_______ happens when CEOs do not work to maximize shareholders' interest according to their employment contract while _______ happens when CEOs misrepresent themselves in order to get hired.
A. Moral hazard, adverse selection
B. Adverse selection, moral hazard
C. Agency, principle
D. None of t...
MGT 499 - Strategic Management(Completely solved)
_______ happens when CEOs do not work to maximize shareholders' interest according to their
employment contract while _______ happens when CEOs misrepresent themselves in order to get hired.
A. Moral hazard, adverse selection
B. Adverse selection, moral hazard
C. Agency, principle
D. None of the above correct answers A. Moral hazard, adverse selection
______leads CEOs to overestimate the probability of success but underestimate the probability of failure
while ________occurs when CEOs look for evidence to reinforce existing beliefs.
A. Overconfidence bias, confirmation bias
B. Self-serving attribution bias, anchoring bias
C. Loss aversion bias, group polarization bias
D. Reference bias, confirmation bias correct answers A. Overconfidence bias, confirmation bias
Which of the following DOES NOT constitute a benefit of a clearly articulated strategy________?
A. enable external audience to understand a firm.
B. motivate employees.
C. coordinate internal actions and efforts.
D. help reduce the threat from suppliers. correct answers help reduce the threat from suppliers.
In its recent strategic planning, Chang Yu, a winery in Shang Dong province of China, decided to divest
all traditional wine products and reorient its business to produce a new type of wine, ice wine, which is
made of half-frozen grape. The company positioned its ice wine as a high-end product. Its CEO believed
that this reorientation can help the company achieve a high profit margin over a long term. Which of the
following assumptions is not essential for Chang Yu's strategy to succeed?
A. Other wineries cannot easily copy Chang Yu's technology of producing ice wine.
B. There exists an economy of scale in producing ice wine.
C. There are enough potential consumers who are willing to buy its expensive ice wine.
D. Ice wine tastes so differently from traditional wine that consumers will not consider traditional wine as
a close substitute for ice wine. correct answers B. There exists an economy of scale in producing ice wine.
, In technology development, _________ is characterized by long periods of incremental change and short
periods of radical change.
A. disruptive change
B. social complexity
C. path dependence
D. punctuated equilibrium correct answers D. punctuated equilibrium
That the invention of digital camera drove the film producer, Kodak, out of business reflects _________.
A. value creation
B. incremental change
C. competence destruction
D. economies of scale. correct answers C. competence destruction
The threat of expected retaliation by incumbent firms is likely to be high for potential new entries when
_______.
A. incumbent firms have excessive resources
B. incumbent firms' resources are rare.
C. the industry is growing
D. incumbent firms did not retaliate new entries before. correct answers A. incumbent firms have
excessive resources
The attractiveness of a substitute can best be measured by _______________.
A. The quantity of a substitute product
B. The quality of a substitute product
C. The performance of a substitute product relative to its price
D. The technology to produce a substitute product correct answers C. The performance of a substitute
product relative to its price
Buyers tend NOT to be tough negotiators when ___________.
A. a firm has only one buyer, or a small number of buyers.
B. the products or services sold to buyers are standard and not differentiated.
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