Reference no: EM133213210

Assignment:

Question 1. Generally, as the level of ________ innovation declines, the level of ________ innovation increases.

• process; product
• product; process
• product; radical
• process; incremental

Question 2. Andrea Ovans, in her Harvard Business Review article on business models, defines business models as _______.

• a term that can mean many different things, depends on who is using it
• the formal document with revenue and cost projections you must prepare in order to get a business loan
• the aggregation of all your functional models, such as your marketing model, your HR model, and your accounting model
• the overall cost structure compared to the revenue sources

Question 3. Which of the following statements is true of an equity alliance?

• In an equity alliance, a standalone organization is created that is jointly owned by two or more parent companies.
• An equity alliance creates weaker ties between the alliance partners when compared to a nonequity alliance.
• An equity alliance is based on contractual agreements rather than partial ownership.
• In an equity alliance, the partners frequently exchange personnel to make the acquisition of tacit knowledge possible.

Question 4. Sonron Auto Corporation generates 85 percent of its annual revenues by manufacturing luxury cars. The company derives 15 percent of its annual revenues by selling its sports merchandise that includes apparel, shoes, and other accessories under the same brand name. Which of the following terms best describes Sonron Auto Corporation?

• a conglomerate
• a subsidiary
• a dominant-business firm
• a single-business firm

Question 5. Susan owns a firm that is considered fully integrated. Which of the following statements below would best describe a firm that is fully integrated?

• Susan's firm is still reliant on certain key suppliers in the industry value chain.
• Susan's firm is a single-business organization.
• All of Susan's business activities are conducted within the boundaries of the firm.
• Susan's firm is more than likely a conglomerate.

Question 6. Which quadrant in the core competence-market matrix is the hardest to pursue?

• building new core competencies to protect and extend current market position
• leveraging core competencies to improve current market position
• building new core competencies to create & compete in markets of the future
• redeploying and recombining core competencies to compete in markets of the future

Question 7. Delos Autos Inc., a large automobile company, made an initial small investment in a start-up company that was developing a solar-powered car. This gave Delos Autos controlling interests in the start-up company. However, Delos Autos had no obligations to make continued investments in the experiments of the start-up company. It could invest small amounts depending on the new product's success at each stage of its development. If the product proved to be successful, Delos Autos would have the right to buy out the start-up company. This approach to strategic alliance is referred to as

• transaction cost economics.
• a break-even analysis.
• a real-options perspective.
• credible commitment.

Question 8. Codehow Inc. is a large firm involved in the highly competitive market of high-tech medical equipment. In this market, smaller firms that focus on research are constantly making new technological developments. Which of the following approaches would best serve the needs of Codehow?

• serial mergers
• mergers
• acquisitions
• serial acquisitions

Question 9. ________, which captures the cultural fit between different firms, is one key element needed when selecting an alliance partner.

• Partner commitment
• Joint ventures
• Partner compatibility
• Partner competency

Question 10. Hooli Computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. How will this decision affect the firm?

• The firm's administrative costs will be low because of necessary bureaucracy.
• The firm will have high-powered incentives, such as hourly wages and salaries.
• The firm will be protected against the principal-agent problem.
• The firm will have more flexibility in purchasing and comparing prices of goods and services.

Question 11. According to Michael Porter, in his Harvard Business Review article, From Competitive Advantage to Corporate Strategy, corporate strategy cannot succeed unless it ________.

• truly adds value to business units
• leads to expansion in international markets
• leverages the gains from mergers and acquisitions
• first takes care of its employees

Question 12. Grace wants to form a voluntary arrangement with another firm in order to gain more flexibility in her supply chain, complementarity to a few of her support activities via her value chain, and strengthen her firm's overall competitive position. Grace is looking for a simple and common type of alliances, like

• a joint venture.
• a nonequity alliance.
• an equity alliance.
• a merger.

Question 13. The Harvard Bussiness Review article on why company culture is a misleading term by John Traphagan __________.

• tells the story of two companies, one with a good culture and one with a bad culture
• gives a history of corporate culture in the U.S.
• reports on a scientific study that looked at the impact of culture on firm performance
• cautions against using an over-simplistic view of culture

Question 14. The University of Central Florida has a typical College of Business which houses several specific mini-departments such as management, marketing, finance, accounting, economics, and real estate. This College of Business best resembles a(n) ________ structure.

• simple
• multidivisional
• holarchy
• functional

Question 15. Umbrella Corp is a notebook manufacturing company based in Ohio. Umbrella Corps' main market is Texas. It aims at providing its products at better prices than its competitors. Which of the following structures is Umbrella Corp likely to use if it has functional setup?

• organic
• simple
• matrix
• mechanistic

Question 15. Which of the following statements is true of strategy in an organization?

• To implement a strategy successfully, an organization's structure must be rigid.
• Organizational structure must follow strategy in order for firms to achieve superior performance.
• Strategy implementation is considered unsuccessful if it requires changes within an organization.
• Strategy implementation does not affect resource allocation and power distribution within an organization.

Question 16. In The Economist Schumpeter article on what businesses can learn from the post-war French philosopher Michel Foucault, the author argues how businesses __________ can have a significant effect on firms' success.

• organize their financial and tax records
• record their revenues and expenses
• manage the business form they are perceived to have
• monitor and control their employees' social media activity

Question 17. Leslie has completed the organizational design of her firm but is now interested in the second key informal building block, which she believes will help her firm achieve a competitive advantage. Specifically, she's interested in how things will get done on a day-to-day basis and the intangible piece of her organization that cannot be easily codified. Leslie wants to build an effective

• list of standard operating procedures.
• organizational culture.
• employee handbook.
• innovation strategy.

Question 18. Which of the following real-world scenarios best exemplifies the use of organizational culture to build competitive advantage?

• GM offers compensation if its products do not meet a consumer's expectations.
• W. L. Gore & Associates organizes its employees into project-based teams.
• Southwest Airlines pilots sometimes help load baggage, which results in quick turnaround time.
• Apple develops high-tech products that are preferred by consumers across the world.

Question 19. Employees learn about an organization's culture through the process of

• acculturation.
• exploitation.
• socialization.
• co-opetition.

Question 20. Paul runs an organization that implements a cost-leadership strategy. This business-level strategy supports both a ________ and ________ structure.

• functional; mechanistic
• matrix; organic
• simple; organic
• M-form; vertical

Question 21. Which of the following types of groups is most susceptible to groupthink?

• a heterogeneous group
• a cohesive group
• a decentralized group
• a diverse group

Question 22. In the blog post on the International Business Concepts Explored website on the CAGE Framework, the author points out that when Gerber attempted to expand into Africa, consumers interpreted Gerber's advertisements with a plump white skined child to mean Gerber sold food ________, rather than food for babies.

• homemade
• that was small
• for people who are small but overweight
• for white Afrikaners

Question 23. In the Freakonomics podcast episode about the supply chain issues caused by the Covid pandemic, one of the reasons why food supply chains have been disrupted is _______.

• restaurants tend to order in smaller quantities than consumers
• the supply chain for restaurants is different than the supply chain for grocery stores
• there is less regulations in the restaurant supply chain than in the consumer supply chain
• restaurants typically pay more for food than consumers

Question 24. In his Marketplace video on the winners and losers of globalization, Scott Tong argues that the exchange of _______ is the most significant product or service that is being moved around with global trade.

• timber and agriculture
• ideas
• currency and precious metals
• raw materials

Question 25. Tariffs, trade quotas, restrictions on foreign direct investment, and preferences for domestic competitors are all examples of _______ distance in Pankaj Ghemawat's CAGE model from his Harvard Business Review article on global expansion.

• administrative
• socio-cultural
• financial
• judicial

Question 26. Teresa wants to take her firm internationally but is concerned with the ________, which refers to the possibility of higher costs of doing business in an unfamiliar cultural and economic environment.

• geopolitical climate
• foreign direct investment
• liabilities of foreignness
• transactional strategy

Question 27. Under the CAGE distance framework, the administrative and political distance between two countries primarily increases with

• differences in climates and time zones.
• the absence of a trading bloc.
• the lack of connective ethnic and social networks.
• physical remoteness.

Question 28. Which of the following statements best explains why Walmart is finding it difficult to replicate its existing business model in India?

• because of the political differences between India and the United States
• because of the large economic distance between the United States and India
• because Indian consumers have not accepted Walmart's low-cost strategy
• because NAFTA prohibits Walmart from investing in countries outside North America

Question 29. According to Pankaj Ghemawat, in his Harvard Business Review article on global expansion, countries that have prohibitions on bribery and have more stringent health, safety, and environmental policies tend to have _______ of international business investment.

• lower levels
• declining levels
• higher levels
• negligible levels