INTB Final

In terms of value creation, marketing and sales, research and development, and human resources are all aspects of a company's

Operations

Although personal selling is effective as a promotional tool, it requires

intensive use of a sales force and is relatively costly.

John Harris, CEO of Raytheon, is visiting customers in Great Britain. From the perspective of the value chain, which best describes these meetings?

marketing and sales, primary activity

Factors that determine the relative attractiveness of push and pull strategies include product type relative to consumer sophistication, channel length, and

media availability.

The __________ refers to the level of output at which most plant-level scale economies are exhausted.

minimum efficient scale

Theodore Levitt advocates for a global culture characterized by standardized tastes and global markets. What is one factor that disproves his vision?

national differences in product and technological standards

Mexico-based Dylan Fabrication Corp. requires host-country nationals to be recruited to manage subsidiaries, while parent-country nationals occupy key positions at corporate headquarters. What type of staffing policy does this company use?

polycentric

Which type of strategy best characterizes Coca-Cola's communication strategy?

A pull strategy

__________ is important for IBM as it pursues its transnational strategy.

A strong corporate culture

Organization

Architecture Structure

The reductions in unit cost achieved by producing a large volume of a product are called

Economies of Scale

A channel that is difficult for outsiders to access is called a(n)

Exclusive Channel

The __________ refers to systematic reductions in production costs that have been observed to occur over the life of a product.

Experience curve

A "buy" decision is favored when there is a chance that supply cannot be guaranteed if the firm moves production overseas.

False

A business that supplies parts to a manufacturer would be part of the downstream supply chain.

False

A disadvantage of standardized advertising is that it increases the costs of value creation by spreading the fixed costs of developing the advertisements over many countries.

False

A fragmented retail system is one in which a few retailers supply most of the market.

False

An expatriate would receive a hardship allowance in order to ensure he or she will enjoy the same standard of living in the foreign posting as at home.

False

Cultural differences often make it easier for a firm to use the same marketing message and selling approach worldwide.

False

The staffing policy at IBM can best be characterized as

Geocentric

In the semiconductor industry, there are strong pressures for cost reductions, while demands for local responsiveness are minimal. As a result, Intel Corporation, which operates in this industry, focuses on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies. According to this information, which strategy is Intel pursuing?

Global Standardization

Big Screen Productions manufactures theatre seating and needs to economize on its inventory holding costs. The company plans to have materials arrive at the manufacturing plant when it is time for them to enter the production process rather than constantly keep them on hand at the facility. What system is Big Screen Productions implementing?

JIT

Good Grains Bread Corp. plans to increase profits by providing custom bread baking mixes to the various countries where it sells. The company wants to match the tastes and preferences of the consumer in each of these markets. What type of strategy is Good Grains Bread Corp. using?

Localization

Thirsty Skin Corporation is seeking to lower the costs of value creation and achieve a low-cost position in the skincare marketplace. As a result, it plans to move its manufacturing plant from the United States to South America, which is the optimal location for production. This strategic move will most likely allow the company to realize

Location Economies

__________ include the presence of an appropriately skilled labor pool and supporting industries, both of which can play an important role in foreign direct investment decisions.

Location externalities

__________ is a support activity of the value chain.

Logistics

Strategy

Low cost Differentiation

The marketing team at Swisher Hair Care decided to use Facebook to reach its millennial buyers and traditional magazine advertising to reach customers over the age of 45. The company would use __________ to identify these two distinct buying groups.

Market Segmentation

__________ refers to the choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets.

Marketing Mix

In terms of organization architecture, __________ refers to the employees of the organization, the strategy used to recruit, compensate, and retain those individuals, and the type of people that they are in terms of their skills, values, and orientation.

People

At Hudson Boating Inc., a team of IT workers uses applied math to help the company budget advertising dollars across its entire market. The formulas these employees use indicate the optimal ways to allocate spending so that the company achieves maximum potential. What form of business analytics is this company using?

Prescriptive

Meetings between Volvo and Geely revealed that the perception of Swedish designers was that the back seat of the Volvo was used to transport dogs so little effort was placed on its design. In contrast, Geely viewed the back seat as an important element in the car that would be used by passengers. This difference reflects

Pressure for local responsiveness

Volvo's superior engineering design skills are part of the company's __________ in the value chain.

Primary Activities

Hydro-Energy Corp. makes industrial cooling systems that are powered by water energy. Many of these systems take up large amounts of floor space and some companies build a separate building to house the systems they order. Why would Hydro-Energy Corp. decentralize production?

Product's value-to-weight ratio is low.

How is Raytheon pursuing greater revenues and profits?

Raytheon is expanding into new markets in the United Arab Emirates and in Saudi Arabia.

Which best describes how Raytheon creates value for its customers?

Raytheon offers bespoke solutions for their needs.

__________ is the process of moving inventory from the point of consumption to the point of origin in supply chains for the purpose of recapturing value or proper disposal.

Reverse Logistics

When Robert shops at the warehouse club, he buys paper napkins and paper towels in bulk. What type of packaging do these products come in?

Secondary

Cooperative agreements between potential or actual competitors are called

Strategic Alliances

Geely acquired Volvo in order to develop its engineering capability. The actions that managers take to attain the goals of the firm can be described as

Strategy

Operations

Support Activities Primary Activities

Assuming all other elements are the same, what would most likely lead a global firm to purchase an item from an outside supplier?

The product to be made is a nonessential item that has little effect on the global firm's core competencies and customer expectations.

Which best explains why the supply chains of so many companies were negatively impacted as a result of the COVID-19 lockdown?

Today, companies source goods from all over the world.

Geely is trying to simultaneously achieve production efficiency by producing its cars in just two locations and respond to design preference differences between markets by offering multiple brands. Geely's strategy can best be described as

Transnational

Advanced statistical techniques are necessary to conduct predictive analytics.

True

Citizens of a foreign country working in the home country of their multinational employer are known as inpatriates.

True

Employee compensation and labor relations are functions associated with human resource management.

True

It is important for the spouse of an expatriate manager, and perhaps the whole family, to be included in cultural training programs.

True

Location externalities, such as the presence of supporting industries, can affect a company's foreign direct investment decision.

True

Markets can be segmented by geography, demography, sociocultural factors, and psychological factors.

True

The number of cargo ships entering the United States in February 2020 dropped from more than 30,000 at the beginning of the month to under 3,000 by the end of the month. Companies waiting for raw materials and parts to arrive were affected in the __________ part of their supply chain.

Upstream

The insistence of the U.S. manager that the German staff do the traditional Walmart cheer suggests

a lack of cross-cultural literacy on the part of the U.S. manager.

Firms in consumer goods industries that are trying to sell to a large segment of the market generally favor

a pull strategy

Coca-Cola's "Share a Coke" campaign in Australia reflects

a standardized product with a customized message.

Which approach to expatriate pay equalizes purchasing power across countries so employees can enjoy the same living standard in their foreign posting that they enjoyed at home?

balance sheet approach

A drawback of IBM's staffing approach is that it

can be expensive to implement.

The larger the minimum efficient scale of a plant relative to the total global demand, the greater the argument for

centralizing production in a single location or limited number of locations.

Hillary's company arranged for her to have a familiarization trip to Honduras before she started her two-year job there managing the company's worksite. This gave her the opportunity to learn about the country's history, politics, business practices, and more. Which type of training did Hillary receive on this trip?

cultural

Samuel does not how to adjust the distribution strategy at the company's international affiliate, so he directs the affiliate to follow the same procedures as the home-country office. Unfortunately, his lack of knowledge cost the company more in transportation costs and taxes. This example shows the effect of

cultural myopia

Coca-Cola's "Share a Coke" campaign targeting millennials can best be described as segmenting the market by __________ factors.

demographic

A company that uses a(n) __________ staffing policy fills all key management positions with parent-country nationals.

ethnocentric

The effort by the U.S. manager to implement policies that had worked in the United States, such as smiling at customers as they entered the store, with little concern as to whether they were appropriate for the German culture can best be described as

ethnocentric.

With its decision to head its operation in Germany with an American manager from the Bentonville headquarters, Walmart's staffing policy in Germany can best be described as

ethnocentric.

An employee of IBM who is from India but is working in the United States can be described as a(n) __________ manager.

expatriate

Jessa is a citizen of Canada but is working in Argentina for a subsidiary of her company. Jessa is a(n) __________ manager.

expatriate

The company offered Rachel a(n) __________ for living in an unfamiliar country isolated from her family, dealing with a new culture and language, and adapting to new work habits and practices. She received this as a percentage of her base salary.

foreign service premium

According to Michael Porter, differentiation strategy leads a company to focus on

increasing the attractiveness of a product.

What strategy is compatible with a polycentric staffing approach?

localization strategy

Selena works for a major video components manufacturer. It is her job to plan and control how the raw materials used to make the components come into the company and how the finished parts are shipped to end-users. Which part of the supply chain does Selena work in?

logistics

Sequoia Wood Works sells its products in Italy through an import agent, which then sells to a wholesaler. In turn, the wholesaler sells to several retailers that ultimately sell to the consumer. In this example, the number of intermediaries between the producer and the consumer suggests that the channel is

long

The __________ affects location decisions because of its influence on transportation costs.

product's value-to-weight ratio

Which element in the marketing mix was affected by Coca-Cola's campaign to share happiness by giving someone a personalized can of Coke?

promotion

Corbin Appliance Group has decided to adopt the Six Sigma approach. By doing this, the company will be able to

reduce defects in production.

Although relative factor costs may make a country look attractive as a location for performing a manufacturing activity, the firm must also look at the political economy, where, for example, __________ may eliminate this option.

regulations prohibiting foreign direct investment

Companies using a just-in-time (JIT) inventory system that want to reduce their risk of supply chain disruptions should

source inputs from multiple suppliers across different countries.

The request by the U.S. manager that all meetings at the German headquarters be held in English indicates

the U.S. manager received inadequate training for his assignment in Germany.

A significant drawback of using a just-in-time (JIT) inventory system at the time of the COVID-19 lockdown was

the lack of inventory on hand when supply chains were interrupted.

Advertisers in the United States can use print media, broadcasting media, the Internet, cable outlets, and more. While this level of media sophistication is found in many other developed countries,

this media availability is not universal.

The longer the distribution channel, the more intermediaries there are that must be persuaded

to carry the product for it to reach the consumer.

Based on the video, which basic strategy best describes the strategy Raytheon is pursuing?

transnational

In addition to the value-to-weight ratio, a key product feature that affects location decisions is

whether the product serves universal needs, which are needs that are the same around the world.