Which one of the following is not one of the elements of crafting corporate strategy for a
A) Picking the new industries to enter and deciding on the means of entry
B) Initiating actions to boost the combined performance o
C) staffing the organization, building core competitive and competitive capabilities, and
structuring the organization and work effort.
D) de-layering management hierarchies, deciding which competencies and capabilities to
build, and deciding which value
Forming alliances or strategic partnerships with outsiders to develop or gain access to
competitively valuable capabilities
A) entails high risk in the case of strategy-critical value chain activities and should be
avoided if at all possible.
Implementing and executing strategy
A) can be considered successful if the organization achieves its strategic and financial
objectives and makes good progress toward realizing its long-term strategic vision.
B) is something that pretty much h
E) Actions to create a work environment that enhances the quality of life for employees
and makes the company a great place to work
Which one of the following is not part of the moral case for why businesses should act in a
C) unethical behavior should be punished only if it results in a public scandal which cannot
be ignored by management.
D) a reputation for high ethical standards is important to every company.
E) a company does not need a code of ethics so long as top man
B) basic human nature is the same everywhere and thus the same set of ethical rules and
ethical standards applies to most all cultures and countries.
C) concepts of right and wrong are universally defined by religious principles.
D) concepts of right and
D) uses quantitative measures of long-term industry attractiveness and business
strength/competitive position to plot each business's location and stresses the merits of
concentrating the company's resources on those businesses having relatively strong
Ethical principles in business
A) concern the behavioral guidelines a company's top management and board of directors
set for company personnel regarding "what is right" and "what is wrong" in conducting
the company's business.
B) deal chiefly
Which one of the following is not part of structuring the work effort in ways that promote
successful strategy execution?
A) Deciding which value chain activities ought to be outsourced, if any
B) Providing for both internal cross-unit coordin
In a highly centralized organizational structure,
A) top executives retain authority over most strategic and operating decisions and wield
tight control over the amount of discretionary decision-making authority they delegate
B) has a favorable impact on a company's long-term strategic success.
C) does more to detract from a company's chances for strategic success and market
leadership than to help it.
D) gives validity to a company's core values and helps ingrain them in the
B) employee turnover rates are low, most all employees are familiar with the company's
values and ways of operating, and the organization structure has undergone no major
changes for a number of years.
C) the CEO has exercised effective leadership for a n
Companies with multinational operations or that have recently made new acquisitions typically
A) splintered cultures.
B) multiple cultures or subcultures.
C) weak cultures.
D) adaptive cultures.
E) cultures that clash in one or more respe
The character of a company's culture is manifested in
A) the types of competitive strategy it employs, its financial and strategic objectives, and
its strategic vision.
B) the core values and business principles that management preaches and pr
E) is a management approach where managers go through in-depth training to learn how
to create effective policies and procedures and to install effective internal support
Six Sigma quality control
A) is a tool that is super
Motivational and incentive compensation practices that contribute to high levels of employee
A) entail paying the highest wages and salaries in the industry to high-performing
employees and stressing non-monet
B) is important because strategies can rarely be executed proficiently without providing
employees with explicit direction in how value chain activities are to be performed.
C) is the most reliable way for management to retain control over how tasks are b
Which one of the following is not a valid strategy-related reason why managers need to be
deeply involved in the budget-making process?
A) Too little funding of strategy-critical organizational units impedes their ability to
execute their piec
Which of the following is not accurate as concerns entering a new business via acquisition,
internal start-up, or a joint venture?
A) Acquisition is generally the most profitable way to enter a new industry, tends to be
B) the opportunity to convert cross-business strategic fits into competitive advantage
(such opportunity does not exist with unrelated diversification).
C) increased potential for bigger profit margins and higher returns on investment due to
B) opportunities to transfer skills from one business to another.
C) opportunities to share use of a well-respected brand name.
D) opportunities to transfer intellectual capital from one business to another.
E) All of the above.
Checking a di
Which of the following is not an advantage of outsourcing the performance of certain value
chain activities to outsiders?
A) Being able to reduce costs by hollowing out many of the company's unnecessary
capabilities and core competenc
D) are an attractive strategy for small competitively-strong companies wanting to launch
a short, swift price war to take sales and market share away from much larger rivals.
E) work best if the guerilla is the industry's market share leader.
Mergers and acquisitions are a much used strategy because they are an effective means of
A) creating a more cost effective organization and gaining access to important technology.
B) expanding a company's geographic coverage (particu
Companies are motivated to enter into strategic alliances or cooperative arrangements
A) to collaborate on mutually-interesting technology or the development of promising new
B) to improve supply chain efficiency and/or overcome defi
Companies opt to expand into foreign markets for such reasons as to
A) boost returns on investment, increase the size of their product lines, avoid tariffs and
trade restrictions, and escape having to rely on union labor.
B) gain access to new
B) that the value chains of different businesses are so dissimilar that no competitively
valuable cross-business relationships are present (in other words, the value chains of a
company's businesses offer no opportunities to benefit from skills or
B) Acquisition is generally the most profitable way to enter a new industry, tends to be
more suitable for an unrelated diversification strategy than a related diversification
strategy, and usually requires less capital than entering an industry via inter
E) how many countries to compete in and which rivals to target.
Strategies for local companies in defending against global challengers include
A) transferring company expertise to cross-border markets, dodging rivals by shifting to a