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BUS 449: Globus Chapters 6,7,9,10,11 Notes
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BUS 449: Globus Chapters 6,7,9,10,11 Notes
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BUS 449: GLOBUS CHAPTERS 6,7,9,10,11 NOTESWhich of the following is not one of the strategic options that companies have for using their websites? - answer- Creating as much channel conflict as possible so as to quickly
learn whether all customer-related transactions should be conducted at the company's website or whether the company needs to continue selling through traditional wholesalers, distributors, and retailers.
Experience indicates that strategic alliances - answer- are perhaps the least expensive and best way for a weak competitor to turn a competitive disadvantage into a competitive advantage.
Mergers and acquisitions typically aim at achieving such objectives as - answer- expanding a company's geographic coverage, creating a more cost-efficient operation out of the combined companies, and/or extending the company's business into new product categories.
When an alliance among two or more enterprises involves formal ownership ties, it is called - answer- a joint venture
The two best reasons for investing company resources in vertical integration (either forward or backward) are to - answer- Strengthen the company's competitive position and/or boost its profitability.
According to the data Table 9.1, - answer- the Corruption Perception Index (CPI) scores
in such countries as New Zealand, Finland, Sweden, Norway, the Netherlands, and Germany are higher (indicating lower perceived levels of corruption) than is such countries as Japan, France, the United States, Israel, Spain, South Korea, Spain, India, and South Africa.
When it comes to the practice of some businesses paying bribes and kickbacks to secure government contracts, obtain a license or permit from government agencies, or win/retain the business of customers, it is fair to say that - answer- it is very difficult (and
logically inconsistent) for a multinational company to ethically justify such payments in countries where bribes and kickbacks are common practice when it does business in countries where such payments are illegal and/or when the company's code of ethics forbids such payments.
The use of child labor - answer- may be ethically permissible according the school of ethical relativism in those countries/cultures where the use of child labor to perform business activities is normal and customary but does qualify as ethically permissible business behavior according to the school of ethical universalism because in most societies, especially modern industrialized countries, such a practice is considered unethical, morally objectionable, and, usually, illegal. The moral case for why businesses should act in a socially responsible manner - answer- boils down to "its the right thing to do--ordinary decency, civic-mindedness, and
concern for the well-being of society should be expected of any business.
Which of the following are major drivers of unethical strategies and business behavior? -
answer- A company culture that puts profitability and good business performance ahead
of ethical behavior; lax oversight by company boards of directors that enables unscrupulous pursuit of personal gain, wealth, and other selfish interests; and heavy pressures on company managers to meet or beat short-term performance targets.
A company's environmental sustainability strategy concerns - answer- its deliberate actions to protect the environment, provide for the longevity of natural resources, maintain ecologically support systems for future generations, and guard against ultimate
endangerment of the planet.
Which one of the following is not a "strategic" purpose or intended outcome associated with entering into a strategic alliance or joint venture? - answer- To enable greater vertical integration
Because when to make a strategic move can be just as important as what move to make, a company's best option with respect to timing is - answer- to carefully weigh the first-mover advantages agains the first-mover disadvantages and act accordingly.
Which of the following is typically the most compelling strategic reason for pursuing forward vertical integration? - answer- To gain better access to end users, improve market visibility, and enhance brand name awareness.
Outsourcing strategies can offer such advantages as - answer- Reducing a company's risk exposure to changing technology or shifting buyer preferences and enabling company to concentrate on its core business, leverage its key resources, and do even better what it already does best.
Which of the following is not a potential defensive move to ward off challenger firms? - answer- Using a blue ocean strategy to maneuver around competitors and concentrate on capturing unoccupied or less contested market territory.
A Blue Ocean Strategy - answer- seeks to gain a dramatic and durable competitive advantage by abandoning efforts to beat out competitors in existing markets and, instead, moving to a "blue ocean" market space where the industry does to really exist yet, is untainted by competition, and offers wide open opportunity for profitable and rapid growth.
Which of the following conditions do not constitute a later-mover advantage (or first-
mover disadvantage)? - answer- The lack of any barriers to entering into an alliance or merging with another firm
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