Deck 11: International Strategy and Organization

Question 1

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

Answer 1

False

Question 2

Core competencies of organizations are the special skills of certain employees that give a company an edge over other organizations.

Answer 2

False

Question 3

Free-market economies tend to levy high taxes on business profits whereas socialist economic systems normally levy lighter taxes.

Answer 3

False

Question 4

The purpose of a combination strategy is to mix growth,retrenchment,and stability strategies across a corporation's business units.

Question 5

Technology development is an example of a primary activity in the value chain of an organization.

Question 6

Objectives at the highest level in a company are always stated in the most specific terms.

Question 7

The closing of factories with unused capacity is an example of a stability strategy.

Question 8

Strategy is the set of planned actions that managers take to help a company meet its objectives.

Question 9

A multinational strategy entails having a separate strategy for each nation in which a company markets its products.

Question 10

A growth strategy is designed to increase the scale or scope of a corporation's operations.

Question 11

Core competencies are developed by organizations over long periods of time.

Question 12

A joint venture is an example of a retrenchment strategy of an organization.

Question 13

Objectives of individual business units in an organization exclusively contain numerical targets of performance.

Question 14

A multinational strategy is best suited to industries in which price competitiveness is a key success factor.

Question 15

Customer service is an example of a support activity in the value chain of an organization.

Question 16

Support activities assist companies in performing their primary activities.

Question 17

The scope of a corporation's operations refers to the size of its operations.

Question 18

The main benefit of a global strategy is that it allows companies to monitor buyer preferences closely in each local market.

Question 19

A global strategy does not allow a company to modify its products except for the most superficial features.

Question 20

A multinational strategy is most appropriate for companies that do not have foreign direct investments but rather export their products to foreign markets.

Question 21

Which of the following refers to a written statement of why a company exists and what it plans to accomplish?

A)memorandum of association
B)mission statement
C)vision statement
D)articles of association

Question 22

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

A)Stratification
B)Planning
C)Economic transition
D)Value chain analysis

Question 23

________ is the process of dividing a company's activities into primary and support activities and identifying those that create value for customers.

A)Fundamental analysis
B)Technical analysis
C)Structural analysis
D)Value-chain analysis

Question 24

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

Question 25

Which of the following is considered as a primary activity in an organization?

A)infrastructure
B)marketing and sales
C)procurement
D)human resource management

Question 26

A negative aspect of a low-cost leadership strategy is low customer loyalty.

Question 27

An international division structure reduces the authority of country managers in an organization's subsidiaries.

Question 28

The main purpose of self-managed teams is to help break down barriers between departments.

Question 29

A main goal of the global product structure is to bring together geographic and product area managers in joint decision making.

Question 30

Which of the following is a special ability of a company that competitors find extremely difficult to equal?

A)comparative advantage
B)absolute advantage
C)core competency
D)economy of scale

Question 31

A differentiation strategy is often implemented when a company wants to exploit economies of scale to have the lowest cost structure.

Question 32

A ________ is a set of planned actions taken by managers to help a company meet its objectives.

A)mission statement
B)vision
C)strategy
D)core competency

Question 33

An international area structure separates domestic from international business activities by creating a separate international division with its own manager.

Question 34

Centralized decision making is beneficial when fast-changing national business environments put a premium on local responsiveness.

Question 35

Which of the following statements is true of objectives?

A)Objectives of individual business units in a company tend to be stated in the most general terms.
B)Objectives become more precise at the level of individual departments.
C)Objectives at the highest level in an organization tend to be more specific.
D)Objectives at the highest level in an organization are more concrete as they contain numerical targets.

Question 36

The objectives at the ________ of an organization are typically more precise and contain numerical targets of performance.

A)department-level
B)business-level
C)global-level
D)corporate-level

Question 37

A focus strategy works best with mass-marketed products aimed at price-sensitive buyers.

Question 38

A low-cost leadership strategy typically requires a company to have a large market share.

Question 39

Which of the following is the first stage of the strategy-formulation process?

A)identification of value-creating activities
B)formulation of strategies
C)identification of company mission and goals
D)identification of core competency

Question 40

Decentralization can help foster participative management practices.

Question 41

Organic growth refers to an organization's corporate strategy that relies on growth ________.

A)through mergers and acquisitions
B)based on strategic alliances
C)generated internally
D)achieved from joint ventures

Question 42

The main benefit of a global strategy is that it allows a company to ________.

A)closely monitor buyer preferences in each local market
B)save costs due to product and marketing standardization
C)customize its products and services
D)respond effectively to emerging buyer preferences

Question 43

According to value-chain analysis,inbound and outbound logistics are considered as ________.

A)tertiary activities
B)primary activities
C)support activities
D)core competencies

Question 44

Adapting products and their marketing strategies in each of the national markets of a company to suit local preferences is called a ________ strategy.

A)multinational
B)blue ocean
C)global
D)retrenchment

Question 45

Which of the following is considered as a support activity in an organization?

A)inbound logistics
B)marketing and sales
C)procurement
D)customer service

Question 46

Which of the following strategies is designed to increase the scale or scope of a corporation's operations?

A)differentiation strategy
B)growth strategy
C)stability strategy
D)retrenchment strategy

Question 47

A growth strategy is designed to ________.

A)guard against organizational change
B)increase the scale or scope of a corporation's operations
C)support the stability strategies of an organization
D)support the retrenchment strategies of an organization

Question 48

The main benefit of a multidomestic strategy is that it ________.

A)exploits scale economies in product development and marketing
B)is cost-saving due to product and marketing standardization
C)takes advantage of location economies
D)responds quickly and effectively to emerging buyer preferences

Question 49

A strategy designed to reduce the scale or scope of a corporation's business is called a ________ strategy.

A)growth
B)differentiation
C)retrenchment
D)stability

Question 50

Companies often establish largely independent,self-contained units in each of its national markets to implement a ________ strategy.

A)retrenchment
B)global
C)multinational
D)blue ocean

Question 51

A ________ strategy typically increases the cost structure for international companies and forces them to charge higher prices to recover such costs.

A)retrenchment
B)global
C)multidomestic
D)blue ocean

Question 52

Companies that produce entire inventories of products or components in one or very few optimal locations are most likely to follow a ________ strategy.

A)retrenchment
B)global
C)blue ocean
D)multinational

Question 53

The main drawback of a multinational strategy is that it does not allow a company to ________.

A)exploit scale economies in product development or marketing
B)closely monitor buyer preferences in each local market
C)modify its products except for the most superficial features
D)respond quickly and effectively to emerging buyer preferences

Question 54

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

A)business-level
B)department-level
C)corporate-level
D)global-level

Question 55

A ________ strategy can create cost savings due to product and marketing standardization.

A)retrenchment
B)multidomestic
C)blue ocean
D)global

Question 56

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

A)global
B)retrenchment
C)multinational
D)blue ocean

Question 57

Which of the following statements is true of the environmental forces that affect strategy formulation?

A)Socialist economic systems normally levy light taxes on business profits.
B)Countries that excessively spend on R&D tend to have lower levels of prosperity.
C)Approval of the host government is almost always necessary for making direct investments.
D)Free-market economies tend to levy high taxes on business profits.

Question 58

Global products are most commonly seen in industries where there is ________.

A)little convergence of buyer preference across national borders
B)low pressure to contain costs
C)high demand for customized products
D)significant price competition

Question 59

Companies that typically design promotional campaigns and advertising strategies at their headquarters are most likely to follow a ________ strategy.

A)retrenchment
B)global
C)blue ocean
D)multidomestic

Question 60

Which of the following strategies is appropriate for companies in industries where buyer preferences do not converge across national borders?

A)retrenchment strategy
B)global strategy
C)multidomestic strategy
D)mass customization strategy

Question 61

Decentralized decision making is beneficial when ________.

A)all subsidiaries use the same inputs in production
B)fast-changing national business environments put a premium on local responsiveness
C)one subsidiary's output is another's input
D)it aims to create a single global organizational culture

Question 62

A(n)________ strategy deals with the primary and support activities in an organization that create value for customers.

A)business-level
B)department-level
C)corporate-level
D)international

Question 63

The way in which a company divides its activities among separate units and coordinates activities among those units is referred to as ________.

A)organizational structure
B)organizational network analysis
C)organizational diagnostics
D)organizational climate

Question 64

Decreasing levels of customer loyalty to an organization's products is a major disadvantage of the ________ strategy.

A)blue ocean
B)stability
C)low-cost leadership
D)growth

Question 65

A(n)________ structure separates domestic from international business activities by creating a separate global branch with its own manager.

A)international area
B)international division
C)global matrix
D)global product

Question 66

The lines of authority in an organization that run from top management to individual employees and specify internal reporting relationships is called ________.

A)grapevine communication
B)symbolic interactionism
C)value chain
D)chains of command

Question 67

Which of the following business-level strategies should a company follow in order to charge a higher price for its products and enjoy greater customer loyalty?

A)differentiation strategy
B)stability strategy
C)mass customization strategy
D)retrenchment strategy

Question 68

An organizational structure that organizes a company's entire global operations into countries or geographic regions is referred to as a(n)________ structure.

A)international area
B)international division
C)global matrix
D)global product

Question 69

A company that is closing factories with unused capacity and laying-off workers is most likely following a ________ strategy.

A)growth
B)retrenchment
C)stability
D)combined

Question 70

Which of the following is a characteristic based on which products are typically differentiated?

A)brand loyalty
B)brand equity
C)product design
D)product cost

Question 71

A retrenchment strategy is designed to ________.

A)encourage growth through joint ventures
B)reduce the scale or scope of a corporation's operations
C)focus exclusively on internally generated growth
D)guard against organizational change

Question 72

A company that is selling unprofitable business units is most likely following a ________ strategy.

A)growth
B)retrenchment
C)stability
D)combined

Question 73

A ________ strategy is one in which a company designs its products to be perceived by buyers as unique throughout its industry.

A)differentiation
B)stability
C)low-cost leadership
D)retrenchment

Question 74

A ________ strategy is one in which a company emphasizes on serving the needs of a narrowly defined market segment by being the low-cost leader,differentiating its product,or both.

A)global
B)focus
C)stability
D)retrenchment

Question 75

Which of the following strategies works best for an organization that practices mass production and mass-marketing?

A)differentiation strategy
B)focus strategy
C)low-cost leadership strategy
D)retrenchment strategy

Question 76

A ________ strategy often means designing products and promotions aimed at consumers who are either dissatisfied with existing choices or who want something distinctive.

A)global
B)stability
C)low-cost leadership
D)focus

Question 77

Which of the following strategies is designed to guard an organization against change?

A)stability strategy
B)growth strategy
C)retrenchment strategy
D)differentiation strategy

Question 78

A business-level strategy in which a company exploits economies of scale is called a ________.

A)differentiation strategy
B)stability strategy
C)low-cost leadership strategy
D)retrenchment strategy

Question 79

________ decision making occurs at a high organizational level in one location,such as an organization's headquarters.

A)Centralized
B)Facilitative
C)Participative
D)Consultative

Question 80

________ decision making disperses decisions to lower organizational levels,such as to international subsidiaries.

A)Decentralized
B)Top-down
C)Authoritative
D)Top management