Deck 14: International Strategy

Question 1

In the context of value chain analysis,which of the following is a support function?

A)Research and development
B)Distribution
C)Customer service
D)Human resources

Answer 1

D

Question 2

Which of the following best describes international strategy?

A)It consists of the steps by which companies try to achieve a profit by utilizing the undervalued currency norms in foreign nations.
B)It consists of the various entry modes that companies use based on their capabilities to attract consumers globally.
C)It consists of the various entry tactics used by companies to penetrate a foreign market.
D)It consists of the steps by which companies manage differences across borders to create advantages over their competitors.

Answer 2

D

Question 3

In the context of strategies,which of the following is a difference between value creation and value capture?

A)Value creation is maximizing the difference between profits in two consecutive financial years,whereas value capture is the process of maximizing the difference between a customer's willingness to pay and the cost of the product.
B)Value creation is the process of maximizing the portion of that value the company keeps,whereas value capture is the process of lowering the prices of products so that it is the least in a competitive market.
C)Value creation is the process of maximizing the difference between a customer's willingness to pay and the cost of the product,whereas value capture is the process of maximizing the portion of that value the company keeps.
D)Value creation is the difference between the price a company charges customers and the cost of making the product,whereas value capture is maximizing the difference between profits in two consecutive financial years.

Answer 3

C

Question 4

In the context of the primary value chain functions,which of the following is a difference between the functions of research and development (R&D)and production?

A)For physical products,R&D means manufacturing,whereas for physical processes,production involves developing new services.
B)R&D is a process that is responsible for coming up with ideas for new production processes,whereas production is the function that actually provides a service.
C)R&D involves dealing with distribution channels,whereas production involves finding the right market niches and promoting them in those markets.
D)By differentiating through brand positioning,R&D increases the perceived value of a product,whereas production helps a company coordinate communication across functions with an organization.

Question 5

Imagine Nevaan Fashions is one of the global fashion leaders based in Lisdon.Designers at Nevaan have the key responsibility of attending various international fashion shows.Nevaan's designers then replicate the designs displayed at these fashion shows by developing and marketing these designs in their stores around the world before any of its competitors.In the context of strategic positioning,this scenario exemplifies a(n)_____.

A)low-cost leadership strategy
B)differentiation strategy
C)adverse impact strategy
D)reduced-cost strategy

Question 6

Yelp Travel Services has devised a unique way to attract customers.It provides affordable lodging facilities to its travelers who arrive at the bus station after midnight.In the context of strategic positioning,Yelp Travel Services has chosen a(n)_____ to service its clients in this scenario.

A)value-based approach
B)low-cost approach
C)differentiation leadership approach
D)adverse impact approach

Question 7

GeonHouses,a leading manufacturer and supplier of crockery,charges three dollars for each soup bowl.The cost of manufacturing each soup bowl is one dollar.In this scenario,the difference between the price GeonHouses charges per soup bowl and the cost of making it is referred to as _____.

A)abstract value
B)modified value
C)captured value
D)differentiation value

Question 8

Which of the following is a difference between a low-cost strategy and a differentiation strategy?

A)Unlike a low-cost strategy,a differentiation strategy involves persuading customers to pay more for products.
B)Unlike a low-cost strategy,a differentiation strategy focuses a company's efforts on seeking efficiencies.
C)Unlike a low-cost strategy,a differentiation strategy involves reducing product costs.
D)Unlike a low-cost strategy,a differentiation strategy creates similarities between a company's product and that of its competitors.

Question 9

Gamea Tech.wishes to develop products that are unique so that it can persuade customers to pay more for it.In this scenario,Gamea Tech is following a _____.

A)differentiation strategy
B)high-cost strategy
C)greenfield strategy
D)price-skimming strategy

Question 10

Sustaining profitable growth through a differentiation approach requires that companies:

A)create value by having the lowest cost of operation in the industry.
B)continuously innovate in ways that are difficult for competitors to imitate.
C)should reduce the features of a product to offer a more basic version of it.
D)should reduce supplier costs drastically.

Question 11

Lekaen Goods is a manufacturer of leather goods in the city of Hruanie.As Hruanie already has an influx of existing companies that manufacture leather goods,Lekaen decides to reduce its prices in the market compared to its competitors in order to continue with its growth strategy,.Which of the following strategies is Lekaen using in this scenario?

A)Differentiation strategy
B)Low-cost strategy
C)Greenfield strategy
D)High-cost strategy

Question 12

In the context of the primary value chain functions,which of the following exemplifies the production function?

A)A doctor at the CityCare Clinic treats a patient.
B)FastOn Traders delivers products to the end customer.
C)Irond Systems innovates a new version of its existing handset.
D)WillyNet Bank uses information systems to track its monetary dealings.

Question 13

HotPizzeria distinguished itself from other pizza places in the city by emphasizing the use of freshly made cheese in their pizzas instead of using processed cheese like their competitors.Although HotPizzeria priced its pizzas at a higher rate when compared with its competitors,its sales increased at a rapid rate.In the context of strategy,this scenario emphasizes the use of a _____.

A)differentiation strategy
B)high-cost strategy
C)greenfield strategy
D)low-cost strategy

Question 14

Hruan Technologies is a company that wants to enter a foreign market.After deciding its entry mode,the company decides the strategy it can use to manage different customer demands,suppliers,and potential competitors.It then involves itself in various value-creating activities.In this context,which of the following statements is true of Hruan Technologies when it performs the operations involved with the value chain?

A)It will need to scrutinize where the company can differentiate itself from its competitors.
B)Standardized designs used by the company will have to be replaced by customized engineered products.
C)The primary functions of the company will enable the support functions to operate more efficiently or effectively in order to create value.
D)It will utilize human resources and information systems as its primary value chain functions.

Question 15

_____ consists of adjusting an approach to meet the differentiated needs of local markets,of local customers,and of local stakeholders as well as those of suppliers and distributors.

A)Local integration
B)Local computation
C)Local responsiveness
D)Local awareness

Question 16

In the context of strategic positioning,which of the following is a difference between low-cost leadership and a differentiation strategy?

A)Unlike in a differentiation strategy,low-cost leadership requires that companies create value by generating insights into customer behaviors.
B)Unlike in low-cost leadership,in a differentiation strategy,supplier costs need to be reduced drastically.
C)Unlike low-cost leadership,a differentiation strategy requires that companies design high-profile marketing programs.
D)Unlike in low-cost leadership,in a differentiation strategy,companies should create value by having the cheapest operation in the industry.

Question 17

In the context of strategies,which of the following statements is true of value creation?

A)It is the difference between the price a company charges customers and the cost of making the product.
B)It is the process of lowering the prices of products so that it is the least in a competitive market.
C)It is the process of maximizing the difference between a customer's willingness to pay and the cost of the product.
D)It is the process of maximizing the difference between profits in two consecutive financial years.

Question 18

In the context of strategy,growth occurs when a company is able to:

A)overcome its past financial losses.
B)increase its profits relative to past profits.
C)increase its employee hiring rate.
D)create losses for its competitors.

Question 19

The research and development (R&D)team at Daffle Systems constantly works toward innovating new products and launching new versions of existing products.Through product innovation,which is a form of differentiation,the R&D team at Daffle Systems is most likely to:

A)increase the functionality of products.
B)offer low-cost products.
C)decrease the perceived value of a product.
D)allow the company to compete in the low-cost section of the market.

Question 20

In the context of the value chain functions,which of the following functions ensures that a company has employees with the right mix of skills who are adequately trained,motivated,and compensated to perform their value creation tasks by following the organization's strategy and creating value?

A)Research and development
B)Human resources
C)Information systems
D)Customer service

Question 21

NEHunt.com sells artifacts from small handicraft shops around the world.It provides a medium to sell various products with a secure payment system.It showcases products from the small handicraft stores and creates an attractive audience for new and innovative products.Which of the following statements is true of NEHunt.com in this scenario?

A)It sells differentiated products from a standardized platform.
B)It sells identical products in the same way all over the world.
C)All aspects of its operations including sales are centralized.
D)Integration is not limited to a particular value chain segment or a sales division.

Question 22

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

A)Unlike a multidomestic strategy,a meganational strategy helps a company pursue a cost-leadership strategy at the local level.
B)Unlike a meganational strategy,a multidomestic strategy emphasizes local responsiveness over global integration.
C)Unlike a meganational strategy,a multidomestic strategy promotes knowledge flow throughout an organization,regardless of where the ideas originate.
D)Unlike a multidomestic strategy,a meganational strategy simultaneously offers the benefits of both global and local advantages.

Question 23

Frerero Global has chosen to use a multidomestic strategy when entering the international market.Which of the following statements is true of Frerero Global in this context?

A)It achieves integration through decisions made by its headquarters.
B)It exploits the cost advantage of performing each stage in its value chain at the lowest cost for that activity.
C)It pursues a cost-leadership strategy at the global level.
D)It can respond to the differentiated needs and preferences of customers in each of the countries where it operates.

Question 24

Pretora Fashions wants to launch its brand in the Jorfanian market.In a meeting with the board of directors,Dan,the marketing head at Pretora Fashions suggests that they should promote Jenny as Pretora's marketing manager when they launch its products in the Jorfanian region.Jenny is a local resident of Jorfa who has also worked with Pretora Fashions for over a decade.The board of directors are in a dilemma as Jenny has no work experience as a manager.Which of the following statements most likely justifies Dan's suggestion of having Jenny as the marketing manager?

A)She will be able to help the company identify local preferences that it can safely ignore.
B)She can help the company standardize the company's positioning and promotion strategies.
C)With Jenny as the manager,the company will be guaranteed a say when the local authorities decide to shape new policies and regulations.
D)With Jenny as the manager,the company will be exempted from paying local taxes.

Question 25

The research team at GoMarket Inc.has created an online marketplace that allows the members of the company as well as the external retailers to sell their various products.In the context of global integration,GoMarket has created a _____ in this scenario.

A)digital platform
B)global overpass
C)localized stream
D)centralized arena

Question 26

Lionshash Inc.wants to localize its brand in various countries.Before entering the Keonesse market,Lionshash promotes Fred,who grew up in Keon and has also worked with Lionshash for almost a decade.In this scenario,Fred will be beneficial for Lionshash as he would have a better sense of _____.

A)intracultural variation
B)global penetration
C)local integration
D)interregional occupation

Question 27

Awraas,a leading garment manufacturer,has built standardized processes to design and distribute its products.Being a global brand,it has a strong corporate culture that helps it maintain the same image in all the countries in which it supplies its products.Awraas is said to be globally integrated.In this context,global integration is favored when:

A)there is an increasing impediment of country borders.
B)there is an emergence of consumers who share a growing homogeneity of tastes.
C)operational speeds of businesses are not taken into account.
D)the importance for rapid turnaround time for businesses is low.

Question 28

When a company follows a multidomestic strategy,_____.

A)integration occurs through the different subsidiaries coordinating and exchanging information to make more informed decisions
B)it can exploit location economies
C)it can pursue a cost-leadership strategy at the global level
D)the human resource practices can be adapted to local employment customs

Question 29

Nykiara,a global brand based in the country of Jonabha,hires Rob,a regional management expert,when it decides to enter the Kykasian market.Rob helps Nykiara understand the local trends,emerging needs,and product usage patterns.Nykiara has been locally responsive in this scenario.Which of the following statements is true in this context?

A)Nykiara will need to change its positioning strategies based on national differences in market structure.
B)Nykiara will need to challenge the local regulations as it is a company that serves consumers globally.
C)Nykiara can effortlessly leverage globally derived knowledge.
D)Nykiara can easily lower costs through global economies of scale.

Question 30

When operations such as research and development,manufacturing,sales,and service are aligned across the countries in which a firm operates,the different parts of the corporation use the same methods.This is referred to as _____.

A)screened assessment
B)process regrouping
C)service customization
D)global integration

Question 31

Carvo Fashions,a leading designer and manufacturer of scarfs and stoles,conducts a thorough study of the cultural and fashion trends of a nation before marketing its items.It incorporates local patterns in each of its items so that it matches the culture of that nation.In this scenario,which of the following statements is true of the multidomestic strategy that Carvo has chosen?

A)It helps the company pursue a cost-leadership strategy at the global level.
B)It helps the company pursue a differentiation strategy at the global level.
C)It requires that companies exploit location economies.
D)It achieves integration through decisions made mostly by those in the headquarters.

Question 32

ABC Corp.functions by creating products for a world market.It manufactures products on a global scale in a few highly efficient plants and then markets them through a few key distribution channels.Which of the following strategies is being followed by ABC Corp.in this scenario?

A)A meganational strategy
B)A multidomestic strategy
C)A translational strategy
D)A transverse strategy

Question 33

LiveUp,a leading health drink manufacturer,has highly standardized both its health drink formula and its advertising themes across markets.The company has made its product known in a consistent manner across the world.In this scenario,LiveUp is following the process of _____.

A)decentralized advertising
B)global branding
C)localized streaming
D)centralized costing

Question 34

In the context of choosing an international strategy,identify a difference between a multidomestic strategy and a meganational strategy?

A)Unlike a multidomestic strategy,a meganational strategy helps a company pursue a cost-leadership strategy at the local level.
B)Unlike a multidomestic strategy,a meganational strategy simultaneously offers the benefits of both global and local advantages.
C)Unlike a multidomestic strategy,a meganational strategy requires that companies exploit location economies.
D)Unlike a multidomestic strategy,a meganational strategy requires that companies respond to differentiated needs of customers in each of the countries where they operate.

Question 35

MoonLit Foods is a global supplier of ready-to-eat snacks.Although it has a variety of eatables,it has always chosen to tailor its products to the needs and preferences of customers in each of the countries in which it operates.In the context of choosing an international strategy,which of the following strategies has MoonLit adopted in this scenario?

A)A multidomestic strategy
B)A meganational strategy
C)An interglobal strategy
D)A transnational strategy

Question 36

Lavos Bags,a designer handbag manufacturer,believes in global integration.It has stores setup in various parts of the world.It has standardized processes to design and distribute its products.The company has also developed a strong corporate culture to help it deploy its processes consistently and maintain the same image around the world.Which of the following statements is true of Lavos Bags in this scenario?

A)It will face difficulty in coordinating among activities in its value chain.
B)It will have restricted opportunities to centralize its production or distribution.
C)It will have restricted ability to respond quickly to evolving local market opportunities.
D)It will not be able to globalize its brand as its products will not be able to achieve economies of scale.

Question 37

When a company follows a meganational strategy,_____.

A)integration occurs through the different subsidiaries coordinating and exchanging information to make more informed decisions
B)it can pursue a differentiation strategy at the global level
C)it can pursue a cost-leadership strategy at the global level
D)the human resource practices can be adapted to local employment customs

Question 38

In the context of a meganational strategy,_____ refer to the cost advantage of performing each stage in the value chain at the lowest cost for that activity.

A)balanced scorecards
B)capital gains
C)bear markets
D)location economies

Question 39

The marketing team at Jiokaane Systems meets its chief operating officer,Linda,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 meganational approach,Linda recommends following a multidomestic approach.Which of the following statements can Linda use to justify her viewpoint?

A)The company can exploit location economies.
B)The company can promote knowledge flow throughout the organization,regardless of where the ideas originate.
C)The company can only focus on having globally standardized products.
D)The company can allow its local subsidiaries to decide what products to develop and sell in their local markets.

Question 40

In the context of global integration,which of the following is a way by which a company can lower its per-unit costs?

A)By centralizing production
B)By decentralizing distribution
C)By maintaining a large number of facilities
D)By creating a network of specialized operations

Question 41

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

Question 42

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?

A)Knowledge flow is promoted throughout the organization.
B)It allows subsidiaries the discretion to adapt and customize locally.
C)It achieves integration through decisions made by its headquarters.
D)The benefits of both global and local advantages can be achieved.

Question 43

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

A)Unlike a transnational strategy,a meganational strategy allows subsidiaries the discretion and autonomy to adapt and customize locally.
B)Unlike a meganational strategy,a transnational strategy achieves integration through decisions made mostly by headquarters.
C)Unlike a meganational strategy,a transnational strategy promotes knowledge flow throughout an organization,regardless of where the ideas originate.
D)Unlike a transnational strategy,a meganational strategy simultaneously offers the benefits of both global and local advantages.

Question 44

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

A)Unlike a transnational strategy,a meganational strategy allows subsidiaries the discretion and autonomy to adapt and customize locally.
B)Unlike a meganational strategy,integration in a transnational organization occurs through the different subsidiaries coordinating and exchanging information to make more informed decisions.
C)Unlike coordination in a meganational strategy,coordination in a transnational organization follows a bottom-up approach.
D)Unlike a transnational strategy,a meganational strategy simultaneously offers the benefits of both global and local advantages.

Question 45

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.

Question 46

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?

A)It aims to be both locally responsive and globally integrated simultaneously.
B)It achieves integration through decisions made by its headquarters.
C)Coordination within the company follows a top-down approach.
D)Coordination within the company follows a bottom-up approach.

Question 47

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?

A)The company can exploit the cost advantage of performing each stage in the value chain at the lowest cost for that activity.
B)The company can promote knowledge flow throughout the organization,regardless of where the ideas originate.
C)The company can offer the benefits of both global and local advantages.
D)The company can allow its local subsidiaries to decide what products to develop and sell in their local markets.

Question 48

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

A)Like the multidomestic strategy,the transnational strategy allows subsidiaries the discretion and autonomy to adapt and customize locally.
B)Like the multidomestic strategy,the transnational strategy achieves integration through decisions made mostly by its headquarters.
C)Like coordination in the multidomestic strategy,coordination in the transnational strategy follows a top-down approach.
D)Like coordination in the multidomestic strategy,coordination in the transnational strategy follows a bottom-up approach.

Question 49

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 _____.

A)balanced scorecards
B)capital gains
C)bear markets
D)location economies

Question 50

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?

A)A multidomestic strategy
B)A meganational strategy
C)A economical strategy
D)A transnational strategy

Question 51

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:

A)be locally responsive and globally integrated simultaneously.
B)spend significant resources on innovations.
C)allow its subsidiaries the autonomy to customize locally.
D)promote knowledge flow throughout the organization.

Question 52

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?

A)It prevents subsidiaries from having the discretion and autonomy to adapt and customize locally.
B)It is a lateral organization that succeeds or fails based on its ability to effectively shepherd knowledge transfer and communication between foreign subsidiaries.
C)It achieves integration through decisions made mostly by headquarters.
D)It prevents information flow across borders.

Question 53

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.

Question 54

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?

Question 55

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

Question 56

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?

A)A transnational approach
B)An interregional approach
C)A multidomestic approach
D)A meganational approach

Question 57

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

Question 58

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

A)Ireocon,an electronic goods manufacturer,inhibits knowledge flow considering it would harm the creativity of the research and development team.
B)Jui-Kan Goods develops goods that are supplied locally as well as in the global market,allowing for the flow of information across borders.
C)HUbHUnt,a human resource consultant,refrains from adopting a flexible governance structure.
D)NoteSystems,an employee recruitment company,achieves integration solely through the decisions made by the management team at its headquarters.

Question 59

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)_____.

A)multidomestic strategy
B)meganational strategy
C)economical strategy
D)transnational strategy