BUS331 - Ch.8

multidomestic

A _________ strategy allows a company to customize product offerings and marketing approaches to local conditions, whereby managers are able to gain market share or charge higher prices for their products.

standardized

A company chooses a global strategy when it wants to sell ______ products while maintaining the same basic marketing approach in all competitive markets.

importing

A company engaged in ______ sells products at home that are made abroad.

A joint venture

A fine food chain based in the U.S. reached out to a world-renowned chef and a popular French winery, and suggested that they go into business together in the U.S., France, and Belgium. What kind of agreement was the food chain suggesting?

a joint venture

A fine food chain based in the U.S. reached out to a world-renowned chef and a popular French winery, and suggested that they go into business together in the U.S., France, and Belgium. What kind of agreement was the food chain suggesting?

wholly owned foreign subsidiary

A manager of a medical durable equipment company decides to establish an operation in a foreign country independent of any local direct involvement. This manager is creating a ______.

multidomestic

A strategy that is customized and marketed to accommodate particular national conditions is a ______ strategy.

multidomestic

A strategy that is customized and marketed to accommodate particular national conditions is a _________ strategy.

existing division or business

The corporate-level strategy of related diversification means companies enter an industry that creates a competitive advantage for an organization's ______.

control

The downside of using the franchise strategy is that franchisers risk losing ______ over the way the franchisee operates the franchise.

global

The major disadvantage of pursuing a ___________ strategy is that by ignoring national differences, managers may leave themselves vulnerable to local competitors that differentiate their products to suit local tastes.

five forces model

The model that helps managers focus on the most important competitive forces in the external environment is the _______.

false

The planning process is designed solely to identify effective strategies.

has to give access to its technological know-how. risks losing control of its secrets.

The risks associated with licensing is that the company granting the license: (Choose all that apply.)

related

The strategy of entering of entering a new industry to create competitive advantage in one or more of the company's existing divisions is known as _______ diversification.

synergy

To pursue related diversification successfully, managers search for new businesses where they can create _______.

false

True or false: The international expansion strategy requiring the least foreign involvement, foreign investment, and risk comes from joint ventures.

True

True or false: The low-cost strategy drives down an organization's costs below those of its competitors. This strategy is aimed at serving a broad market.

related; unrelated

Using valuable skills among cooperating divisions to add value results from ______ diversification; using current strengths to turn around poorly performing companies in other industries can result from ______ diversification.

low-cost

What type of strategy allows a company to sell a product for less than their competitors and still make a profit?

multidomestic

When a company customizes its products and marketing to fit specific national conditions, it is following a ______ strategy.

related diversification

When a company decides to enter a new industry to gain a competitive advantage within one or more of the company's existing divisions, this is called ______.

diversification

When a company expands its business operations into a new industry in order to produce new kinds of goods or services, this is referred to as

franchising

When a corporation sells the rights to use its name and expertise to a foreign company in exchange for a lump sum of money, it is called . (Enter one word in the blank.)

vertical integration

When a soda pop company decides to expand by buying a bottling company, this is an example of forward ______.

risk and rewards

When an organization enters into a strategic alliance with a foreign company, they share ______.

little, if any, customization

When companies utilize a global strategy for international expansion, they will undertake _______ of their products to suit the specific needs of customers in different countries.

unrelated

When organizations move into a new industry that is not related to their current businesses, this is ______ diversification.

joint venture

When two or more companies form a strategic alliance to to jointly establish and share the ownership of a new business, it is a(n) ______.

Significant cost savings associated with not having to customize products and marketing approaches to different national conditions

Which is a major advantage of a global strategy?

They reduce rivalry They increase profits

Which of the following are features of successful business-level strategies? (Check all that apply)

Search for new businesses where they can add value to new products and businesses. Search for new businesses where they can use the existing skills and resources in their departments and divisions to create synergies.

Which of the following should managers do to pursue related diversification successfully?

Because they believe they can purchase a failing company and use their skills to turn it around so it performs better and adds value

Why might managers decide to pursue unrelated diversification?

few

With exporting, there are ______ risks involved compared to opening a manufacturing plant abroad.

hypercompetition

With the continuing threat of internet hacking, cybersecurity has become an enormous industry, with companies vying to convince the large, global companies that they can provide the best strategies for protection. This industry is characterized by permanent ongoing intense rivalry that has resulted from advanced technology. These conditions indicate _____ in this industry.

strategic

____ implementation is a five-step process.

synergy

_____ occurs when the value created by two divisions cooperating is greater than the value that would be created if the two divisions operated separately and independently.

bear the development costs associated with opening up

The advantage of licensing is that the licenser does not have to ______ in a foreign country.

that the franchiser does not have to bear the development costs

The advantage to franchising is ______.

franchising

Selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits is called ______.

licensing

Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee is ______.

customization of product offerings and marketing approaches

An advantage of a multidomestic strategy is ______.

the company has more control over what is being produced and sold

An advantage of a strategic alliance for a U.S.company over a license or franchise is ______.

strategic alliance

An agreement in which managers share their organization's resources knowledge, and skills with a foreign company is a(n) ______.

the level of the company's involvement abroad increases

The advantage of a strategic alliance is that ______.

the licenser does not have to bear the development costs

The advantage of licensing associated with opening up in a foreign country is that ______.

backward vertical

If a brewery decides to expand by buying the farms that produce the ingredients, this is an example of ______ integration.

synergy

If two divisions of a diversified company can use the same manufacturing facilities and share resources, this is an example of ______.

global; multidomestic

Managers need to decide to what extent the organization should customize its products for different national conditions. The product can be standardized in all markets in which the organization competes; this is called a ______ strategy. If the company customizes its products and marketing tactics to different national conditions, it is called a ______ strategy.

to what extent should the organization customize its products to different national conditions?

Managers of any organization that needs to sell its products abroad should ask ______.

differentiation

Managers uses a ____ strategy to distinguish their products from those of their competitors by focusing on characteristics such as design, quality, and after-sale service.

reduced

One characteristic of a joint venture is that risk is ______.

companies do not have to build manufacturing companies abroad

One reason that few risks are associated with exporting is that ______.

a strategic alliance

One way to overcome the loss of control problems associated with exporting, licensing, and franchising is to expand by means of ______.

charge a higher price

Organizations that successfully pursue a differentiation strategy may be able to ______.