Deck 11: International Strategic Management

Question 1

JBX Automobiles, a global firm, builds factories to serve more than one country and lower the MNE's production costs. JBX Automobiles most likely benefits from ________.

A) multinational flexibility
B) economies of scale
C) location efficiencies
D) economies of scope

Answer 1

B

Question 2

Garmin Footwear, an MNE, establishes facilities anywhere in the world that yields the lowest production or distribution costs. Garmin most likely benefits from ________.

A) multinational flexibility
B) economies of scale
C) location efficiencies
D) economies of scope

Answer 2

C

Question 3

Nike achieved ________ by centering its manufacturing in countries where labor costs are relatively low.

A) multinational flexibility
B) economies of scale
C) location efficiencies
D) economies of scope

Answer 3

C

Question 4

Which of the following would most likely be minimized if too much power was centralized in one unit of the firm?

A) worldwide learning
B) economies of scale
C) location efficiencies
D) economies of scope

Question 5

________ are comprehensive frameworks for achieving a firm's fundamental goals.

A) Strategic business units
B) International strategies
C) Competitive goals
D) International operational plans

Question 6

Which of the following would be the most involved with strategic planning at Olson Pharmaceuticals, an MNE?

A) Aaron, a top-level executive
B) Brenda, a middle manager
C) Carl, an operational manager
D) Debra, a functional executive

Question 7

Multinational flexibility is ________.

A) higher when strategy is centralized
B) higher when R&D is concentrated at the headquarters
C) greater when marketing programs develop domestically
D) enhanced when responsibility is delegated to subsidiaries

Question 8

Why did Toyota initially struggle in the Chinese market?

A) Toyota faced strict safety requirements in China.
B) Toyota was unable to reach agreements with Chinese suppliers.
C) Toyota failed to position its cars to compete with Chinese automakers.
D) Toyota assumed that the Chinese and Japanese markets were very similar.

Question 9

With the home replication strategy ________.

A) the firm utilizes the core competency of the firm or firm-specific advantage it developed in domestic markets as its main competitive weapon in the foreign market it enters
B) the firm views itself as a collection of relatively independent operating subsidiaries
C) the firm views the world as a single marketplace and has as its primary goal the creation of standardized goods and services that will address the needs of customers worldwide
D) the firm assigns responsibility for various organizational tasks to the unit of the organization best able to achieve the dual goals of efficiency and flexibility

Question 10

The Walt Disney Company generates about ________ of its revenues from the United States and Canada.

A) 37 percent
B) 53 percent
C) 74 percent
D) 92 percent

Question 11

Harper Sportswear, an MNE, wants to improve its global efficiency. Which of the following would LEAST likely enable Harper to accomplish this goal?

A) location efficiencies
B) economies of scale
C) multinational flexibility
D) economies of scope

Question 12

________ occur(s) when firms build factories that serve more than one country and lower their production costs.

A) Multinational flexibility
B) Economies of scale
C) Location efficiencies
D) Economies of scope

Question 13

When using a(n) ________, a firm utilizes the core competency or firm-specific advantage it developed in the domestic market as its main competitive weapon in the foreign markets it enters.

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) international strategy

Question 14

________ is the process of developing a particular international strategy.

A) Strategic planning
B) Global management
C) Multinational flexibility
D) International strategic management

Question 15

________ is a comprehensive and ongoing management planning process aimed at formulating and implementing strategies that enable a firm to compete effectively internationally.

A) International strategic management
B) International operations strategy
C) Multinational flexibility
D) Global management

Question 16

Carvel Industries, an MNE, broadens its product line in each of the countries that it enters. Carvel most likely benefits from ________.

A) multinational flexibility
B) economies of scale
C) location efficiencies
D) economies of scope

Question 17

A global firm's worldwide learning is most likely increased by ________.

A) economies of scope and scale
B) diverse operating environments
C) similar domestic experiences
D) stringent selection practices

Question 18

What form of efficiency did Mercedes-Benz capture by initially producing its sport utility vehicle only in Alabama?

A) multinational flexibility
B) economies of scale
C) location efficiencies
D) economies of scope

Question 19

Martin Enterprises, an MNE with operations in India, Japan, and Taiwan, has decided to delegate an increasing amount of responsibility to the managers of its local subsidiaries. Which of the following will most likely be enhanced as a result?

A) multinational flexibility
B) economies of scale
C) location efficiencies
D) economies of scope

Question 20

Erica is on the strategic planning committee at Folsom Electronics, an MNE based in Detroit. Folsom is considering opening new facilities overseas. Which of the following questions is LEAST relevant to Erica and the strategic planning committee?

A) What products does Folsom intend to sell internationally?
B) Where and how will Folsom make those products?
C) Where and how will Folsom sell the products?
D) How does Folsom manage domestic sales?

Question 21

IKEA attempts to capture global efficiencies while remaining responsive to local conditions. IKEA follows a(n) ________.

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 22

Sargent Software faces significant pressure to move towards global integration , but the MNE does not need to respond locally. Which strategy should most likely be used by Sargent Software?

A) home replication strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy

Question 23

Mercedes-Benz relies on its brand name and reputation for well-engineered, luxurious cars to succeed in foreign markets. Mercedes-Benz is most likely using the ________ strategy.

A) multidomestic
B) home replication
C) transnational
D) global

Question 24

With the global strategy ________.

A) the firm utilizes the core competency of the firm or firm-specific advantage it developed at home as its main competitive weapon in the foreign market it enters
B) the firm views itself as a collection of relatively independent operating subsidiaries
C) the firm views the world as a single marketplace and has as its primary goal the creation of standardized goods and services that will address the needs of customers worldwide
D) the firm assigns responsibility for various organizational tasks to the unit of the organization best able to achieve the dual goals of efficiency and flexibility

Question 25

Which strategy combines the benefits of global scale efficiencies and local responsiveness?

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 26

Hoffman Vacuums, an MNE, experiences very little pressure either to respond to local needs or to integrate globally. Which strategy would most likely be best for Hoffman?

A) home replication strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy

Question 27

The primary goal of a(n) ________ is the creation of standardized goods and services that will address the needs of customers worldwide.

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 28

Sony designs its products with an international market in mind, so the firm most likely uses a ________.

A) home replication strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy

Question 29

Dixon Enterprises, an MNE, uses a global strategy, which means that the firm most likely has a ________ structure.

A) decentralized
B) centralized
C) geographic
D) market

Question 30

Firms using a ________ conduct business the same way anywhere in the world.

A) home replication strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy

Question 31

Executives at Harper Industries are evaluating the firm's international strategy to determine if the current approach is effective. Harper has been using a multidomestic strategy for the last five years. Which of the following statements best supports Harper continuing to use the same strategy?

A) Few differences exist between national markets.
B) Central headquarters makes most decisions.
C) Economies of scale for production are low.
D) Products are marketed to global consumers.

Question 32

Kraft Foods is more concerned with meeting the specific needs of local customers than with reducing manufacturing costs. Which strategy is most likely used by Kraft Foods?

A) home replication strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy

Question 33

Hanson Manufacturing, an MNE, has operations in India, Taiwan, China, and Argentina. Since Hanson focuses on the specific domestic market in each location, the firm allows its subsidiaries to customize products and develop marketing campaigns that will appeal to local customers. Hanson most likely uses a ________ strategy.

A) multidomestic
B) home replication
C) transnational
D) global

Question 34

With the multidomestic strategy ________.

A) the firm utilizes the core competency of the firm or firm-specific advantage it developed at home as its main competitive weapon in the foreign market it enters
B) the firm views itself as a collection of relatively independent operating subsidiaries
C) the firm views the world as a single marketplace and has as its primary goal the creation of standardized goods and services that will address the needs of customers worldwide
D) the firm assigns responsibility for various organizational tasks to the unit of the organization best able to achieve the dual goals of efficiency and flexibility

Question 35

Which approach is most appropriate when economies of scale for production, distribution, and marketing are low?

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 36

Firms using a(n) ________ are more likely to locate responsibility for one product line in one country and responsibility for a second product line in another.

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 37

A firm following the ________ views the world as a single marketplace.

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 38

Parker Sportswear is an MNE with retail stores around the world. Parker views itself as a collection of relatively independent operating subsidiaries, each of which focuses on a specific domestic market. Parker most likely uses a ________ strategy.

A) multidomestic
B) home replication
C) transnational
D) global

Question 39

With the transnational strategy ________.

A) the firm utilizes the core competency of the firm or firm-specific advantage it developed at home as its main competitive weapon in the foreign market it enters
B) the firm views itself as a collection of relatively independent operating subsidiaries
C) the firm views the world as a single marketplace and has as its primary goal the creation of standardized goods and services that will address the needs of customers worldwide
D) the firm assigns responsibility for various organizational tasks to the unit of the organization best able to achieve the dual goals of efficiency and flexibility

Question 40

Abelman Home Goods, an MNE, faces significant pressure to respond to local conditions but very little pressure to integrate globally. Which strategy would most likely be best for Abelman?

A) home replication strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy

Question 41

The goal of ________ is to create a situation where the whole is greater than the sum of the parts.

A) distinctive competence
B) scope of operations
C) resource deployment
D) synergy

Question 42

Which of the following is not one of the components of strategy development?

A) distinctive competence
B) differential advantage
C) scope of operations
D) synergy

Question 43

Disney's name, image, and portfolio of characters are examples of which component of international strategy?

A) distinctive competence
B) scope of operations
C) resource deployment
D) synergy

Question 44

________ answers the question, "Given that we are going to compete in these markets, how will we allocate our resources to them?"

A) Distinctive competence
B) Scope of operations
C) Resource deployment
D) Synergy

Question 45

Which of the following situations does NOT correspond to a low need for global integration?

A) differentiated products
B) weak brand name
C) after-sales support services
D) high quality

Question 46

________ answers the question, "How can different elements of our business benefit each other?"

A) Distinctive competence
B) Scope of operations
C) Resource deployment
D) Synergy

Question 47

________ require(s) the transfer of information and experiences from the parent to each subsidiary, from each subsidiary to the parent, and among subsidiaries.

A) Global efficiencies
B) Economies of scope
C) Worldwide learning
D) Transnational strategies

Question 48

________ answers the question, "Where are we going to conduct business?"

A) Distinctive competence
B) Scope of operations
C) Resource deployment
D) Synergy

Question 49

Disney's ________ is evident in the fact that people recognize its characters from television and movies, visit Disney theme parks, and buy merchandise featuring the Disney characters.

A) distinctive competence
B) scope of operations
C) resource deployment
D) synergy

Question 50

The compatibility of software programs with the Windows operating system is an example of Microsoft's ________.

A) distinctive competence
B) differential advantage
C) scope of operations
D) synergy

Question 51

________ answers the question, "What do we do exceptionally well, especially as compared to our competitors?"

A) Distinctive competence
B) Differential advantage
C) Scope of operations
D) Resource deployment

Question 52

Although DaimlerChrysler's newest plant is in Alabama, most Mercedes are still German built. This is an example of DaimlerChrysler's ________.

A) distinctive competence
B) scope of operations
C) resource deployment
D) synergy

Question 53

Which of the following is LEAST likely a source of distinctive competence for a firm?

A) well-respected brand name
B) superior organizational practices
C) cutting-edge technology
D) narrow product niche

Question 54

________ may be defined in terms of geographic regions, markets, or product niches.

A) Distinctive competence
B) Scope of operations
C) Resource deployment
D) Synergy

Question 55

When pressures for global integration and local responsiveness are both high, firms usually adopt the ________.

A) home replication strategy
B) transnational strategy
C) global strategy
D) multidomestic strategy

Question 56

A firm using a ________ strategy would most likely have a matrix structure, project teams, and informal management networks to transfer knowledge among subsidiaries.

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 57

When Disney decides to make a low investment in its Tokyo park, a higher investment in Disneyland Paris, and a similar investment in Hong Kong's theme park, Disney is modifying which component of international strategy?

A) distinctive competence
B) scope of operations
C) resource deployment
D) synergy

Question 58

Sony has cutting edge technology, efficient distribution networks, and superior organizational practices. These characteristics are most relevant to which component of international strategy?

A) distinctive competence
B) scope of operations
C) resource deployment
D) synergy

Question 59

Which strategy is likely the best for promoting global learning?

A) multidomestic strategy
B) home replication strategy
C) transnational strategy
D) global strategy

Question 60

Disney has constructed theme parks in Japan, the United States, and France. This refers to Disney's ________.

A) distinctive competence
B) scope of operations
C) resource deployment
D) synergy

Question 61

A(n) ________ calls for a firm to rely on a single business, product, or service for all its revenue.

A) corporate strategy
B) single-business strategy
C) related diversification strategy
D) unrelated diversification strategy

Question 62

It is typically fairly easy for a firm to exploit worldwide learning, multinational flexibility, and global efficiencies simultaneously.

Question 63

Which of the following clarifies the organization's purpose, values, and direction?

A) code of ethics
B) SWOT analysis
C) strategic plan
D) mission statement

Question 64

Which of the following would most likely be initiated through an environmental scan?

A) BCG matrix
B) diversification
C) SWOT analysis
D) strategic formulation

Question 65

Global efficiencies are harder to obtain when a single unit of the firm is given world-wide responsibility for the task.

Question 66

Multinational flexibility is enhanced when control is centralized.

Question 67

A(n) ________ is a systematic collection of data about all elements of the firm's external and internal environments.

A) environmental scan
B) strategic analysis
C) strategic formulation
D) situation analysis

Question 68

The first step in the strategic planning process is to ________.

A) perform a SWOT analysis
B) develop a mission statement
C) establish strategic goals
D) develop a control framework

Question 69

Which strategy calls for a firm to focus on achieving highly efficient operating procedures so that its costs are lower than its competitors?

A) focus strategy
B) single-business strategy
C) overall cost leadership strategy
D) unrelated diversification strategy

Question 70

A(n) ________ calls for the firm to operate in several different but fundamentally related businesses, industries, or markets at the same time.

A) corporate strategy
B) single-business strategy
C) related diversification strategy
D) unrelated diversification strategy

Question 71

Firms using a(n) ________ operate in several unrelated industries and markets.

A) corporate strategy
B) single-business strategy
C) related diversification strategy
D) unrelated diversification strategy

Question 72

Which term refers to the major objectives that a firm wants to accomplish through pursuing a specific course of action?

A) tactics
B) value chains
C) strategic goals
D) control frameworks

Question 73

Which strategy attempts to establish and maintain the image that an SBU's product or services are fundamentally unique from other products or services in the same market segment?

A) corporate strategy
B) differentiation strategy
C) related diversification strategy
D) unrelated diversification strategy

Question 74

When managers develop, refine, and agree on which markets to enter or exit and how to best compete in each, the managers are engaged in the strategy ________ process.

A) development
B) formulation
C) implementation
D) evaluation

Question 75

A decentralized structure is ideal for transferring learning from one subsidiary to another.

Question 76

Which strategy calls for a firm to target specific types of products for certain customer groups or regions?

A) focus strategy
B) single-business strategy
C) related diversification strategy
D) unrelated diversification strategy

Question 77

What is the final step of formulating an international business strategy?

A) developing a control framework
B) conducting an environmental scan
C) specifying tactical goals and plans
D) identifying relevant value chain activities

Question 78

Which term was developed by Michael Porter to describe the firm's important activities, such as production, marketing, and HR management?

A) control framework
B) economies of scale
C) supply network
D) value chain

Question 79

There are many similarities between developing a strategy for competing in a single country and developing one for competing in multiple countries.

Question 80

In ________, the firm develops the tactics for achieving the formulated international strategies.

A) strategy development
B) strategy formulation
C) strategy implementation
D) strategy evaluation