Deck 2: Global Leaders Learning in Response to Change

Question 1

Reactive change conditions include:

A)Realization of the need to quickly change the strategy because company perfor-mance is rapidly sinking and it is a crisis.
B)Management believes it must always monitor changes in the competitive envi-ronment and be ready for the need to react.
C)Firm performance is still rising, but more slowly, and there may be a need to change strategies in anticipation of worse future results.
D)Firm performance is starting to tail down slowly but there is no crisis yet.

Answer 1

D

Question 2

Companies seek to limit risk upon entering a new and uncertain foreign market for the first time by choosing X as their initial entry strategy.

A)X = Acquisition of an existing local company.
B)X = Licensing their products or services to an existing local company.
C)X = Doing a joint venture with a local company to learn from them.
D)X = An export strategy such as direct mail or a website.

Answer 2

D

Question 3

MNEs doing business in foreign markets generally use either a global efficiency or local responsiveness strategy depending on whether customers around the world use the same purchasing criteria or not.In which of the following industries would a global efficiency strategy be the best choice?

A)Cosmetics
B)Smartphones
C)Dairy
D)LNG (liquid natural gas).

Answer 3

B

Question 4

MNEs carefully select joint venture partners by considering:

A)Compatibility of asymmetrical skills;
B)Convergence of goals;
C)Personal chemistry between representatives on both sides;
D)All of the above;
E)(a) and (b) only.

Question 5

If an MNE's mindset is that only skilled local managers and employees can truly under-stand how to handle the cultural milieu in that local market, this represents a:

A)Geocentric mindset;
B)Polycentric mindset;
C)Ethnocentric mindset;
D)Concern for effective intercultural communications.

Question 6

Keirsey identified four individual learning styles that were predominantly characteristic of specific national cultures.Which of the four was the most supportive of stability and the status quo and least responsive to changing conditions?

A)Logistical (SJ)
B)Tactical (SP)
C)Strategic (NT)
D)Diplomatic (NF).