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Management
Q:
Retrenchment:
A. Often involves work force reductions
B. Is a growth strategy
C. Involves an increase in the firm's workforce
D. Involves a loosening of cost controls
E. Typically builds on the existing corporate culture
Q:
Businesses that should be strongly considered for divestiture during restructuring include those:
A. With high value in the financial markets
B. With high R&D expenses
C. With low operational relatedness
D. With low to moderate risk
E. With high capital intensity
Q:
Which of the following restructuring actions is most likely to involve the divestiture of a business unit?
A. Leveraged buyout
B. Joint venture
C. Downscoping
D. Acquisition
E. None of the above
Q:
If a firm sells units that are not consistent with the strategic direction of the organization, it is involved in:
A. Low-cost leadership
B. Leveraged buyouts
C. Downscoping
D. Outsourcing
E. Downsizing
Q:
Common restructuring techniques include all of the following except:
A. Chapter XI reorganization
B. Leveraged buyouts
C. Retrenchment
D. Refocusing corporate assets on distinctive competencies
E. These are all common restructuring techniques; there is no exception
Q:
Which of the following isnot a dimension used to describe national cultures?
A. The degree to which members of the society accept or expect uneven power distributions in society
B. The degree to which the focus of society is on individuals or the group
C. The degree to which the society draws strong distinctions between gender roles
D. The degree to which members of the society reflect established ethical norms
E. The degree to which members of society are tolerant of uncertainty and ambiguity
Q:
National cultures can be classified on their levels of Confucian dynamics. This means:
A. The degree to which decisions are focused on the long term or short term
B. The degree to which society draws strong distinctions between gender roles
C. The degree to which members of society accept uneven power distribution
D. The degree to which the focus of society is on the individual or the group
E. The degree to which members of society are tolerant of uncertainty and ambiguity
Q:
A control system that is based on socialization of organizational members is:
A. Bureaucratic control
B. Output control
C. Clan control
D. Process control
E. Human resources systems
Q:
A control system that consists of rules, policies and guidelines to guide the behavior of organizational members is:
A. Bureaucratic control
B. Output control
C. Clan control
D. Process control
E. Human resources systems
Q:
Feedforward control systems are especially important because of:
A. Rapid changes in the broad environment
B. Stability in the environment
C. High profits
D. The decreasing role of government regulation in the world economy
E. Social audits
Q:
The elements in a feedback control system include all of the following except:
A. Establishment of targets and time frames in which they should be accomplished
B. Assignment of responsibility for achieving specific targets to managers
C. Development of an action plan
D. Establishment of policies
E. Identification of key result areas
Q:
Feedback control systems perform the following functions in organizations:
A. They help managers decide when and how to intervene in organizational processes by identifying areas requiring further attention
B. They motivate managers to pursuer organizational interests
C. Creating specific objectives ensures that managers understand the plans and strategies that guide organizational decisions
D. All of these are true
E. A and B are true, but not C
Q:
Which type of control provides managers with information concerning outcomes from organizational activities?
A. Feedforward control
B. Vertical control
C. Feedback control
D. Horizontal control
E. Integrative control
Q:
When managers are trying to anticipate changes in the internal and external environments, they are using:
A. Feedforward control
B. Vertical control
C. Feedback control
D. Horizontal control
E. Integrative control
Q:
A strategic control system helps managers to assess the relevance of the organization's strategy:
A. To its profitability
B. To its progress in the accomplishment of its goals
C. To the needs of its employees
D. In order to specify product line extensions
E. To its competitors' strategies
Q:
One example of a leveraged buyout is when a business unit is purchased by its managers.
Q:
Most firms that file for Chapter XI protection are able to retain most of their assets through the end of the reorganization process.
Q:
Downscoping involves increasing an organization's diversification while reducing its size.
Q:
Restructuring can be defined as a detailed analysis of a firm's competitors and other external stakeholders and competitive forces.
Q:
Restructuring typically involves a renewed emphasis on the things an organization does well, combined with a variety of tactics to revitalize the organization and strengthen its competitive position.
Q:
No strategy or organizational design works indefinitely.
Q:
The first step in a strategic control system is measuring actual firm performance.
Q:
Budgets are a common type of feedforward control.
Q:
Feedback control systems can motivate managers to pursue organizational interests as opposed to purely personal interests.
Q:
Feedback control includes a timeframe for measuring performance.
Q:
Feedforward control provides managers with information concerning outcomes from organizational processes.
Q:
A strategic control system helps top managers evaluate organizational progress.
Q:
Organizational energy:
A. Describes how enthusiastic and focused a firm is in moving towards its goals
B. Is a key component of a firm's social responsiveness strategy
C. Powers the firm's manufacturing operations
D. Is created through a firm's marketing strategy
E. None of the above
Q:
The firm's system of shared values that guides employees is called:
A. Organizational energy
B. Organizational culture
C. Organizational synergy
D. Organizational power
E. None of the above
Q:
If a foreign subsidiary focuses on one country, making only minor adjustments to the overall business strategy of the firm to meet local market needs, it is playing the role of:
A. Global mandate
B. Global implementation
C. International focus
D. Local implementation
E. Specialized contribution
Q:
If a foreign subsidiary plays a unique role as a part of an interdependent network of subsidiaries, it is playing the role of:
A. Global mandate
B. Global implementation
C. International focus
D. Local implementation
E. Specialized contribution
Q:
With regard to organizational structure, the increasing need for strategic flexibility in an increasingly competitive global marketplace has led to:
A. Simpler structures
B. Organizations brining more of their operations back into the firm
C. Fewer franchises
D. The adoption of less structure corporate forms of organization
E. More centralized decision making
Q:
Which of the following is a characteristic of a strategic business unit structure?
A. Each strategic business unit includes businesses that have something in common
B. Strategic business units are formed based on whether they are fast growing or slow growing
C. All of the businesses in a strategic business unit sell to a common group of customers
D. They are very similar to a matrix structure
E. None of the above
Q:
Which of the following is not a true statement about matrix structures?
A. They are most common in organizations that experience their workload in the form of projects
B. Many employees report to two bosses
C. It can be difficult to balance the needs of different lines of authority
D. It is a simple structural form for organizations in environments with a low level of complexity
E. These are all true statements.
Q:
Which structure combines the essential elements of the functional and divisional structures?
A. Functional
B. Divisional
C. Matrix
D. Network
E. Manufacturing
Q:
If a firm is very decentralized and has a web of independent offices in each region, with little or no formal hierarchy, which structure is it likely to have?
A. Functional
B. Divisional
C. Matrix
D. Network
E. Manufacturing
Q:
Which organizational structure is organized around inputs or activities that are required to produce products and has a high level of centralization?
A. Functional
B. Divisional
C. Matrix
D. Network
E. TQM
Q:
Well-developed functional strategies should have all of the following characteristics except:
A. They are inexpensive to implement
B. Decisions made within each functional area should represent a consistent pattern
C. They should be consistent with the strategies of the business
D. Decisions made in one functional area should be consistent with those made in other functional areas
E. These are all true; there is no exception
Q:
Enterprise resource planning systems:
A. Manage the flow of information throughout the entire organization
B. Support a wide variety of functions
C. Are found in most of the successful large retailers in the United States
D. Can help integrate functional strategies
E. All of the above
Q:
Which of the following activities is most closely related to marketing strategies?
A. Identifying product opportunities
B. Technology development
C. Basic research
D. Applications development
E. Process development
Q:
The _____________ addresses the plan for aligning product and service operations with business strategies.
A. Information systems strategy
B. R&D strategy
C. Operations strategy
D. Marketing strategy
E. Human resources strategy
Q:
In most organizations, research and development strategy deals with all of the following except:
A. Product development
B. Applications development
C. Basic research
D. Human resource development
E. Process development
Q:
Which functional area is largely responsible for spanning the boundary of the organization to interact with customers?
A. Marketing
B. Finance
C. Operations
D. Information systems
E. Human resources
Q:
Which types of strategies are used to implement the growth and competitive strategies of the firm?
A. Focus strategies
B. Generic strategies
C. Functional strategies
D. Corporate strategies
E. Indirect strategies
Q:
Foreign subsidiaries classified as specialized contributors focus on one country, make only minor adjustments to strategy, and have little independence.
Q:
The matrix structure is a way to achieve a high degree of coordination among several related businesses.
Q:
A divisional structure is especially appropriate for a business pursuing a market penetration growth strategy.
Q:
A functional structure is designed around the outputs of an organization, as represented by product groups or markets.
Q:
For each organization, there is one organization structure that will best optimize performance.
Q:
The same marketing strategies are used in supporting low-cost leadership and differentiation strategies.
Q:
Supply chain management involves the integration of the interests of the focal company, the company's customers and the company's suppliers.
Q:
An effective operations unit is one that promises the maximum efficiency or engineering perfection independent of the strategy of the business overall.
Q:
Marketing strategies are concerned exclusively with the needs of customers.
Q:
Functional strategies are detailed action plans for implementing the growth and competitive strategies of the company.
Q:
What are some of the features found in firms that have high levels of innovation and entrepreneurship?
Q:
Describe the three roles played by foreign subsidiaries?
Q:
What is a matrix structure? When should it be used?
Q:
What are the characteristics of a well-developed functional strategy?
Q:
How are marketing strategies affected by the firm's business-level strategy?
Q:
Factors that encourage innovation and entrepreneurship include all of the following except:
A. Human resources systems that reward innovative behavior
B. Systems that facilitate creation of new products, processes, and services
C. Low levels of slack financial resources
D. A culture that encourages innovation
E. None of the above. These are all factors that encourage innovation and entrepreneurship
Q:
Which factors have been found to lead to unsuccessful mergers and acquisitions? Which factors are related to success?
Q:
What are the requirements for achieving synergy through the combination of businesses?
Q:
Why might an organization choose to diversify?
Q:
Discuss the major corporate-level strategy formulation responsibilities. How are they different from business-level strategy formulation responsibilities?
Q:
In the Boston Consulting Group Matrix, stars:
A. Have high growth rates and low relative market share
B. Have low growth rates and high relative market share
C. Have low growth rates and low relative market share
D. Have high growth rates and high relative market share
E. Have low growth rates and low profitability
Q:
In the Boston Consulting Group Matrix, cash cows:
A. Have high growth rates and low relative market share
B. Have low growth rates and high relative market share
C. Have low growth rates and low relative market share
D. Have high growth rates and high relative market share
E. Have low growth rates and low profitability
Q:
What is on the two axes of the Boston Consulting Group Matrix?
A. Stars and cash cows
B. Business growth rate and relative competitive position
C. Market share and relative competitive position
D. Profitability and business growth rate
E. Business growth rate and cash flow
Q:
Successful strategic alliances are characterized by all of the following except:
A. Careful planning and execution
B. Selection of partners with complementary resources
C. Effective use of coordinating mechanisms
D. Potential for financial economies
E. Selection of an appropriate governance method
Q:
Strategic alliances:
A. Result in complete control by one firm
B. Incur low administrative costs
C. Entail a risk of opportunism by partners to the venture
D. Are desirable in all environments
E. Typically result in unfavorable stock market reactions
Q:
Strategic alliances:
A. Slow the speed of entry into a new field or market
B. Are considered a more risky diversification option than mergers
C. Encourage the entry of new competitors
D. Are often motivated by the desire to share resources across companies
E. Are associated with low levels of administrative costs
Q:
Mergers are more likely to be successful if:
A. They are expensive
B. They are friendly
C. They involve high premiums
D. The managers of the acquired firm leave to make way for new managers
E. There is less money spent on R&D during the first year after acquisition
Q:
If all of the businesses of an organization are related to a common "core" business, the organization is probably pursuing which corporate strategy?A.ProspectorB.Cost focusC.Vertical integrationD.DefenderE.Related diversification
Q:
Which of the following is most likely to occur as a result of an acquisition?A.Increase in financial leverageB.Increase in profitabilityC.Increase in R&DD.Increase in patentsE.Both C and D are correct
Q:
One of the advantages of internal venturing is that:
A. It is a fast way to enter new markets
B. It is much less risky than other strategies
C. Proprietary information need not be shared with other companies
D. Profits are shared with other companies
E. None of the above
Q:
Two organizations or business units have similar management processes, cultures, systems, and structures. These similarities are best described as:
A. Synergy
B. Managerial hubris
C. Business intelligence
D. Tangible relatedness
E. Organizational fit
Q:
When skills developed in one area can be applied to another area, which of the following results?
A. Intangible relatedness
B. Tangible relatedness
C. Specialized scope
D. Focus
E. Goodwill
Q:
When an organization can use the same physical resources for multiple purposes, it is taking advantage of:
A. Intangible relatedness
B. Tangible relatedness
C. Limited scope
D. Dominant industry relationships
E. Goodwill
Q:
Related diversification differs from unrelated diversification in which of the following ways?
A. Related diversification is connected to the organization's dominant business; unrelated diversification is not
B. Unrelated diversification is connected to the organization's dominant business; related diversification is not
C. Single business firms use related diversification and never use unrelated diversification
D. Single business firms use unrelated diversification and never use related diversification
E. A firm that uses related diversification always uses vertical integration; a firm that uses unrelated diversification never uses vertical integration
Q:
What has been observed as the relationship between diversification and firm performance?
A. Moderate levels of diversification provide the highest performance
B. Low levels of diversification provide the highest performance
C. High levels of diversification provide the highest performance
D. Moderate levels of diversification provide the lowest performance
E. None of these
Q:
According to the theory of transaction cost economics, a market is likely to fail if:
A. There are a large number of suppliers
B. All parties to the transaction have the same level of knowledge
C. The future is highly uncertain
D. The future is highly certain
E. Assets may be used to produce a variety of products or services