Investments by family and friends Personal savings Private investors All of the above Question 100 1 points Save Which of the following types of resources contribute to the success of entrepreneurial firms? Social capital Financial resources Human resources All of the above contribute to the success of entrepreneurial firms MGT195-HK1. BUSINESS POLICY AND STRATEGY (MGT195-HK1) > TAKE ASSESSMENT: FINAL EXAM Question 1 1 points Save The laws, and the enforcement of laws, associated with the protection of intellectual property rights, represent a significant currency and management risk to multinational firms. TrueFalse Question 2 1 points Save Software Tech, Inc., a company in the computer software industry, invests heavily in R&D and product design. Thus, most of its value is added: Upstream In its infrastructure Downstream Midstream Question 3 1 points Save Offshoring takes place when a firm decides to shift an activity that they were previously performing in a domestic location to a foreign location. TrueFalse Question 4 1 points Save Elements of a multidomestic strategy may facilitate the competitive advantage of cost leadership by: Flexibility in adjusting to local laws and customs Decreased duplication of inventories which are often involved in having multiple plants producing similar products Decreased shipping and transportation costs inherent in local production Economies of scale gained through centralized production of standardized products Question 5 1 points Save Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy. TrueFalse Question 6 1 points Save The sale of Boeing’s commercial aircraft and Microsoft’s operating systems in many countries enable these companies to benefit from: Higher prices in their domestic markets Economies of scale Optimizing the location for many activities in their value chain Reducing their exposure to currency risks Question 7 1 points Save Appreciation of the U.S dollar will have the following impact on McDonald’s: Lower sales abroad because foreign customers cannot afford McDonalds’ products More transfer of ingredients from the U.S to branches abroad to take advantage of the higher dollar Lower profits, because foreign profits will be reduced when measured in dollars No impact at all Question 8 1 points Save A multidomestic strategy would likely include the use of high volume, centralized production facilities to maximize economies of scale. TrueFalse Question 9 1 points Save An advantage of international expansion is that it can enable a firm to optimize the location of every activity in its value chain. TrueFalse Question 10 1 points Save Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream (closer to the customer). TrueFalse Question 11 1 points Save __________ entail the creation of a third-party legal entity, whereas __________ do not. Licensing agreements; joint ventures Joint ventures; strategic alliances Strategic alliances; joint ventures Franchising agreements; strategic alliances Question 12 1 points Save The form of entry strategy into international operations that offers the lowest level of control would be: Franchising Licensing Joint venture Exporting Question 13 1 points Save Which one of the following is one of Theodore Levitt’s assumptions supporting a pure global strategy? Consumers are willing to pay more for specific product features Customer needs and interests are becoming more dissimilar If the world markets are treated as heterogeneous, substantial economies of scale are easily achieved MNCs can compete with aggressive pricing on low cost products that meet the common needs of global consumers Question 14 1 points Save The reasons that explain why some governments make better use of the inflows from foreign investment and know-how than others include all of the following except: Governmental practices that are business-friendly Local entrepreneurs that can train workers and invest in modern technology High tariffs and taxes on foreign investors and multinational corporations provide income to improve living conditions Sound management of broader economic factors such as interest rates and inflation Question 15 1 points Save Because many countries are investing in countries other than their own, each country is becoming more autonomous and independent. TrueFalse Question 16 1 points Save All of the following are limitations of a global strategy except: Limited ability to adapt to local markets The ability to locate activities in optimal locations The concentration of activities may increase dependence on a single facility Single locations may lead to higher tariffs and transportation costs Question 17 1 points Save As a manager, when faced with ethical crises you should: Focus on issues most relevant to stockholders Wait for the other party to make the first move Take the initiative to address the problem Cover up as much as possible Question 18 1 points Save Emotional intelligence (EI) is one of the components of a high intelligence quotient (IQ). TrueFalse Question 19 1 points Save Proactive measures to prevent organizational ethics problems include all of the following except: Instituting a reward system which considers outcomes as its primary criterion Using leaders as role models of ethical behavior Issuing statements describing the organization’s commitment to certain standards of behavior Using the organization’s information systems as a control system Question 20 1 points Save Which of the following is an important characteristic of a leader? Goal-oriented Satisfied with the status quo Reactive Focused on past performance Question 21 1 points Save Leaders who fail to institute proper systems and controls that facilitate ethical conduct share responsibility with those who conceive, execute, and knowingly benefit from corporate misdeeds. TrueFalse Question 22 1 points Save All of the following constitute organizational bases of a leader’s power except: Legitimate power Reward power Referent power Coercive power Question 23 1 points Save Behavioral barriers to change occur because of conflicts between departments, conflicts arising from power relationships, and refusal to share information. TrueFalse Question 24 1 points Save All of the following are elements of the Goolsby Leadership Model except: Integrity Charisma Courage Impact Question 25 1 points Save The “top down” perspective of empowerment: Encourages intelligent risk-taking Trusts people to perform Encourages cooperative behavior Delegates responsibility Question 26 1 points Save Competitive benchmarking is a method of seeking the best examples of practices or processes that have essentially the same function regardless of industry. TrueFalse Question 27 1 points Save Manufacturing employees at Chaparral Steel are directly involved with customers and have access to the new innovative knowledge being developed in its manufacturing processes. This is an example of: Hierarchical control Knowledge management Enabling heroes and drones Employee empowerment Question 28 1 points Save A compliance-based approach to ethics management combines a concern for law with an emphasis on managerial responsibility for ethical behavior. TrueFalse Question 29 1 points Save Which component of emotional intelligence (EI) enables a manager to have a deep understanding of the existence and importance of cultural and ethnic differences? Self-awareness Empathy Social skills Self-regulation Question 30 1 points Save Internal benchmarking is discouraged in most organizations because it creates competition and internal rivalries that are counterproductive. TrueFalse Question 31 1 points Save Inspiring and motivating people with a mission or purpose is a necessary and sufficient condition for developing a learning organization. TrueFalse Question 32 1 points Save All of the following are guidelines an organization can use to promote the challenging of the status quo except: Establishing a “culture of dissent.” Forcefully creating a sense of urgency Fostering a culture that encourages risk taking Creating a results-based reward system Question 33 1 points Save The three broad sets of capabilities that a leader should possess include all of the following except: Technical skills Cognitive abilities Calculative abilities Emotional intelligence Question 34 1 points Save Continuous monitoring enhances an organization’s ability to respond with speed and flexibility. TrueFalse Question 35 1 points Save In emerging economies and continental Europe, principal-principal conflicts are frequent. These consist of conflicts between controlling shareholders and executives. TrueFalse Question 36 1 points Save Rules and regulations are examples of: Implicit controls Informational controls Cultural norms Boundaries and constraints Question 37 1 points Save In 2001, Cisco Systems, Inc.’s stock price fell dramatically when it inaccurately forecast new sales orders because it relied too heavily on historical sales figures. What caused this mistake? Its strategic control system failed to detect changes in consumer demand It “projected the past into the future.” The momentum of its previous successes blinded it to the need to adapt and change All of the above contributed to the mistake Question 38 1 points Save The “traditional” approach to strategic control is sequential. Which of the following is not one of the steps in the sequence? Action plans are submitted by lower level managers Performance is measured against the predetermined goal Strategies are implemented Strategies are formulated and top management sets goals Question 39 1 points Save Top managers at USA Today meet every Friday to review daily operational reports and year-to-date data. This is an example of: Behavioral control Informational control Strategy formulation Strategy implementation Question 40 1 points Save In “single loop” learning, the organization’s assumptions, premises, goals, and strategies are continuously monitored, tested, and reviewed. TrueFalse Question 41 1 points Save For businesses facing complex and turbulent business environments: Goals and objectives that are uncertain prevent opportunism Traditional strategic controls are usually inappropriate Complacency about predetermined milestones can prevent adaptability Detailed plans are needed to maintain order Question 42 1 points Save Intel’s exemplary corporate governance practices include all of the following except: A mix of inside and outside directors All outside directors to assure objectivity in decision-making Board presentations and access to employees Formal evaluation of officers Question 43 1 points Save The Sarbanes-Oxley Act of 2002 requires that CEOs and CFOs of publicly-listed companies must reveal off-balance-sheet finances and vouch for the accuracy of information provided. TrueFalse Question 44 1 points Save The late Sam Walton, founder of Wal-Mart, used to give pep rallies at local Wal-Mart stores. What purpose did this serve? It was used to remind employees of Wal-Mart’s rules and regulations It helped reinforce and sustain Wal-Mart’s culture It demonstrated to employees the importance of articulating explicit goals and objectives It made Wal-Mart’s reward system very explicit Question 45 1 points Save An organization’s reward system is typically a weak method of motivating employees. TrueFalse Question 46 1 points Save When countercultures emerge that have shared values opposite from the dominant culture of an organization: Organizational cohesiveness increases Information is shared rather than hoarded Individuals begin working at cross purposes Individuals gain insights into overarching goals and objectives Question 47 1 points Save Rule-based controls are appropriate in organizations where most of the employees are unskilled. TrueFalse Question 48 1 points Save In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders), the ownership (of equity) is: Widely dispersed (5-20% is considered “concentrated ownership”) Controlled almost completely by management Concentratedoften greater than 50% of equity is controlled by controlling shareholders Often held by employee stock ownership programs Question 49 1 points Save Rules and regulations, rather than culture or rewards, would be used for strategic control at which type of company? Software developer Stock brokerage firm Manufacturer of mass produced products High tech research facility Question 50 1 points Save Managerial opportunism can take all of the following forms except: Shirking Job-hopping On the job consumption Excessive product diversification Question 51 1 points Save For firms following a differentiation strategy, behavioral and intangible incentives are not an effective means of motivating employees. TrueFalse Question 52 1 points Save Operational decision making in a large business places excessive demands on the firm’s top management. TrueFalse Question 53 1 points Save Which of the following is an advantage of a divisional type of organizational structure? Efficient use of managerial and technical talent An enhanced ability to respond quickly to changes in the external environment High degree of emphasis on long term performance Uniformity in image and quality across divisions Question 54 1 points Save According to the text, there are elements of team building that influence a team’s success. These include all of the following except: Work. Work should be relevant and meaningful to group members People bonding during the “heat of the battle.” Team members become more unified during a crisis Titles. Titles are important to a team’s success Teams taking care of their own. Team members look after each other’s best interest Question 55 1 points Save The matrix structure attempts to combine the advantages of the functional and divisional structure. TrueFalse Question 56 1 points Save An advantage of the barrier-free form of organizing is that internal cooperation and shared objectives are not required for it to work. TrueFalse Question 57 1 points Save All of the following are disadvantages of a divisional type of organizational structure except: It can be very expensive compared to a functional organizational structure There is a strong tendency for divisions to focus on short-term performance There can be dysfunctional competition among divisions There is separation of strategic and operating control Question 58 1 points Save A matrix organizational structure is characterized by: Dual reporting relationships A combination of functional and divisional organization structures Efficient use of resources and expertise All of the above Question 59 1 points Save According to the text, boundaryless organizational structures are most effective when they replace rather than complement traditional organizational structures. TrueFalse Question 60 1 points Save For firms following related diversification strategies, reward and evaluation systems should rely primarily on behavioral indicators, since the organization needs to reward and reinforce behaviors that facilitate sharing and collaboration. TrueFalse Question 61 1 points Save An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatest success with which form of organization structure? Functional structure Matrix structure Strategic business unit structure Holding company structure Question 62 1 points Save The purpose of boundaryless forms of organizing is to facilitate the widespread sharing of knowledge and information across internal and external boundaries of the organization. TrueFalse Question 63 1 points Save Complete the following sentence: “Strategic business unit (SBU) structures are best suited for corporations pursuing __________, whereas holding company structures are best suited for companies with __________ strategies.” Product-market diversification, international International diversification, product-market Related diversification, unrelated diversification Unrelated diversification, related diversification Question 64 1 points Save Strategic business unit (SBU) and holding company structures result from extensive: Diversification Vertical integration International expansion Organizational flattening Question 65 1 points Save All of the following statements about simple organizational structures are true except: Small firms with a narrow product-market scope will adopt such a structure Decision making authority is highly centralized There is little specialization of tasks Creativity and individualism are rare Question 66 1 points Save Complicated working relationships, intense power struggles, and excessive reliance on group processes are disadvantages of what type of organizational structure? Divisional Matrix Holding company Functional Question 67 1 points Save In a simple structure where the owner manager makes most of the important decisions, extensive rules and regulations are used to maintain order. TrueFalse Question 68 1 points Save Product champions are critical during the period after a new venture project has been defined but before it has gained momentum and achieved project impetus. TrueFalse Question 69 1 points Save Only about 50 percent of corporate venturing efforts reach profitability within six years of their launch. TrueFalse Question 70 1 points Save In the opening case, Polaroid fell victim to the “innovator’s dilemma.” What does this refer to? Excessive borrowing in order to develop more radical innovations Whether to innovate radically or incrementally Becoming preoccupied with meeting current market needs and ignoring future innovation needs Conflict over how to integrate product and process innovations Question 71 1 points Save __________ produce fundamental changes that can transform a company or even revolutionize an industry; __________ enhance existing practices and often represent evolutionary applications of fundamental breakthroughs. Technological breakthroughs; product-market breakthroughs New technologies; new paradigms Incremental innovations; radical innovations Radical innovations; incremental innovations Question 72 1 points Save Process innovations are often associated with a low cost leadership strategy. TrueFalse Question 73 1 points Save Two common forms of a focused approach to corporate entrepreneurship include: Internal collaboration and internal venturing Social capital and collaboration capital Business incubators and new venture groups Focus groups and business incubators Question 74 1 points Save Product champions: Are typically senior executives Are usually inventors of some sort Scavenge for resources and encourage others to back promising new ideas Are strong supporters of the status quo Question 75 1 points Save After 15 teams created 128 different phones, Chris Galvin, former CEO of Motorola, recently eliminated the autonomous teams being used to develop new wireless phones. This was necessary because such teams: Often lack coordination Sometimes waste resources on projects with questionable feasibility Sometimes create inefficiencies through duplication of effort All of the above Question 76 1 points Save Corporate venture funding refers to special funds that are set aside to invest in the corporation’s internal ventures. TrueFalse Question 77 1 points Save Real options analysis helps managers make investment decisions involving large irreversible commitments of financial resources. TrueFalse Question 78 1 points Save Incremental innovations: Are usually highly disruptive Usually represent technological breakthroughs Are usually small improvements in products or processes Nearly always can be patented Question 79 1 points Save Whereas __________ are often associated with a low cost leader strategy, __________ are frequently an important aspect of a differentiation strategy. Process innovations; product innovations Product innovations; service innovations Radical innovations; instrumental innovations Marketing innovations; management innovations Question 80 1 points Save The term “skunkworks” is used to refer to a type of in-house facility that corporations use to develop entrepreneurial ideas. TrueFalse Question 81 1 points Save For innovation team members to work enthusiastically on innovation projects, it is important to separate the performance of individual team members from the performance of the innovation itself. TrueFalse Question 82 1 points Save Sony Corporation’s mission statement says, “We should always be the pioneers with our productsout front leading the market.” This is an example of: Innovativeness Proactiveness Competitive aggressiveness Autonomy Question 83 1 points Save According to the text, new venture ideas must pass through two critical stages to be implemented by corporationsproject definition and project impetus. TrueFalse Question 84 1 points Save Real options logic is useful when corporations consider stock options as a way to finance entrepreneurial ventures. TrueFalse Question 85 1 points Save All of the following are examples of strategic actions a firm might take except: Acquire competitors to reduce competition Expand into neglected markets Change product packaging Tie-up raw material sources Question 86 1 points Save Adaptive new entry involves offering a radical new product or highly innovative service. TrueFalse Question 87 1 points Save Generally speaking, the opportunity recognition process consists of two phases of activity. They are: Global Search and Recycling Profits Value Creation and Affordability Discovery and Evaluation None of the above Question 88 1 points Save Venture capital funding for entrepreneurial ventures is usually available only after the start-up has become a going concern and established a track record. TrueFalse Question 89 1 points Save Which of the following is not a key element of a blue ocean strategy? Pursue low cost and differentiation advantages simultaneously Make the competition irrelevant Highlight incremental improvements to capture market share Create new demand in uncharted territory Question 90 1 points Save Because new ventures are typically small, they usually don’t have high economies of scale relative to competitors. TrueFalse Question 91 1 points Save The best example of a tactical action that a company might use in response to a competitive attack is: Acquire the competitor Target the rival’s markets Expand into new geographical areas Offer price discounts and rebates Question 92 1 points Save Netflix CEO Reed Hastings made this important observation about dealing with rivals: “In a highly competitive marketplace, firms must be paranoid about the multitude of potential rivals.” “You can afford to ignore rivals in small markets, but you can never ignore rivals in large markets, such as on-line video companies like YouTube.” “There are tens and maybe hundreds of start-ups who think that they are going to eat Netflix’s lunch. The challenge for a management team is to figure out which are real threats and which aren’t.” “Netflix’s position is so strong that I don’t worry about new entrants.” Question 93 1 points Save “Blue ocean” strategies rarely provide sustainable advantages because they are easily imitated. TrueFalse Question 94 1 points Save Market commonality is the extent to which rivals draw from the same types of resources. TrueFalse Question 95 1 points Save Forbearance is a particularly aggressive type of competitive attack. TrueFalse Question 96 1 points Save In the context of competitive dynamics, tactical actions involve major commitments of distinctive and specific resources to strategic initiatives. TrueFalse Question 97 1 points Save In the opening case, ESPN’s cell phone enterprise failed even though it was designed to appeal to sports fanatics and was backed by a $40 million ad campaign. What happened? It misread how easy it would be to leverage its brand Compared to other providers, it had no buyer incentives and poor customer service Its costs were significantly higher than other cell phone providers because it had to lease network access All of the above happened Question 98 1 points Save Which of the following questions should a firm ask itself before responding to a competitive attack? How serious is the impact of the attack? What is our competitive intentdo we want to blunt the attack or enhance our competitive position with our response? What resources do we have available for a response? All of the above Question 99 1 points Save Equity financing for entrepreneurial start-ups includes which of the following? Investments by family and friends Personal savings Private investors All of the above Question 100 1 points Save Which of the following types of resources contribute to the success of entrepreneurial firms? Social capital Financial resources Human resources All of the above contribute to the success of entrepreneurial firms

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.