Term
| foreign subsidiaries play a major role in shaping hte future direction of a company pursuing a(n) |
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Definition
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Term
| a localization strategy is most appropriate when |
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Definition
| consumer preferences vary substantially across nations |
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Term
| a company that enters a foregn market by entering into a licensing agreement with a local company |
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Definition
can realize experience-curve effects.
risks losing control over its technology to the venture partner |
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Term
| for a hotel company whose competitive advantage is based on high brand-name recognition, which of the following ways of serving an overseas market makes the most sense? |
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Definition
|
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Term
| which of the following companies exemplifies the trend toward national markets merging into one large global marketplace? |
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Definition
|
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Term
| which entry mode gives a multinational the tightest control over foreign operations |
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Definition
| setting up a wholly owned subsidiary |
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Term
| a nation's companies gain competitive advantage if their domestic customers are |
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Definition
| sophisticated and demanding |
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Term
| global economies of scale can be realized by |
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Definition
|
|
Term
| factors of production include all but which of the following? |
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Definition
|
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Term
| which of the following entry modes allows a company to engage in global strategic coordination? |
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Definition
| wholly owned subsidiaries |
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Term
| a key to making a strategic alliance work is |
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Definition
| selecting the right partner |
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Term
| attaining a credible commitment from a potential partner |
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Definition
| is a step in partner collection |
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Term
| companies that pursue a transnational strategy are trying to develop |
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Definition
|
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Term
| most manufacturing companies begin their global expansion by |
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Definition
|
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Term
| what are the risks associated with licensing as a mean of entering overseas markets? |
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Definition
can realize experience curve effects
risks losing control over its technology to the venture partner |
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Term
| another name for long-term cooperative relationships who agree to commit resources to develop new products is |
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Definition
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Term
| a hospital supply company invests in training for a team of sales associates to learn the details of each hospital chain's operations. in return, the hostpital chain invests in a computer system that supports supply ordering. the supply company and the hospital chain are working to ensure the success of their long-term relationship by |
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Definition
| making a credible commitment |
|
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Term
| vertical integration is based on a company entering industries that add ______ to its core products |
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Definition
|
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Term
| forward integration means that a company is moving into |
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Definition
|
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Term
| ownership of retail outlets may be important for a manufacturer if |
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Definition
| after sales services are required for complex products |
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Term
| which of the following problems is associated with a strategy of vertical integration? |
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Definition
|
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Term
| to build trust in a cooperative relationship, both firms can |
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Definition
| make mutual investments in specialized assets |
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Term
| john's surfboard shop has a long-term relationship with two surfboard makers. john is using |
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Definition
|
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Term
| when there is a minimal need for close long-term cooperation between a company and its suppliers, which of the following strategies is the most appropriate? |
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Definition
|
|
Term
| outsourcing occurs when a firm |
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Definition
| hires another firm to perform activities |
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Term
| in which of the following is a firm most likely to lose direct control over value creation activities? |
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Definition
|
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Term
|
Definition
| movies some value chain activities outside the firm |
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Term
| ton ensure the easy transfer of important competitive information between a firm and its outsourcing contractors, the firm should |
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Definition
|
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Term
| when technology in an industry is changing rapidly, a company pursuing a strategy of vertical integration may find itself |
|
Definition
| locked in an old, inefficient technology |
|
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Term
| a strategy of vertical integration may be a risky strategy for a company to pursue when demand is |
|
Definition
|
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Term
| what accounts for the high failure rate of all new products that reach the marketplace? |
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Definition
|
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Term
|
Definition
| are an alternative to new ventures |
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Term
| which of the following reasons can make a diversification strategy an unwise course of action for a company to pursue? |
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Definition
|
|
Term
| thinking of it in its simplest terms, the balanced scorecard approach may be viewed as the |
|
Definition
| dials and indicators in an airplane cockpit |
|
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Term
| diversification is sometimes pursued by a company for the wrong reasons. which of the following is a faulty justification for diversification? |
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Definition
|
|
Term
| which of the following structures is the flattest? |
|
Definition
|
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Term
|
Definition
| group activities vertically by function and horizontally by product or project |
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Term
| the most appropriate structure for a company pursuing low-cost and differentiation strategies simultaneously is |
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Definition
|
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Term
| a hospital examines its processes closely and then changes them radically to become more patient centered. among the changes are new ways of doing tasks and new groupings of workers. this is an example of |
|
Definition
|
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Term
| pepsico bought many of its bottlers. which entry mode is pepsico using to enter the bottling industry? |
|
Definition
|
|
Term
| which of the following strategies can companies use as they begin to market their products and establish production facilities overseas? |
|
Definition
| so they could use localization, international, global, transnational |
|
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Term
| in general, the choice of structure and control systems for managing a global business is a function of which of the following factors? |
|
Definition
|
|
Term
| the global product strategy is weak when it comes to |
|
Definition
|
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Term
| when a company uses a network structure to implement outsourcing, |
|
Definition
| many firms along the value chain can easily cooperate |
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Term
| joint ventures are best suited for projects that |
|
Definition
| neither company could do on their own |
|
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Term
| ownership of the company created by a joint venture is usually |
|
Definition
| a matter to be negotiated by the companies in the venture |
|
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Term
| which of the following is not one of the advantages of a geographic structure? |
|
Definition
| cost inefficiences from issues of scope |
|
|
Term
| a matrix structure would be the most appropriate for which of the following firms? |
|
Definition
| a medium sized tech firm with an objective of fast product development time |
|
|
Term
| to a large degree, any organization's tasks are a function of its |
|
Definition
|
|
Term
| essentially, centralization or decentralization are concepts that refer to the |
|
Definition
| levels where decisions are made in an organization |
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Term
| the degree to which a company specifies how decisions are to be made so that employees' behavior becomes predictable is referred to as |
|
Definition
|
|
Term
| which of the following is required by a restructuring |
|
Definition
| lay off employees, flattening the organizational heirarchy |
|
|
Term
| which of the following actions would you expect to see in a company that is undergoing a reengineering? |
|
Definition
| examining activities from a customer's point of view |
|
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Term
|
Definition
| a radical readjustment of the organization's staffing and heirarchy |
|
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Term
| in a successful company, the purpose of a control system is to |
|
Definition
| A and B (provide managers with a set of incentives to motivate employees to work toward company goals, provide managers with specific feedback on how well the organization and its members are performing |
|
|
Term
| in organization, for-profit or not-for-profit, span of control refers to the |
|
Definition
| number of subordinates who report directly to one manager |
|
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Term
| the basic building blocks of competitive advantage include control and which of the following factors? |
|
Definition
| efficiency, quality, innovation, and customer responsiveness |
|
|
Term
| strategic control systems utilized to ensure long-run profitability include |
|
Definition
|
|
Term
| the specific collection of values, norms, beliefs, and attitudes shared by people and groups in a company is commonly referred to as organizational structure |
|
Definition
|
|
Term
| the term used to descrive how people learn an organization's culture and way of behaving in the organization is |
|
Definition
| organizational societalization |
|
|
Term
| an organization that has an adaptive culture is an organization that is |
|
Definition
| A and C (innovative and supportive of managers who take the initiative and make changes on their own) |
|
|
Term
| a functional organizational structure offers a company which of the following advantages? |
|
Definition
| assign employees to specific value creation tasks and roles which link to efficiency quality innovation and customer responsiveness |
|
|
Term
| organizations strive to control employees' behavior by linking ______ systems to their control systems. |
|
Definition
|
|
Term
| the organization structure that organizations most commonly adopt to solve control problems that result from producing many different kinds of products for many different market segments is |
|
Definition
|
|
Term
| as a company begins producing or selling in many different regional areas, it may encounter problems associated with |
|
Definition
| different customer needs or preferences in the carious regions |
|
|
Term
| a company tha tmakes and sells the same product in many different countries often groups its overseas divisions into _______________ to simplify the coordination of products across countries |
|
Definition
|
|
Term
| implementation of a global matrix provides a company with which of the following advantages? |
|
Definition
| lower their global structure cost and differentiates their activities |
|
|
Term
| when toyota first decided to manufacture and market cars in the US, it entered into a ________________ with GM |
|
Definition
|
|
Term
| in joint venturing, two or more companies typically agree to |
|
Definition
| join together in a business |
|
|
Term
| which of the following is not a consequence of the increased ability of managers to use information technology as they implement strategies? |
|
Definition
| ARE: customer responsiveness, easier to share information among functions, easier to decentralize control, add high value to organization |
|
|
Term
| B2B networks link firms to |
|
Definition
| each other to establish industry specification and standards |
|
|
Term
| which of the following companies is the best example of an organization that formally encourages and supports entrepreneurship? |
|
Definition
| IT organizations such as oracle |
|
|
Term
| the purpose of a joint venture between two or more companies is often to develop technology, distribute or share access customers |
|
Definition
|
|
Term
| which of the following are innovations that the multidivisional organization structure processes over the functional or product organizational structure? |
|
Definition
| enhanced corporate financial control, enhanced strategic control, growth, stronger pursuit of internal efficiency |
|
|
Term
| the most widely used vehicles that companies can use to enter new industries or countries are |
|
Definition
|
|
Term
| information technology facilitates |
|
Definition
| output and finance control |
|
|
Term
| at the level of organizational structure, control and culture, _________ has given strategic managers many new options in implementing strategies |
|
Definition
|
|
Term
| the set of strategic alliances that an organization creates with suppliers, manufacturers, and distributors to produce and market a product is called a(n) |
|
Definition
|
|
Term
| to be commercially successful, new products must be developed with _____________ utmost in mind |
|
Definition
|
|
Term
| if a company is to increase the profitability of a new product's commercial success, the company must foster close links between ________ and ________ |
|
Definition
|
|
Term
| which of the following seems to be a major determinant of a new venture's success? |
|
Definition
|
|
Term
| an internal new venture is the most appropriate strategic choice when |
|
Definition
| a company possesses one or more generic distinctive competencies in its core business model that can be leveraged or recombined to enter a new industry |
|
|
Term
| which of the following entry strategies should be used when speed is an important consideration? |
|
Definition
|
|
Term
| a company considering entering an industry that is in the mature stage of its life cycle would generally prefer which of the following entry strategies? |
|
Definition
|
|
Term
| acquisitions often fail because of |
|
Definition
1) poor post-acquisition integration
2. overestimating economic benefits
3. expense of acquisitions
4. poor pre-acquisition screening |
|
|
Term
| which of the following is (are) the probable consequence(s) of an inability to integrate two divergent corporate cultures after an acquisition? |
|
Definition
| high management turnover and unhappy employees and material harm to performance |
|
|
Term
| stanley's services firm wants to enter an embryonic market, but it doesn't have enough cash to purchase the required assets, which of the following strategies would you recommend to stanley? |
|
Definition
|
|
Term
| in the joint venture between stephanie's dressmaking shop and kevin's fabric company, the partners argue constantly about how to schedule tasks and reward workers. which of the following disadvantages is stephanie and kevin's joint venture experiencing? |
|
Definition
| they have different business philosophies, time horizons, and investment preferences |
|
|
Term
| economies of scope typically involve |
|
Definition
| cost-saving or differentiation advantages by effectively pooling, sharing, and utilizing expensive resources or capabilities such as skilled workers, equipment, manufacturing facilities, distribution channels, ad campaigns, and r&d labs. |
|
|
Term
| the greater the number of business units in a company's portfolio the _______ it is for corporate managers to remain informed about the complexities of each business |
|
Definition
|
|
Term
| what is perhaps the most important reason why acquisitions made by a company fail? |
|
Definition
| the acquisition of companies whose stock is publicly traded tends to be very expensive (bids, payouts, etc) |
|
|
Term
| at its simplest level, a joint venture may be thought of as a(n) |
|
Definition
|
|
Term
| the basic principles of agency theory are |
|
Definition
| relatively straight forward |
|
|
Term
| the purpose of governance mechanisms in corporations is to |
|
Definition
| reduce the scope and frequency of the agency problem; to help ensure that agents act in a manner that is consistent with the best interests of their principals |
|
|
Term
| what is the major purpose of a corporate board of directors? |
|
Definition
| represent the stockholders' interests in the company, also monitor corporate strategy decisions and ensure that they are consistent with stockholders' interests. making sure audited financial statements of the company present a true picture of its financial situation |
|
|
Term
| a typical board of directors is composed of |
|
Definition
| a mix of inside and outside directors |
|
|
Term
| a stock option is a right to buy |
|
Definition
| the company's shares at a predetermined price at some point in the future, usually within 10 years of the grant date |
|
|
Term
| Sarbanes-Oxley, federal legislation enacted in 2002, requires |
|
Definition
| nternal controls for assuring the accuracy of financial reports and disclosures, and mandates both audits and reports on those controls. It also timely reporting of material changes in financial condition and specific enhanced reviews by the SEC or its agents of corporate reports. |
|
|
Term
| the takeover constraint refers to the |
|
Definition
| risk of being acquired by another company |
|
|
Term
| ethics may best be thought of as |
|
Definition
| accepted principles of right or wrong that govern conduct of businesspeople |
|
|
Term
| CEO compensation packages are most frequently criticized because of their |
|
Definition
|
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