MBA 705 Organizational Strategies and Policies McLaughlin LSUS Actual Exam 2026

MBA 705 Organizational Strategies and Policies McLaughlin LSUS Actual Exam 2026 What is business-to-business (B2B)? The segment of electronic commerce whereby businesses utilize the internet to solicit transactions from each other What is business-to-consumer (B2C)? The segment of electronic commerce whereby businesses utilize the internet to solicit transactions from consumers, also known as E-tailing What is business-to-government (B2G)? The segment of electronic commerce whereby businesses utilize the internet to solicit transactions from government entities What are clicks and bricks? The simultaneous application of both electronic ("clicks") and traditional ("bricks") forms of commerce What is commoditization? A process whereby firms are having a more difficult time distinguishing their products and services from those of their rivals What is culture? A society's generally accepted values, traditions, and patterns of behavior What is E-tailing? Another term for B2c What are economies of scale? The decline in unit costs of a product or service that occurs as the absolute volume of production increases What is environmental scanning? MBA 705 MBA 705 The systematic collection and analysis of information about relevant micro environmental trends What are some benefits of environmental scanning? An increased general awareness of environmental changes, better strategic planning and decision-making, greater effectiveness in governmental matter, more effective diversification and resource allocation decisions What is information asymmetry? When one party has information that another does not have What is information symmetry? When all parties to a transaction share the same information concerning that transaction What is mass customization? The ability to individualize product and service offerings to meet specific buyer needs; enabled by technology What is mobile commerce (m-commerce)? Transactions conducted in an entirely wireless environment, such as using a smartphone to both purchase and download an airline ticket or piece of music What is outsourcing? Contracting out a form's noncore, non-revenue-producing activities to other organizations primarily to reduce costs What are partnerships? Contractual relationships with enterprises outside the organization What is self-reference criterion? The unconscious reference to one's own cultural values as a standard of judgement What are societal values? Concepts and beliefs that members of a society tend to hold in high esteem What are social forces within microenvironmental forces? Societal values, trends, traditions, religious practices, and concern for the environment What is an example of social forces? Consumers "super size" at record rates while demanding healthier foods; fast food restaurants "supersizing" their meal combinations or expanding their menus to include grilled items and salads MBA 705 MBA 705 What are some global concerns? Firms operating in multiple countries must address multiple sets of social forces; social forces are influenced by national culture, the generally accepted values, traditions, and patterns of behavior in a society. Firms should recognize these cultural differences; some firms struggle because their managers consciously refer to their own cultural values as a standard of judgement What is the self-reference criterion? Ex. Some firms struggle because their managers consciously refer to their own cultural values as a standard of judgement What is arguably the most pervasive technological force affecting industries? The internet What is the book the world is flat? Thomas friedman, 2005. Telecommunications firms laid fiber optic cables across the oceans to connect the us with china and india in the late 1990s because of the dot-com bust What is the strategy for the internet and its business mode? Michael porter and other argue that the traditional/original business model is still used and a new one does not need to be created What is disaggregation? When progressive firms no longer perform all of their functional activities, but "reaggregate" by searching for partners who can perform some of the activities more efficiently What are the five strategic dimensions? Movement toward information symmetry, internet as distribution channel, speed, interactivity, and potential for cost reductions and cost shifting What is adverse selection? The inability of shareholders to identify the precise competencies and personal attributes of top managers when they are hired What is an agency problem? A situation in which a firm's top managers (i.e. The "agents" of the firm's owners) do not act in the best interests of the shareholders MBA 705 MBA 705 What is diversification? The process of acquiring companies to increase a firm's size What are employee stock ownership plans (esops)? Formal programs that transfer shares of stock to a company's employees What is ethical relativism? The idea that ethics is based on accepted norms in a culture, meaning that what is ethical in one nation or culture might be unethical in another What are goals? Desired general ends toward which efforts are directed What are integrative social contract views on ethics? Perspective suggesting that decisions should be based on existing norms of behavior, including cultural, community, or industry factors What are justice views of ethics? Perspective suggesting that all decisions will be made in accordance with established rules or guidelines What is leveraged burnout (lbo)? A takeover in which the acquiring party borrows funds to purchase a firm What are managerial ethics? An individual's responsibility to make business decisions that are legal, moral, and fair What is a moral hazard? When parties in an arrangement do not share equally in the risks and benefits What are objectives? Specific, verifiable, and often quantified versions of a goal What is objectivism? A philosophical perspective, espoused by ayn rand, that emphasizes an objective reality understood by logic and reason and focuses on individual freedom and property rights What is offshoring? Relocating some or all of a firm's manufacturing or other business processes to another country typically to reduce costs What is a religious view on ethics? MBA 705 MBA 705 Perspective that evaluates organizational decisions on the basis of personal or religious convictions What is the integrative social contracts view? Decisions should be based on existing norms of behavior, including cultural, community, or industry factors What is a rights view of ethics? Perspective that evaluated organizational decisions on the extent to which they protect individual rights What is a self-interest view on ethics? Perspective suggesting the benefits of the decision maker should be the primary consideration when weighing a decision What is a utilitarian view of ethics? Perspective suggesting that anticipated outcomes and consequences should be the only considerations when evaluating an ethical dilemma What is social responsibility? The expectation that business firms should serve both society and the financial interests of shareholders What are six explanations for unethical behavior? Individuals deny responsibility, rationalizing that they have no other choice but to participate in unethical behaviors; individuals deny injury, suggesting that the unethical behavior did not really hurt anyone; individuals deny rights of the victims, rationalizing that "they deserve what they got anyways"; individuals engage in social weighting by making carefully controlled comparisons; individuals can appeal to higher values by suggesting that behavior is due to a higher order value; individuals may invoke the metaphor of the ledger What is the metaphor of the ledger? Arguing that they have the right to engage in certain unethical practices because of other good things they have done What are stakeholders? Individuals or groups who are affected by or can influence an organization's operations What is sustainable strategic management (ssm)? MBA 705 MBA 705 The strategies and related processes that promote superior performance from both market and environmental perspectives What is the difference between social responsibility and ethics? Ethics is about the individual; social responsibility is about the firm What is a takeover? The purchase of a controlling quantity of shares in a firm by individual, a group of investors, or another organization; may be friendly or unfriendly What are two pros of takeovers? Provide a needed system of checks and balances; the threat of a takeover can pressure managers to operate their firms more efficiently What are two cons of takeovers? The need to pay back large loans can cause management to overemphasize the short term; extra debt requires for an lbo can lead to bankruptcy What is the triple bottom line? The notion that firms must maintain and improve social and ecological performance in addition to economic performance What is an adverse selection? The inability of shareholders to identify the precise competencies and personal attributes of top managers when they are hired What are arguments for a corporate social responsibility (csr)? Focus on the need for firms to "give back" to the community. They highlight both the influence and resources available to firms in terms of advertising, product development, and community involvement What are the arguments against a corporate social responsibility (csr)? Emphasize that firms should be active socially only when doing so enhances profits. Managers don't know what's in the best interest of society and they shouldn't spend shareholder resources on such endeavors. Firm's don't need to "give back" because they already serve society by providing needed products, jobs, tax revenue What is an acquisition? A form of a merger whereby one form purchases another, often with a combination of cash MBA 705 MBA 705 What is backward integration? A firm's acquisition of its suppliers What is BCG growth-share matrix? A corporate portfolio framework developed by the Boston consulting group that categorizes a form's business units by the market share that they hold and the growth rate of their respective markets What is conglomerate (unrelated) diversification? A form of diversification in which a firm acquires a business to reduce cyclical fluctuations in cash flows or revenues What are core competencies? The firm's key capabilities and collective learning skills that are fundamental to its strategy, performance, and long-term profitability What is a corporate profile? Identification of the industry or industries in which a firm operates What is corporate-level strategy? The strategy that top management formulates for the overall company What is divestment? A corporate level retrenchment strategy in which a firm sells one or more of its business units What is external growth? A corporate-level growth strategy whereby a firm acquires other companies What is forward integration? A firm's acquisition of one or more of its buyers What is growth strategy? A corporate-level strategy designed to increase revenues, and ultimately profits and/or market share What is horizontal integration? A form of acquit ion in which a firm expands by acquiring other companies in its same line of business What is horizontal related diversification? MBA 705 MBA 705 A form of diversification in which a firm acquires a business outside its present scope of operation but with similar or related core competencies What is internal growth? A corporate-level growth strategy in which a firm expands by internally increasing its size and sales rather than by acquiring other companies What is international franchising? A form of licensing in which a local franchisee pays a franchiser in another country for the right to use the franchiser's brand names, promotions, materials, and procedures What international licensing? An arrangement whereby a foreign license purchases the rights to produce a company's products and/or use its technology in the licensee's country for a negotiated fee structure What is liquidation? A corporate-level retrenchment strategy in which a firm terminates on or more of its business units by the sale off their assests What is a merger? A corporate-level north strategy in which a firm combines with another firm through an exchange of stock What is stability strategy? A corporate-level strategy intended to maintain a firm's present size and current lines of business What are strategic alliances? A corporate-level growth strategy in which two or more firms agree to share the costs, risks, and benefits associated with pursuing new business opportunities. _________ _________ are often referred to as partnerships What is synergy? When the combination of two firms results in higher efficiency and effectiveness than would otherwise be achieved by the two firms separately What os a turnaround? MBA 705 MBA 705 A corporate-level retrenchment strategy intended to transform the firm into a leaner and more effective business by reducing costs an