International Business Final 1-60

According to the text, the firms ultimate manager of strategic planning is the firms

A) Chief Executive Officer

According to the text, the strategic planning process provides a formal structure in which managers will do the following:

A) define the company's business and mission

Knowledge that an individual has that is easy to express clearly in words. pictures, or formulas is known as

A) explicit

The practices that organizations and their managers use for identifying, creating, acquiring, developing, dispersing, and exporting competitively value knowledge is known as

A) knowledge management

Which of the following is correct regarding the skills of competencies a company must develop in order to achieve a sustainable competitive advantage

A) they are difficult to substitute for.

According to the text, which of the following is the goal of value chain analysis?

A) to enable managers to identify which set of activities it will do itself in which it will outsource.

According to the text, when the managers are analyzing the corporate controllable variables, the three key questions managers must address about their business include

A) who are the companies target customers?

Of the following are correct about international strategy except:

B) International strategy is the basis for establishing a company's mission and vision.

A company's ability to achieve and maintain a unique and valuable competitive position both within a nation and globally, generating higher rates of profit than its competitors, is known as

B) competitive advantage.

To create a competitive advantage that is sustainable over time, the international company should try to develop competencies that

B) create value for customers and for which they are willing to pay.

According to the text, the strategic planning process provides a formal structure in which managers will do all the following except

B) formulate scenarios

According to the text, value chain analysis focuses primarily on what question(s)?

B) how will this customer value be created?

Which of the following is (not) correct regarding the skills of competencies a company must develop to achieve a sustainable competitive advantage?

B) they can be copyrighted or patented

International firms have found it necessary to institute formal global planning

B) to provide top management with a means to identify threats and opportunities worldwide.

According to the text, the strategic planning process provides a formal structure and which managers will do all the following except

C) implement strategies

Managers of international companies that are attempting to develop a competitive advantage face a formidable challenge because

C) managers are forced to make choices regarding what to do and what not to do.

Which of the following is incorrect about scenario analysis?

C) scenario planning helps to emphasize that the business environment is predictable and helps to emphasize that application of traditional perspectives when solving problems.

Managers of international companies that are attempting to develop a competitive advantage face a formidable challenge because

C) time, talent, and money are scarce.

A broad statement that defines the organizations purpose and scope is known as a

D) Mission statement

International strategy

D) The plan to help guide how A company makes choices about developing in deploying resources.

Which one of the following is correct about scenario analysis?

D) scenarios are intended to be plausible and challenging stories.

According to the text, strategic planning process provides a formal structure in which managers will

D) set corporate objectives

According to the text, when the international companies planning committee has completed the internal audit, it is ready to examine

D) the company's mission and vision

A description of a company's desired future position if it can't acquire the necessary competencies and successfully implement its strategy is there as a

D) vision statement

Which one of the following is correct about scenario analysis?

E) by anticipating the future and recognizing the warning signs of turbulence ahead, managers can develop more effective strategies.

To be effective, a companies international strategy

E) must be consistent among all the functions and activities of the company.

According to a survey by Bain & Company, the management tool with the highest reported levels of satisfaction among global executives is

E) strategic planning

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

E) strategic planning

Knowledge that an individual has but that is difficult to express clearly in words, pictures, or formulae, and therefore difficult to transmit to others is known as

E) tacit.

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

E) value chain analysis

A multidomestic strategy tends to be used when a company confronts pressures for local adaptation rather than cost-effectiveness.

False

Because large multinationals generate an average of nearly half of their revenues within their home region, some researchers have suggested that a regional strategy perspective is more appropriate than a global perspective.

False

Historically, more aspects of marketing have been standardized and coordinated worldwide by companies than has been the case for other value chain activities such as research and development and manufacturing.

False

Knowledge is that an individual has but that is difficult to express clearly in words, pictures, or formulas, and therefore difficult to transmit to others, it is called explicit knowledge.

False

Objectives must be quantified in order to be useful.

False

Policies are broad guidelines issued by upper management for the purpose of assisting lower level managers in handling unique problems.

False

Procedures are broad guidelines issued by upper management for the purpose of assisting lower level managers in handling non-reoccurring problems.

False

Repetition of the bottom-up or top-down planning process until all differences are reconciled is sequential planning.

False

Scenarios are forecasts that extrapolate from past data to make predictions

False

Scenarios are particularly useful approach for international companies that face high levels of change in uncertainty, because they allow management to anticipate and prepare for opportunities and threats by predicting and controlling for these developments.

False

The first step in the process of strategic planning is to define the companies business and mission

False

The ultimate managers of strategic planning and strategy making are the executive board of corporation

False

There is a growing tendency for firms to use strategic planners to devise the corporate plan, which is been handled to operations people for execution.

False

To creative a sustainable competitive advantage, an international company should try to develop competencies that are vulnerable, rare, difficult to imitate, and readily sustainable.

False

Two prominent features of the strategic plan our sales forecasts in the mission statement.

False

A global strategy tends to be used when a company faces strong pressures for reducing costs and limited pressure to adapt products for local markets.

True

According to a study by McKinsey & Company, most executives worldwide agreed that environmental, social, and business trends represent critical challenges for company strategy and performance.

True

An advantage of bottom-up planning is that the people responsible for attaining the goals are formulating them.

True

Companies have the potential to achieve competitive advantages through leveraging their organizational knowledge across national borders.

True

Companies pursuing a home replication strategy typically centralize product development functions in their home country and then transfer innovations to foreign markets to capture additional or value.

True

Contingency plans are developed in some firms for the best and worst case scenarios and for critical events.

True

International strategy helps firms to make choices about how to deploy scarce resources to achieve their international objectives

True

Objectives direct the firms course of action, maintain it within the boundaries of the stated mission, ensure its continuing existence.

True

Scenarios are multiple plausible stories for probable futures.

True

Strategic plans promote consistency of action among the firms managers worldwide and encourage them to consider the ramifications of their actions in the firms other geographic and functional areas.

True

Tactical plans are more detailed than strategic plans.

True

The broad statement that defines the purpose for a company's existence is the mission statement.

True

The objective of scenario building is to force executives to question their assumptions about the environments in which the company operates in incorporate into their planning the uncertainties that might profoundly affect their strategic an operational performance around the world

True

Value chain analysis is 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.

True

When developing in assessing strategic alternatives, it is important to remember tech companies competing in international markets confront two opposing forces; reduction of costs and adaptation to local markets.

True