What is an SBU? What criteria may be used to divide businesses into SBUs?
What will be an ideal response?
An SBU is composed of product lines with identifiable independence from other products or product lines in terms of competition, prices, substitutability of product, and impact of product withdrawal. A division or group may also be composed of different product lines, but it differs from an SBU in its thrust. It emphasizes short-term consequences, which are often transient, rather than shifts in the environment, which take place over a period of
time. Further, a group or a division may easily gain so much independence that the chief executive officer and other corporate executives become observers, rather than shapers, of major strategic decisions.
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Modular design attempts to combine the advantages of standardization with ______.
A. economic order quantity B. economies of scale C. customization D. sustainability
What is the central idea of McDonaldization, as termed by George Ritzer?
a. The principles applied to large chains of fast food restaurants being applied to more and more sectors of society – even love and intimacy b. The spread of McDonalds around the world will provide wonderful opportunities for employment c. The Spread of McDonalds around the world will help solve world hunger in developing nations d. Both a and c
Which of the following statements is correct?
A. Stock splits and stock dividends both reduce the market price of a share and the par value of a share. B. Stock splits and stock dividends both reduce the market price of a share, but only stock splits reduce the par value of a share. C. Stock splits and stock dividends both reduce the market price of a share and reduce Retained Earnings. D. Stock splits and stock dividends both reduce the market price of a share, but only stock dividends reduce the par value of a share.
Susan, the CEO of ABC Company, which was involved in the production and sale of hair care products, decided to hire new employees to develop new product lines for a planned expansion into the dog shampoo arena. She was concerned, however, that the employees specializing in canine products might leave at some point, taking company secrets with them for use in competition with ABC. She, therefore,
required that the employees sign contracts containing covenants not to compete. Susan also consulted her in-house counsel, Sam, regarding the effect of some new regulations involving the use of certain chemicals in shampoo and conditioner. Sam told her, however, to ignore the regulations until some type of investigation of the company was started. Sam says that more than likely no one will ever check to see whether or not ABC is in compliance. Susan disagrees with his advice and decides to seek other counsel. Refer to Fact Pattern 1-1 . The use of covenants not to compete involves which of the following forces identified by Michael Porter and referenced in the text? a. Supplier power b. Threat of entry c. Substitution d. Buyer power