Entrepreneurship & Innovation
The transformation of an idea into a new product or process is referred to as _____?
invention
A ________ primarily details the goal-directed actions managers take in their quest for competitive advantage when competing in a single product market.
business-level strategy
What do we call the board members who are part of a company’s senior management team to provide the board with necessary information pertaining to the company’s internal workings and performance?
inside directors
Walmart sells live animals (snakes, eels, toads, etc.) for food preparation in China whereas IKEA sells kimchi refrigerators and metal chopsticks in South Korea. These examples illustrate the need for ________ which often requires the competing firm to tailor their products and services to meet the needs of the market in which they are competing.
local responsiveness
________ refers to the degree to which decision making is concentrated at the top of the organization
centralization
In which stage of the industry life cycle is a standard first established?
growth
Marriott is able to create greater economic value than its competitors due to their ability to take advantage of ________, which describe the savings that come from producing two (or more) outputs at less cost than producing each output individually, while utilizing the same amount of resources and technology.
economies of scope
Janet hires Vanessa to perform a critical task in her organization. However, Vanessa has misrepresented her knowledge, skills and abilities. Janet has no way of knowing whether Vanessa can indeed perform well. This is an example of
adverse selection
Teresa wants to take her firm internationally but is concerned with the ________, which refers to the possibility of higher costs of doing business in an unfamiliar cultural and economic environment.
liabilities of foreignness
Organizational culture can help a firm gain and sustain competitive advantage only if the culture makes a positive contribution to the firm’s economic value creation and follows what framework?
VRIO
The vast majority of innovations in an industry are ________, because they build on a firm’s existing knowledge base and reinforce the existing organizational structure and network relationships.
incremental
Bath & Chill is a spa that caters to a small percentage of highly health-conscious consumers. It offers state-of-the-art treatments in a luxurious setting. Since there are very few spas that offer the same unique services, customers are willing to pay a premium price for its products and services. Bath & Chill is following which generic strategy
focused differentiation
Which of the following characteristics of a public stock company deals with principals and agents?
a. limited liability of investors
b. transferability of investor ownership
c. separation of legal ownership and management control
d. legal personality
separation of legal ownership and management control
Macmillan Toys Inc. is located in the nation of Ruffino and is considering expanding into Rusalka. Both countries have similar consumer incomes and knowledge bases and share a common language. The transportation networks between the countries are strong. Even so, the two nations have a long-standing dispute concerning the control of an area of land along their common border. Which type of 'distance' would most likely prevent Macmillan Toys from expanding into Rusalka?
Administrative/Political
A firm that uses a structure that is organized along different business functions such as HR, R&D, Sales, and Marketing and also along different geographical areas such as different countries of the world is most likely using a ________ structure.
(global) matrix
Adaptive Biotechnologies Inc. builds diagnostic devices. It was the 1st company to develop a compact MRI scanner by reconfiguring the components of the MRI technology. This smaller, user-friendly version of the huge MRI scanner created demand from small hospitals, nursing homes, and private practice doctors who were earlier dependent on the machines in large hospitals. This describes what type of innovation?
architectural
Food Tiger Inc. is a large chain of hypermarkets. It has cost benefits due to its extensive operation. The company’s marketing and sales, logistics, and administrative costs get divided between a large number of product units stocked in its stores, making makes it difficult for smaller and supermarkets to compete against Food Tiger’s low prices. Food Tiger has a competitive advantage due to its what?
economies of scale
Amanda, the CEO of Weyland YutaniInc., reports to the board of directors appointed by the shareholders of Weyland Yutani. Based on shareholder suggestions, the board ties Amanda’s compensation to the performance of Weyland Yutani. The reason why the board ties Amanda’s compensation to firm performance is to overcome what?
principal-agent problem
Hooper’s Store, a luxury motorcycle company, sells the same motorcycles and offers the same superior services in both its home country and foreign markets. The market it operates in faces low pressures for both local responsiveness and cost-reductions. Which strategy within the integration-responsiveness framework should the firm pursue?
an international strategy
Delos Inc. is an apparel manufacturer. The management at Delos Inc. prefers moderate control over the operations of the different departments such as R&D, design, marketing, and sales. It allocates a budget to each function at the beginning of each quarter. This is an example of implementing what kind of control?
input control
As the inventor of hypertension medication, BioNTech SE Inc. was able to reap the benefits of economies of scale due to a large consumer demand. Even when competitors later developed similar drugs, regular users did not want to switch because they were concerned about possible side effects. Taken together this scenario represents what kind of benefits?
first mover advantages
We Cut Corners lawn service initially spent nine man-hours to assemble a lawnmower. But as the production doubled, the number of hours spent on assembling a mower reduced by 20 percent. This increase in productivity reduced the company’s cost per unit. What is this phenomenon referred to as?
learning-curve effect
A company scientist at a biotechnology company decides to work on his own research project, hoping to eventually start his own firm, rather than on the project he was assigned. However, the company’s stockholders are unaware of this situation. This is an example of a(n) ________ in the context of a principal–agent problem.
moral hazard
Hooper’s Corn Inc. produces an inexpensive microwave popcorn that is well tailored for the tastes of U.S. consumers. However, it has failed to satisfy the consumer preferences of its host country, Japan. On which integration-responsiveness framework factor has the firm performed poorly?
local responsiveness
Oceanic Airlines Inc. is headed by Denise Cordova, the CEO. Each functional department of the company has a president who reports to the CEO directly. Each department has various managers who manage teams. The managers report to the presidents, and the team leads report to the managers. Finally, the employees at the lowest level report to their team leads. It is rare for a lower-level employee to interact with the CEO of the company.
This scenario exemplifies what kind of organizational structure?
tall