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Question
Clarita Cosmetics is confronting a decline in sales due largely to a general economic downturn. The top management team is debating whether to lay off employees. In the debate, the following statements are made. Which of the statements is FALSE?
a. If Clarita Cosmetics lays off a large number of employees, there will be a significant loss of human capital that will cause further downturns in the firm's performance.
b. A moderate-sized layoff at Clarita Cosmetics will probably improve firm performance.
c. If Clarita Cosmetics restructures, it ought to increase investments in training and development.
d. A layoff will increase the slack at Clarita Cosmetics and allow the firm to absorb the increased number of errors employees may make until they learn their new tasks.
Answer
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Related questions
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For 15 years, Edward was a compensation specialist at a mid-sized firm. He was laid off when the firm experienced financial setbacks. Edward has decided to open his own business as a compensation consultant to small firms. He can expect that his main source of human capital will be a bank line of credit.
a. True
b. False
Q:
A cost leadership strategy targets the industry's ____ customers.
a. most typical
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c. least educated
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Q:
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a. True
b. False
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Capabilities of an organization emerge spontaneously through the interaction of tangible and intangible resources.
a. True
b. False
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Valuable capabilities allow the firm to exploit strengths or neutralize weaknesses in the internal environment.
a. True
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Q:
The Renault Nissan alliance (Chapter 9 Mini Case) is an example of a _______ created to gain economies of scope by sharing resources and capabilities.
a. diversifying strategic alliance
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Q:
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Q:
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a. predatory alliances.
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Research in the airline industry suggests that tacit collusion reduces service quality and on-time performance.
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a. True
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Acquisitions are the most common cooperative strategy used in standard-cycle markets.
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Q:
A global corporate-level strategy differs from a multi-domestic corporate-level strategy in that in a global strategy:
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Q:
A fundamental reason for a country's development of advanced and specialized factors of production is often its:
a. lack of basic resources.
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Q:
A large domestic market can provide the country's industries a chance at dominating the world market because:
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Q:
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Q:
Factors of production in Porter's model of international competitive advantage include all of the following EXCEPT:
a. labor.
b. capital.
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Q:
Monahegan Plasma Company is facing a performance downturn and realizes that a major rethinking of its strategy is in order. Under these circumstances, Monahegan Plasma would benefit from a(n):
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b. external CEO with a heterogeneous top management team.
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d. CEO with long tenure who has a strong sense of hubris.
Q:
Which of the following is NOT one of the five dimensions thought to characterize an employee's entrepreneurial mind-set?
a. Autonomy
b. Reactivity
c. Risk taking
d. Innovativeness
Q:
The more heterogeneous and the larger the top management team, the easier it is to implement strategy effectively.
a. True
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Q:
When a new CEO is selected from outside the firm, a change of strategy is likely, especially if the top management team is homogenous and highly cohesive.
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Q:
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a. True
b. False
Q:
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a. True
b. False
Q:
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a. True
b. False
Q:
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a. True
b. False
Q:
The most critical ability of a strategic leader is the ability to attract and then manage human capital.
a. True
b. False
Q:
In the past, companies had a preference for insiders to fill top-level management positions because of the desire for continuity and a continuing commitment to the firm's current vision, mission, and chosen strategies.
a. True
b. False
Q:
Transformational leadership is the most effective strategic leadership style.
a. True
b. False
Q:
What is organizational culture? What must strategic leaders do to develop and sustain an effective organizational culture?
Q:
Define the three major dimensions of organizational structure: specialization, centralization, and formalization. How do these dimensions vary in organizations implementing the cost leadership, differentiation, and cost leadership/differentiation strategies?