Strategic Management Final Exam 9A/B
Questions & Answers(GRADED A+)
differentiation - ANSWERHorizontal integration through mergers and acquisitions can help firms
strengthen their competitive positions by increasing (of product and service offerings)
Promised synergies never take place. - ANSWERWhat is the main reason that most mergers and
acquisitions negatively affect shareholder value?
build-borrow-buy framework - ANSWERLupita is the CEO of JustFixIt Inc., a firm that merges
technology with commercial hardware. She has been struggling with the decision to allocate her
resources for the development of a new system or go to the market and search for an already
established system. The board of directors for JustFixIt Inc. suggested that the firm enter a
contractual agreement with a partner. This scenario best illustrates the concept of
acqusition - ANSWERWhen large, incumbent firms buy startup companies, the transaction is
generally described as a(n)
hostile takeover - ANSWERNoRu Inc. is a publicly traded firm that does not wish to be acquired by
FRESHPoP Corporation, a much larger publicly traded firm, who is planning an acquisition of NoRu
Inc. This is an example of a
real options perspective - ANSWERGeovax Inc., a biotechnology company, was established to develop
an effective vaccine against a deadly virus. As such, a large investment firm formed an equity alliance
with Geovax that resulted in a significant financial investment that followed a string of smaller
investments so long as Geovax continued to make headway toward its vaccine. This "wait and see
approach" can best be described as
strategic alliance - ANSWERTyrell Corporation, a manufacturer of smartphones, has entered into a
15-year partnership with a software company to develop sophisticated operating systems and
innovative mobile applications for its phones. This would mean that both companies will have to
mutually share their resources, knowledge, and capabilities to develop a superior product. What is
the relationship between Tyrell Corporation and the software company best referred to as in this
scenario?
lower costs - ANSWERWhich of the following is one of the benefits of horizontal integration?
, building downstream complementary assets can be expensive and time-consuming. - ANSWERWhen
entering a foreign market, it is advisable for a new venture that has a core competency only in R&D
to form a strategic alliance with a local partner because
similar to those that need to be developed and superior to those of competitors in the targeted area.
- ANSWERIn terms of the Build-Borrow-Buy framework, a firm's internal resources are considered to
be relevant when they are
buildings - ANSWERFor the maximum benefit of each part, a corporation is a mechanism created to
allow different parties to contribute all the following except...A corporation is a mechanism created
to allow different parties to contribute capital, expertise, and labor for the maximum benefit of each
party.
traders; permanent - ANSWERMany institutional investors are aggressive in protecting and
enhancing their investments. They are shifting from _______ to owners. They are assuming the role
of _______ shareholders and rigorously analyzing issues of corporate governance. In the process,
they are reinventing systems of corporate monitoring and accountability.
balance and alignment - ANSWERBehavioral controls are aspects of strategic change that involve
finding the appropriate ________ and ________ among the culture, rewards, and boundaries of the
firm.
there is broader access to knowledge and resources in the broader community - ANSWERWhich of
the following is a benefit of outsider dominance on boards of directors?
action plans are submitted by lower level managers - ANSWERThe traditional approach to strategic
control is sequential. Which of the following is not one of the steps in the sequence?
financial institutions - ANSWERThe primary participants in corporate governance do not include the
employees are highly skilled and independent - ANSWERRule-based controls are least appropriate in
organizations with which one of the following characteristics?--Rule based controls are most
appropriate in organizations with the following characteristics: environments are stable and
predictable, employees are largely unskilled and interchangeable, consistency in product and service
is critical, and the risk of malfeasance is extremely high.
Effective boundaries and constraints - ANSWERminimize improper and unethical conduct.
Questions & Answers(GRADED A+)
differentiation - ANSWERHorizontal integration through mergers and acquisitions can help firms
strengthen their competitive positions by increasing (of product and service offerings)
Promised synergies never take place. - ANSWERWhat is the main reason that most mergers and
acquisitions negatively affect shareholder value?
build-borrow-buy framework - ANSWERLupita is the CEO of JustFixIt Inc., a firm that merges
technology with commercial hardware. She has been struggling with the decision to allocate her
resources for the development of a new system or go to the market and search for an already
established system. The board of directors for JustFixIt Inc. suggested that the firm enter a
contractual agreement with a partner. This scenario best illustrates the concept of
acqusition - ANSWERWhen large, incumbent firms buy startup companies, the transaction is
generally described as a(n)
hostile takeover - ANSWERNoRu Inc. is a publicly traded firm that does not wish to be acquired by
FRESHPoP Corporation, a much larger publicly traded firm, who is planning an acquisition of NoRu
Inc. This is an example of a
real options perspective - ANSWERGeovax Inc., a biotechnology company, was established to develop
an effective vaccine against a deadly virus. As such, a large investment firm formed an equity alliance
with Geovax that resulted in a significant financial investment that followed a string of smaller
investments so long as Geovax continued to make headway toward its vaccine. This "wait and see
approach" can best be described as
strategic alliance - ANSWERTyrell Corporation, a manufacturer of smartphones, has entered into a
15-year partnership with a software company to develop sophisticated operating systems and
innovative mobile applications for its phones. This would mean that both companies will have to
mutually share their resources, knowledge, and capabilities to develop a superior product. What is
the relationship between Tyrell Corporation and the software company best referred to as in this
scenario?
lower costs - ANSWERWhich of the following is one of the benefits of horizontal integration?
, building downstream complementary assets can be expensive and time-consuming. - ANSWERWhen
entering a foreign market, it is advisable for a new venture that has a core competency only in R&D
to form a strategic alliance with a local partner because
similar to those that need to be developed and superior to those of competitors in the targeted area.
- ANSWERIn terms of the Build-Borrow-Buy framework, a firm's internal resources are considered to
be relevant when they are
buildings - ANSWERFor the maximum benefit of each part, a corporation is a mechanism created to
allow different parties to contribute all the following except...A corporation is a mechanism created
to allow different parties to contribute capital, expertise, and labor for the maximum benefit of each
party.
traders; permanent - ANSWERMany institutional investors are aggressive in protecting and
enhancing their investments. They are shifting from _______ to owners. They are assuming the role
of _______ shareholders and rigorously analyzing issues of corporate governance. In the process,
they are reinventing systems of corporate monitoring and accountability.
balance and alignment - ANSWERBehavioral controls are aspects of strategic change that involve
finding the appropriate ________ and ________ among the culture, rewards, and boundaries of the
firm.
there is broader access to knowledge and resources in the broader community - ANSWERWhich of
the following is a benefit of outsider dominance on boards of directors?
action plans are submitted by lower level managers - ANSWERThe traditional approach to strategic
control is sequential. Which of the following is not one of the steps in the sequence?
financial institutions - ANSWERThe primary participants in corporate governance do not include the
employees are highly skilled and independent - ANSWERRule-based controls are least appropriate in
organizations with which one of the following characteristics?--Rule based controls are most
appropriate in organizations with the following characteristics: environments are stable and
predictable, employees are largely unskilled and interchangeable, consistency in product and service
is critical, and the risk of malfeasance is extremely high.
Effective boundaries and constraints - ANSWERminimize improper and unethical conduct.
