Question 1

Alerta Security Systems has won "Most Innovative Security System of the Year" awards for five years running. These award-winning security systems are likely marketed using which competitive strategy?

Accepted Answer

Alerta Security Systems has won the "Most Innovative Security System of the Year" awards for five years in a row, indicating that they have implemented a differentiation strategy by creating a unique and innovative security system that sets them apart from their competitors.

Question 2

A ________ strategy is defined by its emphasis on a single industry segment within which the orientation may be either toward low cost or differentiation.

Accepted Answer

The term "focus" is defined as a strategy that emphasizes on a single industry segment, and it can either have a low-cost or differentiation approach. Option A "specialized" is too broad and could encompass multiple industries. Option B "niche" is similar to "focus," but it does not specify the approach to the industry segment. Option D "individualized" and E "personal" do not accurately describe a business strategy.

Question 3

All of the following are possible bases for segmentation EXCEPT:

Accepted Answer

Internal variables are not typically used for market segmentation. Market segmentation usually involves dividing a broad target market into subsets of consumers who have common needs and priorities, and then designing and implementing strategies to target them. Geographic, political, economic, and cultural variables are all external factors that can influence consumer behavior and are commonly used for segmentation. Internal variables would refer to factors within the company or product itself, which do not serve as a basis for dividing the market into segments.

Question 4

________ management programs involve a single point of contact for domestic and international operations and consistent worldwide service.

Accepted Answer

Global account management programs involve a single point of contact for domestic and international operations and consistent worldwide service.

Question 5

Globalization calls for what type of authority?

Accepted Answer

Globalization calls for centralized authority because it requires coordination and cooperation among different countries and organizations. Centralized authority can help to ensure that decisions are made in a timely and efficient manner, and that resources are allocated effectively.

Question 6

For Jenny,a production line manager at a pencil manufacturing facility,the main priority of her work is to watch for extremes and deviations on the production line. This is an example of what type of task?

Accepted Answer

Watching for extremes and deviations on the production line is a task related to controlling the production process and ensuring that it meets the desired standards. Therefore, the best choice is D, which represents control. The other options do not apply in this scenario - A (Corporate diplomacy) relates to maintaining good relationships with external stakeholders, B (Competitive advantage) is about differentiating from competitors, C (Configuration) involves the design of the production line, and E (Coordination) pertains to coordinating different aspects of the production process.

Question 7

__________ is the use of resources accumulated in one part of the world to fight a competitive battle in another part of the world.

Accepted Answer

Cross-subsidization refers to the practice of using resources from one product or market to support another product or market. In this case, it is specifically referring to using resources from one geographic region to support operations in another region in order to gain a competitive advantage. This can involve subsidies from a parent company, or even from government entities.

Question 8

Variables included in the marketing management bases include those that are related to product,promotion,price,and:

Accepted Answer

The variables related to product, promotion, and price are the traditional marketing mix variables, while distribution is the fourth variable. Geography, politics, economics, and culture can all have an impact on marketing strategy, but they are not a part of the marketing management bases.

Question 9

In pursuing ____________,the company offers an identical product or service at a lower cost than competitors.

Accepted Answer

Cost leadership is a strategy in which a company aims to become the low-cost producer in its industry or market. This is achieved by offering an identical product or service at a lower cost than competitors. This becomes a competitive advantage in the market because price is often a major factor in consumer purchase decisions.

Question 10

The three factors that most determine country selection for global companies include attractiveness of a market,global strategic importance,and:

Accepted Answer

Possible synergies, such as access to a complementary product or service, existing supply chain or distribution network, or favorable regulatory environment, can greatly impact a company's decision to select a particular country. The other factors listed, such as quality of life, local GDP, and internal company processes, may also play a role in a company's decision-making process, but they are often secondary to the potential synergies that can be gained by entering a particular market.

Question 11

Typically involving internal strengths and external attractiveness,________ are tools that have been proposed for use in market and competitive analysis.

Accepted Answer

Portfolio models, such as the Boston Consulting Group (BCG) matrix or the GE/McKinsey matrix, use internal strengths and external attractiveness to analyze a company's market and competitive position. These models typically involve plotting a company's products or business units on a matrix to determine their market share and growth potential.

Question 12

Corporate ________ affects and is affected by two dimensions: the overall way in which the company holds its operations together and the commitment to the global marketplace.

Accepted Answer

Corporate culture refers to the overall beliefs, values, and norms that shape how a company operates. It encompasses both internal factors, such as management style and employee communication, and external factors, such as a company's reputation and relationships with stakeholders. Additionally, a company's commitment to the global marketplace is a key factor in its success, as it determines its ability to compete in a rapidly changing, interconnected world economy. Therefore, corporate culture is a key driver of and is influenced by a company's global commitment.

Question 13

Which of the following can be considered a market-related reason for suboptimal company performance?

Accepted Answer

The answer of Which of the following can be considered...

Question 14

Carlyle,an American manager for a Japanese company,is highly critical of decisions coming from the headquarters in Japan,citing that these are "not applicable to the American culture". Carlyle's behavior can best be described as:

Accepted Answer

Carlyle's behavior is an example of the "Not-invented-here syndrome," which refers to a mindset or culture where people are unwilling to adopt ideas, processes, or products developed outside their own group or organization, particularly if they come from a foreign source. In this case, Carlyle is critical of decisions from the Japanese headquarters because they are not developed within the American context, demonstrating a reluctance to embrace solutions or ideas perceived as external.

Question 15

In competitive advantage through ________,a company works to achieve absolute economies through international specialization.

Accepted Answer

Arbitrage involves taking advantage of price differences in different markets, which can lead to economies through international specialization.

Question 16

________ refers to the recognition that groups within markets differ sufficiently to warrant individual approaches.

Accepted Answer

Segmentation refers to the process of dividing a market into smaller groups of consumers with similar needs or characteristics. This recognition that groups within markets differ sufficiently to warrant individual approaches is the foundation of segmentation. Differentiation refers to the process of making a product or service stand out from competitors. Focus refers to concentrating efforts on a specific market segment. Customization refers to tailoring products or services to meet individual customer needs. Product leadership refers to a company's ability to offer innovative and high-quality products that set them apart from competitors.

Question 17

In its global expansion strategy,Cil-Con Systems wishes to coordinate and connect international operations by emphasizing horizontal relationships for cross-border economies of scale. This is an emphasis of which program development element?

Accepted Answer

The program development element that emphasizes horizontal relationships for cross-border economies of scale is aggregation. This strategy involves combining operations in different countries to achieve cost savings through economies of scale, pooling resources, and sharing knowledge and expertise. This is consistent with Cil-Con Systems' global expansion strategy of connecting and coordinating international operations.

Question 18

Which of the following strategies would be the best approach for avoiding the not-invented-here-syndrome?

Accepted Answer

Ensuring that local managers participate in the development of strategies would be the best approach for avoiding the not-invented-here-syndrome as it encourages collaboration and input from all levels of the organization, including local managers who have a deeper understanding of local markets and consumer preferences. Controlling budgets only at the headquarters level, maintaining local-only or global-only brands, or focusing on services rather than products do not directly address the issue of not-invented-here syndrome.

Question 19

The ________ structure,which focuses on customers,is considered more effective than the traditional country-by-country approach in today's global marketplace.

Accepted Answer

The matrix structure allows for a focus on customers regardless of country boundaries by creating cross-functional teams that work together to serve customers' needs. This approach has been found to be more effective than the traditional country-by-country approach in today's global marketplace.

Question 20

__________ is the ability to obtain what one wants through co-option and attraction.

Accepted Answer

Soft power, as identified by political scientist Joseph Nye, is the ability to attract and co-opt others rather than rely on coercion or payment. It is the ability to shape the preferences of others to achieve a desired outcome through attraction and persuasion. Other options, such as hard power and hard-balling, rely on coercion and force to achieve an outcome, while diplomacy and negotiation can involve a combination of both hard and soft power tactics.

Quiz 9: Strategic Planning