Deck 11: International Strategic Management

Question 1

Multinational flexibility is enhanced when control is centralized.

Answer 1

False

Question 2

________ are comprehensive frameworks for achieving a firm's fundamental goals.

A) Strategic business units
B) International strategies
C) Competitive goals
D) International operational plans

Answer 2

B

Question 3

Carvel Industries, an MNE, broadens its product line in each of the countries that it enters. Carvel most likely benefits from ________.

A) multinational flexibility
B) economies of scale
C) location efficiencies
D) economies of scope

Answer 3

D

Question 4

What are the unique challenges of the international strategic management process? Briefly describe the international strategic management process.

Question 5

Garmin Footwear, an MNE, establishes facilities anywhere in the world that yields the lowest production or distribution costs. Garmin most likely benefits from ________.

A) multinational flexibility
B) economies of scale
C) location efficiencies
D) economies of scope

Question 6

Martin Enterprises, an MNE with operations in India, Japan, and Taiwan, has decided to delegate an increasing amount of responsibility to the managers of its local subsidiaries. Which of the following will most likely be enhanced as a result?

A) multinational flexibility
B) economies of scale
C) location efficiencies
D) economies of scope

Question 7

JBX Automobiles, a global firm, builds factories to serve more than one country and lower the MNE's production costs. JBX Automobiles most likely benefits from ________.

A) multinational flexibility
B) economies of scale
C) location efficiencies
D) economies of scope

Question 8

What form of efficiency did Mercedes-Benz capture by initially producing its sport utility vehicle only in Alabama?

A) multinational flexibility
B) economies of scale
C) location efficiencies
D) economies of scope

Question 9

Which of the following would most likely be minimized if too much power was centralized in one unit of the firm?

A) worldwide learning
B) economies of scale
C) location efficiencies
D) economies of scope

Question 10

There are many similarities between developing a strategy for competing in a single country and developing one for competing in multiple countries.

Question 11

________ occur(s) when firms build factories that serve more than one country and lower their production costs.

A) Multinational flexibility
B) Economies of scale
C) Location efficiencies
D) Economies of scope

Question 12

________ is the process of developing a particular international strategy.

A) Strategic planning
B) Global management
C) Multinational flexibility
D) International strategic management

Question 13

Multinational flexibility is ________.

A) higher when strategy is centralized
B) higher when R&D is concentrated at the headquarters
C) greater when marketing programs develop domestically
D) enhanced when responsibility is delegated to subsidiaries

Question 14

Which level of management would be the most involved with strategic planning at a major MNE Pharmaceutical Company?

A) a top-level executive
B) a middle manager
C) an operational manager
D) a functional executive

Question 15

What are the three sources of competitive advantage available to international businesses?

Question 16

A global firm's worldwide learning may be increased by ________.

A) economies of scope and scale
B) diverse operating environments
C) similar domestic experiences
D) stringent selection practices

Question 17

Why did Toyota initially struggle in the Chinese market?

Question 18

It is typically fairly easy for a firm to exploit worldwide learning, multinational flexibility, and global efficiencies simultaneously.

Question 19

________ is a comprehensive and ongoing management planning process aimed at formulating and implementing strategies that enable a firm to compete effectively internationally.

A) International strategic management
B) International operations strategy
C) Multinational flexibility
D) Global management

Question 20

Nike achieved ________ by centering its manufacturing in countries where labor costs are relatively low.

A) multinational flexibility
B) economies of scale
C) location efficiencies
D) economies of scope

Question 21

With the home replication strategy ________.

A) the firm utilizes the core competency of the firm or firm-specific advantage it developed in domestic markets as its main competitive weapon in the foreign market it enters
B) the firm views itself as a collection of relatively independent operating subsidiaries
C) the firm views the world as a single marketplace and has as its primary goal the creation of standardized goods and services that will address the needs of customers worldwide
D) the firm assigns responsibility for various organizational tasks to the unit of the organization best able to achieve the dual goals of efficiency and flexibility

Question 22

What strategic management challenges are faced by international businesses that have business units scattered around the world? How can a business strategy help improve a firm's ability to compete?

Question 23

With the transnational strategy ________.

A) the firm utilizes the core competency of the firm or firm-specific advantage it developed at home as its main competitive weapon in the foreign market it enters
B) the firm views itself as a collection of relatively independent operating subsidiaries
C) the firm views the world as a single marketplace and has as its primary goal the creation of standardized goods and services that will address the needs of customers worldwide
D) the firm assigns responsibility for various organizational tasks to the unit of the organization best able to achieve the dual goals of efficiency and flexibility

Question 24

Executives at Harper Industries are evaluating the firm's international strategy to determine if the current approach is effective. Harper has been using a multidomestic strategy for the last five years. Which of the following statements best supports Harper continuing to use the same strategy?

A) Few differences exist between national markets.
B) Central headquarters makes most decisions.
C) Economies of scale for production are low.
D) Products are marketed to global consumers.

Question 25

Dixon Enterprises, an MNE, uses a global strategy, which means that the firm most likely has a ________ structure.

A) decentralized
B) centralized
C) geographic
D) market

Question 26

IKEA attempts to capture global efficiencies while remaining responsive to local conditions. IKEA follows a ________.

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 27

The primary goal of a(n) ________ is the creation of standardized goods and services that will address the needs of customers worldwide.

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 28

When using a(n) ________, a firm utilizes the core competency or firm-specific advantage it developed in the domestic market as its main competitive weapon in the foreign markets it enters.

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) international strategy

Question 29

Firms using a ________ are more likely to locate responsibility for one product line in one country and responsibility for a second product line in another.

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 30

Parker Sportswear is an MNE with retail stores around the world. Parker views itself as a collection of relatively independent operating subsidiaries, each of which focuses on a specific domestic market. Parker most likely uses a ________ strategy.

A) multidomestic
B) home replication
C) transnational
D) global

Question 31

Hanson Manufacturing, an MNE, has operations in India, Taiwan, China, and Argentina. Since Hanson focuses on the specific domestic market in each location, the firm allows its subsidiaries to customize products and develop marketing campaigns that will appeal to local customers. Hanson most likely uses a ________ strategy.

A) multidomestic
B) home replication
C) transnational
D) global

Question 32

With the multidomestic strategy ________.

A) the firm utilizes the core competency of the firm or firm-specific advantage it developed at home as its main competitive weapon in the foreign market it enters
B) the firm views itself as a collection of relatively independent operating subsidiaries
C) the firm views the world as a single marketplace and has as its primary goal the creation of standardized goods and services that will address the needs of customers worldwide
D) the firm assigns responsibility for various organizational tasks to the unit of the organization best able to achieve the dual goals of efficiency and flexibility

Question 33

With the global strategy ________.

A) the firm utilizes the core competency of the firm or firm-specific advantage it developed at home as its main competitive weapon in the foreign market it enters
B) the firm views itself as a collection of relatively independent operating subsidiaries
C) the firm views the world as a single marketplace and has as its primary goal the creation of standardized goods and services that will address the needs of customers worldwide
D) the firm assigns responsibility for various organizational tasks to the unit of the organization best able to achieve the dual goals of efficiency and flexibility

Question 34

Which approach is most appropriate when economies of scale for production, distribution, and marketing are low?

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 35

What are the three sources of competitive advantage that are available to MNCs but unavailable to domestic firms? Identify the four strategic alternatives MNCs use to balance these three sources of competitive advantage.

Question 36

Firms using a ________ conduct business the same way anywhere in the world.

A) multi-market strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy

Question 37

Which strategy combines the benefits of global scale efficiencies and local responsiveness?

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 38

A firm following the ________ views the world as a single marketplace.

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 39

What is international strategic management? How do international, corporate, business, and functional strategies differ?

Question 40

Mercedes-Benz relies on its brand name and reputation for well-engineered, luxurious cars to succeed in foreign markets. Mercedes-Benz is most likely using the ________ strategy.

A) multidomestic
B) home replication
C) transnational
D) global

Question 41

Sargent Software faces significant pressure to move towards global integration, but the MNE does not need to respond locally. Which strategy should most likely be used by Sargent Software?

A) home replication strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy

Question 42

A firm using a ________ would most likely have a matrix structure, project teams, and informal management networks to transfer knowledge among subsidiaries.

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 43

Briefly describe the four strategic alternatives for international business. Identify the four basic components of any type of international strategy.

Question 44

Sony has cutting edge technology, efficient distribution networks, and superior organizational practices. These characteristics are most relevant to which component of international strategy?

A) distinctive competence
B) scope of operations
C) resource deployment
D) synergy

Question 45

Which of the following situations does not indicate a low need for global integration?

A) differentiated products
B) weak brand name
C) after-sales support services
D) quality differences

Question 46

Sony designs its products with an international market in mind, so the firm most likely uses a ________.

A) home replication strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy

Question 47

What type of strategy does IKEA follow?

Question 48

What strategic approach seeks to achieve local responsiveness and global integration?

Question 49

When is a global strategy most appropriate?

Question 50

Disney's name, image, and portfolio of characters are examples of which component of international strategy?

A) distinctive competence
B) scope of operations
C) resource deployment
D) synergy

Question 51

When pressures for global integration and local responsiveness are both high, firms usually adopt the ________.

A) home replication strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy

Question 52

Which strategy is likely the best for promoting global learning?

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 53

What are the similarities and differences between the home replication strategy and the global strategy?

Question 54

Which of the following is one of the components of strategy development?

A) distinctive competence
B) differential advantage
C) scope of operations
D) economies of scale

Question 55

Kraft Foods is more concerned with meeting the specific needs of local customers than with reducing manufacturing costs. Which strategy is most likely used by Kraft Foods?

A) home replication strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy

Question 56

Resource deployment might be specific along product lines, geographical lines, or both.

Question 57

________ require(s) the transfer of information and experiences from the parent to each subsidiary, from each subsidiary to the parent, and among subsidiaries.

A) Global efficiencies
B) Economies of scope
C) Worldwide learning
D) Transnational strategies

Question 58

Abelman Home Goods, an MNE, faces significant pressure to respond to local conditions but very little pressure to integrate globally. Which strategy would most likely be best for Abelman?

A) home replication strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy

Question 59

The multidomestic strategy is especially effective when the cost of coordination between the parent corporation and its various foreign subsidiaries is low.

Question 60

________ answers the question, "What do we do exceptionally well, especially as compared to our competitors?"

A) Distinctive competence
B) Differential advantage
C) Scope of operations
D) Resource deployment

Question 61

________ answers the question, "Where are we going to conduct business?"

A) Distinctive competence
B) Scope of operations
C) Resource deployment
D) Synergy

Question 62

What are the four basic components of strategy development? Explain the meaning of each component.

Question 63

The compatibility of software programs with the Windows operating system is an example of Microsoft's ________.

A) distinctive competence
B) differential advantage
C) scope of operations
D) synergy

Question 64

In ________, the firm develops the tactics for achieving the formulated international strategies.

A) strategy development
B) strategy formulation
C) strategy implementation
D) strategy evaluation

Question 65

When Disney decides to make a low investment in its Tokyo park, a higher investment in Disneyland Paris, and a similar investment in Hong Kong's theme park, Disney is modifying which component of international strategy?

A) distinctive competence
B) scope of operations
C) resource deployment
D) synergy

Question 66

________ answers the question, "Given that we are going to compete in these markets, how will we allocate our resources to them?"

A) Distinctive competence
B) Scope of operations
C) Resource deployment
D) Synergy

Question 67

The goal of ________ is to create a situation where the whole is greater than the sum of the parts.

A) distinctive competence
B) scope of operations
C) resource deployment
D) synergy

Question 68

Which of the following clarifies the organization's purpose, values, and direction?

A) code of ethics
B) SWOT analysis
C) strategic plan
D) mission statement

Question 69

Although Daimler AG's newest plant is in Alabama, most Mercedes are still German built. This is an example of Daimler AG's ________.

A) distinctive competence
B) scope of operations
C) resource deployment
D) synergy

Question 70

International human resource strategy focuses on the people who work for an organization.

Question 71

Often, transnational corporations locate responsibility for one product line in one country and responsibility for a second product line in another.

Question 72

What are the four basic components of strategy development?

Question 73

Resource deployment answers the question: "How can different elements of our business benefit each other?"

Question 74

Disney's ________ is evident in the fact that people recognize its characters from television and movies, visit Disney theme parks, and buy merchandise featuring the Disney characters.

A) distinctive competence
B) scope of operations
C) resource deployment
D) synergy

Question 75

When managers develop, refine, and agree on which markets to enter or exit and how to best compete in each, the managers are engaged in the strategy ________ process.

A) development
B) formulation
C) implementation
D) evaluation

Question 76

The first step in the strategic planning process is to ________.

A) perform a SWOT analysis
B) develop a mission statement
C) establish strategic goals
D) develop a control framework

Question 77

What is a distinctive competence?

Question 78

Disney has constructed theme parks in Japan, the United States, and France. This refers to Disney's ________.

A) distinctive competence
B) scope of operations
C) resource deployment
D) synergy

Question 79

________ may be defined in terms of geographic regions, markets, or product niches.

A) Distinctive competence
B) Scope of operations
C) Resource deployment
D) Synergy

Question 80

________ answers the question, "How can different elements of our business benefit each other?"

A) Distinctive competence
B) Scope of operations
C) Resource deployment
D) Synergy