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114 Cards in this Set

  • Front
  • Back

Dollar General looked at the strategic group map of theretail industry and identified an area below Wal-Mart and K-Mart on the pricingaxis where no other companies were doing business on a broad geographic scale.In choosing this competitive position for its business, Dollar General decidedto pursue the ________________ strategy.

b. Blue-ocean

In choosing a rival to attack, all of the following areexcellent candidates except:

e. Market leaders at their strongest to prove the challenger’s strength

T/F Adopting a first-mover strategy guarantees success by creating customers strongly loyal to the pioneering firm.

b. False

Vertical integration only has appeal for a firm if it significantly strengthens a firm’s competitiveness and/or _____________.

b. boosts its profitability

Joint ventures and long-term contracts are examples of:

c. strategic alliances

Increasing a company’s horizontal scope can be accomplished through:

c. Mergers and acquisitions

Disadvantages associated with verticalintegration include:

b. Increased capital investment

The biggest risk of an outsourcing strategy is:

e. Hollowingout your organization by outsourcing the wrong activities

__________ occurs when a business acquires suppliers.

a. Backward integration.

______________ involves making some of a particular inputin-house while simultaneously using an outside supplier for the rest.

c. Backward tapered integration

After years of struggling to get additional grocery store shelf space to show off its many flavors, Haagen-Dazs decided to open its own ice cream shops to augment its grocery store presence. This decision to pursue both distribution channels simultaneously would best be described as:

d. forward taper integration

T/F Outsourcing is a common strategy for increasing the scope of a firm.

b. false

__________ occurs when business acquires customers.

c. Forward integration.

Daimler-Chrysler and AOL-Time Warner are examples of_____________________ that went horribly wrong.

b. mergers

The success rate of mergers and acquisitions isroughly ______________.

c. 30%

Recently,both Coke and Pepsi decided to purchase the American bottling companies thatmixed and distributed their respective brands. This move, which was a reversalof years of strategy, would best be described as _____________________.

c. backward integration

Inacquisitions, value generated usually goes to _____________.

c. acquirers

K-Mart’sacquisition of Sears is considered:

c. horizontal integration

Vulcan,Inc., an American aggregates company and the Mexican real estate company GrupoICA created and jointly owned the limestone mining company CALICA, which Vulcaneventually acquired in January of 2001. CALICA was founded as a(n)______________.

b. joint venture

T/F Acompany should never outsource its distinctive competency.

a. True

Reductionin number of competitors is one of the advantages of _______________________.

c. vertical integration

Oneresult of the recently-approved merger between American Airlines and US Airwaysshould be:

b. lower costs

_________________generally happen between companies of similar sizes.

a. merger

Somewould argue that Samsung’s Galaxy phones were better than Apple’s firstgeneration iPhones because Samsung took the opportunity to quickly learn fromApple’s mistakes in designing and offering its first smartphones. As such,Samsung was following a ____________ strategy.

b. defensive

Themerger between American Airlines and US Airways, combined with earlier mergersbetween Southwest and AirTran and Delta and Northwest Airlines _________ in theindustry overall.

e. increased geographic coverage

Multinational corporations are constantly attempting tobalance forces ______________________.

c. ofefficiency and local responsiveness

Which one of the following is NOT a reason firmsexpand abroad?

d. Togain access to resources and capabilities in the firm's domestic market

Companiesthat move their manufacturing from developed countries (like the U.S.) todeveloping countries (like China) are likely in search of______________________.

b. location-basedcost advantages

_____________________generally work better as a market entry strategy for companies that ownproprietary technology, while ________________ works better for globalexpansion efforts of service and retailing enterprises.

a. Licensing, franchising

Thecivil wars currently raging in Syria and Ukraine would represent_______________ for companies trying to do business in either country.

b. politicalrisk

Accordingto this week's Business Week, ______________ has a serious problem because ofthe possible defection of Howard Stern:

d. Sirius

Lastyear, Apple's released the iPhone 5c which, with stripped down features and alower price was targeted at developing markets in India and China. As such, itwas an example of Apple's (unsuccessful) efforts to:

c. Modifyaspects of Apple's business model or strategy to accommodate local circumstances.

Amongforeign subsidiary strategies, ____________ represents a quicker form of entrythan __________________.

b. acquisition, internal development

Across-border alliance wherein two companies from different countries poolresources to create a separate, jointly-owned company is called_______________.

b. a joint venture

Whena firm faces high pressure for local responsiveness and high pressure for costreduction in its international market(s), it is likely to adopt a(n)_____________.

a. Transnational strategy

OfHofstede’s cultural dimension, the United States scored highest on:

b. individualism

Ifmy company believes that the product we offer will have to be significantlyaltered for each international market we enter in order to make itattractive/useful to potential customers, we would be better off adopting a(n)______________ strategy.

b. multidomestic

Indetermining a mode of entry into an international market, the method thatrequires the least investment, but also offers the least amount of control is__________.

e. franchising

Aperson who is high in ___________ would probably prefer to work on salaryrather than commission.

c. uncertainty avoidance

ManyAmerican companies will locate customer service call centers in India becausethe highly educated, English speaking, and relatively cheap workforce. In doingso, they are seeking:

c. location-based cost advantages

Ofthe four global strategies, _______ is the most difficult to executeeffectively.

b. localization/multi-domestic

TheUnited States has the greatest disparity in pay between top management and thelowest level workers. This would be a particularly difficult situation forGerman managers to deal with because that country scores lowest in Hofstede’s____________________ national culture dimension.

d. power distance

My company has decided to expand internationally andwould like a moderate amount of both control and required investment. The mostappropriate approach we could take to accomplish this would be:

c. exporting

Todetermine the competitive advantage of nations, Porter suggested studying allof the following factors except:

a. competitiveintensity in focal industry

Inattempting to enter the Chinese market, Tressel Tattoos, Inc. quickly realizedthat it could not find an existing host country factory that met its qualityand security needs. Consequently, it was determined that TTI would have tobuild its Chinese production facility from scratch. This approach is expensiveand risky, and is generally referred to as _________________.

c. internal development

LargeMNC’s that operate in numerous international markets often face pressures to beboth cost efficient and responsive. In order to respond simultaneously to theseapparently opposing forces, many of these corporations adopt the ____________strategy.

b. transnational

Accordingto Ghemawat’s Distance Framework, the greatest “distance” between the UnitedStates and the United Kingdom would be_________.

b. geographic

Inorganizing for use of an Global-Standardization strategy, a company wouldlocate its R&D efforts _______, while its production would be located______________.

a. at home; wherever it is cheapest

BastilloConglomerate is a Spanish paella company that is poised to enter the growinginternational market for the seafood-based treat. The fact that competition inSpain’s paella market was incredibly intense suggests:

b. Bastillo will have a competitive advantage over itsinternational competitors from less competitive markets

Inattempting to enter the Chinese market, Tressel Tattoos, Inc. quickly realizedthat it could not afford the time it would take to build a manufacturingfacility and customer base from scratch, but wanted to maintain completecontrol of its operations in China. Consequently, it was determined that TTIwould enter the Chinese market through _________________.

b. acquisitions

Research findings suggest that the _______________level of diversification offers the highest level of performance.

d. related

Inthe Boston Consulting Group (BCG) matrix, Stars will evolve into Cash Cows as aresult of

a. theindustry life cycle

According to the BCG matrix, a “question mark” refersto an organization or subunit that has __________

a. A low relative market share in ahigh-growth market.

Wal-Mart’ssuccessful leveraging of its distribution core competency across the retail,grocery, and pharmaceutical industries represents ____________ corporate-levelstrategy:

d. related diversification

The1+1=3 gains sought from related diversification is generally the attributableto ____________.

f. economiesof scope

Firms involved in ___________________ are primarilyconcerned with financial considerations of cash flow or risk reduction

c. unrelateddiversification

The GE Matrix represents animprovement over the BCG matrix because:

d. It allows a much richer, more detailed definition ofindustry attractiveness.

T/F Singlebusiness firms do not have a corporate-level strategy.

b. False

BecauseWal-Mart only expands into new industries where its superiority in distributionprovides it with a sustainable competitive advantage, Wal-Mart’sdiversification strategy would be classified as:

a. related-linked

Which of the following accurately describes thepreferred strategy for the Boston Consulting Group’s business opportunities?

d. All of the above.

Inresponse to the shift in buyer health consciousness, Coke and Pepsi expandedtheir beverage offerings to capture orange juice, bottled water, and sportsdrinks to prevent the loss of their current customers to these substitutes.This is an example of _________________.

e. related diversification

Themain advantage associated with unrelated diversification is ___________.

b. risk reduction

A company that finds itself over extended in its diversification strategy can turn to ___________ as a means of achieving a proper mix of businesses.

b. restructuring through divestment

For diversification to result in increased shareholder value, it must pass the industry attractiveness, cost-of-entry and _____________ tests.

c. better-off

In the aftermath of a series of domestic abuse scandals involving several of its players, the National Football League's reputation has taken a major hit among its fans and sponsors because of its poor (and some say dishonest) handling of the situation. This is an example of a(n) ___________ cost the NFL has incurred for its perceived wrongdoing.

c. intangible

An ethical approach that says, "When in Rome, do as the Romans do" would be an example of:

a. ethical relativism

The Foreign CorruptPractices Act (FCPA) forbids American businesses from accepting bribesregardless of where they operate in the world. This would be consistent withthe _____________ school of ethical thought.

b. ethical universalism

The Triple Bottom Line includes economic, social, and _____________ metrics.

c. environmental

____________ is the specific combination of socially beneficial activities a company opts to support.

e. A corporate social responsibility strategy

Corporate socialresponsibility includes all the following except:

d. Build a homogeneous workforce

According to Business Week, the greatest risk to the U.S. credit market is ____________.

c. student loans

A(n) ________________is anyone who affects, or is affected by a particular company’s actions.

c. stakeholder

Meeting the needs ofthe present without compromising the ability to meet the needs of tomorrowrequires _______________.

b. sustainable business practices

______________ is the combination of ethical universalism and relativism.

b. Integrative social contract theory

Some version of the Golden Rule can be found in every great religion and every culture on Earth. As such, it would be a prime candidate for _________________.

b. first-order ethical norm

Paying a little extra ‘honorarium’ on the side to alow-level official in a developing country to insure that she will process yourimport paperwork in an appropriate amount of time would likely reflect a(n)_____________.

a. second-order ethical norm

The Foreign CorruptPractices Act (FCPA) forbids American businesses from accepting bribesregardless of where they operate in the world. It does, however allow forgrease payments (payments necessary to get low level officials to do their jobsin a timely manner) in countries where this practice is the norm. Thiscombination would be consistent with the _____________ school of ethicalthought.

c. ethical relativism

In the aftermath of aseries of domestic abuse scandals involving several of its players, theNational Football League has had to launch and pay for an ‘independent’investigation of its own top managers and also institute programs to teach itsplayers that it’s not alright to hit other people once they step OFF of thefootball field. These are examples of a(n) ___________ cost the NFL hasincurred for its perceived wrongdoing.

b. visible

Some version of theGolden Rule can be found in every great religion and every culture on Earth. Assuch, it would be a prime candidate for _________________.

a. inclusion in a code of ethics

In order for a CSRstrategy to offer the possibility of sustainable competitive advantage, it must_________________ and __________________.

c. provide a valuablesocial benefit, satisfy customer needs

Dellhas a program that allows customers to offset the carbon footprint of theirnewly purchased computer by having a tree planted with every computer purchase.This program best reflects Dell’s commitment to

c. environmentalsustainability

In the Enron movie, it isclear that the traders were driven to behave the way they did because of:

c. Heavy pressure to meet or beat performance goals

In the Enron movie wewatched, the resignation of _____________ was a surprise to everyone and wasthe catalyst for the final fall of the company.

b. CEO Jeff Skilling

In the Enron movie, the traders were told that “a good trader finds arbitrage opportunities” with arbitrage being defined as any opportunity that offers extraordinary profits. As such, they were expected to focus primarily on the _____________ responsibilities of Corporate Social Responsibility.

d. economic

Accordingto the traditional view of business ethics, businesses are considered.

b. Closed systems

While the Nashville Convention Center was being built,foot traffic for existing businesses near the construction site was severelycurtailed, resulting in months of fewer customers and lower revenues. Theseconsequences would best be described as _______________.

c. negative externalities

Followinga recent listeria outbreak that likely killed three of its customers andsickened many others, Bluebell Ice cream decided to voluntarily recall all ofits ice cream from store shelves across the country in an effort to ensure thatno further customers would be put at risk. The millions of dollars lost by thecompany as a result of this recall would best be categorized as a(n):

b. visible cost

Finding a way to sell to “bottom of the pyramid”customers, the billions of poor who make up the vast majority of the world’spopulation is an example of “reconceiving markets” in the __________ approachto corporate ethics.

b. Triple bottom line

Under___________, a company giving to the community is a philanthropic andultimately discretionary act, whereas under __________, it becomes integral tohow the company competes.

a. CSR, CSV

________________ is/are considered a company’s organizationalDNA.

d. Culture

Unity of command is a military principle that says thatan individual should answer to only one boss at any given time. The____________ organizational structure purposely violates the unity of commandprinciple.

b. matrix

The goal of ___________________ is to produce no more than 3.4 defects per million iterations of any business process.

c. Six Sigma

All of the followingare examples or characteristics of unhealthy corporate cultures except:

b. Outwardly focused

You have a brilliant ideaat work and tell your boss about it, and she promptly acts on it. This is anexample of:

e. Nonmonetary reward

As discussed the firstnight of class, the predominance of the ________________ organizationalstructure in business (and reflected in the typical structure of businessschools) led to the creation of capstone business classes and eventually thefield of Strategic Management.

d. functional

As a customer, you are more likely to get morecustomized service from a ___________ organization.

b. decentralized

ThisFriday (April 17), Apple will release its new “Apple Watch” with much fanfare.It is certainly only a coincidence that _________ had previously scheduled torelease its new smartphone(s) on the same day.

c. samsung

______________________is management’s most powerful tool for gaining employee commitment to superiorstrategy execution and excellent operating results.

d. A properly designed reward structure

According to mostStrategy scholars, structure must always follow or reflect________________________.

d. strategy

Themost effective way to change an organization’s culture is through:

d. newleadership

__________________ is themost commonly used organizational structure.

b. Functional

As you may remember fromyour Principles of Management class, a Theory X leader is one who believes thatthe average person prefers to be directed, wishes to avoid responsibility, hasrelatively little ambition, and has to be coerced to work. Given those beliefs,a Theory X leader would likely choose a ________________ structure.

b. centralized

Therelated and unrelated diversification associated with the mature stage of theorganizational life cycle usually results in a _________________ structure.

c. multidivisional

Companiesin highly volatile and unpredictable industries are best served by having a(n)___________ culture.

d. adaptive

In watching Enron: TheSmartest Guys in the Room, it is obvious the company’s monetary success inCalifornia was due to its:

e. Unethical culture

In the television show, “Undercover Boss”, CEO’s and other top managers go undercover to work side by side with some of their lowest ranking employees in an effort to gain perspective on how decisions made at the top impact the people who have to implement them. It is an excellent way to gain insight and gather information about how the organization and its people really work and could represent an extreme version of _____________________.

a. MBWA

GoodCookie is a donut company that serves the greater Nashville Metropolitan market. The company has found success by selling the company’s signature donuts to a loyal customer base within roughly 25 miles of LP Field. If you were called upon to organize GoodCookie’s 25 employees, you would best choose the _______________ structure as the company’s most effective option.

a. simple

Twofriends meet every Saturday night to share in a variety of experiences fromgoing to movies, art galleries, football games, or just hanging out. Becausethey are extroverts and need more people to drain energy from, the two alwaysinvite four other friends with the make-up of the group varying depending onthe activity chosen by the pair for that week-end. In Strategy parlance, thiswould best be considered:

e. a network organization

Based on our discussion inclass, it is clear that the __________________ of top managers is an importantconsideration in determining how best to structure an organization.

e. personality

Yourboss’s boss approaches you and says she has a special project that she wouldlike for you to work on exclusively over the next few days. She hasn’t had achance to run this past your boss, but (since she’s his boss) she’s sure therewon’t be a problem. In this scenario, your boss’s boss:

d. Has violated the chain of command

After years of hard work, Felix is finally promotedand given the big corner office he has always coveted. Felix’s new title andoffice space would be considered ______________.

c. nonmonetary rewards

Jane’sproduction department had become increasingly inefficient over the past fewmonths. She approaches you with a goal of achieving fast and substantial gainsin this area. Your best advice to her would be the introduction of ____________within the department.

b. Six Sigma

AnyBig Mac that goes unsold for 10 minutes must be discarded (believe it, or not).This is an example of a ___________ designed to ensure consistent quality forcustomers.

b. Policy

Formonetary incentives to be most effective, the time between employee actions andreceipt of the incentive should be extended as long as possible to buildanticipation and motivation.

b. False