Question 1

Typically, MNCs utilizing this approach to strategic planning use a country-centered or multi-domestic strategy.

Accepted Answer

A)  Quality imperative
B)  Administrative coordination
C)  Political imperative
D)  Economic imperative C

Question 2

What is the "BOP" and why is this strategy challenging to implement?

Accepted Answer

A group of researchers and companies have begun exploring the potentially untapped markets at the base of the pyramid (BOP).They have found that incremental adaptation of existing technologies and products is not effective at the BOP and that the BOP forces MNCs to fundamentally rethink their strategies.Companies must consider smaller-scale strategies and build relationships with local governments, small entrepreneurs and nonprofits rather than depend on established partners such as central governments and large local companies.The BOP strategy is challenging to implement.Companies have to offer affordable goods that are highly available in a community that is willing to accept the product.Most importantly, however is that the company must bring awareness of the product to the general population.Balancing these is not a simple task, since advertising and efficient distribution networks, for example, cost a significant amount, yet the companies cannot add a high price tag.Furthermore, illiteracy issues, poor infrastructure, corruption and nonexistent distribution channels often associated with poverty-stricken societies deter companies from wanting to invest.

Question 3

Which of the following strategies has the highest need for integration and differentiation?

Accepted Answer

A)  National responsiveness
B)  Globalization
C)  International
D)  Transnational D

Question 4

Which foreign marketing strategy is characterized by niche companies that adapt their products to satisfy the high demands of differentiation and ignore economies of scale because integration is not very important?

Accepted Answer

A)  Multi-domestic
B)  International
C)  Globalization
D)  Transnational

Question 5

A primary consideration for an MNC in investing in a foreign country would be a decision based on:

Accepted Answer

A)  Corporate culture
B)  Business ethics
C)  Specific locale
D)  Operating norms

Question 6

Strategic management is required to keep track of increasingly diversified operations in a continuously changing international environment.

Accepted Answer

A) True 
 B)False

Question 7

According to the text, strategic planning helps MNCs to do all of the following except:

Accepted Answer

A)  Coordinate and monitor its far-flung operations
B)  Deal with political risks
C)  Determine performance
D)  Get higher profitability

Question 8

Companies that pursue this strategy typically sell products for which a large portion of value is added in the upstream activities of the industry's value chain.

Accepted Answer

A)  Quality imperative
B)  Political imperative
C)  Economic imperative
D)  Administrative coordination

Question 9

The approach to strategic formulation and implementation utilizing strategies of TQM to meet or exceed customers' expectations and continuously improve products and/or services is referred to as the:

Accepted Answer

A)  Value-added imperative
B)  Quality imperative
C)  Political imperative
D)  Economic imperative

Question 10

The strategic planning process that helps a firm evaluate its current managerial, technical, material and financial strengths and weaknesses is:

Accepted Answer

A)  Environmental scanning
B)  Operational analysis
C)  Internal resource analysis
D)  Tactical analysis

Question 11

Opportunities to increase market share through increased sales of goods and services result in MNCs investing into:

Accepted Answer

A)  Advanced industrialized countries
B)  Bribes and kickbacks
C)  Corporate cultures
D)  Syndicate operations

Question 12

When the need for national responsiveness is high and the need for global integration is low, a(n) _____ strategy is appropriate.

Accepted Answer

A)  Transnational
B)  Multi-domestic
C)  International
D)  Globalization

Question 13

Which of the following is not an advantage of first-mover strategies?

Accepted Answer

A)  Capturing learning effects important for increasing market share
B)  Achieving scale economies
C)  Development of alliances with the most attractive local partners
D)  Capitalizing on well-established legal, institutional and political frameworks

Question 14

A key success factor is a factor that is necessary for a firm to compete effectively in a(n):

Accepted Answer

A)  International market
B)  Highly-restricted market
C)  Market niche
D)  Broad market domain

Question 15

The products sold by MNCs pursuing this approach often have a large portion of their value added in the downstream activities of the value chain.

Accepted Answer

A)  Political imperative
B)  Cost imperative
C)  Quality imperative
D)  Economic imperative

Question 16

In emerging economies undergoing rapid changes such as privatization, governments have generally been apprehensive and uncooperative with MNCs.

Accepted Answer

A) True 
 B)False

Question 17

The technological learning gained from varied international environments:

Accepted Answer

A)  Enhances efforts to integrate knowledge throughout a firm
B)  Shows a fall in venture performance
C)  Leads to minimal diversity of national environments
D)  Has no effect on cross-functional teams

Question 18

Which of the following is likely to be the most effective strategic approach for the "base of the pyramid"?

Accepted Answer

A)  Incremental adaptation of existing technologies and products
B)  Establishing partnerships with central governments of emerging economies
C)  Leapfrog technologies including disruptive technologies
D)  Large-scale strategies

Question 19

When market liberalization is delayed:

Accepted Answer

A)  It gives first movers a significant advantage over later entrants
B)  First movers get clear, significant advantages in transitional markets
C)  It gives later entrants a significant advantage over first movers
D)  Substantial risks to premature entry are removed

Question 20

One of the most important foci in _____ is the market and includes the role of all potential competitors and the relationships surrounding those competitors, such as affiliation with one another or the connection between the company and its customers and suppliers.

Accepted Answer

A)  Strategy implementation
B)  Goal formulation
C)  Environmental scanning
D)  Internal resource analysis

Exam 8: Strategy Formulation and Implementation