Question 1

Which of the following are what drive potential customers to choose one firm's offerings over those of competitors?

Accepted Answer

Differentiators are the unique features or attributes of a firm's offerings that set them apart from competitors and can drive potential customers to choose them. The other options listed (arenas, economic logic, staging and pacing, mission statement) are important aspects of a firm's strategy but may not directly influence customers' decisions to choose one firm's offerings over those of competitors.

Question 2

_____ refer(s) to how a firm will earn a profit; that is,how a firm will generate positive returns over and above its cost of capital.

Accepted Answer

Economic logic refers to the specific strategy a firm will use to generate profits that exceed its cost of capital. This may involve cost leadership, differentiation, or focus strategies. The economic logic is a key component of a firm's overall competitive strategy.

Question 3

_____ refer(s) to efficiencies gained from demand-side changes,such as increasing the range of marketing and distribution.

Accepted Answer

Economies of scope refer to the efficiencies gained by a company when it expands its product range or markets. This can lead to increased distribution channels, improved marketing efforts, and better use of resources. This can result in cost savings and increased profits.

Question 4

_____ strategy is highly desirable and appropriate for many industries,given the differences across markets and the similarities being fostered by the flatteners.

Accepted Answer

A transnational strategy is designed to take advantage of both global integration and local responsiveness, making it suitable for industries experiencing both market differences and the effects of globalization.

Question 5

If the world were flat:

Accepted Answer

If the world were flat, it implies a homogenized global market where the same products and services could be sold in the same way in every country, due to similar consumer preferences and market conditions.

Question 6

Acquisitions,alliances,and organic investment and growth are examples of:

Accepted Answer

Acquisitions, alliances, and organic investment and growth are vehicles for entering a new arena. They allow a company to expand its reach and capabilities beyond its current offerings.

Question 7

_____ strategy maximizes local responsiveness by giving decentralizing decision-making authority to local business units in each country so that they can create products and services optimized to their local markets.

Accepted Answer

The multidomestic strategy focuses on giving decision-making authority to local business units in different countries in order to create products and services optimized for their local markets. This allows for maximum local responsiveness and customization. The other options (differentiation, global, cost-leadership, transnational) do not necessarily involve decentralizing decision-making authority to local business units.

Question 8

Differentiators are that facet of the strategy diamond which:

Accepted Answer

Differentiators are the unique features and attributes of a company's products or services that set it apart from its competitors and give it a competitive advantage in the marketplace. This can include things like superior quality, lower prices, better customer service, or unique features that are valued by customers.

Question 9

The firms following a(n) _____ invest in the activities that create the unique value but look for ways to reduce cost in nonvalue activities.

Accepted Answer

This strategy combines elements of both cost leadership and differentiation strategies. The firms strive to create a unique value for their customers while reducing costs in non-value activities. This approach allows the firms to offer quality products/services at lower prices and maintain a competitive edge in the market.

Question 10

A(n)_____ strategy is centralized and controlled by the home office and seeks to maximize worldwide efficiency.

Accepted Answer

A global strategy is centralized and controlled by the home office and seeks to maximize worldwide efficiency. It focuses on standardizing products, processes, and operations across all markets to achieve economies of scale and reduce costs. This approach requires a high level of coordination and integration across countries and regions to achieve a consistent brand image and messaging.

Question 11

The U.S.fast-food chain Sonic will only open new outlets in states that are adjacent to states where it already has stores.This is an example of:

Accepted Answer

Sonic is increasing its geographic scope by only opening new stores in states that are adjacent to states where it already has stores. This allows the company to expand its reach while minimizing the costs and risks associated with entering completely new markets. This strategy is often used by companies looking to grow without spreading themselves too thin or taking on too much debt.

Question 12

_____ refers to the constellation of business,corporate,and international strategy elements,which managers must consider when making decisions.

Accepted Answer

Strategy diamond refers to the constellation of business, corporate, and international strategy elements, which managers must consider when making decisions. The other options mentioned in the question - Five Forces Analysis, Cluster model, Porter's four corners model, and Strategic grouping - may be related to strategy, but they do not specifically address the different elements that make up a comprehensive strategy.

Question 13

_____ refer(s) to the cost advantage that a business obtains through expanding in size.

Accepted Answer

Economies of scale refers to the cost advantage that a business obtains through expanding in size. As the size of the business increases, the cost per unit of production decreases due to the efficient use of resources and increased bargaining power with suppliers.

Question 14

Vehicles refer to:

Accepted Answer

Vehicles refer to the means by which a firm will participate in targeted arenas, such as particular industry segments, geographic markets, or channels segments.

Question 15

Dell found that it had to suspend its direct model in India for a temporary period because it needed local intermediaries to help develop both a base of business and acceptable levels of customer awareness and sophistication.This is an example of:

Accepted Answer

Dell's decision to suspend its direct model in India and rely on local intermediaries showcases an international strategy accommodating local environments. The company recognized the need to adapt to the unique characteristics of the Indian market to effectively develop a customer base and achieve success.

Question 16

In Holland,KFC makes a potato-and-onion croquette,while in France it sells pastries alongside chicken.KFC:

Accepted Answer

The fact that KFC sells different products and services in different countries indicates that they assume consumer needs and desires vary by country. This is a common approach for global companies that want to adapt to local markets.

Question 17

_____ refers to the number of different topographical markets in which an organization participates.

Accepted Answer

Geographic scope refers to the number of different topographical markets in which an organization participates.

Question 18

Differentiation refers to:

Accepted Answer

Differentiation refers to creating unique value for the customer through advanced technology, high-quality ingredients or components, product features, and superior delivery time.

Question 19

Staging and pacing is that facet of the strategy diamond which:

Accepted Answer

Staging and pacing refers to the timing and speed of strategic moves. It is about determining the sequence and tempo in which strategic initiatives should be implemented to achieve the desired outcomes.

Question 20

Diversification refers to:

Accepted Answer

Diversification refers to the process of expanding a business into new markets or industries. This can involve moving from one industry into another, which is the definition provided in option C. Option A refers to moving into a related segment, which may or may not involve diversification, depending on the nature of the relationship between the segments. Option B refers to the number of similar businesses or activities at the same level of the value chain, which is not directly related to diversification. Option D refers to economies of scale, which may be a benefit of diversification, but is not the same thing. Option E refers to international trade, which is also not directly related to diversification.

Quiz 10: Strategy and International Business