Final strat MC

if Amazon must enhance a global cost reduction or global efficiency but does not have to respond to the local preferences/culture of the Asian countries (i.e. Japan and China) it will move into, then Amazon should pursue which strategy for moving into this countries

global (standardization)

Amazon uses Porter's Diamond to assess its prospective market entry in India. Which of the following is NOT part of Porter's Diamond

substitute conditions

which mode of entry into the India market will require the highest level of investment but yield the most control for Amazon

acquisition

Amazon is evaluating doing business in China. Which mode of entry into the Chinese market would present the least financial risk, but the least control

strategic alliance

regarding risks of doing business internationally, which of the following is NOT a typical risk that Amazon will face when entering the Chinese market

ecological risk

Amazon decides to implement a matrix organization. What would be a complicating factor with this organizational structure

some people would report to two bosses

Amazon, JPMorgan Chase, and Berkshire Hathaway decided to partner and form a new company called Haven. Haven will provide access to primary care, cheap prescription drugs, and simpler insurance coverage. This is a/an

joint venture

In 1998, Amazon founder and CEO Jeff Bezos had a net worth of $1.6 billion. At the same time, shareholders were dissatisfied with Amazon's lack of profitability. Some could claim that Bezos pursued his self interest instead of the company's and its stockholders' best interest. If true, this would be an example of

principal agent problem

Amazon has greatly diversified over the years, its products ranging from books to food and diapers to AWS (Amazon Web Services). If Amazon experiences a diversification discount, this means investors believe that

Amazon's stock price is less than the sum of stock prices of its business units if their stocks were traded independently

Amazon could backward integrate by

acquiring Ingram Book Group LLC, a wholesaler of books

at the time of the case, Jeff Bezos is CEO of Amazon. To exercise corporate governance, Amazon Board of Directors should

closely monitor Bezos to reduce the potential principal agent problem

referring to exhibit 1 (digital sales worldwide, by retailer) to the extent that economies of scale exist in online retail, which of the following is most likely true

Amazon is more likely to benefit from economies of scale than Kohl's

Amazon's leverage ratios total liabilities/total asset assets changed from 2.14 in 2013 to 2.41 in 2016. One can conclude that the debt situation for Amazon is

getting worse because the ratio is increasing

assume that the revenue (r) distribution and the corresponding profit (R) margin of Amazon's all three business segments are as follows:
North America (R = 60%, P =54%)
International (R = 27%, P = 5%)
Amazon Web Services (R = 13%, P = 41%) Solely based on the revenue and profit data provided above, if Amazon were to keep only one of its product lines, which one is the best one to keep?

North America

the inventory turnover ratio (COGS/Avg. inventory) of Amazon from 2012 (ration = 1.14) to 2016 (ratio = 1.24) is

improving, more efficient in inventory management

Amazon, say, creates an organizational structure in which employees are assigned to departments based on product areas and/or geographic regions. This organization is an example of

multi divisional structure

which of the following best reflects a voluntary arrangement between Amazon and Treehouse Foods, the nation's number one private food company, to share knowledge, resources, and capabilities to develop food-related processes, products or services

strategic alliance

Amazon lacks capabilities in food processing. If Amazon were to acquire TreeHouse Foods Inc. (the food product manufacturer), which of the following is false

to diversify through forward integration

given its entry into offline retail, Amazon attempts to keep an eye on Walmart, which has a similar line of products in online retail. If Amazon launches Amazon Go store in Seattle right next to the Walmart store, this would be an example of

co-location

Amazon introduced Amazon Web Services Inc. which offered inexpensive, reliable, and scalable cloud computing services, including Amazon Mechanical Turk, a crowdsourcing internet marketplace that enabled individuals and businesses to coordinate the use of human intelligence. But so far only a few enthusiasts have purchased the cloud computing services, a technological innovation. Getting these innovation computing services to catch on with more people would be an example of

crossing the chasm

how can Amazon prevent other companies from imitating its innovative product cloud computing services

patent the technology

a disadvantage for Amazon being the first mover in cloud computing services is

a competitor could slightly alter and imitate the technology

the following statements are drawn from the 2020 Amazon Sustainability Report: xyz Using what you know about the case and the statement above, what can we ascertain about Amazon's social performance

Amazon is taking a stakeholder approach to social responsibility

from the corporate governance standpoint, which of the following groups should be responsible for approving the compensation package for Jeff Bezos, the CEO of Amazon in 2020

board of directors

regarding Amazon's corporate social responsibility (CSR) strategy, the company is committed to the triple bottom line approach. Which of the following represents the triple bottom line approach

planet, profit, people

Amazon manages a broad portfolio of different businesses. Which of the following is a systematic approach to evaluate Amazon's business portfolio

Porter's Diamond

Amazon is committed to an ethical business model and being a good corporate citizen. Which of the following is NOT an appropriate approach to ensure ethical behavior within Amazon

corporate culture that emphasizes only financial results and performance as the criteria for employees career growth

Amazon is examining diversifying into a new industry. The proposed diversification is likelier to succeed when

the new industry is very attractive, the cost of entry is low, and the diversification passes the better

which organizational structure is defined by the following characteristics:

-works best in knowledge industries
-are characterized by the frequent use of cross functional teams
-decision making is highly decentralized
-relies heavily on informal linkages
-normally uses a free rein leadership style

Matrix Structure

when Amazon acquired GoodReads, an online social networking site for sharing books and reviews, this is an example of

vertical integration

What generic business-level strategy does Amazon Go pursue?

Broad differentiation, by offering a unique and frictionless retail experience to a wide customer base

How should Amazon Go’s cashier-less technology initiative be interpreted from a technology strategy perspective?

Technology enables a differentiated customer experience that competitors struggle to replicate

Which entry mode is most consistent with Amazon’s physical retail expansion approach?

Entering and scaling through acquisitions and wholly owned operations to maintain control over technology and customer experience

Amazon’s leverage ratio increased from 2.14 in 2013 to 2.41 in 2016. What can one conclude?

Getting worse because the ratio is increasing

Which best describes the ESG relevance of Amazon encouraging delivery partners to transition to electric vehicles?

It supports Amazon’s environmental objectives by reducing greenhouse gas emissions across its value chain

What is the primary purpose of Amazon’s stage-gate innovation process?

Systematically evaluate innovation projects at key milestones and allocate resources based on

performance

Which entry mode would provide Amazon with the highest level of control in India?

Acquisition of an existing Indian e-commerce firm

Amazon’s retail expansion could be considered a blue ocean move if

It creates uncontested market space through new customer value propositions

Amazon’s collaboration with external partners for logistics, cloud infrastructure, and technology development is best characterized as

An open innovation approach that actively integrates external knowledge and partnerships into the firm’s innovation process

Under the CAGE framework, Amazon Go would face the greatest challenge in markets with

Strong local retail traditions and regulations

How could AWS sustain competitive advantage?

Increasing customer switching costs through deep integration and proprietary services

Which best reflects the logic of the triple bottom line approach?

Balancing financial performance with environmental stewardship and social responsibility across the firm’s operations and value chain

Amazon and TreeHouse Foods jointly develop private-label products. How should this arrangement be classified?

Strategic Alliance

What challenge may Amazon face scaling Amazon Go into physical retail?

Difficulty achieving cost efficiencies comparable to its highly optimized e

Which best reflects a three-horizons innovation strategy?

Allocating resources across incremental improvements to core operations, expansion into adjacent

opportunities, and exploration of longer-term disruptive innovations

Which KPI best captures Amazon Go’s success at the store level?

Store-level profitability combined with customer throughput and transaction speed

Which strategic choice would most undermine Amazon Go’s business-level strategy?

Reducing investment in automation to lower costs, even if it increases checkout time

If Bezos pursued self-interest instead of shareholders’ interests, this would be an example of

Principal-Agent problem

If Amazon seeks global efficiency and cost reduction without local responsiveness, which strategy should it pursue?

Global (Standardization)

Which global strategy best reflects leveraging a global platform while adapting to local market conditions?

Transnational strategy