Chapter 7 Quiz Spring 20151.award:10 out of10.00 pointsTypically, joint ventures involve more control and risk than franchising.TrueFalse2.award:0 out of10.00 pointsElements of a multidomestic strategy may facilitate the competitive advantage of _________ by decreasing shipping and transportation costsinherent in local production.international strategymultidomestic strategyglobal strategytransnational strategy3.award:10 out of10.00 pointsIf a company is considering optimizing the physical location for every activity in the value chain, which of the following is not a possiblestrategic advantage for that decision?political risk reductionpolitical risk enhancementperformance enhancementcost reduction4.award:10 out of10.00 pointsBecause many countries are investing in countries other than their own, each country is becoming less autonomous and more dependent.TrueFalse5.award:10 out of10.00 pointsRivalry is intense in nations with conditions of __________ supplier bases, _________consumer demand, and __________ new entrantpotential from related industries.weak; weak; lowweak; weak; highstrong; strong; highstrong; strong; low6.award:10 out of10.00 pointsWhich of the following is not a risk associated with a global strategy?The geographic concentration of any activity may also tend to isolate that activity from the targeted markets.A firm with only one manufacturing location must export its product, sometimes at great distance from the operation.A firm with only one manufacturing location must import its product.Concentrating an activity in a single location makes the rest of the firm dependent on that location.7.award:10 out of10.00 pointsRecent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations wouldinclude all of the following, EXCEPT _______.flexible manufacturing trends allowing a decline in the minimum volume required to reach acceptable levels of production efficiencycustomer needs, interests, and tastes becoming increasingly similarfluctuating exchange ratesconsumers around the world increasingly willing to tradeoff idiosyncratic preferences in product features for lower price.8.award:10 out of10.00 pointsWhich of the following is not a reason for the rise in regional expansion?decreasing national trade restrictionsincrease in the number of local customersdecrease in the number of trading blocs and free trade zonesdecreasing value of local taxes and tariffs9.award:10 out of10.00 pointsTrading blocs and free trade zones promote the rise of regional expansion.TrueFalse10.award:10 out of10.00 pointsOffshoring takes place when a firm decides to shift an activity that they were previously performing in a foreign location to a domestic location.TrueFalse11.award:10 out of10.00 pointsA franchise generally expires after a few years; a license is designed to last even longer.TrueFalse12.award:10 out of10.00 pointsThe Michael Porter Diamond of National Advantage is a framework that explains why countries foster successful multinational corporationsbased on factor endowments; demand conditions; related and nonsupporting industries; and firm strategy, structure, and rivalry.TrueFalse13.award:10 out of10.00 pointsOne of the challenges with globalization is determining how to meet the needs of customers at the same income level.TrueFalse14.award:10 out of10.00 pointsMultinational firms are constantly faced with the dilemma of choosing between _______ and ___________.local adaptation; global integrationlocal adaptation; local integrationglobal adaptation; local integrationglobal adaptation; global integration15.award:10 out of10.00 pointsWhich would be the appropriate strategy for companies to use to compete in the global marketplace if the marketplace pressure is for lowercosts with no pressure for local adaptation?global strategyinternational strategymultidomestic strategytransnational strategy16.award:10 out of10.00 pointsWithin a worldwide market, the most effective strategies are purely multidomestic or purely global.TrueFalse17.award:10 out of10.00 pointsExpanding the global presence of a firm automatically increases its scale of operations.TrueFalse18.award:10 out of10.00 pointsWhich one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?MNCs can successfully compete globally by aggressively pricing products and sacrificing features.If the world markets are treated as heterogeneous, substantial economies of scale are easily achieved.Customer needs and interests are becoming more dissimilar.Consumers are willing to pay more for specific product features.19.award:10 out of10.00 pointsThe form of entry strategy into international operations that offers the _______level of control for the domestic corporation would be exporting.highestlowestbestworst20.award:10 out of10.00 pointsWhich of the following is not a risk normally associated with Bottom of the Pyramid strategies?Entrenched competitors can impact the ability of the new firm to enter the market successfully.The new low-cost products they develop may cannibalize the sales of their core products.New products may be perceived as exploiting the customer with substandard products.A low-end version of a brand may detract from the overall brand attractiveness.21.award:10 out of10.00 pointsA multidomestic strategy is the most appropriate strategy for international operations, because it drives economies of scale as far as possibleand provides a middle-of-the-road product that appeals to the smallest number of consumers in every market.TrueFalse22.award:10 out of10.00 pointsIndustries in which proportionally more value is added in __________ activities, such as logistics, are more likely to benefit from a globalstrategy.upstreammarketingsalesdownstream23.award:10 out of10.00 pointsWhich of the following is not a motivation for a company to pursue international expansion?It wishes to take advantage of arbitrage opportunities in order to increase profit.It wishes to increase the size of the potential markets for its products and services.It wishes to decrease foreign market penetration by developing products for the home market.It wishes to optimize value-chain activities to enhance performance, reduce costs, and reduce risk.24.award:10 out of10.00 pointsWhen firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When highpressures exist to lower costs, companies should choose a __________ or __________ in order to compete in the global marketplace.global strategy: multidomestic strategytransnational strategy; global strategyinternational strategy; transnational strategyinternational strategy; multidomestic strategy25.award:10 out of10.00 pointsExporting is an expensive way to enter domestic markets.TrueFalseChapter 8 Quiz Spring 20151.award:10 out of10.00 pointsAn entrepreneurial start-up can be successful, if three ingredients are critical. What are they?an opportunity, a marketing plan, and office spacea viable opportunity, available resources, and qualified and motivated founding teamgood ideas, a team of investors, and a business planmanagement, marketing, and money2.award:10 out of10.00 pointsEntrepreneurship refers to new value creation and can never include activities in major corporations.TrueFalse3.award:10 out of10.00 pointsThe process of identifying, ________, and developing new venture opportunities is known as opportunity recognition.categorizingbrainstormingselectingeliminating4.award:10 out of10.00 pointsEntrepreneurial firms are often in a weakened position to use combination strategies, because they do not have the flexibility to approachsituations uniquely.TrueFalse5.award:10 out of10.00 pointsIntense rivalry involving actions and responses among _________ competitors vying for the same customers in a marketplace is known as__________.similar; threat of substitutesdiverse; pioneering new entrydifferent; resource similaritysimilar; competitive dynamics6.award:10 out of10.00 pointsResource similarity is the extent to which rivals draw from the same types of resources in order to compete.TrueFalse7.award:10 out of10.00 pointsEntrepreneurial new entry is often perceived as a competitive threat because most market needs are not being met, either directly or indirectly,by an existing firm.TrueFalse8.award:10 out of10.00 pointsWhen attacked, older and larger firms tend to respond less quickly, but their responses are often more predictable.TrueFalse9.award:10 out of10.00 pointsFounders using an imitative new entry strategy look for opportunities to capitalize on proven market successes.TrueFalse10.award:10 out of10.00 pointsEntrepreneurial competitive dynamics refers to a cycle of actions and responses between firms competing for different customers.TrueFalse11.award:10 out of10.00 pointsOne of the ways entrepreneurs achieve success is by using resources more __________. This is an example of how entrepreneurs use_____________ strategy.efficiently; a low-cost leaderwisely; a combinationreasonably; a differentiationeffectively; an imitative12.award:10 out of10.00 pointsPandora pioneered a new way to broadcast music. This kind of breakthrough of creating ________ ways to solve old problems or meetingcustomer needs in a ___________ new way is referred to as a pioneering new entry.focused; focuseddifferentiated; differentiatedincremental; differentiatednew; unique13.award:10 out of10.00 pointsImitative new entry involves offering a radical new product or highly innovative service.TrueFalse14.award:10 out of10.00 pointsOpportunity recognition is the process of identifying, selecting, and reducing entrepreneurial opportunities.TrueFalse15.award:10 out of10.00 pointsBecause new ventures typically are small, they usually have high economies of scale relative to competitors.TrueFalse16.award:10 out of10.00 pointsA(n) ____________ is used by entrepreneurs who see products or business concepts that have been successful in one market niche andintroduce the same product in another segment of the market.proactive new entrypioneering new entryimitative new entryadaptive new entry17.award:10 out of10.00 pointsDifferentiation is often associated with _______ brand identify, __________ cost of advertising, and _____________ innovation.strong; expensive; inferiorstrong; inexpensive; inferiorstrong; expensive; superiorweak; inexpensive; superior18.award:10 out of10.00 pointsCommon sources of new business opportunities include: _________, ________, and ____________.past work experiences, suggestions by family, potential workfuture work experiences, suggestions by friends, chance eventscurrent work experiences, suggestions by friends, chance eventcurrent work experiences, suggestions by family, luck19.award:10 out of10.00 pointsBCG authors Stalk and Lachenauer published a book in which they listed competitive strategy for winning against incumbent rivals. Theseincluded devastate profit sanctuaries of rivals; _____ competitor costs; plagiarize with pride; ___________ the competition; and unleashmassive and overwhelming force,increase; disguiselower; exciteraise; deceivelower; eliminate20.award:0 out of10.00 pointsAn entry wedge, according to the text, is a type of entrepreneurial strategy firms can use to exit markets.TrueFalse21.award:10 out of10.00 pointsA company might launch new competitive actions to: improve market position, _______ on growing demand, ______________ productivecapacity, provide an innovative new solution, or obtain first mover advantages.capitalize; reduceconcentrate; decreasecapitalize; expandconcentrate; reduce22.award:10 out of10.00 pointsSmall businesses do not create the majority of new jobs in the U. S. economy.TrueFalse23.award:0 out of10.00 pointsWhen launching a new venture, finding a way to begin doing business must quickly generate cash flow, build credibility, attract goodemployees, and __________ the liability of newness.adapt toembraceovercomereward24.award:10 out of10.00 pointsMarket commonality refers to the extent to which competitors are vying for different customers in the same markets.TrueFalse25.award:10 out of10.00 pointsAmazon is an example of a company that used the differentiation strategy to enter the market. The differentiation features included ________.traditional delivery logisticsdoing it on the Internettraditional back office logisticsminimal customer serviceChapter 9 Quiz Spring 20151.award:10 out of10.00 pointsIn order to minimize the temptation for managers to act in their own self-interest, governance mechanisms exist for implementationconsideration. Which of the following is a primary means for monitoring managerial behavior?a board of directors that acts in the best interests of shareholders to create short-term valuea board of directors that acts in the best interests of shareholders to create long-term valuestakeholder activism in which participants view themselves as shareholdersmanagerial incentives to align management interests with those of the board of directors2.award:10 out of10.00 pointsIn choosing sides concerning CEO duality, two schools of thought exist. Which of the following would be a consideration for the Unity ofCommand school of thought?CEO duality leads to confusion in the decision-making process.CEO duality decreases the responsiveness of the leadership to shareholder needs.CEO duality results in improved leadership efficiency and effectiveness.CEO duality does not provide clear focus on objectives and operations.3.award:10 out of10.00 pointsExternal governance control mechanisms include __________ and ________________.public activists; competitorsanalysts; auditorsmarket for corporate control; governmental regulatory bodiesmedia; competitors4.award:10 out of10.00 pointsAs firms simultaneously downsize and face the need for increased coordination across organizational boundaries, a control system basedprimarily on boundaries and constraints would be ___________.effectivedysfunctionalidealrecommended5.award:10 out of10.00 pointsContemporary approaches to strategic control rely primarily on _______ learning.comparative learningdouble-loopcontrolledsingle-loop6.award:10 out of10.00 pointsOnce a strong and healthy organizational culture has been established, it must be maintained in order to be effective.TrueFalse7.award:10 out of10.00 pointsBehavioral controls are aspects of strategic change that involve finding the appropriate balance and ________ among the culture, rewards, andboundaries of the firm.measureperformancealignmentoutcome8.award:10 out of10.00 pointsBehavioral control is primarily concerned with whether or not the organization is doing the right things.TrueFalse9.award:10 out of10.00 pointsCentral to agency theory is the concern with problems that can arise between the principals who are the owners of the firm and the agents whoare the people who are paid by outside consultants to perform a job on their behalf.TrueFalse10.award:10 out of10.00 pointsStrategic control systems cannot correct the performance and ultimate strategy of a firm.TrueFalse11.award:10 out of10.00 pointsThe traditional approach to strategic control is sequential. Which of the following is not one of the steps in the sequence?Performance is measured against the predetermined goal.Strategies are formulated and top management sets goals.Lower and middle management set strategic corporate goals.Strategies are implemented.12.award:10 out of10.00 pointsChanges in board of director configurations since 1987 indicate that board directors were paid less in 2011, were older, were likely to be femaleand were independent from the company (not insiders).TrueFalse13.award:10 out of10.00 pointsFor businesses facing complex and turbulent business environments, which of the following is true?Goals and objectives that are uncertain prevent opportunism.Complacency about predetermined milestones can prevent adaptability.Detailed plans are needed to maintain order.Traditional strategic controls are more appropriate for stable environments.14.award:10 out of10.00 pointsWhich of the following is an example of how organizational culture exerts behavioral control?Culture sets implicit boundaries that encourage individual identification with the organization objectives.Culture discourages individual identification with the organization by creating a framework of shared values.Culture sets explicit boundaries that discourage individual identification with the organization objectives.Culture sets a framework of shared values that discourages individual identification with the organization objectives.15.award:10 out of10.00 pointsFor firms competing in highly stable industries, traditional strategic controls are most appropriate.TrueFalse16.award:10 out of10.00 pointsDouble-loop learning enhances the ability of the organization to respond with speed and flexibility.TrueFalse17.award:10 out of10.00 pointsIn the contemporary approach to control systems, benefits of continuous monitoring include ___________.organization response time is increasedorganizational flexibility is reducedtime lags are dramatically increasedearly detection of changes in the competitive environment18.award:10 out of10.00 pointsThe primary participants in corporate governance, according to Monks and Minow, are all of the stakeholders, board of directors, andemployees.TrueFalse19.award:10 out of10.00 pointsSales quotas, operating budgets, and production schedules are examples of contemporary controls.TrueFalse20.award:10 out of10.00 pointsPrimary participants in corporate governance are __________, _________, and __________.employees; management; board of directorsshareholders; management; board of directorsCEO; outside stakeholders; board of directorsmanagement; stakeholders; community21.award:10 out of10.00 pointsBehavioral controls involve the appropriate balance and alignment among the culture, rewards, and boundaries of a firm.TrueFalse22.award:10 out of10.00 pointsWhat happens when subcultures emerge that have shared values opposite from the dominant culture of an organization?Individuals lose sight of overall goals and begin working at cross-purposes.Information is likely to be shared more easily.Organizational cohesiveness tends to increase.Individuals gain a better understanding of the overall goals of the organization.23.award:10 out of10.00 pointsInformational control systems are concerned with which of the following?Is the organization doing what is right?Is the organization doing things correctly?Are rules and regulations being followed?Is the organization viable?24.award:10 out of10.00 pointsCalPERS, the California Public Employees Retirement System, manages over 240 billion dollars in assets. As an example of shared activism,they review all short- and long-term performance figures for each of the firms in which they invest and then work to ensure shareholder rightsby forcing the companies to change their business strategy.TrueFalse25.award:10 out of10.00 pointsThe collective sum of individual behaviors of the employees of an organization does not always result in what is best for the organization.TrueFalseChapter 10 Quiz Spring 20151.award:10 out of10.00 pointsFunctional types of organizational structure permit a firm to __________ its coordination and control within each of the functional areas.enhancepoolleverageestablish2.award:10 out of10.00 pointsWhen a firm has international operations, choosing the most appropriate structure depends upon the extent of international expansion, the typeof strategy, and the degree of product diversity.TrueFalse3.award:10 out of10.00 pointsA simple organizational structure may lead to problems such as clear boundaries of authority and few career advancement options.TrueFalse4.award:10 out of10.00 pointsOrganizations are increasingly using teams for many reasons. The difference between a good team and an outstanding team has been foundto be _____________.the degree to which they believed in one another and created an atmosphere of encouragementsimilarities in the age and experience of team membersimilarities in the way team members solve problemsthe combined technical skills of the members5.award:10 out of10.00 pointsGlobal start-ups are global from inception and seek to derive competitive advantage from multiple country presence.TrueFalse6.award:10 out of10.00 pointsMultidomestic strategies are driven by political and cultural imperatives requiring managers within each country to respond to local conditions. Anappropriate structure for these kinds of firms and their products and market diversity increases would be _______________.an international divisiona worldwide matrixa worldwide functionala worldwide product division7.award:10 out of10.00 pointsAmbidextrous organizational designs are useful for firms that wish to create modest, incremental innovations at the same time as dramatic,breakthrough innovation. This is done by disassociating adaptability and alignment of values and coordination across organizational activities.TrueFalse8.award:10 out of10.00 pointsA strategy of related diversification requires a need to reorganize around product lines or geographic markets. This is likely to result in a______________ structure.functionaldivisionalmatrixworldwide9.award:10 out of10.00 pointsA small firm with a simple structure often fosters creativity and individualism because of its formal atmosphere.TrueFalse10.award:10 out of10.00 pointsThe strategy and structure of a firm change as the firm increases in size, diversifies into new product markets, and expands its geographicscope.TrueFalse11.award:10 out of10.00 pointsA simple structure is characterized by _________________.highly centralized decision makinghigh specialization of taskshigh formality and low centralizationlow formality and low creativity12.award:10 out of10.00 pointsWhen an organization with a simple structure typically ________ its sales revenue and volume of outputs, it is said to be using a functionalstructure.increasesdecreasesdepletesdistributes13.award:10 out of10.00 pointsDeciding upon the most appropriate structure when a firm has international operations depends on ___________________.the strategic objectivesthe degree of market diversitythe extent of international expansionthe mission14.award:10 out of10.00 pointsThe ___________ organization becomes a central hub surrounded by networks of outside suppliers and specialists and parts can be added ortaken.modularboundedvirtualbarrier-free15.award:10 out of10.00 pointsIn a simple structure where the owner manager makes most of the important decisions, few rules and regulations are used to maintain order.TrueFalse16.award:10 out of10.00 pointsThe strategy that a firm chooses dictates such structural elements as the division of tasks, the need for integration of activities, and authorityrelationships within the organization. This implies that _______________.strategy can effectively be formulated without considering structural elementsstrategy follows structurestructure follows strategystructure typically has a very small influence on the strategy of a firm17.award:10 out of10.00 pointsA strategy of related diversification requires a need to reorganize around product lines or geographic markets. This leads to a divisionalstructure.TrueFalse18.award:10 out of10.00 pointsAccording to the text, boundaryless organizational designs need not replace traditional forms of organizational structure in order to be effective.TrueFalse19.award:10 out of10.00 pointsFunctional structures are usually found in organizations where ____________.there is a single or closely related productthere are unrelated service offeringsthere exists a strong need to decentralize decision makingthere is no vertical integration20.award:10 out of10.00 pointsDifferent types of boundaries place limits on organizations in order to foster high degrees of interaction with outside influences and varyinglevels of permeability.TrueFalse21.award:10 out of10.00 pointsA global startup typically benefits from lower communication, coordination, and transportation costs.TrueFalse22.award:10 out of10.00 pointsAs firms grow, owner managers rarely need to hire functional specialists to handle the increased information-processing burden.TrueFalse23.award:10 out of10.00 pointsA domestic product division structure is used when global strategies require that the corporate offices be responsible for overall efficiency andperformance.TrueFalse24.award:10 out of10.00 pointsJack Welch, former CEO of GE, believes that all internal and external organizational boundaries should become open and more permeable.TrueFalse25.award:10 out of10.00 pointsTo enhance integration and control of related product market activities, the functional structure increases centralization.TrueFalseChapter 11 Quiz Spring 20151.award:10 out of10.00 pointsWhich of the following statements about ethical organizations is true?There are many potential benefits of an ethical organization, but they often are indirect.Organizational ethics never define what a company is and what it stands for.Ethical values do not shape the search for opportunities.Ethics provide a non-unifying framework across the organization.2.award:10 out of10.00 pointsThree key interdependent strategic leadership activities are: designing the organization; maintaining its direction; and nurturing a culture dedicated to excellence and ethical behavior.TrueFalse3.award:10 out of10.00 pointsMany leaders have difficulty implementing their vision and strategies. Such problems may stem from a variety of issues in the design of theorganization such as ________.teams, systems, and organizational processes that facilitate implementationinappropriate budgeting and control systemssufficient mechanisms that integrate and coordinate activities across the firmadequate accountability among managers and employees4.award:10 out of10.00 pointsEthics concerns both the organization and the individual. This is true for all stakeholders in the organization.TrueFalse5.award:10 out of10.00 pointsThe two broad bases of leader power are organizational and personal.TrueFalse6.award:10 out of10.00 pointsTo successfully empower employees to achieve organizational goals, leaders must become flexible resources who assume numerous roles ascoaches and facilitators, depending upon the needs of their employees.TrueFalse7.award:10 out of10.00 pointsSocial skill, one of the components of emotional intelligence (EI), refers to personal proficiency in managing relationships and buildingnetworks.TrueFalse8.award:10 out of10.00 pointsCodes of conduct are a good way for an organization to attract individuals who might want to work for a business that embraces high standards.TrueFalse9.award:10 out of10.00 pointsA key function of the leaders in a learning organization is to generate an organization-wide commitment to change.TrueFalse10.award:10 out of10.00 pointsAs a manager, when faced with ethical crises you should not ___________________.cover up as much as possiblewait for the other party to make the first movefocus on issues most relevant to stockholders onlytake the initiative to address the problem11.award:10 out of10.00 pointsLeaders play an important role in changing and developing organization culture.TrueFalse12.award:10 out of10.00 pointsIn integrity-based ethics programs, organizational ethics is seen as the responsibility of management.TrueFalse13.award:10 out of10.00 pointsBehavioral barriers to change refer to elements of organization design, structure, and reporting relationships that impede the flow of information.TrueFalse14.award:10 out of10.00 pointsA potentially ineffective way to instill ethical behavior in an organization is to distribute rewards strictly on the basis of outcomes.TrueFalse15.award:10 out of10.00 pointsSelf-regulated people are able to create an environment of trust and fairness, where political behavior and infighting are sharply reduced andproductivity tends to be high.TrueFalse16.award:10 out of10.00 pointsConflicts arising from power relationships are referred to as __________.entry barriersbehavioral barrierssystemic barrierspolitical barriers17.award:10 out of10.00 pointsSystemic barriers to change occur because of conflicts between departments, conflicts arising from power relationships, and refusal to shareinformation.TrueFalse18.award:10 out of10.00 pointsAn integrity-based approach to ethics management combines a concern for law with an emphasis on managerial responsibility for ethicalbehavior.TrueFalse19.award:10 out of10.00 pointsWhich component of emotional intelligence (EI) involves awareness of cultural and ethnic differences?social skillsself-regulationempathyself-awareness20.award:10 out of10.00 pointsSelf-awareness is one of the components of emotional intelligence (EI).TrueFalse21.award:10 out of10.00 pointsOrganizational learning works best when there is integrated thinking and acting at all levels of the organization, according to Peter Senge.TrueFalse22.award:10 out of10.00 pointsThere are many advantages of an ethical organization including that it can have a positive effect on employee commitment and motivation toexcel.TrueFalse23.award:10 out of10.00 pointsLeaders play a key role in ____________ organization culture.regulatingmaintainingchangingreporting24.award:10 out of10.00 pointsThere cannot be a high-integrity organization, without high-integrity individuals.TrueFalse25.award:10 out of10.00 pointsThe example of Dennis Bakke, CEO of AES, in which he and his team took responsibility for employees who lied to the EPA about waterquality at the plant, suggests that for an ethical organization, it is necessary to do more than just take strong punitive action against thosewho act contrary to the company-established expected behavior.TrueFalseChapter 12 Quiz Spring 20151.award:10 out of10.00 pointsProduct innovations are commonly associated with a low cost strategy.TrueFalse2.award:10 out of10.00 pointsWhereas product champions are willing to violate procedures and operate outside normal channels, __________ gather hard data and developa strong case for why a project should be killed.marketing managersexit championsentrepreneurial leadersfinancial managers3.award:10 out of10.00 pointsEmbedded options are a series of investments in which at each stage of the investment there is a go or no-go decision. This is an example ofusing real options logic.TrueFalse4.award:10 out of10.00 pointsInnovation efforts of the firm often benefit from partnering with non-business entities such as universities and government agencies.TrueFalse5.award:10 out of10.00 pointsIncremental innovation often involves open-ended experimentation which can be very time consuming.TrueFalse6.award:10 out of10.00 pointsMore than sixty percent of corporate venturing efforts reach profitability within six years of their launch.TrueFalse7.award:10 out of10.00 pointsReal options analysis helps managers make investment decisions involving staged commitments of smaller financial resources.TrueFalse8.award:10 out of10.00 pointsOne of the potential benefits of real options analysis is that managers may have the incentive and know-how to game the system.TrueFalse9.award:10 out of10.00 pointsWhereas __________ are often associated with a low cost leader strategy, product innovations are frequently an important aspect of adifferentiation strategy.service innovationsradical innovationsprocess innovationsmanagement innovations10.award:10 out of10.00 pointsStrategic considerations for corporate entrepreneurship include ___________ and ___________.adding to the resource base of the corporation; reducing stakeholder commitmentstrengthening competitive position; exiting marketsstrengthening competitive position; obtaining above average returnsexpanding capabilities through learning; exiting markets11.award:10 out of10.00 pointsThe term skunkworks is used to refer to an independent work unit that may be physically separate from corporate headquarters in order todevelop entrepreneurial ideas.TrueFalse12.award:10 out of10.00 pointsFirms using a focused approach to corporate entrepreneurship do not separate corporate venturing activities from ongoing operations of thefirm.TrueFalse13.award:10 out of10.00 pointsProactiveness is a response to threats whereas competitive aggressiveness is a response to opportunities.TrueFalse14.award:10 out of10.00 pointsInnovation involves using old knowledge to transform organizational processes or create commercially viable products and services.TrueFalse15.award:0 out of10.00 pointsResearch indicates that leaders of less innovative firms spend fifty percent more time on discovery activities than the leaders of moreinnovative firms.TrueFalse16.award:10 out of10.00 pointsFirst movers in an industry often capture above-average profits and have the advantage that they can sustain this position through to thematurity phase of their life cycle.TrueFalse17.award:10 out of10.00 pointsExit champions are often eager to gather hard data about a venture, because it might kill the project.TrueFalse18.award:10 out of10.00 pointsThe strategic goals of corporate entrepreneurship are often less important than the financial goals.TrueFalse19.award:10 out of10.00 pointsDispersed approaches to corporate entrepreneurship are often found in organizations with a weak spirit of entrepreneurship.TrueFalse20.award:10 out of10.00 pointsProduct innovation refers to efforts to create designs and applications of technology to develop new products, while __________ refers toefforts to improve the efficiency of organizational systems such as manufacturing and operations.process innovationservice innovationradical innovationbreakthrough innovation21.award:10 out of10.00 pointsWhen corporate venturing is focused, the corporate entrepreneurship activities are isolated from the existing operations of the firm.TrueFalse22.award:10 out of10.00 pointsCrowdsourcing technologies, such as used by IBM when it hosted an Innovation Jam, foster collaboration between employees, customers,suppliers, and other stakeholders in their efforts to enhance innovation.TrueFalse23.award:10 out of10.00 pointsOptions exist when the owner of the option has the __________, but not the __________ to engage in a transaction.obligation; rightright; obligationright; financial meansobligation; financial means24.award:10 out of10.00 pointsAccording to the text, business incubators, which support fledgling startups are often used to pursue specific entrepreneurial venturesdeveloped by __________.product championsstrategic partnersnew venture groupslower-level managers25.award:10 out of10.00 pointsThe Dutch Boy twist and pour paint container is an example of a low tech source of innovation.TrueFalseMGT 490 All Chapters 7 to 12 Quizzes1.award:10 out of10.00 pointsTypically, joint ventures involve more control and risk than franchising.TrueFalse2.award:0 out of10.00 pointsElements of a multidomestic strategy may facilitate the competitive advantage of _________ by decreasing shipping and transportation costsinherent in local production.international strategymultidomestic strategyglobal strategytransnational strategy3.award:10 out of10.00 pointsIf a company is considering optimizing the physical location for every activity in the value chain, which of the following is not a possiblestrategic advantage for that decision?political risk reductionpolitical risk enhancementperformance enhancementcost reduction4.award:10 out of10.00 pointsBecause many countries are investing in countries other than their own, each country is becoming less autonomous and more dependent.TrueFalse5.award:10 out of10.00 pointsRivalry is intense in nations with conditions of __________ supplier bases, _________consumer demand, and __________ new entrantpotential from related industries.weak; weak; lowweak; weak; highstrong; strong; highstrong; strong; low6.award:10 out of10.00 pointsWhich of the following is not a risk associated with a global strategy?The geographic concentration of any activity may also tend to isolate that activity from the targeted markets.A firm with only one manufacturing location must export its product, sometimes at great distance from the operation.A firm with only one manufacturing location must import its product.Concentrating an activity in a single location makes the rest of the firm dependent on that location.7.award:10 out of10.00 pointsRecent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations wouldinclude all of the following, EXCEPT _______.flexible manufacturing trends allowing a decline in the minimum volume required to reach acceptable levels of production efficiencycustomer needs, interests, and tastes becoming increasingly similarfluctuating exchange ratesconsumers around the world increasingly willing to tradeoff idiosyncratic preferences in product features for lower price.8.award:10 out of10.00 pointsWhich of the following is not a reason for the rise in regional expansion?decreasing national trade restrictionsincrease in the number of local customersdecrease in the number of trading blocs and free trade zonesdecreasing value of local taxes and tariffs9.award:10 out of10.00 pointsTrading blocs and free trade zones promote the rise of regional expansion.TrueFalse10.award:10 out of10.00 pointsOffshoring takes place when a firm decides to shift an activity that they were previously performing in a foreign location to a domestic location.TrueFalse11.award:10 out of10.00 pointsA franchise generally expires after a few years; a license is designed to last even longer.TrueFalse12.award:10 out of10.00 pointsThe Michael Porter Diamond of National Advantage is a framework that explains why countries foster successful multinational corporationsbased on factor endowments; demand conditions; related and nonsupporting industries; and firm strategy, structure, and rivalry.TrueFalse13.award:10 out of10.00 pointsOne of the challenges with globalization is determining how to meet the needs of customers at the same income level.TrueFalse14.award:10 out of10.00 pointsMultinational firms are constantly faced with the dilemma of choosing between _______ and ___________.local adaptation; global integrationlocal adaptation; local integrationglobal adaptation; local integrationglobal adaptation; global integration15.award:10 out of10.00 pointsWhich would be the appropriate strategy for companies to use to compete in the global marketplace if the marketplace pressure is for lowercosts with no pressure for local adaptation?global strategyinternational strategymultidomestic strategytransnational strategy16.award:10 out of10.00 pointsWithin a worldwide market, the most effective strategies are purely multidomestic or purely global.TrueFalse17.award:10 out of10.00 pointsExpanding the global presence of a firm automatically increases its scale of operations.TrueFalse18.award:10 out of10.00 pointsWhich one of the following is one of the Theodore Levitt assumptions supporting a pure global strategy?MNCs can successfully compete globally by aggressively pricing products and sacrificing features.If the world markets are treated as heterogeneous, substantial economies of scale are easily achieved.Customer needs and interests are becoming more dissimilar.Consumers are willing to pay more for specific product features.19.award:10 out of10.00 pointsThe form of entry strategy into international operations that offers the _______level of control for the domestic corporation would be exporting.highestlowestbestworst20.award:10 out of10.00 pointsWhich of the following is not a risk normally associated with Bottom of the Pyramid strategies?Entrenched competitors can impact the ability of the new firm to enter the market successfully.The new low-cost products they develop may cannibalize the sales of their core products.New products may be perceived as exploiting the customer with substandard products.A low-end version of a brand may detract from the overall brand attractiveness.21.award:10 out of10.00 pointsA multidomestic strategy is the most appropriate strategy for international operations, because it drives economies of scale as far as possibleand provides a middle-of-the-road product that appeals to the smallest number of consumers in every market.TrueFalse22.award:10 out of10.00 pointsIndustries in which proportionally more value is added in __________ activities, such as logistics, are more likely to benefit from a globalstrategy.upstreammarketingsalesdownstream23.award:10 out of10.00 pointsWhich of the following is not a motivation for a company to pursue international expansion?It wishes to take advantage of arbitrage opportunities in order to increase profit.It wishes to increase the size of the potential markets for its products and services.It wishes to decrease foreign market penetration by developing products for the home market.It wishes to optimize value-chain activities to enhance performance, reduce costs, and reduce risk.24.award:10 out of10.00 pointsWhen firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When highpressures exist to lower costs, companies should choose a __________ or __________ in order to compete in the global marketplace.global strategy: multidomestic strategytransnational strategy; global strategyinternational strategy; transnational strategyinternational strategy; multidomestic strategy25.award:10 out of10.00 pointsExporting is an expensive way to enter domestic markets.TrueFalseaward:10 out of10.00 pointsAn entrepreneurial start-up can be successful, if three ingredients are critical. What are they?an opportunity, a marketing plan, and office spacea viable opportunity, available resources, and qualified and motivated founding teamgood ideas, a team of investors, and a business planmanagement, marketing, and money2.award:10 out of10.00 pointsEntrepreneurship refers to new value creation and can never include activities in major corporations.TrueFalse3.award:10 out of10.00 pointsThe process of identifying, ________, and developing new venture opportunities is known as opportunity recognition.categorizingbrainstormingselectingeliminating4.award:10 out of10.00 pointsEntrepreneurial firms are often in a weakened position to use combination strategies, because they do not have the flexibility to approachsituations uniquely.TrueFalse5.award:10 out of10.00 pointsIntense rivalry involving actions and responses among _________ competitors vying for the same customers in a marketplace is known as__________.similar; threat of substitutesdiverse; pioneering new entrydifferent; resource similaritysimilar; competitive dynamics6.award:10 out of10.00 pointsResource similarity is the extent to which rivals draw from the same types of resources in order to compete.TrueFalse7.award:10 out of10.00 pointsEntrepreneurial new entry is often perceived as a competitive threat because most market needs are not being met, either directly or indirectly,by an existing firm.TrueFalse8.award:10 out of10.00 pointsWhen attacked, older and larger firms tend to respond less quickly, but their responses are often more predictable.TrueFalse9.award:10 out of10.00 pointsFounders using an imitative new entry strategy look for opportunities to capitalize on proven market successes.TrueFalse10.award:10 out of10.00 pointsEntrepreneurial competitive dynamics refers to a cycle of actions and responses between firms competing for different customers.TrueFalse11.award:10 out of10.00 pointsOne of the ways entrepreneurs achieve success is by using resources more __________. This is an example of how entrepreneurs use_____________ strategy.efficiently; a low-cost leaderwisely; a combinationreasonably; a differentiationeffectively; an imitative12.award:10 out of10.00 pointsPandora pioneered a new way to broadcast music. This kind of breakthrough of creating ________ ways to solve old problems or meetingcustomer needs in a ___________ new way is referred to as a pioneering new entry.focused; focuseddifferentiated; differentiatedincremental; differentiatednew; unique13.award:10 out of10.00 pointsImitative new entry involves offering a radical new product or highly innovative service.TrueFalse14.award:10 out of10.00 pointsOpportunity recognition is the process of identifying, selecting, and reducing entrepreneurial opportunities.TrueFalse15.award:10 out of10.00 pointsBecause new ventures typically are small, they usually have high economies of scale relative to competitors.TrueFalse16.award:10 out of10.00 pointsA(n) ____________ is used by entrepreneurs who see products or business concepts that have been successful in one market niche andintroduce the same product in another segment of the market.proactive new entrypioneering new entryimitative new entryadaptive new entry17.award:10 out of10.00 pointsDifferentiation is often associated with _______ brand identify, __________ cost of advertising, and _____________ innovation.strong; expensive; inferiorstrong; inexpensive; inferiorstrong; expensive; superiorweak; inexpensive; superior18.award:10 out of10.00 pointsCommon sources of new business opportunities include: _________, ________, and ____________.past work experiences, suggestions by family, potential workfuture work experiences, suggestions by friends, chance eventscurrent work experiences, suggestions by friends, chance eventcurrent work experiences, suggestions by family, luck19.award:10 out of10.00 pointsBCG authors Stalk and Lachenauer published a book in which they listed competitive strategy for winning against incumbent rivals. Theseincluded devastate profit sanctuaries of rivals; _____ competitor costs; plagiarize with pride; ___________ the competition; and unleashmassive and overwhelming force,increase; disguiselower; exciteraise; deceivelower; eliminate20.award:0 out of10.00 pointsAn entry wedge, according to the text, is a type of entrepreneurial strategy firms can use to exit markets.TrueFalse21.award:10 out of10.00 pointsA company might launch new competitive actions to: improve market position, _______ on growing demand, ______________ productivecapacity, provide an innovative new solution, or obtain first mover advantages.capitalize; reduceconcentrate; decreasecapitalize; expandconcentrate; reduce22.award:10 out of10.00 pointsSmall businesses do not create the majority of new jobs in the U. S. economy.TrueFalse23.award:0 out of10.00 pointsWhen launching a new venture, finding a way to begin doing business must quickly generate cash flow, build credibility, attract goodemployees, and __________ the liability of newness.adapt toembraceovercomereward24.award:10 out of10.00 pointsMarket commonality refers to the extent to which competitors are vying for different customers in the same markets.TrueFalse25.award:10 out of10.00 pointsAmazon is an example of a company that used the differentiation strategy to enter the market. The differentiation features included ________.traditional delivery logisticsdoing it on the Internettraditional back office logisticsminimal customer service1.award:10 out of10.00 pointsIn order to minimize the temptation for managers to act in their own self-interest, governance mechanisms exist for implementationconsideration. Which of the following is a primary means for monitoring managerial behavior?a board of directors that acts in the best interests of shareholders to create short-term valuea board of directors that acts in the best interests of shareholders to create long-term valuestakeholder activism in which participants view themselves as shareholdersmanagerial incentives to align management interests with those of the board of directors2.award:10 out of10.00 pointsIn choosing sides concerning CEO duality, two schools of thought exist. Which of the following would be a consideration for the Unity ofCommand school of thought?CEO duality leads to confusion in the decision-making process.CEO duality decreases the responsiveness of the leadership to shareholder needs.CEO duality results in improved leadership efficiency and effectiveness.CEO duality does not provide clear focus on objectives and operations.3.award:10 out of10.00 pointsExternal governance control mechanisms include __________ and ________________.public activists; competitorsanalysts; auditorsmarket for corporate control; governmental regulatory bodiesmedia; competitors4.award:10 out of10.00 pointsAs firms simultaneously downsize and face the need for increased coordination across organizational boundaries, a control system basedprimarily on boundaries and constraints would be ___________.effectivedysfunctionalidealrecommended5.award:10 out of10.00 pointsContemporary approaches to strategic control rely primarily on _______ learning.comparative learningdouble-loopcontrolledsingle-loop6.award:10 out of10.00 pointsOnce a strong and healthy organizational culture has been established, it must be maintained in order to be effective.TrueFalse7.award:10 out of10.00 pointsBehavioral controls are aspects of strategic change that involve finding the appropriate balance and ________ among the culture, rewards, andboundaries of the firm.measureperformancealignmentoutcome8.award:10 out of10.00 pointsBehavioral control is primarily concerned with whether or not the organization is doing the right things.TrueFalse9.award:10 out of10.00 pointsCentral to agency theory is the concern with problems that can arise between the principals who are the owners of the firm and the agents whoare the people who are paid by outside consultants to perform a job on their behalf.TrueFalse10.award:10 out of10.00 pointsStrategic control systems cannot correct the performance and ultimate strategy of a firm.TrueFalse11.award:10 out of10.00 pointsThe traditional approach to strategic control is sequential. Which of the following is not one of the steps in the sequence?Performance is measured against the predetermined goal.Strategies are formulated and top management sets goals.Lower and middle management set strategic corporate goals.Strategies are implemented.12.award:10 out of10.00 pointsChanges in board of director configurations since 1987 indicate that board directors were paid less in 2011, were older, were likely to be femaleand were independent from the company (not insiders).TrueFalse13.award:10 out of10.00 pointsFor businesses facing complex and turbulent business environments, which of the following is true?Goals and objectives that are uncertain prevent opportunism.Complacency about predetermined milestones can prevent adaptability.Detailed plans are needed to maintain order.Traditional strategic controls are more appropriate for stable environments.14.award:10 out of10.00 pointsWhich of the following is an example of how organizational culture exerts behavioral control?Culture sets implicit boundaries that encourage individual identification with the organization objectives.Culture discourages individual identification with the organization by creating a framework of shared values.Culture sets explicit boundaries that discourage individual identification with the organization objectives.Culture sets a framework of shared values that discourages individual identification with the organization objectives.15.award:10 out of10.00 pointsFor firms competing in highly stable industries, traditional strategic controls are most appropriate.TrueFalse16.award:10 out of10.00 pointsDouble-loop learning enhances the ability of the organization to respond with speed and flexibility.TrueFalse17.award:10 out of10.00 pointsIn the contemporary approach to control systems, benefits of continuous monitoring include ___________.organization response time is increasedorganizational flexibility is reducedtime lags are dramatically increasedearly detection of changes in the competitive environment18.award:10 out of10.00 pointsThe primary participants in corporate governance, according to Monks and Minow, are all of the stakeholders, board of directors, andemployees.TrueFalse19.award:10 out of10.00 pointsSales quotas, operating budgets, and production schedules are examples of contemporary controls.TrueFalse20.award:10 out of10.00 pointsPrimary participants in corporate governance are __________, _________, and __________.employees; management; board of directorsshareholders; management; board of directorsCEO; outside stakeholders; board of directorsmanagement; stakeholders; community21.award:10 out of10.00 pointsBehavioral controls involve the appropriate balance and alignment among the culture, rewards, and boundaries of a firm.TrueFalse22.award:10 out of10.00 pointsWhat happens when subcultures emerge that have shared values opposite from the dominant culture of an organization?Individuals lose sight of overall goals and begin working at cross-purposes.Information is likely to be shared more easily.Organizational cohesiveness tends to increase.Individuals gain a better understanding of the overall goals of the organization.23.award:10 out of10.00 pointsInformational control systems are concerned with which of the following?Is the organization doing what is right?Is the organization doing things correctly?Are rules and regulations being followed?Is the organization viable?24.award:10 out of10.00 pointsCalPERS, the California Public Employees Retirement System, manages over 240 billion dollars in assets. As an example of shared activism,they review all short- and long-term performance figures for each of the firms in which they invest and then work to ensure shareholder rightsby forcing the companies to change their business strategy.TrueFalse25.award:10 out of10.00 pointsThe collective sum of individual behaviors of the employees of an organization does not always result in what is best for the organization.TrueFalse1.award:10 out of10.00 pointsFunctional types of organizational structure permit a firm to __________ its coordination and control within each of the functional areas.enhancepoolleverageestablish2.award:10 out of10.00 pointsWhen a firm has international operations, choosing the most appropriate structure depends upon the extent of international expansion, the typeof strategy, and the degree of product diversity.TrueFalse3.award:10 out of10.00 pointsA simple organizational structure may lead to problems such as clear boundaries of authority and few career advancement options.TrueFalse4.award:10 out of10.00 pointsOrganizations are increasingly using teams for many reasons. The difference between a good team and an outstanding team has been foundto be _____________.the degree to which they believed in one another and created an atmosphere of encouragementsimilarities in the age and experience of team membersimilarities in the way team members solve problemsthe combined technical skills of the members5.award:10 out of10.00 pointsGlobal start-ups are global from inception and seek to derive competitive advantage from multiple country presence.TrueFalse6.award:10 out of10.00 pointsMultidomestic strategies are driven by political and cultural imperatives requiring managers within each country to respond to local conditions. Anappropriate structure for these kinds of firms and their products and market diversity increases would be _______________.an international divisiona worldwide matrixa worldwide functionala worldwide product division7.award:10 out of10.00 pointsAmbidextrous organizational designs are useful for firms that wish to create modest, incremental innovations at the same time as dramatic,breakthrough innovation. This is done by disassociating adaptability and alignment of values and coordination across organizational activities.TrueFalse8.award:10 out of10.00 pointsA strategy of related diversification requires a need to reorganize around product lines or geographic markets. This is likely to result in a______________ structure.functionaldivisionalmatrixworldwide9.award:10 out of10.00 pointsA small firm with a simple structure often fosters creativity and individualism because of its formal atmosphere.TrueFalse10.award:10 out of10.00 pointsThe strategy and structure of a firm change as the firm increases in size, diversifies into new product markets, and expands its geographicscope.TrueFalse11.award:10 out of10.00 pointsA simple structure is characterized by _________________.highly centralized decision makinghigh specialization of taskshigh formality and low centralizationlow formality and low creativity12.award:10 out of10.00 pointsWhen an organization with a simple structure typically ________ its sales revenue and volume of outputs, it is said to be using a functionalstructure.increasesdecreasesdepletesdistributes13.award:10 out of10.00 pointsDeciding upon the most appropriate structure when a firm has international operations depends on ___________________.the strategic objectivesthe degree of market diversitythe extent of international expansionthe mission14.award:10 out of10.00 pointsThe ___________ organization becomes a central hub surrounded by networks of outside suppliers and specialists and parts can be added ortaken.modularboundedvirtualbarrier-free15.award:10 out of10.00 pointsIn a simple structure where the owner manager makes most of the important decisions, few rules and regulations are used to maintain order.TrueFalse16.award:10 out of10.00 pointsThe strategy that a firm chooses dictates such structural elements as the division of tasks, the need for integration of activities, and authorityrelationships within the organization. This implies that _______________.strategy can effectively be formulated without considering structural elementsstrategy follows structurestructure follows strategystructure typically has a very small influence on the strategy of a firm17.award:10 out of10.00 pointsA strategy of related diversification requires a need to reorganize around product lines or geographic markets. This leads to a divisionalstructure.TrueFalse18.award:10 out of10.00 pointsAccording to the text, boundaryless organizational designs need not replace traditional forms of organizational structure in order to be effective.TrueFalse19.award:10 out of10.00 pointsFunctional structures are usually found in organizations where ____________.there is a single or closely related productthere are unrelated service offeringsthere exists a strong need to decentralize decision makingthere is no vertical integration20.award:10 out of10.00 pointsDifferent types of boundaries place limits on organizations in order to foster high degrees of interaction with outside influences and varyinglevels of permeability.TrueFalse21.award:10 out of10.00 pointsA global startup typically benefits from lower communication, coordination, and transportation costs.TrueFalse22.award:10 out of10.00 pointsAs firms grow, owner managers rarely need to hire functional specialists to handle the increased information-processing burden.TrueFalse23.award:10 out of10.00 pointsA domestic product division structure is used when global strategies require that the corporate offices be responsible for overall efficiency andperformance.TrueFalse24.award:10 out of10.00 pointsJack Welch, former CEO of GE, believes that all internal and external organizational boundaries should become open and more permeable.TrueFalse25.award:10 out of10.00 pointsTo enhance integration and control of related product market activities, the functional structure increases centralization.TrueFalse1.award:10 out of10.00 pointsWhich of the following statements about ethical organizations is true?There are many potential benefits of an ethical organization, but they often are indirect.Organizational ethics never define what a company is and what it stands for.Ethical values do not shape the search for opportunities.Ethics provide a non-unifying framework across the organization.2.award:10 out of10.00 pointsThree key interdependent strategic leadership activities are: designing the organization; maintaining its direction; and nurturing a culture dedicated to excellence and ethical behavior.TrueFalse3.award:10 out of10.00 pointsMany leaders have difficulty implementing their vision and strategies. Such problems may stem from a variety of issues in the design of theorganization such as ________.teams, systems, and organizational processes that facilitate implementationinappropriate budgeting and control systemssufficient mechanisms that integrate and coordinate activities across the firmadequate accountability among managers and employees4.award:10 out of10.00 pointsEthics concerns both the organization and the individual. This is true for all stakeholders in the organization.TrueFalse5.award:10 out of10.00 pointsThe two broad bases of leader power are organizational and personal.TrueFalse6.award:10 out of10.00 pointsTo successfully empower employees to achieve organizational goals, leaders must become flexible resources who assume numerous roles ascoaches and facilitators, depending upon the needs of their employees.TrueFalse7.award:10 out of10.00 pointsSocial skill, one of the components of emotional intelligence (EI), refers to personal proficiency in managing relationships and buildingnetworks.TrueFalse8.award:10 out of10.00 pointsCodes of conduct are a good way for an organization to attract individuals who might want to work for a business that embraces high standards.TrueFalse9.award:10 out of10.00 pointsA key function of the leaders in a learning organization is to generate an organization-wide commitment to change.TrueFalse10.award:10 out of10.00 pointsAs a manager, when faced with ethical crises you should not ___________________.cover up as much as possiblewait for the other party to make the first movefocus on issues most relevant to stockholders onlytake the initiative to address the problem11.award:10 out of10.00 pointsLeaders play an important role in changing and developing organization culture.TrueFalse12.award:10 out of10.00 pointsIn integrity-based ethics programs, organizational ethics is seen as the responsibility of management.TrueFalse13.award:10 out of10.00 pointsBehavioral barriers to change refer to elements of organization design, structure, and reporting relationships that impede the flow of information.TrueFalse14.award:10 out of10.00 pointsA potentially ineffective way to instill ethical behavior in an organization is to distribute rewards strictly on the basis of outcomes.TrueFalse15.award:10 out of10.00 pointsSelf-regulated people are able to create an environment of trust and fairness, where political behavior and infighting are sharply reduced andproductivity tends to be high.TrueFalse16.award:10 out of10.00 pointsConflicts arising from power relationships are referred to as __________.entry barriersbehavioral barrierssystemic barrierspolitical barriers17.award:10 out of10.00 pointsSystemic barriers to change occur because of conflicts between departments, conflicts arising from power relationships, and refusal to shareinformation.TrueFalse18.award:10 out of10.00 pointsAn integrity-based approach to ethics management combines a concern for law with an emphasis on managerial responsibility for ethicalbehavior.TrueFalse19.award:10 out of10.00 pointsWhich component of emotional intelligence (EI) involves awareness of cultural and ethnic differences?social skillsself-regulationempathyself-awareness20.award:10 out of10.00 pointsSelf-awareness is one of the components of emotional intelligence (EI).TrueFalse21.award:10 out of10.00 pointsOrganizational learning works best when there is integrated thinking and acting at all levels of the organization, according to Peter Senge.TrueFalse22.award:10 out of10.00 pointsThere are many advantages of an ethical organization including that it can have a positive effect on employee commitment and motivation toexcel.TrueFalse23.award:10 out of10.00 pointsLeaders play a key role in ____________ organization culture.regulatingmaintainingchangingreporting24.award:10 out of10.00 pointsThere cannot be a high-integrity organization, without high-integrity individuals.TrueFalse25.award:10 out of10.00 pointsThe example of Dennis Bakke, CEO of AES, in which he and his team took responsibility for employees who lied to the EPA about waterquality at the plant, suggests that for an ethical organization, it is necessary to do more than just take strong punitive action against thosewho act contrary to the company-established expected behavior.TrueFalse1.award:10 out of10.00 pointsProduct innovations are commonly associated with a low cost strategy.TrueFalse2.award:10 out of10.00 pointsWhereas product champions are willing to violate procedures and operate outside normal channels, __________ gather hard data and developa strong case for why a project should be killed.marketing managersexit championsentrepreneurial leadersfinancial managers3.award:10 out of10.00 pointsEmbedded options are a series of investments in which at each stage of the investment there is a go or no-go decision. This is an example ofusing real options logic.TrueFalse4.award:10 out of10.00 pointsInnovation efforts of the firm often benefit from partnering with non-business entities such as universities and government agencies.TrueFalse5.award:10 out of10.00 pointsIncremental innovation often involves open-ended experimentation which can be very time consuming.TrueFalse6.award:10 out of10.00 pointsMore than sixty percent of corporate venturing efforts reach profitability within six years of their launch.TrueFalse7.award:10 out of10.00 pointsReal options analysis helps managers make investment decisions involving staged commitments of smaller financial resources.TrueFalse8.award:10 out of10.00 pointsOne of the potential benefits of real options analysis is that managers may have the incentive and know-how to game the system.TrueFalse9.award:10 out of10.00 pointsWhereas __________ are often associated with a low cost leader strategy, product innovations are frequently an important aspect of adifferentiation strategy.service innovationsradical innovationsprocess innovationsmanagement innovations10.award:10 out of10.00 pointsStrategic considerations for corporate entrepreneurship include ___________ and ___________.adding to the resource base of the corporation; reducing stakeholder commitmentstrengthening competitive position; exiting marketsstrengthening competitive position; obtaining above average returnsexpanding capabilities through learning; exiting markets11.award:10 out of10.00 pointsThe term skunkworks is used to refer to an independent work unit that may be physically separate from corporate headquarters in order todevelop entrepreneurial ideas.TrueFalse12.award:10 out of10.00 pointsFirms using a focused approach to corporate entrepreneurship do not separate corporate venturing activities from ongoing operations of thefirm.TrueFalse13.award:10 out of10.00 pointsProactiveness is a response to threats whereas competitive aggressiveness is a response to opportunities.TrueFalse14.award:10 out of10.00 pointsInnovation involves using old knowledge to transform organizational processes or create commercially viable products and services.TrueFalse15.award:0 out of10.00 pointsResearch indicates that leaders of less innovative firms spend fifty percent more time on discovery activities than the leaders of moreinnovative firms.TrueFalse16.award:10 out of10.00 pointsFirst movers in an industry often capture above-average profits and have the advantage that they can sustain this position through to thematurity phase of their life cycle.TrueFalse17.award:10 out of10.00 pointsExit champions are often eager to gather hard data about a venture, because it might kill the project.TrueFalse18.award:10 out of10.00 pointsThe strategic goals of corporate entrepreneurship are often less important than the financial goals.TrueFalse19.award:10 out of10.00 pointsDispersed approaches to corporate entrepreneurship are often found in organizations with a weak spirit of entrepreneurship.TrueFalse20.award:10 out of10.00 pointsProduct innovation refers to efforts to create designs and applications of technology to develop new products, while __________ refers toefforts to improve the efficiency of organizational systems such as manufacturing and operations.process innovationservice innovationradical innovationbreakthrough innovation21.award:10 out of10.00 pointsWhen corporate venturing is focused, the corporate entrepreneurship activities are isolated from the existing operations of the firm.TrueFalse22.award:10 out of10.00 pointsCrowdsourcing technologies, such as used by IBM when it hosted an Innovation Jam, foster collaboration between employees, customers,suppliers, and other stakeholders in their efforts to enhance innovation.TrueFalse23.award:10 out of10.00 pointsOptions exist when the owner of the option has the __________, but not the __________ to engage in a transaction.obligation; rightright; obligationright; financial meansobligation; financial means24.award:10 out of10.00 pointsAccording to the text, business incubators, which support fledgling startups are often used to pursue specific entrepreneurial venturesdeveloped by __________.product championsstrategic partnersnew venture groupslower-level managers25.award:10 out of10.00 pointsThe Dutch Boy twist and pour paint container is an example of a low tech source of innovation.TrueFalse