145 terms

Strategic Management Final

STUDY
PLAY

Terms in this set (...)

In ethical decision making, the _____________________ approach proposes that decision makers should be equitable in the distribution of costs and benefits associated with an action to all individuals and groups affected by the decision.
justice
Proponents of the Keystone Pipeline project were dealt a serious blow this week when:
a pipeline burst in Arkansas, dumping oil in populated areas.
Carroll's four responsibilities of business include all of the following except:
accounting
___________________.are those who have an indirect stake in a corporation, but are also affected by corporate activities.
secondary stakeholders
A(n) _____________________ specifies how an organization expects its employees to behave while on the job
code of ethics
____________is/are formal codes that permit or forbid certain behaviors.
laws
In ethical decision making, the _______________ approach proposes that decision makers should choose the alternative that does the most good for society.
utilitarian
In Kohlberg's _________________ level of moral development, actions are justified by an external code of ethics.
conventional
The phrase, "When in Rome, do as the Romans do" is most indicative of _______________:
cultural relativism
________________________ is defined by combining ethical and discretionary business responsibilities
social responsibility
All of the following are considered secondary stakeholders EXCEPT
distributors
The Foreign Corrupt Practices Act makes it illegal for U.S. companies to participate in bribery anywhere in the world, with substantial financial penalties and jail time awaiting anyone who is found to have broken this law. The underlying philosophy, which suggests that bribery is always wrong, regardless of what the norm might be prevalent in other countries, reflects:
moral relativism
Cisco Systems justified its decision to sell technology to the Chinese police that would allow them to coordinate information on the movements and activities of individuals across cities, provinces, etc. by suggesting that the majority of Chinese people would benefit from the departments' ability to track criminals. Those opposed to the sale suggest that the Chinese government would use the technology to deny freedom to political dissidents. It is obvious that Cisco is using the ______________ view of ethics to justify its decision, while its opponents are relying on the ______________ view to argue against the decision.
utilitarian; justice
Friedman's position on social responsibility:
appears to be losing traction with business executives.
Some employees justify not turning in co-workers involved in unethical behavior by suggesting that no one has the right to impose their morals on any other individual, and that people should "live and let live" where morals are concerned. This attitude reflects the ____________________ type of moral relativism.
naive
In order for a business to be sustainable, it must satisfy which of Carroll's responsibilities?
all of the above
As societal values have evolved, it is likely that today's _________ responsibilities were yesterday's _________ responsibilities.
legal; ethical
As opposed to relationship-based countries, rule-based countries tend to
be more transparent and have a lower degree of corruption.
According to Kohlberg, fewer than 20% of people in the U.S. occupy the:
principled stage
A problem with the utilitarian approach is
that it sometimes fails to recognize the impact of relative power among stakeholders.
For a firm to fulfill its ethical or discretionary responsibilities, it must consider the needs and wants of its ____________________.
secondary stakeholders
Vice President Sherron Watkins is generally considered the whistleblower that brought down Enron. This is not entirely accurate because:
She never notified anyone outside of Enron.
Some would argue that the only way Nazi concentration camp guards could have carried out the horrific orders they were given was by adopting the _________________ type of moral relativism.
role
A word to the wise given to new graduates entering the workforce is that in business, you always have to look out for "number one", making the advancement of your new career your primary consideration in all of your work-related decisions. This philosophy is consistent with the ________________ level of moral development.
preconventional
The categorical imperatives suggest that one should always treat other people:
like one would like to be treated
The statement, "The whole is greater than the sum of its parts" succinctly captures the ________________________ concept.
synergy
Dogs, cash cows, question marks, and stars are all part of _____________.
The BCG Matrix
The general orientations of corporate directional strategy are:
Retrenchment, growth, stability
___________________ is primarily about the choice of direction for a firm as a whole and the management of its business and product portfolio.
Corporate Strategy
My company has decided to expand internationally. The least risky approach we could take to accomplish this would be:
exporting
Firms involved in ___________________ are primarily concerned with financial considerations of cash flow or risk reduction
conglomerate diversification
According to the BCG matrix, a "question mark" refers to an organization or subunit that has
A low relative market share in a high-growth market.
The GE Matrix represents an improvement over the BCG matrix because:
it allows a much richer, more detailed definition of industry attractiveness.
According to Bloomberg:
20% of the world's population will be over 65 years old by 2050
__________ occurs when business acquires suppliers.
Backward integration.
Last year, both Coke and Pepsi decided to purchase the American bottling companies that mixed and distributed their respective brands. This move, which was a reversal of years of strategy, would best be described as _____________________.
forward integration
My company has decided to expand internationally. The riskiest approach we could take to accomplish this would be:
direct investment
Which of the following accurately describes the preferred strategy for the Boston Consulting Group's business opportunities?
All of the above
The General Electric business screen is considered a vast improvement over the Boston Consulting Group Matrix because it is much more objective in how variables are evaluated.
FALSE
In response to the shift in buyer health consciousness, Coke and Pepsi expanded their beverage offerings to capture orange juice, bottled water, and sports drinks to prevent the loss of their current customers to these substitutes. This is an example of _________________.
concentric diversification
Research suggests that companies with the highest likelihood of success when pursuing concentric diversification are those that are _________________________ in their core business industry.
leaders
Refer to the matrices below. Based on your readings and our class discussion, how might the recommendations for the companies (A & B) be the same/different across?
A's would always be top priority for investment; B's would always be divested.
_________________________ views a corporation in terms of resources and capabilities that can be used to build business unit value as well as generate synergies across business units.
Corporate parenting
In President Obama's 2008 campaign, he took the unprecedented approach of dedicating the resources need to compete in both 'Red' (traditionally Republican) and 'Blue' (traditionally Democratic) leaning states. The forced the Senator McCain to spread his more limited resources over a broader set of markets, thereby rendering his overall campaign less effective. In business parlance, President Obama used a(n) _____________________ strategy to gain the White House.
Multipoint competition
The stability directional strategies include
Growth, pause ,retrenchment
Like the decision whether or not to outsource corporate functions, the decision whether or not to vertically integrate is often driven by the value of ___________ relative to the cost of doing it yourself.
transaction costs
__________________ usually happen between firms of different sizes, while _____________ usually happen between firms of similar sizes.
Acquisitions, mergers
Ford Motor Company has seen an impressive reversal in its performance trends over the past couple of years. Much of the change can be attributed to efforts to contract the organization (fewer car models, more efficient production) and consolidate its economic and process gains. As such, Ford is clearly executing a _________________ strategy.
turnaround
In attempting to enter the Chinese market, Tressel Tattoos, Inc. quickly realized that it could not find an existing host country factory that met its quality and security needs. Consequently, it was determined that TTI would have to build its Chinese production facility from scratch. This approach is expensive and risky, and is generally referred to as _________________.
a. turnkey operations
green-field development
____________________________ is another name for outsourcing.
Production sharing
One of the basic tenets of military structure is that each person should have only one boss (unity of command). In the civilian business world, the ________________ structure appears to violate that rule.
matrix
A ________________________.structure allows a company to tailor products to regional differences and to achieve regional coordination.
geographic group
Multinational corporations are constantly attempting to balance forces _____________.
for standardization and customization
According to Alfred Chandler, structure follows ________________________:
strategy
Stage II in corporate development is _________________ and generally involves a _________________ structure:
growth; functional
The analytical method intended to help businesses achieve near-perfect results in production and other aspects of business is called _______________.
six sigma
Your boss calls you into her office to give you the good news. As you requested, you are getting more control over how you do your job. You won't be getting any more money, but she has just demonstrated:
job enrichment
_________________ transform strategy from conceptual to action-oriented and are necessary to the development of _____________________, which provide employees with details on what activities they must actually carry out.
programs, procedures
Last week, the 1.8 billion member Catholic church chose a new leader who immediately demonstrated wisdom, historical perspective, excellent taste by choosing the Papal name
Francis
A ___________________________ structure is considered by many to be a "non-structure" because it virtually eliminates in-house business functions.
network
__________________ is the most commonly used organizational structure.
Functional
As an organization moves from Stage II's functional structure to Stage III's divisional structure, a crisis of ____________ often develops as each division seeks to maximize its own performance at the possible expense of the organization's other divisions.
control
The first stage of a corporation's international development is _____________________.
domestic company
Large MNC's that operate in numerous international markets often face pressures to be both efficient (standardization) and responsive (customization). In order to respond simultaneously to these apparently opposing forces, many of these corporations adopt the ____________ structure.
global
As I stated in class, an organization must consider the biggest differences represented in its industry/product/location/customer mix when determining the structure that maximizes the effectiveness of top management. This approach to organizational structuring takes into account the _______________________ of top management.
bounded rationality
The concentric and conglomerate diversification associated with the mature stage of the organizational life cycle usually results in a _________________ structure.
decentralized
The propensity to concentrate in a market niche associated with the birth stage of the organizational life cycle usually results in a _______________________ structure.
entrepreneurial
A company with relatively scarce human resources might consider a ______________ structure as a means to maximize the productivity of those resources.
matrix
In most large, multi-industry corporations, the implementers of strategy are:
everyone in the organization
Developing _______________ is usually the last real check a corporation has on the feasibility of a selected strategy before it is actually selected for implementation
a budget
The most advanced stage of international development is _____________________.
MNC with global emphasis
Businesses involved in turnaround efforts often find themselves in a _____________ effort as well, as they seek to redesign business processes to achieve major gains in cost, service, or time.
reengineering
A network organization is often referred to as a(n) _____________________ because it is composed of project groups or collaborations linked by constantly changing nonhierarchical, electronic networks.
virtual organization
Workers on assembly lines are often moved to different stations to prevent them from getting bored with the repetitive tasks of a single station. This process is called _______________.
job rotation
Job enlargement, job enrichment, and job rotation are all techniques associated with __________.
job design
Company A acquired Company B with money provided by Company C (in this case, an insurance company). As such, this transaction would be considered _____________________.
a leveraged buyout
Apple's iPads are manufactured in China. Apple's decision to ship the construction jobs overseas would most accurately be called ________________________.
offshoring
Selling new products to existing customers would be an example of _____________.
product development
A decision making technique that assigns two groups to argue opposite sides of a question in an effort to find the truth somewhere in the middle is called:
dialectical inquiry
The amount of assets a business must allocate to a particular strategy and the length of time the assets will be unavailable are part of (along with the probability of strategy effectiveness) the definition of:
risk
A ___________________ is designed to influence key stakeholders and bring them into agreement with the corporation's actions
political strategy
Producing some of the activities or functions of a company internally while outsourcing other aspects is called:
taper vertical integration
________________ are pro forma (estimated future) balance sheets and income statements that forecast the effect of each alternative strategy and its various programs will likely have on division and corporate return on investment.
Corporate scenarios
Yesterday, Yahoo! CEO Marissa Mayer shocked the industry and the company by
ending telecommuting for all employees to increase productivity
Some argue that IBM had so much invested in their mainframe strategy that they were unable or unwilling to recognize the imminent demise of that industry segment. This would the ______________ strategy to avoid.
losing hand
China and India are at the top of many multinational corporations' wish lists because of the billions of potential new customers they represent. For companies seeking to do business there, these countries are prime candidates for ____________________.
market development
Deciding whether or not to institute self-managed work teams throughout the organization is most specifically part of ____________________ strategy.
HRM
The ability to go online, put in your exact body dimensions, and have a company use a combination of computers, robots, and other flexible, efficient manufacturing techniques to make you a perfectly fitting pair of jeans at a reasonable price is a real-world example of _____________________.
mass customization
Linux' use of open source coding and volunteers to create and improve its software is an example of a(n) _________________ approach to R&D strategy.
open innovation
When an organization is facing a dynamic environment, ______________ is NOT the best decision making technique to use.
consensus
According to Deming, ____________________ is the only way to obtain high supplier quality.
sole sourcing
JIT sourcing is designed specifically to avoid costs associated with ___________________.
inventories
Intel's advertising campaign "Intel Inside" is a classic example of a _______________ marketing strategy.
pull
Avoiding R&D costs through imitation is an appropriate strategy for a _________________ pursuing a _____________________ competitive advantage.
technological follower; cost leadership
Pioneering a product that increases buyer value is an appropriate strategy for a ______________ pursuing a ___________________ competitive advantage.
technological leader; differentiation
In 1992, Ford Motor Company was locked in a battle with Honda to claim the title of best-selling sedan in the U.S. The Honda Accord held the title from 1989 to 1991 and Ford was determined to have its Taurus retake the crown in 1992. The two companies spent millions on incentives, discounts, and advertising trying to convince individual and corporate customers to choose their sedan over their rival's. In the end, Ford eked out a narrow victory but almost went bankrupt in the process. This is a classic example of the ______________ strategy, one that should clearly be avoided.
arms race
According to the Proposed Outsourcing Matrix, an activity that adds little value to the company's product/service and yet has the potential to provide a competitive advantage is a prime candidate for _______________________________.
tapered vertical integration
According to the Proposed Outsourcing Matrix, an activity that adds little value to the company's product/service and has little potential to provide a competitive advantage is a prime candidate for _______________________________.
purchase on the open market
A decision making technique that assigns an individual or group to identify and formally present the pitfalls and problems associated with at particular strategic alternative is called:
devil's advocacy
The trade-off between achieving the desired debt-to-equity ratio and relying on internal long-term financing via cash flow is a key issue in ______________________.
a. marketing strategy
financial strategy
On the reality television show "The Apprentice", contestants compete to become the CEO of one of Donald Trump's many companies. In choosing which competitor will win the coveted position, Trump assigns them contrived projects (concerts, trade shows, etc.) to plan and manage. The one who proves most effective gets the real job. Which type of selection method do these large projects most closely represent?
assessment center
When Sanyo announced plans in 2005 to reduce its work force by 15 percent across the board to reduce its debt, it was preparing for:
downsizing
In searching for an internal candidate for an important position, it is critical that the company have an effective ____________ to identify performers with promotion potential.
performance appraisal system
The main tenets of the Total Quality Management philosophy are:
Customer satisfaction and continuous improvement
If a planned strategy is NOT compatible with the current culture, but the culture can be easily modified to make it more compatible with the new strategy, what should the organization do?
Find a joint-venture partner or contract with another company to carry out the strategy.
In using MBO, objectives should be set by:
the supervisor and the employee jointly
Executives with a particular mix of skills and experiences may be classified as a(n) ________________ and paired with a specific corporate strategy.
executive type
Research suggests that boards of directors tend to look outside the firm for the next CEO under which following circumstance?
when the company needs to expand in order to continue growing
As you prepared your outstanding final projects for this class, which of your activities could be best be described as consistent with the concept of an action plan?
All of the above
The United States has the greatest disparity in pay between top management and the lowest level workers. This would be a particularly difficult situation for German managers to deal with because that company scores lowest in Hofstede's ____________________ national culture dimension.
power distance
Among Hofstede's culture dimensions, the United States scores the highest in
individualism-collectivism
Among Hofstede's culture dimensions, the United States scores the lowest in
uncertainty avoidance
Some would argue that the ability of Kim Jong Un and his predecessors to keep the people of North Korea under their control, even in the most challenging times, is to no small extent the result of the Korean people's deep-seeded desire for stability, formal rules, and clear-cut understanding of what is expected of them. It should be no surprise, then that Korea scored highest on Hofstede's _______________ dimension of national culture.
uncertainty avoidance
All of the following are guidelines for successful downsizing except:
Make across-the-board cuts to equally share the pain.
Daimler Benz's 1998 merger with Chrysler was intended to be a marriage of mutually respecting equals. The mutual respect held for each other's successful cultures suggested ___________________ as the appropriate method of managing the combination of the two corporate cultures. In reality, the respect only flowed in one direction as Daimler sought to dominate the merged cultures, eliminating all traces of Chrysler's culture. This ________________ culture management method failed miserably and the two companies were split in 2007.
integration; deculturation
The ________________ dimension of national culture was added to Hofstede's original four as a result of insights offered by Asian researchers; a reflection some suggest of the original study's Western cultural bias.
long-term orientation
General Motors created Saturn as a way to experiment with innovative approaches to car making that GM, itself was not able to accommodate because of its conservative, traditionalist values. The creation of Saturn as an incubator for new strategic ideas and initiatives reflects GM's:
willingness to manage around its culture.
Bob Peterson was sent on a two-year assignment to Poland by the American shoe manufacturer for whom he worked. During his two-year stint, Bob spent most of his non-working hours watching his favorite American television shows on Hulu, eating at McDonald's and KFC (alternate nights), and becoming a master at Madden NFL 20XX. He never learned to speak Polish, never explored local art, architecture or cuisine, nor did he attempt to make any Polish friends. Not surprisingly, Bob's efforts to grow his company's business in Poland met with little success. It is clear that Bob lacked _______________.
cultural curiosity
Companies interested in pursuing an aggressive concentration strategy emphasizing vertical and horizontal growth would probably be best served by hiring a CEO who is a(n) ________________ executive type.
dynamic industry expert
In setting priorities in cultural values, Arab cultures tend to focus on ____________, Japanese culture on __________________, and Americans on _________________.
the family, the group, the individual
_____________________ controls are developed to predict likely profitability.
steering
The first step in the evaluation and control process is to:
Determine what to measure
A recent accounting development that allows the allocation of fixed and indirect costs to individual products or product lines is called _____________.
Activity-based costing
Last week's Business Week had the Chairman of ___________ on its cover because of the company's current dominance of the smartphone market.
Samsung
____________________________ involves measuring yourself against the toughest competition, whether it be internal or external to the company:
benchmarking
Rewarding A when you were hoping for B will likely lead to:
behavior substitution
_________ is the most commonly used measure of corporate performance:
ROI
Belmont's College of business buys paper from the university's copy center across campus. The actual cost that the COBA will incur will be reflected in __________________________.
transfer pricing
If you want to buy from a company that practices sound environmental practices, look for one that is _____________________ certified.
ISO 14000
Having to complete prerequisites before you can take my strategy class is an example of a ______________________ control.
input
Many governments in Europe will not do business with corporations that are not ISO 9000 certified, a certification that speaks to the quality processes a company uses in creating its product or service. As such, ISO 9000 certification can be viewed as an increasingly popular form of _____________ control.
behavior
Because of the limitations associated with purely financial measures of performance such as ROI, ROE, and EPS, many corporations now use ________________________, that includes both non-financial as well as financial measures.
the balanced scorecard approach
Some early winners of the Baldrige award (American version of Japan's Deming award for quality) became so focused on documenting their quality efforts that they lost sight of the ultimate aim of the award (actual quality) and failed financially. This shift in focus to the documentation of process is an example of ____________________________.
suboptimization
The purpose of the ________________________ approach is to isolate a unit so that its performance can be evaluated separately from the rest of the organization.
responsibility center
A multinational corporation (MNC) with at multidomestic strategy should use ______________controls on its foreign units while a global MNC should use ______________controls over its many units.
loose; tight
Acme Music Corp. decided to establish responsibility centers for its various units as a means of more precisely tracking unit performance. As a result, the maintenance unit was allowed to charge other units for their repair and maintenance services. In an effort to make his unit look good to top management, the maintenance manager began overcharging other units for services. This unanticipated consequence of moving to responsibility centers is an example of ____________________.
behavior substitution
Which of the following is NOT an appropriate guideline for proper control?
Only long-term controls should be used.
Acme, Inc. has chosen to pursue a strategy of concentric (related) diversification. If you were asked to design a control system to insure the effective execution of this corporate strategy, you would best design a system that uses:
behavior, input, and output controls
Because research, administrative and service departments cost companies money, but only indirectly contribute to revenues, they would best be monitored using a(n) __________________ control system.
expense center
Which method of matching executive rewards to the accomplishment of strategic objectives is particularly appropriate for measuring and rewarding the performance of top SBU managers and group-level executives when performance factors and their importance vary from one SBU to another?
weighted-factor method
The COBA KAT that you love so dearly is an example of a(n)________________________ control:
output
In a recent episode of Shark Tank, billionaire Mark Cuban asked a would-be entrepreneur how much money he intended to pay himself out of company revenue. When the young man answered "Six figures", Cuban immediately declared himself out as a possible source of venture capital. He likely felt that ________________ had been overestimated and that the business would be bankrupted attempting to pay a salary that large.
free cash flow
McKenzie, an HR consultant, has been hired by Acme Corp to design a compensation system for managers of its various strategic business units (SBU's). In keeping with the best management practices, McKenzie suggests that ROI should figure most prominently in the evaluation criteria of managers whose SBU resides primarily in industries with:
Low growth rates and high relative market share
________ is the present value of _______________.
MVA; EVA
I gave you quizzes on the chapters in your textbook as a means of making sure you read and were prepared to participate in class discussions. If the class represents the transformative technology (i.e. the business), quizzes would be considered a form of __________________ control.
Behavioral