Copiar e Editar

Chapter 6 - Vertical Integration

Descrição

Quiz sobre Chapter 6 - Vertical Integration , criado por Strategy IO em 14-11-2016.
Strategy IO
Quiz por Strategy IO, atualizado more than 1 year ago
Strategy IO
Criado por Strategy IO aproximadamente 8 anos atrás
665
1
0

Resumo de Recurso

Questão 1

Questão
The number of steps in a firm's value chain that it accomplishes within its boundaries describes the firm's level of
Responda
  • product differentiation
  • diversification.
  • vertical integration.
  • competitive dynamics.

Questão 2

Questão
Vertical integration is a type of
Responda
  • business strategy.
  • generic strategy.
  • differentiation strategy.
  • corporate strategy.

Questão 3

Questão
When Apple, Inc. opened retail stores to sell its computers and iPods, this was an example of
Responda
  • forward vertical integration.
  • backward vertical integration.
  • forward horizontal integration.
  • backward horizontal integration.

Questão 4

Questão
If Dell computers were to open its own factory to manufacture the LCD televisions it sells at its online store, this would be an example of
Responda
  • forward vertical integration.
  • product differentiation.
  • forward horizontal integration.
  • backward vertical integration.

Questão 5

Questão
A firm's ________ measures the percentage of a firm's sales that is generated by activities done within the boundaries of a firm.
Responda
  • value added as a percentage of sales
  • simple product diversification
  • competitive advantage
  • competitive dynamic

Questão 6

Questão
Which of the following is not used to determine a firm's level of vertical integration using the value added as a percentage of sales approach?
Responda
  • value added
  • net income
  • sales
  • gross margin

Questão 7

Questão
A firm with a ________ ratio between value added and sales has brought ________ of the value-creating activities associated with its business inside its boundaries, consistent with a high level of vertical integration.
Responda
  • low; many
  • high; many
  • medium; many
  • medium; few

Questão 8

Questão
In 1937, which Nobel Prize-winning economist first articulated the question of vertical integration, i.e., which stages of the value chain should be included within a firm's boundaries and why?
Responda
  • Ronald Coase
  • Adam Smith
  • David Ricardo
  • Milton Freidman

Questão 9

Questão
________ exists when a firm is unfairly exploited in an exchange.
Responda
  • Competitive advantage
  • Business level strategy
  • Opportunism
  • Corporate level strategy

Questão 10

Questão
A(n) ________ is any investment in an exchange that has significantly more value in the current exchange than it does in alternative exchanges.
Responda
  • opportunity-specific investment
  • transaction-specific investment
  • competition-specific investment
  • opportunistic investment

Questão 11

Questão
According to ________ of when vertical integration creates value, vertical integration is valuable when it reduces threats from a firm's suppliers or buyers due to any transaction-specific investments a firm has made.
Responda
  • firm capability explanations
  • opportunity-based explanations
  • flexibility-based explanations
  • opportunism-based explanations

Questão 12

Questão
The essence of the ________ to vertical integration is that if a firm possesses valuable, rare, and costly-to-imitate resources in a business activity, it should vertically integrate into that activity otherwise it should not vertically integrate into that activity.
Responda
  • flexibility-based explanation
  • opportunism-based explanation
  • firm capability explanation
  • opportunity-based explanation

Questão 13

Questão
To the extent that other firms may have competitive advantages in business activities that a firm is considering to enter through vertical integration, vertically integrating into these activities could put the firm at a
Responda
  • competitive advantage.
  • temporary dynamic disadvantage.
  • sustainable competitive advantage.
  • competitive disadvantage.

Questão 14

Questão
________ refers to how costly it is for a firm to alter its strategic and organizational decisions.
Responda
  • Flexibility
  • Dynamic capability
  • Opportunism
  • Uncertainty

Questão 15

Questão
Research suggests that, in general, vertically integrating is ________ than not vertically integrating.
Responda
  • significantly more flexible
  • somewhat more flexible
  • comparatively flexible
  • less flexible

Questão 16

Questão
A decision-making setting is ________ when the future of an exchange cannot be known when investments in that exchange are being made.
Responda
  • uncertain
  • opportunistic
  • flexible
  • dynamic

Questão 17

Questão
A(n) ________ approach to vertical integration suggests that rather than vertically integrating into a business activity whose value is highly uncertain firms should not vertically integrate and instead should form a strategic alliance to manage this exchange.
Responda
  • alliance-based
  • flexibility-based
  • firm capabilities-based
  • opportunism-based

Questão 18

Questão
Which of the explanations of vertical integration is the oldest and has received the greatest empirical support?
Responda
  • opportunism-based
  • flexibility-based
  • firm capabilities-based
  • alliance-based

Questão 19

Questão
If a firm decided to maintain relationships with several different call center management companies, each of which have adopted different technological solutions to the problem of how to use call center employees to assist customers who are using very complex products, to reduce the uncertainty of whether the people staffing the phone can help the firm's customers, this would be consistent with which explanation of vertical integration?
Responda
  • opportunism-based
  • flexibility-based
  • firm capabilities-based
  • alliance-based

Questão 20

Questão
Some observers predict that by ________ an additional 3.3 million jobs in the United States will be outsourced, many to operations overseas.
Responda
  • 2014
  • 2015
  • 2016
  • 2017

Questão 21

Questão
If a computer company decided to open its own call centers to provide technical support to its corporate customers because the employees in these call centers need a significant level of in-depth training that was highly specialized to the computer company's products, this would be consistent with which explanation of vertical integration?
Responda
  • opportunism-based
  • flexibility-based
  • firm capabilities-based
  • alliance-based

Questão 22

Questão
A firm is likely to be among the first in its industry to vertically disintegrate an exchange when
Responda
  • the firm concludes that the level of specific investment required to manage an economic exchange is high.
  • the firm believes that the exchange is costly to imitate.
  • the level of uncertainty about the value of an exchange has increased.
  • the firm believes that the exchange is rare.

Questão 23

Questão
Which of the following statements regarding direct duplication and substitutes for vertical integration is accurate?
Responda
  • A firm's valuable and rare vertical integration choices may be subject to direct duplication and substitutes.
  • A firm's valuable and rare vertical integration choices are subject to neither direct duplication nor substitutes.
  • A firm's valuable and rare vertical integration choices may be subject to direct duplication but not to substitutes.
  • A firm's valuable and rare vertical integration choices may be subject to substitutes but not to direct duplication.

Questão 24

Questão
The major substitute for vertical integration is
Responda
  • vertical disintegration.
  • strategic alliances.
  • a product-differentiation strategy.
  • a low-cost strategy.

Questão 25

Questão
Which organizational structure is used to implement a vertical integration strategy?
Responda
  • matrix
  • functional
  • multidivisional
  • product-divisional

Questão 26

Questão
From a CEO's perspective, coordinating functional specialists to implement a vertical integration strategy almost always involves
Responda
  • conflict resolution.
  • competitive positioning.
  • product differentiation.
  • corporate expansion.

Questão 27

Questão
If Brenda Thompson, Tom Mix's supervisor, wanted to use a budgeting process to help evaluate Tom's performance but wanted to ensure that using a budget did not encourage Tom to focus on short-term behaviors at the expense of long-term results, she should
Responda
  • develop the budget herself using realistic goals based on the economic reality facing Tom's function and use both quantitative and qualitative evaluations of the performance of Tom's function and then give the budget to Tom to follow.
  • work with Tom in an open and participative process to develop the budget based on the most optimistic scenario possible and use both quantitative and qualitative evaluations of the performance of Tom's function.
  • develop the budget herself based on the most pessimistic scenario possible and use both quantitative and qualitative evaluations of the performance of Tom's function and then give the budget to Tom to follow.
  • work with Tom in an open and participative process to develop the budget based on the economic reality facing Tom's function and use both quantitative and qualitative evaluations of the performance of Tom's function.

Questão 28

Questão
Evaluating a functional manager's performance relative to budgets can be an effective control when
Responda
  • the process used in developing budgets is open and participative.
  • the process reflects the economic best-case scenario developed by the functional manager.
  • the process reflects the economic worst-case scenario developed by the functional manager.
  • the process relies solely on quantitative criteria to evaluate the functional manager's performance.

Questão 29

Questão
Which committee in a U-form organization meets monthly and usually consists of the CEO and each of the heads of the functional areas included in a firm?
Responda
  • executive committee
  • functional committee
  • operations committee
  • managerial committee

Questão 30

Questão
Which committee in a U-form organization meets weekly and reviews the performance of the firm on a weekly basis and typically consists of a CEO and two or three functional senior managers?
Responda
  • top management team
  • executive committee
  • operations committee
  • functional committee

Questão 31

Questão
Investments made by employees that have more value in a particular company than in alternative companies are known as
Responda
  • firm-specific investments.
  • individual-specific investments.
  • group-specific investments.
  • opportunistic investments.

Questão 32

Questão
According to the opportunism-based explanations of vertical integration, which of the following would be the most appropriate type of compensation to support strategy implementation?
Responda
  • cash bonuses for corporate performance
  • cash bonuses for group performance
  • stock options for individual performance
  • stock grants for individual performance

Questão 33

Questão
According to the capabilities-based explanations of vertical integration, which of the following would be the most appropriate type of compensation to support strategy implementation?
Responda
  • salary
  • cash bonuses for corporate performance
  • cash bonuses for individual performance
  • stock grants for individual performance

Questão 34

Questão
According to the flexibility-based explanations of vertical integration, which of the following would be the most appropriate type of compensation to support strategy implementation?
Responda
  • stock options for individual performance
  • stock grants for individual performance
  • stock grants for corporate performance
  • cash bonuses for individual performance

Questão 35

Questão
________ are payments to employees in a firm's stock.
Responda
  • Stock grants
  • Cash grants
  • Flexibility grants
  • Option grants

Questão 36

Questão
________ are when employees are given the right, but not the obligation, to purchase stock at predetermined prices.
Responda
  • Flexibility grants
  • Stock grants
  • Grant options
  • Stock options

Questão 37

Questão
The ________ explanations call for compensation that focuses on individual employees, such as cash bonuses for individual performance.
Responda
  • capabilities-based
  • strategically-based
  • flexibility-based
  • opportunism-based

Questão 38

Questão
Compensation that focuses on groups of employees such as cash bonuses and stock grants are best suited for ________ explanations of vertical integration.
Responda
  • flexibility-based
  • capabilities-based
  • strategically-based
  • opportunism-based

Questão 39

Questão
The ________ logic suggests that compensation that has a fixed and known downside risk and significant upside potential is important for firms implementing vertical integration strategies.
Responda
  • opportunism
  • strategic
  • capabilities
  • flexibility

Questão 40

Questão
Firm-specific investments are a type of ________ investments.
Responda
  • operational
  • contingent
  • transaction-specific
  • horizontal

Questão 41

Questão
If Digipics were to begin manufacturing lenses for the cameras they assembled, this would be an example of
Responda
  • backward vertical integration.
  • a strategic alliance.
  • forward vertical integration.
  • opportunism.

Questão 42

Questão
If Digipics were to begin selling the cameras it assembled directly to customers through a website operated by the company, this would be an example of
Responda
  • backward vertical integration.
  • a strategic alliance.
  • forward vertical integration.
  • opportunism.

Questão 43

Questão
If one of the suppliers that Digipics purchases its components from purposefully delivered a batch of its product that was substandard but did not inform Digipics of this, this would be an example of
Responda
  • flexibility.
  • opportunism.
  • uncertainty
  • vertical integration.

Questão 44

Questão
If Digipics were to agree to spend a significant amount of money to establish a new assembly line for a large client, PicPro, that has unique needs that would make this assembly line largely useless for any other customer, the funds Digipics spent in establishing this line would be an example of
Responda
  • forward vertical integration.
  • backward vertical integration.
  • a transaction-specific investment.
  • opportunism.

Questão 45

Questão
The fact that it would be very costly for Digipics to alter its operations if the large customer referred to in the previous question decided to stop doing business with Digipics suggests that Digipics has ________ in this situation.
Responda
  • low flexibility
  • low opportunism
  • high flexibility
  • high opportunism

Questão 46

Questão
TerraLoc's decision to manufacture the battery in-house is most consistent with which explanation of vertical integration?
Responda
  • Flexibility-based explanations
  • Firm capability-based explanations
  • Alliance-based explanations
  • Opportunism-based explanations

Questão 47

Questão
TerraLoc's development of the new battery technology is likely to
Responda
  • reduce the rarity of TerraLoc's vertical integration strategy since competitors can purchase batteries from other sources.
  • increase the rarity of TerraLoc's vertical integration strategy since TerraLoc has reduced uncertainties related to increased battery life in its products.
  • increase the imitability of TerraLoc's vertical integration strategy since competitors can purchase traditional batteries from other sources.
  • decrease the imitability of TerraLoc's vertical integration strategy since it increases competitors' flexibility.

Questão 48

Questão
TerraLoc is most likely to use the ________ organizational structure.
Responda
  • matrix
  • product-based multidivisional
  • functional
  • geography-based multidivisional

Questão 49

Questão
If TerraLoc were to use a U-form organizational structure and the CEO decided to use budgets as a management control but wanted to make sure that the managers did not become too focused on the short term, the CEO should do all of the following except
Responda
  • use an open process in developing budgets.
  • determine budgets for her managers and allow them to focus only on meeting the budgets.
  • use both quantitative and qualitative evaluations of managers' performance.
  • make sure that the process used in developing budgets reflects the economic reality facing the firm's managers.

Questão 50

Questão
If TerraLoc wanted to expand into selling its GPS units through company-owned retail stores, this would be an example of ________
Responda
  • forward vertical integration.
  • backward vertical integration.
  • opportunism.
  • a joint venture.

Quer criar seus próprios Quizzes gratuitos com a GoConqr? Saiba mais.

Semelhante

Biologia 10º ano
indialovesea
Noções Gerais de Direito Administrativo
Alynne Saraiva
Biologia e Geologia - Biologia 10º ano, parte II - Ensino Secundário Português
Heres Oliveira
Como criar um Mapa Mental
Alessandra S.
Expressões em inglês #7
Eduardo .
Simulado História
Marina Faria
Roteiro de Estudo - Matemática
Luiz Fernando
História da Arte
GoConqr suporte .
1_1_Simulado SAEP - Técnico em Edificações
Carlos Santos
Metodologias Ativas
Jussara Seidel
Lei 8112/90 (Parte I)
Maria José
Explore a Biblioteca