Exam 6: Formulating Strategy

Roch, a Swiss chocolate company, recently opened a manufacturing unit in Spain.The purpose of this move was that Roch wanted to avoid Spain's high import tariffs.Which of the following reasons prompted Roch to open the manufacturing unit in Spain?

A ________ gives a foreign company the rights to oversee the daily operations of a business but not to make decisions regarding ownership, financing, or strategic and policy changes.

Restrictive trade barriers most likely influence the globalization of businesses by encouraging firms to ________.

________ is the framework that managers apply to determine the competitive moves and business approaches that run the company.

________ refers to the establishment of worldwide operations and the development of standardized products and marketing.

One pressing reason for many large firms to expand overseas is to seek economies of scale.

According to Gupta and Govindarajan, an alliance-based entry strategy is most suitable when ________.

Which of the following statements is true of the strategic formulation process?

The mission of an organization provides a basis for strategic decision making.

Trade barriers, such as tariffs and quotas, decrease risk and increase profits.Hence, they are attractive to foreign companies.

Which of the following is the most likely result of regulations and restrictions enforced by a firm's home government that prove to be expensive for the firm's operations?

Environmental scanning should be conducted on the global level exclusively.

Which of the following is the quickest and cheapest way to develop a global strategy?

A country seeks new infusions of capital, technology, and know-how.It announces that it shall exempt taxes and grant concessions for foreign investors.Which of the following measures is the country employing?

Which of the following is a way in which formal institutions affect international competition?

Due to the high demand for its handmade soaps in Canada, Fragrance Exotica, an Indian Soap manufacturer, has decided to open a new manufacturing unit in Canada, thereby expanding overseas.In this scenario, which of the following reasons prompted Fragrance Exotica to set up a manufacturing unit overseas?

List the seven steps in the strategic management process.

Which of the following is a reactive reason that prompts a firm to expand overseas?

The primary motive in the contract manufacturing strategy is ________.

Describe the various sources of information that are available to managers.