Term
| If the U.S. dollar appreciates relative to foreign currency, what is likely to be the result for the U.S. company that has company branches abroad? |
|
Definition
| negative implications, The reason for this is that profits from abroad must be exchanged for dollars at a more expensive rate of exchange |
|
|
Term
| southwest Airlines began its no frills, no meals strategy in the late 1960s as a direct assault on the major carriers of the day. What type of competitive action does this represent? |
|
Definition
|
|
Term
| A firm is considering a large price cut on its leading product as a way to gain market share. One executive strongly disagrees with the price cut. He observes that they are in the same marketplace as their rivals and do not have any competitive advantages in their cost structure. If they cut prices, their competitors will likely do the same. The end result is that everyone will make less money. These arguments are an example of ________________. |
|
Definition
|
|
Term
| Effective short-term objectives should ______________ and _____________. |
|
Definition
|
|
Term
| 5. Which of the following statements about action plans is true? |
|
Definition
| Unless action plans are specific, there may be little assurance that managers have thought through all of the resource requirements for implementing their strategies. |
|
|
Term
| 6. The failure of many auditing firms to raise red flags about accounting irregularities in companies such as Enron and WorldCom is generally attributed to all of the following |
|
Definition
auditors are appointed by the firm being audited.
most auditing firms also do lucrative consulting work with the firms that they audit |
|
|
Term
| 7. The reasons analyst recommendations are often more optimistic than warranted by an objective analysis of the facts include all of the following except that _____________. |
|
Definition
| Most analysts work for firms that have investment banking relationships with the companies they follow. |
|
|
Term
| 8. A strategy of related diversification requires most firms to organize around geographical areas or product lines. This type of organizational growth leads to ______________ structure. |
|
Definition
|
|
Term
| 9. Which of the following statements about simple organizational structures is not true? |
|
Definition
| They are the oldest, and most common, organizational form. Have a narrow product line and Decision making is highly centralized. There is little specialization of tasks. There are few rules and regulations |
|
|
Term
| 10. Functional structures are usually found in organizations where _____________. |
|
Definition
| a single or closely related product or service, high production volume, and some vertical integration |
|
|
Term
| 11. Which of the following is an advantage of a functional type of organizational structure? |
|
Definition
| a firm is able to enhance its coordination and control within each of the functional areas |
|
|
Term
| 12. Which of the following is a disadvantage of a functional type of organizational structure? |
|
Definition
| differences in functional orientation may impede communication and coordination |
|
|
Term
| 13. Which of the following is an advantage of a divisional type of organizational structure? |
|
Definition
| an enhanced ability to respond quickly to changes in the external environment |
|
|
Term
| 14. Which of the following is not a disadvantage of a divisional type of organizational structure? |
|
Definition
very expensive,
There also can be dysfunctional competition among divisions |
|
|
Term
| 15. 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? |
|
Definition
| strategic business unit structure |
|
|
Term
| 16. Which of the following is not an advantage of a strategic business unit (SBU) type of organizational structure? |
|
Definition
| It makes planning and control by the corporate office more manageable. |
|
|
Term
| 17. Important advantages of a holding company structure include _____________. |
|
Definition
| savings in personnel and overhead expenses associated with a small corporate office |
|
|
Term
| 18. Strategic business unit (SBU) and holding company structures result from extensive _____________. |
|
Definition
|
|
Term
| 19. Strategic business unit (SBU) structures are best suited for corporations pursuing _____________, whereas holding company structures are best suited for companies with ______________ strategies. |
|
Definition
related diversification,
unrelated diversification |
|
|
Term
| 20. A matrix organizational structure is characterized by a combination of the ______________ and _____________. |
|
Definition
|
|
Term
| 21. Which of the following is considered to be an advantage of a matrix structure? |
|
Definition
| a. Resource sharing and collaboration |
|
|
Term
| 22. Generally speaking, discussions of the relationship between strategy and structure strongly imply that _____________. |
|
Definition
| Structure Follows Strategy |
|
|
Term
| 23. If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for its organizational structure is ______________ structure. |
|
Definition
| worldwide matrix structure |
|
|
Term
| 24. If an international firm has a global strategy and a relatively low level of product diversity, the best choice for its organizational structure is ______________ structure. |
|
Definition
| worldwide product division structure |
|
|
Term
| 25. The relationship between strategy and structure can be best described as _____________. |
|
Definition
| strategy and structure influence each other |
|
|
Term
| 26. A global start-up faces many management challenges including _____________. |
|
Definition
| Communication and coordination across time zones, cultures, less resources |
|
|
Term
| 27. According to author, Jeffrey Pfeffer, which of the following is not an advantage of teams? |
|
Definition
three primary advantages:
substitute peer-based control for hierarchical control of work activities,
frequently develop more creative solutions,
teams permit the removal of layers of hierarchy and absorption of administrative tasks |
|
|
Term
| 28. Organizations are increasingly using teams for many reasons. The difference between a good team and an outstanding team has been found to be _____________. |
|
Definition
| the way members treated each other, the degree to which they believed in one another and created an atmosphere of encouragement rather than competition. |
|
|
Term
| 29. Which of the following is NOT a disadvantage of the barrier-free form of organization? |
|
Definition
| quicker response to market changes |
|
|
Term
| 30. What type of organization is defined as a central hub surrounded by networks of outside suppliers and specialists? |
|
Definition
|
|
Term
| 31. What is the name of the practice that many modular organization use to grow? |
|
Definition
|
|
Term
| 32. What advantages does outsourcing not provide an organization? |
|
Definition
can tap into the knowledge and expertise,
focus scarce resources, leverage relatively small amounts of capital and a small management team |
|
|
Term
| 33. Which of the following is NOT a strategic risk of outsourcing? |
|
Definition
| (1) loss of critical skills or developing the wrong skills, (2) loss of cross-functional skills, and (3) loss of control over a supplier |
|
|
Term
| 34. A virtual organization may be most appropriate for firms _____________. |
|
Definition
| whose strategies require merging technologies (e.g., computing and communication) or for firms exploiting shrinking product life cycles |
|
|
Term
| 35. Virtual organizations ______________ whereas modular organizations _____________. |
|
Definition
| GIVE UP PART OF THEIR STRATEGIC CONTROL, RETAIN FULL STRATEGIC CONTROL." |
|
|
Term
| 36. Which of the following is not a disadvantage of virtual structures? |
|
Definition
| DIFFICULTY IN INDIVIDUAL AND ORGANIZATIONAL KNOWLEDGE SHARING. |
|
|
Term
| 37. Coca-Cola, Ford Motor Company, H. J. Heinz, Nike, and Procter and Gamble are working together to develop plant-based plastics. Each company brings its own competency to the table. This collaboration is an example of a _____________. |
|
Definition
|
|
Term
| 38. Organizations generally tend to become internally focused when faced with ______________ and _____________. |
|
Definition
| external pressures, resource scarcity, and declining performance |
|
|
Term
| 39. If a firm outsources some parts of its value chain in order to reduce costs and increase quality and at the same time engages in multiple alliances to penetrate new markets, this is an example of a firm using a ______________ of organizational types. |
|
Definition
|
|
Term
| 40. Tools and techniques used to achieve effective coordination and integration of key activities in an organization include all of the following except _____________. |
|
Definition
| factors that must be considered include common culture and shared values, horizontal organizational structures, horizontal systems and processes, communications and information technologies, and human resource practices |
|
|
Term
| 41. Effective ambidextrous organizations have alignment, which means that _____________. |
|
Definition
| clear sense of how value is being created in the short-term and how activities are integrated and properly coordinated. |
|
|
Term
| 42. Effective ambidextrous organizations maintain adaptability, which means that _____________. |
|
Definition
| remain proactive in expanding and/or modifying their product-market scope to anticipate and satisfy market conditions |
|
|
Term
| 43. According to the study by OReilly and Tushman, effective ambidextrous structures had all of the following attributes except _____________. |
|
Definition
| clear and compelling vision, cross-fertilization, shielded from the distractions, refining their operations, enhancing their products, and serving their customers. |
|
|
Term
| 44. Which of the following is not a dilemma faced by corporations trying to manage the innovation process? |
|
Definition
| 5 dilemas: seeds versus weeds, experience versus initiative, internal versus external staffing, building capabilities versus collaborating, and incremental versus preemptive launch. |
|
|
Term
| 45. The innovation dilemma known as building capabilities versus collaborating refers to _____________. |
|
Definition
| firms can seek help from other departments or partner with other companies |
|
|
Term
| 46. The innovation dilemma known as seeds versus weeds refers to _____________. |
|
Definition
| which one will bear fruit (Seeds) and which should be cast aside (Weeds). |
|
|
Term
| 47. Creative intelligence involves the ability to see patterns in data, integrating data, and making insights. Which of the following are the four patterns of action managers should take in order to develop more creative and higher potential innovations? |
|
Definition
| questioning, observing, experimenting, and networking. |
|
|
Term
| 48. Individuals with highly innovative DNA traits have the ability to connect seemingly unrelated questions, problems, and ideas from different fields that allows them the opportunity to creatively see opportunities others miss. This is referred to as _____________. |
|
Definition
|
|
Term
| 49. In the 1990s, DuPont used its knowledge of plastics to develop biodegradable plastic products. This is an example of _____________. |
|
Definition
|
|
Term
| 50. Which of the following is an advantage of collaborating with strategic partners in order to innovate? |
|
Definition
| identify their strengths and weaknesses and make choices about which capabilities to leverage, which need further development, and which are outside the current or projected scope of operations of the firm. |
|
|
Term
| 51. McGrath and Keil researched the types of human resource management practices that effective firms use to capture value from their innovation efforts. Which of the following is one of their findings? |
|
Definition
| a. Separate the performance of individuals from the performance of the innovation |
|
|
Term
| 52. In a typical corporation, which of the following factors does determine how entrepreneurial projects will be pursued? |
|
Definition
| corporate culture, leadership, structural features that guide and constrain action, and organizational systems that foster learning and manage rewards. |
|
|
Term
| 53. Two common forms of a focused approach to corporate entrepreneurship include ______________ and _____________. |
|
Definition
new venture groups
business incubators |
|
|
Term
| 54. According to the text, _____________, which support fledgling startups are often used to pursue specific entrepreneurial ventures developed by _____________. |
|
Definition
| business incubators; new venture groups |
|
|
Term
| 55. Which of the following do corporate business incubators typically provide? |
|
Definition
| funding, physical space, business services, mentoring, and networking. |
|
|
Term
| 56. Which of the following is part of a culture of entrepreneurship? |
|
Definition
| everyone in the organization is attuned to opportunities to help create new businesses. |
|
|
Term
| 57. Common features of a dispersed approach to corporate entrepreneurship include all of the following except _____________. |
|
Definition
| semi-autonomous new venture groups. |
|
|
Term
| 58. In corporations with a strong entrepreneurial culture, the willingness and ability to change _____________. |
|
Definition
| is considered to be a core capability |
|
|
Term
| 59. On average, approximately what percentage of corporate ventures reaches profitability within six years? |
|
Definition
| slightly more than 50 percent |
|
|
Term
| 60. Financial reasons for undertaking internal corporate venturing include _____________. |
|
Definition
|
|
Term
| 61. Strategic reasons for undertaking a corporate venture do not include _____________. |
|
Definition
| strengthen the competitive position, enter into new markets, expand capabilities by learning and acquiring new knowledge, and build the base of resources and experience of the corporation. |
|
|
Term
| 62. One of the following is not a question that should be answered when evaluating the performance of corporate venturing efforts. Which is it? |
|
Definition
| Are the products or services offered by the venture accepted in the marketplace?; Are the contributions of the venture to the internal competencies and experience of the corporation valuable?; Is the venture able to sustain its basis of competitive advantage? External funding may not be critical to success. |
|
|
Term
| 63. Whereas ______________ are willing to violate procedures and operate outside normal channels, ______________ gather hard data and develop a strong case for why a project should be killed. |
|
Definition
| Product champions, Exit champions |
|
|
Term
| 64. Real options analysis is most appropriate when _____________. |
|
Definition
| investments can be staged |
|
|
Term
| 65. 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 _____________. |
|
Definition
|
|
Term
| 66. Which of the following statements about skunkworks is false? |
|
Definition
| they refer to a specialized type of outside contractor that corporations use to develop entrepreneurial ideas. |
|
|
Term
| 67. 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 _____________. |
|
Definition
| often lack coordination; which led to spiraling costs and overly complex operations |
|
|
Term
| 68. One of the following statements about innovativeness is not true. Which is it? |
|
Definition
| it refers to making decisions and taking risks without certain knowledge of probable outcomes. |
|
|
Term
| 69. According to the text, which of the following is not one of the methods companies can use to enhance their competitive position via innovativeness? |
|
Definition
| copying the business practices or techniques of successful competitors |
|
|
Term
| 70. Amazon was able to define the online bookselling market by entering the market early and defining the user experience. This is an example of _____________. |
|
Definition
|
|
Term
| 71. According to the text, firms that want to enhance their entrepreneurial position by being competitively aggressive should _____________. |
|
Definition
| enter markets with drastically lower prices. |
|
|
Term
| 72. One of the following is not a type of risk that executives must address. Which is it? |
|
Definition
| product-market risk taking |
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|
