Deck 7: Strategy Implementation Through Interorganizational Relationships and Management of Functional Resources

Question 1

A tourism cluster includes all of the following except _________.

A) food and beverage facilities
B) lodging
C) highways and ports
D) manufacturing plants
E) governmental promotion agencies

Answer 1

manufacturing plants

Question 2

The advantages of interorganizational relationships include all of the following except _____.

A) ease entering a foreign market
B) risk and cost sharing
C) clarity of decision making
D) organizational decision making
E) neutralizing or blocking competitors

Answer 2

clarity of decision making

Question 3

Relative to mergers and acquisitions or internal venturing, joint ventures are considered to be _____.

A) more risky
B) less risky
C) no difference in risk than either mergers or acquisitions and internal venturing
D) less risky than mergers and acquisitions but more risky than internal venturing
E) more risky than mergers and acquisitions but less risky than internal venturing

Answer 3

less risky

Question 4

The difficulties with partnerships include all of the following except _____.

A) a firm enjoys only part of the growth and profits experienced
B) clashes in company culture can erode cooperation between firms
C) partnerships can have high administrative costs
D) evidence in some environments that partnerships lead to poorer performance
E) firms gain access to resources previously prohibited

Question 5

When hotel developers enter China, the knowledge they need most concerns _____.

A) government issues such as understanding government behavior
B) new and unique products the local Chinese are developing
C) where the cheapest inputs for the manufacturing process can be located
D) what other international competitors are doing in the market
E) new technologies the Chinese have developed

Question 6

The power of stakeholders is increased by all of the following except _____.

A) they hold a legal or contractual right to make decisions that affect the organization
B) they hold economic power that impacts the organization
C) they hold knowledge that is important to the organization
D) they hold little influence that can influence the environmental uncertainty facing the firm
E) they hold political power that impacts the organization

Question 7

Buffering refers to _____.

A) Bill Buffet and the type of investment strategy he normally pursues
B) building slack resources in the firm
C) techniques that stabilize and predict environmental influences and soften potential jolts
D) seeking to increase the profit of the firm by cutting R&D
E) expanding the distribution of the firm's products to close off potential entry by strategic competitors

Question 8

Methods that can be used in buffering the organization include all of the following except_____.

A) market research
B) creation of special departments (i.e. legal, recruiting)
C) advertising
D) public relations
E) partnering with key stakeholders

Question 9

In the text Wal-Mart is an example of a firm that _____.

A) uses political power to influence its stakeholders
B) experienced problems due to its partnerships
C) does not experience problems due to its resistance to partnering
D) does not use political power in its partnerships
E) does not use formal power

Question 10

Collusion among firms in different parts of the world _____.

A) is always illegal
B) occurs infrequently
C) often is not illegal
D) not profitable
E) a violation of WTO

Question 11

Alliances between units of government and business _____.

A) never occur in the United States
B) existed in the early part of the 1900s but now are prevented by anti-trust law
C) are in severe decline because they violate the free market orientation of the nation
D) are flourishing in the United States
E) only occur in environments that are transitioning from centralized economies to market economies

Question 12

The response to special interest groups that represent smaller social groups most likely will be _____.

A) buffering
B) ignoring them
C) partnering with them
D) actively opposing them
E) done reluctantly

Question 13

One of the best ways to reduce unfavorable regulation in an industry is to _____.

A) contribute to political campaigns
B) operate in a manner consistent with the values of society
C) maintain a low profile in the society
D) hire premier lawyers to fight regulations in the courts as they are proposed
E) join business alliances to oppose such regulations

Question 14

Financial intermediaries include all of the following except _____.

A) investment advisors
B) brokerage houses
C) mutual funds
D) stock regulators
E) pension funds

Question 15

External stakeholders for firms will _____.

A) be consistent in importance for all firms
B) have the top two or three consistent in importance for all firms
C) have the top one consistent in importance for all firms
D) vary in importance firm to firm
E) be difficult to identify for most firms

Question 16

The means to improve the likelihood of success of a partnership include all of the following except _____.

A) establish clearly the roles of the parties
B) ensure that meetings between the two parties are formal and at a senior level to avoid interference in the venture
C) anticipate and plan for cultural differences
D) keep top managers involved in the process so that middle managers stay committed
E) establish a strategic plan for partnership that outlines specific objectives

Question 17

The companies that are the most successful in implementing their strategies _____.

A) create a strategic vision throughout the company with the full involvement of the employees
B) locate in growing industries so that there are extensive opportunities for employees
C) locate in mature industries where operations are simple and clear cut
D) have limited levels of organizational structure so that communication from the top to the bottom of the organization is direct
E) pursue decentralized efforts so there is limited need for different functional areas to interact as they implement the firm's strategy

Question 18

A functional strategy audit _____.

A) examines one functional area in depth to determine how that functional area operates
B) examines all functional areas to determine their internal consistency, consistency across functional areas, and the extent to which they support each other
C) examines the financial returns of the organization that are an outcome of one functional area
D) is an accounting audit that is conducted within one strategy functional area
E) examines the key functional area of the organization and the financial returns that are provided by those functional areas

Question 19

Industry labor unions like the Hotel Employees and Restaurant Employees International Union (HERE) often work under neutrality agreements. These agreements _____.

A) make sense in non-union cities
B) mean employees have the right to vote in a secret ballot to determine whether they wish to be represented by the union
C) mean the hotel does not have the right to contest union organization
D) permit changes after the parties finish negotiations to address unforeseen problems
E) allow a number of interest-based study teams to develop solutions

Question 20

Define and develop a tourism cluster for a specific geographic location. Be sure to include all sectors in the cluster you draw.

Question 21

Discuss the range of external stakeholders that potentially can impact a firm.

Question 22

What are some of the additional steps that can help to lead to success of an alliance?

Question 23

Discuss the criteria that should be examined in a functional strategy audit of R&D technology