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Chaminade MBA800 final exam

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Question;Question 1.1. Which of the following is NOT a factor;pressuring companies for local responsiveness? (Points: 1);the need for;local repair and service to customers;customization;due to cultural differences;government;pressure for firms to use local sources for procurement;availability of low labor costs;Question 2.2. U.S. cola companies entered the global market;because of: (Points: 1);limited growth opportunities in;their domestic market.;lower labor;costs in the emerging markets.;economies of;scale that offset research and development costs.;an increase in;the return on investment from their U.S. bottling plants.;Question 3.3. A large domestic market can provide the;country's industries a chance at dominating the world market because: (Points;1);they have been able to develop;economies of scale at home.;they have;access to abundant and inexpensive factors of production.;the related and;supporting industries will have been developed.;the nation's;culture and educational system will be adapted to producing the labor force;needed for the industry.;Question 4.4. A global corporate-level strategy emphasizes;(Points: 1);differentiated;products.;economies of scale.;sensitivity to;local product preferences.;decentralizing;control and limited monitoring.;Question 5.5. Terrorist attacks: (Points: 1);encourage firms;to take truly global corporate strategies in order to offset losses in one;region with gains in another.;are considered a "cost of;doing business" by international firms.;have not;decreased the level of international investment in any region except those;involved in active wars.;increase the;liability of foreignness for firms.;Question 6.6. In a(n) ______________, the firms involved own;equal shares of a newly-created venture. (Points: 1);equality-based;strategic alliance;non-equity;strategic alliance;joint venture;equity;strategic alliance;Question 7.7. A state-wide alliance of independent hospitals;has formed in order to do group purchasing of medical supplies. Group purchasing allows the hospital alliance;to negotiate lower prices with suppliers because of the large quantity of;materials ordered. This is an example of;resulting from an alliance. (Points: 1);explicit;collusion;economies of scale;opportunistic;behavior;distribution;opportunities;Question 8.8. Partners in a horizontal alliance can expect;(Points: 1);benefits;proportional to their investments.;similar;opportunities as a result of the alliance.;common;management issues.;different outcomes.;Question 9.9. The three main luxury hotels in a major;tourist destination keep very close track of their competitors' room pricing;restaurant offerings, tour packages, and special services, such as airport;transportation and spa privileges. When;one hotel makes adjustments in prices or offerings, the other hotels follow;suit. It is possible that these hotels;are: (Points: 1);engaging in tacit collusion.;following;uncertainty reducing strategies.;monitoring business;competitors for opportunistic behaviors.;following a;competitive response strategy.;Question 10.10. Corporate governance revolves around the;relationship between which two parties? (Points: 1);shareholders;and the board of directors.;shareholders and managers.;the board of;directors and managers.;none of the;above.;Question 11.11. Amos Ball, Inc., is a printing company in;Iowa that has been family owned and managed for three generations. Which of the following statements is most;likely to be true? (Points: 1);Agency costs at;Amos Ball are high.;If research findings are valid;Amos Ball, Inc. will perform better if a family member is a CEO than if an;outsider is CEO.;At Amos Ball;the opportunity for managerial opportunism is high.;The functions;of risk-bearing and decision-making are separate at Amos Ball.;Question 12.12. Product diversification provides two;benefits to managers that do not accrue to shareholders, _____ and _______.;(Points: 1);a greater experience in a wider;range of industries, lessening of managerial employment risk.;the manager;frequently invests in the acquired firm which allows him or her extensive;profits, the manager can frequently buy excess assets divested by the acquired;firm.;the manager's;supervisory needs are lowered, the manager is allowed greater time to oversee a;wider range of activities.;the opportunity;for higher compensation through firm growth, a reduction in managerial;employment risk.;Question 13.13. All of the following are unintended;consequences of the Sarbanes-Oxley Act except: (Points: 1);some foreign;firms have delisted on U.S. stock exchanges.;a number of;publicly-traded companies have decided to privatize.;an increased number of IPOs;(initial public offerings) are expected.;internal;auditing costs have increased by about one-third.;Question 14.14.;Which of the following does NOT cause a firm to move from a;functional structure to a multidivisional structure?;(Points: 1);increasing;diversification;coordination;and control issues;need for knowledge-sharing among;specialists;greater amounts;of data and information to process;Question 15.15. One reason why a long-tenured top-level;manager may hesitate to conclude the firm's structure is a problem is that;doing so: (Points: 1);indicates to;competitors that the firm is vulnerable to a hostile takeover.;will only lead;to inefficiencies.;requires the;firm undertake multi-year restructuring period that delay retirement.;suggests that their previous;choices were not the best ones.;Question 16.16. Which of the following is NOT associated;with an organizational structure that supports a cost leadership strategy?;(Points: 1);centralization;specialization;formalization;integration;Question 17.17. Successful implementation of the;differentiation strategy requires a structure that: (Points: 1);has specialized;jobs.;decentralizes decision-making.;focuses on the;financial function.;is dominated by;the operations function.;Question 18.18.;Executive headhunters have approached Charles about taking;the position of senior vice president of marketing for a well-known company.;Although this company has been highly successful since 1995, Charles has heard;persistent rumors of overly aggressive marketing tactics, questionable;reporting of sales data, and an atmosphere of intolerance of criticism. The CEO;is a powerful and charismatic individual, who built the company from a small;regional firm to an international powerhouse in only a decade. The other top;managers have been hand-picked by the CEO, as have a number of the members of;the board of directors. The salary for this position is very high and includes;generous stock options. It would be a major step up in Charles? career and;would position him to move to CEO of another company in the future. Charles has;prided himself on his high moral values and is viewed as an exceptionally;ethical person by his peers. What should Charles do?;(Points: 1);Charles should;take the job because he can effect real change in the culture of the;organization, and take advantage of the personal financial and career;opportunities.;Charles should;realize that personal moral values and the realities of the corporate world;differ in both quality and degree. Consequently, he can take a job in an;ethically borderline company without tainting his personal moral standing.;Charles should;not rely on rumors to dissuade him from making an advantageous career decision.;Charles should not take the job;because the culture of the organization is set by the CEO and other top;managers. He would have little influence on the organizational culture as one;of many top managers.;Question 19.19. The more heterogeneous the top management;team, the: (Points: 1);more difficult it will be for;the team to implement strategies.;more likely it;is that the team will be cohesive.;less innovative;the team's decisions will tend to be.;less diverse;the team membership will be.;Question 20.20. Which of the following is NOT related to a;CEO having long tenure in his or her position? (Points: 1);more effective;strategic control;greater;influence on board decisions;more limited;perspective;high level of innovation;Question 21.21. Which of the following statements is TRUE;regarding effective organizational cultures? (Points: 1);Once a corporate;culture is developed, strategic leaders can focus on other activities.;A strategy that;is historically new for a firm should be implemented by incremental changes in;the organization's culture.;A central task;of strategic leaders is to revise the corporate culture on an annual basis;after analyzing the changes occurring in the competitive environment.;Organizational culture can be a;source of competitive advantage because it influences employee behavior and how;the firm conducts its business.;Question 22.22. When an existing firm creates a new venture;or develops an innovation, it is said to be engaging in;(Points: 1);corporate;emergence.;transformational leadership.;exceptional R;D.;corporate entrepreneurship.;Question 23.23. GreenBox, a company that recycles paper;products to make cardboard cartons, has introduced a new product that resists;damage by moisture. GreenBox can expect;that: (Points: 1);this innovation;will resist competitors' attempts to imitate it.;its investors will react;positively to the introduction of the new product because of the potential for;higher returns.;its investors;will react negatively because of the risk and cost entailed in introducing a;new product.;this will be;recognized in the industry as a radical innovation.;Question 24.24. _______is one of the reasons for the;differences in rates of entrepreneurship among different countries. (Points;1);Climate;Competitiveness;Culture;Constitution;Question 25.25. Which of the following is true? For firms to;be entrepreneurial, they require a culture with;(Points: 1);an emphasis on;individualism in Western nations and an emphasis on collectivism in Eastern;nations.;an;exceptionally high level of collectivism.;a balance of individualism and;collectivism.;an;exceptionally high level of individualism.;Question 26.26. The example of General Motors' business in;China and Europe vividly illustrates that a firm's home market, not;international markets, is always responsible for the majority of profits. (Points: 1);True;False;Question 27.27. The liability of foreignness has become an;obsolete concern, as illustrated by the success of many U.S. firms overseas and;the success of foreign companies in the U.S. (Points: 1);True;False;Question 28.28. Having substantial supplies of critical;basic natural resources is a necessary condition for a country to support;businesses which can successfully compete in international markets. (Points: 1);True;False;Question 29.29. A multidomestic strategy assumes that;consumer needs, industry conditions, and social norms are homogeneous in every;country. (Points: 1);True;False;Question 30.30. A company that chooses a truly global;corporate-level strategy assumes that the liability of foreignness will be;minimal. (Points: 1);True;False;Question 31.31. A cooperative agreement between a hotel;chain and a casino operator would be viewed as a horizontal complementary;strategic alliance because as separate entities, the two firms would compete;for the same customer. (Points: 1);True;False;Question 32.32. Using business-level strategic alliances to;hedge against risk and uncertainty is most common in the slow-cycle markets.;(Points: 1);True;False;Question 33.33. A stable alliance network is used in;industries characterized by frequent project innovations and short product life;cycles. (Points: 1);True;False;Question 34.34. Close monitoring, formal contracts and;constant vigilance against opportunism increase the probability of alliance;success. (Points: 1);True;False;Question 35.35. Amelia Smith is the sole owner of the;successful restaurant chain, Amelia's Cafe.;Ms. Smith has taken a no-interest loan from the company in order to;build a luxurious seaside house for herself in Carmel, California. This constitutes a classic agency problem.;(Points: 1);True;False;Question 36.36. As a rule, shareholders prefer more product;diversification than do managers because shareholders wish to reduce risk and;maximize wealth. (Points: 1);True;False;Question 37.37. A board comprised primarily of outside;directors will have better insights as to the firms intended strategic;initiatives, the reasons for the initiatives, and the outcomes expected from;them than will inside directors. (Points;1);True;False;Question 38.38. Executives whose bonuses are based on;long-term outcomes (rather than short-term outcomes) by the firm are often;relatively overcompensated because executive are reluctant to take on the;additional risk. (Points: 1);True;False;Question 39.39. RexMacDonald, Inc. uses a differentiation;strategy that relies on cooperation, communication and sharing of ideas among;employees. In order to foster this;behavior, RexMacDonald should emphasize strategic controls over financial;controls. (Points: 1);True;False;Question 40.40. Firms using the differentiation strategy;need to respond quickly to environmental opportunities and threats. The functional structure is effective for;this strategy because of its centralization of decision-making. (Points: 1);True;False;Question 41.41. Internal competition for corporate resources;is effective for companies with an unrelated diversification strategy, but;dysfunctional for companies with a related-constrained strategy. (Points: 1);True;False;Question 42.42. The organizational structure for an;internationally diversified firm requires trade-offs between global integration and local market;responsiveness. (Points: 1);True;False;Question 43.43. In order for the strategic leader to;survive, he or she needs to make optimal decisions for the organization.;(Points: 1);True;False;Question 44.44. Board members with substantive expertise in;the firm's core functions and businesses aids the effectiveness of the top;management team. (Points: 1);True;False;Question 45.45. When a new CEO is selected from outside the;firm, a change of strategy is likely, especially if the top management team is;homogeneous and highly cohesive. (Points;1);True;False;Question 46.46. To influence employee's judgment and;behavior, ethical practices must shape the firm's decision-making process, but;should be a peripheral part of organizational culture. (Points: 1);True;False;Question 47.47. Regarding competition and markets;entrepreneurship's primary focus is to capture most of the existing markets;from less aggressive and innovative competitors. (Points: 1);True;False;Question 48.48. A firm that innovates through imitation can;expect to produce a product for a niche market, since the general market for;the standardized product will be dominated by early adopters. (Points: 1);True;False;Question 49.49. The entrepreneurial mind-set is found;primarily among managerial and scientific employees. (Points: 1);True;False;Question 50.50. Netflix developed a subscription-based model;of DVD rental based on using the Internet and the mail instead of the retail;location approach used by Blockbuster.;This innovative subscription service would be correctly classified as a;competence-destroying innovation because of its devastating impact on;traditional movie rental businesses such as Blockbuster. (Points: 1);True;False;Question;51. 51. What factors limit the positive outcome of international expansion?;(Points: 4);Question;52. 52. What is a strategic alliance? What are the three types of;strategic alliances firms use to develop a competitive advantage? (Points: 4);Question;53. 53. How can corporate governance foster ethical strategic decisions and;behaviors on the part of managers as agents? (Points: 4);Question;54. 54. What is organizational structure and what are organizational controls?;(Points: 4);Question;55. 55. What is organizational culture? What must strategic leaders do to;develop and sustain an effective organizational culture? Please provide;an example. (Points: 4);Question;56. 56. What is strategic entrepreneurship? What is corporate;entrepreneurship?

 

Paper#45782 | Written in 18-Jul-2015

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