CBA 300 (Ch. 9 & 12)

What is the basis for the second screening of the market screening process? -financial and economic forces -competitive forces -cultural forces -political and legal forces

-financial and economic forces

Which of the following are potential problems with gathering primary data in a foreign market? (Check all that apply.) -language barriers -barriers to entry -low literacy levels -social desirability bias -lack of up-to-date maps

-language barriers -low literacy levels -social desirability bias -lack of up-to-date maps

A ________ refers to economic data used to measure the relative market strength of a geographic region. -cluster analysis -market factor -trend analysis -market indicator

-market indicator

What process identifies desirable markets by eliminating the less desirable markets? -market screening -environmental scanning -environmental segmenting -swot analysis

-market screening

What are the three types of measures to assess performance as outlined in the text? (Check all that apply.) -measures of the company's progress toward achieving its mission, vision, and objectives in a manner consistent with company values -measures of the company's short-, medium-, and long-term goals as they pertain to overall environment -measures of effectiveness of the company's employees in performing their assigned jobs -measures of the company's success in obtaining and applying required resources

-measures of the company's progress toward achieving its mission, vision, and objectives in a manner consistent with company values -measures of effectiveness of the company's employees in performing their assigned jobs -measures of the company's success in obtaining and applying required resources

The initial screening is dependent on __________. (Check all that apply.) -sociocultural forces -physical forces -topography -climate -natural resources

-physical forces -topography -climate -natural resources

What are the two broad market screening approaches for international companies? (Check two answers.) -multinational -segment -country -domestic

-segment -country

What are managers' key concerns today as they make their strategic plans? (Check all that apply.) -bureaucracy -strategies -issues -implementation

-strategies -issues -implementation

What are two approaches to getting around hindrances to market research in foreign markets? (Select two answers.) -the use of big data -SWOT analysis -online research communities -the use of the four Ps

-the use of big data -online research communities

What are the purposes of a trade mission? (Check all that apply.) -to exhibit products to large groups of people -to learn firsthand about a market -to make contacts with people interested in representing your product -to meet customers face-to-face

-to learn firsthand about a market -to make contacts with people interested in representing your product -to meet customers face-to-face

What are the five strategies a company can use to compete internationally? (Check all that apply.) -transnational -multidomestic -regional -global -home replication -political -domestic

-transnational -multidomestic -regional -global -home replication

The statistical technique used to estimate future values by successive observations of a variable at regular intervals of time that suggest patterns is called __________. -factor analysis -trend analysis -SWOT analysis -cluster analysis

-trend analysis

Which of the following are nonequity-based modes of entry in foreign markets? (Check all that apply.) -turnkey projects -joint ventures -contracted manufacturing -exporting -franchising

-turnkey projects -contracted manufacturing -exporting -franchising

The U.S. Department of Commerce publishes the U.S. Exports of Merchandise report. It is considered especially useful because it includes __________. -government holdings -products that have been discontinued -units and dollar values -tariff deposits

-units and dollar values

What are the three areas of concern in the contemporary strategic management approach to planning? (Check all that apply.) -who does the planning -where the plan is developed -how much the plan costs -what the contents of the plan are -how the planning is done

-who does the planning -what the contents of the plan are -how the planning is done

Which of the following are equity-based modes of entry? (Check all that apply.) -franchising -contracted manufacturing -wholly owned subsidiary -joint venture -turnkey project

-wholly owned subsidiary -joint venture

Typically, the time frame for short-range plans is ____________. -6-12 months -1-3 years -1-2 years -12-18 months

1-3 years

North America, the European Union, and Asia account for ______ of the worldwide revenue of large multinationals in the manufacturing and service sectors. -75% -80% -60% -40%

80%

International strategy

A plan to help guide how a company makes choices about developing and deploying resources

Which one of the following statements reflects how strategic planning is done today? -To ensure better implementation, companies are separating tactics and strategy. -Reflecting the greater uncertainty in the world, strategic plans tend to be more detailed and longer. -Most companies focus on making fixed five-year plans and more flexible shorter plans. -Effective strategic planning encourages ideas to surface anywhere in the organization and at any time.

Effective strategic planning encourages ideas to surface anywhere in the organization and at any time.

True or false: A management contract is an arrangement in which one firm contracts with another to produce products to its specifications.

False

True or false: In any type of business, long-range planning constitutes any plan over 5 years.

False

True or false: Strategic planning is the exclusive province of CEOs.

False

True or false: The purpose of contingency planning is to be ready for events that have a minor impact on the firm.

False

_________ help companies economize on managerial time and promote consistency among their operating units. -Policies -Operational plans -Tactical plans -Budgets

Policies

The market growth rate index is measured by

average growth rate in commercial energy + real growth rate in GDP

Terence works for a U.S.-based company that has decided to stop sending products to Malaysia because that country has established a 74% of value tax rate on every item that comes into the country. What type of political and legal force is in place in Malaysia? -barrier to entry -SWOT -cluster analysis -unstable government

barrier to entry

An advantage of _________ planning is that the people responsible for attaining goals are formulating them. -bottom-up -top-down -strategic -iterative

bottom-up

Which type of planning begins at the lowest level in the organization and continues upward? -bottom-up -iterative -top-down -strategic

bottom-up

__________ is a form of licensing in which a firm contracts with another firm to operate a business under an established name according to a specific set of rules.

franchising

A firm facing high pressure to reduce costs and low pressure for local adaptation should follow a _________ strategy in order to compete internationally. -home replication -multidomestic -global -transnational

global

If a company needs to reduce costs and doesn't feel pressured to adapt its products to a local market, it should use a _________ strategy to compete internationally. -linear -global -home replication -multidomestic

global

Under the home replication strategy, new product development takes place in the __________ (home, foreign) market.

home

A firm facing relatively weak pressures for local responsiveness and cost reduction should pursue a _______ strategy. -transnational -multidomestic -global -home replication

home replication

Local adaptation of products usually ________________ (increases, decreases) a company's cost structure.

increases

Market __________ serve as yardsticks for measuring the relative strength of a geographic region.

indicators

The international monetary systems consists of

institutions, rules, procedures, and processes

To be effective, a company's international strategy must be consistent among all departments of the company. In other words, the international strategy must have _______________ (internal/external) consistency.

internal

A plan that guides the way firms make choices about developing and deploying scarce resources to achieve their international objectives is called a(n) _________. -vision statement -international strategy -mission statement -SWOT analysis

international strategy

Two large international companies are taking part in the rebuilding of the infrastructure of South Africa. These two companies have joined together for the purpose of doing business in a third market: South Africa. Their cooperative effort is an example of a(n) __________ ___________.

joint venture

Which mode of entry is a cooperative effort among two or more organizations that share a common interest in a business undertaking? -management contract -strategic alliance -joint venture -contracted manufacturing

joint venture

Judson's company decided to move its operations internationally after learning that manufacturing facilities in Indonesia will give tax breaks to international firms starting next year. This example demonstrates how Judson's company used _________ management to gain competitive advantage. -linear -knowledge -context -marketing

knowledge

The practices that organizations and their managers use for identifying, creating, acquiring, developing, dispersing, and exploiting competitively valuable knowledge are called ____________ ____________ .

knowledge management

Which of the following are important characteristics of a market segment? (Check all that apply.) -complex -definable -capturable -large -actionable -accessible

-definable -capturable -large -actionable -accessible

What procedure in the strategic planning process provides information about potential threats and opportunities from various environmental forces? -segment screening -market screening -environmental scanning -SWOT analysis

-environmental scanning

What steps are included in the global strategic planning process? (check all that apply) -Define the business and mission -Purchase international partner -Analyze the external environment -Make tactical plans

-Define the business and mission -Analyze the external environment -Make tactical plans

Which of the following are characteristics of franchising? (Check all that apply.) -It offers a well-defined management contract. -It has a well-proven set of procedures. -It has a well-developed and controlled marketing strategy. -It has a well-publicized brand name.

-It has a well-proven set of procedures. -It has a well-developed and controlled marketing strategy. -It has a well-publicized brand name.

Which of the following statements accurately describe standardization and planning in strategy formulation for companies competing internationally? (Check all that apply.) -Many top executives believe that differences in foreign environments require marketing strategies to be determined locally. -Most companies have used standardized marketing strategies locally and abroad. -Most companies look for ways to benefit from standardization. -Using scenarios in the planning process can help firms understand the implications of potential future changes on their strategies.

-Many top executives believe that differences in foreign environments require marketing strategies to be determined locally. -Most companies look for ways to benefit from standardization. -Using scenarios in the planning process can help firms understand the implications of potential future changes on their strategies.

Which of the following are associated with the home replication strategy? (Check all that apply.) -Product strategy is controlled by the foreign-market office. -Product development occurs in the home market. -Product development occurs in the foreign market. -Marketing strategy is controlled by the home-country office.

-Product development occurs in the home market. -Marketing strategy is controlled by the home-country office.

What makes the cultural screening process so difficult? (Check all that apply.) -The factors are objective and easy to determine. -Information is too homogeneous. -Recognition of the factors is a subjective process. -Data are difficult to assemble.

-Recognition of the factors is a subjective process. -Data are difficult to assemble.

Which of the following are characteristic of the multidomestic strategy? (Check all that apply.) -Local adaptation of a product is not a priority. -Subsidiaries are expected to develop and exploit local opportunities. -It typically involves adapting the product to the local market. -Decision making is highly centralized. -Knowledge and competencies should be developed at the local level.

-Subsidiaries are expected to develop and exploit local opportunities. -It typically involves adapting the product to the local market. -Knowledge and competencies should be developed at the local level.

Why do high-tech firms often do not want to grant a license? (Check all that apply.) -They fear that the licensee will aggressively market product outside of its home territory. -They are worried that licensee will eventually become a competitor. -They fear that the licensee will not pay for license. -They are concerned that the licensee does not understand the -product.

-They fear that the licensee will aggressively market product outside of its home territory. -They are worried that licensee will eventually become a competitor.

What are the three key questions managers ask as part of value chain analysis? (Check all that apply.) -Who are the company's target customers? -How will the company promote the product? -What value does the company want to deliver to its customer? -Where will raw materials be sourced? -How will the customer value be created?

-Who are the company's target customers? -What value does the company want to deliver to its customer? -How will the customer value be created?

Which political and legal forces have the most impact on international companies? (Check all that apply.) -barriers to entry -government controls -political stability -currency exchange rates -stability of government policy

-barriers to entry -government controls -political stability -stability of government policy

The logical first step of the market screening process is based on __________. -political forces -competitive potential -economic forces -basic need potential

-basic need potential

Which of the following measures are used to estimate market demand? (Check all that apply.) -cluster analysis -SWOT analysis -market indicators -trend analysis -market factors

-cluster analysis -market indicators -trend analysis -market factors

Which of the following are considered competitive forces? (Check all that apply.) -competitors' product line quality level -competitors' pricing policies -competitors' market share -competitors' distribution channels -competitors' personnel

-competitors' product line quality level -competitors' pricing policies -competitors' market share -competitors' distribution channels

What are the two levels of market screening? (Check two answers.) -customer screening -country screening -segment screening -regional screening

-country screening -segment screening

What are the three major areas of analysis in the second screening of the market screening process? (Check all that apply.) -currency exchange rates -interest rates -pricing policies -regulatory requirements -inflation trends

-currency exchange rates -interest rates -inflation trends

Shondra reports to the management team that Italy has decided to increase the tax on all manufactured textiles. As a result, the company will pay more for the fabrics it orders. Which step in the global strategic planning process will help Shondra learn this information? -Analyze external environments. -Make tactical plans. -Define the company's mission. -Set corporate objectives.

Analyze external environments.

If there are four organizational levels in a company, there will be _________ strategic plans. -four -two -three -five

four

An itemized projection of revenues and expenses for a future time period is a: A. sales forecast. B. budget. C. marketing plan. D. strategic plan. E. contingency plan

Budget

Who is the ultimate manager of strategic planning and strategy making? -CEO -production manager -marketing manager -R&D manager

CEO

_________ screening uses countries as the basis for market selection. __________ screening uses a within-country analysis of consumer groups as the basis for market selection. -Country; Segment -Segment; Country

Country; Segment

Why do international companies facing high levels of change and uncertainty use scenario planning? -It helps them brainstorm new product ideas and take them to market. -It allows them to circumvent some of the pressures that prompt firms to undertake costly product adaptations. -It enables them to completely avoid and profit from market downturns. -It allows them to anticipate and prepare for opportunities and threats that cannot be fully predicted or controlled.

It allows them to anticipate and prepare for opportunities and threats that cannot be fully predicted or controlled.

Which of the following is a disadvantage of top-down planning?

It restricts initiative at lower levels of the organization

__________ refer to economic data that correlate highly with market demand for a product or service. -Trend analysis -Market indicators -Cluster analysis -Market factors

Market factors

________ refers to respondent's desire to please that leads to answers designed to please the interviewer rather than reflect the respondent's true beliefs. -Bandwagon -Confirmation -Attentional deficit -Social desirability

Social desirability

The process by which an organization determines where it is going in the future, how it will get there, and how it will assess whether and to what extent it has achieved its goals is known as

Strategic planning

_______________ uses market data to estimate future values.

Trend analysis

The analyst is mostly concerned with which of the following during the second screening?

Trend in inflation, interest rates, exchange rates

True or false: Corporate objectives help firms stay on course with their mission and vision.

True

True or false: Relatively few companies act on key international trends they observe.

True

True or false: The screening process is not complete without a personal visit to the market that is being evaluated.

True

An assessment conducted on the chain of interlinked activities of an organization or set of interconnected organizations, intended to determine where and to what extent value is added to the final product or service is known as

Value chain analysis

The final step in the screening process will generally include

a field trip

Carlo's company hired a contractor in Venezuela to design and build a plant, supply the process technology, provide the production inputs, and then train the operating personnel for the new facility. The contractor then turned the facility over to Carlo's company, which is based in California. This scenario is an example of __________. -a management contract -licensing -franchising -a turnkey project

a turnkey project

A company that wants to extend its products into more markets might look for ways to group geographic regions by common characteristics, such as number of cellphone users and availability of social media. To do so, the company should conduct a(n) ___________ analysis.

cluster

Which statistical technique divides objects into groups based on similarity? -equity analysis -trend analysis -SWOT analysis -cluster analysis

cluster analysis

An online platform that connects a company with a group of interested consumers, thereby allowing the company to collaborate with the consumers on researching a product, is an online research ___________.

community or communities

The fifth screen in the market screening process is based on ___________ forces. -competitive -legal -cultural -economic

competitive

Actions plans to help organizations reach their objectives are called _________. -vision statements -mission statements -competitive strategies -sales forecasts

competitive strategies

High-tech firms often do not want to grant a license because they fear the licensee will become a __________ when the agreement expires.

competitor

When a firm makes plans for the best- or worst-case scenarios or for critical events that could have a severe impact on the firm, the firm is doing __________ planning. -contingency -crisis -operational -tactical

contingency

Which mode of entry involves a company contracting with another to produce products to its specifications? -contracted manufacturing -turnkey project -management contract -licensing

contracted manufacturing

Which mode of entry is often called outsourcing? -turnkey project -management contract -licensing -contracted manufacturing

contracted manufacturing

The best strategy for competing internationally depends on the relative amount of pressure the company faces to adapt to its local markets and to achieve _______. -global dominance -multidomestic separation -cost reductions -regional integration

cost reductions

A __________ __________ survey is published by many countries and indicates products for which there is an established market.

country market

Nicole's company was not able to gather accurate data regarding the use of disposable paper plates in regions of India because the people surveyed did not understand what a paper plate was. This example demonstrates how a __________ (political/cultural) difference can affect research.

cultural

The fourth screening of the market screening process evaluates __________ forces.

cultural

If a market segment can be identified and measured, it is ___________. -actionable -definable -capturable -large

definable

Performance measures are done to

determine if the strategy and its implementation are proceeding successfully.

Objectives are typically more quantifiable as they progress ________ (down, up) through the organization.

down

Environmental scanning is mostly used

during the planning process to obtain information on opportunities and threats.

Both trend analysis and cluster analysis depend on ___________ data to estimate market demand.

economic

When companies analyze the external environmental forces for opportunities and threats, they are taking part in __________ scanning.

environmental

The Triffin paradox suggests that

eventually, reserve currencies will run deficits, which will lead to lack of confidence in the currency

Which of the following is a nonequity-based mode of entry that requires the least amount of investment and is relatively free of risk? -exporting -contracted manufacturing -franchising -turnkey projects

exporting

The balanced score card approach can help a firm monitor progress in achieving strategic objectives across all of the following dimensions EXCEPT _________. -external -financial -internal -customer

external

Market __________ are economic data that correlate highly with market demand for a product or service.

factors

Many companies have moved toward a strategic planning approach with a _______ (more, less) structured format.

less

A contractual arrangement that allows one firm to use the patents, trademarks, or processes of another for a fee is called a(n) __________ agreement.

licensing

Which mode of entry is a contractual agreement granting a firm the right to use any kind of expertise of another firm in exchange for a fixed sum plus a royalty? -licensing -contracted manufacturing -management contract -turnkey project

licensing

Under the contemporary strategic management approach to strategic planning, who is responsible for strategic thinking, planning, and implementation? -line management -the CEO -mid-level management -the head of planning

line management

The contents of a strategic plan today are more likely to reflect a _________ (short/long)-term perspective on resource allocation.

long

What mode of entry is an arrangement by which a firm provides management to another firm? -turnkey project -management contract -contract manufacturing -licensing

management contract

Market size, market growth rate, and e-commerce indexes are all part of

market indicators

The process of ___________ __________ is an application of environmental scanning in which the firm recognizes markets by using analysis of the environmental forces active in markets to eliminate the undesirable markets.

market screening

A broad statement that defines the purpose of a company's existence, including its business, objectives, and approach for reaching those objectives is called the ___________ statement. -strategic -mission -values -vision

mission

A trade ___________ is a market visit by a businessperson and/or a government official who is in search of business opportunities in a foreign country.

mission

Google's statement that it wants "to organize the world's information and make it universally accessible and useful" is the company's _______ statement. -values -mission -trade -strategic

mission

Historically, companies have tended to standardize their R&D and manufacturing strategies _________ (more, less) than their marketing strategies.

more

Strategic planning is _______ (more, less) specific as it moves down the organizational levels.

more

Equity-based modes of market entry have ________ risk but _________ control than nonequity-based modes of market entry. -more; more -more; less -less; more -less; less

more; more

If a company is facing strong pressure to adapt its product to the local market, the ___________ strategy is most effective. -global -regional -multidomestic -home replication

multidomestic

Which modes of entry into foreign markets has less risk but also less control of the products? -equity-based modes -nonequity-based modes

nonequity-based modes

The final step in the market screening process involves a _________. -trend analysis -financial report -market plan -personal visit

personal visit

The broad guidelines issued by a company's upper management for the purpose of assisting lower-level managers in handling recurring problems are called _____. -operational plans -tactical plans -policies -discretionary plans

policies

The third screening of the market screening process focuses on __________ forces. -political and legal -competitive -cultural -financial and economic

political and legal

To develop a strategy for reaching its objectives, a company must _______ them. -limit -quantify -describe -expand

quantify

A spot exchange rate is the

rate for exchange within two business days

Firms that pursue a global strategy typically offer ______________ (standardized or customized?) products and services.

standardized

The two conflicting strategic alternatives facing international firms are _________. -using local manufacturing; reducing costs -reducing costs; adapting to local markets -serving existing markets; adapting to local markets -serving existing markets; using local manufacturing

reducing costs; adapting to local markets

A prediction of future sales performance is called a _________. -budget -strategic plan -tactical plan -sales forecast

sales forecast

James told his manager that the sales figures for next quarter are predicted to increase by 4%, and they should show an overall increase of 7% for the year. James is providing his manager with a _________________ ________________.

sales forecast

Multiple, plausible stories about how decisions might affect a company's future are known as _________________.

scenarios

Which broad market screening approach is concerned with whether customers share similar wants and needs? -country -segment -multinational -domestic

segment

"If the Japanese yen is strengthening against the U.S. dollar, and the Japanese government wanted to boost exports, the Central Bank of Japan (CBJ) might well

sell massive amounts of Japanese yen in the FX markets

Some researchers say that _______ may be merely a stage in the evolution of international companies, and that increased globalization of sales and other value chain activities will occur over time as companies accumulate international experience. -semi-globalization -trade protectionism -isolationism -regionalization

semi-globalization

Michell's company delivered the following statement at the shareholder meeting. "The company plans to (1) grow our leadership in the manufacturing sector, (2) grow profits both nationally and internationally, and (3) become a leader in the service sector." This statement reflects the firm's course of action. What aspect of the strategic planning process does this statement reflect? -setting corporate objectives -writing a values statement -preparing a sales forecast -publishing an annual report

setting corporate objectives

Kelly wants to make sure the interviewer is happy with the information she provides, so Kelly talks only about the positive aspects of the product line and doesn't mention the three problem areas associated with the products. Kelly's desire to please the interviewer reflects the __________ __________ bias.

social desirability

Some grocery store chains have a Starbucks inside the store. This is a collaboration effort that is an example of a(n) __________ alliance.

strategic

Which mode of entry is a collaboration with competitors, customers, or suppliers and may be either a nonequity or equity form of entry? -licensing -joint venture -franchising -strategic alliance

strategic alliance

Which of the following can be either an equity-based or a nonequity-based mode of entry? -strategic alliance -contracted manufacturing -wholly owned subsidiary -turnkey project -joint venture

strategic alliance

The process by which an organization determines where it is going in the future, how it will get there, and how it will assess whether and to what extent it has achieved its goals is called ___________. -competitive advantage -the vision statement -strategic planning -the mission statement

strategic planning

Suppose a company has a goal of increasing sales by 20 percent. To achieve this goal, the company hires three new specialized sales reps and goes to four trade shows. The goal of increasing sales can best be described as a(n)_________ plan and the plans to hire new sales reps and attend trade shows are __________ plans. -strategic, tactical -tactical, operational -operational, tactical -operational, strategic

strategic, tactical

Compared to strategic plans, ____________ ____________ are more detailed and specific. (Enter one word in each blank.)

tactical (or operational) plans

Today, strategy consultants are urging companies to assign strategic planning to _________. -an executive board -teams of line and staff managers -the CEO -an independent consultant

teams of line and staff managers

Don's boss asked him to prepare a report that shows the activities in the warehouse from the moment raw steel enters the plant until the end product is shipped out to the customer. His boss wants to understand the activities that go into the product. In other words, Don's boss is seeking to understand _________. -market analysis -the value chain -purchasing power parity -corporate mission

the value chain

Financial force such as inflation and taxation are considered uncontrollable because (single choice)

they are external forces beyond the influence of the firm, around which a manager can manage

Johanna's company has decided not to export to South Africa until the political instability found in parts of the country is under control. Which stage in the screening process helped the company make this decision? -first -- basic needs potential -second -- financial and economic forces -fourth -- cultural forces -third -- political and legal forces

third -- political and legal forces

A drawback of _________ planning is that it restricts initiative at the lower levels of the organization. -top-down -tactical -bottom-up -operational

top-down

Which type of planning begins at the highest level in the organization and continues downward? -tactical -top-down -operational -bottom-up

top-down

A firm facing strong pressure for local adaptation and strong pressure for cost reduction should pursue a ________ strategy. -multidomestic -transnational -global -home replication

transnational

A regression technique that might suggest a pattern that could be used to predict future values would be used in _________ analysis. -SWOT -trend -factor -cluster

trend

What nonequity mode of entry involves the export of technology, management expertise, and capital equipment? -franchising -licensing -turnkey project -management contracts

turnkey project

A set of interlinked activities that adds value to the final product or service is called the _________ __________ .

value chain

An assessment conducted on the chain of interlinked activities of an organization or set of interconnected organizations, intended to determine where and to what extent value is added to the final product or service, is known as __________. -value chain analysis -top-down planning -strategic planning -competitive advantage

value chain analysis

Barry's boss asks him to prepare a description of where the company hopes to be in ten years if it is able to buy out its trading partner. His boss is requesting a __________ statement. -values -mission -vision -context

vision

The statement that provides a description of a company's desired future position, of what it hopes to accomplish if it can acquire the necessary competencies and successfully implement its strategy, is called the ___________ statement.

vision

Strategic planning answers all of the following questions EXCEPT __________. -how the firm will get to where it is going -where the firm is going in the future -why the firm has failed to achieve previous goals -how the firm will assess the extent to which it has achieved its goals

why the firm has failed to achieve previous goals