Chapter 5 CS

What is the central question in the step 'Disaggregation of the Industry Value Chain'?

Which step of the decision process focuses on determining if a corporation can earn revenues higher than the capital costs?

Which factor is important in determining the need for coordination in a firm?

In the context of competitive advantage, what is the condition for a firm to possess a competitive advantage?

What aspect does Step 3 ('Market Failure') of the decision process focus on?

What is the purpose of having an 'open' structure in the analysis of corporations?

Which element is not part of the three different elements of the triangle discussed as part of Resources in Corporate Strategy?

What does the Value driver tree based on Du Pont scheme aim to provide?

What is one primary focus area discussed in the topic 'Organizational Limits to Firm Scope'?

In the context of Corporate Strategy, what does 'Corporate Governance' primarily refer to?

What is a common consequence of the principal and agent having different goals in a firm?

In the context of governance structures, which characteristic makes employee performance easier to regulate?

What factor is a key consideration in the choice between market and hierarchy structures for a firm?

Which element influences the decision-making process about vertical integration into a specific activity?

In the context of the automotive industry example provided, which component category is usually bought rather than made?

What is the main focus of Chapter 5 in the text provided?

What does the text suggest as a key consideration for determining the scope of a firm?

What are the costs associated with the Market in the context of corporate strategy?

In the context of corporate strategy, what are 'Scale' Effects related to?

Why does the text mention the question 'Why should a particular business/activity be performed inside the firm?' in relation to Corporate Strategy?

What is the main focus of Transaction Cost Economics (TCE) in the context of corporate strategy?

According to Agency Theory, what are some critical assumptions about individuals involved in corporate activities?

Which concept focuses on leveraging critical corporate resources across corporate boundaries?

In the context of corporate strategy, what is one of the key explanatory variables considered in the Relational View?

Who is known for their contributions to understanding the characteristics of vertical relationships in the context of corporate strategy?

According to Coase (1937) and Williamson (1975), why do firms exist?

In the context of governance structures, why are activities organized within hierarchical structures according to the Theory of the Firm?

What is the main reason why markets are preferable according to Coase (1937) and Williamson (1975)?

How does the neoclassic theory argue for economic organization?

What does the concept of 'governance costs of the transaction' refer to in the context of corporate strategy?

What is the primary role of high-powered incentives for individual unit owners in a franchising system?

Why does standardization of the product play a crucial role in the franchising model described?

How does the practice of franchising impact the decision-making process regarding the scope of a firm?

In the context of a franchising model, what problem does standardization of the product help to mitigate?

Why would monitoring operations of multiple stores across different locations be costly in a franchising system?

What impact does the skill and effort of store managers have on store performance in a franchising system?

How does high-powered incentives for individual unit owners in a franchising system differ from standardization of products?

In the context of governance structures, what are the benefits of Market over Hierarchy? Informational efficiency, _______ power, coordination benefits

According to Collis and Montgomery, what is a key cost of the Hierarchy in the Choice between Market and Hierarchy? Bureaucracy and _______ costs

When considering the Limits to Firm Scope, what is the source of benefit A and cost B in the increasing Firm Scope diagram? Benefit of Transaction, Cost of the _______

In the automotive industry example of the 'Make or Buy' Model, what component category is usually bought rather than made? _______ components

What is the governance structure that is most common according to the Spectrum in Corporate Strategy? Corporate _______

According to Transaction Cost Economics (TCE), the unit of analysis is the ______

In Agency Theory, critical corporate resources can be leveraged across corporate ______

The Relational View in Corporate Strategy focuses on relationships between firms and ______

According to Coase (1937) and Williamson (1981), firms exist due to ______

In the context of corporate strategy, the Theory of the Firm discusses the organization of activities within ______ structures

Step 1: Disaggregation of the Industry Value Chain involves breaking down the industry value chain into all __________ that can be separated sensibly.

Competitive Advantage is about a corporation's ability to earn revenues higher than the __________ costs.

Market Failures are assessed based on the existence of high costs of market __________.

In the Decision Process, Step 4 focuses on the firm's need for __________.

Step 5 emphasizes the importance of __________ for the firm's operations.

In Corporate Strategy, the text discusses the advantages and costs of the ______

Expansion within an Industry and Expansion between Industries are characteristics of corporate ______

The scope of the firm is defined by where the firm boundaries lie and whether the firm possesses resources that provide a competitive ______

The decision-making process regarding the scope of a firm involves choosing between the ______ or Hierarchy

The text raises the question of why a particular business/activity should be performed inside the ______

The purposefully 'open' structure in the analysis of corporations leaves room for your thoughts on the topic and similar questions to the exam.

In Corporate Strategy, the Governance structure that is most common according to the Spectrum is Corporate _______.

The primary focus area discussed in the topic 'Organizational Limits to Firm Scope' is ___________.

One of the key explanatory variables considered in the Relational View in Corporate Strategy is _______.

The main focus of Transaction Cost Economics (TCE) in the context of corporate strategy is to analyze transaction _______.

According to Coase (1937) and Williamson (1975), why do firms exist? Why is not everything organized in one giant ______?

Sometimes market failure arises; e.g., governance costs of the transaction are higher than the benefit of low production costs. Corporate Strategy 12 Governance Structures: Market vs. ______

Why does the text mention the question 'Why should a particular business/activity be performed inside the firm?' in relation to Corporate ______?

What is the main reason why markets are preferable according to Coase (1937) and Williamson (1975)? Sometimes market failure arises; e.g., governance costs of the transaction are higher than the benefit of low production costs. Corporate Strategy 12 Governance Structures: Market vs. ______

According to the text provided, what is a common consequence of the principal and agent having different goals in a firm? Step 1: Disaggregation of the Industry Value Chain involves breaking down the industry value chain into all ______ that can be separated sensibly.

Can dominant firms exercise market ______?

In the context of Corporate Strategy, what does 'Corporate Governance' primarily refer to?

What is more important: coordination or high-powered ______?

What is a common consequence of the principal and agent having different goals in a firm?

What factor is a key consideration in the choice between market and hierarchy structures for a firm?

According to Coase (1937) and Williamson (1981), firms exist due to ______

What does the concept of 'governance costs of the transaction' refer to in the context of corporate strategy?

Why would monitoring operations of multiple stores across different locations be costly in a franchising system?

What impact does the skill and effort of store managers have on store performance in a franchising system?

The Relational View in Corporate Strategy focuses on relationships between firms and ______