Business Strategies Test 3 – Flashcards
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The advantages of interorganizational relationships include all of the following except _____.
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clarity of decision making
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Relative to mergers and acquisitions or internal venturing, joint ventures are considered to be
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less risky
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The difficulties with partnerships include all of the following except _____
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firms gain access to resources previously prohibited
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When hotel developers enter China, the knowledge they need most concerns _____
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government issues such as understanding government behavior
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The power of stakeholders is increased by all of the following except _____
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they hold little influence that can influence the environmental uncertainty facing the firm
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Buffering refers to _____
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techniques that stabilize and predict environmental influences and soften potential jolts
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Methods that can be used in buffering the organization include all of the following except_____
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partnering with key stakeholders
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In the text Wal-Mart is an example of a firm that _____
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uses political power to influence its stakeholders
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Oligopolies are industries that are _____
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dominated by a few major rivals
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Collusion among firms in different parts of the world _____
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often is not illegal
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Alliances between units of government and business _____
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are flourishing in the United States
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The response to special interest groups that represent smaller social groups most likely will be _____
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buffering
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One of the best ways to reduce unfavorable regulation in an industry is to _____
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operate in a manner consistent with the values of society
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Financial intermediaries include all of the following except _____
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stock regulators
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External stakeholders for firms will _____
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vary in importance firm to firm
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The means to improve the likelihood of success of a partnership include all of the following except _____
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ensure that meetings between the two parties are formal and at a senior level to avoid interference in the venture
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The companies that are the most successful in implementing their strategies _____
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create a strategic vision throughout the company with the full involvement of the employees
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A functional strategy audit _____
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examines all functional areas to determine their internal consistency, consistency across functional areas, and the extent to which they support each other
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Industry labor unions like the Hotel Employees and Restaurant Employees International Union (HERE) often work under neutrality agreements. These agreements _____
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mean the hotel does not have the right to contest union organization
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The individual who first identified the importance of the structure-strategy relationship was _____
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Alfred Chandler
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Decentralized decision making is typically associated with _____
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innovation and entrepreneurial behavior
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The dimensions of organizational structure to consider when determining the structure of an organization should include all of the following except _____
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friendship among the leadership of the various units
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Typically startup businesses will pursue _____
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owner/manager structures
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The simplest management structure is _____
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owner/manager structures
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Functional structures are concerned with the _____
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inputs or activities, such as marketing, human resources, and food and beverage that are required to produce services
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A functional structure is appropriate when _____
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there is a limited service offered to a particular market segment and when the needs of the external stakeholders are relatively stable
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Matrix organizations are typically associated with ____
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medium sized firms with multiple products
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Elizabeth Moore is the CEO of a medium-sized manufacturer of fashionable women's clothing. Elizabeth insists on making all decisions as to the styles that are manufactured, the type of material that will be used, the suppliers from whom the company will purchase yard goods, thread, and buttons, and the shippers that the company will use. Which of the following can be used in describing this company?
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Centralization
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The problems with geographic and customer-based business-level structures include all of the following except _____
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dual authority causing frustration and confusion
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The problems with a matrix structure include all of the following except _____
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restricting the view of organizational goals
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A focus on economies of scale within departments is associated with _____
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functional structures
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The lateral organization consists of ______
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across department communication mechanisms
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Accenture and other consulting firms were early to develop what type of lateral organizational arrangement?
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Communities of practice
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One of the difficulties in implementing a multidivisional corporate level structure is that _____
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it is often difficult to decide which activities will be performed at the corporate level and which ones will be held within the division
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Strategic business unit structures occur when _____
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divisions are combined into groups based on common elements they each possess
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A corporate matrix structure is particularly appropriate for _____
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related diversified firms and global strategies
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A transnational organization, when compared to a matrix form of organization, _____
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includes more dimensions that must be considered
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The most unstructured of the various lateral coordinating mechanisms is_____
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direct contact
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Feedforward controls rely on _____
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information that allows the firm to anticipate changes in the external and internal environments of the firm
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A feedback-control system is established anytime _____
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goals or objectives are established and then measured against actual results
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One of the great challenges associated with comprehensive feedback control is _____
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determining how to measure results
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In an organization such as Hilton _____
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numerous control systems at multiple levels are necessary
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All of the following are phases in crisis management except _____
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top management team meeting
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Crisis prone organizations have all of the following characteristics except _____
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they consider human or social factors in the cause or prevention of crises
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A divisional structure by geographic area is most appropriate when _______
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an organization has similar facilities located in dispersed areas
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A book publishing company that organizes activities around customer groups, such as colleges, secondary schools, and private schools, is an example of which type of structure?
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Divisional
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Entrepreneurship involves all but ONE of the following
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Competitive stability
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A business plan _____
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contains the details of how a new venture will be carried out
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The most difficult problem facing a potential entrepreneur is _____
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obtaining startup capital
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Business angels are _____
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high net worth individuals who invest in new startup businesses
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A letter of an intent drafted in an Initial Public Offering _____
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outlines the financial relationship between the company and the underwriter and other conditions of the offering
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The most difficult time for an entrepreneurial startup is the _____
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early stages
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The most difficult problems facing entrepreneurial startups are _____
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financing and financial management problems
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The term associated with the legal form of a business where partners contribute money and share in the rewards of the business while having limited legal liability is a _____
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limited partnership
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The creation of new business ventures within existing corporations is often referred to as _____
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intrapreneurship
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All but one of the following are advantages of restaurants as an investment target
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Venture capitalists like single-unit restaurant ventures
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The Uniform System of Accounts for the Lodging Industry (USALI) ____
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permit comparison with industry standards
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According to examples in the text, theme restaurants like Planet Hollywood _____
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suffer from high wages and stagnant menus
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Franchising is when _____
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two independent companies form a contractual agreement giving one the right to operate a business.
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Is franchising less risky than going into business on one's own?
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yes, if the business is established with many units
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What is the most successful commercial sector on the Internet?
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travel
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Electronic tourism products and services have evolved from simple systems to _____
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integrated management systems
