Question 1

It is impossible for small businesses, such as those with fewer than 500 workers, to do business overseas.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following environmental factors would most likely increase the risk for a firm that has established a fully owned subsidiary in a country?

Accepted Answer

A) expropriation threats 
B) unreliable distributors 
C) infrastructure weaknesses 
D) quality control issues 
A) expropriation threats 
B) unreliable distributors 
C) infrastructure weaknesses 
D) quality control issues

Question 3

The term globalization refers to the establishment of worldwide operations and the development of standardized products and marketing.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following charts the direction of the company and provides a basis for strategic decision making?

Accepted Answer

A) environmental assessment 
B) corporate structure 
C) organizational mission 
D) SWOT analysis 
A) environmental assessment 
B) corporate structure 
C) organizational mission 
D) SWOT analysis

Question 5

Which of the following terms best describes a company that has operations in various countries, follows policies to develop local R&D to tailor products to markets, lets plants set their own rules, and aims at being a good corporate citizen in every country?

Accepted Answer

A) GLOCAL 
B) global elite 
C) counter trade 
D) global commons 
A) GLOCAL 
B) global elite 
C) counter trade 
D) global commons

Question 6

Which of the following is the most preferred source of environmental information for environmental scanning purposes in a firm?

Accepted Answer

A) computer database 
B) corporate clipping service 
C) internal sources 
D) information packages 
A) computer database 
B) corporate clipping service 
C) internal sources 
D) information packages

Question 7

Jamie decides to plan his strategies for starting an electric equipment manufacturing company.His main aim is to ensure that it runs efficiently.He decides to do this in two phases: the planning phase and the implementation phase.Which of the following processes is Jamie employing?

Accepted Answer

A) retrenchment 
B) organizational restructuring 
C) strategic management 
D) globalization 
A) retrenchment 
B) organizational restructuring 
C) strategic management 
D) globalization

Question 8

Which of the following is a regional risk with regard to strategic entry scanning?

Accepted Answer

A) financial and currency instability 
B) varying fiscal strategies 
C) repatriation policies 
D) shifting production and consumption 
A) financial and currency instability 
B) varying fiscal strategies 
C) repatriation policies 
D) shifting production and consumption

Question 9

Which of the following is generally viewed as the most risky entry strategy?

Accepted Answer

A) turnkey operations 
B) new, fully-owned subsidiaries 
C) international joint ventures 
D) service sector outsourcing 
A) turnkey operations 
B) new, fully-owned subsidiaries 
C) international joint ventures 
D) service sector outsourcing

Question 10

The use of professional or skilled workers located in countries other than that of the home country is referred to as ________.

Accepted Answer

A) franchising 
B) licensing 
C) outsourcing 
D) importing 
A) franchising 
B) licensing 
C) outsourcing 
D) importing

Question 11

A(n)________ determines which areas of a firm's operations represent strengths or weaknesses (currently or potentially)compared to competitors.

Accepted Answer

A) transactional analysis 
B) internal analysis 
C) structural analysis 
D) break-even analysis 
A) transactional analysis 
B) internal analysis 
C) structural analysis 
D) break-even analysis

Question 12

Panera Bread is a chain of cafes serving sandwiches, soups, and freshly baked breads.The company began in 1981 with stores primarily located along the east coast of the United States.Since then, the firm has expanded to over 1,300 locations throughout the United States and Canada.The firm has strong earnings and has been designated by Business Week as a "Significant Growth Company." Panera Bread executives are considering the idea of expanding globally by opening cafes in Asia through a franchising strategy.Which of the following, if true, supports the argument that Panera Bread should expand into Asia through franchising?

Accepted Answer

A) Panera Bread executives want to test the Asian market with a short-term commitment that allows them to make quick profits. 
B) Panera Bread executives want fast access to the Asian market without a significant investment of capital. 
C) The Panera Bread menu changes rapidly, and each cafe's artisan bread bakers receive regular training on new recipes. 
D) The Panera Bread mission is to make excellent bread available to customers around the world. 
A) Panera Bread executives want to test the Asian market with a short-term commitment that allows them to make quick profits. 
B) Panera Bread executives want fast access to the Asian market without a significant investment of capital. 
C) The Panera Bread menu changes rapidly, and each cafe's artisan bread bakers receive regular training on new recipes. 
D) The Panera Bread mission is to make excellent bread available to customers around the world.

Question 13

Customer demands have no impact on a company international business strategy.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following can be regarded as a pressure to globalize?

Accepted Answer

A) decreasing competitive clout 
B) information technology expansion 
C) increasing tariffs 
D) spread of economic nationalism 
A) decreasing competitive clout 
B) information technology expansion 
C) increasing tariffs 
D) spread of economic nationalism

Question 15

Which of the following statements is true of clustering?

Accepted Answer

A) It uses different suppliers and distribution channels for interdependent companies within an industry. 
B) It helps a firm gain an increase in efficiencies. 
C) It seldom uses specialized labor. 
D) It typically increases the costs of production and distribution. 
A) It uses different suppliers and distribution channels for interdependent companies within an industry. 
B) It helps a firm gain an increase in efficiencies. 
C) It seldom uses specialized labor. 
D) It typically increases the costs of production and distribution.

Question 16

Which of the following most likely encourages firms to localize?

Accepted Answer

A) increasing tariffs at the host country 
B) providing domestic subsidies 
C) demand for undifferentiated, standardized products 
D) need for economies of scale 
A) increasing tariffs at the host country 
B) providing domestic subsidies 
C) demand for undifferentiated, standardized products 
D) need for economies of scale

Question 17

The strategic management process consists of independent and discontinuous steps.

Accepted Answer

A) True 
 B)False

Question 18

Core competencies are challenging and at times difficult for competitors to imitate.

Accepted Answer

A) True 
 B)False

Question 19

Which of the following is a contractual entry mode?

Accepted Answer

A) wholly owned subsidies 
B) turnkey projects 
C) joint ventures 
D) strategic alliances 
A) wholly owned subsidies 
B) turnkey projects 
C) joint ventures 
D) strategic alliances

Question 20

Internal analysis is carried out to assess a firm's capabilities and critical success factors compared to those of its competitors.

Accepted Answer

A) True 
 B)False

It is impossible for small businesses, such as those with fewer than 500 workers, to do business overseas.

Which of the following environmental factors would most likely increase the risk for a firm that has established a fully owned subsidiary in a country?

The term globalization refers to the establishment of worldwide operations and the development of standardized products and marketing.

Which of the following charts the direction of the company and provides a basis for strategic decision making?

Which of the following terms best describes a company that has operations in various countries, follows policies to develop local R&D to tailor products to markets, lets plants set their own rules, and aims at being a good corporate citizen in every country?

Which of the following is the most preferred source of environmental information for environmental scanning purposes in a firm?

Jamie decides to plan his strategies for starting an electric equipment manufacturing company.His main aim is to ensure that it runs efficiently.He decides to do this in two phases: the planning phase and the implementation phase.Which of the following processes is Jamie employing?

Which of the following is a regional risk with regard to strategic entry scanning?

Which of the following is generally viewed as the most risky entry strategy?

The use of professional or skilled workers located in countries other than that of the home country is referred to as ________.

A(n)________ determines which areas of a firm's operations represent strengths or weaknesses (currently or potentially)compared to competitors.

Customer demands have no impact on a company international business strategy.

Which of the following can be regarded as a pressure to globalize?

Which of the following statements is true of clustering?

Which of the following most likely encourages firms to localize?

The strategic management process consists of independent and discontinuous steps.

Core competencies are challenging and at times difficult for competitors to imitate.

Which of the following is a contractual entry mode?

Internal analysis is carried out to assess a firm's capabilities and critical success factors compared to those of its competitors.

Assessing the Environment: Political, Economic, Legal, Technological

Managing Interdependence, Social Responsibility, and Ethics

Understanding the Role of Culture

Communicating Across Cultures

Cross-Cultural Negotiation and Decision Making

Global Alliances and Strategy Implementation

Developing a Global Management Cadre

Staffing, Training, and Compensation for Global Operations

Developing a Global Management Cadre

Motivating and Leading

Filters

Exam 6: Formulating Strategy

It is impossible for small businesses, such as those with fewer than 500 workers, to do business overseas.

Which of the following environmental factors would most likely increase the risk for a firm that has established a fully owned subsidiary in a country?

The term globalization refers to the establishment of worldwide operations and the development of standardized products and marketing.

Which of the following charts the direction of the company and provides a basis for strategic decision making?

Which of the following terms best describes a company that has operations in various countries, follows policies to develop local R&D to tailor products to markets, lets plants set their own rules, and aims at being a good corporate citizen in every country?

Which of the following is the most preferred source of environmental information for environmental scanning purposes in a firm?

Jamie decides to plan his strategies for starting an electric equipment manufacturing company.His main aim is to ensure that it runs efficiently.He decides to do this in two phases: the planning phase and the implementation phase.Which of the following processes is Jamie employing?

Which of the following is a regional risk with regard to strategic entry scanning?

Which of the following is generally viewed as the most risky entry strategy?

The use of professional or skilled workers located in countries other than that of the home country is referred to as ________.

A(n)________ determines which areas of a firm's operations represent strengths or weaknesses (currently or potentially)compared to competitors.

Customer demands have no impact on a company international business strategy.

Which of the following can be regarded as a pressure to globalize?

Which of the following statements is true of clustering?

Which of the following most likely encourages firms to localize?

The strategic management process consists of independent and discontinuous steps.

Core competencies are challenging and at times difficult for competitors to imitate.

Which of the following is a contractual entry mode?

Internal analysis is carried out to assess a firm's capabilities and critical success factors compared to those of its competitors.

Assessing the Environment: Political, Economic, Legal, Technological

Managing Interdependence, Social Responsibility, and Ethics

Understanding the Role of Culture

Communicating Across Cultures

Cross-Cultural Negotiation and Decision Making

Global Alliances and Strategy Implementation

Developing a Global Management Cadre

Staffing, Training, and Compensation for Global Operations

Developing a Global Management Cadre

Motivating and Leading

Filters