Deck 10: Globalization of Services

Question 1

Network development is a consideration in the decision to plan a multinational service.

Answer 1

True

Question 2

Rapid growth with investment capital from franchisers is the main objective of franchising.

Answer 2

False

Question 3

The famous Mayo clinic in Minneapolis is an example of a firm that employs a clustered service strategy.

Answer 3

True

Question 4

One of the advantages of franchising is that a firm can grow without the cost of developing key managers.

Question 5

A franchise is a low risk investment, because the franchiser ensures success.

Question 6

A diversified network is not feasible with complex services.

Question 7

Consumers develop expectations for a low divergent set of products and services from franchises.

Question 8

Concentric diversification is a means of ensuring rapid market growth.

Question 9

When a firm offers multiple services at a single location, it is using a clustered service strategy.

Question 10

A company that adopts the concept of importing customers usually is following a multiservice single-site strategy.

Question 11

The start-up phase for a franchise business is shorter than that for an independent business, because of the existence of a well-known brand.

Question 12

Hedging is a strategy adopted by multinational corporations to neutralize their exposure to fluctuating currency exchange rates.

Question 13

A family restaurant is an example of a focused service.

Question 14

Franchising usually is used when developing a focused network.

Question 15

The disadvantage of concentric diversification is that it does not allow for economies of scale.

Question 16

A diversified network is a situation where many services are offered at a single location.

Question 17

From the standpoint of the franchiser, decision-making autonomy is not a benefit of franchising.

Question 18

American Express is an example of a firm that has a multisite, multiservice expansion strategy.

Question 19

Communication is included in the five Cs of strategic planning.

Question 20

Following its initial success, the Kinko copying service employed a diversified network expansion strategy.

Question 21

McDonald's includes beer on its menu for German franchises. This is an example of ________.

A) cultural transferability
B) network development
C) host government policy
D) labor norms

Question 22

A relatively recent concept that refers to the movement of new products through existing distribution channels is called ________.

A) economies of scale
B) economies of scope
C) diversification
D) micromarketing

Question 23

Multinational expansion by a service firm is ________.

A) often driven by customer demand
B) vital for growth
C) not recommended for labor intensive operations
D) primarily a defense strategy

Question 24

In what cell of the matrix below would you place the fast food chain McDonald's?

A) a
B) b
C) c
D) d

Question 25

Which of the following is not a benefit to the franchisee of a franchise?

A) Brand name.
B) National advertising.
C) Economics of scale.
D) Autonomy.

Question 26

'Hiring local personnel' addresses the labor intensity factor in the ________ global service strategy.

A) multicountry expansion
B) following your customers
C) service offshoring
D) beating the clock

Question 27

American Express, which offers financial and travel services on a global basis, is an example of a ________

A) focused service
B) focused network
C) clustered service
D) diversified network

Question 28

All of the following are benefits of a multisite type of expansion except ________.

A) ability to reach a mass market quickly
B) reduced financial risk from local economic downturn
C) preemption of competitors by capturing premium locations
D) retention of control

Question 29

'Develop foreign customers' is a consideration for the global service strategy of 'following your customers'. The relevant globalization factor is ________.

A) cultural adoption
B) customer contact
C) complexity
D) customization

Question 30

A community hospital is an example of a ________.

A) diversified network
B) focused network
C) focused service
D) clustered service

Question 31

The 'cookie-cutter' concept best describes which of the following expansion strategies?

A) Focused service.
B) Clustered service.
C) Focused network.
D) Diversified network.

Question 32

USAA, which provides financial services to military officers by mail, telephone, and Internet, is an example of a ________.

A) focused service
B) focused network
C) clustered service
D) diversified network

Question 33

What is the principal reason that service trade receives low priority at WTO meetings?

A) Controlling service trade is difficult.
B) Governments are more concerned with trade in manufactured products.
C) Service trade is an insignificant factor in international trade.
D) Tariffs cannot be applied to services.

Question 34

Global service strategies include all but one of the following: ________.

A) exporting services
B) following your customers
C) beating-the-clock
D) service offshoring

Question 35

When franchising which one of the following is not a benefit to the franchiser?

A) Proven business.
B) Rapid expansion.
C) Right to dictate conditions.
D) Fees from the franchisee.

Question 36

Which of the following is not one of the major considerations in planning multinational operations?

A) Cultural transferability.
B) Technological compatibility.
C) Network development.
D) Host government policy.

Question 37

Which of the following is not one of Kenichi Ohmae's five Cs of strategic planning in a borderless world economy?

A) Competitors.
B) Creativity.
C) Company.
D) Country.

Question 38

When franchising, which of the following is not an issue for the franchisee?

A) Establishing a brand.
B) Franchise contract.
C) Degree of discretion
D) Conflict resolution.

Question 39

Mayo Clinic is a service firm that would fall under which of the following categories?

A) Single location and single service.
B) Single location and multiservice.
C) Multisite and single service.
D) Multisite and multiservice.

Question 40

A 5:00 p.m. pickup for FedEx was not workable in Spain owing to extended business hours. This is an example of cultural adoption under which of the following global service strategies?

A) Beating the clock.
B) Service offshoring.
C) Following your customers.
D) Multicountry expansion.