Question 1

A multi-domestic strategy tries to customize products and their advertising as much as possible to fit the local needs of different countries or regions.

Accepted Answer

A multi-domestic strategy emphasizes adapting products and marketing strategies to meet the specific needs and preferences of local consumers in different geographic markets. This approach recognizes that consumer preferences, cultural norms, and other factors can vary significantly across different regions or countries, and seeks to tailor a company's offerings to these unique circumstances.

Question 2

Concentration is growth within the same business area.

Accepted Answer

Concentration refers to a growth strategy where a company focuses on expanding within its existing business area by investing in and developing its current products, services, or markets. This is different from diversification, which involves expanding into new business areas.

Question 3

Diversification through vertical integration occurs where a business acquires suppliers or distributors.

Accepted Answer

Diversification through vertical integration involves acquiring suppliers or distributors to increase control over the supply chain and reduce reliance on external sources.

Question 4

A globalization strategy reflects an ethnocentric view that assumes everyone everywhere wants the same thing that one has developed and sold successfully at home.

Accepted Answer

A globalization strategy often involves standardizing products and marketing strategies worldwide, assuming that what works in the home market will work globally, reflecting an ethnocentric perspective.

Question 5

An e-business strategy is the strategic use of the Internet to gain competitive advantage.

Accepted Answer

An e-business strategy is all about leveraging the internet to maximize business value. It involves the use of technology and digital channels to drive business growth and optimize processes. Therefore, it is true that e-business strategy is the strategic use of the Internet to gain a competitive advantage.

Question 6

Unrelated diversification involves growth by acquiring new businesses or entering business areas that are different from what the organization already does.

Accepted Answer

Unrelated diversification involves adding new businesses or entering new areas of business that are different from the existing ones. This type of diversification can help the organization spread its risks across different industries and may lead to higher returns in the long run.

Question 7

A strategic alliance that involves the development of preferred supplier relationships to guarantee a smooth and timely flow of quality materials among partners is known as an outsourcing alliance.

Accepted Answer

The given statement describes a vendor-managed inventory alliance, not an outsourcing alliance. An outsourcing alliance typically involves the transfer of a business function or process to an external third-party provider.

Question 8

A multi-domestic strategy reflects a geocentric view that respects diversity and values talents around the world.

Accepted Answer

A multidomestic strategy focuses on adapting products and strategies to fit the specific needs of each country, reflecting a polycentric view that recognizes and respects the differences among various markets. A geocentric view, in contrast, seeks to integrate a global perspective by combining and leveraging the strengths and resources from around the world without giving preference to any one country's approach.

Question 9

Downsizing is a retrenchment strategy that decreases the size of operations to reduce costs and improve operating efficiency.

Accepted Answer

Downsizing involves reducing the size of operations, usually through employee layoffs or divestment of non-core assets, in order to cut costs and increase efficiency.

Question 10

A turn-around strategy attempts to improve performance by maintaining a stable mix and/or scale of operations

Accepted Answer

A turn-around strategy typically involves significant changes to a company's mix and/or scale of operations in order to address problems and improve performance. Maintaining the status quo would not typically be a successful turn-around strategy.

Question 11

A globalization strategy seeks balance among efficiencies in global operations and responsiveness to local markets.

Accepted Answer

The answer of A globalization strategy seeks balance among efficiencies...

Question 12

A transnational strategy tries to operate without a strong national identity and to blend with the global economy.

Accepted Answer

A transnational strategy aims to operate without being confined to a specific country or national identity, and instead seeks to integrate with the global economy by adapting to local markets and environments.

Question 13

Strategic alliances occur when two or more organizations join together in partnership to pursue an area of mutual interest.

Accepted Answer

This statement accurately defines what strategic alliances are.

Question 14

B2B strategies use information technology and Web portals to link organizations with their customers.

Accepted Answer

B2B strategies use information technology and Web portals to link organizations with other businesses, not directly with individual customers.

Question 15

Downsizing with a strategic focus is sometimes referred to as "rightsizing."

Accepted Answer

"Rightsizing" is a term used to refer to a deliberate approach to downsizing a company or organization with a strategic focus, instead of simply reducing the workforce without a clear plan or goal.

Question 16

A transnational strategy reflects a polycentric view that that shows respect for both market diversity and the capabilities of locals to best interpret their strategic implications.

Accepted Answer

The answer of A transnational strategy reflects a polycentric view...

Question 17

A strategic alliance that involves firms joining together for sales and distribution of products or services is known as a distribution alliance.

Accepted Answer

A distribution alliance involves firms partnering for the purpose of sales and distribution of products or services.

Question 18

A restructuring strategy is used where changes in the scale and/or mix of operations are implemented in order to gain both short-term efficiencies and time to prepare new strategies for improving future performance.

Accepted Answer

A restructuring strategy involves making changes to the scale and/or mix of operations to improve both short-term efficiency and long-term performance. It is a common strategy used by companies to adapt to changing market conditions and remain competitive.

Question 19

Co-opetition is the strategy of working with competitors on mutually beneficial projects.

Accepted Answer

Co-opetition involves cooperation with competitors to achieve common goals and create win-win situations. This can lead to greater innovation, growth, and success for all parties involved.

Question 20

Diversification brings the difficulties of complexity and the need to manage and integrate very dissimilar operations.

Accepted Answer

Diversification leads to a wider range of operations, which may require different management styles and techniques. This can create complexity and integration challenges that need to be carefully managed.

Quiz 7: Strategy and Strategic Management