BSG Exam 2 (Answered) Complete Solution Verified 2022
The advantages of a centralized organization structure include
Reduced potential for conflicting actions and decisions on the part of lower-level
personnel, facilitation of strong top management leadership in crisis situations, and tight
control by the manager in charge-it is easy to know who is accountable when things do
not go well
One of the disadvantages of a decentralized structure featuring employee
empowerment is
A loss of "full control" on the part of top management (because higher-level managers
may be unaware of actions taken by empowered employees under their supervision).
Which of the following is not among the principal managerial components of the
strategy execution process?
Selecting energetic and motivated employees, training employees properly, and doing
an effective job of empowering employees
Which of the following is not a shortcoming or disadvantage of a decentralized
organizational structure?
Raises employee anxiety levels, thus discouraging many company personnel from
being deeply involved in the business and lowering their motivation levels
Management's handling of the process of implementing and executing a
company's strategy can be considered successful
If a company is meeting or beating its performance targets and has attained real
proficiency in performing strategy critical value chain activities
Which one of the following is not part of organizing a company's work effort in
ways that promote successful strategy execution? (A summary of the key
components of organizing the work effort appears in Figure 10.3.)
How to organize the performance of value chain activities in ways that produce greater
product differentiation versus the products of rivals
Which of the following is the best example of related diversification?
A producer of golf clubs and golf bags acquiring a maker of golf shoes and golf apparel
Which one of the following is not among the outcomes that corporate executives
should pursue in order for a strategy of unrelated diversification to produce
companywide financial results above and beyond what the businesses could
generate operating as stand-alone entities?
Focus on acquiring businesses that offer the best opportunities for achieving rapid
market growth and that have a big competitive advantage over rivals (thereby satisfying
the industry attractiveness and competitive strength tests).
A business unit's location in the nine-cell industry attractiveness-competitive
strength matrix
Signals whether each business' priority for receiving new investment capital and other
resources from its corporate parent should be high, medium, or low
Which of the following is not one of the appeals of related diversification?
It is particularly well-suited for minimizing business risk and capturing valuable industry
attractiveness fits.
Economies of scope
are cost reductions that flow from operating in multiple related businesses.
, A "cash hog" type of business
Generates cash flows that are too small to fully fund its operations and growth—such
businesses require periodic cash infusions by the corporate parent to provide additional
working capital and finance new capital investment
Which of the following are negatives or disadvantages of pursuing unrelated
diversification
strategies?
Demanding managerial requirements
Which one of the following is not among the strategic options for improving a
diversified company's overall performance?
Implementing a common competitive strategy for all of the company's business units
and striving for the same competitive advantage companywide
The advantages of using a licensing strategy to participate in foreign markets
include
being able to generate revenues and income from a company's technical know-how or a
unique patented product without committing significant additional resources to country
markets that are unfamiliar, politically volatile, economically unstable, or otherwise risky
Global competition exists when
competitive conditions across national markets are linked strongly enough to form a true
international or world market and when leading competitors compete head to head in
many different countries
A profit sanctuary refers to a country market (or geographic region) where a
company
derives substantial profits because of its strong or protected market position
In which of the following situations is employing a "think local, act local"
multicountry strategy highly questionable?
when a company is striving to build a globally recognized brand name for one of its
products or services
Which of the following is not a potential benefit of collaborative strategies
involving alliances and/or joint ventures with foreign partners?
Greater ability to employ offensive strategies and build well-protected profit sanctuaries.
A firm pursuing a "think global, act local" approach to strategy-making
pursues a competitive strategy that is essentially the same in all country markets
where it operates but it may nonetheless give local managers room to make minor
variations where necessary to better satisfy local buyers and to better match local
market conditions.
Competing in one or more countries or regions of the world causes strategy-
making to be more complex partly because of
Sizable cross-country differences in wage rates, worker productivity, inflation rates,
energy supplies and costs, tax rates, and other factors that impact a company's costs
and profit prospects
According to integrative social contracts theory, the ethical standards a company
should try to uphold
are governed both by (1) a limited number of universal ethical principles that are widely
recognized as putting legitimate ethical boundaries on actions and behavior in all
situations and (2) the circumstances of local cultures, traditions, and shared values that
The advantages of a centralized organization structure include
Reduced potential for conflicting actions and decisions on the part of lower-level
personnel, facilitation of strong top management leadership in crisis situations, and tight
control by the manager in charge-it is easy to know who is accountable when things do
not go well
One of the disadvantages of a decentralized structure featuring employee
empowerment is
A loss of "full control" on the part of top management (because higher-level managers
may be unaware of actions taken by empowered employees under their supervision).
Which of the following is not among the principal managerial components of the
strategy execution process?
Selecting energetic and motivated employees, training employees properly, and doing
an effective job of empowering employees
Which of the following is not a shortcoming or disadvantage of a decentralized
organizational structure?
Raises employee anxiety levels, thus discouraging many company personnel from
being deeply involved in the business and lowering their motivation levels
Management's handling of the process of implementing and executing a
company's strategy can be considered successful
If a company is meeting or beating its performance targets and has attained real
proficiency in performing strategy critical value chain activities
Which one of the following is not part of organizing a company's work effort in
ways that promote successful strategy execution? (A summary of the key
components of organizing the work effort appears in Figure 10.3.)
How to organize the performance of value chain activities in ways that produce greater
product differentiation versus the products of rivals
Which of the following is the best example of related diversification?
A producer of golf clubs and golf bags acquiring a maker of golf shoes and golf apparel
Which one of the following is not among the outcomes that corporate executives
should pursue in order for a strategy of unrelated diversification to produce
companywide financial results above and beyond what the businesses could
generate operating as stand-alone entities?
Focus on acquiring businesses that offer the best opportunities for achieving rapid
market growth and that have a big competitive advantage over rivals (thereby satisfying
the industry attractiveness and competitive strength tests).
A business unit's location in the nine-cell industry attractiveness-competitive
strength matrix
Signals whether each business' priority for receiving new investment capital and other
resources from its corporate parent should be high, medium, or low
Which of the following is not one of the appeals of related diversification?
It is particularly well-suited for minimizing business risk and capturing valuable industry
attractiveness fits.
Economies of scope
are cost reductions that flow from operating in multiple related businesses.
, A "cash hog" type of business
Generates cash flows that are too small to fully fund its operations and growth—such
businesses require periodic cash infusions by the corporate parent to provide additional
working capital and finance new capital investment
Which of the following are negatives or disadvantages of pursuing unrelated
diversification
strategies?
Demanding managerial requirements
Which one of the following is not among the strategic options for improving a
diversified company's overall performance?
Implementing a common competitive strategy for all of the company's business units
and striving for the same competitive advantage companywide
The advantages of using a licensing strategy to participate in foreign markets
include
being able to generate revenues and income from a company's technical know-how or a
unique patented product without committing significant additional resources to country
markets that are unfamiliar, politically volatile, economically unstable, or otherwise risky
Global competition exists when
competitive conditions across national markets are linked strongly enough to form a true
international or world market and when leading competitors compete head to head in
many different countries
A profit sanctuary refers to a country market (or geographic region) where a
company
derives substantial profits because of its strong or protected market position
In which of the following situations is employing a "think local, act local"
multicountry strategy highly questionable?
when a company is striving to build a globally recognized brand name for one of its
products or services
Which of the following is not a potential benefit of collaborative strategies
involving alliances and/or joint ventures with foreign partners?
Greater ability to employ offensive strategies and build well-protected profit sanctuaries.
A firm pursuing a "think global, act local" approach to strategy-making
pursues a competitive strategy that is essentially the same in all country markets
where it operates but it may nonetheless give local managers room to make minor
variations where necessary to better satisfy local buyers and to better match local
market conditions.
Competing in one or more countries or regions of the world causes strategy-
making to be more complex partly because of
Sizable cross-country differences in wage rates, worker productivity, inflation rates,
energy supplies and costs, tax rates, and other factors that impact a company's costs
and profit prospects
According to integrative social contracts theory, the ethical standards a company
should try to uphold
are governed both by (1) a limited number of universal ethical principles that are widely
recognized as putting legitimate ethical boundaries on actions and behavior in all
situations and (2) the circumstances of local cultures, traditions, and shared values that
