28. As a manager, when faced with ethical crises you A. take the initiative to address the problem. B. focus on issues most relevant to stockholders. C. wait for the other party to make the first move. D. cover up as much as possible. should 29. Proactive measures to prevent organizational ethics problems include all of the following EXCEPT: A. using leaders as role models of ethical behavior. B. issuing statements describing the organization's commitment to certain standards of behavior. C. instituting a reward system which considers outcomes as its primary criterion. D. using the organization's information systems as a control system. 30. Corporate-level strategy addresses two related issues: A. how to compete in a given business; the application of technology. B. what businesses to compete in; how these businesses can achieve synergy. C. how to integrate primary activities; increase shareholder wealth. D. how to improve a firm's infrastructure; how to maintain ethical behavior. 31. In related diversification strategy, management uses common production facilities or similar purchasing procedures to distribute different but related products. This is an example of: A. building on core competencies. B. sharing activities. C. achieving process gains. D. using portfolio analysis. 32. Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input into its manufacturing process. This is an example of A. leveraging core competencies. B. sharing activities. C. vertical integration. D. pooled negotiating power. 6. The form of entry strategy into international operations that offers the lowest level of investment and risk, as well as the lowest level of control would be A. franchising. B. exporting. C. licensing. D. joint venture. 7. A. Joint ventures; strategic alliances entail the creation of a third-party legal entity, whereas 9. B. Licensing agreements; joint ventures C. Strategic alliances; joint ventures D. Franchising agreements; strategic alliances 8. Whereas frequently an important aspect of a low cost leader strategy. A. service innovations; product innovations are often associated with a differentiation strategy, B. product innovations; process innovations C. radical innovations; incremental innovations D. marketing innovations; management innovations revolutionize an industry, while evolutionary applications of fundamental breakthroughs. A. Technological breakthroughs; product-market breakthroughs B. New technologies; new paradigms C. Incremental innovations; radical innovations D. Radical innovations; incremental innovations do not. produce fundamental changes that can transform a company or even enhance existing practices and often represent are A. radical innovations. B. disruptive innovations. C. technology innovations. D. sustaining innovations. 10. Uber, Sidecar are app-based car summoning services that challenge the traditional taxi-cal industry. Such innovations that overturn markets by providing an altogether new approach to meeting customer needs are known as