Deck 10: Global Strategic Management and the Future

Question 1

The primary reason to make foreign investments includes all of the following except _____.

A) efficiency
B) to sell products no longer viable in the United States
C) risk reduction
D) competitive countermoves
E) entry into new markets

Answer 1

entry into new markets

Question 2

The term Triad regions refers to _____.

A) United States, Mexico, Canada
B) North America, Europe, Pacific Rim
C) North America, Central America, South America
D) United States, Russia, China
E) countries that belong to the European Union

Answer 2

North America, Europe, Pacific Rim

Question 3

Forces at work to maintain the status quo are called _____.

A) structural inertia
B) international activities
C) global integration
D) the domestic stage
E) international expansion

Answer 3

structural inertia

Question 4

The most important factor(s) in selecting international franchise partners is/are _____.

A) financial strength
B) well established
C) operational experience
D) all of the above
E) none of the most important factors are listed in a-c

Question 5

The forces that encourage structural inertia include all of the following except _____.

A) structures
B) culture
C) barriers to entry and exit
D) internal politics
E) restructuring

Question 6

Stakeholder analysis internationally, when compared to that domestically, is _____.

A) the same
B) much easier
C) much more difficult
D) a very different concept and not comparable
E) not done internationally

Question 7

The country in which a manager is expected by most employees to have the exact answer to a question raised by a subordinate is _____.

A) the United States
B) Denmark
C) Switzerland
D) Italy
E) Japan

Question 8

The parts of the model in Porter's Competitive Advantage of Nations include all of the following except _____.

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

Question 9

In Porter's Competitive Advantage of Nations, the most important demand condition is _____.

A) the discriminating nature of the purchasing decisions for a given product by consumers in that nation
B) the market size for a given product in that nation
C) the total market size for a given product around the world
D) whether or not economies of scale will be obtained by manufacturers of that product in that nation
E) whether or not that given industry is one which will attract the most talented workers in the nation

Question 10

In Porter's Competitive Advantage of Nations, the concept of factor conditions is principally concerned with _____.

A) cheap labor
B) demand for a given product around the world
C) how much land for agriculture is available in the nation
D) laborers with specific skills or training
E) relatedness between various industries in the nation

Question 11

When comparing Porter's Competitive Advantage of Nations to his industry Five Forces model, it is noticeable that _____.

A) the models are very similar
B) they both emphasize the power of buyers
C) they view the role of competition differently
D) both emphasize the role of the individual
E) both view negatively the role of related industries

Question 12

An international subsidiary whose responsibility is described as a global mandate will_____.

A) have responsibility for an entire global business and not just one part of the value chain
B) belong to an interdependent network of subsidiaries, often in a production role
C) have very well-defined roles to play and little interdependence, i.e., a single country focus
D) have a commitment to expand the firm's products in markets around the world
E) have a budget to advertise the firm's product around the world

Question 13

A firm pursuing an unrelated diversification strategy will expect _____.

A) to fully integrate subsidiaries with each other
B) to operate subsidiaries largely independent of each other
C) to rely on strategic controls
D) to emphasize economies of scope
E) subsidiaries to be very small

Question 14

Global strategies _____.

A) focus on the satisfaction of segmented customer needs
B) apply only to consumer goods
C) entail handling product design, assembly, and marketing on a country by country basis
D) are similar to the best cost strategy pursued in a domestic market
E) produce one product design and market it similarly throughout the world

Question 15

A transnational product/market strategy seeks _____.

A) to focus on the satisfaction of segmented customer needs
B) to apply only to consumer goods
C) produce one product design and market it similarly throughout the world
D) to ensure that product design, assembly, and marketing are handled on a country-by-country basis
E) both global efficiency and local responsiveness

Question 16

For a global strategy to be appropriate, the following conditions must be present except _____.

A) there is a global market segment for a product or service
B) there are economic efficiencies associated with a global strategy
C) there are no external constraints such as government regulations to prevent a global strategy from being implemented
D) there are no absolute internal constraints
E) there are strong management teams in each country who can make the necessary decisions

Question 17

Licensing involves _____.

A) transferring goods to other countries for sale through wholesalers or a foreign company
B) selling the right to produce and/or sell a brand name product in a foreign market
C) a cooperative agreement among two or more companies to pursue common business objectives
D) starting a venture from scratch
E) purchasing a foreign firm or the foreign subsidiary of foreign or domestic firms

Question 18

Franchising involves _____.

A) transferring goods to other countries for sale through wholesalers or a foreign company
B) a cooperative agreement among two or more companies to pursue common business objectives
C) starting a venture from scratch
D) purchasing a foreign firm or the foreign subsidiary of foreign or domestic firms
E) a firm buying the legal right to use the name and operating methods of a foreign firm in its home country

Question 19

The options for improving competitive position vis-à-vis cost leadership through a global strategy include the following except _____.

A) cost reductions through foreign assembly or manufacturing
B) forcing an open, learning mindset
C) global sourcing
D) expanding the market leading to economies of scale
E) transfer of technological know-how through a joint venture (learning from competitors)

Question 20

In developing nations _____.

A) related diversified firms perform best
B) similar results for highly diversified firms are found relative to the performance of diversified firms in mature markets
C) similar results for only slightly diversified firms are found relative to the performance of diversified firms in mature markets
D) conglomerate firms could be expected to perform better than in mature economies
E) owner/manager firms perform best

Question 21

In developing nations _____.

A) first movers may be able to obtain stakeholder-based advantages such as contractual and informational relationships with host governments and organizations
B) second movers may be able to obtain stakeholder-based advantages such as contractual and informational relationships with host governments and organizations
C) late movers may be able to obtain stakeholder-based advantages such as contractual and informational relationships with host governments and organizations
D) there is no opportunity to build stakeholder-based advantages such as contractual and informational relationships with host governments and organizations
E) there is no advantage from building contractual and informational relationships with host governments and organizations

Question 22

The world's growth center for the twenty-first century is predicted to shift to _____.

A) the European Union
B) the United States
C) Asia
D) Latin America
E) the newly independent states of the former Soviet Union and Russia

Question 23

Bank centered economies are characterized by _____.

A) capital markets in which neither equity nor debt predominate
B) banks and other financial institutions playing the most significant role in the external capital market
C) families holding extensive stock in firms
D) groups of companies managing the use of internal capital as a replacement for external capital markets
E) government domination with poorly developed financial capital markets

Question 24

An example of a family centered economy is seen in _____.

A) the United Kingdom
B) Korea
C) China
D) Germany
E) France

Question 25

What are some of the questions that a firm should ask about a potential market before entering that market?

Question 26

Describe the model developed in Porter's Competitive Advantage of Nations.

Question 27

Discuss why a conglomerate may be a better organizational form in developing nations than it is in mature markets.

Question 28

Discuss the advice offered on how to become ready for what lies ahead in the hospitality industry.