Question Details

Question
1. Which is true of relatedness?
A. Measurement of product relatedness is no longer debatable.
B. A “product-related” firm will be considered related regardless of the measure used.
C. Some argue that product relatedness refers specifically to the visible product linkages.
D. Relatedness can be a common underlying dominant logic that connects various businesses in a diversified firm.
E. Product-unrelated conglomerates are not linked by institutional relatedness.
2. Which is true regarding restructuring?
A. There are two primary ways of restructuring namely downsizing and upsizing.
B. A rising level of competition within an industry normally prevents restructuring.
C. Corporate restructuring is not widely embraced around the world.
D. Restructuring is one of the first things to consider when trying to improve profitability.
E. Restructuring is easier in knowledge-intensive firms than capital intensive firms.
3. To ensure the success of the M&A, managers need to make sure of all the following except:
A. Be willing to walk out when premiums are too high.
B. Engage in adequate due diligence concerning strategic fit.
C. Seek organizational contrast and variety rather than organizational fit.
D. Address the concerns of multiple stakeholders.
E. Recognize that that integration management is a fulltime job.
4. Which of the following is true regarding M&As?
A. As many as 70 percent of M&As reportedly fail.
B. On average, the acquiring firms’ performance improves after acquisitions.
C. Target firms, after being acquired and becoming internal units, often perform better than when they were independent, stand-alone firms.
D. The only identifiable losers are the shareholders of target (acquired) firms.
E. The outstanding success of M&As is due to pre- and post acquisition phases.
5. Diversification can pay off in all of the following situations except:
A. Risk is spread over several (product or country) markets.
B. Core resources are leveraged.
C. The art of post-acquisition integration has been mastered.
D. Commonly shared industry skills are used.
E. Firms are organized to minimize the costs.
6. Sources of operation synergy:
A.Technologies.
B.Marketing.
C.Manufacturing.
D.All of the above.
E.None of the above.
7. Product-related diversification involves all of the following except:
A. A single business strategy.
B.Entries into activities that are related to a firm- existing markets and/or activities.
C. The emphasis is on economies of scale rather than scope.
D. Increases in competitiveness.
E. Synergy.
8. Corporate scope is shaped by:
A. Industry conditions.
B. Firm capabilities.
C. Institutional constraints.
D. Opportunities in both developed and emerging economies.
E.All of the above.
9. Select the best choice: a company that is engaged in oil production, pipelines and tankers, refining, and gasoline stations has engaged in ______________ expansion.
A. Horizontal
B. Vertical
C. Conglomerate
D. Friendly M&A
E. Hostile M&A
10. At its core, diversification is essentially driven by all of the following except:
A. Economic benefits.
B. Bureaucratic costs.
C. Synergy.
D. Less complicated information systems.
E.MEB.
11. Which of the following is a key idea regarding the reciprocal relationship between strategies and structures within MNEs?
A. The fit between strategies and structures is crucial.
B. The relationship is two way.
C. Strategies and structures are not static.
D. All of the above.
E.A good strategy cancels the effect of a bad structure.
12. Which of the following is a customer-focused dimension?
A. Global account structure.
B. An industry sector structure.
C. Solutions-based structure.
D. All of the above.
E. None of the above.
13. Which of the following is not an argument in favor of decentralization in knowledge management but instead is an argument in favor of centralization? 
A. Better motivates subsidiary-level managers and employees through empowerment.
B. Reduces corporate level overload of responsibilities.
C. Better motivates subsidiary level managers.
D. Sufficient power for corporate-level managers to initiate necessary actions.
14. This structure is often used to supply customers (often other MNEs) in a coordinated and consistent way across various countries.
A. Global account structure.
B. An industry sector structure.
C. Solutions-based structure.
D. All of the above.
E.None of the above.
15. This structure is commonly used in professional service firms:
A. Global account structure.
B. An industry sector structure.
C. Solutions-based structure.
D. All of the above.
E. None of the above.
16. Knowledge management uses “centers of excellence” in which type of MNE?
A. Home replication.
B. Local (multidomestic).
C. Global.
D. Transnational.
E. All of the above.
17. Which are not true in regards to institution-based considerations?
A. Externally, MNEs are subject to the formal institutional frameworks erected by various home- and host-country governments.
B. Host-country governments often encourage, or coerce MNEs into undertaking certain activities.
C. Strategists weigh the informal, backlash against activities which result in domestic job losses. 
D. Formal organizational charts do not necessarily reveal the informal rules of the game, such as organizational norms, values, and networks.
E. To staff the position of the head of a subsidiary, MNEs, in the absence of formal regulations, essentially have only one choice: to use a home-country national as the head of a subsidiary.
18. Which of the following is not true of the global matrix structure?
A.Is often used to alleviate the disadvantages associated with the geographic area structure.
B. Is often used to alleviate the disadvantages associated with the global product division structures.
C. Often used for sharing and coordinating responsibilities between product divisions and geographic areas.
D. This structure benefits front-line managers who now have only one boss - either a country manager or a product division manager.
E. The matrix structure may add layers of management.
19. The most appropriate structure for a multidomestic strategy is a:
A. International division structure.
B. Geographic area structure.
C. Global product division structure.
D. Global matrix structure.
E. Flexible matrix structure.
20. In which of the following structures are foreign subsidiary managers not given sufficient voice relative to domestic managers?
A. International division structure.
B. Geographic area structure.
C. Global product division structure.
D. Global matrix structure.
E. Flexible matrix structure.