Deck 10: International Strategy and Organization

Question 1

Production is an example of a primary activity.

Answer 1

True

Question 2

A market segment is a clearly identifiable group of potential buyers.

Answer 2

True

Question 3

A written statement of why a company exists and what it plans to accomplish is referred to as its core competencies.

Answer 3

False

Question 4

A multinational strategy is most appropriate for companies that do not have foreign direct investments but rather export their products to foreign markets.

Question 5

The external business environment consists of all the elements outside a company that can affect its performance.

Question 6

Strategy is the set of planned actions managers take to help a company meet its objectives.

Question 7

When analyzing primary activities,managers often look for areas in which the company can increase the value provided to customers.

Question 8

A growth strategy is designed to increase the scale or scope of a corporation's activities.

Question 9

A global strategy does not allow a company to modify its products except for the most superficial features.

Question 10

A multinational strategy entails having a separate strategy for each nation in which a company markets its products.

Question 11

To mass-produce a zero-pollution emissions automobile by 2012 is an example of a business-unit objective.

Question 12

All parties ranging from suppliers and employers to consumers who are affected by a company's activities are called its stockholders.

Question 13

A core competency refers to multiple skills that are coordinated to form a single technological outcome.

Question 14

Scale refers to the kinds of activities a firm performs and scope to the size of activities.

Question 15

A multinational strategy is best suited to industries in which price competitiveness is a key success factor.

Question 16

A company's mission statement often guides decisions such as which industries to enter.

Question 17

Human resource management is an example of a support activity.

Question 18

The four key approaches to corporate strategy are growth,retrenchment,stability,and combination.

Question 19

To increase market share by 5 percent in the next three years is an example of an objective at the highest level of the firm.

Question 20

A core competency is a company skill that competitors can easily imitate.

Question 21

During the second stage of the strategy formulation process,a company does all of the following EXCEPT analyze ________.

A)the firm's primary activities
B)competitors' unique abilities
C)national and international business environments
D)the firm's support activities

Question 22

Weaker competitors often resort to retrenchment when national business environments grow more competitive.

Question 23

Centralized decision making is beneficial when fast-changing national business environments put a premium on local responsiveness.

Question 24

Which of these is the process of identifying and selecting an organization's objectives and deciding how the organization will achieve those objectives?

A)Mission formulation
B)Planning
C)Value chain analysis
D)Strategy development

Question 25

A main goal of the matrix structure is to bring together geographic and product area managers in joint decision making.

Question 26

The objective to mass-produce a zero-pollution emissions automobile by 2020 would most likely belong to a(n)________.

A)individual business unit
B)individual department
C)regional headquarters
D)global headquarters

Question 27

Which of these refers to a written statement of why a company exists and what it plans to accomplish?

A)Strategy statement
B)Mission statement
C)Value chain statement
D)Core competency statement

Question 28

Decentralization can help foster participative management practices.

Question 29

The strategy formulation process involves both ________.

A)planning and strategy
B)strategy and structure
C)planning and marketing
D)strategy and production

Question 30

A company's stakeholders include all of the following EXCEPT ________.

A)suppliers
B)employees
C)consumers
D)competitors

Question 31

The key to developing an effective business-level strategy is deciding on a general competitive strategy in the marketplace.

Question 32

The purpose of a combination strategy is to mix growth,retrenchment,and stability strategies across a corporation's business units.

Question 33

A negative aspect of the low-cost leadership strategy is low customer loyalty.

Question 34

The most common self-managed teams in many manufacturing companies are downsizing teams.

Question 35

All of the following are part of stage three of the strategy formulation process EXCEPT ________.

A)selecting multinational or global strategy
B)formulating departmental-level strategy
C)analyzing business-level environment
D)formulating corporate-level strategy

Question 36

Which of these is the first stage of the strategy formulation process?

A)Formulate strategies
B)Implement strategies
C)Identify company mission and goals
D)Identify core competency and value creating activities

Question 37

________ is the set of planned actions taken by managers to help a company meet its objectives.

A)Mission formulation
B)Planning
C)Value chain analysis
D)Strategy

Question 38

All parties affected by a company's activities are called ________.

A)stakeholders
B)suppliers
C)stockholders
D)employees

Question 39

A differentiation strategy works best with mass-marketed products aimed at price-sensitive buyers.

Question 40

A global matrix structure is an organizational structure that divides worldwide operations according to a company's product areas.

Question 41

Companies performing product R&D in one or very few locations are likely following a ________ strategy.

A)retrenchment
B)global
C)multidomestic
D)multinational

Question 42

Which of these is a special company ability that competitors find extremely difficult to equal?

A)Value chain
B)Core competency
C)Growth strategy
D)Location economics

Question 43

Which of these strategies are appropriate for companies in industries where buyer preferences do not converge across national borders?

A)Retrenchment
B)Global
C)Multinational
D)Stability

Question 44

The main drawback of a multinational strategy is that it does not allow a company to ________.

A)exploit scale economies in product development and marketing
B)closely monitor buyer preferences in each local market
C)modify its products except for the most superficial features
D)respond quickly and effectively to emerging buyer preferences

Question 45

Inbound and outbound logistics are considered ________.

A)capabilities
B)primary activities
C)support activities
D)core competencies

Question 46

To be the largest global company in each industry in which we compete is an example of an objective at the ________.

A)individual department level
B)business-unit level
C)consumer level
D)corporate level

Question 47

Companies producing entire inventories of products or components in one or very few optimal locations are likely following a ________ strategy.

A)retrenchment
B)global
C)multidomestic
D)multinational

Question 48

Which of these is a support activity in a firm's value chain?

A)Operations
B)Inbound and outbound logistics
C)Customer service
D)Human resource management

Question 49

Companies often establish largely independent,self-contained units in each national market under which of these strategies?

A)Retrenchment
B)Global
C)Multinational
D)Stability

Question 50

A strategy of adapting products and their marketing strategies in each national market to suit local preferences is called a ________.

A)multinational strategy
B)stability strategy
C)global strategy
D)retrenchment strategy

Question 51

An architect's ability to design an office building in the Victorian style is an example of a(n)________.

A)core competency
B)skill
C)ability
D)capability

Question 52

Offering the same products using the same marketing strategy in all national markets is referred to as a ________ strategy.

A)global
B)multinational
C)retrenchment
D)multidomestic

Question 53

At which level in a company do objectives usually become more precise and almost always contain numerical targets of performance?

A)Individual department level
B)Business-unit level
C)Consumer level
D)Corporate level

Question 54

Which of these is NOT a support activity in a company's value chain?

A)Infrastructure
B)Marketing and sales
C)Procurement
D)Human resource management

Question 55

Which of these is a primary activity in a company's value chain?

A)Infrastructure
B)Marketing and sales
C)Procurement
D)Human resource management

Question 56

In an industry where price competitiveness is a key success factor,a firm should NOT use a ________ strategy.

A)retrenchment
B)global
C)multinational
D)stability

Question 57

Which of these divides a company's activities into primary and support activities central to creating customer value?

A)Mission statement analysis
B)Location analysis
C)Multinational analysis
D)Value chain analysis

Question 58

Human resource management is an example of a ________.

A)capability
B)primary activity
C)support activity
D)core competency

Question 59

A strategy that establishes research and development (R&D),production,and marketing at the subsidiary level is called a ________ strategy.

A)retrenchment
B)global
C)multinational
D)stability

Question 60

All of these are primary activities in a firm's value chain EXCEPT ________.

A)operations
B)inbound and outbound logistics
C)customer service
D)human resource management

Question 61

A growth strategy is designed to ________.

A)guard against change
B)reduce the scale or scope of a corporation's operations
C)increase the scale or scope of a corporation's operations
D)mix growth,retrenchment,and stability strategies

Question 62

A company that is closing factories with unused capacity and laying off workers is likely following a ________ strategy.

A)growth
B)retrenchment
C)stability
D)combination

Question 63

A company that is reducing the scope of its activities by selling unprofitable business units or those no longer directly related to its overall aims is likely following a ________ strategy.

A)growth
B)retrenchment
C)stability
D)combination

Question 64

Global products are most common in industries where there is ________.

A)little buyer convergence
B)low pressure to contain costs
C)significant price competition
D)high pressure for localization

Question 65

Companies that see the business environment as posing neither profitable opportunities nor threats will likely follow a ________ strategy.

A)growth
B)retrenchment
C)stability
D)combination

Question 66

Methods of growth include all of the following EXCEPT ________.

A)acquisitions
B)joint ventures
C)strategic alliances
D)inorganic growth

Question 67

A ________ strategy can create cost savings due to product and marketing standardization.

A)retrenchment
B)multidomestic
C)multinational
D)global

Question 68

The main benefit of a global strategy is that it allows a company to ________.

A)closely monitor buyer preferences in each local market
B)save costs due to product and marketing standardization
C)avoid either growth or retrenchment
D)respond effectively to emerging buyer preferences

Question 69

A strategy designed to reduce the scale or scope of a corporation's business is called a ________ strategy.

A)growth
B)differentiation
C)retrenchment
D)stability

Question 70

Companies involved in more than one line of business must first formulate a ________.

A)business-level strategy
B)department-level strategy
C)corporate-level strategy
D)global-level strategy

Question 71

Which of these strategies is designed to increase the scale or scope of a corporation's operations?

A)Differentiation
B)Growth
C)Stability
D)Retrenchment

Question 72

Companies designing promotional campaigns and advertising strategies at headquarters are likely following a ________ strategy.

A)retrenchment
B)global
C)multinational
D)multidomestic

Question 73

A retrenchment strategy is designed to ________.

A)guard against change
B)reduce the scale or scope of a corporation's operations
C)increase the scale or scope of a corporation's operations
D)mix growth,retrenchment,and stability strategies

Question 74

A ________ strategy can cause a company to overlook important differences in buyer preferences from one market to another.

A)global
B)retrenchment
C)multidomestic
D)multinational

Question 75

Which strategy works best with mass-marketed products aimed at price-sensitive buyers?

A)Differentiation
B)Stability
C)Low-cost leadership
D)Retrenchment

Question 76

A strategy in which a company exploits economies of scale to have the lowest cost structure of any competitor in its industry is called ________.

A)differentiation
B)stability
C)low-cost leadership
D)retrenchment

Question 77

Which of these strategies is designed to guard against change?

A)Stability
B)Growth
C)Retrenchment
D)Differentiation

Question 78

All of these are key approaches to corporate-level strategy EXCEPT ________.

A)differentiation
B)growth
C)stability
D)retrenchment

Question 79

Yardsticks most commonly used to measure growth include all of the following EXCEPT ________.

A)geographic coverage
B)number of business units
C)market share
D)average age of facilities

Question 80

Organic growth refers to corporate strategy relying on ________.

A)mergers and acquisitions
B)joint venture growth
C)internally generated growth
D)strategic alliance growth