FINALS

Question 1

According to Mintzberg and Quinn, a __________ is the pattern or plan that integrates a nation’s or organization’s major goals, policies and action sequences into a chosen whole

Answer 1

Strategy

Question 2

__________________________ is the way or plan of attaining technological goals and technological changes. These are formulated at the national level and at the enterprise level.

Answer 2

Technology Strategy

Question 3

Externalization-Oriented Strategy. This strategy aims at seeking technological development with an objective to tap external market.

Answer 3

Technology Strategy at National level

Question 4

Under this strategy, there is a restricted role for FDI. This strategy seeks to foster/encourage indigenous technology development i.e., developing domestic technology capabilities in general or in selected strategic industries.

Answer 4

Technology Strategy at National level

some examples of this type of strategy are:
1. minority joint ventures (with minor share to foreign collaborator)
2. technological assistance to domestic firms
3. encouraging import of capital goods

Question 5

According to Bentz, Martino & Mintzberg, this means “a formal set of enterprise intentions that allocates available resources and sets priorities based on clearly stated technological and enterprise objectives and a perceived environment in which the process is to be embedded.

Answer 5

Technology Strategy at Enterprise level

Question 6

re: Factors that influence enterprise’s technology strategy

_________________ : technological leadership can be sustained only if competitors cannot copy it

Answer 6

Sustainability of technological lead

Question 7

re: Factors that influence enterprise’s technology strategy

First mover advantages: enterprise gets many advantages like _____________

Answer 7

increased reputation, pre-empting competition, early profits, new sales, etc.

Question 8

re: Factors that influence enterprise’s technology strategy

First mover disadvantages: certain disadvantages and risks can adversely affect the first mover like _________

Answer 8

cost of regulatory approvals, cost of educating buyers, demand uncertainty, low cost imitation by competitors, risk of technological discontinuities of existing technology/products/processes

Question 9

Based on factor analysis, an enterprise may adopt any of the following technology strategies:

Answer 9

Technology leadership strategy
Technology followership strategy

Question 10

Under this strategy, a firm seeks to be the first to introduce technological changes/innovations

Answer 10

technology leadership strategy

Question 11

A conscious & active strategy, by which a firm chooses not to be first on innovations

Answer 11

Technology followership strategy

Question 12

The ______________________ framework directly influences technology generation in a nation

Answer 12

government technology policy

Question 13

___________ depends upon the technology strategy of the organization/enterprise

Answer 13

technology generation

Question 14

_______________________ sets the direction for technology development in the organization and to some extent also influences technological strategies of competitors as well

Answer 14

Technology strategy of the organization

Question 15

Technology develops through a process of _____________, ___________________, and _______________.

Answer 15

Creativity, invention, innovation

Question 16

re: S Curve of Technology Evolution

What are the 4 major stages in the evolution of performance characteristics?

Answer 16

1. Emergence
2. Rapid Improvement
3. Declining Improvement
4. Maturity

Question 17

___________________: when the new technology comes into existence, but shows little improvement in its performance characteristics

Answer 17

Emergence

Question 18

_______________: when performance characteristics improve at an accelerating pace

Answer 18

Rapid Improvement

Question 19

________________: when the pace of improvement declines

Answer 19

Declining Improvement

Question 20

______________: when further improvements become very difficult to achieve

Answer 20

Maturity

Question 21

Why does the S Churve Shape of Technological Evolution occur?

Answer 21

1. Learning process
2. Technology limits
3. Performance of the newer technology is lower than that of the older technology

Question 22

_______________ concerns the selection and management of a mix of businesses competing in several industries or product markets

Answer 22

Corporate-level strategy

• it is the way a company creates value through the configuration and coordination of multi-market activities

Question 23

Why vertically integrate?

Answer 23

1. Market Power (increase revenue)
   - entry barriers
   - down-stream price maintenance
   - up-stream power over price
2. Efficiency (lower cost)
   - specialized assets & the holdup problem
   - protecting product quality
   - improved scheduling

Question 24

What are the risks in undertaking cooperative agreements or strategic alliances?

Answer 24

1. Adverse selection
2. Moral hazard
3. Holdup

Question 25

_________ is when partners misrepresent skills, ability, and other resources

Answer 25

Adverse selection

Question 26

_________ is when partners provide lower quality skills and abilities than they had promised

Answer 26

Moral Hazard

Question 27

_________ is when partners exploit the transaction specific investment made by others in the alliance

Answer 27

Holdup

Question 28

What are motivations for Diversification?

Answer 28

1. Value-Enhancing Motives 2. Value-neutral Motivations 3. Devaluate Motivations

Question 29

What are value-enhancing motives

Answer 29

- increase market power (multi-point competition) - R&D and new product development - Developing new competencies (stretching) - transferring core competencies (leveraging)

Question 30

__________ is diversification motivated by poor economic performance in current businesses

Answer 30

motivations that are "value neutral"

Question 31

what are motivations that "devaluate"

Answer 31

- agency problem - managerial capitalism - maximize management compensation - sales growth maximization

Question 32

A _________ is a strategy through which two firms agree to integrate their operations on a relatively co-equal basis because they have resources and capabilities that together may create a stronger competitive advantage

Answer 32

Merger

Question 33

___________ is a strategy through which one firm buys a controlling or 100% interest in another firm with the intent of using a core competence more effectively by making the acquired firm a subsidiary business within its portfolio

Answer 33

Acquisition

Question 34

A ______________ is a type of acquisition strategy wherein the target firm did not solicit the acquiring firm's bid

Answer 34

takeover

Question 35

Attributes of Effective Acquisitions

Answer 35

Complementary Assets or Resources Friendly Acquisitions Careful Selection Process Maintain Financial Slack

Question 36

Scenarios where the bidder can do well

Answer 36

1. Luck 2. Asymmetric Information 3. Specific-synergies between the bidder and the target

Question 37

Pressures for Local Responsiveness

Answer 37

1. Differences in customer tastes and preferences 2. Differences in infrastructure and traditional practices 3. Differences in distribution channels 4. Host government demands

Question 38

Four Basic Strategies

Answer 38

1. Global Strategy 2. Transnational Strategy 3. International Strategy 4. Multidomestic Strategy

Question 39

_____________ is creating value by transferring competencies and products to foreign markets where indigenous competitors lack those competencies and products

Answer 39

International Strategy - makes sense if a company has a valuable competence that indigenous competitors in foreign markets lack and if it faces weak pressure for local responsiveness and cost reductions

Question 40

____________ is developing a business model that allows a company to achieve maximum local responsiveness

Answer 40

Multidomestic Strategy - makes sense when there are high pressures for local responsiveness and low pressures for cost reductions - companies may become too decentralized and lose the ability to transfer skills and products

Question 41

____________ is focusing on increasing profitability by reaping cost reductions that come from experience curve effects and location economies; pursuing a low-cost strategy on a global scale

Answer 41

Global Strategy - makes sense where there are strong pressures for cost reductions and demand for local responsiveness is minimal

Question 42

___________ is simultaneously seeking to lower costs, be locally responsive, and transfer competencies in a way consistent with global learning

Answer 42

Transnational Strategy

Question 43

Choice of Entry Mode

Answer 43

1. Exporting 2. Licensing 3. Franchising 4. Joint ventures 5. Wholly-owned subsidiaries 6. Choosing among Entry Modes

Question 44

__________________ is a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Answer 44

Corporate Social Responsibility - also called corporate citizenship

Question 45

Types of CSR

Answer 45

1. Philanthropic Responsibility 2. Ethical Responsibility 3. Legal Responsibility 4. Economic Responsibility

Question 46

_______________ is the system of rules, practices, and processes which a firm is directed and controlled. It essentially involves balancing the interests of a company's many stakeholders, such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community.

Answer 46

Corporate Governance

Question 47

___________ refers specifically to the set of rules, controls, policies, and resolutions put in place to direct corporate behavior. A board of directors is pivotal in _______________.

Answer 47

Governance

Question 48

Corporate Governance Models

Answer 48

1. Anglo-Ameriacan Model 2. Continental Model 3. Japanese Model