SP25 STRivia Exam 2

Hooli, a web development firm, aims to implement an organic organizational structure to promote innovation and attract top creative talent. Which of the following characteristics would most likely hinder this goal?

• Decentralized decision-making across the organization

• Wide span of control for managers

• Commitment to a cost-leadership strategy

• Flexible and evolving job roles for employees

• Informal communication channels across teams

Which of the following is a commonly cited benefit of CEO duality?

• Increased independence in board decisions

• Enhanced focus on shareholder oversight

• Streamlined and faster decision-making processes

• Reduced risk of managerial opportunism

• Improved diversity in board composition

Which of the following examples best represents a strategic alliance?

• Microsoft acquires LinkedIn to expand its presence in professional networking and enterprise services.

• Starbucks teams up with PepsiCo to bottle and distribute Starbucks-branded coffee drinks in global retail outlets.

• Disney acquires Marvel to expand its content portfolio and intellectual property.

• Google develops its own in-house Pixel smartphone to control hardware and software integration.

According to Michael Porter, which of the following does not help reconnect economic and societal needs?

• Expand the customer based to bring in actors at the bottom of the pyramid

• Expand traditional internal firm value chains to include more nontraditional partners

• Focus on creating new regional clusters

• Prioritize short-term profits over long-term societal benefits

• All of the above

Kristina runs an organization that implements a cost-leadership strategy. This business-level strategy supports both a ________ and ________ structure.

• matrix; organic

• M-form; vertical

• simple; organic

• functional; mechanistic

Donald owns shares of Meat and Bone Steakhouse, a food and beverages company. The company’s financial situation takes a turn for the worse and ends up in severe debt. Despite owning shares of Meat and Bone Steakhouse, Donald is not responsible for bringing more money into the company to get it out of its debt. Which characteristic of public stock companies does this scenario best exemplify?

• transferability of investor ownership

• legal personality

• separation of legal ownership and management control

• limited liability for investors

________ is a mechanism to direct and control an enterprise and attempts to address the principal–agent problem, which can occur any time an agent performs activities on behalf of a principal.

• Corporate governance

• CEO Pledge of CSR in 2019

• UN Sustainable Development Goals

• ESG strategy

• Competitive advantage analysis

The executives at Dizzy & Sons Corp. are developing strategic plans to address plausible future situations like rise in the prices of cotton and synthetic fabrics by 20%, appreciation in the value of the dollar, increase in the cost of labor by 30%, and increase in demand for the firm’s products. By doing so, the firm will be well prepared with its planned responses if any of these situations occurs in the future. In this case, Dizzy & Sons Corp. is employing ________ as the approach to the development of strategy.

• AFI framework

• scenario planning

• business strategy

• corporate strategy

• diversification

A U.S.-based firm is evaluating expansion into Country X or Country Y, using the CAGE Distance Framework. This table presents relevant indicators. In all scaled variables, higher values indicate greater similarity to the U.S. Based on the cultural indicators, which country has greater cultural similarity to the U.S.?

• Country X, due to stronger language and legal similarity

• Country Y, due to greater time zone overlap

• Country X, based on higher scores across language and culture

• Country Y, due to closer geography and moderate political stability

• Country X, although it has a lower GLOBE similarity than Country Y

Sonron Auto Corporation generates 85% of its annual revenues by manufacturing luxury cars. The company derives 15% of its annual revenues by selling its sports merchandise that includes apparel, shoes, and other accessories under the same brand name. Which of the following terms best describes Sonron Auto Corporation?

• A conglomerate

• A subsidiary

• A dominant-business firm

• A single-business firm