Deck 14: Global Strategies

Question 1

Accessing low-cost labor and materials is not a motivation for global strategies.

Answer 1

False

Question 2

Wal-Mart's success in Germany shows the power of exporting a successful business model.

Answer 2

False

Question 3

A strategic alliance is a collaboration leveraging the strengths of two or more organizations to achieve strategic goals.

Answer 3

True

Question 4

A frequently unforeseen consequence of global expansion is that healthy markets, especially the home market, are put at risk by the diversion of resources.

Question 5

A global strategy is a multinational strategy in which separate strategies are developed for different countries.

Question 6

The key to success of strategic alliances is to maintain strategic value for each of the participants.

Question 7

Among the eight motivations for global strategies is to cross-subsidize businesses and to obtain scale economies.

Question 8

Standardizing brand strategy leads to global market leadership.

Question 9

An organization should enter countries in a sequential order.

Question 10

The Ford Galaxy was a good example of the advantage of a common strategy across Europe.

Question 11

Strong motivations for a standardized global brand and position are media spillover and cross-country customer travel.

Question 12

The eight motivations for global strategies are: to cross-subsidize, to dodge trade barriers, to access low cost labor/materials, to create global associations, to obtain global innovation, _________, __________, and ___________.

Question 13

One of the benefits of a strategic alliance is that it can help a firm overcome trade barriers. Another is that it can compensate for the absence of or weakness in any of the needed key success factors for a market.

Question 14

Four conditions under which organizations expanded globally and survived are: a repeatable formula for expansion, customer differentiation that travels, _____________, and _____________.