Impact of Globalization on Organizational Future
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Questions and Answers

According to the population ecology theory, what is the key challenge for organizations in adapting to changing conditions?

  • Organizations can easily adapt by imitating successful competitors
  • Organizations are unable to adapt once established in a niche (correct)
  • Organizations adjust defensively and use knowledge offensively
  • Organizations have the power to reshape their environment

Which theory suggests that organizations can adapt by imitating other successful organizations?

  • Strategic choice perspective
  • Organizational learning theory
  • Institution theory (correct)
  • Population ecology

According to the strategic choice perspective, which of the following is true?

  • Organizations are unable to adapt to changing conditions
  • Organizations can only adapt by imitating successful competitors
  • Organizations can reshape their environment as well as adapt to it (correct)
  • Organizations adjust defensively but cannot use knowledge offensively

Which theory suggests that organizations adjust defensively to changing environments and use knowledge offensively to improve their fit?

<p>Organizational learning theory (A)</p> Signup and view all the answers

What is required for an organization to achieve strategic flexibility, according to the text?

<p>Long-term commitment to developing and nurturing critical resources (A)</p> Signup and view all the answers

Which of the following is NOT a key requirement for an organization to become a learning organization, according to the text?

<p>Reshaping the environment to suit the organization's needs (C)</p> Signup and view all the answers

According to the theories discussed, which of the following statements is true?

<p>Organizations can reshape their environment as well as adapt to it (B)</p> Signup and view all the answers

What is the key difference between the population ecology theory and the institution theory?

<p>Population ecology theory suggests adaptation is impossible, while institution theory suggests it is possible (D)</p> Signup and view all the answers

Which of the following theories suggests that organizations can actively shape their environment, rather than just adapt to it?

<p>Strategic choice perspective (C)</p> Signup and view all the answers

What is the key characteristic of a learning organization?

<p>Long-term commitment to developing and nurturing critical resources (A)</p> Signup and view all the answers

What is the purpose of nominating committees in large U.S. corporations?

<p>To identify potential board member candidates (C)</p> Signup and view all the answers

What is the difference between a direct and indirect interlocking directorate?

<p>A direct one involves sharing a director, an indirect one uses a third firm (D)</p> Signup and view all the answers

What is a staggered board in the context of board member elections?

<p>Boards where some members have shorter terms than others (B)</p> Signup and view all the answers

Based on the text, which of these statements about codetermination is true?

<p>It is the inclusion of workers on corporate boards (A)</p> Signup and view all the answers

What is a key factor contributing to intense rivalry among existing firms, as per Porter's analysis?

<p>Number of competitors (D)</p> Signup and view all the answers

Which of the following is NOT considered a possible barrier to entry for new entrants into an industry?

<p>Rate of industry growth (B)</p> Signup and view all the answers

In the context of industry competition, what role do exit barriers play in influencing rivalry among existing firms?

<p>Increase it by making it harder for firms to leave the industry (A)</p> Signup and view all the answers

Which of the following is NOT a factor contributing to the threat of new entrants into an industry?

<p>Amount of fixed costs (D)</p> Signup and view all the answers

What is a characteristic of industries where corporations exhibit mutual dependence and competitive moves by one firm can lead to retaliation?

<p>Presence of high switching costs (A)</p> Signup and view all the answers

What is the purpose of analyzing the industry situation and predicting competitors' behavior under different scenarios?

<p>To understand how external forces will impact the company's competitive position (D)</p> Signup and view all the answers

Why is it important to determine the sources of competitive advantage under different scenarios?

<p>To leverage strengths and opportunities while mitigating weaknesses and threats (D)</p> Signup and view all the answers

In the context of competitor analysis, what does selecting scenarios that are most likely to occur or have a strong impact help in?

<p>Formulating strategies based on potential industry changes (C)</p> Signup and view all the answers

How does combining assumptions about individual trends into internally consistent scenarios benefit strategic planning?

<p>It enhances decision-making by providing a holistic view of possible futures (B)</p> Signup and view all the answers

Why is it necessary to identify uncertainties in each force of the task environment for effective strategic management?

<p>To evaluate how external factors might impact the organization (D)</p> Signup and view all the answers

What is the purpose of an External Factor Analysis Summary (EFAS) table?

<p>To analyze a company's competitive environment and strategic position (D)</p> Signup and view all the answers

In the context of competitor analysis, what does multiplying each factor's weight by its rating help determine?

<p>The impact of each factor on the company's strategic position (D)</p> Signup and view all the answers

How does an External Factor Analysis Summary (EFAS) table help companies understand their competitive landscape?

<p>By identifying opportunities and threats in the external environment (B)</p> Signup and view all the answers

Which of the following is NOT a source of competitive intelligence?

<p>Patent filings (B)</p> Signup and view all the answers

What is the primary reason for monitoring a competitor's cost base and liquidity, according to the text?

<p>To gauge their financial stability and pricing power (B)</p> Signup and view all the answers

Which of the following is NOT mentioned in the text as a factor to consider when monitoring competitors for strategic planning?

<p>The competitors' supply chain and logistics capabilities (C)</p> Signup and view all the answers

Based on the information in the text, which of the following would be the LEAST effective way to gather competitive intelligence?

<p>Engaging in industrial espionage (C)</p> Signup and view all the answers

Which of the following is a key factor to consider when monitoring competitors for strategic planning?

<p>Which of your customers the competitors are most interested in (B)</p> Signup and view all the answers

What is the primary purpose of mapping strategic groups in a particular industry?

<p>To determine which firms are in direct competition with each other (C)</p> Signup and view all the answers

In the context of strategic types, which type of firms focus on product innovation and market opportunities?

<p>Prospectors (C)</p> Signup and view all the answers

How does hypercompetition threaten market stability in industries?

<p>By frequently redefining market boundaries as industries merge (D)</p> Signup and view all the answers

What are key success factors in the context of competitive analysis within an industry?

<p>Variables that can affect companies' competitive positions within an industry (D)</p> Signup and view all the answers

Which type of firms lack a consistent strategy-structure-culture relationship according to the text?

<p>Reactors (B)</p> Signup and view all the answers

Based on the EFAS table, which of the following is a potential 'bing bang disruption' threat to Skechers USA?

<p>Rapidly changing consumer preferences (C)</p> Signup and view all the answers

Which of the following is NOT considered a key aspect of an organization's environment that can influence its long-term decisions according to the text?

<p>Organizational culture (B)</p> Signup and view all the answers

Based on Porter's Five Forces analysis, which of these forces is LEAST likely to affect the intensity of rivalry within a mature industry?

<p>Threat of new entrants (C)</p> Signup and view all the answers

Which of the following is a key characteristic of industries where firms exhibit mutual dependence, as discussed in the text?

<p>Competitive moves by one firm are likely to lead to retaliation by others (B)</p> Signup and view all the answers

Which of the following is NOT a factor that can contribute to the threat of new entrants into an industry?

<p>Strict government regulations (B)</p> Signup and view all the answers

Which of the following statements best describes how industry maturity affects the competitive forces in an industry, according to the text?

<p>In mature industries, the threat of new entrants is lower, but the bargaining power of suppliers and buyers is higher. (B)</p> Signup and view all the answers

What is a key factor that contributes to intense rivalry among existing firms in an industry?

<p>All of the above (D)</p> Signup and view all the answers

Which of the following is a key characteristic of industries where firms can easily enter and exit, as discussed in the text?

<p>Firms can quickly adjust their capacity and strategic decisions in response to market changes (D)</p> Signup and view all the answers

According to Porter's Five Forces analysis, which of the following forces is MOST likely to affect the intensity of rivalry in a highly fragmented industry with many small competitors?

<p>Threat of new entrants (A)</p> Signup and view all the answers

Which of the following is a key success factor that can be used to develop an industry matrix, as discussed in the text?

<p>All of the above (D)</p> Signup and view all the answers

Which of the following is NOT a key characteristic of industries where firms exhibit mutual dependence?

<p>Firms can easily enter and exit the industry (D)</p> Signup and view all the answers

In competitor analysis, selecting scenarios that are least likely to occur helps in understanding the competitive landscape better.

<p>False (B)</p> Signup and view all the answers

Exit barriers play a minimal role in influencing rivalry among existing firms in an industry.

<p>False (B)</p> Signup and view all the answers

Porter's Five Forces analysis suggests that the threat of substitutes is least likely to affect the intensity of rivalry within an industry.

<p>False (B)</p> Signup and view all the answers

Mapping strategic groups in an industry primarily helps in identifying the weakest competitors.

<p>False (B)</p> Signup and view all the answers

Competitive intelligence sources should not be varied to ensure a holistic understanding of the competitive environment.

<p>False (B)</p> Signup and view all the answers

Industry maturity has a minimal impact on the competitive forces within an industry.

<p>False (B)</p> Signup and view all the answers

In highly fragmented industries with many small competitors, rivalry is less likely to be intense according to Porter's Five Forces analysis.

<p>False (B)</p> Signup and view all the answers

Hypercompetition can contribute to market stability within industries.

<p>False (B)</p> Signup and view all the answers

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