Q&A Hero

Q: Kinders Deli has been in business for three generations. A place was found for every Kinder child to work in the shop. The name Kinder meant fine deli meats. This familys commitment is based on: a. family control. b. identification with the firm. c. binding social ties. d. emotional attachment. e. renewal of family bonds.

Q: Advantages of outsourcing do NOT include: A) cost savings. B) gaining outside expertise. C) maintaining a focus on core competencies. D) accessing outside technology. E) potential creation of future competition.

Q: The more you can do, the more is expected of you. Josh already had his hands full managing just one of his fathers retail stores. He didnt doubt his ability to do well managing an entire region but still he was reluctant to accept the assignment. He is likely afraid of: a. failure. b. success. c. commitment. d. disappointing his parents.

Q: Which of the following is not an advantage of outsourcing? A) cost savings B) gaining outside expertise C) improving operations and service D) outsourcing core competencies E) accessing outside technology

Q: Which statement is true concerning using available family talent in the succession plan? a. Younger family members working in the business should realize that mistakes early on in their careers should be considered in their future advancement. b. If the available talent is not sufficient inside the company, the owner must bring in outside leadership even if it is not perceived as a favorable decision by the family at large. c. If a younger family member would like to advance their career by working on a new direction for the company, a negative decision by their parent means they should not discuss their ideas with the board of directors. d. It is rare a younger member will have the skill set to rescue a struggling company; therefore they should not be considered for a succession plan.

Q: Which of the following statements is most accurate? A) Nearly all outsourcing relationships do not last beyond two years. B) Nearly all U.S. firms that outsourced processes to India have backsourced them. C) Approximately half of all outsourcing agreements fail. D) Outsourcing is a relatively risk-free activity. E) More than 90% of outsourcing agreements succeed.

Q: One of the most frequent and stressful roles performed by the spouse who is not active in the business is to: a. serve as the mediator between the entrepreneur and the children. b. be a good listener. c. mandate they are given a copy of the books each month. d. All of the above are activities of the non-active spouse.

Q: What theory implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can? A) theory of competitive advantage B) theory of core competencies C) theory of comparative advantage D) theory of outsourcing E) theory of offshoring

Q: John and his brother Jack started a produce farm 20 years ago and are thinking about retirement. Over time, their children have worked at the farm and so the cousins have started talking about taking over management. At present, this produce farm is an example of ____. a. co-preneur managed business b. cousin consortium c. owner-managed business d. sibling partnership

Q: Outsourcing manufacturing is also known as: A) license manufacturing. B) sublease manufacturing. C) concurrent manufacturing. D) hollow manufacturing. E) contract manufacturing.

Q: An issue that may become a problem for a couples-owned business is: a. deciding who is boss. b. managing child care. c. spending too much time together. d. establishing company goals.

Q: Outsourcing is simply an extension of the long-standing practice of: A) subcontracting. B) importing. C) exporting. D) postponement. E) e-procurement.

Q: Chip and Dale are brothers who have taken over their fathers business. This type of family business is known as: a. a sibling partnership. b. a franchise. c. a cousin consortium. d. an owner-managed business.

Q: What is the practice of transferring a firm's activities that have traditionally been internal to external suppliers? A) nearshoring B) farshoring C) offshoring D) outsourcing E) backsourcing

Q: Bret first opened his hardware store in 1946. His sons took over when Bret retired, and now Brets grandchildren run the store. This type of family business is known as: a. a sibling partnership. b. a franchise. c. a cousin consortium. d. an owner-managed business.

Q: The term renewal has been created to describe the return of business activity to the originating country.

Q: Husband-wife teams that own a business are popularly referred to as co-preneurs. a. True b. False Indicate the answer choice that best completes the statement or answers the question.

Q: The theory of comparative advantage implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can.

Q: A best practice for the family firm is to promote family members above other, more skilled employees, so that the workers will understand who is in charge. a. True b. False

Q: The theory of competitive advantage implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can.

Q: A responsibility of a junior generation member who desires advancement is to understand that a leadership position in the company is earned and not a given. a. True b. False

Q: Core competencies are good candidates for outsourcing.

Q: Outsourcing is the practice of moving a business process to a foreign country but retaining control of it.

Q: In a family business, the family's primary function is to ensure the profitability and survival of the business. a. True b. False

Q: Outsourcing is the practice of transferring a firm's activities that have traditionally been internal to external suppliers.

Q: A family firms special patterns and beliefs comprise the firms organizational culture. a. True b. False

Q: In the family business, family considerations affect only members of the family. a. True b. False

Q: Perform an SWOT analysis of Boeing's 787 Dreamliner using the information presented in the text.

Q: Starbucks is one of the best known coffeehouse chains in the world. Each store sells a variety of innovative products to complement the array of coffee choices available. However, 75% of current stores are located in the United States and the expensive nature of the coffee leaves Starbucks vulnerable to changes in consumer spending behavior (such as recessions). Recently Starbucks has begun initiatives to sell its specialty coffee beans for home use, presenting a chance for a large increase in revenue and diversification. However, Starbucks faces fierce competition seeking a piece of its lucrative market share and the threat of consumer behavior changes, given its reputation rides on a singular product. Perform an SWOT analysis for Starbucks.

Q: When hiring non-family employees it is only fair to identify the positions, if any, that are reserved for family members. a. True b. False

Q: When a senior generation member is planning for succession, planning should encompass family members, employees and the owners. a. True b. False

Q: What is SWOT analysis? List its four elements and describe its purpose.

Q: A company run by the great grandchildren of the founder would be considered to be managed by a cousin consortium. a. True b. False

Q: Define core competencies.

Q: A family retreat can bring family members closer together as well as strengthen the family business. a. True b. False

Q: An SWOT analysis determines: A) internal strengths and weaknesses and internal opportunities and threats. B) internal strengths and weaknesses and external opportunities and threats. C) external strengths and weaknesses and internal opportunities and threats. D) external strengths and weaknesses and external opportunities and threats. E) internal strengths and opportunities and external weaknesses and threats.

Q: Which of the following statements is most correct? A) KSFs are often necessary, but not sufficient for competitive advantage. B) KSFs are often sufficient, but not necessary for competitive advantage. C) KSFs are neither necessary nor sufficient for competitive advantage. D) KSFs are both necessary and sufficient for competitive advantage. E) None of the above statements is correct.

Q: Nonfamily employees in a family business may be caught in the crossfire between feuding family members. a. True b. False

Q: Key success factors are those activities that are key to achieving competitive advantage.

Q: A family business involving two or more children may experience either sibling cooperation or sibling rivalry. a. True b. False

Q: SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats.

Q: When a parent retires completely and turns the firm over to a son or daughter, the firm ceases to be a family business. a. True b. False

Q: Family retreats are best handled by an outside facilitator, who can help develop an agenda and establish ground rules for discussion. a. True b. False

Q: Key success factors and core competencies are synonyms.

Q: ________ is the stage in product life cycle at which it is a poor time to change quality.

Q: Some family businesses benefit from effective collaboration among brothers and sisters. a. True b. False

Q: Which of the following has made the LEAST progress along its product life cycle? A) drive-through restaurants B) Boeing 787 C) iPods D) 3-D game players E) Xbox 360

Q: One sibling dilemma in a family business has been labeled the predator/parasite conflict. a. True b. False

Q: Which of the following has progressed the FURTHEST along its product life cycle? A) drive-through restaurants B) Boeing 787 C) iPods D) 3-D game players E) Xbox 360

Q: In-laws not working in the family business may have a bad attitude about the company because of only hearing one side of an argument. a. True b. False

Q: Given the position of the 3D printer in the growth stage of its life cycle, which of the following OM Strategy/Issues should the makers of 3D printers be least concerned with at the current time? A) forecasting B) cost cutting C) increasing capacity D) product and process reliability E) enhancing distribution

Q: Bequeathing equal shares of ownership to children in a family business will probably create havoc in the future functioning of the business. a. True b. False

Q: Which of the following OM strategy/issues should a firm with a product in the maturity stage of its life cycle be LEAST concerned with at the present time? A) increase capacity B) long production runs C) standardization D) cost cutting E) fewer rapid product changes

Q: The role of the entrepreneur's spouse in family conflicts can sometimes be described as that of a mediator in business relationships between the entrepreneur and the children. a. True b. False

Q: Cost minimization is an appropriate strategy in which stage of the product life cycle? A) introduction B) growth C) adolescence D) decline E) retirement

Q: While recent surveys show that a majority of owners of family-owned businesses want to keep the business in the family, owners think their main obstacle to doing so is their family's desire to run the business. a. True b. False

Q: Standardization is an appropriate strategy in which stage of the product life cycle? A) introduction B) growth C) maturity D) decline E) retirement

Q: Two major factors involved in grooming a son or daughter to enter the family business are the child's aptitude and the right to choose a career. a. True b. False

Q: Which of the following environmental factors has not contributed to Microsoft's changing strategy? A) Google B) security issues C) faster processors D) the Internet E) global warming

Q: Even if family members lack the capability to run the business, an entrepreneur should always select a successor from this pool of talent. a. True b. False

Q: Which of the following is not part of value-chain analysis? A) product research B) quality management C) supply chain management D) marketing E) human resources

Q: When considering the long term health of a company during the transfer of ownership, tax advantages should be the primary concern. a. True b. False

Q: Value-chain analysis can be used to determine if a business is adding unique value in which of the following areas? A) product research B) human resources C) process innovation D) quality management E) all of the above

Q: A critical part of a family firm transfer from one generation to the next is to discuss decisions with potential heirs as well as family members working in the company. a. True b. False

Q: Explain the role of the entrepreneur's spouse as it affects a family business and show how it can be made most effective if the spouse does not have an active part of daily operations.

Q: Who introduced the concept of value-chain analysis? A) Ford B) Toyota C) Porter D) Smith E) Gates

Q: The relatives who form your world in your childhood

Q: Porter's Five Forces Model contains which of the following? A) immediate rivals B) potential entrants C) customers D) suppliers E) all of the above

Q: A statement of principles intended to guide a family through times of crises and change

Q: Porter's Five Forces Model is used to evaluate competition based on which 5 aspects? A) research and development, cost, legal regulations, suppliers, customers B) immediate rivals, potential entrants, customers, suppliers, and substitute products C) potential entrants, customers, suppliers, legal regulations, and cost D) immediate rivals, potential entrants, cost, substitute products, and legal regulations E) cost, legal regulations, advertising effectiveness, potential entrants, and immediate rivals

Q: Before establishing and implementing strategy, a resources view would ensure that which of the following resources are available? A) financial B) physical C) human D) technological E) all of the above

Q: A venture operated by a founding entrepreneur

Q: Provide an example of an organization that achieves competitive advantage through experience differentiation. Explain.

Q: Passing ownership of a family business to the next generation

Q: Competitive advantage through operations can be achieved by ________, ________, and/or ________.

Q: A business in third and subsequent generations, when children of the siblings take ownership and management positions

Q: A group of people bound by a shared history and a commitment to share a future together

Q: Service organizations can immerse the consumer in the service, or have the consumer become a participant in the service, as they practice ________.

Q: Patterns of behaviors and beliefs that characterize a particular firm

Q: The creation of a unique advantage over competitors is called a(n) ________.