Exam 3

Question 0

Acquisition

Answer 0

A strategy through which one firm buys a controlling interest in another firm with the intent of making the acquired firm a subsidiary business within its portfolio

Question 1

Merger

Answer 1

A strategy through which firms agree to integrate the entities on a relatively coequal basis

Question 2

Takeover

Answer 2

An acquisition I. Which the target firm did not solicit the bud of the acquiring firm (unfriendly). Take over implies acquiring firm is larger than target; reverse takeover of the target is larger than the acquirer

Question 3

Reasons for acquisitions

Answer 3

Increased market power, overcoming entry barriers, cost of new product development and increased speed to market, lower risk than new products, increased diversification, reshaping competitive scope, leaving and developing new capabilities

Question 4

problems in achieving success with acquisitions

Answer 4

Integration difficulties, inadequate evaluation of target, large debt, inability to achieve synergy, too much diversification, overly focused on acquisitions, too large

Question 5

Organization design

Answer 5

The deliberate process of how a company will. Create, use and configure structures, systems and processes, and cultural practices to create an effective organization capable of achieving and exciting strategy

Question 6

Hard infrastructure

Answer 6

Organizational structure and systems

Question 7

Soft infrastructure

Answer 7

Culture and norms

Question 8

An organizations ability to execute strategy depends on its…

Answer 8

Hard and soft infrastructure

Question 9

Organizational design is made up of..

Answer 9

Structure, systems and controls, and culture

Question 10

Structure

Answer 10

Assigning employees to value creation activities that are linked to achieve efficiency, quality, innovation, and responsiveness to customers

Question 11

Benefits of structure

Answer 11

Defines jobs and tasks, defines communication channels, prescribes how individuals and teams coordinate their work efforts, hierarchy of authority

Question 12

Types of organization

Answer 12

Talk or flat

Question 13

Components of external stakeholders

Answer 13

Customers, suppliers, creditors, governments, unions, local communities, general public

Question 14

Internal stakeholders

Answer 14

Stockholders, employees, managers, board members

Question 15

What matters most for structure in order to successfully execute strategy

Answer 15

clarifying decision, designing information flows, aligning motivators, making changes to organizational structure, enhancing communication mechanisms

Question 16

Strategic controls

Answer 16

Allow managers to monitor and evaluate if te business model is working as intended and how it can be improved

Question 17

Balanced scoresheet

Answer 17

Managers develop strategic objectives for the balanced scorecard by answering Key questions (how do customers view us? How do we create value?)

Question 18

Triple bottom line

Answer 18

Performance targets beyond profits 1. People (social concerns) 2. Planet (environmental concerns) 3. Profits (economic concerns)

Question 19

Implications for the strategist

Answer 19

Better strategy, integrative nature of strategy, tools to measure performance, quantitative and qualitative measures

Question 20

Culture

Answer 20

Describing the collection of values, norms, beliefs and attitudes shared by people and groups within an organization

Question 21

Characteristics of strong and adaptive corporate culture

Answer 21

Bias for action, organizations mission, employees motivated to do their best