Deck 8: Taking Stock: Developing International Strategy

Question 1

What are the pressures for firms to be nationally responsive and for firms to globalize? How do these factors impact multinational strategy choices?

Answer 1

No Answer

Question 2

The __________ will express common goals in a way that succinctly captures management's vision for the firm.

A) SWOT analysis
B) mission statement.
C) strategic plan.
D) internal resource audit.
E) managerial evaluation.

Answer 2

B

Question 3

When designing a fair strategy, managers should do the following except

A) familiarize themselves with local operations.
B) participate in one-way communication when strategy is being developed.
C) be consistent across subsidiaries in making decisions.
D) allow local employees to challenge the headquarters' decisions.
E) give local employees explanations for strategic decisions.

Answer 3

B

Question 4

One reason that Japanese car companies have proven to be such formidable international competitors is their

A) collectivist nature.
B) conflict avoidance strategy.
C) negotiations skills.
D) customer relations.
E) strategic flexibility.

Question 5

After the SWOT analysis, the first step in deciding on an international strategy is

A) to determine the profitability required of the firm in the foreign market.
B) to invest in research and development for new products.
C) to negotiate a joint-venture partnership.
D) to determine the depth and breadth of a firm's international operations.
E) to identify the actual market entry strategy.

Question 6

Considering that water is in short supply in Mali is an example of an environmental analysis with a ____________ perspective.

A) regional.
B) country-specific.
C) multinational.
D) global.
E) value chain.

Question 7

Analyzing a situation from a ______________ perspective involves looking at emerging trends in a particular geographic area.

A) regional.
B) multinational.
C) country-specific.
D) global.
E) transnational.

Question 8

Environmental scanning is

A) the process of accessing the pollution control laws of a foreign market.
B) the process of measuring risk for law suits due to violations of environmental law.
C) assessing the opportunities that make international business promising.
D) assessing threats in foreign markets that could prevent a company from being successful.
E) the process in which information about the internal and external situation facing the firm is collected and evaluated.

Question 9

A multinational that uses a global strategy in an underglobalized industry

A) is likely to fail.
B) must risk a lot to be successful.
C) will have a competitive advantage.
D) should reconsider its strategy.
E) involves all of these.

Question 10

A __________ strategy seeks economies of scale and location advantages, while still providing local products and services.

A) regional.
B) transnational.
C) multidomestic.
D) local.
E) global.

Question 11

The fact that Boeing exports the same planes around the world from its US base is called a __________ strategy.

A) global.
B) local.
C) exporting.
D) regional.
E) multidomestic.

Question 12

A multinational that allows a subsidiary a high degree of independence and provides tailored products or services for the local market they serve is using a __________ strategy.

A) regional.
B) transnational.
C) global.
D) multidomestic.
E) international.

Question 13

Foreign market entry strategies are often driven by

A) the industry in which the firm operates.
B) the market being entered.
C) the firm's strengths and weaknesses.
D) the firm's stage of itnernational development.
E) all of these.

Question 14

Under the theory of national competitive advantage, a nation's ability to offer the inputs (materials, labor, etc.) for competitive production is called

A) firm strategy, structure. and rivalry.
B) demand conditions.
C) related and supporting industries.
D) firm strategy, structure and rivalry.
E) factor conditions.

Question 15

Which of the following is not a condition in the theory of national competitive advantage?

A) factor conditions.
B) location economies.
C) demand conditions.
D) related and supporting industries.
E) firm strategy,structure, and rivalry

Question 16

The theory of national competitive advantage attempts to explain

A) how nations become competitive.
B) why governments are open to globalization.
C) which markets are best for investments.
D) which strategy to use to enter a market.
E) all of these.

Question 17

Which of the following factors favor a multidomestic strategy approach?

A) converging income across industrialized nations.
B) customers demand products tailored to local needs.
C) reduced trade barriers.
D) similarity of lifestyles and tastes.
E) none of the above.

Question 18

Industries that have standardized products or services that can be sold anywhere with relatively few adjustments will probably follow a ____________ strategy.

A) transnational.
B) multidomestic.
C) global.
D) domestic.
E) regional.

Question 19

Discuss location factors that may offer a competitive advantage.

Question 20

Discuss the four basic questions all international strategies should answer.

Question 21

Discuss the variety of problems a multinational company could face if they fail to have a well-designed international strategy.

Question 22

What four organizational features have important implications for a multinational's ability to successfully develop and implement its international strategy?

Question 23

How might a manager's cultural values and prior experiences influence the SWOT analysis?

Question 24

Explain how a company might conduct a SWOT analysis from multinational, regional, and country-specific levels.

Question 25

What are the five steps to developing an international strategy?

Question 26

Describe how culture might impact the international strategy a company chooses.

Question 27

Discuss the factors favoring global versus multidomestic strategies.

Question 28

What are the four factors that influence a nation's competitiveness under the theory of national competitive advantage?

Question 29

Describe how a company might create a distinctive competency by using location economies.

Question 30

Failure to plan a well-designed approach when entering overseas markets can lead to a variety of problems including

A) inability to predict the direction of foreign markets.
B) poor use of resources abroad.
C) underestimating the resources needed to compete abroad.
D) none of these.
E) all of these.

Question 31

The process of offering products or services that customers want is called

A) cost leadership.
B) location economies.
C) advantage strategy.
D) value creation.
E) competitiveness.

Question 32

A computer company is able to combine efficient manufacturing operations and inexpensive labor, allowing them to undercut competitors on price.

A) differentiating.
B) niche strategy.
C) cost leadership.
D) cost effectiveness.
E) core competencies.

Question 33

Skills or abilities that are difficult for competing firms to imitate are called

A) core competencies.
B) economic advantage.
C) location economies.
D) distinctive competency.
E) business-level strategy.

Question 34

According to one definition, nations are internationally competitive if they

A) establish a strategy.
B) produce goods and services that local markets want.
C) keep labor prices low so that firms will continue to invest.
D) provide their citizens with a constant standard of living.
E) produce goods and services that international markets demand.

Question 35

Locating the part of the company's operation in a place that provides the maximum benefit to the value chain is called

A) strategy.
B) geographic designation.
C) location economies.
D) theory of national advantage.
E) market entry.

Question 36

A distinctive competency is

A) superior logistics.
B) the most innovation.
C) the highest quality.
D) all of these.
E) none of these.

Question 37

Firms utilizing a transnational strategy must be able to balance the demands for local responsiveness and global integration.

Question 38

The large US market may be one reason American multinationals have been slower to internationalize than European multinationals.

Question 39

A multidomestic strategy allows more geographic coordination than a regional strategy.

Question 40

Culture has little impact on the ownership positions firms take in their foreign operations.

Question 41

The fifth step in developing an international strategy is developing implementation tactics and plans.

Question 42

Cultural values and previous experiences do not shape managers' scanning tendencies

Question 43

Firms often make their first international entry into a market that is perceived to be culturally similar. This always ensures success.

Question 44

A firm's size can have an impact on the most appropriate international strategy it should use.

Question 45

A multinational's strategy may provide a competitive advantage when its key competitors are relying on a multidomestic approach and the underlying character of the industry favors globalization.

Question 46

A firm's strategy can offer a competitive advantage depending on the nature of the industry and competitor strategies.

Question 47

A transnational strategy is the most clear-cut and straightforward to implement.

Question 48

Having all the characteristics under the theory of competitive advantage ensures a company's success in the market.

Question 49

Moving a company's production to China to take advantage of low-cost labor is an example of a sustainable competitive advantage.

Question 50

Core competencies can be located anywhere in the firm's value chain and provide the basis for international competitiveness.

Question 51

Research suggests that the best strategic planning process is one that combines formal and specific elements with plenty of built-in flexibility and openness to change.

Question 52

A niche strategy focuses on a broad line of products or services relative to competitors

Question 53

Location is no longer a competitive weapon due to advances in communication and technology.

Question 54

Firms that possess a core competency that helps them outperform competitors have developed a

A) market entry strategy.
B) distinctive competency.
C) supporting activities strategy.
D) asset-specific strategy.
E) none of these.

Question 55

A supporting activity in the value chain is

A) research and development.
B) operations.
C) sales and marketing.
D) after-sales service.
E) outbound logistics.

Question 56

The value chain includes

A) human resource management.
B) sales and marketing.
C) operations.
D) inbound logistics.
E) all of these.

Question 57

A Japanese firm that sells a limited line of food products in the US tailored to the specific tastes of Japanese-American consumers is an example of _____________ value creation strategy.

A) a cost leadership.
B) a differentiation.
C) an international.
D) a niche.
E) a high-context.

Question 58

Providing a unique or superior product for which customers are willing to pay is an example of _______________ value creation strategy.

A) a niche.
B) a cost leadership.
C) a differentiating.
D) an international.
E) a general.

Question 59

An international strategy should

A) prevent the failure of a foreign firm.
B) define specific sales goals.
C) identify what products, where and how they will be made, and the resources necessary to compete.
D) focus primarily on cost leadership.
E) only involve top management.

Question 60

A strategy for pursuing value creation by offering products or services that customers want is called

A) location determination.
B) differentiating.
C) cross cultural understanding.
D) product negotiation.
E) imitation.

Question 61

The trading company that helps market all of a Japanese keiretsu's products to foreign markets is called

A) sogo shosa.
B) nichitzu.
C) guanxi.
D) a bosu.
E) none of these.

Question 62

The large, interrelated family of companies common in Japan is called

A) sogo shosa
B) keiretsu.
C) nichitzu.
D) guanxi.
E) bosu.

Question 63

A lack of international strategic management can lead to

A) an inability to predict the direction of foreign markets.
B) a poor use of resources abroad.
C) underestimation of the resources needed to compete abroad.
D) failure to anticipate operational problems in foreign environments
E) all of these.

Question 64

The process of developing international goals and then implementing the approach to international business that a firm has adopted is called

A) international strategy formulation.
B) value chain management.
C) primary activity identification.
D) competitive advantages.
E) niche strategy.

Question 65

A __________ strategy seeks economies of scale and location advantages, while still providing local products and services.

A) regional.
B) transnational.
C) multidomestic.
D) local.
E) global.

Question 66

A multinational that allows a subsidiary a high degree of independence and provides tailored products or services for the local market they serve is using a __________ strategy.

A) regional.
B) transnational.
C) global.
D) multidomestic.
E) international.

Question 67

Which of the following is not a condition in the theory of national competitive advantage?

A) factor conditions.
B) location economies.
C) demand conditions.
D) related and supporting industries.
E) firm strategy,structure, and rivalry

Question 68

Which of the following is not a condition in the theory of national competitive advantage?

Question 69

Almost all companies enter foreign markets without a clear, well-defined approach.