Computer MGT 195 2

Q1. Typically, the best method of entry into a foreign market is the establishment of a wholly owned foreign subsidiary so that theparent organization can maintain a high level of control.a. trueb. falseQ2. A key tenet of a transnational strategy is improved adaptation to all competitive situations as well as flexibility by capitalizingon communication and knowledge flows throughout the organization.a. trueb. falseQ3. High levels of environmental awareness in Denmark have led to a decline in Denmark’s industrial competitiveness in theinternational marketplace.a. trueb. falseQ4. Multinational firms following a transnational strategy strive to optimize the tradeoffs associated with efficiency, localadaptation, and learning.a. trueb. falseQ5. Corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy.a. trueb. falseQ6. According to Michael Porter, firms that have experienced intense domestic competition are:a. Unlikely to have the time or resources to compete abroadb. Most likely to design strategies aimed primarily at the domestic marketc. More likely to design strategies and structures that allow them to successfully compete abroadd. More likely to demand protection from their governmentsQ7. Industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategythan those in which more value is added downstream (closer to the customer).a. trueb. falseQ8. Which of the following is a disadvantage of a transnational strategy?a. Less ability to realize cost savings through scale economiesb. Limited ability to adapt to local marketsc. Unique managerial challenges in fostering knowledge transferd. Single locations may lead to higher tariffs and transportation costsQ9. When an industry is mature, a __________ strategy is considered to be one of the most effective approaches for a new entrant.a. Focusb. Differentiationc. Overall low costd. Small businessQ10. The evaluation phase of opportunity recognition includes the ‘Aha!’ experience that often leads to new venture development.a. trueb. falseQ11. Netflix CEO Reed Hastings made this important observation about dealing with rivals:a. ‘In a highly competitive marketplace, firms must be paranoid about the multitude of potential rivals.’b. ‘You can afford to ignore rivals in small markets, but you can never ignore rivals in large markets, such as on-line videocompanies like YouTube.’c. ‘There are tens and maybe hundreds of start-ups who think that they are going to eat Netflix’s lunch. The challenge for amanagement team is to figure out which are real threats and which aren’t.’d. ‘Netflix’s position is so strong that I don’t worry about new entrants.’Q12. Founders using a pioneering new entry strategy look for opportunities to capitalize on proven market successes.a. trueb. falseQ13. Because new ventures are typically small, they usually don’t have high economies of scale relative to competitors.a. trueb. falseQ14. Venture capital is a form of public equity financing used to help young firms rapidly grow.a. trueb. falseQ15. The majority of entrepreneurial start-ups are financed with:a. Bank financingb. Public financing (e.g., SBA loans)c. Venture capital financingd. Personal savings and the contributions of family and friendsQ16. The majority of entrepreneurial start-ups are financed with personal savings and the contributions of family and friends.a. trueb. falseQ17. Intense rivalry involving actions and responses among similar competitors vying for the same customers in a marketplace is knownas:a. Competitive dynamicsb. Resource similarityc. Threat of substitutesd. Pioneering new entryQ18. When countercultures emerge that have shared values opposite from the dominant culture of an organization:a. Organizational cohesiveness increasesb. Information is shared rather than hoardedc. Individuals begin working at cross purposesd. Individuals gain insights into overarching goals and objectivesQ19. The late Sam Walton, founder of Wal-Mart, used to give pep rallies at local Wal-Mart stores. What purpose did this serve?a. It was used to remind employees of Wal-Mart’s rules and regulationsb. It helped reinforce and sustain Wal-Mart’s culturec. It demonstrated to employees the importance of articulating explicit goals and objectivesd. It made Wal-Mart’s reward system very explicitQ20. Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by:a. Posting written statements of the organization’s goals and objectivesb. Discouraging the formation of subcultures that isolate work groupsc. Designing effective reward systemsd. Encouraging employees to see themselves as free agentsQ21. Different functional areas within an organization often have different reward systems.a. trueb. falseQ22. In emerging economies and continental Europe, principal-principal conflicts are frequent. These consist of conflicts betweencontrolling shareholders and executives.a. trueb. falseQ23. An organization’s reward system is typically a weak method of motivating employees.a. trueb. falseQ24. Public companies are required by law to disclose information regarding executive compensation packages.a. trueb. falseQ25. The collective sum of individual behaviors of an organization’s employees generally results in what is best for the organization;thus, individual rationality assures organizational rationality.a. trueb. falseQ26. In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders), the ownership (of equity)is:a. Widely dispersed (5-20% is considered ‘concentrated ownership’)b. Controlled almost completely by managementc. Concentrated—often greater than 50% of equity is controlled by controlling shareholdersd. Often held by employee stock ownership programsQ27. Complete the following sentence: ‘Strategic business unit (SBU) structures are best suited for corporations pursuing __________,whereas holding company structures are best suited for companies with __________ strategies.’a. Product-market diversification, internationalb. International diversification, product-marketc. Related diversification, unrelated diversificationd. Unrelated diversification, related diversificationQ28. Which of the following is an advantage of a functional type of organizational structure?a. Decentralized decision-making enhances an organization-wide perspective across functionsb. It facilitates the development of general management talentc. Pooling of specialists enhances coordination and controld. It is easy to establish uniform performance standardsQ29. The virtual type of organization is a network of independent companies linked together to share skills, costs, and access to oneanother’s markets.a. trueb. falseQ30. Nike is a company that makes use of the concept of ‘product expatriates.’ Product expatriates are:a. Managers from the home country sent abroad to oversee the marketing of a company’s productsb. Managers from suppliers who come to work at a company’s headquartersc. Managers of the company sent abroad to work at the plants of its suppliersd. Local nationals hired by the company in the countries from which it sources productsQ31. If an international firm has a multidomestic strategy and a relatively high level of product diversity, the best choice for itsorganizational structure is:a. Worldwide functionalb. Worldwide product divisionc. Worldwide matrixd. International divisionQ32. A firm’s structure typically has almost no effect on its strategy.a. trueb. falseQ33. An organization such as ConAgra that has dozens of different divisions with similar products will probably have the greatestsuccess with which form of organization structure?a. Functional structureb. Matrix structurec. Strategic business unit structured. Holding company structureQ34. As firms grow, owner managers often need to hire functional specialists to handle the increased information-processing burden.a. trueb. falseQ35. In order to create an environment where employees can achieve their potential as they move the organization towards its goals, themanager’s role needs to be that of:a. Resource allocatorb. Resource controllerc. A flexible resourced. An advocator of the status quoQ36. ‘Open book’ management is a technique for gathering and disseminating internal information so that all employees can be involvedin decision making and management.a. trueb. falseQ37. The trend among many organizations is toward forms of empowerment that rely on trust, team building, and the expertise ofemployees at all levels.a. trueb. falseQ38. Functional benchmarking:a. Is not very useful for organizations with a divisional organizational structureb. Endeavors to determine best practices regardless of industryc. Restricts the search for best practices to competitorsd. Is useful when researching industry-specific standardsQ39. Competitive benchmarking is a method of seeking the best examples of practices or processes that have essentially the samefunction regardless of industry.a. trueb. falseQ40. Although many organizations encourage creativity and risk taking, few successful companies tolerate failure.a. trueb. falseQ41. Leaders who fail to institute proper systems and controls that facilitate ethical conduct share responsibility with those whoconceive, execute, and knowingly benefit from corporate misdeeds.a. trueb. falseQ42. Emotional intelligence (EI) is one of the components of a high intelligence quotient (IQ).a. trueb. falseQ43. The term ‘strategic envelope’ refers to the scope of a firm’s innovation efforts.a. trueb. falseQ44. One of the pitfalls of real options analysis is that managers may have an incentive and know-how to ‘game the system’ and ‘back-solve’ a formula to get a proposal approved. This can give rise to:a. Managerial conceitb. The illusion of controlc. Escalation of commitmentd. Agency problemsQ45. Which of the following statements about skunkworks is false?a. They are independent work unitsb. They are used to encourage creative thinking and brainstormingc. They refer to a specialized type of outside contractor that corporations use to develop entrepreneurial ideasd. They help managers set aside their usual routines and practicesQ46. Corporate ventures that use real options logic in decision making tend to keep total investment low in order to minimize thedownside risk of a project.a. trueb. falseQ47. Dispersed approaches to corporate entrepreneurship are often found in organizations with a strong spirit of entrepreneurship.a. trueb. falseQ48. The strategic goals of corporate entrepreneurship are often just as important as the financial goals.a. trueb. falseQ49. Process innovations are often associated with a low cost leadership strategy.a. trueb. falseQ50. __________ produce fundamental changes that can transform a company or even revolutionize an industry; __________ enhance existingpractices and often represent evolutionary applications of fundamental breakthroughs.a. Technological breakthroughs; product-market breakthroughsb. New technologies; new paradigmsc. Incremental innovations; radical innovationsd. Radical innovations; incremental innovations