1. QUESTION 1 A _____ simply involves two or more firms collaborating as opposed to creating a new entity together. strategic alliance consortium tactical association cloud system joint venture 4 points QUESTION 2 1. A joint venture: occurs when goods and services offered by two or more organizations under different brands are located very close to each other. is a cooperative arrangement that involves two or more organizations sharing only control of the operations. is a cooperative arrangement between two or more organizations that does not involve the creation of a new entity. refers to a blending of competition and cooperation between two firms. is a cooperative arrangement that involves two or more organizations each contributing to the creation of a new entity. 4 points 1. QUESTION 3 In the late 1990s, Southwest Airlines and United Airlines competed in some but not all markets. United's announcement of plans to move into some of Southwest's other routes caused Southwest to publicly threaten retaliation. United then backed down and Southwest had no reason to attack. The result was better performance for both firms. This is an example of _____. resource-based rivalry mutual forbearance global coopetition focused rivalry hypercompetition 4 points QUESTION 4 1. Ray Noorda, the founder of software firm Novell, coined the term _____. co-location frienemies tactical alliance co-opetition friendly fire 4 points 1. QUESTION 5 A _____ brand is a lower-end brand that a firm introduces to try protect the firm's market share without damaging the firm's existing brands. mass value fightin g defend er niche 4 points QUESTION 6 1. Which of the following is true about disruptive innovations? Most disruptive innovations are overnight sensations. Fast followers can easily imitate strategic resources based on disruptive innovations. Typically, a large group of customers embrace a disruptive innovation as it is launched. Disruptive innovations conflict with, and threaten to replace, traditional approaches to competing within an industry. Executives must have sufficient resources at hand to cope with the initial burst of demand for disruptive innovations. 4 points 1. QUESTION 7 Apple's creation of a user-friendly small computer in the early 1980s helped fuel a reputation for creativity and innovation that persists today. This is an example of a _____ strategy. coopetitive foothold bricolage fighting brand first mover 4 points 1. QUESTION 8 When goods and services offered by two or more organizations under different brands are stationed very close to each other: hypercompetition always takes place. a consortium is formed. co-opetition occurs. co-location occurs. a joint venture is formed. 4 points QUESTION 9 1. Which of the following involves creating goods within a firm's home country and then shipping them to another country? Exporting Greenfield venture Franchising Licensing Strategic alliance 4 points 1. QUESTION 10 A firm using a _____ strategy tries to balance the desire for efficiency with the need to adjust to local preferences within various countries. multidomestic transnational vertical integration disintermediati on global 4 points QUESTION 11 1. Bell Pvt. Ltd., an American glassworks manufacturer, aims to expand its business to France. After considering its alternatives, Bell Pvt. Ltd. worked closely with a French glassworks manufacturer, Blue Stripes Inc. to create a new entity called Blue Stripes and Bell Corporation, by contributing their assets. Both the firms believed that this move would provide them with maximum benefits. Which of the following market entry options had the two firms used? Strategic alliance Partnership Wholly owned subsidiary Partly owned subsidiary Joint venture 4 points 1. QUESTION 12 Which of the following is true of offshoring? It refers to the return of jobs that are sent overseas. It refers to the seizure of a firm's assets in a foreign country by the national government. It inhibits diversification of business risks. It reduces a firm's costs of doing businesses. It refers to the potential for a company's operations in a country to struggle due to differences in language and customer preferences. 4 points QUESTION 13 1. Atlas Pvt. Ltd. is an automobile manufacturing organization based in Detroit. The firm's operations manager avoids storing a large amount of auto parts and other raw materials, by ordering inputs such that they are supplied when required for production. The firm works on improving the flow of goods from warehouses to stores. It also stresses that production should not take place when there is no demand for a particular car model. Which of the following management systems is being implemented by the automobile manufacturer? Total quality management Just-in-case manufacturing Management by objectives Quality function deployment Just-in-time inventory management 4 points QUESTION 14 1. Which of the following would help a firm develop a wholly-owned subsidiary? Licensing Franchising Greenfield venture Special economic zone Exporting 4 points 1. QUESTION 15 Hawthorne Corporation, a leading watch manufacturer based in California, had operations across various countries. When a massive flood broke in California and its surrounding areas, many people lost their lives in the flood. However, this event did not affect Hawthorne Corporation substantially, as it functioned across many nations. This implies that the organization had diversified its _____ by not being completely dependent on its operations in California. political risk cultural risk default risk business risk lifetime risk 4 points QUESTION 16 1. SK Inc. is an Italian firm that manufactures and sells pasta and pasta sauces under the brand name Tomato and Basil. The firm manufactures in products in Italy, and ships them to distributors in the United States and Canada. SK Inc. uses which of the following strategies? Greenfield venture Franchising Licensing Exporting Strategic alliance 4 points QUESTION 17 1. Units categorized as _____ in a BCG matrix are good candidates for divestment. dogs stars cash cows question marks turkeys 4 points 1. QUESTION 18 Market development differs from market penetration in that market development: involves trying to sell existing products within new markets. involves gaining additional share of existing markets using existing products. involves creating new products to serve existing markets. involves the joining of two similarly-sized companies into one company. involves entering a new value chain. 4 points QUESTION 19 1. In a BCG matrix, _____ have bright prospects and thus are good candidates for growth. dogs stars cash cows question marks turkeys 4 points 1. QUESTION 20 As smoking becomes less and less attractive in many countries, lighter firm Zippo has faced a 50 percent decline in sales levels. They have begun to offer lanterns, hand warmers, outdoor tools, cooking accessories, fragrances, and watches in hopes of leveraging their \"rugged, durable, made in America, iconic\" image. Which of the following strategies are Zippo executives using? Forward vertical integration Market penetration Related diversification Market development Backward vertical integration 4 points 1. QUESTION 21 Alpha Computers, a firm that assembles and sells desktop computers, decides to manufacture computer parts such as mother boards and monitors. In this example, Alpha Computers uses which of the following strategies? Backward vertical integration Unrelated diversification Product development Market penetration Related diversification 4 points QUESTION 22 1. _____ is a process that helps executives assess their firms' prospects for success within each of its industries, offers suggestions about what to do within each industry, and provides ideas for how to allocate resources across the industries. Resource-based evaluation The VRIO framework Disintermediation Transaction cost analysis Portfolio planning 4 points 1. QUESTION 23 Which of the following concentration strategies involves selling existing products in new geographic areas? Vertical integration Related diversification Product development Market penetration Market development 4 points 1. QUESTION 24 Sheets Brand Energy Strips experimented with a strategy in 2011. The firm made a deal with the Atlanta branch of Budget Rent a Car to wrap rental cars with an ad. The benefit to customers is that driving one of these mobile billboards saved a lot of money. A renter who would have paid $300 for a four day rental only needed to pay $88 to rent a car featuring the wrap. Sheets benefitted because the cars spread their brand everywhere that they travelled. Sheets used which of the following strategies? Market penetration Product development Related diversification Horizontal integration Vertical integration 4 points QUESTION 25 1. A functional structure differs from a simple structure in that a functional structure: does not require an organizational chart. relies on a formal system of division of labor. promotes informal distribution of tasks amongst employees. tends to have very few rules and regulations. tends to use an informal process of evaluating and rewarding employees' performance. 4 points 1. QUESTION 26 Carlton Group Inc., a firm that manufactures ceramic and porcelain tiles, structures its organization into the following departments: marketing, production, human resources, finance, and customer service. Each employee is grouped into one these departments and each department is headed up by a manager. Carlton Group Inc. is most likely to be using a _____ organizational structure. matrix functional mosaic simple boundaryl ess 4 points 1. QUESTION 27 _____ allow executives to track how well the organization is performing, identify areas of concern, and then take action to address the concerns. Organizational charts Management by objectives Pareto analyses Concentration strategies Organizational control systems 4 points QUESTION 28 1. _____ control is often used heavily in settings where creativity is vital. Behavior al Hierarchi cal Qualitativ e Clan Output 4 points 1. QUESTION 29 If a firm consisting of more than one person is following a _____ organizational structure, tasks tend to be distributed among them in an informal manner rather than each person developing a narrow area of specialization. matrix functional multidivisio nal simple bureaucrati c 4 points 1. QUESTION 30 Which of the following statements about functional structures is accurate? They do not rely on formal systems of division of labor. They tend to create highly-skilled specialists. They allow a firm to implement strategic moves quickly. They tend to increase costs and reduce efficiency. They lead to increased conflicts within departments. 4 points QUESTION 31 1. _____ control relies on shared traditions, expectations, values, and norms to lead people to work toward the good of their organization. Behavior al Hierarchi cal Quantitat ive Clan Output 4 points 1. QUESTION 32 Which of the following organizational structures relies heavily on horizontal relationships? A multidivisional structure A functional structure A mosaic structure A matrix structure A connected structure 4 points 1. QUESTION 33 Which of the following groups is also known as Millenial? Traditionali sts Baby boomers Conservati ves Generation X Generation Y 4 points QUESTION 34 1. Which of the following is the first step of the process of rational decision-making? Establishment and weighing of decision criteria Decision evaluation Generation and evaluation of alternatives Problem identification Selection of the best alternative 4 points 1. QUESTION 35 Which of the following is true about Gen X members? They view face time as an important contribution to a successful work environment. They prize flexibility in their jobs. They were born between 1925 and 1946, and fought in World War II. They like being micro-managed. They are resistant to change. 4 points QUESTION 36 1. In Kohlberg's stage one of moral reasoning: individuals focus on the direct consequences that their actions will have. individuals exhibit a 'what's in it for me' mentality. individuals are conformity driven, and act with the goal of fulfilling social roles. individuals understand the importance of obeying forms of authority to aid in the maintenance of a functional society. laws are viewed as social contracts that promote the greatest good for the greatest number of people. 4 points 1. QUESTION 37 Generation X differs from the baby boomers in that Generation X members: prize flexibility in their jobs. like the feeling that they are being micro-managed. view face time as an important contribution to a successful work environment. makes up the majority of the workforce. are marked by a resistance to change. 4 points QUESTION 38 1. Which of the following is true about the overconfidence bias? It occurs when individuals react to arbitrary or irrelevant numbers when setting financial or other numerical targets. It occurs when information that is more handy is incorrectly assessed to also be more likely. It occurs when good outcomes are attributed to personal characteristics but undesirable outcomes are attributed to external circumstances. It occurs when mistakes seem obvious after they have already occurred. It occurs when individuals have more faith in their abilities to predict an event than logic suggests is actually possible. 4 points 1. QUESTION 39 Which of the following decision biases is displayed by individuals who continue on a failing course of action even after it becomes clear that this may be a poor path to follow? Escalation of commitment Availability bias Fundamental attribution error Judgments about correlation and casualty Anchoring and adjustment bias 4 points 1. QUESTION 40 Which of the following is true about satisficing? It occurs when individuals settle for the first acceptable alternative instead of seeking the best possible decision. It occurs when information that is more handy is incorrectly assessed to also be more likely. It occurs when good outcomes are attributed to personal characteristics but undesirable outcomes are attributed to external circumstances. It occurs when the way information is presented alters the decision an individual will make. It occurs when individuals have more faith in their abilities to predict an event than logic suggests is actually possible