Question 1

Which of the following is most likely managed like a corporation?

Accepted Answer

The answer of Which of the following is most likely...

Question 2

What is the primary objective when companies conduct corporate venturing?

Accepted Answer

Corporate venturing aims to achieve both financial returns and strategic benefits, such as gaining access to new technologies, markets, or business models.

Question 3

What is a disadvantage associated with corporate venturing?

Accepted Answer

Corporate venturing can interfere with ongoing operations as it may require resources and attention that could otherwise be focused on the core business activities.

Question 4

What is an advantage associated with corporate venturing?

Accepted Answer

Corporate venturing allows companies to explore new markets and technologies without having to rely on their mainstream customers.

Question 5

If a company's core venture is strategically important and the core capability is related, the new venture should be:

Accepted Answer

When a new venture is strategically important and related to the company's core capabilities, it should be integrated as part of the core businesses to leverage existing strengths and ensure alignment with the company's strategic goals.

Question 6

If a company's core venture is strategically important and the core capability is unrelated, the new venture should be:

Accepted Answer

When a core venture is strategically important but the core capability is unrelated, it is often best managed as a special unit to allow focus and flexibility while maintaining strategic alignment with the company's goals.

Question 7

If a company's core venture is of no strategic importance and the core capability is related, the new venture should be:

Accepted Answer

A contractually-based spin-off is suitable when the core venture is not strategically important but has related capabilities, allowing the company to benefit from the venture without fully integrating it.

Question 8

If a company's core venture is of no strategic importance and the core capability is unrelated, the new venture should be:

Accepted Answer

A direct spin-off is appropriate when the venture is not strategically important and the core capability is unrelated, allowing the company to separate it entirely.

Question 9

What is an advantage associated with acquisitions?

Accepted Answer

Acquisitions can provide multiple advantages, including gaining control over new technical property, acquiring market knowledge, and enhancing efficiency by combining operations and eliminating redundancies.

Question 10

What advantage of acquisitions was SBC Communications attempting to leverage with the acquisition of AT&T allowing the combined company to reduce R&D activities, headquarters staff and other operations?

Accepted Answer

SBC Communications aimed to enhance efficiency by combining operations and eliminating duplicative assets, which would allow the combined company to reduce R&D activities, headquarters staff, and other operations.

Question 11

What advantage of acquisition was Novartis attempting to leverage when it acquired biotechnology pioneer Chiron to gain access to the latter's vaccine development capabilities and to take advantage of the increasing size of the vaccine market that has resulted from fears of Avian flu?

Accepted Answer

The answer of What advantage of acquisition was Novartis attempting...

Question 12

Define centralization and decentralization and explain the advantages and disadvantages of each.

Accepted Answer

The answer of Define centralization and decentralization and explain the...

Question 13

Define mechanistic and organic organizational structures. Which structure is better at encouraging innovation? Why?

Accepted Answer

The answer of Define mechanistic and organic organizational structures. Which...

Question 14

Discuss the main reasons why spin-off companies are formed.

Accepted Answer

The answer of Discuss the main reasons why spin-off companies...

Question 15

Explain how high-growth technology companies finance their operations. Discuss the advantages and disadvantages associated with corporate venturing.

Accepted Answer

The answer of Explain how high-growth technology companies finance their...

Quiz 16: Organization Structure for Technology Strategy