Question 1

The easiest and cheapest type of diversification strategy for a company to manage is

Accepted Answer

A) related diversification. 
B) unrelated diversification. 
C) vertical integration. 
D) horizontal diversification. 
E) none of these choices. 
A) related diversification. 
B) unrelated diversification. 
C) vertical integration. 
D) horizontal diversification. 
E) none of these choices.

Question 2

A major impact of information technology (IT)on strategic implementation has been its effects on a company's ability to pursue strategic outsourcing to strengthen its business model.

Accepted Answer

A) True 
 B)False

Question 3

The U.S.firm Hewlett-Packard (HP)built twelve worldwide manufacturing facilities in several different countries,but its research and development (R&D)and marketing are centralized in the United States.Based on this information,which entry mode is HP using in its various locations?

Accepted Answer

A) Acquisition 
B) Internal new venture 
C) Joint venture 
D) Divestiture 
E) Merger 
A) Acquisition 
B) Internal new venture 
C) Joint venture 
D) Divestiture 
E) Merger

Question 4

When implementing an international strategy,many companies create global divisions that they add to their existing divisional structures.

Accepted Answer

A) True 
 B)False

Question 5

In its African operations,Sony Corporation performs most functions at its Japanese headquarters but markets through cooperative relationships with local distributors.In the United States,Sony has decentralized almost all of its tasks to an independent firm that it owns.Based on this information,which strategy is Sony pursuing?

Accepted Answer

A) Localization 
B) Transnational 
C) International 
D) Global standardization 
E) Stuck in the middle 
A) Localization 
B) Transnational 
C) International 
D) Global standardization 
E) Stuck in the middle

Question 6

Which structure is the best for sharing information and learning across countries?

Accepted Answer

A) Global-area 
B) International division 
C) Global product group 
D) Global matrix 
E) Simple 
A) Global-area 
B) International division 
C) Global product group 
D) Global matrix 
E) Simple

Question 7

Divisional battles may lead to battles over transfer pricing.

Accepted Answer

A) True 
 B)False

Question 8

To expand its global sales,U.S.-based Miller Brewing Company purchased a firm that processes grains in Brazil.Miller plans to manage the new business by allowing it to continue as before,with little integration into the rest of the firm.Based on this information,which entry mode is Miller using in Brazil?

Accepted Answer

A) Acquisition 
B) Internal new venture 
C) Joint venture 
D) Divestiture 
E) Merger 
A) Acquisition 
B) Internal new venture 
C) Joint venture 
D) Divestiture 
E) Merger

Question 9

The purpose of a joint venture between two or more companies is often to

Accepted Answer

A) share and develop technology. 
B) distribute and market brands and products. 
C) share access to customers. 
D) all of these choices. 
E) none of these choices. 
A) share and develop technology. 
B) distribute and market brands and products. 
C) share access to customers. 
D) all of these choices. 
E) none of these choices.

Question 10

A global strategy

Accepted Answer

A) involves an appropriate mix of centralization and decentralization. 
B) centralizes all functions at the optimal global locations. 
C) centralizes only the research and development (R&
D) and marketing functions. 
D) is the most complex strategy. 
E) maximizes local responsiveness. 
A) involves an appropriate mix of centralization and decentralization. 
B) centralizes all functions at the optimal global locations. 
C) centralizes only the research and development (R&
D) and marketing functions. 
D) is the most complex strategy. 
E) maximizes local responsiveness.

Question 11

When a company uses a network structure to implement outsourcing,

Accepted Answer

A) many firms along the value chain can easily cooperate. 
B) bureaucratic costs are increased. 
C) the cost of the outsourced functions increases. 
D) organizational culture is an important control mechanism. 
E) many firms along the value chain can easily cooperate and bureaucratic costs are increased. 
A) many firms along the value chain can easily cooperate. 
B) bureaucratic costs are increased. 
C) the cost of the outsourced functions increases. 
D) organizational culture is an important control mechanism. 
E) many firms along the value chain can easily cooperate and bureaucratic costs are increased.

Question 12

Reasons why a firm might benefit from the creation of a separate new-venture division include all of the following except

Accepted Answer

A) better protection of the division's autonomy. 
B) less scrutiny from top managers. 
C) removal from day-to-day pressures of the firm. 
D) ease in developing a culture that fosters innovation. 
E) development of a science-based business model. 
A) better protection of the division's autonomy. 
B) less scrutiny from top managers. 
C) removal from day-to-day pressures of the firm. 
D) ease in developing a culture that fosters innovation. 
E) development of a science-based business model.

Question 13

The global-product strategy is weak when it comes to

Accepted Answer

A) manufacturing of products. 
B) distribution of products. 
C) responsiveness to customers. 
D) all of these choices. 
E) none of these choices. 
A) manufacturing of products. 
B) distribution of products. 
C) responsiveness to customers. 
D) all of these choices. 
E) none of these choices.

Question 14

Few integrating mechanisms are needed when a company uses a global-area structure.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following strategies results in the highest bureaucratic costs?

Accepted Answer

A) Localization 
B) International 
C) Global standardization 
D) Transnational 
E) Unrelated diversification 
A) Localization 
B) International 
C) Global standardization 
D) Transnational 
E) Unrelated diversification

Question 16

Which of the following structures results in the creation of an office of corporate headquarters staff?

Accepted Answer

A) Functional 
B) Product team 
C) Geographic 
D) Matrix 
E) Multidivisional 
A) Functional 
B) Product team 
C) Geographic 
D) Matrix 
E) Multidivisional

Question 17

Business-to-business (B2B)networks link firms to

Accepted Answer

A) buyers. 
B) suppliers. 
C) regulators. 
D) competitors. 
E) buyers and suppliers. 
A) buyers. 
B) suppliers. 
C) regulators. 
D) competitors. 
E) buyers and suppliers.

Question 18

To expand its global sales,the U.S.-based foods maker ConAgra purchased a firm that processes grains in the United Kingdom.ConAgra plans to manage the new business by allowing it to continue as before,with little integration into the rest of the firm.Based on this information,which strategy is ConAgra pursuing?

Accepted Answer

A) Stuck in the middle 
B) Transnational 
C) International 
D) Global standardization 
E) Localization 
A) Stuck in the middle 
B) Transnational 
C) International 
D) Global standardization 
E) Localization

Question 19

PepsiCo bought many of its bottlers.Which entry mode is PepsiCo using to enter the bottling industry?

Accepted Answer

A) Joint venture 
B) Internal new venture 
C) Acquisition 
D) Divestiture 
E) Merger 
A) Joint venture 
B) Internal new venture 
C) Acquisition 
D) Divestiture 
E) Merger

Question 20

Joint ventures are best suited for projects that

Accepted Answer

A) are small in size. 
B) each company could undertake by itself. 
C) are routine in nature. 
D) neither company could do on its own. 
E) none of these choices. 
A) are small in size. 
B) each company could undertake by itself. 
C) are routine in nature. 
D) neither company could do on its own. 
E) none of these choices.

The easiest and cheapest type of diversification strategy for a company to manage is

A major impact of information technology (IT)on strategic implementation has been its effects on a company's ability to pursue strategic outsourcing to strengthen its business model.

The U.S.firm Hewlett-Packard (HP)built twelve worldwide manufacturing facilities in several different countries,but its research and development (R&D)and marketing are centralized in the United States.Based on this information,which entry mode is HP using in its various locations?

When implementing an international strategy,many companies create global divisions that they add to their existing divisional structures.

Which structure is the best for sharing information and learning across countries?

Divisional battles may lead to battles over transfer pricing.

The purpose of a joint venture between two or more companies is often to

A global strategy

When a company uses a network structure to implement outsourcing,

Reasons why a firm might benefit from the creation of a separate new-venture division include all of the following except

The global-product strategy is weak when it comes to

Few integrating mechanisms are needed when a company uses a global-area structure.

Which of the following strategies results in the highest bureaucratic costs?

Which of the following structures results in the creation of an office of corporate headquarters staff?

Business-to-business (B2B)networks link firms to

PepsiCo bought many of its bottlers.Which entry mode is PepsiCo using to enter the bottling industry?

Joint ventures are best suited for projects that

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

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Exam 13: Implementing Strategy in Companies That Compete Across Industries and Countries

The easiest and cheapest type of diversification strategy for a company to manage is

A major impact of information technology (IT)on strategic implementation has been its effects on a company's ability to pursue strategic outsourcing to strengthen its business model.

The U.S.firm Hewlett-Packard (HP)built twelve worldwide manufacturing facilities in several different countries,but its research and development (R&D)and marketing are centralized in the United States.Based on this information,which entry mode is HP using in its various locations?

When implementing an international strategy,many companies create global divisions that they add to their existing divisional structures.

Which structure is the best for sharing information and learning across countries?

Divisional battles may lead to battles over transfer pricing.

The purpose of a joint venture between two or more companies is often to

A global strategy

When a company uses a network structure to implement outsourcing,

Reasons why a firm might benefit from the creation of a separate new-venture division include all of the following except

The global-product strategy is weak when it comes to

Few integrating mechanisms are needed when a company uses a global-area structure.

Which of the following strategies results in the highest bureaucratic costs?

Which of the following structures results in the creation of an office of corporate headquarters staff?

Business-to-business (B2B)networks link firms to

PepsiCo bought many of its bottlers.Which entry mode is PepsiCo using to enter the bottling industry?

Joint ventures are best suited for projects that

Strategic Leadership: Managing the Strategy-Making Process for Competitive Advantage

External Analysis: The Identification of Opportunities and Threats

Internal Analysis: Distinctive Competencies, Competitive Advantage, and Profitability

Building Competitive Advantage Through Functional-Level Strategy

Building Competitive Advantage Through Business-Level Strategy

Business-Level Strategy and the Industry Environment

Strategy and Technology

Strategy in the Global Environment

Corporate-Level Strategy: Horizontal Integration, Vertical Integration, and Strategic Outsourcing

Corporate-Level Strategy: Related and Unrelated Diversification

Corporate Performance, Governance, and Business Ethics

Implementing Strategy in Companies That Compete in a Single Industry

Filters