BSG Exam 2 (Answered) Complete Solution Verified 2022

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