This document provides a chapter summary and exam questions for BUS 536 Week 11 Final Exam from Strayer University. It includes 20 true/false questions and 29 multiple choice questions covering topics such as strategic alliances, networks, global competitive dynamics, and managing interfirm relationships. An online link is provided to purchase materials with the answers.
This document contains 15 multiple choice questions about corporate level strategy concepts including:
- Types of corporate level decisions regarding portfolio management, scope, and adding value to businesses
- Advantages and disadvantages of integration strategies
- Tools for assessing strategic options like Ansoff's Matrix and portfolio matrices
- Definitions of concepts like related and unrelated diversification, horizontal integration, and Peters and Waterman's idea of "sticking to the knitting"
Financial valuation of alliances and partnershipAlfred Griffioen
What is the financial value of a partnership, alliance or strategic collaboration? What network orchestration roles are there and how do these roles influence the value?
Cis 554 week 10 term paper – strayer newlynnruffin
The document describes a term paper assignment with two sections. The first section requires writing a 10-12 page project plan for managing a telecom project to launch a new service. It provides details on what must be included in the project plan such as selecting a framework, evaluating agile methodology, developing a work breakdown structure (WBS), assigning resources, generating estimates, monitoring/control processes, a quality management plan, and risk management practices. The second section requires creating a Gantt chart in Microsoft Project to display the project schedule and dependencies based on the estimates generated in the project plan.
This document contains a quiz on analyzing financial statements. It includes 36 true-false statements and 1 multiple choice question testing concepts like horizontal analysis, vertical analysis, ratio analysis, liquidity ratios, profitability ratios, and analyzing trends, financial relationships, and a company's position relative to its industry. The document provides answers and identifies which learning objectives, Bloom's taxonomy level, and accounting standards are assessed by each question.
This document provides a quiz for an economics course on working capital management and international trade finance. It contains multiple choice and true/false questions covering topics like operating cycles, net working capital, cash management strategies for multinational enterprises, and financial instruments used in international trade like letters of credit. The quiz aims to test understanding of concepts related to managing current assets and liabilities in global business.
This document outlines an assignment for ACC 557 that requires analyzing and comparing the financial statements of two competing companies. Students must:
1) Analyze each company's history, products, customers, suppliers and leadership.
2) Calculate and analyze three profitability ratios for each company and recommend improvements.
3) Summarize news events impacting the companies and how these influence investors and creditors.
4) Analyze income statements over two years and suggest how the weaker company can improve.
5) Conduct a vertical analysis of each balance sheet, interpret results, and suggest improvements.
The paper must be 6-8 pages and use at least four academic resources, with the appropriate formatting and cover page.
This document provides a quiz on job discrimination that includes multiple choice, true/false, and short answer questions. It covers topics like types of discrimination, relevant court cases, affirmative action, comparable worth, and sexual harassment. The questions assess understanding of statistical and attitudinal evidence of discrimination, moral and legal aspects of these issues, and how to respond if harassment occurs.
Cis 501 midterm and final exam – strayer newlizabonilla
This document provides a chapter from a CIS 501 exam study guide covering decision support systems and decision making. It includes 20 true/false questions and 40 multiple choice questions testing knowledge of key concepts from Chapter 1 such as the components and characteristics of DSS, classifications of decisions, and decision making processes. It also provides 50 essay questions testing understanding of topics like the model base management system, benefits of DSS, and comparisons of different DSS and decision types.
This document contains 15 multiple choice questions about corporate level strategy concepts including:
- Types of corporate level decisions regarding portfolio management, scope, and adding value to businesses
- Advantages and disadvantages of integration strategies
- Tools for assessing strategic options like Ansoff's Matrix and portfolio matrices
- Definitions of concepts like related and unrelated diversification, horizontal integration, and Peters and Waterman's idea of "sticking to the knitting"
Financial valuation of alliances and partnershipAlfred Griffioen
What is the financial value of a partnership, alliance or strategic collaboration? What network orchestration roles are there and how do these roles influence the value?
Cis 554 week 10 term paper – strayer newlynnruffin
The document describes a term paper assignment with two sections. The first section requires writing a 10-12 page project plan for managing a telecom project to launch a new service. It provides details on what must be included in the project plan such as selecting a framework, evaluating agile methodology, developing a work breakdown structure (WBS), assigning resources, generating estimates, monitoring/control processes, a quality management plan, and risk management practices. The second section requires creating a Gantt chart in Microsoft Project to display the project schedule and dependencies based on the estimates generated in the project plan.
This document contains a quiz on analyzing financial statements. It includes 36 true-false statements and 1 multiple choice question testing concepts like horizontal analysis, vertical analysis, ratio analysis, liquidity ratios, profitability ratios, and analyzing trends, financial relationships, and a company's position relative to its industry. The document provides answers and identifies which learning objectives, Bloom's taxonomy level, and accounting standards are assessed by each question.
This document provides a quiz for an economics course on working capital management and international trade finance. It contains multiple choice and true/false questions covering topics like operating cycles, net working capital, cash management strategies for multinational enterprises, and financial instruments used in international trade like letters of credit. The quiz aims to test understanding of concepts related to managing current assets and liabilities in global business.
This document outlines an assignment for ACC 557 that requires analyzing and comparing the financial statements of two competing companies. Students must:
1) Analyze each company's history, products, customers, suppliers and leadership.
2) Calculate and analyze three profitability ratios for each company and recommend improvements.
3) Summarize news events impacting the companies and how these influence investors and creditors.
4) Analyze income statements over two years and suggest how the weaker company can improve.
5) Conduct a vertical analysis of each balance sheet, interpret results, and suggest improvements.
The paper must be 6-8 pages and use at least four academic resources, with the appropriate formatting and cover page.
This document provides a quiz on job discrimination that includes multiple choice, true/false, and short answer questions. It covers topics like types of discrimination, relevant court cases, affirmative action, comparable worth, and sexual harassment. The questions assess understanding of statistical and attitudinal evidence of discrimination, moral and legal aspects of these issues, and how to respond if harassment occurs.
Cis 501 midterm and final exam – strayer newlizabonilla
This document provides a chapter from a CIS 501 exam study guide covering decision support systems and decision making. It includes 20 true/false questions and 40 multiple choice questions testing knowledge of key concepts from Chapter 1 such as the components and characteristics of DSS, classifications of decisions, and decision making processes. It also provides 50 essay questions testing understanding of topics like the model base management system, benefits of DSS, and comparisons of different DSS and decision types.
Cis 513 week 11 final exam – strayer newlizabonilla
This document provides information about purchasing exam materials for CIS 513 Week 11 at Strayer University. It includes chapters covering wireless personal area networks (WPANs), high-rate WPANs, low-speed wireless local area networks (WLANs), and wireless LAN security. True/false, multiple choice, completion, short answer, and matching questions are provided to test understanding of the content. A link is given to instantly download A+ graded exam materials.
This document provides a quiz covering chapters 15 and 16 on taxation of corporate income and taxes on consumption and sales. It includes 20 true/false questions and 20 multiple choice questions testing understanding of key concepts such as the corporate tax base, effects of the corporate income tax, differences between consumption and income taxes, and value-added taxes.
This document provides the details for Assignment 4 for the ACC 571 course. The assignment requires students to research an organization that was a victim of asset misappropriation. Students must then write a 5-6 page paper evaluating the type of asset misappropriation, factors that contributed to it, the effectiveness of legal mechanisms for recovery, management's responsibility to share information, an assessment of SAS 99 risk factors, an evaluation of the organization's corporate governance plan and suggestions for improvement, and a recommended fraud prevention plan along with potential consequences. Students must use at least 4 quality resources and follow APA formatting guidelines. The assignment addresses learning outcomes related to fraud concepts, crime causation theories, human factors in corruption, using technology for research,
1. The document discusses a 10-12 page assignment analyzing an accounting information system failure. Students are asked to research a real-life failure and identify contributing factors, assess management responsibility, evaluate where the failure occurred, propose best practices, and outline principles to avoid based on provided resources.
2. Students must cite at least 3 quality sources and follow formatting guidelines. The assignment addresses learning outcomes related to analyzing accounting information systems, the systems development life cycle, and writing about accounting information systems issues.
This document contains a quiz for FIN 350 on finance company operations and mutual fund operations. The quiz contains 44 multiple choice questions covering topics such as sources of finance company funds, types of mutual funds (e.g. open-end, closed-end), money market funds, and regulations governing mutual funds. It also provides a link to purchase graded course materials to help answer the quiz questions.
Bus 335 staffing organizations week 11 quizlizabonilla
This document contains a quiz for BUS 335 Week 11 that covers various topics related to employee turnover. There are 85 multiple choice questions testing understanding of concepts like the types of employee turnover (voluntary, involuntary, downsizing), predictors of turnover intentions, costs of turnover, performance management, and legal considerations around termination. The quiz covers the full employee life cycle from recruitment through separation.
Cis 555 week 10 term paper – strayer newlynnruffin
1. The document outlines a term paper assignment for a course at Strayer University. Students are asked to propose reengineering the university's current course enrollment process, which currently takes place online.
2. Students must gather requirements from stakeholders, analyze the current "as-is" process, propose a new "to-be" process, and create models and diagrams to illustrate the proposed changes.
3. The paper must be 10-15 pages long and include an analysis of the current process, proposed techniques for gathering requirements, models of the proposed changes, a risk analysis, and diagrams of the current and proposed processes.
Cis 560 week 10 term paper – strayer newlynnruffin
This document provides instructions for a term paper assignment on addressing the human element in security and access control. Students are asked to propose techniques for mitigating threats from human nature, evaluate the consequences of poor hiring decisions and steps to prevent them, examine what an organization can learn from observing personnel policies, and propose best practices for handling human nature and organizational behavior. The paper must be 8-10 pages long and cite at least 3 quality resources.
This document contains a chapter from an economics textbook on social security and healthcare. It includes 20 true/false questions and 20 multiple choice questions testing knowledge of these topics. Key points covered include how social security is financed through payroll taxes, how Medicare and Medicaid provide government-funded healthcare, and the impact of third-party payers on healthcare costs and utilization.
This document provides a quiz for ACC 557 Week 11 that includes true-false statements and multiple choice questions related to analyzing financial statements. It tests understanding of key concepts like horizontal analysis, vertical analysis, ratio analysis, liquidity, profitability, and how different stakeholders analyze financial statements. The quiz provides answers for each question along with learning objectives and difficulty levels.
This document provides an overview of Chapter 18 on financial statement analysis from an ACC 206 accounting principles course. It includes study objectives, true-false questions, multiple choice questions, and financial information to analyze regarding horizontal analysis, vertical analysis, and ratio analysis. The key topics covered are the tools of financial statement analysis, comparative analysis techniques, and calculating and interpreting various liquidity, profitability, and solvency ratios.
The document is a quiz for a course on supply chain management. It contains multiple choice and true/false questions about topics like investment recovery, hazardous waste management, inventory management, supplier relationships, and measuring supply chain performance. Some key topics covered are the responsibilities for disposal of scrap and obsolete materials, the total costs of hazardous waste, using ERP systems to sell surplus across locations, and benchmarking supply performance against industry standards.
Bus 325 global human resource management week 10 quizlynnruffin
This document provides a quiz for BUS 325 Week 10 that covers Chapter 9 and 10 of the course material. It includes 28 true/false and multiple choice questions testing understanding of key concepts from the chapters, which address international industrial relations, the global institutional context, and challenges faced by multinational enterprises operating across borders such as differences in union structures, government regulations, and cultural norms between home and host countries.
This document outlines a term paper assignment for a CIS 518 course at Strayer University. The assignment involves a 10-15 page research report and a 10-15 slide PowerPoint presentation. For the research report, students are asked to imagine they work as a senior software engineer recommending a mobile platform for developing healthcare apps. They must identify trends, compare Android, iOS and Microsoft platforms, recommend one, propose an agile development approach to launch in 90 days, and include a testing plan. The PowerPoint presentation summarizes the research report and creates speaking notes to present to senior executives justifying the strategy. Both parts of the assignment must follow specific formatting guidelines.
This document outlines a term paper assignment on virtualization for a CIS 512 course. It consists of two sections: a 6-8 page written report comparing the top 3 virtualization software brands, examining their pros and cons, and making a recommendation; and a 12-16 slide PowerPoint presentation summarizing the key concepts and findings from the report. The paper and presentation must analyze whether virtualization would be a worthwhile investment that could save the chosen organization money.
This document contains 100 multiple choice questions from a BUS 230 Week 10 Quiz on global supply management and legal/ethical issues in supply chain management. The questions cover topics like global sourcing structures, foreign trade zones, cultural considerations in international business, international sales law (CISG), countertrade, and the roles/responsibilities of supply chain managers regarding product liability, contracts, corporate social responsibility, and dispute resolution.
Final Exam QuestionsQuestion 1Using intermediaries or go-betweChereCheek752
Final Exam Questions
Question 1
Using intermediaries or go-between firms to provide the knowledge and contacts necessary to sell overseas is usually associated with
a.
Direct exporting.
b.
Licensing.
c.
Franchising.
d.
Indirect exporting.
Question 2
What dictates the choice of a multinational entry-mode strategy?
a.
Strategic competition
b.
Strategic reason to be in the market
c.
Companies want to achieve economies of scale
d.
Companies want to share risks and costs of developing technology
Question 3
The global solution to the global-local dilemma refers to
a.
Conducting business similarly around the world.
b.
Responding to differences in the global markets in which a company operates.
c.
Customization of products to regional but not country differences.
d.
None of the above
Question 4
Foreign direct investment
a.
Is an entry-mode strategy.
b.
Means that a multinational owns, in part or in whole, an operation in another country.
c.
Symbolizes the highest rate of internationalization.
d.
All of the above
Question 5
Which of the following statements regarding exporting is FALSE?
a.
Exporting is the easiest of entry-mode strategies.
b.
Because it is the easiest form of going international, exports are not as important to the US economy.
c.
Export can be indirect where companies rely on intermediaries to sell overseas.
d.
Export can be of the passive form where overseas orders are treated like domestic orders
Question 6
A __________ helps link the organization horizontally.
a.
Centralized operations
b.
Coordination system
c.
Control system
d.
Cultural system
Question 7
All of the following statements are true about the functional structure EXCEPT
a.
In the functional structure, departments perform separate business functions such as marketing or manufacturing.
b.
In small organizations, the functional structure is the least efficient of all structures.
c.
The functional structure is the simplest of organizations.
d.
Because functional subunits are separated from each other, coordination among the units can be difficult.
Question 8
_________ mean/means that management locates subsidiaries anywhere in the world where they can benefit the company.
a.
Dispersed subunits
b.
Specialized operations
c.
Interdependent relationships
d.
None of the above
Question 9
The type of vertical control mechanism most often associated with a profit center is
a.
Bureaucratic.
b.
Cultural.
c.
Output.
d.
Decision making.
uestion 10
Equity in a strategic alliance implies
a.
Labor skills.
b.
Ownership.
c.
Domination.
d.
None of the above
Question 11
There are several issues to consider in picking a partner for a strategic alliance. One of these is
a.
Go for the biggest partner possible because they have the most assets.
b.
Seek strategic complementarity.
c.
Make sure your partner will be dependent on you and not vice versa.
d.
All of the above
Question 12
If strategic alliance partners have different technologies or k ...
TextAuthorsPublisherEffective Small Business Ma.docxmattinsonjanel
Text:
Authors:
Publisher:
Effective Small Business Management: An Entrepreneurial Approach
9th Edition, 2009
ISBN-13: 9780136152705
Norman M. Scarborough, Douglas L. Wilson, and Thomas W. Zimmerer
Pearson Education
925 N. Spurgeon Street, Santa Ana, CA 92701 Phone: 714-547-9625 Fax: 714-547-5777
12/14
BAM 418
Small Business Management
F
in
a
l
E
x
a
m
in
a
ti
o
n
Final Examination
1
BAM 418 - Small Business Management
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1) The nation is rapidly moving from:
a. industrial to knowledge-based
b. industrial to capitalism
c. capitalism to industrial
d. none of the above
2) Entrepreneurs start businesses for a number of reasons including:
a. the opportunity to get rich much quicker than if they work for a large company
b. having to deal with less government regulation than as an executive of a large
company
c. an opportunity to make a difference
d. a much lower risk of career failure due to layoff or acquisition than working for a
large company
3) Surveys show that owners of small businesses believe that:
a. they work harder on their own than if they worked for someone else
b. they earn less than if they worked for someone else
c. venture capital is relatively easy to raise
d. they are less satisfied than if they worked for someone else
4) Which of the following is true about home-based businesses?
a. The average home-based business earns over $50,000 a year.
b. The growth of technology has significantly slowed the growth of home-based busi-
nesses.
c. Over 2/3 of all home-based businesses are owned by minority males.
d. Home-based businesses tend to focus on blue-collar, lower skill industries.
5) “Copreneurs” are marked by:
a. a decline in the number of businesses
b. their similarity to the traditional mom and pop operation
c. a greater success at raising venture capital than sole proprietorship-type busi-
nesses
d. a division of labor by expertise
6) The location of the business is especially important for what type of start-up business?
a. manufacturing
b. service
c. retail
d. computer-based service
2
Final Examination
BAM 418 - Small Business Management
7) The key ingredient-the crucial element-to avoiding the failure of a new business is:
a. the business plan
b. differentiating the business and product from the competition
c. technical expertise regarding the product
d. knowing the business
8) “Copreneurs” are:
a. personality traits of entrepreneurs
b. business magazines targeted towards entrepreneurs
c. entrepreneurial couples who work together as co-owners of their business
...
Quiz 4QUIZ strategic management concepts &cases 11th edition by Fred R. David...حمد بوجرادة
The document discusses key concepts in strategic management. It provides definitions of strategic management and strategic planning, noting that strategic management refers to strategy formulation, implementation, and evaluation, while strategic planning refers specifically to strategy formulation. It also lists important aspects of strategic management like establishing objectives, devising policies, allocating resources, and periodically conducting strategic meetings away from the work site to encourage creativity and candor among participants.
how a strategic partnership form , what is partnership and what is alliences , the collaborative advantege , kentres 8 criterias for succesfull partnership etc...!!!
Quiz 1QUIZ strategic management concepts &cases 11th edition by Fred حمد بوجرادة
Strategic management involves analyzing external and internal factors to formulate strategies, implement plans, and evaluate performance. It is an objective, logical process for making major decisions under uncertainty. Effective strategic management requires understanding competitors and markets, allocating resources, and gaining commitment through disciplined implementation. It provides benefits like improved performance through a cooperative approach to opportunities and problems.
QUIZ strategic management concepts &cases 11th edition by Fred R. David ChapQ...حمد بوجرادة
Strategic management involves analyzing external and internal factors to formulate strategies, implement plans, and evaluate performance. It is an objective, logical process for making major decisions under uncertainty. Effective strategic management requires understanding competitors and markets, allocating resources, and gaining commitment through disciplined implementation. It provides benefits like improved performance through a cooperative approach to opportunities and problems.
Cis 513 week 11 final exam – strayer newlizabonilla
This document provides information about purchasing exam materials for CIS 513 Week 11 at Strayer University. It includes chapters covering wireless personal area networks (WPANs), high-rate WPANs, low-speed wireless local area networks (WLANs), and wireless LAN security. True/false, multiple choice, completion, short answer, and matching questions are provided to test understanding of the content. A link is given to instantly download A+ graded exam materials.
This document provides a quiz covering chapters 15 and 16 on taxation of corporate income and taxes on consumption and sales. It includes 20 true/false questions and 20 multiple choice questions testing understanding of key concepts such as the corporate tax base, effects of the corporate income tax, differences between consumption and income taxes, and value-added taxes.
This document provides the details for Assignment 4 for the ACC 571 course. The assignment requires students to research an organization that was a victim of asset misappropriation. Students must then write a 5-6 page paper evaluating the type of asset misappropriation, factors that contributed to it, the effectiveness of legal mechanisms for recovery, management's responsibility to share information, an assessment of SAS 99 risk factors, an evaluation of the organization's corporate governance plan and suggestions for improvement, and a recommended fraud prevention plan along with potential consequences. Students must use at least 4 quality resources and follow APA formatting guidelines. The assignment addresses learning outcomes related to fraud concepts, crime causation theories, human factors in corruption, using technology for research,
1. The document discusses a 10-12 page assignment analyzing an accounting information system failure. Students are asked to research a real-life failure and identify contributing factors, assess management responsibility, evaluate where the failure occurred, propose best practices, and outline principles to avoid based on provided resources.
2. Students must cite at least 3 quality sources and follow formatting guidelines. The assignment addresses learning outcomes related to analyzing accounting information systems, the systems development life cycle, and writing about accounting information systems issues.
This document contains a quiz for FIN 350 on finance company operations and mutual fund operations. The quiz contains 44 multiple choice questions covering topics such as sources of finance company funds, types of mutual funds (e.g. open-end, closed-end), money market funds, and regulations governing mutual funds. It also provides a link to purchase graded course materials to help answer the quiz questions.
Bus 335 staffing organizations week 11 quizlizabonilla
This document contains a quiz for BUS 335 Week 11 that covers various topics related to employee turnover. There are 85 multiple choice questions testing understanding of concepts like the types of employee turnover (voluntary, involuntary, downsizing), predictors of turnover intentions, costs of turnover, performance management, and legal considerations around termination. The quiz covers the full employee life cycle from recruitment through separation.
Cis 555 week 10 term paper – strayer newlynnruffin
1. The document outlines a term paper assignment for a course at Strayer University. Students are asked to propose reengineering the university's current course enrollment process, which currently takes place online.
2. Students must gather requirements from stakeholders, analyze the current "as-is" process, propose a new "to-be" process, and create models and diagrams to illustrate the proposed changes.
3. The paper must be 10-15 pages long and include an analysis of the current process, proposed techniques for gathering requirements, models of the proposed changes, a risk analysis, and diagrams of the current and proposed processes.
Cis 560 week 10 term paper – strayer newlynnruffin
This document provides instructions for a term paper assignment on addressing the human element in security and access control. Students are asked to propose techniques for mitigating threats from human nature, evaluate the consequences of poor hiring decisions and steps to prevent them, examine what an organization can learn from observing personnel policies, and propose best practices for handling human nature and organizational behavior. The paper must be 8-10 pages long and cite at least 3 quality resources.
This document contains a chapter from an economics textbook on social security and healthcare. It includes 20 true/false questions and 20 multiple choice questions testing knowledge of these topics. Key points covered include how social security is financed through payroll taxes, how Medicare and Medicaid provide government-funded healthcare, and the impact of third-party payers on healthcare costs and utilization.
This document provides a quiz for ACC 557 Week 11 that includes true-false statements and multiple choice questions related to analyzing financial statements. It tests understanding of key concepts like horizontal analysis, vertical analysis, ratio analysis, liquidity, profitability, and how different stakeholders analyze financial statements. The quiz provides answers for each question along with learning objectives and difficulty levels.
This document provides an overview of Chapter 18 on financial statement analysis from an ACC 206 accounting principles course. It includes study objectives, true-false questions, multiple choice questions, and financial information to analyze regarding horizontal analysis, vertical analysis, and ratio analysis. The key topics covered are the tools of financial statement analysis, comparative analysis techniques, and calculating and interpreting various liquidity, profitability, and solvency ratios.
The document is a quiz for a course on supply chain management. It contains multiple choice and true/false questions about topics like investment recovery, hazardous waste management, inventory management, supplier relationships, and measuring supply chain performance. Some key topics covered are the responsibilities for disposal of scrap and obsolete materials, the total costs of hazardous waste, using ERP systems to sell surplus across locations, and benchmarking supply performance against industry standards.
Bus 325 global human resource management week 10 quizlynnruffin
This document provides a quiz for BUS 325 Week 10 that covers Chapter 9 and 10 of the course material. It includes 28 true/false and multiple choice questions testing understanding of key concepts from the chapters, which address international industrial relations, the global institutional context, and challenges faced by multinational enterprises operating across borders such as differences in union structures, government regulations, and cultural norms between home and host countries.
This document outlines a term paper assignment for a CIS 518 course at Strayer University. The assignment involves a 10-15 page research report and a 10-15 slide PowerPoint presentation. For the research report, students are asked to imagine they work as a senior software engineer recommending a mobile platform for developing healthcare apps. They must identify trends, compare Android, iOS and Microsoft platforms, recommend one, propose an agile development approach to launch in 90 days, and include a testing plan. The PowerPoint presentation summarizes the research report and creates speaking notes to present to senior executives justifying the strategy. Both parts of the assignment must follow specific formatting guidelines.
This document outlines a term paper assignment on virtualization for a CIS 512 course. It consists of two sections: a 6-8 page written report comparing the top 3 virtualization software brands, examining their pros and cons, and making a recommendation; and a 12-16 slide PowerPoint presentation summarizing the key concepts and findings from the report. The paper and presentation must analyze whether virtualization would be a worthwhile investment that could save the chosen organization money.
This document contains 100 multiple choice questions from a BUS 230 Week 10 Quiz on global supply management and legal/ethical issues in supply chain management. The questions cover topics like global sourcing structures, foreign trade zones, cultural considerations in international business, international sales law (CISG), countertrade, and the roles/responsibilities of supply chain managers regarding product liability, contracts, corporate social responsibility, and dispute resolution.
Final Exam QuestionsQuestion 1Using intermediaries or go-betweChereCheek752
Final Exam Questions
Question 1
Using intermediaries or go-between firms to provide the knowledge and contacts necessary to sell overseas is usually associated with
a.
Direct exporting.
b.
Licensing.
c.
Franchising.
d.
Indirect exporting.
Question 2
What dictates the choice of a multinational entry-mode strategy?
a.
Strategic competition
b.
Strategic reason to be in the market
c.
Companies want to achieve economies of scale
d.
Companies want to share risks and costs of developing technology
Question 3
The global solution to the global-local dilemma refers to
a.
Conducting business similarly around the world.
b.
Responding to differences in the global markets in which a company operates.
c.
Customization of products to regional but not country differences.
d.
None of the above
Question 4
Foreign direct investment
a.
Is an entry-mode strategy.
b.
Means that a multinational owns, in part or in whole, an operation in another country.
c.
Symbolizes the highest rate of internationalization.
d.
All of the above
Question 5
Which of the following statements regarding exporting is FALSE?
a.
Exporting is the easiest of entry-mode strategies.
b.
Because it is the easiest form of going international, exports are not as important to the US economy.
c.
Export can be indirect where companies rely on intermediaries to sell overseas.
d.
Export can be of the passive form where overseas orders are treated like domestic orders
Question 6
A __________ helps link the organization horizontally.
a.
Centralized operations
b.
Coordination system
c.
Control system
d.
Cultural system
Question 7
All of the following statements are true about the functional structure EXCEPT
a.
In the functional structure, departments perform separate business functions such as marketing or manufacturing.
b.
In small organizations, the functional structure is the least efficient of all structures.
c.
The functional structure is the simplest of organizations.
d.
Because functional subunits are separated from each other, coordination among the units can be difficult.
Question 8
_________ mean/means that management locates subsidiaries anywhere in the world where they can benefit the company.
a.
Dispersed subunits
b.
Specialized operations
c.
Interdependent relationships
d.
None of the above
Question 9
The type of vertical control mechanism most often associated with a profit center is
a.
Bureaucratic.
b.
Cultural.
c.
Output.
d.
Decision making.
uestion 10
Equity in a strategic alliance implies
a.
Labor skills.
b.
Ownership.
c.
Domination.
d.
None of the above
Question 11
There are several issues to consider in picking a partner for a strategic alliance. One of these is
a.
Go for the biggest partner possible because they have the most assets.
b.
Seek strategic complementarity.
c.
Make sure your partner will be dependent on you and not vice versa.
d.
All of the above
Question 12
If strategic alliance partners have different technologies or k ...
TextAuthorsPublisherEffective Small Business Ma.docxmattinsonjanel
Text:
Authors:
Publisher:
Effective Small Business Management: An Entrepreneurial Approach
9th Edition, 2009
ISBN-13: 9780136152705
Norman M. Scarborough, Douglas L. Wilson, and Thomas W. Zimmerer
Pearson Education
925 N. Spurgeon Street, Santa Ana, CA 92701 Phone: 714-547-9625 Fax: 714-547-5777
12/14
BAM 418
Small Business Management
F
in
a
l
E
x
a
m
in
a
ti
o
n
Final Examination
1
BAM 418 - Small Business Management
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1) The nation is rapidly moving from:
a. industrial to knowledge-based
b. industrial to capitalism
c. capitalism to industrial
d. none of the above
2) Entrepreneurs start businesses for a number of reasons including:
a. the opportunity to get rich much quicker than if they work for a large company
b. having to deal with less government regulation than as an executive of a large
company
c. an opportunity to make a difference
d. a much lower risk of career failure due to layoff or acquisition than working for a
large company
3) Surveys show that owners of small businesses believe that:
a. they work harder on their own than if they worked for someone else
b. they earn less than if they worked for someone else
c. venture capital is relatively easy to raise
d. they are less satisfied than if they worked for someone else
4) Which of the following is true about home-based businesses?
a. The average home-based business earns over $50,000 a year.
b. The growth of technology has significantly slowed the growth of home-based busi-
nesses.
c. Over 2/3 of all home-based businesses are owned by minority males.
d. Home-based businesses tend to focus on blue-collar, lower skill industries.
5) “Copreneurs” are marked by:
a. a decline in the number of businesses
b. their similarity to the traditional mom and pop operation
c. a greater success at raising venture capital than sole proprietorship-type busi-
nesses
d. a division of labor by expertise
6) The location of the business is especially important for what type of start-up business?
a. manufacturing
b. service
c. retail
d. computer-based service
2
Final Examination
BAM 418 - Small Business Management
7) The key ingredient-the crucial element-to avoiding the failure of a new business is:
a. the business plan
b. differentiating the business and product from the competition
c. technical expertise regarding the product
d. knowing the business
8) “Copreneurs” are:
a. personality traits of entrepreneurs
b. business magazines targeted towards entrepreneurs
c. entrepreneurial couples who work together as co-owners of their business
...
Quiz 4QUIZ strategic management concepts &cases 11th edition by Fred R. David...حمد بوجرادة
The document discusses key concepts in strategic management. It provides definitions of strategic management and strategic planning, noting that strategic management refers to strategy formulation, implementation, and evaluation, while strategic planning refers specifically to strategy formulation. It also lists important aspects of strategic management like establishing objectives, devising policies, allocating resources, and periodically conducting strategic meetings away from the work site to encourage creativity and candor among participants.
how a strategic partnership form , what is partnership and what is alliences , the collaborative advantege , kentres 8 criterias for succesfull partnership etc...!!!
Quiz 1QUIZ strategic management concepts &cases 11th edition by Fred حمد بوجرادة
Strategic management involves analyzing external and internal factors to formulate strategies, implement plans, and evaluate performance. It is an objective, logical process for making major decisions under uncertainty. Effective strategic management requires understanding competitors and markets, allocating resources, and gaining commitment through disciplined implementation. It provides benefits like improved performance through a cooperative approach to opportunities and problems.
QUIZ strategic management concepts &cases 11th edition by Fred R. David ChapQ...حمد بوجرادة
Strategic management involves analyzing external and internal factors to formulate strategies, implement plans, and evaluate performance. It is an objective, logical process for making major decisions under uncertainty. Effective strategic management requires understanding competitors and markets, allocating resources, and gaining commitment through disciplined implementation. It provides benefits like improved performance through a cooperative approach to opportunities and problems.
Liberty university busi 313 quiz 4 complete solutions correct answers slideshareSong Love
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Introduction to Strategic alliance & it's meaningdiyaparikh152
This document provides information about a strategic alliance formed between various group members. It lists the names and roll numbers of group members. It then defines strategic alliance and provides characteristics, reasons, types, tasks in startup phase, benefits, risks, and measures of success for strategic alliances. Strategic alliances allow firms to enter new markets, reduce costs, and develop technology through cooperation rather than competition. Success requires clarity, commitment, communication and shared values between alliance partners.
Chapter 9 Creating and Maintaining AlliancesChapter 9Creati.docxtiffanyd4
Chapter 9: Creating and Maintaining Alliances
Chapter 9
Creating and Maintaining Alliances
This chapter meshes well with Chapter 8 “Competing across Borders.” Strategic alliances are not limited to domestic firms. Alliances among firms of all nations are thriving, with developed nations and developing nations (such as China) each initiating the relationships. The chapter introduces the various kinds of alliances. In the case studies, it highlights that effective strategic management is needed for alliance success. Although some alliances have long term success, others collapse after initial success, and others are never successful. Nevertheless, the emergence of the world marketplace requires that companies establish networks of alliances in order to compete successfully.
Focusing on Strategy: All Roads Lead to Joint Ventures in China, the Mother of Emerging Markets
This case gives an overview of the high level of alliances being formed between Chinese and non-Chinese firms. Moreover, the Chinese are initiating many of these deals. China is expected to become the world’s largest market in 20 to 30 years.
Students in this class who are in their late teens and early 20s will face a radically different world marketplace over their careers than students who graduated 10 or 20 years ago. These students’ employers will be facing increasing direct competition from Chinese (and other foreign) firms. Moreover, the students will also be competing with Chinese (and other foreign) professionals on an individual basis as more and more professional jobs are outsourced overseas. Consequently, both firms and individuals need world-class competitive skills in order to succeed in the coming decades.
· Strategic alliance: a relationship between firms in which the partners agree to cooperate in ways that provide benefits to each firm
· Cooperative strategy: an action plan to form cooperative relationships with other firms
· Purpose of cooperative strategy is to develop a competitive advantage.
· Types of strategic alliances:
· Equity alliance: each partner owns a percentage of the equity in a venture that the firms have jointly formed
· Joint venture: a separate business formed by an equity alliance
· Nonequity alliance: a contractual relationship between two or more firms in which each partner agrees to share some of its resources or capabilities
REASONS FOR DEVELOPING STRATEGIC ALLIANCES
· Reasons for entering strategic alliances
· Entering restricted markets
· overcome trade barriers
· avoid major tariffs
· Facilitating new product development
· R&D cost-sharing
· integration of resources
· sharing risks of new product development
· Sharing uncertainty of entering new international markets
· market demand
· government actions
· competitor reactions
· Gaining access to complementary resources: resources that each partner brings to the partnership that when combined allow for new resources or capabilities
· Gaining market powe.
This document provides answers to 30 multiple choice questions about business concepts and strategies. The questions cover topics such as communication, source credibility, logical reasoning, leadership, entrepreneurship, stakeholders, SWOT analysis, accounting, technology, global trade, job specialization, economics, human resource management, business analysis, strategic planning, and tactical planning.
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This document provides answers to 29 multiple choice questions about business concepts and practices. The questions cover topics such as communication, source credibility, logical reasoning, leadership, entrepreneurship, accounting, human resources, and strategic planning. The answers are intended to assess understanding of fundamental business principles and how businesses operate.
This document provides answers to 29 multiple choice questions about business concepts and practices. The questions cover topics such as communication, source credibility, logical reasoning, leadership, entrepreneurship, accounting, human resources, and strategic planning. The answers are intended to assess understanding of fundamental business principles and how businesses operate.
(New) mgt 521 mgt521 final exam entire answers with questions correct 100%twiter343r
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This document provides answers to 30 multiple choice questions about business concepts and strategies. The questions cover topics such as communication, source credibility, logical reasoning, leadership, entrepreneurship, stakeholders, SWOT analysis, accounting, technology, global trade, job specialization, economics, human resource management, business analysis, strategic planning, and tactical planning.
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Building a Raspberry Pi Robot with Dot NET 8, Blazor and SignalRPeter Gallagher
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I also show how you can use a Unity app on an Meta Quest 3 to control the arm VR too.
You can find the GitHub repo and workshop instructions here;
https://bit.ly/dotnetrobotgithub
1. BUS 536 Week 11 Final Exam – Strayer New
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BUS536W11E.htm
Chapter 7 Through 12
CHAPTER 7 – MAKING STRATEGIC ALLIANCEE AND NETWORKS
WORK
TRUE/FALSE QUESTIONS
1. Examples of equity-based alliances include strategic investment.
2. A non-JV, equity-based alliance can be regarded as two firms “getting
married,” but not having “children.”
3. The term “strategic networks” is derived from the term “social networks”
highlighting the social aspects of interfirm relationships.
4. In regards to strategic alliances and networks, in the traditional industry-based
view, firms are dependent players.
5. From the view of industry structure, in oligopolistic industries, there are an
above average number of available players as potential partners.
6. From the perspective of network position, firms located in the center of
interfirm networks accumulate less power and influence.
7. Firms with a high degree of network centrality are likely to be more attractive
partners.
8. Successful alliances and networks normally avoid socially complex relations
among partners.
9. The ad hoc approach to organization allows firms to systematically learn from
the experience.
10. Since firms act to enhance or protect their legitimacy, copying other reputable
organizations is not a way to gain legitimacy.
2.
3. 11. In finding organizational partners, it is desirable to identify candidates that
present both strategic fit and organizational fit.
12. The more tacit the resources and capabilities are, the less likely firms will
prefer equity involvement in establishing relationships.
13. A firm would prefer equity relationships if it fears that its intellectual property
may be expropriated by partners.
14. As each firm is likely to have multiple interfirm relationships, it is important
to not manage the relationships as a corporate portfolio.
15. Possible ways to minimize the threat of opportunism include swapping critical
skills and technologies through credible commitments.
16. In international alliances, setting up a parallel and reciprocal relationship in
the foreign partner’s home country may decrease the incentives for both
partners to cooperate.
17. Weak ties excel at connecting with distant others who possess unique and
novel information.
18. Strong ties are more beneficial to environments conductive for exploitation
whereas weak ties are more suitable for exploration.
19. An increase in the experience of one partner may bring instability into the
relationship as it reduces the need to rely on the other partner.
20. Higher level shared technology is associated with lower profitability for parent
firms.
4. MULTIPLE CHOICE QUESTIONS
1. Strategic alliances involve:
a. Voluntary agreements between firms.
b. Compromises between short-term transactions and long-term solutions.
c. Contracts.
d. Equity-based arrangements.
e. All of the above.
2. Contractual alliances include all of the following except:
a. Co-marketing.
b. Research and development (R&D) contracts.
c. Cross-shareholding.
d. Turnkey projects.
e. Licensing/franchising.
3. A joint venture can be described as:
a. A special case of equity-based alliance.
b. A new legally independent entity.
c. A “corporate child” given birth by two (or more) parent firms.
d. All of the above.
e. None of the above.
4. Which represents an alliance with suppliers?
a. Horizontal alliances.
b. Upstream vertical.
c. Downstream vertical.
d. All of the above.
e. None of the above.
5. Which is not an advantage of strategic alliances and networks?
a. Reduce costs, risks and uncertainties.
b. Costs of negotiation and coordination.
c. Gain access to complementary assets and capabilities.
d. Opportunities to learn from partners.
e. Possibilities to use alliances and networks as real options.
6. Which of the following are not true regarding managers involved in alliances and
networks?
a. They require relationship skills which foster trust with partners.
b. They must guard against opportunism.
c. They must recognize that interests of the firms fully overlap.
d. They have to represent the interests of their respective firms.
e. They must attempt to make the complex relationship work.
5. 7. Institution-based considerations regarding organization include:
a. Collusion concerns.
b. Entry requirements.
c. The social pressures to find partners.
d. The internalized beliefs in the value of collaboration.
e. All of the above.
8. Cooperation between rivals is usually suspected of being:
a. Tacit collusion.
b. Explicit collusion.
c. Socialism.
d. All of the above.
e. None of the above.
9. Emerging trends concerning formal government policies on entry mode
requirements include:
a. More liberal policies.
b. Imposing considerable requirements.
c. A and B above.
d. Welcoming wholly owned subsidiaries.
e. Banning joint ventures.
10. Which (if any) of the following are not involved in the stages of forming business
relationships?
a. The decision to cooperate.
b. The decision to not cooperate.
c. The choice of contract or equity.
d. Positioning the Relationship.
e. All of the above are involved.
11. The strategic choice concerning whether to form cooperative interfirm
relationships or to rely on pure market transactions or M&As to grow the firm is
part of:
a. Stage One.
b. Stage Two.
c. Stage Three.
d. Stage Four.
e. Stage Five.
12. In comparing M&As with alliances and networks, which of the following is not
correct?
a. M&As are costly.
b. M&As have significant transaction costs.
c. Many M&As end up destroying value.
d. Alliances and networks preclude future upgrading into possible M&As.
e. Alliances and networks can be considered as a flexible intermediate solution.
6. 13. Strategic fit refers to whether the partner firm possesses:
a. Technology.
b. Capital.
c. Distribution channels.
d. A through C above.
e. Goals, experiences, and behaviors that facilitate cooperation.
14. The first concern in determining whether a relationship should be based on
contract or equity is:
a. The kind of resources and capabilities that are shared.
b. Direct monitoring and control.
c. Real options.
d. Institutional constraints.
e. None of the above.
15. Weak ties in organizational relationships:
a. Are more trustworthy and are cultivated over a long period of time.
b. Are associated with exchanging finer-grained information.
c. Provide an informal, social control mechanism.
d. A through C above.
e. Are less costly to maintain.
16. As a type of relationship tie, exploitation refers to such things as:
a. Selfishness.
b. Choice.
c. Efficiency.
d. Execution.
e. B through D above.
17. In measuring the performance of strategic alliances and networks, subjective
measures include:
a. Market performance.
b. Stability.
c. A and B above.
d. The level of managers’ satisfaction.
e. Longevity.
18. Which (if any) of the following will not influence the performance of alliances
and networks?
a. Equity.
b. Learning and experience.
c. Nationality.
d. Relational capabilities.
e. All can have an influence.
7. 19. A lower level of ____contribution may indicate a firm’s relative lack of
commitment:
a. Equity
b. Learning and experience
c. Nationality
d. Relational capabilities
e. All of the above
20. The stock market responds favorably to alliance activities, but only under which
circumstances?
a. Complementary resources.
b. Previous alliance experience.
c. Ability to manage the host country’s political risk.
d. Partner buyouts.
e. All of the above.
8. SHORT ANSWER ESSAY QUESTIONS
1. How can an organizational alliance be “win-win?” How can the concept of
“cooperative specialization” help?
2. Why and how might a “real option” be useful in a joint venture?
3. A friend of yours stated: “I would never want to be dependent on an alliance. I
prefer an acquisition so that everything would be under my control.” How
would you respond?
4. What are the limitations in trying to clearly identify rights and expectations for
alliances and acquisitions among global corporations?
5. What can be done to maintain a successful alliance among global firms?
CHAPTER 8 – MANAGING GLOBAL COMPETITIVE DYNAMICS
TRUE/FALSE QUESTIONS
21. Strategy involves planning for actions rather than reactions or interaction.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-1; Bloom’s: Knowledge; Difficulty: Moderate
22. Multimarket competition occurs when firms engage the same rivals in
multiple markets.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-1; Bloom’s: Knowledge; Difficulty: Easy
23. Multimarket competition destroys mutual forbearance.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-1; Bloom’s: Comprehension; Difficulty: Moderate
24. If an attack is so subtle that rivals are not aware of it, the attacker’s objectives
are not likely to have been attained.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
9. LO: 8-5; Bloom’s: Comprehension; Difficulty: Moderate
25. If the attacked market is of marginal value, managers may decide not to
counterattack.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-5; Bloom’s: Comprehension; Difficulty: Easy
26. The “strategy as action” perspective highlights the power of creative
destruction.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-1; Bloom’s: Comprehension; Difficulty: Easy
27. Bargaining can take place through signals and actions.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-5; Bloom’s: Comprehension; Difficulty: Easy
28. Industry-based considerations are fundamentally concerned with the very first
of the Porter five forces, interfirm rivalry.
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 8-2; Bloom’s: Comprehension; Difficulty: Moderate
29. Barriers for entrants with similar products and with substitute products are
involved in the other two of the five forces.
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 8-2; Bloom’s: Comprehension; Difficulty: Challenging
30. Collusion survives because it does not have an incentive problem as is
illustrated by the prisoner’s dilemma.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-2; Bloom’s: Comprehension; Difficulty: Challenging
31. The capability to attack in multiple markets throws the firm off balance
leaving it vulnerable to rivals and thus reducing value.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-3; Bloom’s: Knowledge; Difficulty: Moderate
10. 32. Firms that have a high degree of resource similarity are likely to have similar
strengths and weaknesses.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-3; Bloom’s: Knowledge; Difficulty: Easy
33. Under antitrust law a company can be in trouble for setting prices too high but
not for setting them too low.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Legal Responsibilities
LO: 8-3; Bloom’s: Knowledge; Difficulty: Easy
34. US courts have not sought to unilaterally punish non-US cartels (if they are
legal elsewhere) simply because they may have a substantial adverse impact
on US markets.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Legal Responsibilities
LO: 8-4; Bloom’s: Knowledge; Difficulty: Easy
35. Critics of US policy on dumping at least agree that our policy on predatory
pricing is consistent both domestically and internationally.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Legal Responsibilities
LO: 8-4; Bloom’s: Knowledge; Difficulty: Moderate
36. Thrust makes use of military theory that the attacker needs to have at least a
three-to-one advantage to overcome a well-defended position through a
conventional frontal assault.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-5; Bloom’s: Knowledge; Difficulty: Easy
37. Local firms’ primary strengths lie in a deep understanding of local markets,
and thus they would pursue a dodger strategy.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-6; Bloom’s: Comprehension; Difficulty: Moderate
38. A strategy that leverages local assets is called an extender strategy.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-6; Bloom’s: Knowledge; Difficulty: Easy
11. 39. An extender strategy may be appropriate in some industries where pressures
for globalization are relatively low.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-6; Bloom’s: Comprehension; Difficulty: Easy
40. An extender strategy is being used when local firms engage in rapid learning
to approach the capabilities of the MNEs and then expand overseas.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-6; Bloom’s: Knowledge; Difficulty: Easy
12. MULTIPLE CHOICE QUESTIONS
21. Which is true of strategy?
f. Business strategy has similarities with military strategy.
g. Military principles cannot be completely applied in business.
h. Militaries fight over territories, waters, and air spaces, firms compete in
markets.
i. All of the above.
j. None of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-1; Bloom’s: Knowledge; Difficulty: Easy
22. Which of the following are least likely to result in collusion?
f. High concentration ratio.
g. Heterogeneous products.
h. High entry barriers.
i. High market commonality.
j. Industry price leader exists.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-2; Bloom’s: Analysis; Difficulty: Challenging
23. The main types of attack include:
f. Thrust.
g. Feint.
h. Gambit.
i. All of the above.
j. None of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-5; Bloom’s: Knowledge; Difficulty: Easy
24. Issues affecting collaboration include:
f. Secrecy.
g. Exclusivity.
h. Informality.
i. All of the above.
j. None of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-2; Bloom’s: Comprehension; Difficulty: Moderate
25. In developing a strategy regarding competition or cooperation, it would be useful
to not:
f. Understand the nature of your industry.
g. Strengthen capabilities that more effectively compete and/or cooperate.
h. Understand the rules of the game governing competition.
i. “Look ahead, reason back
j. All of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
13. LO: 8-8; Bloom’s: Analysis; Difficulty: Moderate
26. Industry-based considerations regarding strategy:
f. Focus on the nature of collusion.
g. Deal with the relationship between industry structures and firms’ propensity to
collude.
h. Deal with the relationship between industry structures and firms’ propensity to
collude to competing.
i. All of the above.
j. None of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-2; Bloom’s: Comprehension; Difficulty: Moderate
27. Explicit collusion is exemplified by:
f. Cartels.
g. Trusts.
h. Users of game theory.
i. All of the above.
j. None of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-2; Bloom’s: Comprehension; Difficulty: Moderate
28. Firm A may be more successful in imitating Firm B if Firm B:
f. Is competitively aggressive.
g. Carries out complex actions.
h. Uses difficult to execute maneuvers.
i. All of the above.
j. None of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-3; Bloom’s: Analysis; Difficulty: Moderate
29. Which of the following will enable a firm to be competitive even if there is a lack
of top management commitment and employee involvement?
a. Organizational structure.
b. Use of stealth attacks.
c. Rapid responses, and willingness to answer challenges.
d. All of the above.
e. None of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-3; Bloom’s: Analysis; Difficulty: Moderate
30. “The extent to which a given competitor possesses strategic endowment
comparable, in terms of both type and amount, to those of the focal firm” refers to
similarity of:
f. Strategy.
g. Resources.
14. h. Markets.
i. Industry.
j. Economic environment.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-3; Bloom’s: Knowledge; Difficulty: Moderate
31. Which of the following aspects of U.S. competition/antitrust policy has been
opposed by the EU?
f. Collusive price setting.
g. Predatory pricing.
h. Extraterritoriality.
i. Court decisions.
j. Changes in policy.
AACSB: BUSPROG: Analytic; DISC: Legal Responsibilities
LO: 8-4; Bloom’s: Knowledge; Difficulty: Moderate
32. Cartels:
f. Involvecollusion.
g. Are often outlawed.
h. A and B above.
i. Entail the “prisoner’s dilemma for participants.
j. All of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-2; Bloom’s: Comprehension; Difficulty: Easy
33. Which is not true concerning US anti trust policy today?
f. Legislation has legally permitted rivals to join hands in research and
development (R&D).
g. There is increased permissiveness regarding mergers among rivals.
h. Clarity of policy has improved.
i. The legal standards for interfirm cooperation are no longer ambiguous in the
United States.
j. The legal standards for interfirm cooperation are ambiguous in many other
countries.
AACSB: BUSPROG: Reflective Thinking; DISC: Legal Responsibilities
LO: 8-4; Bloom’s: Analysis; Difficulty: Challenging
34. Dumping is defined as:
f. Shipping hazardous waste to locations in other countries.
g. An exporter selling below cost abroad.
h. Unloading unsold inventory from the US in other countries.
i. Excessive criticism of international rivals.
j. Getting rid of unprofitable operations.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-4; Bloom’s: Knowledge; Difficulty: Easy
15. 35. Which of the following would not be considered an initial set of actions to gain
competitive advantage:
a. Price cuts.
b. Advertising campaigns.
c. Market entries.
d. Counterattacks.
e. New product introductions.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-5; Bloom’s: Comprehension; Difficulty: Easy
36. A firm's attack on a focal arena important to a competitor, but not the attacker's
true target area, is referred to as:
f. Thrust.
g. Feint.
h. Gambit.
i. Miscalculation.
j. Practice attack.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-5; Bloom’s: Knowledge; Difficulty: Easy
37. The three drivers of counterattacks do not include:
f. Awareness.
g. Motivation.
h. Capability.
i. B and C above.
j. Vengeance.
AACSB: BUSPROG: Reflective Thinking; DISC: Motivation Concepts
LO: 8-5; Bloom’s: Comprehension; Difficulty: Moderate
38. Which of the following is not a legal means of signaling?
f. Nonaggression or fat cat.
g. Direct discussion of reduced rivalry with competitors.
h. Truce seeking.
i. Communication via governments.
j. Strategic alliances.
AACSB: BUSPROG: Analytic; DISC: Legal Responsibilities
LO: 8-5; Bloom’s: Knowledge; Difficulty: Moderate
39. In some industries where pressures for globalization are relatively low, local firms
may possess some skills and assets that are transferable overseas, thus leading to
a/an_____strategy.
f. Defender
g. Extender
h. Dodger
i. Contender
j. Transfer
16. AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-6; Bloom’s: Comprehension; Difficulty: Moderate
40. Local firms in emerging economies typically can at least match the ________ of
MNEs.
a. Expertise
b. Experience
c. Endowments
d. A and B above
e. None of the above
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 8-6; Bloom’s: Knowledge; Difficulty: Easy
17. SHORT ANSWER ESSAY QUESTIONS
1. The text points out that modern ideas of strategy, pioneered by Michael Porter,
have turned IO economics “on its head.” While IO economics attempts to
prevent any firm from gaining sustained competitive advantage, the very
purpose of strategy is to gain a sustainable advantage. Is that good or bad?
2. Dumping involves selling something below cost. Using what you have
learned in accounting or economics (or perhaps by talking to someone familiar
with these courses) point out why it might sometimes be difficult to prove that
a firm is selling below cost.
3. In the interest of maintaining high standards for international trade, the U.S.
has at various times attempted to legislate the behavior of U.S. based
companies. It has even at times tried to apply U.S. standards to those from
other countries. Does this make sense to you?
4. Can national policies that seek to promote the well being of its citizens by its
attempts to maintain competition actually have the opposite effect? Why or
why not?
5. In some of the discussions of strategy. It was suggested that a firm might
attempt to mislead a rival as to the firm’s true objective – i.e. feint. Is that
unethical? Explain.
CHAPTER 9 – DIVERSIFYING, ACQUIRING, AND RESTRUCTURING
TRUE/FALSE QUESTIONS
41. Operational synergy involves economies of scale.
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Creation of Value
LO: 9-1; Bloom’s: Knowledge; Difficulty: Easy
42. Not all product-related diversifiers outperform product-unrelated diversifiers.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-2; Bloom’s: Comprehension; Difficulty: Easy
43. Porter’s five forces affect the structural attractiveness of an industry.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-2; Bloom’s: Comprehension; Difficulty: Moderate
18. 44. The economic benefits of the last unit of growth (such as the last acquisition)
can be defined as MBC.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-2; Bloom’s: Knowledge; Difficulty: Easy
45. The scope of the firm is thus determined by a comparison between MEB and
MBC.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-2; Bloom’s: Knowledge; Difficulty: Moderate
46. In the United States between the 1950s and 1970s MEB decreased, resulting in
a decreased scope of the firm into conglomeration.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-2; Bloom’s: Knowledge; Difficulty: Moderate
47. By the 1980s MBC began to decrease.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-2; Bloom’s: Knowledge; Difficulty: Easy
48. Interest in conglomerates has declined in emerging economies due to their
developed capital markets.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-2; Bloom’s: Comprehension; Difficulty: Easy
49. You should understand that the nature of your industry might call for
diversification, acquisitions, and restructuring.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-6; Bloom’s: Knowledge; Difficulty: Easy
50. You and your firm need to develop policies that avoid acquisitions and
restructuring.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-6; Bloom’s: Knowledge; Difficulty: Easy
19. 51. Answering why firms choose different diversification strategies does not help
answer why firms differ and how they behave.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-2; Bloom’s: Comprehension; Difficulty: Easy
52. A superior product-related diversification strategy does not require a
centralized and cooperative organizational architecture in order to add value.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-1; Bloom’s: Knowledge; Difficulty: Easy
53. Instead of operational synergy, conglomerates focus on financial synergy.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-1; Bloom’s: Knowledge; Difficulty: Easy
54. Diversification discount is the situation when unrelated-product diversification
enables conglomerate units to beat stand-alone rivals.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-1; Bloom’s: Knowledge; Difficulty: Easy
55. When conglomerate units are better off competing as stand-alone entities, we
call it diversification premium.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-1; Bloom’s: Knowledge; Difficulty: Easy
56. Research shows that the linkage between product diversification and firm
performance seems to be inverted-U shaped.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-1; Bloom’s: Knowledge; Difficulty: Easy
57. Porter’s five forces model can be used in regards to the structural
attractiveness of an industry.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-2; Bloom’s: Knowledge; Difficulty: Moderate
58. High entry barriers often result in green-field entries as opposed to
acquisitions.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
20. LO: 9-2; Bloom’s: Comprehension; Difficulty: Moderate
59. An industry whose products can be easily substituted faces more threats from
other firms currently not in the same industry.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-2; Bloom’s: Comprehension; Difficulty: Easy
60. Although the term mergers and acquisitions (M&As) is often used, in reality,
acquisitions dominate the scene.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-3; Bloom’s: Knowledge; Difficulty: Easy
21. MULTIPLE CHOICE QUESTIONS
41. Sources of operational synergy include:
k. Technologies.
l. Marketing.
m. Manufacturing.
n. All of the above.
o. None of the above.
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-1; Bloom’s: Comprehension; Difficulty: Moderate
42. Conglomeration tends to provide all of the following except:
k. Product-unrelated diversification.
l. Financial synergy.
m. Economies of scale.
n. Economies of scope.
o. Internal capital market.
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-1; Bloom’s: Analysis; Difficulty: Challenging
43. Diversification premium is the same thing as:
k. Conglomerate advantage.
l. Diversification discount.
m. Conglomerate disadvantage.
n. Level of product diversification.
o. Measurement of firm performance.
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-1; Bloom’s: Comprehension; Difficulty: Easy
44. Which would be more characteristic of conglomerates?
k. “Putting one’s eggs in one basket.”
l. “Putting one’s eggs in similar baskets.”
m. “Putting one’s eggs in different baskets.”
n. A and B above.
o. B and C above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-1; Bloom’s: Comprehension; Difficulty: Moderate
45. Research regarding the relationship between product diversification and firm
performance indicates that:
k. Performance may increase as firms shift from single business strategies to
product-related diversification.
l. Performance may decrease as firms change from product-related to –
unrelated.
m. The linkage between diversification and performance is inverted U shaped.
n. “Putting your eggs in similar baskets,” has emerged as a balanced way to both
reduce risk and leverage synergy.
22. o. All of the above.
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-1; Bloom’s: Knowledge; Difficulty: Challenging
46. Which geographic diversification is most likely to reduce the liability of
foreignness?
k. Culturally adjacent countries.
l. Extensive international scope.
m. Beyond geographically neighboring countries.
n. Beyond culturally neighboring countries.
o. All of the above
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-1; Bloom’s: Comprehension; Difficulty: Easy
47. Which is not true regarding geographic diversification and firm performance?
k. U-shaped relationship at low level of internationalization.
l. Initially a negative effect of international expansion on performance.
m. Affected by the liability of foreignness.
n. Inverted-U shape at moderate to high levels of internationalization.
o. Positive only at high levels of internationalization.
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-1; Bloom’s: Analysis; Difficulty: Challenging
48. In combining product and geographic diversification, which is not one of the four
possible combinations?
k. Anchored replicators.
l. Multinational replicators.
m. Far-flung conglomerates.
n. Classic replicators.
o. Classic conglomerates.
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 9-1; Bloom’s: Comprehension; Difficulty: Moderate
49. At its core, diversification is essentially driven by all of the following except:
a. Economic benefits.
b. Bureaucratic costs.
c. Synergy.
d. Less complicated information systems.
e. MEB.
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 9-1; Bloom’s: Analysis; Difficulty: Moderate
50. Select the best choice: a company that is engaged in oil production, pipelines and
tankers, refining, and gasoline stations has engaged in ______________
expansion.
k. Horizontal
23. l. Vertical
m. Conglomerate
n. Friendly M&A
o. Hostile M&A
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 9-3; Bloom’s: Application; Difficulty: Moderate
51. Which is one motive for M&A which does not necessarily increase shareholder
value?
k. Synergistic.
l. Hubris.
m. Performance.
n. A and C above.
o. None of the above.
AACSB: BUSPROG: Analytic; DISC: Motivation Concepts
LO: 9-3; Bloom’s: Comprehension; Difficulty: Easy
52. Corporate scope is shaped by:
k. Industry conditions.
l. Firm capabilities.
m. Institutional constraints.
n. Opportunities in both developed and emerging economies.
o. All of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-2; Bloom’s: Comprehension; Difficulty: Moderate
53. Product-related diversification involves all of the following except:
k. A single business strategy.
l. Entries into activities that are related to a firm’s existing markets and/or
activities.
m. The emphasis is on economies of scale rather than scope.
n. Increases in competitiveness.
o. Synergy.
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 9-3; Bloom’s: ; Difficulty: Challenging
54. Sources of operation synergy:
k. Technologies.
l. Marketing.
m. Manufacturing.
n. All of the above.
o. None of the above.
AACSB: BUSPROG: Analytic; DISC: Creation of Value
LO: 9-1; Bloom’s: Analysis; Difficulty: Moderate
24. 55. Diversification can pay off in all of the following situations except:
a. Risk is spread over several (product or country) markets.
b. Core resources are leveraged.
c. The art of post-acquisition integration has been mastered.
d. Commonly shared industry skills are used.
e. Firms are organized to minimize the costs.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-2; Bloom’s: Analysis; Difficulty: Challenging
56. The following managerial motives for conglomerations do not benefit
shareholders except:
k. Norms.
l. Reducing managers’ employment risk.
m. Organizational stability.
n. Pursuing power, prestige, and income.
o. Empire building.
AACSB: BUSPROG: Reflective Thinking; DISC: Motivation Concepts
LO: 9-2; Bloom’s: Comprehension; Difficulty: Easy
57. Which of the following is true regarding M&As?
k. As many as 70 percent of M&As reportedly fail.
l. On average, the acquiring firms’ performance improves after acquisitions.
m. Target firms, after being acquired and becoming internal units, often perform
better than when they were independent, stand-alone firms.
n. The only identifiable losers are the shareholders of target (acquired) firms.
o. The outstanding success of M&As is due to pre- and post acquisition phases.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-3; Bloom’s: Knowledge; Difficulty: Moderate
58. To ensure the success of the M&A, managers need to make sure of all the
following except:
k. Be willing to walk out when premiums are too high.
l. Engage in adequate due diligence concerning strategic fit.
m. Seek organizational contrast and variety rather than organizational fit.
n. Address the concerns of multiple stakeholders.
O. Recognize that that integration management is a fulltime job.
AACSB: BUSPROG: Reflective Thinking; DISC: Leadership Principles
LO: 9-3; Bloom’s: Analysis; Difficulty: Moderate
59. Which is true regarding restructuring?
k. There are two primary ways of restructuring namely downsizing and upsizing.
l. A rising level of competition within an industry normally prevents
restructuring.
m. Corporate restructuring is not widely embraced around the world.
25. n. Restructuring is one of the first things to consider when trying to improve
profitability.
o. Restructuring is easier in knowledge-intensive firms than capital intensive
firms.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-4; Bloom’s: Knowledge; Difficulty: Moderate
60. Which is true of relatedness?
a. Measurement of product relatedness is no longer debatable.
b. A “product-related” firm will be considered related regardless of the measure
used.
c. Some argue that product relatedness refers specifically to the visible product
linkages.
d. Relatedness can be a common underlying dominant logic that connects various
businesses in a diversified firm.
e. Product-unrelated conglomerates are not linked by institutional relatedness.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 9-5; Bloom’s: Knowledge; Difficulty: Moderate
26. SHORT ANSWER ESSAY QUESTIONS
1. You recently noticed a comment in a blog which stated: “By its very nature,
restructuring is a violation of CSR!” How do you feel about that?
2. In that same blog another person stated: “Decisions about diversification and
acquisition are not based on the well being of the shareholder but instead on
the needs of the CEO such as ego and job security. As a result, all such
decisions should be submitted to a government agency for approval.” Do you
agree? Why or why not?
3. Other comments you saw in the blog are less hostile to business. In one, the
person was claiming that recent developments in financial markets suggest
that it is time to revive the use of conglomerates. Based on what is happening
now, do you agree? Why or why not?
4. You are the CEO of International Widget and you are contemplating
expanding into Lower Slobovia. You have the resources needed to start from
scratch in that country but it would be possible to acquire the company that
dominates the Lower Slobovian Widget industry. Which do you think would
be best: start from scratch or an acquisition?
5. You are the CEO of Mega Global Corporation and you are weighing a number
of decisions involving diversification, acquisition, and restructuring. Long ago
you were the manager of a mutual fund and you decide to make your decisions
using the same approach as you used in managing that fund. How would that
affect your decisions and decision process?
CHAPTER 10 – STRATEGIZING, STRUCTURING, AND LEARNING
AROUND THE WORLD
TRUE/FALSE QUESTIONS
61. Home replication strategy emphasizes the home country replication of
international based competencies.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-1; Bloom’s: Knowledge; Difficulty: Easy
62. Localization strategy is an extension of the home replication strategy.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-; Bloom’s: Knowledge; Difficulty: Easy
27. 63. Transnational strategy supposedly is a trade off between being cost efficient
and locally responsive but is really locally responsive.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-1; Bloom’s: Comprehension; Difficulty: Moderate
64. Global product division structure is the same as the geographic area structure.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-1; Bloom’s: Comprehension; Difficulty: Easy
65. Many MNEs have phased out the geographical area structure.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-1; Bloom’s: Knowledge; Difficulty: Easy
66. Strategy drives structure: a misfit, such as combining a global strategy with a
geographic area structure, may have grave performance consequences.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-1; Bloom’s: Comprehension; Difficulty: Easy
67. The Porter five forces are not helpful in understanding MNE structure.
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 10-2; Bloom’s: Comprehension; Difficulty: Easy
68. No one argues that knowledge management is the defining feature of MNEs.
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 10-3; Bloom’s: Knowledge; Difficulty: Easy
69. It is obviously a lot easier to imitate an intangible philosophy or mentality than
to imitate a tangible structure.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-3; Bloom’s: Comprehension; Difficulty: Easy
70. Knowledge management not only depends on IT, but also on informal social
relationships within the MNE.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-3; Bloom’s: Comprehension; Difficulty: Easy
28. 71. In a transnational MNE, the role of subsidiaries is to adapt and leverage parent
company competencies.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-3; Bloom’s: Comprehension; Difficulty: Moderate
72. The “not invented here” syndrome causes managers to accept ideas invented
elsewhere.
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Individual Dynamics
LO: 10-3; Bloom’s: Knowledge; Difficulty: Easy
73. MNEs often must rely on a great deal of informal integrating mechanisms.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-3; Bloom’s: Knowledge; Difficulty: Easy
74. Overall, the micro, informal interpersonal relationships among managers of
various units may create a micro-macro link.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Group Dynamics
LO: 10-3; Bloom’s: Knowledge; Difficulty: Easy
75. It is hard to distinguish between subsidiary initiative and empire building.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Group Dynamics
LO: 10-4; Bloom’s: Comprehension; Difficulty: Moderate
76. European MNE’s are more likely than Japanese MNE to appoint host-country
or third country nationals as head of a foreign subsidiary.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Group Dynamics
LO: 10-2; Bloom’s: Knowledge; Difficulty: Easy
77. Customer-focused dimensions cut across all three existing mainstream
dimensions.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-4; Bloom’s: Comprehension; Difficulty: Easy
78. Transnational strategy aims to capture “the best of both worlds” by
endeavoring to be both cost efficient and locally responsive.
a. True b. False
29. AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-1; Bloom’s: Comprehension; Difficulty: Easy
79. An international division serves as a means of coordination with the rest of the
firm.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-1; Bloom’s: Knowledge; Difficulty: Moderate
80. The text recommended that firms avoid simplifying both product and
geographic scope by downsizing and downscoping.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Operations Management
LO: 10-1; Bloom’s: Knowledge; Difficulty: Moderate
30. MULTIPLE CHOICE QUESTIONS
61. Pressures for cost reductions and local responsiveness include:
p. The framework of how to simultaneously deal with these two sets of pressures.
q. Host country demands and expectations.
r. Being locally responsive makes local customers and governments happy but
increase costs.
s. All of the above.
t. None of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-1; Bloom’s: Comprehension; Difficulty: Moderate
62. Four strategic choices for MNEs do not include:
p. Home replication.
q. Domestic.
r. Multidomestic.
s. Transnational.
t. Global.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-1; Bloom’s: Comprehension; Difficulty: Moderate
63. Multidomestic strategy involves all of the following except:
p. Focuses on a number of foreign countries/regions.
q. Each foreign country is regarded as a stand-alone “domestic” market.
r. Is effective when there are clear differences among national and regional
markets.
s. A multidomestic strategy has high costs.
t. Global standardization strategy is the same as a multidomestic strategy.
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 10-1; Bloom’s: Analysis; Difficulty: Challenging
64. The structure that is typically set up when firms initially expand abroad is a:
p. International division structure.
q. Geographic area structure.
r. Global product division structure.
s. Global matrix structure.
t. Flexible matrix structure.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-1; Bloom’s: Knowledge; Difficulty: Easy
65. In which of the following structures are foreign subsidiary managers not given
sufficient voice relative to domestic managers?
p. International division structure.
q. Geographic area structure.
r. Global product division structure.
s. Global matrix structure.
t. Flexible matrix structure.
31. AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 10-1; Bloom’s: Analysis; Difficulty: Challenging
66. The most appropriate structure for a multidomestic strategy is a:
p. International division structure.
q. Geographic area structure.
r. Global product division structure.
s. Global matrix structure.
t. Flexible matrix structure.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-1; Bloom’s: Application; Difficulty: Moderate
32. 67. Which of the following is not true of the global matrix structure?
p. Is often used to alleviate the disadvantages associated with the geographic area
structure.
q. Is often used to alleviate the disadvantages associated with the global product
division structures.
r. Often used for sharing and coordinating responsibilities between product
divisions and geographic areas.
s. This structure benefits front-line managers who now have only one boss –
either a country manager or a product division manager.
t. The matrix structure may add layers of management.
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 10-1; Bloom’s: Analysis; Difficulty: Challenging
68. Which are not true in regards to institution-based considerations?
p. Externally, MNEs are subject to the formal institutional frameworks erected by
various home- and host-country governments.
q. Host-country governments often encourage, or coerce MNEs into undertaking
certain activities.
r. Strategists weigh the informal, backlash against activities which result in
domestic job losses.
s. Formal organizational charts do not necessarily reveal the informal rules of the
game, such as organizational norms, values, and networks.
t. To staff the position of the head of a subsidiary, MNEs, in the absence of
formal regulations, essentially have only one choice: to use a home-country
national as the head of a subsidiary.
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 10-2; Bloom’s: Analysis; Difficulty: Challenging
69. The type of knowledge that is codifiable (that is, it can be written down and
transferred without losing much of its richness) is called:
a. Explicit.
b. Implicit.
c. Tacit.
d. Lucid.
e. Clear.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-3; Bloom’s: Knowledge; Difficulty: Easy
70. Knowledge management uses “centers of excellence” in which type of MNE?
p. Home replication.
q. Local (multidomestic).
r. Global.
s. Transnational.
t. All of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-3; Bloom’s: Comprehension; Difficulty: Moderate
33. 71. Which is true of globalized R&D?
p. Is often known as innovation-avoidance expense.
q. One way to access such a high technology and research-rich cluster is to avoid
FDI.
r. R&D work performed by different locations and teams around the world
virtually guarantees failure.
s. For large firms, there are actually diminishing returns for R&D.
t. Global virtual teams, which do not meet face to face, may overcome
communication and relationship barriers.
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 10-3; Bloom’s: Knowledge; Difficulty: Easy
34. 72. This structure is commonly used in professional service firms:
p. Global account structure.
q. An industry sector structure.
r. Solutions-based structure.
s. All of the above.
t. None of the above.
AACSB: BUSPROG: Analytic; DISC: Operations Management
LO: 10-4; Bloom’s: Knowledge; Difficulty: Moderate
73. This structure is often used to supply customers (often other MNEs) in a
coordinated and consistent way across various countries.
p. Global account structure.
q. An industry sector structure.
r. Solutions-based structure.
s. All of the above.
t. None of the above.
AACSB: BUSPROG: Analytic; DISC: Operations Management
LO: 10-4; Bloom’s: Knowledge; Difficulty: Moderate
74. Which of the following is a solution rather than a problem in knowledge
management?
p. Open innovation.
q. Knowledge leakage.
r. Not invented here syndrome.
s. All of the above.
t. None of the above.
AACSB: BUSPROG: Reflective Thinking; DISC: Environmental Influence
LO: 10-3; Bloom’s: Comprehension; Difficulty: Easy
75. Which of the following is not an argument in favor of centralization in knowledge
management but instead is an argument in favor of decentralization?
a. Capability to facilitate corporate-wide coordination.
b. Consistency in decision-making.
c. Permits greater speed, flexibility, and innovation.
d. Sufficient power for corporate-level managers to initiate necessary actions.
e. None of the above.
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 10-3; Bloom’s: Analysis; Difficulty: Moderate
76. Which of the following is not an argument in favor of decentralization in
knowledge management but instead is an argument in favor of centralization?
p. Better motivates subsidiary-level managers and employees through
empowerment.
q. Reduces corporate level overload of responsibilities.
r. Better motivates subsidiary level managers.
s. Sufficient power for corporate-level managers to initiate necessary actions.
t. All of the above.
35. AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 10-3; Bloom’s: Analysis; Difficulty: Moderate
77. Which of the following is a customer-focused dimension?
a. Global account structure.
b. An industry sector structure.
c. Solutions-based structure.
d. All of the above.
e. None of the above.
AACSB: BUSPROG: Analytic; DISC: Operations Management
LO: 10-4; Bloom’s: Comprehension; Difficulty: Moderate
78. Unique to international competition are the pressures for local responsiveness,
which are reflected in:
p. Consumer preferences.
q. Distribution channels.
r. Host country demands.
s. A through C above.
t. Shareholder demands.
AACSB: BUSPROG: Analytic; DISC: Environmental Influence
LO: 10-1; Bloom’s: Comprehension; Difficulty: Easy
79. Which of the following is a key idea regarding the reciprocal relationship between
strategies and structures within MNEs?
p. The fit between strategies and structures is crucial.
q. The relationship is two way.
r. Strategies and structures are not static.
s. All of the above.
t. A good strategy cancels the effect of a bad structure.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 10-1; Bloom’s: Comprehension; Difficulty: Moderate
80. Which is not one of the suggestions for international managersthat can be drawn
from this chapter?
a. Create a common structure for all MNEs.
b. Understand the nature and evolution of your industry.
c. Actively develop learning and innovation capabilities.
d. Masterthe external rules of the game.
e. Understand and be prepared to change the internal rules of the game.
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 10-5; Bloom’s: Comprehension; Difficulty: Easy
36. SHORT ANSWER ESSAY QUESTIONS
1. To what extent should a firm be committed to a particular strategy versus making
frequent changes in the strategy? If a strategy is likely to be changed, what is the
point in having one?
2. Normally when a firm first expands overseas, it may use an international division
and later use a different organizational structure. Under what circumstances
might such a firm wish to shift back to the use of an international division?
3. Global R&D has pros and cons for the firm that uses that approach. However,
suppose you are the leader of the country where that firm is based. How might you
view having R&D being conducted by a global team in a matter that is vital to the
nation’s economic health/and or security?
4. Suppose you are the leader of a nation which currently has few capabilities other
than a well-educated populace that could contribute to economic growth. However,
you think you have a bright idea. You are going to encourage MNEs from around
the world to locate their headquarters in your country. What might attract them and
how might that pay off if you are successful?
5. Mega Global Corporation has centralized all of its global operations. The firm’s
manager in Lower Slobovia would like to see more decentralization. Her
complaint: “We are the experts on what needs to be done in this country but we
have to get approval from people who have no idea as to what is going on here.
That makes neither sense nor dollars.” Evaluate her statement.
CHAPTER 11 – GOVERNING THE CORPORATION AROUND THE WORLD
TRUE/FALSE QUESTIONS
81. Founders usually start up firms and completely own and control these
enterprises.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-1; Bloom’s: Knowledge; Difficulty: Easy
82. Since the 1980s, state ownership has expanded and privatization has declined.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Environmental Influence
LO: 11-1; Bloom’s: Knowledge; Difficulty: Easy
37. 83. The relationship between shareholders and professional managers is a
relationship between principals and agents.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-2; Bloom’s: Comprehension; Difficulty: Easy
84. Principal-Principal Conflicts: such conflicts are within one class of principals
such as a disagreement among certain majority stockholders and other
majority stockholders.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-2; Bloom’s: Comprehension; Difficulty: Easy
85. Inside directors are top executives of the firm.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-3; Bloom’s: Knowledge; Difficulty: Easy
86. The trend around the world is to introduce more inside directors and less
outside directors.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-3; Bloom’s: Knowledge; Difficulty: Easy
87. CEO duality refers to a situation in which two people share the role of CEO.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-3; Bloom’s: Knowledge; Difficulty: Easy
88. Board interlocks refers to bonding and teamwork among the members of a
board of directors.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-3; Bloom’s: Knowledge; Difficulty: Easy
89. How directors strategically prioritize is about the same around the world.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-3; Bloom’s: Knowledge; Difficulty: Easy
90. The Market for Corporate Control is another term for the stock market.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-4; Bloom’s: Knowledge; Difficulty: Easy
38. 91. The Market for Private Equity involves going private by tapping into private
equity.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-4; Bloom’s: Comprehension; Difficulty: Easy
92. Overall, governance practices need to fit with the nature of the industry in
which firms are competing. This cautions against prescribing universal “best”
practices.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-6; Bloom’s: Comprehension; Difficulty: Easy
93. Managerial human capital refers to the skills and abilities of top managers and
directors.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-6; Bloom’s: Knowledge; Difficulty: Easy
94. Formal legal protection encourages founding families and their heirs to dilute
their equity.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Legal Responsibilities
LO: 11-6; Bloom’s: Comprehension; Difficulty: Moderate
95. Large shareholders in emerging economies usually need to have a
significantly lower percentage of shares to ensure control than in the US.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-6; Bloom’s: Knowledge; Difficulty: Moderate
96. The rise of capitalism has not affected governance.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-6; Bloom’s: Knowledge; Difficulty: Easy
97. FPI investors demand less protection.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Legal Responsibilities
LO: 11-6; Bloom’s: Knowledge; Difficulty: Easy
98. The thirst for global capital requires adherence to listing requirements.
39. a. True b. False
AACSB: BUSPROG: Analytic; DISC: Legal Responsibilities
LO: 11-6; Bloom’s: Knowledge; Difficulty: Easy
99. Recently, stewardship theory suggests that by and large managers can be
viewed as stewards of owners’ interests.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-7; Bloom’s: Knowledge; Difficulty: Easy
100. Convergence advocates argue that a “survival-of the-fittest” process
will force firms globally to accept the best practices exemplified by Anglo-
American practices.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-7; Bloom’s: Knowledge; Difficulty: Easy
40. MULTIPLE CHOICE QUESTIONS
81. Ownership will likely be diffused under which of the following situations?
u. A start up firm.
v. Family owned firm.
w. State ownership.
x. All of the above.
y. None of the above.
AACSB: BUSPROG: Analytic; DISC: Operations Management
LO: 11-1; Bloom’s: Comprehension; Difficulty: Moderate
82. Issues involved regarding how a board of directors can be established so as to be
most effective include:
u. The insider/outsider mix.
v. CEO duality.
w. Board Interlocks.
x. The Role of Boards of Directors.
y. All of the above.
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-3; Bloom’s: Comprehension; Difficulty: Moderate
83. Boards of directors perform all of the following except:
u. Control.
v. Service.
w. Resource acquisition functions.
x. A through C above.
y. Day to day operations.
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-3; Bloom’s: Comprehension; Difficulty: Moderate
84. Which of the following make up a governance package?
u. Internal Mechanisms + External Mechanisms.
v. Carrots to motivate managers such as stock options.
w. Sticks that may result in CEO and top management team turnover.
x. The Market for Corporate Control.
y. The Market for Private Equity.
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-4; Bloom’s: Knowledge; Difficulty: Easy
85. Three decades of privatization suggest all of the following except:
u. Privatization to insiders helps improve the performance of small firms.
v. In large corporations privatization to insiders, without external governance
pressures, is hardly conducive for needed restructuring.
w. Outside ownership and control, preferably by blockholders, funds, foreigners,
and/ or banks, are more likely to facilitate restructuring.
x. Such outside ownership and control does not happen frequently because
incumbent managers do not necessarily welcome such outside “intrusion.”
41. y. When outside investors such as institutional investors do come in, they fail to
assert their power.
AACSB: BUSPROG: Reflective Thinking; DISC: Leadership Principles
LO: 11-7; Bloom’s: Analysis; Difficulty: Moderate
86. Industry-Based Considerations regarding corporate governance include all of the
following except:
u. Having more outside directors on the board is often regarded as having a
negative impact on performance because of their lack of understanding as
compared to insiders.
v. In industries characterized by rapid innovation requiring significant R&D
investments (such as information technology), outside directors may have a
negative impact on firm performance.
w. Research finds that for firms in low-growth, stable industries, no relationship
exists between inside management ownership and firm performance.
x. In relatively high-growth, turbulent industries, there is a relationship between
inside management ownership and firm performance.
y. In industries experiencing great turbulence, the presence of a single leader may
allow a faster and more unified response to changing events.
AACSB: BUSPROG: Reflective Thinking; DISC: Leadership Principles
LO: 11-6; Bloom’s: Comprehension; Difficulty: Moderate
87. Institution-based considerations in governance include all of the following except:
u. Formal institutional framework.
v. International experience of senior executives.
w. Formal legal protection and impact on founder’s dilution of equity.
x. Lack of legal protection and its impact regarding large shareholders in
emerging economies.
y. Impact of informal norms and values.
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-6; Bloom’s: Comprehension; Difficulty: Moderate
88. Which are not among the aspects of globalization?
u. Contact with different governance norms.
v. FPI investors demand more protection.
w. The focus on governance has been replaced by a focus on shareholder value.
x. The thirst for global capital requires adherence to listing requirements.
y. The global diffusion of “best practices.”
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 11-6; Bloom’s: Comprehension; Difficulty: Challenging
89. Agency theory assumes that managers:
a. Have a responsibility to the owners.
b. Are agents who are opportunistic and engage in self-serving activities.
c. A and B above.
d. Can be left to their own devices.
42. e. Are effective steward of the owners’ interests.
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-2; Bloom’s: Comprehension; Difficulty: Moderate
90. In regards to global convergence:
u. Advocates argue that globalization will unleash a “survival-of the-fittest”
process.
v. Advocates claim firms will be forced to adopt globally the best practices.
w. Others contend that governance practices will continue to diverge throughout
the world.
x. The text indicates that complete divergence in corporate governance is
probably unrealistic.
y. All of the above.
AACSB: BUSPROG: Analytic; DISC: Operations Management
LO: 11-7; Bloom’s: Knowledge; Difficulty: Moderate
91. Strategists should:
u. Understand the nature of principal–agent and principal–principal conflicts to
create better governance mechanisms.
v. Develop firm-specific capabilities to differentiate on governance dimensions.
w. Understand the rules, anticipate changes, and be aware of differences,
especially when doing business abroad.
x. Use an understanding of corporate governance to help answer the four
fundamental questions in strategy.
y. All of the above.
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 11-2; Bloom’s: Knowledge; Difficulty: Moderate
92. As the closing case points out, the positive side private equity firms excel in all
the following ways except:
p. They always send experts to sit on the board and are hands-on in managing.
q. They use a high level of debt that imposes strong financial discipline.
r. Private equity turns managers from agents to principals with substantial
equity, thus providing a powerful incentive to them.
s. They pay managers more generously, but also punish failure more heavily.
t. They reduce income inequality between financiers and the rest of us.
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-1; Bloom’s: Comprehension; Difficulty: Easy
93. As the closing case points out on the negative side, private equity firms have been
accused of all of the following except:
u. Being “barbarians.”
v. Being “asset strippers,” and “locusts.”
w. Internationally, causing shock in countries suddenly facing the full rigor of
Anglo-American private equity.
43. x. Placing CSR ahead of all rational economic decisions.
y. None of the above.
AACSB: BUSPROG: Ethics; DISC: Leadership Principles
LO: 11-1; Bloom’s: Comprehension; Difficulty: Easy
94. The defense of private equity includes all of the following points except:
u. While private equity results in job cuts, the same might happen if targets were
acquired by public firms.
v. It would not be rational for private buyers to destroy their prize therefore they
attempt to avoid doing that.
w. Their record as corporate citizens is no more barbaric than that of public firms.
x. They point to a Texas utility in which owners paid shareholders a 25%
premium, gave retail customers a 10% price cut, and dropped plans to build
eight dirty coal-fired power plants—hailed by environmentalists as a major
victory.
y. The actions of U.S. private equity firms have enhanced the image of the U.S.
and capitalism around the world.
AACSB: BUSPROG: Reflective Thinking; DISC: Leadership Principles
LO: 11-1; Bloom’s: Comprehension; Difficulty: Moderate
95. Diffused ownership is the opposite of concentrated ownership, and is more
common in:
a. The US and UK.
b. South America.
c. Asia.
d. Africa.
e. The Pacific.
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-1; Bloom’s: Knowledge; Difficulty: Easy
96. Most large, publicly traded UK corporations are now characterized by all of the
following except:
u. Diffused ownership.
v. Numerous small shareholders.
w. A separation of ownership and control.
x. Control is largely concentrated in the hands of salaried, professional managers.
y. Corporate managers who own a majority of the stock.
AACSB: BUSPROG: Analytic; DISC: Leadership Principles
LO: 11-1; Bloom’s: Knowledge; Difficulty: Moderate
97. Which of the following is not true regarding large institutional investors?
u. They include professionally managed mutual funds and pension pools.
v. They now own over 50 percent of the stock in major corporations.
w. They are the controlling stockholders in China.
x. Their ability to dump the stock is limited because selling out depresses the
share price and harms the institutions.
44. y. They are more likely to exercise shareholder rights than smaller investors.
AACSB: BUSPROG: Reflective Thinking; DISC: Leadership Principles
LO: 11-1; Bloom’s: Knowledge; Difficulty: Moderate
98. In regards to family ownership, all of the following are true except:
u. Most small firms in the world are owned and controlled by families.
v. The vast majority of large corporations throughout continental Europe, Asia,
Latin America, and Africa no longer feature concentrated family ownership
and control.
w. Family ownership and control may provide better incentives for the firm to
focus on long-run performance.
x. Such ownership may also minimize the conflict between owners and
professional managers typically encountered in widely owned firms.
y. Family ownership and control may lead to the selection of less qualified
managers who happen to be the sons, daughters, and relatives of owners.
AACSB: BUSPROG: Reflective Thinking; DISC: Leadership Principles
LO: 11-1; Bloom’s: Knowledge; Difficulty: Moderate
99. Which of the following is true in regards to outside directors?
u. The trend around the world is to introduce less outside directors.
v. In the United States, less than a half century ago, most boards were made up
entirely or largely of outside directors.
w. Many US firms are now favoring a board that is entirely made of people who
are insiders due the need for people who can understand the increasing
complexity of MNEs.
x. Japanese boards have not waited until they are in financial difficulty to bring
in outside directors from banks.
Y. Academic research has failed to empirically establish a link between the
outsider/insider ratio and firm performance.
AACSB: BUSPROG: Reflective Thinking; DISC: Leadership Principles
LO: 11-3; Bloom’s: Knowledge; Difficulty: Moderate
100. Which of the following is true regarding CEO duality?
a. From an agency theory standpoint, if the board is to supervise agents such as
the CEO, it seems imperative that the board be chaired by the same individual.
b. In US firms with CEO duality, the trend now is to appoint a lead independent
director, who chairs the sessions held by outside directors that do not involve
company executives.
c. A corporation led by two top leaders—a board chairman and a CEO - will at
least have unity of command and experience less top-level conflict.
45. d. East Asia and Latin America where most firms have concentrated family
ownership and control, there is less CEO duality.
e. Firms around the world are being pressured to combine the two top jobs.
AACSB: BUSPROG: Reflective Thinking; DISC: Leadership Principles
LO: 11-3; Bloom’s: Knowledge; Difficulty: Moderate
46. SHORT ANSWER ESSAY QUESTIONS
1. You are the founder of a firm that appears to have significant long-term growth
potential. Right now you and your family own 100% of the firm’s shares and you
are trying to figure out to keep things that way. How might you do that? Should
you do that?
2. At this present time, what do you see happening in regards to privatization of
SOEs?
3. Are there potential issues involving economic power and national sovereignty in
the dominant stock ownership position of institutional investors?
4. Can interlocking directorates lead to unfair market advantages and investor
exploitation? How?
5. What is the potential relationship between concern about a board dominated by
insiders and concern about excess executive pay?
CHAPTER 12 – STRATEGIZING WITH CORPORATE SOCIAL
RESPONSIBILITY
TRUE/FALSE QUESTIONS
101. A stakeholder is “any group or individual who can affect or is affected
by the achievement of the organization’s objectives.”
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Group Dynamics
LO: 12-1; Bloom’s: Knowledge; Difficulty: Easy
102. Nearly all CSR advocates argue for a revival of socialism in the world.
a. True b. False
AACSB: BUSPROG: Ethics; DISC: Group Dynamics
LO: 12-1; Bloom’s: Knowledge; Difficulty: Easy
103. The more concentrated an industry is, the more likely that competitors
will recognize their mutual interdependence based on old ways of doing
business that are not up to the higher CSR standards.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Group Dynamics
LO: 12-2; Bloom’s: Comprehension; Difficulty: Moderate
47. 104. Companies have had their CSR policies certified by NGOs that might
otherwise be hostile.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Ethical Responsibilities
LO: 12-2; Bloom’s: Knowledge; Difficulty: Easy
105. Firms pursuing a reactive CSR strategy actively participate in policy
discussions, build alliances with stakeholder groups, and voluntarily go
beyond what the regulations require.
a. True b. False
AACSB: BUSPROG: Ethics; DISC: Ethical Responsibilities
LO: 12-2; Bloom’s: Comprehension; Difficulty: Easy
106. Since each firm is different (a basic assumption of the resource-based
view), not every firm’s economic performance is likely to benefit from CSR.
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 12-2; Bloom’s: Comprehension; Difficulty: Easy
107. A key goal for CSR is global sustainability, which is defined as the
ability “to meet the needs of the present without compromising the ability of
future generations to meet their needs.”
a. True b. False
AACSB: BUSPROG: Ethics; DISC: Strategy
LO: 12-2; Bloom’s: Knowledge; Difficulty: Moderate
108. According to the text, one driver of CSR in the twenty-first century is
the declining levels of population in some countries.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Environmental Influence
LO: 12-2; Bloom’s: Knowledge; Difficulty: Easy
109. The anti-WTO protests in Seattle in 1999 are indicative of resentment
against globalization and a perceived lack of CSR in firms, particularly those
that relocate offices (and jobs) to foreign countries.
a. True b. False
AACSB: BUSPROG: Ethics; DISC: Group Dynamics
LO: 12-2; Bloom’s: Comprehension; Difficulty: Moderate
110. Compared with the relatively expanded power of national governments
in the wake of globalization, NGOs and other civil society stakeholders have
lost the ability to affect firms and their management or to impact legislation.
a. True b. False
AACSB: BUSPROG: Ethics; DISC: Group Dynamics
48. LO: 12-2; Bloom’s: Analysis; Difficulty: Moderate
111. Suppliers and customers are typically considered primary stakeholders.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Group Dynamics
LO: 12-1; Bloom’s: Knowledge; Difficulty: Easy
112. Primary stakeholder groups are defined as “those who influence or
affect, or are influenced or affected by, the corporation, but they are not
engaged in transactions with the corporation and are not essential for its
survival.”
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Group Dynamics
LO: 12-1; Bloom’s: Knowledge; Difficulty: Easy
113. Milton Friedman, a University of Chicago economist and Nobel
laureate, suggested: “The business of business is business.”
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 12-1; Bloom’s: Knowledge; Difficulty: Easy
114. Advocates of shareholder capitalism argue that if firms attempt to
attain social goals, it will actually help them focus on profit maximization (and
its derivative, shareholder value maximization).
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Strategy
LO: 12-1; Bloom’s: Knowledge; Difficulty: Easy
115. The more concentrated an industry is, the more likely that competitors
will recognize their mutual interdependence based on old ways of doing
business that are not up to the higher CSR standards.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Group Dynamics
LO: 12-2; Bloom’s: Comprehension; Difficulty: Moderate
116. The five forces framework reinforces the important point that all
industries are equal in terms of their exposure to CSR challenges.
a. True b. False
AACSB: BUSPROG: Ethics; DISC: Ethical Responsibilities
LO: 12-2; Bloom’s: Comprehension; Difficulty: Easy
117. There is no conclusive evidence of a direct, positive link between CSR
and economic performance, such as profits and shareholder returns.
a. True b. False
49. AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 12-2; Bloom’s: Knowledge; Difficulty: Easy
118. Reactive Strategy often involves an “out of sight, out of mind”
mentality.
a. True b. False
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 12-2; Bloom’s: Comprehension; Difficulty: Easy
119. Although framed in a domestic versus overseas context, the heart of
this debate boils down to the foundational thorny point that frustrates CSR
advocates: In a capitalist society, the shareholders—otherwise known as
capitalists—are the ones who matter at the end of the day.
a. True b. False
AACSB: BUSPROG: Reflective Thinking; DISC: Ethical Responsibilities
LO: 12-1; Bloom’s: Analysis; Difficulty: Moderate
120. The idea that MNEs should not interfere in the domestic political
affairs of the host country has been enshrined in a number of codes of MNE
but CSR advocates have stressed the necessity for MNEs to engage in actions
that often constitute political activity.
a. True b. False
AACSB: BUSPROG: Ethics; DISC: Ethical Responsibilities
LO: 12-3; Bloom’s: Knowledge; Difficulty: Moderate
MULTIPLE CHOICE QUESTIONS
101. CSR tends to be the least concerned with improving:
z. Global sustainability.
aa. Shareholder wealth maximization.
bb. Rising levels of population.
cc.Inequity.
dd. High levels of poverty in some countries.
AACSB: BUSPROG: Ethics; DISC: Ethical Responsibilities
LO: 12-1; Bloom’s: Comprehension; Difficulty: Easy
102. NGOs have the ability to:
z. Affect firms’practices.
aa.Influence firms’ management.
bb. Impact legislation.
cc.All of the above.
dd. None of the above
AACSB: BUSPROG: Analytic; DISC: Group Dynamics
50. LO: 12-1; Bloom’s: Comprehension; Difficulty: Moderate
103. Secondary stakeholder groups are:
z. Constituents on whom the firm relies for its continuous survival and prosperity.
aa.Those who do not influence or affect the corporation.
bb. Not influenced or affected by the corporation.
cc.Not engaged in transactions with the corporation and are not essential for its
survival.
dd. B through D above.
AACSB: BUSPROG: Analytic; DISC: Group Dynamics
LO: 12-1; Bloom’s: Knowledge; Difficulty: Moderate
104. The CSR debate centers on the question:
z. Why does the firm exist?
aa.Why does private property exist?
bb. What laws are needed to control the firm’s behavior?
cc.What can be done to prevent unreasonable profits?
dd. All of the above.
AACSB: BUSPROG: Reflective Thinking; DISC: Ethical Responsibilities
LO: 12-1; Bloom’s: Analysis; Difficulty: Moderate
105. Free market advocates tend to do all of the following except:
z. Argue that “the social responsibility of business is to increase its profits,
which leads to efficient capital and product markets.”
aa. Argue that all stakeholders have an equal right to bargain for a “fair deal.”
bb. Believe that the first and foremost stakeholder group is shareholders.
cc. Argue that if firms attempt to attain social goals, managers will lose their
focus on profit maximization.
dd. Fear that firms will become like SOEs.
AACSB: BUSPROG: Reflective Thinking; DISC: Ethical Responsibilities
LO: 12-1; Bloom’s: Analysis; Difficulty: Moderate
106. Those who advocate CSR:
z. Conduct their debate within the constraints of capitalism.
aa.Argue that a humane capitalism is an oxymoron and unattainable.
bb. Argue that the concepts justice and fairness are simply matters of opinion.
cc.Argue that the most important stakeholder is the stockholder.
dd. None of the above.
AACSB: BUSPROG: Ethics; DISC: Ethical Responsibilities
LO: 12-1; Bloom’s: Knowledge; Difficulty: Moderate
107. Using the five forces model, which will likely result in a higher level of CSR?
z. A highly concentrated industry.
51. aa.Existence of incumbents.
bb. Socially and environmentally conscious suppliers with standardized products
that have multiple substitutes.
cc.No monitoring program for all supplier factories.
dd. Substitutes that are superior to existing products and costs are reasonable.
AACSB: BUSPROG: Analytic; DISC: Ethical Responsibilities
LO: 12-2; Bloom’s: Analysis; Difficulty: Challenging
108. Which is not true about CSR?
z. Some CSR policies may reduce the firm’s value.
aa.CSR policies may not pay off if common.
bb. CSR that is embedded in people is easier to imitate.
cc.Organization: a firm needs to tie together CSR activities.
dd. It is difficult to prove a link between CSR and economic performance.
AACSB: BUSPROG: Ethics; DISC: Strategy
LO: 12-2; Bloom’s: Analysis; Difficulty: Challenging
109. Which of the following is an accommodative CSR strategy?
a. Neither for or against CSR.
b. Resist imposition of what seems unreasonable.
c. View CSR as worthwhile.
d. Actively participate in CSR policy discussion.
e. Voluntarily go beyond what the regulations require.
AACSB: BUSPROG: Ethics; DISC: Strategy
LO: 12-2; Bloom’s: Comprehension; Difficulty: Challenging
110. Those who feel that firms that expand into emerging economies are failing
their CSR responsibilities are most likely to claim that it:
z. Potentially hurts corporate profits.
aa. Reduces shareholder returns.
bb. Fails to provide employment to host countries.
cc. Reduces the standard of living in host countries.
dd. Domestic employees and communities pay the price for the overseas
expansion.
AACSB: BUSPROG: Analytic; DISC: Ethical Responsibilities
LO: 12-3; Bloom’s: Knowledge; Difficulty: Easy
111. There is agreement throughout society that:
z. Overseas expansion is good because it helps improve standards of living
around the world.
aa.Overseas expansion is bad because it causes loss of jobs in the home country.
bb. Firms should stick strictly to business within a country and not seek to impose
their views of human rights on other countries that have different views.
cc.Firms have a responsibility to do whatever is necessary to assure that the
human rights that are respected in the home country are implemented in host
countries.
dd. None of the above.
52. AACSB: BUSPROG: Analytic; DISC: Ethical Responsibilities
LO: 12-3; Bloom’s: Knowledge; Difficulty: Moderate
112. An example of a primary stakeholder group is:
u. Media.
v. Social activists.
w. Environmental groups.
x. Employees.
y. Fair labor practice groups.
AACSB: BUSPROG: Analytic; DISC: Group Dynamics
LO: 12-1; Bloom’s: Comprehension; Difficulty: Moderate
113. An example of a secondary stakeholder group is:
z. Social and environmental groups.
aa. Suppliers.
bb. Customers.
cc. Governments.
dd. Communities.
AACSB: BUSPROG: Analytic; DISC: Group Dynamics
LO: 12-1; Bloom’s: Comprehension; Difficulty: Moderate
114. In regards to managers and CSR, the following is true except:
z. All sides of the CSR debate agree that they have a unique and central role.
aa. All sides of the CSR debate agree as to how they should implement their role.
bb. As a stakeholder group they are unique in terms of potential coordination.
cc. They are positioned at the center of all the stakeholder relationships.
dd. They make decisions on behalf of the firm that affect other stakeholders.
AACSB: BUSPROG: Ethics; DISC: Leadership Principles
LO: 12-1; Bloom’s: Comprehension; Difficulty: Challenging
115. In regard to the extent of CSR challenges, the following is true except:
a. All industries are equal in terms of their exposure to CSR challenges.
b. Energy- and materials-intensive industries (such as chemicals) have been
criticized.
c. Firms that are major outsourcers in foreign countries have been criticized.
d. Some firms have turned to NGO critics to have the NGOs certify their policies.
e. None of the above.
AACSB: BUSPROG: Reflective Thinking; DISC: Ethical Responsibilities
LO: 12-2; Bloom’s: Comprehension; Difficulty: Moderate
116. In regards to the link between CSR and economic performance:
z. There is no conclusive evidence of a direct, positive link between CSR and
economic performance.
53. aa.Some studies report a positive relationship.
bb. Some studies find a negative relationship or no relationship.
cc. It appears some firms are not cut out for a CSR-intensive strategy.
dd. All of the above.
AACSB: BUSPROG: Analytic; DISC: Strategy
LO: 12-2; Bloom’s: Knowledge; Difficulty: Moderate
117. The instrumental view of CSR advocates who are skeptical of CSR
compliance claims:
z. That firms may not necessarily be sincere.
aa. That firms may be compelled to appear to be sensitive to CSR by impression
management—in other words, “window dressing.”
bb. That many firms may chase fads by following what others are doing, while not
having truly internalized the need for CSR.
cc. That CSR activities simply represent a useful means to help make good
profits. Firms are not necessarily becoming more “ethical.”
dd. All of the above
AACSB: BUSPROG: Ethics; DISC: Group Dynamics
LO: 12-2; Bloom’s: Knowledge; Difficulty: Moderate
118. Some CSR advocates who question motives of firms implementing CSR are
pleased that:
z. Firms are embarking on some tangible CSR journey.
aa. CSR’s legitimacy is rising on the organizational agenda.
bb. By adopting codes of conduct (even if only for “window dressing” purposes),
they create a set of criteria against which they can be judged.
cc. All of the above.
dd. None of the above.
AACSB: BUSPROG: Ethics; DISC: Ethical Responsibilities
LO: 12-2; Bloom’s: Knowledge; Difficulty: Moderate
119. Reactive firms:
z. Actively participate in regional, national, and international policy discussions.
aa. Often build alliances with stakeholder groups.
bb. Engage in voluntary activities that go beyond what the regulations require.
cc. React negatively to aspects of CSR that may increase costs.
dd. All of the above.
AACSB: BUSPROG: Ethics; DISC: Ethical Responsibilities
LO: 12-2; Bloom’s: Knowledge; Difficulty: Easy
120. From an institutional perspective, proactive activities are indicative of all the
following except:
a. Normative beliefs.
b. Cognitive beliefs.
54. c. The desire to do the right thing.
d. An absence of “window dressing.”
e. A quest for better profits.
AACSB: BUSPROG: Reflective Thinking; DISC: Ethical Responsibilities
LO: 12-2; Bloom’s: Comprehension; Difficulty: Challenging
55. SHORT ANSWER ESSAY QUESTIONS
6. Your firm has sought to be a responsible part of the community and has
sought out ways to implement CSR within your capabilities. However, a news
organization that has been trying to boost its ratings has done a series on your
organization that suggests that your product is harming consumers and the
community’s environment. You believe the reports are totally false but
protests have recently been directed toward your facilities and a politician who
seeking an issue has been loudly condemning your organization? Some of
your shareholders are suggesting that the company takes its losses on the
product by discontinuing it rather than risk further damage to the company and
its reputation. What should you do?
7. Last week you attended a series of lectures at the local university in which the
speakers were discussing the role of corporations (such as yours) overseas.
The first lecturer discussed the role of MNEs over the years as instruments of
national power for the country in which they were based and discussed
instances in which the firms became involved in local politics. The speaker
condemned such companies as imperialists for attempting to impose U.S.
values on foreign nations. The last speaker in the series argued that MNEs
have a responsibility to identify injustice and violation of human rights in the
nations where they operate and to use either persuasion or economic pressure
to bring about change. Whose advice will you follow?
8. A representative of an NGO that has a very significant influence on some your
key stakeholders (especially your customers) has met with you. The person
has indicated that they are considering conducting a campaign against one of
your policies. You feel the policy is totally justified but you have seen how the
organization has smeared and destroyed others that it has targeted. The person
seems to be hinting that perhaps they might launch a campaign against some
other target if you demonstrated CSR by making a big contribution to the
NGO. You feel that you are a victim of extortion but the cost of buying them
off might be less than the damage that they could do to you. What should you
do?
9. Your company has been active in CSR. It has even avoided shutting down its
local factory and moving its production overseas where its labor costs could
be significantly less because it recognizes the harm that would do the
employees and the community. However, the CSR has resulted in a lower
level of profitability and now a corporate raider appears to be ready to launch
a takeover bid for your company. In the past, when that raider has taken over a
company, payrolls have been slashed, all CSR has been discontinued, and
nearly all stakeholders other than some investors have been harmed. What
should you?