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Management
Q:
Firm E faces an ethical challenge and responds by accepting responsibility and doing all that is required to make the necessary changes in operations. This response is called a defensive response.
a. True
b. False
Q:
Hofstedes studies were based on surveys from 1968-1972 and in light of the cultural changes that have occurred throughout the world in the past forty years, his dimensions of culture are no longer applicable in assessing the role of culture in global business.
a. True
b. False
Q:
The institutional distance between two firms, based on their country of origin, is the same thing as cultural distance.
a. True
b. False
Q:
Doing business with foreigners may significantly reduce transaction costs over doing business with domestic firms.
a. True
b. False
Q:
Transaction cost theorists argue that institutions emerge to combat opportunism.
a. True
b. False
Q:
A middle-of-the-road approach to ethics regards respect for human dignity and basic rights as an absolute minimum ethical threshold for all operations around the world.
a. True
b. False
Q:
Companies that follow ethical imperialism understand that what is ethical in one country should be the standard for all countries.
a. True
b. False
Q:
A firms code of conduct, although typically written, can also be unwritten.
a. True
b. False
Q:
Company Y, which is self-motivated to do it right in its business practices regardless of social pressures, follows an instrumental view of ethics.
a. True
b. False
Q:
Richer, developed countries tend to be less corrupt than poorer, developing countries.
a. True
b. False
Q:
Ethics are universal. What is unethical in one country will be viewed as unethical in other countries.
a. True
b. False
Q:
Australia, considered an individualistic society, fosters a higher level of entrepreneurship than generally found in collectivistic societies.
a. True
b. False
Q:
In Hofstedes dimensions of culture, almost all cultures tend toward a long-term orientation and emphasize perseverance.
a. True
b. False
Q:
Hofstede proposed five dimensions of culture, which include power distance and uncertainty avoidance.
a. True
b. False
Q:
When speaking of a culture, it is important to acknowledge that cultures include many regional, ethnic, and religious layers.
a. True
b. False
Q:
Catastrophes may allow ethical firms to shine.
a. True
b. False
Q:
All sides agree that ethics can make or break a firm.
a. True
b. False
Q:
Western firms tend to focus on relatively short-term profits and shorter planning horizons.
a. True
b. False
Q:
Strategic choices are direct outcomes of the reduced interaction between institutions and firms.
a. True
b. False
Q:
Striking differences between institutions in developed and emerging economies has eliminated the institution-based view from strategy discussions.
a. True
b. False
Q:
Strategic choices are selected within and constrained by institutional frameworks in developed economies.
a. True
b. False
Q:
Historically, the strategy literature has focused on the specific relationship between strategic choices and institutional frameworks.
a. True
b. False
Q:
Relying on informal connections is a strategy only relevant to firms in emerging economies.
a. True
b. False
Q:
In Porters diamond model, the four factors that determine the competitive advantage of different industries in different nations include the history and institutions that influence firm rivalries.
a. True
b. False
Q:
The global competitive accomplishments of a company such as Levi-Strauss are due in part to its domestic demand.
a. True
b. False
Q:
With his diamond model, Porter describes the factors that determine the competitive advantage of globally leading industries.
a. True
b. False
Q:
In Porters diamond model, factor endowments include such components as firm strategy and interfirm rivalry.
a. True
b. False
Q:
The more members a relationship-based exchange network has, the better the network works.
a. True
b. False
Q:
Company A purchases its supplies directly from a foreign company. Because of the distance between the two companies, this transaction is considered an arms-length transaction.
a. True
b. False
Q:
Formal, market-supporting institutions lower transaction costs and facilitate new entries.
a. True
b. False
Q:
One disadvantage of relational contracting is that it may cause firms to abandon established relationships.
a. True
b. False
Q:
Relational contracting is not advantageous when the size of the economy is limited.
a. True
b. False
Q:
Opportunism fosters transaction costs.
a. True
b. False
Q:
Uncertainty involved in transactions of any kind contributes to greater transaction costs.
a. True
b. False
Q:
Economic crises have always been considered to be a force majeure.
a. True
b. False
Q:
The key role of institutions is increasing uncertainty for international firms.
a. True
b. False
Q:
Cognitive pillar refers to the internalized, taken-for-granted values and beliefs that guide individual and firm behavior.
a. True
b. False
Q:
All of the following are arguments used by proponents of offshoring EXCEPT:
a. It is not true that some US employees may lose their jobs.
b. Western firms are able to tap into low-cost and high-quality labor.
c. Firms can focus on their core capabilities.
d. It creates enormous value for firms and economies.
Q:
Recent aspects of outsourcing include all of the following EXCEPT:
a. Business process outsourcing (BPO).
b. High-end services to countries such as India.
c. Digitization and commoditization of service work.
d. Definite long-term benefits.
Q:
Which of the following is not involved in hypercompetition?
a. A shortened window during which a firm may command competitive advantage.
b. Static yet deliberate maneuvering.
c. Unleashing a series of small, unpredictable, but powerful actions.
d. Attempts to erode rivals competitive advantage.
Q:
Recent research suggests that capabilities in very dynamic high-velocity industries (such as IT) are characterized by all of the following EXCEPT:
a. Simple (not complicated).
b. Experiential (not analytic).
c. Linear (not iterative processes).
d. Learning by doing.
Q:
Tacit knowledge is probably the most _________ resource.
a. Static
b. Organizationally complex resource
c. Hard-to-imitate
d. Outsourced
Q:
Firm A designs an innovative product. Firm B manufacturers the product based on the designs provided by Firm A. Firm C markets the product in global markets. In this case, Firm B is considered to be the:
a. Original equipment manufacturer (OEM).
b. Original design manufacturer (ODM).
c. Original brand manufacturer (OBM).
d. None of the above.
Q:
Which of the following is an excellent example of a firms tacit knowledge?
a. The static nature of the firms resources.
b. Familiarity with the preferences of the firms customers.
c. Hard-to-imitate aspect of the firms premier product.
d. The firms reputation within the industry.
Q:
Methods that measure organizational learning, knowledge management, and managerial talents:
a. Look at unobservable firm-specific characteristics.
b. Result in observable consequences of unobservable resources.
c. Are subject to methodological criticisms.
d. All of the above.
Q:
Which of the following is a leading debate about the resource-based view of strategy?
a. The identification of a clearly defined industry.
b. The necessity of choosing a cost leadership or differentiation strategy.
c. The benefits of strategic groups within an industry.
d. The need to move toward dynamic, rather than static, capabilities.
Q:
If Company A and Company B both have valuable assets that are identical, the text indicates that in order for A to gain a competitive advantage over B, A must:
a. Use its assets differently.
b. Find some basis for suing B.
c. Get out of its existing business.
d. Increase its quantity of those assets.
Q:
Examining whether a firm has resources and capabilities to perform a particular activity in a manner superior to competitors is known as _________ in SWOT analysis.
a. Parity
b. Competition
c. Benchmarking
d. Standardization
Q:
The VRIO framework does not include capabilities and resources that are:
a. Valuable.
b. Rare.
c. Imitable.
d. Organizationally embedded.
Q:
Which of the following is better performed in-house rather than being outsourced?
a. An activity with a high degree of industry commonality.
b. An activity with a high degree of commoditization.
c. An industry-specific and firm-specific (proprietary) activity.
d. All of the above.
Q:
Academic research has found support for ______________effects on firm performance.
a. Resource-based
b. Industry-based
c. Complementary specific collective
d. All of the above
Q:
Traditional resource-based view:
a. Overemphasizes leveraging existing resources/capabilities.
b. Overemphasizes developing new resources/capabilities.
c. Does not include an assessment of a firms capabilities.
d. Is primarily focused on a firms tangible resources and capabilities.
Q:
One of the ways in which a firm makes it more difficult for other firms to imitate its resources and capabilities is through:
a. Direct duplication.
b. Non-value-adding activities.
c. Causal ambiguity.
d. None of the above
Q:
A firm with valuable, rare, and hard-to-imitate resources and capabilities will:
a. Always have a sustained competitive advantage.
b. Have difficulty sustaining a competitive advantage if it is not well organized.
c. Outsource all activities except for core activities.
d. Be highly susceptible to commoditization.
Q:
When a companys product is easily imitate:
a. Valuable and rare resources are not really a source of competitive advantage.
b. The company needs more tangible resources.
c. The company benefits from causal ambiguity.
d. None of the above.
Q:
In the VRIO framework, the questions of value and rarity are:
a. Determinants of the level of competitive advantage.
b. Mostly unrelated issues.
c. Less important than whether a firms activity can be imitated.
d. Essentially the same question.
Q:
The relationship between valuable resources and capabilities and firm performance is:
a. Only a factor for large manufacturing organizations.
b. Most often a competitive disadvantage.
c. The primary factor is deciding whether to exit an industry.
d. Basis for determining whether activities are value-adding or non-value-adding.
Q:
The VRIO framework is based on a(n):
a. Captive-sourcing view.
b. Industry-based view.
c. Resource-based view.
d. Institutional-based view.
Q:
Having valuable, but common resources/capabilities leads to:
a. Competitive parity.
b. Competitive advantage.
c. Lack of competition.
d. Competitive disadvantage.
Q:
A small U.S. company located in the West has outsourced its payroll activities to a company in a Midwestern state. This action is known as:
a. Offshoring.
b. Onshoring.
c. Reshoring.
d. Reshoring.
Q:
Which of the following is considered a benefit of outsourcing activities?
a. Leverages activities of multiple clients for greater economies of scale.
b. Shares activities with relatively generic attributes across industries.
c. Allows a firm to focus on its core activities.
d. All of the above.
Q:
The terms outsourcing and offshoring are:
a. Identical in meaning.
b. Two completely separate concepts.
c. Closely related but not identical in meaning.
d. Descriptive of activities to be avoided.
Q:
In conducting a value chain analysis, a manager at a small manufacturing firm looks at a particular department within the company and sees that its activities are proprietary to the companys yet common across the industry. In this case, the manager would:
a. Definitely work toward outsourcing this activity.
b. Definitely work toward keeping this activity in-house.
c. Want to consider outsourcing this activity, sell the unit involved, or lease the units services to other firms.
d. Try to make the activity less proprietary.
Q:
Managers who are involved in value chain analysis:
a. Benchmark the firms overall capabilities.
b. Assess their firms resources and capabilities at a micro, activity-based level
c. Look for ways to commoditize a firms product lines.
d. None of the above.
Q:
International outsourcing involves:
a. Offshoring.
b. Onshoring.
c. Reshoring.
d. Captive sourcing.
Q:
Which of the following statements about resources is true?
a. The dynamics capabilities view makes no distinction between resources and capabilities.
b. Scholars agree that the terms resources and capabilities are interchangeable.
c. A firm uses its tangible assets to choose and implement its strategies.
d. Intangible resources include a firms technological capabilities.
Q:
To choose and implement its strategies, Whole Foods uses:
a. Tangible and intangible assets.
b. Capabilities.
c. Human resources and reputation.
d. All of the above.
Q:
Which view of strategy focuses on how individual firms differ from each other in one industry?
a. Industry-based view.
b. Resource-based view.
c. Organizational-based view.
d. Institution-based view.
Q:
According to the text, which of the following are intangible resources and capabilities?
a. Trade secrets.
b. Organizational.
c. Formal structures.
d. All of the above.
e. None of the above.
Q:
A firms__________ are its tangible and intangible assets a firm uses to choose and implement its strategies.
a. Resources
b. Dynamic capabilities
c. Core competencies
d. Net worth
Q:
In the opening case, which of the following attributes describe IBM is part of the strategy Burberry uses?
a. Outsourcing.
b. Imitation of luxury market competitors.
c. Focus on high value and rarity.
d. Proliferation of unrelated products.
Q:
One of the most important implications for strategic action is that relentless imitation and benchmarking are important but not likely to be a sustainable successful strategy.
a. True
b. False
Q:
A common mistake made when evaluating a firms capabilities is failing to assess them relative to the capabilities of the firms rivals.
a. True
b. False
Q:
When making strategic plans, a manager needs to integrate resources and capabilities that are valuable, rare, and difficult to imitate with those that do not have these attributes.
a. True
b. False
Q:
How a firm performs different value-adding activities relative to rivals determines the scope of a firm.
a. True
b. False
Q:
Resource-based theorists readily admit that the source of sustainable competitive advantage is likely to be found in different places at different points in time in different industries.
a. True
b. False
Q:
Critics suggest that the resource-based view should eliminate dynamic capabilities.
a. True
b. False
Q:
Companies in developing countries are the most frequent users of offshoring opportunities.
a. True
b. False
Q:
Strategy execution in a high-velocity industry would be characterized as linear rather than iterative in nature.
a. True
b. False
Q:
One of the most valuable and organizationally complex resources that is difficult for other firms to imitate is tacit knowledge within a given firm.
a. True
b. False