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Question
Discuss how the potential benefits of diversification may be adversely affected by conflicts between manager interests and stockholder interests. Hint: Egotism, growth for the sake of growth, antitakeover tactics.
Answer
Answers will vary.
Related questions
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What are the five dilemmas that most firms face, when trying to determine the best way to manage the innovation process?
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Innovation is an important source of growth opportunity. Explain this statement, providing examples to support your argument.
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Which kind of risk taking requires that a company borrow heavily or commit a large portion of its resources in order to grow?
A. business risk taking
B. financial risk taking
C. personal risk taking
D. technological risk taking
Q:
One of the following is not a type of risk that executives must address. Which is it?
A. business risk taking
B. financial risk taking
C. personal risk taking
D. product-market risk taking
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Amazon was able to define the online bookselling market by entering the market early and defining the user experience. This is an example of _____________.
A. innovativeness
B. proactiveness
C. competitive aggressiveness
D. autonomy
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Which of the following is not one of the dimensions of entrepreneurial orientation?
A. proactiveness
B. risk taking
C. autonomy
D. opportunism
Q:
On average, approximately what percentage of corporate ventures reaches profitability within six years?
A. 80 percent
B. 65 percent
C. 50 percent
D. 35 percent
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Management innovations such as total quality, just-in-time, benchmarking, business process reengineering, and outsourcing are important, but not enough for building sustainable competitive advantage.
Q:
The three interrelated and principal activities of strategic management are: strategy analysis, strategy formulation, and strategy implementation.
Q:
A soft trend is a projection based on measureable facts, events, or objects. It is something that will happen.
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Organizations must focus on financial and nonfinancial objectives. Select an organization and discuss possible financial and nonfinancial objectives the organization may have.
Q:
A mission statement encompasses the purpose of the company as well as the basis of competition and competitive advantage. Compare the purpose of a mission statement to that of a vision statement and a strategic objective.
Q:
A firm has a variety of stakeholders. Identify several possible stakeholders a firm may have and discuss how the firm may achieve stakeholder symbiosis.
Q:
Discuss the key elements of corporate governance.
Q:
In large organizations, conflicts can arise between functional areas. In order to resolve these conflicts, strategic objectives:
A. put financial objectives above human considerations
B. align departments toward departmental goals
C. help resolve conflicts through their common purpose
D. cause debate and increase conflict
Q:
Fortune Brands states they will cut corporate overhead costs by $30 million a year. This is an example of a:
A. nonfinancial strategic objective
B. financial strategic objective
C. vision statement
D. mission statement
Q:
In contrast to the vision of an organization, its mission should:
A. be shorter in length
B. encompass both the purpose of the company as well as the basis of competition
C. encompass all the major rules and regulations of the corporate work force
D. be less detailed.
Q:
Examples of __________ include: To be the happiest place on earth (Disneyland), and Restoring patients to full life (Medtronic).
A. vision statements
B. mission statements
C. strategic objectives
D. operational objectives
Q:
The hierarchy of organizational goals is in this order (least specific to most specific):
A. vision statements, strategic objectives, mission statements
B. mission statements, strategic objectives, vision statements
C. vision statements, mission statements, strategic objectives
D. mission statements, vision statements, strategic objectives
Q:
Strategy formulation and implementation is a challenging ongoing process. To be effective, it should not involve:
A. the CEO and the board of directors
B. the board of directors, CEO, and CFO
C. competitors
D. line and staff managers
Q:
Many organizations have a large number of functional areas with very diverse and sometimes competing interests. Such organizations will be most effective if:
A. each functional area focuses on achieving their own goals
B. functional areas work together to attain overall goals
C. goals are defined at the bottom and implemented at the top
D. management and employees have separate goals
Q:
Members of boards of directors are:
A. appointed by the Securities and Exchange Commission
B. elected by the shareholders as their representatives
C. elected by the public
D. only allowed to serve one term of four years
Q:
__________ involves ensuring proper strategic controls and organizational designs.
A. Corporate governance
B. Corporate-level strategy
C. Strategy implementation
D. Business-level strategy
Q:
Objectives in organizations should be clear, stated, and known by employees throughout the organization.
Q:
Strategic objectives should be measurable, specific, appropriate, and realistic, but not constrained by time deadlines.
Q:
Most organizations with strong cultures and a sound system of rewards and incentives can eventually internalize boundaries rather than use explicit rules and regulations. Which of the following is not a technique for moving in that direction?
A. Hire people that identify with the dominant values of the organization.
B. Develop managerial role models.
C. Minimize training and indoctrination.
D. Align reward systems with organizational goals and objectives.
Q:
Rules and regulations are examples of ______________ and _____________.
A. controls; behaviors
B. controls; norms
C. boundaries; behaviors
D. boundaries; constraints
Q:
Effective short-term objectives should ______________ and _____________.
A. be specific; measurable
B. be achievable; not challenging
C. be motivating; not limiting
D. be time defined; not limiting
Q:
As firms simultaneously downsize and face the need for increased coordination across organizational boundaries, a control system based primarily on ______________ is dysfunctional.
A. boundaries and constraints
B. culture and rewards
C. organizational loyalty
D. innovation and risk taking
Q:
For businesses facing complex and turbulent business environments, which of the following is true?
A. Goals and objectives that are uncertain prevent opportunism.
B. Traditional strategic controls are usually inappropriate.
C. Complacency about predetermined milestones can prevent adaptability.
D. Detailed plans are needed to maintain order.