Exam 8: Strategy in the Global Environment

Which of the following entry modes allows a company to engage in global strategic coordination?

Which of the following is NOT a desired characteristic of a partner in a strategic alliance?

Relish is a large fast-food chain that operates in many countries. As there are several competitors in the fast-food sector, the company has been facing intense pressures for achieving low-cost structures. The company also faces the task of customizing its product line as there are significant differences in tastes and preferences among customers in different geographic locations. To achieve both low costs and product differentiation, the company should aim to pursue a which of the following strategies?

Which of the following is a disadvantage of strategic alliances?

Black and Decker, Capitol One, Gillette, and Unilever are all companies that conduct business in two or more national markets. These companies are known as:

Companies that pursue a global standardization strategy are often in the business of industrial-goods industries whose products often serve universal needs.

Companies that pursue which of the following strategies are trying to develop a business model that simultaneously achieves low costs, differentiates the product offering across geographic markets, and fosters a flow of skills between different subsidiaries in the company's global network of operations?

The result of the shift of national to global markets is the change from oligopolies to segments of fragmented, global industries in which competition threatens profitability and forces these companies to focus intently on qualities such as efficiency and customer responsiveness.

Strong pressures for convergence due to a shared history and culture, or the establishment of a trading block where there are deliberate attempts to harmonize trade policies, infrastructure, and regulations have contributed to the rise in which of the following trends?

What are the potential benefits and risks of global strategic alliances? What actions can a firm take to minimize the risks and maximize the benefits?

The steps a company should take to select a good partner include collecting available information, compiling data from third parties that have had business dealings with the potential partner, and establishing a relationship through face-to-face meetings to ensure that the partnership is a good fit.

If a company's competitive advantage derives from its control of proprietary technological knowhow, it should either license its technology to others or pursue a joint venture.

The Achilles heel of international strategy is that:

Which of the following statements is true about localization strategy?

Which of the following is a disadvantage of franchising?

How do the pressures for cost reductions and pressures to be locally responsive cause conflicting demands on company strategies? What are some strategies a company can use to address the pressures for cost reductions and pressures to be locally responsive?

Company A has entered into an alliance with Company B with the agreement that they will exchange skills and technologies that the other desires to help them both profit. One way to achieve the goal of this alliance is to enter into a cross-licensing agreement.

The globalization of production has been decreasing as companies have been facing lower barriers to international trade and location economies.

Which of the following might necessitate the delegation of manufacturing and production functions to foreign subsidiaries?

To take advantage of the possible value that global subsidiaries can bring, companies must be open to receive resources from outside the corporate center and provide incentives for new ideas and risk-taking by employees.