Exam 11: International Strategy and Organization

The strategy formulation process involves both ________.

A value chain analysis divides a company's activities into primary activities and support activities and identifies those that create customer value.

A global matrix structure is an organizational structure that divides worldwide operations according to a company's product areas.

Companies involved in more than one line of business must first formulate a ________.

The main benefit of a ________ strategy is its cost savings due to product and marketing standardization.

Companies following a(n) ________ strategy often take advantage of scale and location economies by producing entire inventories of products or components in a few optimal locations.

All of the following are true of a multinational strategy EXCEPT that ________.

________ is the process of identifying and selecting an organization's objectives and deciding how the organization will achieve those objectives.

All of these are key approaches to corporate-level strategy EXCEPT ________.

The process of identifying and selecting an organization's objectives and deciding how the organization will achieve those objectives is called strategy.

The high degree of independence with which each unit operates when using a multinational strategy can reduce opportunities for sharing knowledge among units within a company.

A retrenchment strategy is designed to ________.

The four key approaches to corporate strategy are growth, retrenchment, stability, and combination.

Decentralization can help foster participative management practices.

Offering the same products using the same marketing strategy in all national markets is referred to as a ________ strategy.

Corporations reduce the scope of their activities by selling unprofitable business units or those no longer directly related to their overall aims.

All parties ranging from suppliers and employers to consumers who are affected by a company's activities are called its stockholders.

Briefly describe the strategy formulation process. Identify the activities under each stage.

Companies engaged in international business can approach their market using either a multinational or global strategy.

In an industry where price competitiveness is a key success factor, a firm should NOT use a ________ strategy.