Reference no: EM133110717
Strategy for International Business
I. True/False.
1. Several factors moderate managers' analysis of coordination. Managers must attend to the implications of national cultures, learning effects, operational, obstacles, and subsidiary networks.
2. Core competencies are based in the systematic reductions in production costs that occur over the life of a product.
3. Conducting a value creation activity in the optimal location for that activity generates advantages due to geographic economies.
4. The primary activities of the value chain provide the inputs that allow the firm to conduct its support activities.
5. A low-cost leadership strategy is a vital disadvantage in highly competitive industries.
6. The effort of managers to build and sustain the company's competitive positions within its industry to create value is referred to as a firm's strategy.
7. Johnson & Johnson delegates to its subsidiaries a great deal of authority to respond to local conditions. Many subsidiaries have their own manufacturing, marketing, research, and human resource functions. This particular value chain configuration illustrates the multidomestic strategy.
8. Interpreting industry structure relies on the concepts and tools developed in the IO paradigm.
9. Firms choose two fundamental strategies to improve their profitability - a differentiation strategy or a diversification strategy.
10. The economies that arise from performing a value creation activity in the optimal location for that activity are referred to as geographic economies.
11. Support activities have to do with the design, creation, and delivery of the product; its marketing; and its support and after-sale service.
12. Firms implementing a global strategy aim to maximum local responsiveness.
13. The firm that commands a valuable core competence, facing local rivals in foreign markets who do not, is most inclined to adopt an international strategy.
14. The strategy that concentrates on selling its products at an above-average industry price is commonly referred to as a cost leadership strategy.
15. Globalization makes for an uncooperative marketplace.
II. Choose the correct one.
1. A(n) strategy offers competitive advantage to the firm facing pressures for global integration and local responsiveness as well as significant opportunities for leveraging valuable skills within its global network.
a) Multidomestic
b) International
c) Transnational
d) Global
2. A(n) strategy makes sense if a firm has a valuable core competency that indigenous competitors in foreign markets lack.
a) Transnational
b) Global
c) International
d) Multidomestic
3. refers to the unique skills and/or knowledge that it does better than its
competitors.
a) Bundles of skills
b) Distinctive competencies
c) Competitive standards
d) Core competencies
4. A strategy that focuses on increasing the attractiveness of a product is referred to as a.
a) low-cost strategy
b) efficiency strategy
c) effectiveness strategy
d) differentiation strategy
5. Firms that compete in the global marketplace typically face two types of competitive pressures, namely, the pressures for and .
a) price reductions; cost reductions
b) global integration; local responsiveness
c) politically sensitivity; market leadership
d) cost reductions; marginal costs
6. Firms pursuing a strategy orient themselves toward maximizing responsiveness to local market conditions.
a) multidomestic
b) transnational
c) International
d) Global
7. Pressures for emerge when there are differences in consumer preferences and host-government policies.
a) cost containment
b) international differentiation
c) local responsiveness
d) global responsiveness
8. A strategy makes sense where there are efficient operations and where local responsiveness needs are nonexistent or can be neutralized.
a) Global
b) International
c) Multidomestic
d) Transnational
9. All of the following factors help define the structure of an industry except the .
a) competitive pressures among rival firms
b) threat of potential entry into the marketplace
c) opportunity of location advantages
d) bargaining power of suppliers and customers
10. In theory, a firm that realizes by dispersing each of its value creation activities to its optimal location should achieve an advantage vis-ˆ-vis a firm that bases all its value creation activities at a single, higher-cost location.
a) economies of scope
b) value offshoring
c) location economies
d) geographic arbitrage
11. Firms use four basic strategies to compete in the international environment. These are.
a) international, regional, global, and world
b) international, multidomestic, global, and transnational
c) domestic-based, internationally focused, local/regional-based, and cultural- based
d) cross-cultural, trade block, regional, and world
12. In the context of value chain analysis, the primary activities of a firm include .
a) company infrastructure, information systems, human resources, and materials management
b) service, human resources, production, and materials management
c) R & D, human resources, materials management, and production
d) operations, outbound logistics, marketing, service, and product design
13. In theory, a firm that aims to achieve location economies does by:
a) dispersing each of its value creation activities to its optimal location.
b) basing all its value creation activities at the single best location.
c) concentrating primary activities in one country and support activities in another.
d) consolidating activities given the nature of market demand.
14. Value chain activities can be categorized as:
a) input activities and throughput activities.
b) primary activities and support activities.
c) primary activities and secondary activities.
d) profitable activities and unprofitable activities.