International Mgmt Exam 2

D: Globalization of competitors

Which of the following is the most common reactive reason for a firm to extend its operations overseas? A: Tax incentives B: Resource access and cost savings C: Economies of scale D: Globalization of competitors

A: Matrix

A ___________ structure is a hybrid organization of overlapping responsibilities. It is developed to combine geographic support for both global integration and local responsiveness. A: Matric B: Integration C: Global Functional D: Differentiaition

Organizational Formality

A cultural difference that can significantly affect cross-border alliances

B: Product

A global ______________ structure represents a single product (or product line) represented by separate divisions. A: SBU B: Product C: Geographic D: Functional

Matrix Structure

A hybrid organization of overlapping responsibilities

Strategic Business Unit

A self-contained business within a company with its own functional departments and accounting systems

Globalization

A specific strategy that treats the world as one market by using a standardized approach to products and markets is called

A: two Venezuelan companies sharing ownership of a company in Venezuela

All of the following would be examples of international joint ventures EXCEPT ________. A: two Venezuelan companies sharing ownership of a company in Venezuela B: two Japanese companies sharing ownership of a company in Canada C: a Danish company sharing ownership with a South African company in South Africa D: a government-owned company from China sharing ownership with an Australian company in Panama

Non-equity strategic alliances

Alliances that are carried out through contract rather than ownership sharing

Born- Global

An organization running its operations and opening subsidiaries worldwide right from the beginning.

D: Comparative advantage

Futura-Core Technologies, an electronics manufacturing firm, has advantages in financial capability and sustainability, but a disadvantage in speed of innovation. It is also at a disadvantage relative to Core-Dynamix Technologies, another electronics manufacturing firm, in important factors such as manufacturing capability and adaptability to market conditions. Which of the following terms best describes Futura-Core's abilities in comparison to Core-Dynamix? A: Competitive advantage B: Absolute Advantage C: Collective bargaining D: Comparative advantage

Environmental Assessment

Includes environmental scanning and continuous monitoring to keep abreast of variables around the world that are pertinent to the firm

B: Differentiation

No matter what the stage of internationalization, a firm's structural choices always involve two opposing forces: _____________ and integration. A: strategy B: differentiation C: function D; globalization

Concessions and Agreement

Occurs most likely the last stage of negotiation

B: Panera Bread executives want fast access to the Asian market without a significant investment of capital.

Panera Bread is a chain of cafes serving sandwiches, soups, and freshly baked breads. The company began in 1981 with stores primarily located along the east coast of the United States. Since then, the firm has expanded to over 1,300 locations throughout the United States and Canada. The firm has strong earnings and has been designated by Business Week as a "Significant Growth Company." Panera Bread executives are considering the idea of expanding globally by opening cafes in Asia through a franchising strategy. Which of the following, if true, supports the argument that Panera Bread should expand into Asia through franchising? A:The Panera Bread menu changes rapidly, and each cafe's artisan bread bakers receive regular training on new recipes. B: Panera Bread executives want fast access to the Asian market without a significant investment of capital. C: Panera Bread executives want to test the Asian market with a short-term commitment that allows them to make quick profits. D: The Panera Bread mission is to make excellent bread available to customers around the world.

Strategic Alliances

Partnerships between two or more firms that decide they can better pursue their mutual goals by combining their resources as well as their existing distinctive competitive advantages

Differentiation

Refers to focusing on and specializing in specific markets

Nontask Sounding

Refers to general, polite conversation and informal communication before meetings

B: Extreme positions

Research in the United States indicates that during the final stage of negotiations, it is best to start with ________. A: Relationship Building B: Extreme Positions C: A holistic approach D: finalized formal contracts

D: Trade barriers

Roch, a Swiss chocolate company, recently opened a manufacturing unit in Spain. The purpose of this move was that Roch wanted to avoid Spain's high import tariffs. Which of the following reasons prompted Roch to open the manufacturing unit in Spain? A: Customer demand B: Globalization of competitors C: Growth opportunites D: Trade barriers

C: Non-equity strategic alliance

Runnerz Inc., a leading manufacturing and retail company that designs and develops footwear and apparel, has signed a contract with a particular courier service for managing the delivery process. The courier service is required to deliver goods from the factory to the warehouse, to customers, and also to collect customer payments for the goods. This is a typical example of a(n) ________. A: Turnkey operation B: Greenfield investment C: non-equity strategic alliacne D: international licensing agreement

C: Strategic Business Unit

SBU is a division known as: A: strategic business united B: strategic business universal C: strategic business unit D: standardized business unit

C: Instrumental Oriented

The ________ approach to conflict is being used when both parties negotiate on the basis of factual information and logical analysis. A: Effective oriented B: Individual oriented C: Instrumental oriented D: Expressive oriented

Relationship Building

The aspect of the negotiation process that will most likely occur on a continuous basis

Integration

The coordination of specific markets

Establishment of the company's mission

The first step of the planning phase of a strategic management process

Organization Structure

The formal arrangement of roles, responsibilities, and relationships within an organization

Strategy

The framework that managers apply to determine the competitive moves and business approaches that run the company

Centralized

The higher the level of the company at which managers make decisions, the more that organization is

Global Geographic Structure

The most common form of organizing foreign operations in which divisions are created to cover various regions

Globalization of competitors

The most common reactive reason for a firm to extend its operations overseas?

Choice of partner

The most important single factor determining IJV success or failure

Negotiation

The process by which two or more parties meet to try to reach an agreement regarding conflicting interests

Persuasion`

The stage of the negotiations process does hard bargaining begin?

Multinational, regional, and local

The three levels that firms should ideally perform global environmental analysis

Functional Structure

This structure is the ideal way to organize work when global integration is more important than local responsiveness and the industry structure encourages cost leadership.

C: Global functional structure

This type of structure is designed on the basis of the company's functions -production, marketing, finance, and so forth. Foreign operations are integrated into the activities and responsibilities of each department to gain functional specialization and economies of scale. . . A: Global product structure B: Matrix C: Global functional structure D: Strategic business structure

Cooperative Strategies

Transition mechanisms that propel the partners' strategies forward in a turbulent environment faster than would be possible for each company alone

D: Provisions of incentives

When Disney decided to build a park in Paris, the French government gave Disney prime farmland just outside the city limits. This is most likely an example of a firm expanding overseas due to ________. A: Globalization of competitors B: Home country regulations C: Restrictive trade barriers D: Provisions of incentives

D: Relationship Building

Which of the following aspects of negotiating is most closely associated with non-task sounding? A: Information exchange B: Final Agreement Stage C: Persuassion D: relationship building

A: creating economies of scale in tangible assets

Which of the following is a cooperative aspect of strategic alliances? A: creating economies of scale in tangible assets B: learning new intangible skills from alliance partners C: denying technological and learning initiative to partners D: accelerating diffusion of industry standards to erect barriers to entry

C: Persuassion

Which of the following stages of negotiations is most likely to take place immediately after the exchange of task-related information? A: Preparation B: Relationship Building C: Persuassion D: Concessions and agreement

D: Effective appeals

Which of the following types of appeals, typically used by Arabs, is based on emotions and subjective feelings? A: Factual Appeals B: Axiomatic Appeals C: Virtual Appeals D: Effective appeals

A: Cooperative Stratagies

________ are transition mechanisms that propel the partners' strategies forward in a turbulent environment faster than would be possible for each company alone. A: Cooperative strategies B: Options strategies C: Entry strategies D: Competitive strategies

D: Employee value proposition

________ is the conscious and active management of creating, disseminating, evolving, and applying facts, information, or skills acquired through experience or education, to strategic ends. A: Knowledge management B: Employee retention C: Business continuity management D: Employee value proposition