Final Exam - FINAL REVIEW 1 Complementor product(p.113 A...

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FINAL REVIEW 1. Complementor product (p.113) A company or industry whose products work well with a firm’s product and without the product, would lose much of its value. Ex. Tire and automobile industries 2. Job rotation vs. job enrichment (p.307) Job rotation is used for moving workers through several jobs to increase variety. They are used by many large corporations to ensure that employees are gaining the appropriate mix of experience to prepare them for future responsibilities. Job enrichment is done by altering the jobs and giving the worker more autonomy and control over activities. 3. Entrepreneurial strategy formulation (p.26) Strategy is made by one powerful individual. The focus is on opportunities; problems are secondary. Strategy is guided by the founder’s own vision of direction and is exemplified by large, bold decisions. The dominant goal is growth of the corporation. 4. Due care (p.46) The careless director or directors can be held personally liable for the harm done. 5. Structural characteristics of old organizations (p.285) One large corporation Vertical communication Centralized, top-down decision making Vertical integration Work/quality team Functional work teams Minimal training Specialized job design focused on individuals 6. moral development levels (p.83)
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7. limitation of ROI when measuring performance (p.336) ROI is very sensitive to depreciation policy. ROI can be increased by writing down the value of assets through accelerated depreciation. It can discourage investment in new facilities or the upgrading of old ones. Older plants with depreciated assets have an advantage over newer plants in earning a higher ROI. It provides an incentive for division managers to set transfer prices for goods sold to other divisions as high as possible and to lobby of corporate policy favoring in-house transfers over purchases form other firms. Managers tend to focus more on ROE in the short-run over its use in the long-run. This provides an incentive for goal displacement and other dysfunctional consequences. ROI is not comparable across industries which operate under different conditions of favorability. It is influenced by the overall economy and will tend to be higher in prosperity and lower in a recession. 8. resource sustainability (p.141-142) Slow cycle resources are sustainable because they are shielded by patents, geography, strong brand names, or tactic knowledge. These resources and capabilities are distinctive competencies because they provide a sustainable competitive advantage. Gillette’s razor technology is a good example of a product built around slow-cycle resources.
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Final Exam - FINAL REVIEW 1 Complementor product(p.113 A...

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