MG 495 Week 4 Exam

MG 495 Week 4 Exam | Park University | Assignment Help

Question 1

A staggered board

  

o             makes it easier for shareholders to curb a CEO's power.

o             increases the chances of a hostile takeover.

o             all of the above.

o             has only a portion of the board stand for election each year.

o             is seen in less than 50% of U.S. boards.

Question 2

One desired outcome of analyzing strategic factors is identifying niches where an organization can use its ______ to take advantage of a particular market opportunity

  

o             distinctive competencies.

o             situational proficiency.

o             differentiating capabilities.

o             distinctive characteristics.

o             core competencies.

 

Question 3

One of the benefits of globalization is

  

o             increased taxes.

o             increased union negotiations.

o             decreased outsourcing.

o             economies of scale.

o             additional human resource training.

 

 

Question 4

In a fragmented industry

  

o             companies integrate to further reduce costs.

o             prices drop as new competitors enter the market.

o             economies of scale are used to reduce costs.

o             all of the above.  

o             no firm has large market share.

Question 5

Codetermination

  

o             is the process by which both management and the board establish corporate strategic management.

o             is the inclusion of a corporation's employees on its board.

o             occurs when minority shareholders concentrate their votes.

o             is present when all board members are also employed by the corporation

o             occurs when one or more individuals on one board also serve on other boards.

 

 

Question 6

Which societal force includes demographic trends?

  

o             economic forces.

o             labor forces.

o             Socio cultural forces.

o             technological forces.

o             political-legal forces.

Question 7

Research suggests that strategic management evolves through four sequential phases in corporations. The first phase is

  

o             internally oriented planning.

o             externally oriented planning.

o             forecast-based planning.

o             strategic management.

o             basic financial planning.

 

 

Question 8

Most entrepreneurial ventures follow  

o             no strategies.

o             differentiation strategies.

o             focus strategies.

o             stuck in the middle strategies.

o             cost leadership strategies.

 

Question 9

According to Porter, the generic competitive strategy that reflects the ability of the corporation or its business unit to design, produce, and market a comparable product more efficiently than its competitors is called

o             cost leadership.

o             focus.

o             competitive scope.

o             differentiation.

o             diversification.

 

 

Question 10

The process of taking a new technology from the laboratory to the marketplace is called

  

o             technology discontinuity.

o             the R&D mix.

o             economies of scope versus operating leverage.

o             technological transfer.

o             technological competence.

 

Question 11

According to the text, unique market opportunities that are available for only a particular

o             time are called

o             trigger points.

o             situational occasions.

o             critical openings.

o             strategy implementation.

o             strategic windows.

 

 

Question 12

A sugar company that is worried that consumers may buy artificial sweetener instead of sugar is concerned about the

  

o             threat of substitute products.

o             rivalry among existing firms.

o             bargaining power of suppliers.

o             bargaining power of buyers.

o             threat of new entrants.

 

Question 13

When strategic managers have a willingness to reject unfamiliar as well as negative information it is referred to as

o             strategic myopia.

o             corporate apathy.

o             management indifference.

o             corporate inertia.

o             strategic paralysis.

 

 

Question 14

________ theory argues that senior executives over time tend to view the corporation as an extension of themselves.

  

o             Goal setting.

o             Motivation.

o             Stewardship.

o             Population ecology.

o             Agency.

Question 15

The Dow Jones Sustainability Index includes

  

o             Environmental, economic, and quality sustainability.

o             Industry, environmental, and economic sustainability.

o             Environmental, ethical, and quality sustainability.

o             environmental, economic, and social sustainability.

o             ethical, economic, and social sustainability.

 

 

Question 16

When the value chains of two separate products or services share activities, such as the same marketing channels, in order to reduce costs, this is an example of

  

o             economies of integration.

o             economies of scope.

o             outsourcing.

o             economies of scale.

o             economies of learning.

Question 17

The requirements of a board of directors vary significantly by country and by state; however, there is a developing consensus as to what the major responsibilities should be. Which of the following is NOT one of the responsibilities?

  

o             effective board leadership including the processes, makeup and output of the board.

o             strategy of the organization.

o             risk vs. initiative and the overall risk profile of the organization.

o             sustainability.

o             becoming directly involved in managerial decisions.

 

 

Question 18

Which one of the following is included in the firm's societal environment?

  

o             special interest groups.

o             competitors.

o             economic forces.

o             resources.

o             governments.

 

Question 19

In the final phase of strategic management, strategic information is available to

  

o             operational personnel.

o             the top management responsible for decision making.

o             only those responsible for implementing the strategy.

o             middle management.

o             people throughout the organization.

 

 

Question 20

An example of the promotion variable of the marketing mix is

  

o             services.

o             discounts.

o             advertising.

o             location.

o             quality.

 

Question 21

When a company's core compentencies are superior to those of competitors, these are known as

  

o             core competencies.

o             key performance factors.

o             distinctive competencies.

o             resources.

o             critical success factors.

Question 22

According to Archie Carroll, the responsibility that management of a business organization has to produce goods and services of value to society so that the firm may repay its creditors and stockholders is called

  

o             legal responsibilities.

o             discretionary responsibilities.

o             ethical responsibilities.

o             economic responsibilities.

o             financial responsibilities. 

 

 

 

Question 23

A code of ethics is important to clarify company expectations of employee conduct in various situations and to

  

o             reduce the burden on the judicial system.

o             minimize the possibility of mandatory regulations.

o             make it clear that the company expects its people to recognize the ethical dimensions in decision and actions.

o             encourage individuals to strive for good citizenship and corporations to contribute positively to society.

o             promote a high level of societal norms.

 

 Question 24

All of the following are considered primary stakeholders EXCEPT

o             governments.

o             shareholders.

o             creditors.

o             customers.

o             employees.

 

Question 25

The breadth of an organization's culture or the extent to which units throughout an organization share a common culture is also known as

  

o             Cultural strategy.

o             Cultural integration.

o             Cultural intensity.

o             Cultural diversification.

o             Cultural prerogative. 

 

Question 26

Contrast agency theory and stewardship theory.

1- Agency Theory :

Agency theory is concerned with analyzing and resolving

two problems that occur in relationships between principals

owners/shareholders and  the top management. This theory assumes that hired hands who are likely to be interested in their personal welfare than that of the shareholders. Conflict of interest arises when the desires or objectives of the owners and the agents conflict.

 

2- Stewardship Theory

Stewardship theory is a theory  which proposes that executives tend to be more motivated to act in the best interests of the corporation than in their own self-interests. The executives of the firm steer the company through the troubled waters and they take a lead in keeping company doing good business. According to this theory  because of their long tenure with the corporation,  the senior executives tend to identify with the corporation and its success.

 As they have served for long times, they know the structure and strengths and weaknesses of the business and that's give them edge over other.

The difference between both theories is the fact that agency theory is based more on suspicion and conflict of interest, and stewardship theory is based on trust building and keeping a common interest.

 

Question 27

Discuss some reasons for unethical behavior by business people.

Following are some reasons for unethical behavior by business people.

1- Cultural norms and values vary between countries

and even between different geographic regions and ethnic groups within a country.

2- The countries which run on Relationship-based strategies  tend to be less transparent and have a higher degree of corruption than do rule-based countries.

3- The differences in values between business people and key stakeholders is also another reason for the unethical behavior.

4-Some business people may believe profit maximization is the key goal of their firm and they do not care for the ethics. Their only purpose is profit maximization.

5- Sometimes peer pressures and slippery slope also contribute in unethical behaviors.

 

Question 28

Discuss the three basic organizational structures.

:

Following are the three basic organizational structures.

1- Simple structure

This structure has no functional or product categories and is appropriate for a small, entrepreneur-dominated company with one or two product lines that operates in a reasonably small, easily identifiable market niche. Owner/ Managers and workers are part of it.

2- Functional Structure:

This structure is pertinent for a medium-sized firm with has many  product lines in one industry.  The employees in this structure tend to be specialists in the business functions

that are important to their respective  industry, such as manufacturing, marketing, finance, and

human resources.

3- Divisional Structure:

This structure is appropriate for a large corporation with many product lines in several related industries. Employees tend to be functional specialists organized according to product/market distinctions. These are divided according to the products. For instance, product A team, product B team.

 

Question 29

What is a strategic decision and what are its three characteristics?

A strategic decision is such a decision that deals with a corporations long term future. Any strategic decision is basically  based on three main characteristics. These characteristic define the strategic decision. These characteristics are

1- Rare

2- Consequential

3- Directive.

Rare decisions are unusual and have no particular standard to follow. In such decisions what is right or wrong can not be defined.

Consequential decisions implements a lot  of resources and requires a substantial amount of dedication from people at all levels. It is based on the collaborative efforts.

Directive decisions are set in place prior to for lesser decisions and future actions throughout an organization. Directive decision often have major resource implications for an organisation.

 

Question 30

List and discuss the two factors that tend to determine whether an industry will be primarily multi-domestic or primarily global?.

The two factors that tend to determine whether an industry will be primarily multi domestic or primarily global are

(1) The pressure for coordination within the MNCs operating in that industry. If they do not co-ordinate the company would not become global.

(2) The pressure for local responsiveness on the part of individual country markets.