Question 1

According to you, how should a company handle a situation in which it is facing pressure to be both locally responsive and globally integrated? Justify if adopting a transnational strategy would be the best option in this scenario.

Accepted Answer

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Question 2

LeFort Crockeries is based in the country of Lisdon. It avoids adaptation and exploits location economies. In the context of a meganational strategy, LeFort can:

Accepted Answer

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Question 3

In the context of choosing an international strategy, which of the following is a similarity between a multidomestic strategy and a transnational strategy?

Accepted Answer

Both multidomestic and transnational strategies allow for local adaptation and customization by granting subsidiaries a certain level of discretion and autonomy. This enables companies to better meet the needs and preferences of local markets.

Question 4

Which of the following is an international strategy where companies fail to compromise between being global and being local and aim to be both simultaneously?

Accepted Answer

A transnational strategy is where companies aim to achieve both global efficiency and local responsiveness simultaneously, navigating the complexities of operating in multiple countries by leveraging global integration and local adaptation.

Question 5

Griohart Fashions follows a meganational strategy. It sells the same pattern of designer clothing throughout the world. Which of the following statements is true of Griohart Fashions in this scenario?

Accepted Answer

Griohart Fashions' meganational strategy involves selling the same products globally, which typically means that integration and decision-making are centralized at the headquarters.

Question 6

The marketing team at Katrane Systems meets Kiaan Ray, the company's marketing chief, to discuss the best international strategy that they can adopt to enhance their sales and increase their customer base. Although the marketing team is in favor of a multidomestic approach, Kiaan recommends following a meganational approach. Which of the following statements can Kiaan use to justify his viewpoint?

Accepted Answer

A meganational approach focuses on achieving cost efficiencies by centralizing operations and exploiting economies of scale, which aligns with the justification in choice A.

Question 7

In the context of choosing an international strategy, which of the following exemplifies a scenario where a company has adopted a meganational strategy?

Accepted Answer

A meganational strategy focuses on global integration and standardization, avoiding local adaptation to leverage economies of scale and innovation.

Question 8

In the context of strategic positioning, briefly explain a differentiation strategy.

Accepted Answer

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Question 9

Oport Shoes, a leading shoe manufacturer based in the country of Hrussia, avoids adaptation and sells similar shoes all over the world. In the context of choosing an international strategy, Oport Shoes has chosen a(n) _____.

Accepted Answer

Oport Shoes is using a strategy that involves selling similar products globally without adapting them to local markets, which aligns with a global or international strategy. However, "meganational strategy" is not a commonly recognized term in international business. The correct term for this approach is a global strategy, but since it's not an option here and assuming a typo or mix-up in terms, the closest match given is "meganational strategy." In standard terminology, this approach is known as a global strategy.

Question 10

In the context of value chain analysis, discuss how the support roles of the value chain provide inputs or pathways that enable the primary roles to create value.

Accepted Answer

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Question 11

DelBottling, a manufacturer of glass bottles, chooses to process the production of sheet glass in the country of Bojinia, a neighboring country, where labor costs are relatively low. In the context of a meganational strategy, DelBottling has exploited _____.

Accepted Answer

DelBottling has exploited location economies by choosing to process the production of sheet glass in Bojinia, where labor costs are lower, thus taking advantage of the geographic location to reduce costs.

Question 12

Protran Systems encourages its foreign subsidiaries to come up with and share innovative new ideas. Protran products that were originally developed for the local market were reintroduced into the global market. It allowed for the flow of information across borders regardless of where the ideas originated. Which of the following strategies is being followed by Protran Systems in this scenario?

Accepted Answer

Protran Systems is following a transnational approach, as it combines elements of global coordination to achieve efficiency with flexibility to adapt to local markets, encouraging innovation and the sharing of ideas across borders.

Question 13

In the context of choosing an international strategy, which of the following exemplifies a scenario where a company has adopted a transnational strategy?

Accepted Answer

A transnational strategy involves a company integrating its operations and strategies across multiple countries, allowing for both global efficiency and local responsiveness. Jui-Kan Goods exemplifies this by developing goods for both local and global markets and allowing information flow across borders, indicating an effort to balance global integration with local responsiveness.

Question 14

When the aim is to create products for a world market and manufacture them on a global scale in a few highly efficient plants, which international strategy would be most appropriate in your opinion?

Accepted Answer

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Question 15

In the context of choosing an international strategy, identify a difference between a meganational strategy and a transnational strategy.

Accepted Answer

B) Unlike a meganational strategy, integration in a transnational organization occurs through the different subsidiaries coordinating and exchanging information to make more informed decisions. This highlights the key difference in how these strategies approach integration and coordination among subsidiaries.

Question 16

In the context of profitable growth, differentiate between a low-cost strategy and a differentiation strategy with an example.

Accepted Answer

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Question 17

Fregonnat Systems is a company that faces pressure to be both locally responsive as well as globally integrated. It makes several trade-offs to successfully adopt the transnational strategy. Which of the following statements is true of Fregonnat Systems in this scenario?

Accepted Answer

Transnational strategy involves a high level of integration and responsiveness, requiring effective communication and knowledge transfer between the headquarters and its subsidiaries worldwide. This strategy relies on a lateral organizational structure that facilitates information flow and collaboration across borders, rather than centralizing decisions or inhibiting local adaptation.

Question 18

XYZA Inc. is a manufacturer of leather goods. It follows a transnational strategy. Which of the following statements is true of XYZA Inc. in this context?

Accepted Answer

A transnational strategy aims to balance the need for efficiency on a global scale with the need to be responsive to local preferences and conditions. This involves being both globally integrated and locally responsive, which is what option A describes.

Question 19

In the context of choosing an international strategy, which of the following is a difference between a meganational strategy and a transnational strategy?

Accepted Answer

A transnational strategy is distinct because it emphasizes the free flow of information and innovation across global operations, allowing the organization to benefit from ideas and best practices regardless of their origin. This contrasts with a meganational strategy, which does not inherently focus on such an integrated approach to knowledge and innovation sharing.

Question 20

According to you, how can the problem of being too locally responsive be solved? Justify your answer.

Accepted Answer

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Quiz 14: International Strategy