Deck 8: Strategy Formulation and Implementation

Question 1

Firms that have done well domestically with a product usually have done so because the competition is effective.

Answer 1

False

Question 2

Many MNCs are convinced that strategic planning is critical to their success and these efforts are being conducted both at the home office and in the subsidiaries.

Answer 2

True

Question 3

International strategies are characterized by increased international standardization of products and services.

Answer 3

True

Question 4

Strategic management is required to keep track of increasingly diversified operations in a continuously changing international environment.

Question 5

MNCs that focus on the political imperative employ a worldwide strategy based on cost leadership, differentiation and segmentation.

Question 6

The term "born global" is used for firms that engage in significant international activity a short time after being established.

Question 7

External resource analysis helps the firm to evaluate its current financial strengths and weaknesses.

Question 8

In choosing a location, today's MNC has two primary considerations: the country and the specific locale within the chosen country.

Question 9

TQM covers the full gamut, from strategy formulation to implementation.

Question 10

In selecting a geographic location to operate, Japanese firms favor heavily unionized areas.

Question 11

In emerging economies undergoing rapid changes such as privatization, governments have generally been apprehensive and uncooperative with MNCs.

Question 12

National responsiveness is the need to understand different consumer tastes in segmented regional markets and respond to different national standards and regulations imposed by autonomous agencies.

Question 13

An economic imperative approach to strategic planning is used when a product is regarded as a generic good and therefore does not have to be sold based on name brand.

Question 14

There is definitive evidence that strategic planning in the international arena always results in higher profitability.

Question 15

Strategy formulation attempts to provide management with accurate forecasts of trends that relate to external changes in geographic areas where the firm is currently doing business.

Question 16

When the need for national responsiveness is high and the need for global integration is high, a multi-domestic strategy is appropriate.

Question 17

When the need for national responsiveness is low and the need for global integration is high, a global strategy is appropriate.

Question 18

To a growing extent, the customers of MNCs have heterogeneous tastes and this has helped to spread international consumerism.

Question 19

A bureaucratic coordination approach to formulation and implementation is one in which the MNC makes strategic decisions based on the merits of the individual situation.

Question 20

Profitability and marketing goals almost always dominate the strategic plans of today's multinational corporations.

Question 21

A worldwide strategy based on cost leadership, differentiation and segmentation is referred to as the:

A)Economic imperative
B)Political imperative
C)Quality imperative
D)Administrative coordination strategy

Question 22

Typically, MNCs utilizing this approach to strategic planning use a country-centered or multi-domestic strategy.

A)Quality imperative
B)Administrative coordination
C)Political imperative
D)Economic imperative

Question 23

All of the following are characteristics of TQM except:

A)Quality is operationalized by meeting or exceeding customer expectations
B)The quality strategy is formulated by the front-line employees and is diffused throughout the organization
C)Everyone from top executives to hourly employees operates under a TQM strategy of delivering quality products/services to internal and external customers
D)TQM techniques range from traditional inspection and statistical quality control to cutting-edge human resource management techniques

Question 24

The products sold by MNCs pursuing this approach often have a large portion of their value added in the downstream activities of the value chain.

A)Political imperative
B)Cost imperative
C)Quality imperative
D)Economic imperative

Question 25

MNCs using the _____ approach to strategic planning are country-responsive; their approach is designed to protect local market niches.

A)Administrative coordination strategy
B)Economic imperative
C)Quality imperative
D)Political imperative

Question 26

This strategy is appropriate when the need for national responsiveness is low and the need for globalization integration is high.

A)International
B)Multi-domestic
C)Global
D)Transnational

Question 27

Which foreign marketing strategy is characterized by niche companies that adapt their products to satisfy the high demands of differentiation and ignore economies of scale because integration is not very important?

A)Multi-domestic
B)International
C)Globalization
D)Transnational

Question 28

The approach to strategic formulation and implementation utilizing strategies of TQM to meet or exceed customers' expectations and continuously improve products and/or services is referred to as the:

A)Value-added imperative
B)Quality imperative
C)Political imperative
D)Economic imperative

Question 29

_____ is the production and distribution of products and services of a homogeneous type and quality on a worldwide basis.

A)Global integration
B)Nationalism
C)Cross-border integration
D)Market standardization

Question 30

This approach to formulation and implementation is one in which the MNC makes strategic decisions based on the merits of the individual situation rather than using a predetermined economic or political strategy.

A)Administrative coordination
B)Bureaucratic coordination
C)Value-added
D)Functional

Question 31

The process of determining an organization's basic mission and long-term objectives and then implementing a plan of action for attaining these goals is:

A)Strategic management
B)Tactical management
C)Contingency management
D)Functional management

Question 32

These individuals are the key to stimulating profit growth within a company.

A)Supervisors
B)Middle managers
C)First-line managers
D)Top managers

Question 33

According to the text, strategic planning helps MNCs to do all of the following except:

A)Coordinate and monitor its far-flung operations
B)Deal with political risks
C)Determine performance
D)Get higher profitability

Question 34

When the need for national responsiveness is low and the need for global integration is also low, which of the following strategies would be appropriate?

A)Globalization
B)Transnational
C)International
D)Multi-domestic

Question 35

Ford Motor's strategic plan in Thailand is based on:

A)Offering the right price and product
B)Offering the right combination of price and financing to a carefully identified market segment
C)Offering the right combination of price and financing to all market segments
D)Offering the right financing only

Question 36

Honda and General Motors have both built plants in Thailand to take advantage of

A)Demand and low delivery costs
B)Strategic pricing
C)New technologies and low wages
D)Tax incentives and demand

Question 37

When the need for national responsiveness is high and the need for global integration is low, a(n) _____ strategy is appropriate.

A)Transnational
B)Multi-domestic
C)International
D)Globalization

Question 38

Companies that pursue this strategy typically sell products for which a large portion of value is added in the upstream activities of the industry's value chain.

A)Quality imperative
B)Political imperative
C)Economic imperative
D)Administrative coordination

Question 39

When the need for national responsiveness is high and the need for global integration is also high, this strategy is appropriate.

A)Transnational
B)Globalization
C)International
D)Multi-domestic

Question 40

The need to understand the different consumer tastes in segmented regional markets and respond to different national standards and regulations imposed by autonomous governments and agencies is:

A)Global integration
B)International entrepreneurship
C)National responsiveness
D)Statutory compliance

Question 41

This analysis identifies the key factors for success that will dictate how well the firm is likely to do.

A)External
B)Internal
C)Competitive
D)Market

Question 42

A multinational firm's choice of a locale is affected by all of the following factors except:

A)Desirability of the location for employees
B)The number of market shares invested in their home country
C)Proximity to competitors
D)Nature of the workforce

Question 43

The process of providing goods and services in accord with a plan of action is:

A)Strategy implementation
B)Strategy formulation
C)Strategy control
D)Strategy contingency

Question 44

A primary consideration for an MNC in investing in a foreign country would be a decision based on:

A)Corporate culture
B)Business ethics
C)Specific locale
D)Operating norms

Question 45

According to the text, which of the following sets of goals almost always dominate the strategic plans of today's MNCs?

A)Quality and cost control
B)Finance and operations
C)Accounting and R&D
D)Profitability and marketing

Question 46

Opportunities to increase market share through increased sales of goods and services result in MNCs investing into:

A)Advanced industrialized countries
B)Bribes and kickbacks
C)Corporate cultures
D)Syndicate operations

Question 47

One of the most important foci in _____ is the market and includes the role of all potential competitors and the relationships surrounding those competitors, such as affiliation with one another or the connection between the company and its customers and suppliers.

A)Strategy implementation
B)Goal formulation
C)Environmental scanning
D)Internal resource analysis

Question 48

An MNC must consider all of the following general areas in strategy implementation except:

A)Management must implement functional strategies in areas such as marketing
B)It should consider investing only in advanced nations
C)It must carry out entry and ownership strategies
D)It must decide where to locate operations

Question 49

Which of the following strategies has the highest need for integration and differentiation?

A)National responsiveness
B)Globalization
C)International
D)Transnational

Question 50

If a firm operates production plants in different countries but makes no attempt to integrate its overall operations, the company is known as a:

A)Multi-domestic
B)Global
C)Transnational
D)International

Question 51

To respond to risks in emerging markets, MNCs must do all of the following except:

A)Limiting equity investments
B)Avoiding joint ventures
C)Collaborating with a local partner
D)Encouraging shared ownership structures

Question 52

For products like computers, Japanese firms:

A)Move from their home market directly into fully developed countries and then on to the newly developing nations
B)Move from their home market directly into developing nations and then on to developed markets
C)Go only to developed countries to market products
D)Go only to developing countries to market products

Question 53

The implementation of a marketing strategy in international areas is built around the well-known "four Ps".These are:

A)Place of origin, price, productive life and product
B)Promotion, price, production method and productive life
C)Product, price, promotion and place
D)Place of origin, production method, price and people

Question 54

_____ attempts to provide management with accurate forecasts of trends that relate to external changes in geographic areas where the firm is currently doing business or considering setting up operations.

A)Environmental scanning
B)Functional scanning
C)Tactical scanning
D)Operational scanning

Question 55

All of the following act as disincentives for MNCs except:

A)Restrictions on profit repatriation
B)Controls on the transfer of technology
C)Export maximums for generating foreign currency
D)Limits on local market growth

Question 56

The strategic planning process that helps a firm evaluate its current managerial, technical, material and financial strengths and weaknesses is:

A)Environmental scanning
B)Operational analysis
C)Internal resource analysis
D)Tactical analysis

Question 57

A key success factor is a factor that is necessary for a firm to compete effectively in a(n):

A)International market
B)Highly-restricted market
C)Market niche
D)Broad market domain

Question 58

MNCs have found that whether they are exporting or producing the goods locally in the host country, consideration of worldwide production is important.All of the following are factors to be taken into consideration except:

A)Goods may be produced in foreign countries for export to other nations
B)A plant will specialize in a particular product and export it to all the MNC's markets
C)A plant will produce goods for many locales
D)A plant will produce one or more components that are shipped to a larger network of assembly plants

Question 59

Once strategic goals are set, an MNC will develop specific _____ goals and controls, usually through a two-way process at the subsidiary or affiliate level.

A)Bureaucratic
B)Operational
C)Strategic
D)Contingency

Question 60

When market liberalization is delayed:

A)It gives first movers a significant advantage over later entrants
B)First movers get clear, significant advantages in transitional markets
C)It gives later entrants a significant advantage over first movers
D)Substantial risks to premature entry are removed

Question 61

Identify the four basic strategies that MNCs use and the situations in which they are used.

Question 62

All of the following are challenges firms could face in the implementation of a BOP strategy except:

A)Offering affordable goods
B)Generating awareness regarding the product
C)Nonexistent distribution channels
D)Coordinating administrative functions

Question 63

Which of the following is likely to be the most effective strategic approach for the "base of the pyramid"?

A)Incremental adaptation of existing technologies and products
B)Establishing partnerships with central governments of emerging economies
C)Leapfrog technologies including disruptive technologies
D)Large-scale strategies

Question 64

What is the purpose of internal resource analysis? In the context of internal resource analysis, what is a "key success factor"?

Question 65

All of the following are features of a "born-global" firm except:

A)They export products to close markets
B)They employ strategies like unique-products development
C)They indulge in significant international activity a short time after being established
D)They seek joint ventures or acquisitions as a method to expand internationally

Question 66

Which of the following findings regarding BOP strategy has significant implications for the globalization-national responsiveness framework?

A)Building relationships directly and at the local level contributes to the reputation and fosters the trust necessary to overcome the lack of formal institutions such as the rule of law
B)The BOP may be an ideal environment for incubating new, leapfrog technologies
C)These business models may travel profitably to higher-income markets because adding features to a low-cost model may be easier than removing features from high-cost models
D)It brings focus to those who are too poor to be viable customers for multinational companies

Question 67

International management activities of entrepreneurial and new-venture firms have been made possible by all of the following except:

A)Customized, old access channels
B)Advances in telecommunication
C)Greater efficiencies and lower costs in shipping
D)Allowing firms to access international customers

Question 68

Within the context of international management, the "base of the pyramid" refers to:

A)Front-line employees at the bottom of the organizational hierarchy
B)Younger generations of the population pyramid
C)Understanding the foundational issues in international management
D)Potential low-income customers at the bottom of the economic pyramid

Question 69

What is the "BOP" and why is this strategy challenging to implement?

Question 70

The technological learning gained from varied international environments:

A)Enhances efforts to integrate knowledge throughout a firm
B)Shows a fall in venture performance
C)Leads to minimal diversity of national environments
D)Has no effect on cross-functional teams

Question 71

Firms that internationalize after being domestically established have to overcome all of the following barriers except:

A)Their domestic orientation
B)Their internal domestic political ties
C)Their domestic decision-making inertia
D)Their anti-risk seeking behavior

Question 72

Which of the following is not an advantage of first-mover strategies?

A)Capturing learning effects important for increasing market share
B)Achieving scale economies
C)Development of alliances with the most attractive local partners
D)Capitalizing on well-established legal, institutional and political frameworks

Question 73

Firms that engage in significant international activity a short time after being established are called:

A)Greenfield ventures
B)Born globals
C)Brownfield firms
D)Traditional exporters

Question 74

Describe the difference between global integration and national responsiveness.What is the principle advantage of each strategy?

Question 75

Is there a growing need for strategic management among MNCs? If so, why?