Chapter 12

The district manager wanted to be able to run his part of the company as a business. Obviously he was already running part of a business, so what did he mean by that?

a. He did not feel that he was really running the business but rather implementing decisions made by others who were not as familiar with his market as he was.

In the context of organizational cultures, which of the following is true of a wolf culture?

a. It centers on relentless pursuit with highly motivated employees working overtime.

Which of the following is an advantage of adopting a home replication strategy?

a. It is relatively easy to implement

Which of the following is a disadvantage of adopting a home replication strategy?

a. It often lacks local responsiveness

Which of the following is a disadvantage of adopting a home replication strategy? Select one:

a. It often lacks local responsiveness.

In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a home replication strategy?

a. Knowledge is developed at the center and transferred to subsidiaries.

Why do you think Kotler made it a point to let the viewer know that the district manager who was addressing the board was a highly regarded, senior person in the industry?

a. To better explain their surprise that he was allowed to speak to the board of directors

Altonland Inc., a pharmaceutical company based in the United States, generally appoints a U.S. national as the head of its foreign subsidiaries for the first few years after a subsidiary is established. The company has been following this practice from the time it started its overseas operations. The given scenario illustrates:

a. a global standardization strategy. d. a localization strategy. THESE ARE WRONG ANSWERS

Companies following a localization strategy differ from companies following a home replication strategy in that the companies following a localization strategy:

a. develop and retain knowledge within each subsidiary.

Widget Corp., a manufacturing firm in Lithuania, exports its manufactured tools to Wales. To protect its domestic firms, the Government of Wales imposes a 20 percent tax on the tools imported from Widget Corp. Therefore, Widget Corp. is subject to:

a. formal institutional frameworks erected by the host-country government.

Burger Mart, a fast food franchise in the U.S. is famous for its unique recipes that are a combination of a variety of spices. Their products are very popular in the U.S. They open a new outlet in Germany. They do not change their menu or their recipes as their menu and products are already popular in the U.S. Based on the integration-responsiveness framework, the strategy used by Burger Mart is a(n) _____.

a. home replication strategy

The global matrix structure supports the goal of the transnational strategy, but in practice it is often difficult to deliver because:

a. managers have to deal with two bosses who are often in conflict.

Multinational enterprises that engage in a _____ strategy promote global learning and diffusion of innovations in multiple ways.

a. transnational

How could headquarters determine which local manager has the best feel for opportunity?

b. All of these choices

For what purpose was the district manager appealing to the board?

b. All of these choices.

Which of the following best explains Kotler's assertion that "all markets are local"?

b. All of these choices.

How could a company implement autonomy to the manager in a way that would limit the risks to the firm?

b. Both expect the manager to submit his plans to those higher in the chain of command, and expect the manager to be monitored to determine whether actual results being obtained are in line with those that were projected.

From a resource-based standpoint, a fundamental basis for competitive advantage is innovation-based firm heterogeneity. _____ virtually guarantees that there will be persistent heterogeneity in the solutions generated.

b. Decentralized R&D work performed by different teams around the world

Frolik Foods Inc., a fast food franchise in the United States, opens a new outlet in Germany. The franchise develops recipes in the U.S. and then transfers them to its outlets in Germany. Which of the following strategies is being used by Frolik Foods?

b. Home replication strategy

Which of the following is a leading problem with the international division organizational structure?

b. It does not give sufficient voice to foreign subsidiary managers relative to the heads of domestic divisions

Which of the following is an advantage of adopting a home replication strategy?

b. It focuses on host country. THIS IS WRONG ANSWER

In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a localization strategy?

b. Knowledge is developed and retained within each subsidiary.

_____ can be defined as the structures, processes, and systems that actively develop, leverage, and transfer knowledge.

b. Knowledge management

The two sets of pressures that multinational enterprises (MNEs) confront are _____.

b. cost reduction and local responsiveness

The two sets of pressures that multinational enterprises (MNEs) confront are _____. Select one:

b. cost reduction and local responsiveness

In the context of strategizing, structuring, and learning around the world, an implication for savvy managers will be to:

b. develop learning and innovative capabilities to leverage multinational presence as an asset.

Asset Sports, a sports equipment manufacturing company based in India, specializes in cricket equipment. It establishes a new manufacturing plant in Brazil that specializes in soccer equipment. Based on the integration-responsiveness framework, the strategy adopted by Asset Sports is called a(n) _____.

b. localization strategy

Asset Sports, a sports equipment manufacturing company based in India, specializes in cricket equipment. It establishes a new manufacturing plant in Brazil that specializes in soccer equipment. Based on the integration-responsiveness framework, the strategy adopted by Asset Sports is called a(n) _____. Select one:

b. localization strategy

Unlike a transnational strategy, a global standardization strategy involves:

b. the joint development and sharing of knowledge worldwide. THIS IS WRONG ANSWER

Which of the following best argues against Kotler's assertion that "all markets are local"?

c. A firm can be profitable if it finds commonalities among various countries and thus aim for volume that will permit economies of scale.

What was the key to granting greater autonomy to local managers who were willing to go out on a limb?

c. Accountability

Which of the following statements is true of a geographic area structure?

c. It encourages the fragmentation of the multinational enterprises into fiefdoms.

Which of the following is a disadvantage of a global product division structure?

c. It results in the suffering of local responsiveness.

Which of the following is a disadvantage of adopting a global standardization strategy?

c. It sacrifices local responsiveness.

In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a global standardization strategy?

c. Knowledge is mostly developed and retained at the center and key locations.

_____ means reacting to different consumer preferences and host-country demands.

c. Local responsiveness

Kotler discussed a plea by a district manager for IBM who was concerned about his Chicago market. Of the key terms from the chapter, which of the following best defines what that district manager was seeking?

c. Localization

Which of the following is an effect of adopting a local responsiveness strategy?

d. Costs of products and services are increased.

TrinkCan Inc., a soft drink company in Wales, establishes new branches in England, Australia, and the United States. To minimize its costs, the company uses similar packaging, distribution, and promotion across all the countries. According to the integration-responsiveness framework, which of the following strategies is used by TrinkCan?

d. Global standardization strategy

Which of the following is true of a localization strategy?

d. It is effective when pressures for cost reductions are low.

In the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a transnational strategy?

d. Knowledge is developed jointly and shared worldwide.

Multinational enterprises appoint home-country nationals as the head of a foreign subsidiary because the home-country nationals:

d. focus on implementing a localization strategy. THIS IS WRONG ANSWER