SEVI 3013 UARK EXAM SUMMER
QUESTIONS AND ANSWERS
______ is when firms in a turnaround situation seek to eliminate costs and improve
productivity through small gains that accumulate over a period of time. - Answer-
Piecemeal productivity improvements
A common pitfall of using a cost-leadership strategy is that Blank______. - Answer-
value-creating activities are easily imitated
Companies that use a Blank______ positioning strategy offer products with fewer
product attributes and lower prices, in contrast to the industry tendency to continuously
augment products as part of the product life cycle. - Answer-reverse
According to Michael Porter, there is a tremendous allure to ________. It is the big play,
the dramatic gesture. With one stroke of the pen, you can add billions to size, get a
front-page story, and create excitement in markets. - Answer-mergers and acquisitions
An acquisition that results in ________ commonly indicates that expectations were not
met. - Answer-divestiture
Ford and VW signed a memorandum of understanding to work together to develop
autonomous vehicles. Which of the following best explains the potential advantage for
them? - Answer-developing and diffusing new technologies
________ diversification is when a firm enters a different business that has little
horizontal interaction with other businesses of a firm. - Answer-Unrelated
3M leverages its competencies in adhesives technologies to many industries, including
automotive, construction, and telecommunications. This is an example of creating value
by using - Answer-related diversification to acquire economies of scope by leveraging
core competencies.
When management uses common production facilities or purchasing procedures to
distribute different but related products, they are - Answer-sharing activities.
Which of the following is not a reason for merger and acquisition failures? - Answer-The
acquisition leads to value creation.
________ is when the corporate office helps subsidiaries make wise choices in their
own acquisitions, divestures, and new ventures, thereby creating value within business
units. - Answer-Parenting
, Casio, a giant electronic products producer, synthesizes its abilities in miniaturization,
microprocessor design, material science, and ultrathin precision castings to produce
digital watches. It uses the same skills to produce card calculators, digital cameras, and
other small electronics. These collective skills are - Answer-core competencies.
Which of the following is not an example of how organizational culture exerts behavioral
control? - Answer-Culture sets explicit boundaries.
Behavioral controls are aspects of strategic change that involve finding the appropriate
________ and ________ among the culture, rewards, and boundaries of the firm. -
Answer-balance; alignment
Top managers at ABC Company meet every Friday to review daily operational reports
and year to date data. This is an example of - Answer-informational control.
Which of the following is not one of the characteristics of a contemporary control
system? - Answer-It circumvents the need for face-to-face meetings among superiors,
subordinates, and peers.
Agency theory is concerned with resolving two problems that can occur in agency
relationships. Which of the following is not one of those problems? - Answer-
Stockholders and management align with external stakeholders.
In order to minimize the temptation for managers to act in their own self-interest,
governance mechanisms exist for implementation consideration. Which of the following
is not a primary means for monitoring managerial behavior? - Answer-a board of
directors that acts in the best interests of shareholders to create short-term value
The traditional approach to strategic control is sequential. Which of the following is not
one of the steps in the sequence? - Answer-Action plans are submitted by lower level
managers.
In addition to an annual base salary of 1.3 million USD and 10.4 million USD in stock
compensation and bonuses, Heather Bresch, CEO of Mylan Pharmaceuticals, also
received 6.4 million USD in other compensation in 2015. This included 19,200 USD for
the use of a company-provided automobile and 310,000 USD in personal use of the
company jet. Which of the following statements is true regarding this situation? -
Answer-Top-level managers may pursue their own interests over that of the company.
Which of the following is not one of the characteristics of reward and incentive systems?
- Answer-They represent a poor means of influencing the culture of an organization
Informational control systems are concerned with which of the following questions? -
Answer-Is the organization doing the right things?
QUESTIONS AND ANSWERS
______ is when firms in a turnaround situation seek to eliminate costs and improve
productivity through small gains that accumulate over a period of time. - Answer-
Piecemeal productivity improvements
A common pitfall of using a cost-leadership strategy is that Blank______. - Answer-
value-creating activities are easily imitated
Companies that use a Blank______ positioning strategy offer products with fewer
product attributes and lower prices, in contrast to the industry tendency to continuously
augment products as part of the product life cycle. - Answer-reverse
According to Michael Porter, there is a tremendous allure to ________. It is the big play,
the dramatic gesture. With one stroke of the pen, you can add billions to size, get a
front-page story, and create excitement in markets. - Answer-mergers and acquisitions
An acquisition that results in ________ commonly indicates that expectations were not
met. - Answer-divestiture
Ford and VW signed a memorandum of understanding to work together to develop
autonomous vehicles. Which of the following best explains the potential advantage for
them? - Answer-developing and diffusing new technologies
________ diversification is when a firm enters a different business that has little
horizontal interaction with other businesses of a firm. - Answer-Unrelated
3M leverages its competencies in adhesives technologies to many industries, including
automotive, construction, and telecommunications. This is an example of creating value
by using - Answer-related diversification to acquire economies of scope by leveraging
core competencies.
When management uses common production facilities or purchasing procedures to
distribute different but related products, they are - Answer-sharing activities.
Which of the following is not a reason for merger and acquisition failures? - Answer-The
acquisition leads to value creation.
________ is when the corporate office helps subsidiaries make wise choices in their
own acquisitions, divestures, and new ventures, thereby creating value within business
units. - Answer-Parenting
, Casio, a giant electronic products producer, synthesizes its abilities in miniaturization,
microprocessor design, material science, and ultrathin precision castings to produce
digital watches. It uses the same skills to produce card calculators, digital cameras, and
other small electronics. These collective skills are - Answer-core competencies.
Which of the following is not an example of how organizational culture exerts behavioral
control? - Answer-Culture sets explicit boundaries.
Behavioral controls are aspects of strategic change that involve finding the appropriate
________ and ________ among the culture, rewards, and boundaries of the firm. -
Answer-balance; alignment
Top managers at ABC Company meet every Friday to review daily operational reports
and year to date data. This is an example of - Answer-informational control.
Which of the following is not one of the characteristics of a contemporary control
system? - Answer-It circumvents the need for face-to-face meetings among superiors,
subordinates, and peers.
Agency theory is concerned with resolving two problems that can occur in agency
relationships. Which of the following is not one of those problems? - Answer-
Stockholders and management align with external stakeholders.
In order to minimize the temptation for managers to act in their own self-interest,
governance mechanisms exist for implementation consideration. Which of the following
is not a primary means for monitoring managerial behavior? - Answer-a board of
directors that acts in the best interests of shareholders to create short-term value
The traditional approach to strategic control is sequential. Which of the following is not
one of the steps in the sequence? - Answer-Action plans are submitted by lower level
managers.
In addition to an annual base salary of 1.3 million USD and 10.4 million USD in stock
compensation and bonuses, Heather Bresch, CEO of Mylan Pharmaceuticals, also
received 6.4 million USD in other compensation in 2015. This included 19,200 USD for
the use of a company-provided automobile and 310,000 USD in personal use of the
company jet. Which of the following statements is true regarding this situation? -
Answer-Top-level managers may pursue their own interests over that of the company.
Which of the following is not one of the characteristics of reward and incentive systems?
- Answer-They represent a poor means of influencing the culture of an organization
Informational control systems are concerned with which of the following questions? -
Answer-Is the organization doing the right things?
