Mba6216-final exam capstone all 100 questions

  

QUESTION 1 1 points Saved

Apple is considering backward integration into manufacture of their products. Currently Foxconn in China handles most of their manufacturing but Apple has some concerns about quality.

Apple operates in a high tech industry where products change rapidly. Should they backward integrate and why?

A. Yes, it will weaken the power of suppliers.

B. No, Foxconn can do it better.

C. Yes, they will become more profitable.

D. No, they will have less flexibility to adapt their products.

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QUESTION 2 1 points Saved

How does vertical integration compare with outsourcing?

A.

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Vertical integration and outsourcing both allow the company to focus more on core competencies.

D. Vertical integration and outsourcing both allow the company to reduce risk exposure to changing technology.

QUESTION 3 1 points Saved

You want to sell shoes in Indonesia where they have high import duties that make your products 33% more costly however there

is no charge for locally produced products. The country favors partnerships with local businesses and has a highly skilled workforce. What is your best entry strategy?

A. Franchising B. Greenfield C. Exporting

D. Strategic alliance

QUESTION 4 1 points Saved

India has become a popular place to move information technology functions to because of their large highly skilled IT workforce. Companies keep their IT functions in a few locations. What is the most likely reason?

A. India has superior resources.

B. The cost of IT is lower.

C. There is a steep learning curve.

D. Buyer related activities must take place close to the market.

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QUESTION 5 1 points Saved

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Centralized organizations adapt more quickly.

C. Frontline workers lack critical knowledge for work decisions.

D. Decentralized organizations make it too easy to place blame.

QUESTION 6 1 points Saved

High uncertainty in competitive markets

A.

makes alliances among firms less attractive because the markets’ profits are lower.

B. encourages firms to form alliances to share risks.

C. erodes alliances because uncertainty motivates opportunistic behaviors by alliance partners.

D. increases the number of alliances because uncertainty leads to synergy.

QUESTION 7 1 points Saved

In France, fine dressmaking and tailoring have been a tradition predating Queen Marie Antoinette. Cloth manufacturers, design schools, craft apprenticeship programs, modeling agencies, and so forth; all exist to supply the clothing industry. This is an example of

A. outsourcing

B. strategic alliances

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D. complementary industries

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Nickelodeon and Nick Jr. and Walt Disney’s Company’s Disney Channel. From the perspective of Comcast Corp., it is most likely to be:

A. Horizontal non-equity, uncertainty reduction business-level, diversifying corporate-level strategic alliance.

B. Vertical equity, competition reduction business-level, licensing corporate-level strategic alliance.

C. Vertical non-equity, complementary business-level, diversifying corporate-level strategic alliance.

D. Horizontal non-equity, competition response business- level, synergistic corporate-level strategic alliance.

QUESTION 9 1 points Saved

Glorietta Manufacturing specializes in making luxury leather goods from exotic skins, such as snake, lizard, and alligator. In the last few years it has been increasingly difficult to obtain high quality, unblemished alligator skins. Its main source of alligator skins, Gator- Rama Ranch, has a number of other customers. So, Glorietta’s management has decided to enter acquisition negotiations with Gator- Rama in order to gain control over Gator-Rama’s output. This is an example of a

A. vertical acquisition

B. hostile takeover

C. merger

D. horizontal acquisition

QUESTION 10 1 points Saved

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Revlon, best known as a cosmetics manufacturer also makes bath

products, sunscreen and other non cosmetics. Approximately 76% of their revenue comes from their cosmetics. Further, Revlon receives

42% of their revenues from international sales. They operate wholly owned subsidiaries in Australia, South Africa, and the United

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C. dominant business, Greenfield strategy

D. related linked diversification, acquisition international strategy

QUESTION 11 1 points Saved

Dow Corning Corp was incorporated in 1943 by Dow Chemicals and Corning Glass Works with the purpose of developing polymers and materials based on silicon chemistry. This company operates overseas through its wholly owned subsidiaries through which it also conducts sales. The alliance and global strategies are most likely

A. equity venture, global strategy

B. Joint venture, transnational strategy

C. Joint venture, international strategy

D. non-equity, multidomestic strategy

QUESTION 12 1 points Saved

Pinnacle Inc. makes video editing hardware for the television and movie industries. Their business comes primarily from the United States but they want to engage in foreign direct investment in India. Unfortunately, this industry is not well developed in India and the Indian labor force is not familiar with this type of manufacturing. Pinnacle’s best choice is

A. Acquisition

B. Multidomestic strategy

C. Strategic alliance

D. Greenfield venture

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QUESTION 13 1 points Saved

Your company has recently developed a patented process that safely

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exporting B. alliance C. licensing

D. acquisition

QUESTION 14 1 points Saved

Toyota matched their corporate strategy to produce reasonably priced high reliability vehicles using just in time inventory management in which necessary components were not acquired until needed. They also developed the philosophy of kaizen or continuous improvement in which all employees participate in finding production improvements.

A. Toyota is involved in process innovation and corporate entrepreneurship.

B. Toyota is engaged in radical innovation through corporate entrepreneurship and internal innovation.

C. Toyota is engaged in incremental innovation through internal innovation.

D. Toyota is developing an disruptive innovation through their corporate culture.

QUESTION 15 1 points Saved

Tata motors in India recently acquired Jaguar and Land Rover from Ford for 1.7 billion dollars. The price was considerably lower than the price Ford had paid for these companies originally. These acquisitions allow Tata to grow quickly and gain access to luxury markets. Which is NOT a reason for the acquisition?

A. Gain market share.

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Learn from the design and engineering expertise of

Jaguar and Land Rover engineers.

C. Develop new markets.

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1 points Saved

Coca Cola is divided into five international divisions: Eurasia and Africa, Europe, North America, Latin America, and Pacific. They make over 3500 beverage products and 80% of their revenue comes from their beverage division. Their diversification and international strategy are:

Related constrained and multidomestic.

Related linked and transnational.

Related linked and global.

Dominant business and multidomestic.

QUESTION 17 1 points Saved

Revlon, best known as a cosmetics manufacturer also makes bath products, sunscreen and other non cosmetics. Approximately 69% of their revenue comes from their cosmetics. Further, Revlon receives 42% of their revenues from international sales. They operate wholly owned subsidiaries in Australia, South Africa, and the United Kingdom. Revlon can best be described as

A. Related constrained/licensing

B. related linked/Greenfield

C. unrelated diversification/franchising

D. dominant business/turnkey

QUESTION 18 1 points Saved

Goldman Sachs likes to acquire firms that they believe are undervalued. They hire a management team to oversee the acquisitions operations and make improvements to the new

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acquisition is strong, they sell it off at a profit. This is an example of:

A. Unrelated diversification

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QUESTION 19 1 points Saved

You are contemplating opening a manufacturing plant in Nigeria. Labor is relatively cheap and you would have access to the African market through your presence on the continent. However, Nigeria has experienced government instability. Bribery has become a way of getting things done and the government has taken over three companies in the last ten years. You should:

A. Franchise.

B. Choose an alliance entry strategy with a company already based in Nigeria to gain access to local knowledge.

C. Choose an acquisition entry strategy to gain access to local knowledge.

D. Choose a Greenfield venture so that you will have control.

QUESTION 20 1 points Saved

Your company has recently developed a patented process that safely and cheaply makes pharmaceutical grade vitamins. You would like to expand your business overseas and are trying to decide on the best option. Labor is relatively cheap overseas and most countries are happy to see foreign direct investment by American companies. Your products are basically the same for everyone since vitamins have value to people throughout the world. You would like to retain control over your operations however since the process is proprietary. Your best strategy and entry options are:

A. Multidomestic/Acquisition.

B. Transnational/Acquisitions.

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C. Multidomestic/Alliance.

D. Global-Standardization/Greenfield.

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military and rescue operations, he started a new venture where he could customize these flying drone cameras to fit the specific needs of the buyers and sell them. Joe can be best described as a(n)

A. entrepreneur. B. early adopter. C. inventor.

D. technology enthusiast.

QUESTION 22 1 points Saved

Which of the following is a competitive benefit experienced by the first mover firm in an industry?

A. The first mover may be able lock in key suppliers.

B. The first mover will be able to achieve a less steep learning curve.

C. The first mover will not need to find distribution networks.

D. The first mover will be able to reduce the switching costs.

QUESTION 23 1 points Save Answer

Jane Doe is the founder of a chain of coffee shops. She pays a fair price for her coffee beans even though she could pay less and uses some of the money to build roads and hospitals in poor regions where the beans come from. Jane's belief is that her company should be

able to support the community at large. Which of the following terms best describes Georgia Ray?

A. entrepreneurial mindset

B. inventor

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social entrepreneur

D. innovator

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They are seeking to stake out a strong strategic position.

B. There are only a few competitors in the holographic phones market.

C. Market size is moderate.

D. Process innovation is increasing.

QUESTION 25 1 points Save Answer

IMFriends is an instant messaging application for smartphones. New smartphone users find it easier to connect with friends and relatives through this mobile app when compared to other similar instant messaging applications. Hence, it has the largest user base in the industry. Thus, MFriendsapp's value has increased primarily due to its

A. First mover advantages.

B. Network effects.

C. First mover disadvantages.

D. Disruptive innovation.

QUESTION 26 1 points Save Answer

Which of the following best illustrates a process innovation as opposed to product innovation?

A. a consumer electronics company launching holographic televisions.

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C. an automobile company using computer-aided design in its production.

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D.

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1 points Save Answer

While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. In the context of this scenario, which of the following statements is true?

A. The industry for cell phones with holographic keyboards will face greater competition than the tablet industry

B. While the industry for cell phones with holographic keyboards will focus on product innovation, the tablet industry will focus on process innovation.

C. The industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.

D. While the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits.

QUESTION 28 1 points Save Answer

The compact disk (CD) industry is in the maturity phase of its industry life cycle. What conditions prevail for an industry in this stage?

A. The industry structure is an oligopoly with only a few large firms.

B. The mode of competition at this stage will be based on non- price factors.

C. The type of buyers at this stage will be early adopters.

D. The market growth is positive or high at this stage.

QUESTION 29 1 points Save Answer

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between technology enthusiasts and early adopters?

A. While early adopters make up the smallest market segment, technology enthusiasts make up the mass market.

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While the customer segment in the introduction stage consists of early adopters, the customers entering the market in the growth stage are technology enthusiasts.

D. Unlike technology enthusiasts, early adopters' demand is fueled more by intuition and vision rather than technology concerns.

QUESTION 30 1 points Save Answer

At the time when Kevin decided to purchase a tablet computer, the product had just become accessible to the mass market. He purchased the tablet only after he was completely convinced that the benefits it would offer him would far exceed its price. Also, he waited for his friends to try the product and popular gadget television shows to endorse it. Which of the following customer segments does Kevin best represent?

A. laggards

B. technology enthusiasts

C. early majority

D. early adoopters

QUESTION 31 1 points Save Answer

How is the early majority section of consumers different from the late majority section?

A. The late majority enters the market in the decline stage, whereas the early majority enters the market during the maturity stage.

B. While the late majority prefers buying from unknown new ventures, the early majority relies only on well-established brands.

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a new technology, the late majority is not.

D. While the early majority makes up the mass market, the late majority is the smallest market segment.

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1 points Save Answer

Food Inc. is creates and markets new meals sold in supermarkets. It has released a new meal package sold directly to restaurants. Which of the following types of innovations does this scenario best illustrate?

A. disruptive innovation

B. radical innovation

C. architectural innovation

D. incremental innovation

QUESTION 33 1 points Save Answer

Red Hat gives away open source software for free but charges a support fee to those customers who rely on Red Hat for maintenance, support, and installation. Red Hat is benefiting from

A. open innovation model.

B. experience-curve effects.

C. razor–razor-blade business model.

D. economies of scope.

QUESTION 34 1 points Save Answer

Researchers at Games First Inc. spent several months coming up with a fun game for toddlers that incorporates a new idea in preschool education. They then marketed it to parents of those toddlers. This scenario describes step of the innovation process.

A. three

B. four

C. two

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D. one

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B. radical innovation.

C. incremental innovation.

D. architectural innovation.

QUESTION 36 1 points Save Answer

Widgets Inc. has decided to vertically integrate by supplying their own parts. Widgets will not supply those parts to any other company? The new employees in this department have expertise and knowledge that the parent company lacks. What are the issues and problems.

A. Lack of high powered incentives and information asymmetry

B. High powered incentives and moral hazard C. Increased administrative and search costs D. Flexibility and opportunism

QUESTION 37 1 points Save Answer

Which of the following firms is most integrated?

A. a firm that enters a joint venture with another company to develop a new technology

B. a firm that buys all the required raw materials from multiple external vendors

C. A firm that manufactures and distributes its products

D. a firm that owns production subsidiaries across the globe

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Hitoro Inc. developed a superior touch screen technology for tablet computers that enabled multiple users to operate the screen at the same time. The technology was leased to Revox Inc., a consumer

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C. franchising

D. bootlegging

QUESTION 39 1 points Save Answer

Dow entered into a joint venture with Corning to jointly produce and market products. They believed that the joint investment would increase cooperation and trust. This is an example of a

A. parent-subsidiary relationship.

B. credible commitment.

C. corrective action.

D. cartel.

QUESTION 40 1 points Save Answer

Neon Electronics Inc. manufactures tablet computers, cell phones, and televisions. They have been selling through retail outlets such as Walmart and Best Buy but don’t believe that their product is being presented adequately. What is their best alternative?

A. conglomerate diversification.

B. crowdsourcing.

C. backward vertical integration.

D. forward vertical integration.

QUESTION 41 1 points Save Answer

Which of the following best illustrates physical-asset specificity?

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A. a machine solely designed to give a candy its trademarked shape

B. a generic machine that can be used to churn different mixtures

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QUESTION 42 1 points Save Answer

Which of the following best illustrates site specificity?

A. investment made to train employees to operate computers

B. investment made in human capital to master procedures of a specific organization

C. bottling machinery to manufacture bottles with trademarked shapes

D. equipment necessary for mining bauxite and aluminum smelting >

QUESTION 43 1 points Save Answer

Dog Houses Inc. sources raw materials from a number of suppliers to manufacture their dog houses. However they also own land with some of these resources as part of their supply chain. They are using

A. horizontal integration

B. taper integration

C. oncentric integration

D. conglomerate integration

QUESTION 44 1 points Save Answer

Apples Inc sells makes a number of household organic products sold only in the United States including laundry detergent and floor cleaners. This is an illustration of

A. geographic diversification.

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C. process diversification.

D. market diversification.

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Honda entered the American market making small engines for lawnmowers and motorcycles. They later developed a line of cars by using their motors to diversify into new markets. Honda is

A. building new core competencies to protect and extend current market position and incremental innovation.

B. leveraging existing core competencies to target the chasm between the early adopter and early majority market segment.

C. building new core competencies to create and compete in future markets.

D. redeploying and recombining existing core competencies to compete in future markets and architectural innovation.

QUESTION 46 1 points Save Answer

Berkshire Hathaway. is a large multinational conglomerate. As a single business unit, the company's stock price is estimated to be

$216,280. However, by adding the actual market stock prices of each of its individual business units, the stock price of the company as one unit would be $300,00. What is Berkshire Hathaway experiencing in this scenario?

A. diversification premium

B. learning-curve effects C. diversification discount D. experience-curve effects

QUESTION 47 1 points Save Answer

PrimoDisk Inc has developed a new data storage technology which can hold more data in a small space. However, PrimoDisk has not been able to penetrate the storage market even though they have a

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matrix, PrimoDisk will be categorized under

A. cash cows.

B.

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QUESTION 48 1 points Save Answer

The top management team of Supersonic Inc. have used their knowledge to make an acquisition which is not in the company’s best interest. This is an example of

A. Influence costs and information asymmetry

B. Administrative costs and moral hazard

C. Coordination costs and information asymmetry

D. Coordination costs and information asymmetry

QUESTION 49 1 points Save Answer

RoboToys, Inc. is involved in the production of robotic toys. This firm produces the raw materials, including metals and oils for plastic; creates the integrated circuits, displays, and batteries; and assembles the toys. Which of the following stages of the industry value chain is RoboToys involved in?

A. stages 2, 3, and 5

B. stages 2, 3, and 4

C. stages 1, 2, and 4

D. stages 1, 2, and 3

QUESTION 50 1 points Save Answer

Canon Inc. merged with its competitor Kyocera Inc. This allowed Kyocera to use its technological competencies along with Canon’s marketing capabilities to capture a larger market share than what the two entities individually held. What does this scenario best illustrate?

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A. backward integration

B. forward integration

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QUESTION 51 1 points Save Answer

Organic Inc.’s decision to acquire a chain of restaurants proved to be ill-fated because its managers had overestimated their abilities and skills. They believed that they had the skills to manage such diversified businesses and create additional shareholder value. However, the acquisition failed to create the anticipated synergies

because the managers' capabilities were restricted to the organic food industry. What does this scenario best illustrate?

A. managerial hubris

B. managerial empathy C. managerial capitalism D. managerial feasibility

QUESTION 52 1 points Save Answer

Honda Inc., a manufacturer of automobiles, has entered into a 15-year partnership with a software company to develop sophisticated operating systems and innovative mobile applications for its vehicles. This would mean that both the companies will have to mutually share their resources, knowledge, and capabilities to develop a superior product. What is the relationship between Honda and the software company best referred to as in this scenario?

A. a strategic alliance

B. an acquisition

C. a leveraged buyout

D. a proprietorship

QUESTION 53 1 points Save Answer

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and IBM will help airline pilots determine the right amount of fuel to carry on a particular flight. This task not only requires significant data analytics but also the need to display the information in an easily understandable way so that pilots can digest it quickly when glancing on their iPad in a cockpit prior to departure. Which of the following

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the arrangement of the cockpit to facilitate the use of the iPad

D. the determination of the amount of fuel to carry on a flight

QUESTION 54 1 points Save Answer

Walmart entered Germany with high expectations. However a few years later they withdrew from the country due to poor sales. The Germans didn’t understand greeters and the Walmart culture didn’t fit with German expectations. They

A. They underestimated their liability of foreignness.

B. they overestimate the geographic distance between America and Germany.

C. Underestimated their need to protect its intellectual property.

D. they underestimated their dwindling reputation in the German market.

QUESTION 55 1 points Save Answer

United Nerumbia and Fernsland are two neighboring countries with strong economic disparities. However, both the countries share a common national language and the same political ideologies. The relationship between these two countries will most likely affect the trade of

A. Cement produced in Fernsland.

B. Vegetables harvested in Fernsland.

C. Movies produced in United Nerumbia.

D. Rolex watches manufactured in United Nerumbia.

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QUESTION 56 1 points Save Answer

Bollywood is India’s version of Hollywood. Their movie Slumdog

Millionaire was a big hit in the U.S. It was based on a game show

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C. Reduce their economic distance from the other countries.

D. Reduce their cultural distance from the other countries.

QUESTION 57 1 points Save Answer

Smartphones Inc., a well-established and reputed multinational enterprise (MNE), is headquartered in a highly developed economy. It wants to start its operations in Haiti, which has been recognized as one of the less-developed nations in the world. How will this strategic move most likely affect Plethora Inc.?

A. It will be able to easily sell products for which demand varies by income.

B. It will be able to benefit from economic arbitrage.

C. It will be able to replicate its existing business model easily.

D. It will be able to successfully leverage its competitive advantage from economies of standardization.

QUESTION 58 1 points Save Answer

Dior Inc., a company that manufactures and sells premium perfumes, is pursuing an international strategy. Aldi Inc., a supermarket chain, follows a multidomestic strategy. Which of the following statements is most likely true of this scenario?

A. Dior Inc. will sell the same products and services in both domestic and foreign markets, whereas Aldi Inc. will customize its product offerings to suit local requirements.

B. Dior Inc. will be better protected from exchange rate fluctuations when compared to Aldi Inc.

C. Dior Inc. will pursue a differentiation strategy at the business

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at the business level.

D. Dior Inc. will not be able to leverage its home-based core competencies in foreign markets as much as Aldi Inc.

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standardization strategy. How will the two companies most likely differ from each other?

A. Unlike Solar City, Target Inc. will be able to reap significant economies of scale and location economies.

B. Unlike Solar City, Target Inc. will be able to pursue a differentiation strategy at the business level.

C. Target Inc. will focus more on cost-reduction than Solar City

D. Target Inc. will have its business functions spread across the world; Solar City's business functions will be highly centralized.

QUESTION 60 1 points Save Answer

Mont Blanc., a reputed brand for fine writing instruments, is implementing an international strategy in its firms. Lenovo, a laptop brand, is pursuing a global-standardization strategy in its firms. Which of the following statements most likely holds true in this scenario?

A. Lenovo is exposed to greater risks of exchange rate fluctuations.

B. Lenovo focuses more on cost-reductions when compared to

Mont Blanc.

C. Lenovo's business functions are highly centralized, whereas

Mont Blanc. organizes its activities worldwide.

D. While Mont Blanc.'s competitive advantage lies in its high local responsiveness, Lenovo will lack such capabilities.

QUESTION 61 1 points Save Answer

Yum Brands, a company popular for its restaurants, successfully follows a multidomestic strategy. Berkshire Hathaway., a large conglomerate, pursues a transnational strategy. Which of the following

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statements is most likely true of this scenario?

A. While Yum Brands. will require a global matrix structure, Berkshire Hathaway will require a traditional headquarters model.

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D. While Berkshire Hathaway.'s competitive advantage will lie in its high local responsiveness, Yum Brands. will lack such competencies.

QUESTION 62 1 points Save Answer

Due to dense urban living conditions, hot and humid summers, and high energy costs, it is not surprising that Japanese customers want small, quiet, and energy-efficient air conditioners. Which feature of Porter's diamond framework does this scenario best exemplify?

A. competitive intensity

B. complementor availability

C. factor conditions

D. demand conditions

QUESTION 63 1 points Save Answer

Hans is a strategist who wants to decide on the appropriate strategy to help his firm "go global." Which of the following should Hans consider while choosing his strategy?

A. He should remember that he has only one framework at his disposal to make global strategy decisions.

B. He must remember that higher levels of control and a lower likelihood of any loss in reputation go along with less investment-intensive foreign entry modes.

C. He should rely on his firm's business-level strategy as a clue to possible strategies pursued globally.

D. He must be aware of the fact that despite globalization and the emergence of the Internet, firm geographic location has actually maintained its importance.

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QUESTION 64 1 points Save Answer

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A. related complementors.

B. a focal industry.

C. supportive complementors.

D. a peripheral industry.

QUESTION 65 1 points Save Answer

Toyota's global success in the 1990s and early 2000s was based to a large extent on a network of world-class suppliers in Japan. This tightly knit network allowed for fast two-way knowledge sharing—this in turn improved Toyota's quality and lowered its cost, which it leveraged into a successful blue ocean strategy at the business level. This example shows the effectiveness of

A. demand conditions.

B. related and supporting industries/complementors.

C. factor conditions.

D. competitive intensity in a focal industry.

QUESTION 66 1 points Save Answer

W. L. Gore & Associates is the inventor of path-breaking new products such as breathable GORE-TEX fabrics, Glide dental floss, and Elixir guitar strings. Which of the following would be most likely to hinder its intention of fostering employee satisfaction, retention, and creativity?

A. a highly organic organizational structure

B. an extremely formalized organizational structure

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D. a low degree of centralization

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They put an end to the practice that enabled employees to horizontally rotate to different jobs once they had mastered a particular job.

B. They established top-down management as their primary strategy.

C. They avoided asking their customer service reps in call centers to follow a detailed script.

D. They increased their reliance on drop-shipment orders.

QUESTION 68 1 points Save Answer

Cat Scratch Inc., a web development firm, is headed by Rob Dennis, the CEO. Each functional department of the company—marketing, finance, and HR—has a president who reports to the CEO directly. Each department has various managers who manage teams. The managers report to the presidents, and the team leads report to the managers. Finally, the employees at the lowest level report to their team leads. It is rare for a lower-level employee to interact with the CEO of the company. In this scenario, Cat Scratch Inc. can be said to have a(n)

A. flat hierarchical structure.

B. tall hierarchical structure.

C. decentralized organizational structure.

D. organic organizational structure.

QUESTION 69 1 points Save Answer

Zippos Inc., a graphic design firm, has offices in New York, Texas, California, New Mexico, and New Jersey. Each of these offices is headed by a president who reports directly to Charles Grey, the CEO. The heads of the centralized HR, Finance, and Marketing teams

report to Joe Smith as well. Managers in the various offices also report

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statements is most likely to be true?

A. Zippos Inc., has a tall hierarchical structure.

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QUESTION 70 1 points Save Answer

Applebet Inc., a toy manufacturing company, encourages its employees to enjoy their work by taking on additional responsibilities or switching jobs with each other. It allows its employees immense flexibility in charting their own career path within the organization. Chris has worked at Applebet for eight years, but has never had a boss or supervised an employee. Which of the following is most likely true in this scenario?

A. Applebet Inc. has a flat organizational structure.

B. Applebet Inc. is a mechanistic organization.

C. Applebet Inc. has a high degree of centralization.

D. Applebet's organizational culture is governed by codified rules.

QUESTION 71 1 points Save Answer

Jennifer, a recent fashion design school graduate, has received praise for her clothing designs from her peers and friends on social networking sites; this has inspired her to set up a store where she can design and sell apparel. After experiencing some success with sales, she recruits two employees to handle customers at the store.

However, she handles other day-to-day affairs herself, while continuing to design clothes. Which of the following is likely to be a pitfall of this organizational structure established by Jennifer?

A. Hiring more employees will result in loss of intellectual property.

B. Once the firm starts growing and attracting more customers she is likely to feel overloaded.

C. The online admiration of her designs will not translate into sales.

D. People are highly unlikely to buy clothes from a store run by a

fashion design student.

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QUESTION 72 1 points Save Answer

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It allows the firm to constantly upgrade core competencies in

R&D, innovation, and marketing.

C. It allows the firm to nurture and constantly upgrade necessary core competencies in manufacturing and logistics.

D. It allows the firm to reduce its cost below that of competitors while offering acceptable value.

QUESTION 73 1 points Save Answer

Frappe operates as a strategic business unit (SBU) under More or Less Inc., a home-furnishings manufacturer. From this information, it may be reasonable to infer that

A. Frappe has a matrix organizational structure.

B. Frappe is dependent on the other SBUs in More or Less Inc.

C. Frappe is led by its own CEO (or equivalent general manager).

D. Frappe does not have its own profit and loss responsibility.

QUESTION 74 1 points Save Answer

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

A. W. L. Gore & Associates organizes its employees into project- based teams.

B. Apple develops high-tech products that are preferred by consumers across the world.

C. Southwest Airlines pilots sometimes help load baggage, which results in quick turnaround time.

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GM offers compensation if its products do not meet a

consumer's expectations.

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with a focus on short-term performance. As a result, the firm put in place metrics and systems to accommodate and manage increasing firm size due to continued success. As a result of this tightly coupled system, GreenValue developed a

A. innovative approach.

B. flat organizational structure.

C. organic organizational structure.

D. resistance to change.

QUESTION 76 1 points Save Answer

Which of the following provides an example of a common drawback of a functional strategy?

A. Carl's manager dismissed his idea because it was too innovative.

B. David had a difficult time communicating efficiently with the manager of another department.

C. Joan was surprised about the inflexibility of her firm when it rejected her marketing plan.

D. Natashia did not accept the position with the firm because it has an ineffective cost-leadership strategy.

QUESTION 77 1 points Save Answer

L’oreal Cosmetics Inc. has a functional structure that is flexible enough to allow it to leverage its brand name across different products. By doing this, Monica's is reaping from its core competencies.

A. centralization

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B. economies of scope

C. diversification

D. economies of scale

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A. A company's founder defines and shapes her organization; the founder dies; the influence of the founder on the organization's culture changes after a few years.

B. A company's founder defines and shapes her organization; the founder dies; the influence of the founder on the organization's culture persists for decades.

C. A company's founder strongly influences her organization; the founder sells the company; the organization's culture changes after it is sold again in five years.

D. A company's founder strongly influences her organization; the founder sells the company; the organization's culture changes despite resistance from some employees.

QUESTION 79 1 points Save Answer

DigiGames Inc. established itself as the foremost producer of computer games. However, as the market for these games moved from laptop computers to cell phones based on cloud applications, DigiGames failed to adapt its games enough to this new environment. As result, the firm soon lost its competitive advantage. Which of the following best describes this scenario?

A. movement from core rigidity to founder imprinting

B. movement from core competency to core rigidity

C. movement from core rigidity to core competency

D. movement from founder imprinting to core competency

QUESTION 80 1 points Save Answer

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Veronica sets up a business consulting firm in which the employees are motivated because they find their work interesting and creative. She carefully hires workers who fit well with their assigned tasks. Also, she clearly defines the results expected of each worker, but allows the workers to determine the means to these results. Which of the

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a firm that relies on high output controls to tap into intrinsic motivation

C. a firm that relies on high output controls to tap into extrinsic motivation

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D. a firm that relies on high input controls to tap into intrinsic motivation

QUESTION 81 1 points Save Answer

Joe’s Hot Dogs is a nationwide fast-food chain. Decision power resides at the top of the organization. Each job is documented in minute detail. The firm has many levels of supervision, including vice presidents and regional managers. Joe’s headquarters provides detailed instructions to each of its franchisees so that they provide comparable quality and service across the board. Based on this scenario, which of the following is an accurate statement about Joe’s?

A. Joe’s has a low degree of specialization and formalization, a high degree of centralization, and relies on a flat hierarchy.

B. Joe’s has a low degree of specialization, formalization, and centralization and relies on a flat hierarchy.

C. Joe’s has a high degree of specialization and formalization, a low degree of centralization, and relies on a tall hierarchy.

D. Joe’s has a high degree of specialization, formalization, and centralization and relies on a tall hierarchy.

QUESTION 82 1 points Save Answer

Joe owns shares in a company called Viacom Communications Inc. The company's financial performance has been declining over the past few months, and the value of its stock has been decreasing. Warren wants to proactively cut his losses and therefore sells his

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Communications because he believes that the share prices cannot go anywhere but up. Which of the following characteristics of a public stock company does this scenario best exemplify?

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