Chapter 16, Chapter 17, Global MKTG Ch. 16, International Marketing - Chapter 16, Global MKTG CH. 17
Brazilian Carlos Ghosn is chief executive of: A) Nissan Motor (Japan). B) Pearson PLC (Great Britain). C) Ford Motor Company (USA). D) Pharmacia Corporation (USA). E) Atlas Copco AB (Sweden).
A) Nissan Motor (Japan).
The ability to speak foreign languages is one difference between managers born and raised in the United States and those born and raised elsewhere. Which is true and reflects the earlier statement? A) There are 200 million Chinese children studying English. B) There are 24 million American children studying Chinese. C) There are 200 million Indian children studying Chinese. D) Chinese managers study English as much as Chinese. E) There are equal numbers of American and Chinese children studying English.
A) There are 200 million Chinese children studying English.
Francisco Martínez is CFO of Comercial Mexicana SA, a retail chain in Mexico. Commenting on Walmart's entry into Mexico, Mr. Martínez notes, "I buy 20,000 plastic toys, and Walmart buys 20 million. Who do you think gets them cheaper?" Which strategic principles are evident in this comment? A) Walmart's buyer power and cost leadership B) Walmart's barriers to entry and differentiation C) Walmart's loose bricks and switching costs D) Walmart's focused differentiation and supplier power E) Walmart's discount policies for customers
A) Walmart's buyer power and cost leadership
According to David Whitwam, former CEO of Whirlpool, one must create an organization whose people are: A) adept at exchanging ideas. B) absolutely free of the "not-invented here" syndrome. C) constantly working together to identify best global opportunities. D) working together to solve the biggest global problems. E) able to adapt to systems across borders.
A) adept at exchanging ideas.
In the tech world, about 90% of the world's nearly one billion PCs run on Microsoft's operating systems and 80% use Intel's microprocessors. This represents which aspect of the Porter's five forces model? A) bargaining power of suppliers B) bargaining power of buyers C) threat of substitute products D) rivalry among competitors E) threat of new entrants
A) bargaining power of suppliers
Suppose you are a sales representative for Advanced Micro Devices (AMD) in Japan. You are trying to convince Toshiba to buy your company's superfast Opteron microprocessor for its new laptop computer. Toshiba's representative seems interested, but finally does not place an order. Confidentially, the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD. Thinking about Intel's role in this scenario, which of the following elements of the five forces model is evident here? A) barriers to entry B) bargaining power of suppliers C) bargaining power of buyers D) threat of substitute products E) threat of new entrants
A) barriers to entry
The key to maintaining competitive advantage, according to Dr. W.E. Deming as well as your textbook authors, is: A) being committed to constant improvement. B) being first to market with all products. C) outsourcing key components. D) challenging all market leaders. E) stressing low-price advantage in all areas.
A) being committed to constant improvement.
Volkswagen strategy to become the world's number one automaker by 2018 included all of the following except: A) build a U.S. plant, in Westmoreland, Pennsylvania. B) assemble cars at the plant in Chattanooga, Tennessee. C) increase production of Passat sedans in the United States. D) overtake Toyota to become the number one automaker. E) overtake GM to become the number one automaker.
A) build a U.S. plant, in Westmoreland, Pennsylvania.
Jaguar produced so few cars that it couldn't get volume discounts from components suppliers. Jaguar managers sometimes could not even determine the "fair" price for a particular part. In terms of Porter's competitive forces framework, Jaguar's strategic disadvantage stemmed from low: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
A) buyer power.
Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive. Considering the elements of the five forces model this is an example of: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
A) buyer power.
In the 1950s, Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios. Which strategy was Sony using to gain competitive advantage? A) collaboration B) layers of advantage C) changing the rules D) loose bricks E) engagement
A) collaboration
According to strategy expert Richard D'Aveni, the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena? A) cost/quality B) timing and know-how C) entry barriers D) deep pockets E) Olympics
A) cost/quality
In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena? A) cost/quality B) timing and know how C) entry barriers D) deep pockets E) sporting events
A) cost/quality
According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) global conditions.
A) factor conditions.
Intel's loose brick was: A) it's narrow focus on complex microprocessors for PCs. B) demand for non-PC products. C) getting into the Smartphone market. D) unbeatable in computer market. E) developing new chips incorporating 3D technology.
A) it's narrow focus on complex microprocessors for PCs.
Factors which determine suppliers' ability to gain leverage over industry firms include all of the following except: A) large numbers and relatively few in number. B) suppliers' products or services are important to user firms. C) suppliers' products or services are highly differentiated. D) alternative products do not threaten suppliers' business. E) buyers preferences are highly differentiated.
A) large numbers and relatively few in number.
Concepts such as "assembler value chains" and "downstream value chains" are associated with: A) lean production. B) the matrix structure. C) polycentric organizational designs. D) the global marketing audit. E) traditional assembly designs.
A) lean production.
An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a ________ strategy. A) loose bricks B) collaboration C) layers of advantage D) supplier power E) generic
A) loose bricks
Which of the following is not identified by Porter as one of the possible types of barriers to entry in an industry? A) loose bricks B) switching costs C) economies of scale D) product differentiation E) access to distribution channels
A) loose bricks
Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge? A) matrix structure B) international division structure C) geographic structure D) worldwide product division structure E) regional management center
A) matrix structure
The organization design in which an employee reports to both a country manager and a functional manager is a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.
A) matrix structure.
Dell's factories can assemble a complete PC in 3 minutes. With a build-to-order strategy at the heart of its business model, Dell's sales staff maintains close ties with customers. This approach represents which aspect of the Porter's five forces model? A) rivalry among competitors B) bargaining power of buyers C) threat of substitute products D) threat of new entrants E) bargaining power of suppliers
A) rivalry among competitors
42) Which of the following is not identified by Porter as one of the possible types of barriers to entry in an industry? A) loose bricks B) switching costs C) economies of scale D) product differentiation E) access to distribution channels
Answer: A
43) In the tech world, about 90 percent of the world's nearly one billion PCs run on Microsoft's operating systems and 80 percent use Intel's microprocessors. This represents which aspect of the Porter's five forces model? A) bargaining power of suppliers B) bargaining power of buyers C) threat of substitute products D) rivalry among competitors E) threat of new entrants
Answer: A
44) In 2001, Compaq Computer CEO Michael Capellas announced that his company would concentrate on selling software and services instead of hardware. Suppose WorldCorp passes up the chance to buy software from Compaq because it has been a long time customer of IBM. As described here, WorldCorp's decision is based on: A) economies of scale. B) switching costs. C) loose bricks. D) access to distribution channels. E) product differentiations.
Answer: A
45) Jaguar produced so few cars that it couldn't get volume discounts from components suppliers. Jaguar managers sometimes could not even determine the "fair" price for a particular part. In terms of Porter's competitive forces framework, Jaguar's strategic disadvantage stemmed from low: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
Answer: A
46) Wal-Mart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Wal-Mart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Wal-Mart deems it offensive. Considering the elements of the five forces model this is an example of: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
Answer: A
47) Suppose you are a sales representative for Advanced Micro Devices (AMD) in Japan. You are trying to convince Toshiba to buy your company's superfast Opteron microprocessor for its new laptop computer. Toshiba's representative seems interested, but finally does not place an order. Confidentially, the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD. Thinking about Intel's role in this scenario, which of the following element of the five forces model is evident here? A) barriers to entry B) bargaining power of suppliers C) bargaining power of buyers D) threat of substitute products E) threat of new entrants
Answer: A
49) Francisco Martínez is CFO of Comercial Mexicana SA, a retail chain in Mexico. Commenting on Wal-Mart's entry into Mexico, Mr. Martínez notes, "I buy 20,000 plastic toys, and Wal-Mart buys 20 million. Who do you think gets them cheaper?" Which strategic principles are evident in this comment? A) Wal-Mart's buyer power and cost leadership B) Wal-Mart's barriers to entry and differentiation C) Wal-Mart's loose bricks and switching costs D) Wal-Mart's focused differentiation and supplier power E) Wal-Mart's discount policies for customers
Answer: A
58) The key to maintaining competitive advantage, according to Dr. W.E. Deming as well as your textbook authors, is: A) being committed to constant improvement. B) being first to market with all products. C) outsourcing key components. D) challenging all market leaders. E) stressing low price advantage in all areas.
Answer: A
65) An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a ________ strategy. A) loose bricks B) collaboration C) layers of advantage D) supplier power E) generic
Answer: A
69) In the 1950s, Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios. Which strategy was Sony using to gain competitive advantage? A) collaboration B) layers of advantage C) changing the rules D) loose bricks E) engagement
Answer: A
70) According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) global conditions.
Answer: A
75) In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena: A) cost,quality. B) timing and know how. C) entry barriers. D) deep pockets. E) sporting events.
Answer: A
77) According to strategy expert Richard D'Aveni, the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena? A) cost,quality B) timing and know-how C) entry barriers D) deep pockets E) Olympics
Answer: A
41) According to Porter, the nature of the interaction between potential industry entrants, buyers, substitute products, suppliers, and rival firms determines A) whether or not the government will launch an antitrust investigation. B) the industry's profit potential in terms of long-run return on invested capital. C) whether a country can generate a balance of payments surplus. D) whether a country can create a comparative advantage in the production of differentiated products. E) whether a country can generate income by innovation.
Answer: B
50) Gillette markets its flagship MACH3 razor in more than 100 countries around the world. The MACH3 is available virtually everywhere that consumers shop for personal-care products, because of its advanced 3-blade design, the MACH3 typically costs more than other wet-shaving systems. Which generic strategy is evident in Gillette's global marketing effort of MACH3? A) cost leadership B) differentiation C) cost focus D) focused differentiation E) consumer focus
Answer: B
51) Consumers pay a premium for an iPod digital music player from Apple Computer. The iPod is characterized by distinctive styling and superior ease of use, Apple currently commands about 80 percent of the market for digital music players. Which of Porter's generic strategies best describes Apple's approach with its iPod? A) cost leadership B) differentiation C) cost focus D) focused differentiation E) consumer focus
Answer: B
59) Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of the competitive advantage framework developed by: A) W.E. Deming. B) Hamel and Prahalad. C) Porter. D) Drucker. E) D'Aveni.
Answer: B
61) Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of: A) building layers of advantage. B) loose bricks. C) changing the rules of engagement. D) collaborating. E) none of the above
Answer: B
67) When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be: A) searching for loose bricks. B) changing the rules of engagement. C) collaborating. D) building layers of advantage. E) innovating.
Answer: B
68) Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture airplanes under license to U.S. firms and also work as subcontractors for aircraft parts and systems. This type of effort is known as: A) searching for loose bricks. B) collaborating. C) building of layers of advantage. D) changing the rules of engagement. E) innovating.
Answer: B
76) Sony's PlayStation 3 (PS3) has a powerful chip that provides new levels of realism, PS3 also contains a Blu-Ray DVD player. However, the less complex, less expensive Nintendo Wii has been outselling Sony's game system by a margin of 3-to-1. Based on D'Aveni's model this is reflective of: A) cost,quality. B) timing and know how. C) entry barriers. D) loose bricks. E) deep pockets.
Answer: B
79) According to the hypercompetition model of competitive advantage, which of the following allows the firm to create an entirely new product or market? A) know-how advantage B) timing advantage C) outflanking D) switching costs E) countermoves
Answer: B
55) Rugman and D'Cruz have developed an alternative framework to Porter's five forces model. The framework, based on business networks, is called: A) the differentiation model. B) strategic intent. C) the flagship model. D) the hypercompetition model. E) the Rugman & D'Cruz model.
Answer: C
60) Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of Hamel and Prahalad's framework for: A) quality advantage. B) positioning. C) competitive innovation. D) marketing management. E) innovation leadership.
Answer: C
66) In the 1960s, Honda took advantage of Harley-Davidson's focus on the heavyweight segment of the motorcycle market by offering smaller models and, eventually, larger ones. According to the strategic intent model, Honda was using a ________ strategy. A) collaboration B) layers of advantage C) loose bricks D) generic E) supplier power
Answer: C
48) Porter's four generic strategies for achieving competitive advantage are: A) price determination, cost leadership, product differentiation, distribution savings B) cost leadership, product differentiation, cost challenger, product challenger C) price leadership, product differentiation, price challenger, cost differentiation D) cost leadership, product differentiation, cost focus, focused differentiation E) cost leadership, product differentiation, consumer differentiation, focused differentiation
Answer: D
52) Germany's Mittelstand companies have been extremely successful pursuing ________. A) cost leadership B) differentiation C) cost focus D) focused differentiation E) cost differentiation
Answer: D
53) Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry? A) cost leadership B) differentiation C) cost focus D) focused differentiation E) cost differentiation
Answer: D
54) Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry. If analyzed in terms of Porter's generic strategies framework, such companies might be said to be pursuing competitive advantage via: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer differentiation.
Answer: D
62) In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has: A) attribute diversity. B) marketing breadth. C) comparative advantage. D) layers of advantage. E) a "double diamond."
Answer: D
64) When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing: A) loose bricks. B) a "double diamond." C) attribute diversity. D) layers of advantage. E) buyer power.
Answer: D
71) According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) formation of European Union.
Answer: D
74) The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces. A) five forces model B) generic strategies C) strategic intent D) hypercompetition E) factor conditions
Answer: D
80) The "double-diamond" approach to national competitive advantage is a conceptual framework associated with: A) Michael Porter. B) Gary Hamel and C.K. Prahalad. C) Richard D'Aveni. D) Alan Rugman. E) Antonio Perez.
Answer: D
56) Which of the following is not an element of Rugman and D'Cruz's flagship model? A) key suppliers B) key customers C) key consumers D) selected competitors E) focused differentiation
Answer: E
57) The flagship model is evident in the strategies of all but one of the following businesses. A) Ford B) Volkswagen C) IKEA D) Benetton E) Microsoft
Answer: E
63) Caterpillar's attention was focused elsewhere when Komatsu made its first international entry into the Eastern European Market. Based on the strategic intent framework this is an example of: A) changing the rules. B) collaborating. C) comparative advantage. D) layers of advantage. E) loose bricks.
Answer: E
72) The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the players to undertake all of the following except: A) develop new products. B) improve existing one. C) lower costs and prices. D) develop new technologies. E) none of the above
Answer: E
73) Chance events play a role in shaping the competitive environment. Chance events are occurrences which include all but one of the following: A) major technological breakthroughs. B) wars and their aftermath. C) oil crisis. D) currency fluctuations. E) annual business meeting.
Answer: E
78) Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries? A) cost,quality B) timing and know-how C) entry barriers D) deep pockets E) buyer and supplier power
Answer: E
13) Rivalry among firms refers to all the actions taken by firms in the industry to improve their positions and gain advantage over each other.
Answer: FALSE
14) Michael Porter's four generic strategies for achieving competitive advantage are product differentiation, price leadership, promotion power, and distribution efficiency.
Answer: FALSE
19) Michael Porter's five forces model and Rugman and D'Cruz's flagship model are both based on the concept of corporate individualism.
Answer: FALSE
2) IKEA stores exteriors are painted bright blue and yellow: Denmark's national colors.
Answer: FALSE
27) The "layers of advantage" approach to global competitive innovation is based on using know-how developed by other companies.
Answer: FALSE
31) "Active competition for demanding customers in the home market keeps companies under pressure to constantly innovate." This statement is an integral part of Hamel and Prahalad's concept of "strategic intent."
Answer: FALSE
34) According to Michael Porter, chance plays no role in determining the competitive advantage of nations.
Answer: FALSE
36) According to Richard D'Aveni's model of "hypercompetition," successful companies are the ones that find sustainable competitive advantages.
Answer: FALSE
4) Competition in an industry tends to drive rates of return on invested capital up towards the level of "perfect competition."
Answer: FALSE
6) Unique product attributes represent a barrier to industry entry known as differentiation.
Answer: FALSE
9) Analyzed in terms of Porter's five forces model, Wal-Mart's ability to dictate terms to the music industry is one indication of the retail giant's supplier power.
Answer: FALSE
10) Microsoft and Intel are two companies that illustrate the concept of "bargaining power of suppliers" in Porter's five forces model of industry competition.
Answer: TRUE
11) In Michael Porter's model, "buyers" refers to manufacturers (e.g., GM) and retailers (e.g. Wal-Mart), rather than consumers.
Answer: TRUE
12) If suppliers have enough leverage over industry firms, they can raise prices high enough to significantly influence the profitability of their organizational customers.
Answer: TRUE
15) Michael Porter's generic strategy framework is derived from the basic types of competitive advantage and the scope of the target market served.
Answer: TRUE
16) Cost leadership advantage is based on a firm's position as the industry's low-cost leader in a broad market.
Answer: TRUE
17) According to the generic strategy framework, cost leadership is a sustainable source of competitive advantage if barriers exist that prevents competitors from achieving the same low costs.
Answer: TRUE
18) Maytag has been called "the Rolls-Royce of washers and dryers" and it can be said that it has achieved a competitive advantage by means of differentiation.
Answer: TRUE
20) Rugman and D'Cruz's development of the flagship model was influenced by their study of Japanese keiretsu.
Answer: TRUE
21) Rugman and D'Cruz cite Benetton as an example of a flagship firm that excels at building partnerships.
Answer: TRUE
22) Key suppliers, key customers, and key consumers are all elements of a flagship company's partner network.
Answer: TRUE
23) Few competitive advantages are long lasting.
Answer: TRUE
24) Benetton's success in the global fashion industry illustrates the flagship model.
Answer: TRUE
25) The Komatsu-Caterpillar saga is just one example of how more than the pursuit of generic strategies can shape global competitive battles.
Answer: TRUE
26) The central concept of the strategic intent model of competitive advantage is an obsession of winning.
Answer: TRUE
28) Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of "loose bricks."
Answer: TRUE
29) In the strategic intent model of competitive advantage, Canon's successful entry into the photocopier market is an example of changing the rules of engagement.
Answer: TRUE
3) The essence of marketing strategy is successfully relating the strengths of an organization to its environment.
Answer: TRUE
30) "Active competition for demanding customers in the home market keeps companies under pressure to constantly innovate." This statement is consistent with Michael Porter's thesis regarding the competitive advantage of nations.
Answer: TRUE
32) In 1989, Jollibee, the most popular fast-food operator in the Philippines, got an unexpected boost when the threat of a military coup prompted McDonald's to temporarily suspend operations.
Answer: TRUE
33) The strong rivalry in the U.S. market between Dell, Gateway, Hewlett-Packard, Apple, and other computer companies has helped make the United States a world leader in personal computers.
Answer: TRUE
35) Research by Morgan Stanley indicates that the United States is home to more companies with global competitive advantage than any other country.
Answer: TRUE
37) "Hypercompetition" is a term that describes a business environment of escalating rivalry characterized by rapid product innovation and short product life cycles.
Answer: TRUE
38) In a hypercompetitive business world, a company's previous sources of sustainable competitive advantage may be rendered obsolete.
Answer: TRUE
39) The Swatch Group is the world's second largest watchmaker. This shows that in the low-cost segment, brands compete on price and value.
Answer: TRUE
40) The digital revolution rendered Sony's core competencies in analog audio technology obsolete.
Answer: TRUE
5) "Switching costs" are one of the barriers to entry in Porter's five forces model.
Answer: TRUE
7) In many industries, the digital revolution has altered the nature of competition by increasing the cost for potential new entrants to an industry.
Answer: TRUE
8) Analyzed in terms of Porter's five forces model, online music file sharing services represent a threat to the music industry in the form of a substitute product.
Answer: TRUE
Inge G. Thulin is chief executive of: A) Nissan Motor (Japan). B) 3M (USA). C) Ford Motor Company (USA). D) Pharmacia Corporation (USA). E) Atlas Copco AB (Sweden).
B) 3M (USA).
Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of the competitive advantage framework developed by: A) W.E. Deming. B) Hamel and Prahalad. C) Porter. D) Drucker. E) D'Aveni.
B) Hamel and Prahalad.
Which global marketing expert recommends an organization design based on a "global superstructure" that views the world in terms of 30 regions? A) Paul Krugman B) Kenichi Ohmae C) Tom Peters D) Michael Porter E) Kazuo Inamori
B) Kenichi Ohmae
Which of the following has an American woman as the chief executive? A) Nissan Motor (Japan) B) PepsiCo (USA) C) Ford Motor Company (USA) D) Pharmacia Corporation (USA) E) Atlas Copco AB (Sweden)
B) PepsiCo (USA)
Indra K. Nooyi is chief executive of: A) Nissan Motor (Japan). B) PepsiCo (USA). C) Ford Motor Company (USA). D) Pharmacia Corporation (USA). E) Atlas Copco AB (Sweden).
B) PepsiCo (USA).
When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be: A) searching for loose bricks. B) changing the rules of engagement. C) collaborating. D) building layers of advantage. E) innovating.
B) changing the rules of engagement.
Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture airplanes under license to U.S. firms and also work as subcontractors for aircraft parts and systems. This type of effort is known as: A) searching for loose bricks. B) collaborating. C) building of layers of advantage. D) changing the rules of engagement. E) innovating.
B) collaborating.
Sony's Blu-ray DVD format has gained widespread acceptance. Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing ________ sales of traditional electronics products. A) increasing B) declining C) improving D) horizontal E) vertical
B) declining
Gillette markets its flagship MACH3 razor in more than 100 countries around the world. The MACH3 is available virtually everywhere that consumers shop for personal-care products; because of its advanced 3-blade design, the MACH3 typically costs more than other wet-shaving systems. Which generic strategy is evident in Gillette's global marketing effort of MACH3? A) cost leadership B) differentiation C) cost focus D) focused differentiation E) consumer focus
B) differentiation
Maytag has been called "the Rolls-Royce of washers and dryers." Maytag markets Neptune, a high-tech machine, at a substantially higher than regular washer price. This is an example of: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer focus.
B) differentiation.
Secondary shareholders include all of the following except: A) media. B) employees. C) local community groups. D) nongovernmental organizations. E) general business community.
B) employees.
In today's dynamic global competitive environment, organizations need to develop new forms of: A) ethnocentrism and myopia. B) flexibility, efficiency, and responsiveness. C) export department structure. D) self-reference criterion. E) geographic structure.
B) flexibility, efficiency, and responsiveness.
As a company's initial international business involvement becomes too much for a single manager or export department to handle, the next step is typically to establish a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.
B) international division structure.
Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of: A) building layers of advantage. B) loose bricks. C) changing the rules of engagement. D) collaborating. E) none of the above
B) loose bricks.
Intel achieved success by using "Intel Inside" advertising campaign and logo that appears on many brands of PCs. This is an example of barrier to entry classified as: A) new capacity. B) product differentiation. C) competitor response. D) new approaches to customer needs. E) distribution channels.
B) product differentiation.
Having established that the matrix is appropriate, management can expect the matrix to integrate the following competency on a worldwide basis: A) geographic knowledge. B) product knowledge and know-how. C) functional competence in finance, production and marketing. D) knowledge of customer or industry and its needs. E) All of the above are competencies.
B) product knowledge and know-how.
Under the geographical and product division structures, for the company with French origins, France is: A) the headquarter country market. B) simply another geographic market. C) European market. D) divisional market. E) product market.
B) simply another geographic market.
The country with the highest number of companies with Global Competitive Advantage is: A) the United Kingdom. B) the United States. C) Japan. D) France. E) Germany.
B) the United States.
One of the potential drawbacks of a regional management center is that: A) pan-regional coordination efforts can suffer. B) the cost can be prohibitive. C) the company may lose its "insider" advantage. D) regional management may take a one-sided approach when implementing corporate objectives. E) there is a lack of coordinated decision making.
B) the cost can be prohibitive.
According to Porter, the nature of the interaction between potential industry entrants, buyers, substitute products, suppliers, and rival firms determines: A) whether or not the government will launch an antitrust investigation. B) the industry's profit potential in terms of long-run return on invested capital. C) whether a country can generate a balance of payments surplus. D) whether a country can create a comparative advantage in the production of differentiated products. E) whether a country can generate income by innovation.
B) the industry's profit potential in terms of long-run return on invested capital.
According to the hypercompetition model of competitive advantage, which of the following allows the firm to create an entirely new product or market? A) know-how advantage B) timing advantage C) outflanking D) switching costs E) countermoves
B) timing advantage
In addition to "selling" their visions, top management at both Whirlpool and GE face the formidable task of building: A) their company stature. B) physical layout and design. C) a cadre of globally oriented managers. D) a cadre of loyal customers. E) access to distribution channels.
C) a cadre of globally oriented managers.
Management writers often use terms like ________ to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence. A) sprinklers B) fountains C) chimneys D) skyscrapers E) towers
C) chimneys
Organizations in order to be globally successful must be viewed as portfolio of: A) activities. B) businesses. C) competencies. D) products. E) policies.
C) competencies.
Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of Hamel and Prahalad's framework for: A) quality advantage. B) positioning. C) competitive innovation. D) marketing management. E) innovation leadership.
C) competitive innovation.
The advantages that a regional management center can offer a company include all of the following except: A) pan-regional decision making. B) coordinated regional planning. C) considerable cost saving. D) coordinated control. E) coordinated decision making.
C) considerable cost saving.
Which of the following does not describe the Toyota Production System (TPS)? A) jidoka B) 'just-in-time' C) fixed setup time D) built-in quality E) visualizing problems
C) fixed setup time
Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company. His reasons for this action included all of the following statements except: A) the need to have seamless communication. B) not to depend on a small group of people. C) impede information sharing. D) facilitate decision making. E) utilizing everybody's wisdom.
C) impede information sharing.
According to Prahalad and Hamel, a core competence has all of the following characteristics except: A) potential access to a wide variety of markets. B) a significant contribution to perceived customer benefits. C) it is easy for competitors to imitate. D) benefits to customers. E) it is difficult for competitors to imitate.
C) it is easy for competitors to imitate.
Taiwan's Acer prospered by following founder Stan Shih's strategy of approaching the world computer market from the periphery. By the time Acer was ready to target the United States in earnest, it was already the number one PC brand in key countries in Latin America, Southeast Asia, and the Middle East. This is an example of which component of competitive innovation? A) collaboration B) layers of advantage C) loose bricks D) generic E) supplier power
C) loose bricks
Primary stakeholders include all of the following except: A) top management. B) employees. C) media. D) suppliers. E) customers.
C) media.
When Brazilian Carlos Ghosn was installed as chief executive, he introduced two new words into Nissan's lexicon: A) beliefs and values. B) values and activities. C) speed and commitment. D) policies and speed. E) activities and commitment.
C) speed and commitment.
An important leadership task involves articulating all of the below mentioned points except: A) beliefs. B) values. C) status. D) policies. E) activities.
C) status.
Rugman and D'Cruz have developed an alternative framework to Porter's five forces model. The framework, based on business networks, is called: A) the differentiation model. B) strategic intent. C) the flagship model. D) the hypercompetition model. E) the Rugman & D'Cruz model.
C) the flagship model.
Which global company has dissolved its matrix structure in order to achieve "greater speed and efficiency by further focusing and flattening the organization"? A) Whirlpool B) Levi Strauss C) Pearson PLC D) ABB E) Gillette
D) ABB
Joseph Tripodi is Chief Marketing and Commercial Officer of: A) Gap (United States). B) Levi's (United States). C) L'Oreal (France). D) Coca-Cola (United States). E) SAP AG (Germany).
D) Coca-Cola (United States).
Del Vecchio, the Italian entrepreneur's business principles include all but one of the following: A) "Made in Italy" is important. B) Must cut costs to keep production at home. C) Invest in automation. D) Hire qualified personnel. E) Invest in Robots, not workers.
D) Hire qualified personnel.
Which of the following does not contribute to the establishment of an international division? A) Top management commitment that justifies an organizational unit headed by a senior manager. B) Complexity of international operations requires unit with authority to make its own decisions. C) Management recognizes the need for internal specialists. D) Management lacks desire to scan the globe for opportunities and threats. E) Pressure to assemble a staff that will take the responsibility to coordinate.
D) Management lacks desire to scan the globe for opportunities and threats.
Howard Stringer, a native of the United Kingdom, is Chairman of: A) Nissan Motor (Japan). B) Pearson PLC (Great Britain). C) Ford Motor Company (USA). D) Sony (Japan). E) Atlas Copco AB (Sweden).
D) Sony (Japan).
Lessons that are learned from Starbucks' company's cooperation with NGOs include all of the following except: A) don't wait for a crisis to collaborate. B) recognize that collaboration involves some compromise. C) think strategically about relationships with NGOs. D) appreciate the value of the NGOs dependence. E) understand that building relationships with NGOs takes time.
D) appreciate the value of the NGOs dependence.
Which of the following is not identified by Porter as one of the five forces that explains competition in an industry? A) threat of new entrants B) threat of substitute products or services C) bargaining power of suppliers D) bargaining power of competitors E) the competitive rivalry among current members
D) bargaining power of competitors
According to Carly Florina, former CEO of Hewlett-Packard, leadership is about: A) hierarchy. B) title. C) status. D) connecting. E) bragging.
D) connecting.
Porter's four generic strategies for achieving competitive advantage are: A) price determination, cost leadership, product differentiation, distribution savings. B) cost leadership, product differentiation, cost challenger, product challenger. C) price leadership, product differentiation, price challenger, cost differentiation. D) cost leadership, product differentiation, cost focus, focused differentiation. E) cost leadership, product differentiation, consumer differentiation, focused differentiation.
D) cost leadership, product differentiation, cost focus, focused differentiation.
Employee ability is emphasized in a lean production environment. Before being hired, people seeking jobs with Toyota participate in the Day of Work, an assessment test to determine who has the right mix of qualities. These qualities include all of the following except: A) dexterity. B) team attitude. C) problem solving. D) decision making. E) team work.
D) decision making.
Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry? A) cost leadership B) differentiation C) cost focus D) focused differentiation E) cost differentiation
D) focused differentiation
Germany's Mittelstand companies have been extremely successful pursuing: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) cost differentiation.
D) focused differentiation.
Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry. If analyzed in terms of Porter's generic strategies framework, such companies might be said to be pursuing competitive advantage via: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer differentiation.
D) focused differentiation.
The universal concerns for global companies established by the United Nations Global Compact consist of the following three dimensions: A) factor conditions, demand conditions, industry conditions. B) human rights, animal rights, and the environment. C) content domain, human conditions and animal rights. D) human rights, labor, and the environment. E) content domains, animal rights, and labor.
D) human rights, labor, and the environment.
The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces. A) five forces model B) generic strategies C) strategic intent D) hypercompetition E) factor conditions
D) hypercompetition
In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has: A) attribute diversity. B) marketing breadth. C) comparative advantage. D) layers of advantage. E) a "double diamond."
D) layers of advantage.
When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing: A) loose bricks. B) a "double diamond." C) attribute diversity. D) layers of advantage. E) buyer power.
D) layers of advantage.
Which of the following assumptions does not belong in a list of characteristics of lean production? A) labor is more costly than machines B) set up time can be reduced C) minimize inventory to cut costs, waste D) maximize backwards integration E) inspection to prevent defective production
D) maximize backwards integration
Which of the following does not belong in a list of mass production in an automobile company such as Ford? A) changing value chains B) use of moving assembly line C) organized production machinery D) outsource from supplier specialists E) each worker was able to do more than craft producers
D) outsource from supplier specialists
Boeing has reorganized its commercial transport design and manufacturing engineers from functional lines into a matrix organization. This new design is expected to have all but one of the following benefits: A) lower costs and quicken updates. B) facilitate problem solving. C) unite engineering and manufacturing processes. D) provide customer contacts. E) enhance product consistency.
D) provide customer contacts.
According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) formation of the European Union.
D) related and supporting industries.
The key to successful matrix management is ensuring that managers are able to: A) adopt a matrix design. B) adhere to matrix structure. C) maintain technical systems. D) resolve conflicts and achieve integration. E) preserve existing organizational culture.
D) resolve conflicts and achieve integration.
Several factors can create intense rivalry among firms. These factors include all of the following factors except: A) firms focus on market share at the expense of others. B) firms feel pressure due to fixed costs and produce at full capacity. C) lack of differentiation in products and services. D) upward pressure on prices and profitability. E) absence of switching costs for customers.
D) upward pressure on prices and profitability.
Hershey rolled out a new line of condensed-milk candies, Yo-man, specifically targeting premium candy segment in: A) India. B) Mexico. C) Japan. D) South Korea. E) China.
E) China.
The flagship model is evident in the strategies of all but one of the following businesses: A) Ford. B) Volkswagen. C) IKEA. D) Benetton. E) Microsoft.
E) Microsoft.
Which of the following is the best organization structure for global marketing? A) international division structure B) matrix C) geographic structure D) worldwide product division structure E) There is no single "best" structure.
E) There is no single "best" structure.
The automobile industry has become fiercely competitive on a global basis. The initial success of foreign automakers in the United States was due to all of the following reasons except: A) reluctance of U.S. manufacturers to design high-quality cars. B) inability of U.S. manufacturers to manufacture high-quality cars. C) reluctance of U.S. manufacturers to make inexpensive small cars. D) bigger cars meant bigger profits for U.S. manufacturers. E) U.S. manufacturers did not realize drivers' preferences.
E) U.S. manufacturers did not realize drivers' preferences.
In developing countries, globalization's opponents accuse companies of: A) undermining local cultures. B) placing intellectual property rights ahead of human rights. C) promoting unhealthy diets and unsafe food technologies. D) pursuing unsustainable consumption. E) all of the above
E) all of the above
Chance events play a role in shaping the competitive environment. Chance events are occurrences which include all but one of the following: A) major technological breakthroughs. B) wars and their aftermath. C) oil crisis. D) currency fluctuations. E) annual business meeting.
E) annual business meeting.
Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries? A) cost/quality B) timing and know-how C) entry barriers D) deep pockets E) buyer and supplier power
E) buyer and supplier power
The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the players to undertake all of the following except: A) develop new products. B) improve existing products. C) lower costs and prices. D) develop new technologies. E) change the rules of engagement.
E) change the rules of engagement.
The visionary strategy of the Chief Executive Officer of Volkswagen which included switching the German plants entirely to the new model, failed due to all but one of the following reasons: A) resistance on the part of German unions. B) confusion among American dealers about where it was made. C) investment of billions of dollars in Skoda autoworks in Czechoslovakia. D) investment in SEAT in Spain. E) continued demand for Beetle model in the United States.
E) continued demand for Beetle model in the United States.
Nike came under fire from critics who alleged poor working conditions in the factories that make the company's athletic shoes. This is an example of the demand for: A) labor unions. B) equal opportunity employment. C) higher wages. D) standards for working conditions. E) corporate social responsibility.
E) corporate social responsibility.
New entrants to an industry bring all of the following except: A) new capacity. B) desire to gain market share. C) desire to gain market position. D) new approaches to customer needs. E) decline in per-unit product costs.
E) decline in per-unit product costs.
In a socially responsible firm, employees perform all of the following except: A) conduct business in an ethical manner. B) pursue goals and policies that are in society's best interest. C) guided by moral principles. D) distinguish between right and wrong. E) develop their own core ideologies on moral principles.
E) develop their own core ideologies on moral principles.
In contrast to the lean producers, U.S. mass producers typically maintain operations that involve all of the following except: A) less mechanization. B) greater labor direct content. C) divide employees with no overlap. D) limited quality control. E) employee teamwork.
E) employee teamwork.
Which of the following is not an element of Rugman and D'Cruz's flagship model? A) key suppliers B) key customers C) key consumers D) selected competitors E) focused differentiation
E) focused differentiation
Which of the following is not the way U.S. auto mass producers operate? A) greater labor content B) less mechanization C) less flexible mechanization D) divide employees in discrete specialties E) lack of employee teamwork
E) lack of employee teamwork
Caterpillar's attention was focused elsewhere when Komatsu made its first international entry into the Eastern European Market. Based on the strategic intent framework, this is an example of: A) changing the rules. B) collaborating. C) comparative advantage. D) layers of advantage. E) loose bricks.
E) loose bricks.
The differences between lean producers and U.S. mass producers is in the way they deal with all of the following groups except: A) dealers. B) distributors. C) customers. D) suppliers. E) managers.
E) managers.
A company with headquarters in Europe and operational units in Canada, the United States, and Mexico would be well advised to consider establishing a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.
E) regional management center.
A company with headquarters in the United States and operational units in the Netherlands, France, Italy, and Spain would be well advised to consider establishing a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.
E) regional management center.
The characteristics of home demand for a firm's products or services include all but one of the following: A) the composition of home demand. B) the size of the home demand. C) pattern of the growth of the home demand. D) means by which the home demand pushes or pulls foreign markets. E) the size of the competitors share of the home demand.
E) the size of the competitors share of the home demand.
In the fast changing, competitive environment, new global realities are emerging, which includes all of the following needs except: A) to be cost effective. B) to be customer driven. C) to deliver best quality. D) to deliver quickly. E) to deliver success.
E) to deliver success.
"Hypercompetition" refers to companies that are successful and find sustainable competitive advantages.
False
A CEO has to look at the entire global economy and then put the company's resources where they will capture the biggest market share of every region.
False
A firm that has the skills to be a "first mover" and arrive first in the market has achieved a know-how advantage.
False
Analyzed in terms of Porter's five forces model, Walmart's ability to dictate terms to the music industry is one indication of the retail giant's supplier power.
False
Competition in an industry tends to drive rates of return on invested capital up towards the level of "perfect competition."
False
Corporate social responsibility (CSR) refers to a company's obligation to pursue goals and policies that are in a company's best interest.
False
In the case of Volkswagen, dealers are its key consumers while individual car buyers are its key consumers.
False
It is the number of domestic rivals, intensity of the completion as well as the quality of the competitors that make the difference
False
Michael Porter's five forces model and Rugman and D'Cruz's flagship model are both based on the concept of corporate individualism.
False
Michael Porter's four generic strategies for achieving competitive advantage are product differentiation, price leadership, promotion power, and distribution efficiency.
False
Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing declining sales of traditional electronics products, whereas Apple and Samsung have risen to prominence in the competitive landscape once dominated by the Chinese.
False
The "layers of advantage" approach to global competitive innovation is based on using know-how developed by other companies.
False
The U.S. mass producers focus on long-term income and return on investment, whereas Japanese see the process in terms of the short-term perspective.
False
The matrix organization requires fundamental changes in management behavior, organizational culture, and technical systems.
False
There is general agreement that the matrix design is the single best organization structure for global marketing.
False
1) IKEA, the global furniture powerhouse, faces increasing competition from hypermarkets, "do-it-yourself" retailers such as Wal-Mart and supermarkets that are expanding into home furnishings.
Green) Chapter 16 Strategic Elements of Competitive Advantage 1) IKEA, the global furniture powerhouse, faces increasing competition from hypermarkets, "do-it-yourself" retailers such as Wal-Mart and supermarkets that are expanding into home furnishings./ Answer: TRUE
According to D'Aveni, in today's business environment, short product life cycles, short product design cycles, new technologies, and globalization undermine market stability; thereby an acceleration of competitive forces takes place.
Trie
"Factor conditions" refers to a country's endowment with resources which may have been created or inherited.
True
"Switching costs" are one of the barriers to entry in Porter's five forces model.
True
A key issue in global organization is how to achieve balance between autonomy and integration.
True
A major disadvantage of the regional management center is its cost.
True
A potential disadvantage of the organization on product basis is that the local input from individual country managers may be ignored, with the result that products will not be sufficiently tailored to local markets.
True
A stakeholder is any group or individual that is affected by, or takes an interest in, the policies and practices adopted by an organization.
True
A useful way of gaining insight into competitors is through industry analysis.
True
According to Kenichi Ohmae's view of the world, there are 30 regions with populations ranging from 5 million to 20 million people. Based on this, China would be viewed as several distinct regions.
True
Analyzed in terms of Porter's five forces model, online music file sharing services represent a threat to the music industry in the form of a substitute product.
True
Apple's success with iPhone prompted Samsung and others to enter the market. This is an example of the "perfect competition."
True
As markets globalize, and as Japan opens its own market to more competition from overseas, more Japanese companies are likely to break from traditional organization patterns.
True
Before retiring at the end of 2008, Unilever Group Chief Executive Patrick Cescau wanted to reconnect the company with its heritage of sustainability and concern for the environment. This and other values reflect Unilever's philosophy of "doing well by doing good."
True
Being socially responsible is not only the right thing to do; it can distinguish a company from its industry peers.
True
By the early 2000s, Sony's vaunted innovation and marketing machine was faltering due to the unanticipated rapid consumer acceptance of flat-panel wide-screen TV sets.
True
Des Moines, Iowa-based Meredith Corporation participates in international markets by means of foreign licensing agreements that are administered by a copyrights and contracts manager.
True
Despite the fact that Starbucks is widely admired for forward-thinking management policies, Global Exchange pressed the company to further demonstrate its commitment to social responsibility by selling Fair Trade coffee.
True
During his years as chief executive of GE, Jack Welch discovered that many employees resisted his ideas about the need to globalize the company.
True
Hypercompetition" is a term that describes a business environment of escalating rivalry characterized by rapid product innovation and short product life cycles.
True
In Michael Porter's model, "buyers" refers to manufacturers (e.g., GM) and retailers (e.g. Walmart), rather than consumers.
True
In developing countries, globalization's opponents accuse companies of placing intellectual property rights ahead of human rights.
True
Indra Nooyi, chair and chief executive of PepsiCo, is among the corporate leaders who are not native to the headquarters country.
True
Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of "loose bricks."
True
Intel's loose brick was its narrow focus on complex microprocessors for PCs.
True
Management writers often use terms like silos, stovepipes, or chimneys to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence.
True
Maytag has been called "the Rolls-Royce of washers and dryers," and it can be said that it has achieved a competitive advantage by means of differentiation.
True
Michael Porter's generic strategy framework is derived from the basic types of competitive advantage and the scope of the target market served.
True
Microsoft and Intel are two companies that illustrate the concept of "bargaining power of suppliers" in Porter's five forces model of industry competition.
True
Nike came under fire from critics who alleged poor working conditions in the factories that make the company's athletic shoes.
True
Nokia's reversal of fortune at the hands of Apple and Google underscores the fact that today's executives must rethink the concept of the corporation if they wish to operationalize the concept of core competencies.
True
One of the Corporate Social Responsibility (CSR) initiatives by IKEA's primary carpet supplier in India is to sponsor bridge schools intended to reduce child labor in India's carpet industry.
True
One of the forces restraining the growth of global business and global marketing is resistance to globalization.
True
Product differentiation and brand loyalty "raise the bar" for would-be industry entrants who would be required to make substantial investments in research or advertising.
True
Research by Morgan Stanley indicates that the United States is home to more companies with global competitive advantage than any other country.
True
Rivalry among firms refers to all the actions taken by firms in the industry to improve their positions and gain advantage over each other.
True
Rugman and D'Cruz cite Benetton as an example of a flagship firm that excels at building partnerships.
True
Subaru's assembly plant in Indiana is the first "zero landfill" auto plant in the United States
True
The Swatch Group is the world's second largest watchmaker. This shows that in the low-cost segment, brands compete on price and value.
True
The advantage of the mass producers lasted until the Japanese auto companies further revised the value chain and created lean production.
True
The development of the MP3 file format for music was accompanied by the increased popularity of peer-to-peer (p-to-p) file swapping among music fans.
True
The differences between lean producers and U.S. mass producers in the way they deal with their respective dealers, distributors, and customers are as dramatic as the differences in the way they deal with their suppliers.
True
The strong rivalry in the U.S. market between Dell, Gateway, Hewlett-Packard, Apple, and other computer companies has helped make the United States a world leader in personal computers.
True
Unique product attributes represent a barrier to industry entry known as differentiation.
True
When Hershey created its international division in 2005, J.P. Bilbrey, the division's senior vice president, noted that Hershey would no longer utilize the extension strategy of exporting its chocolate products from the United States.
True
Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company. He explained that the speed of innovation that is required to compete in the world mandates that we must have seamless communication.
True
According to David Whitwam, former CEO of Whirlpool, one must create an organization whose people are: A) adept at exchanging ideas, processes, and symptoms. B) absolutely free of the "not-invented here" syndrome. C) constantly working together to identify best global opportunities. D) working together to solve the biggest global problems. E) able to adapt to systems across borders.
a
According to Michael Porter's research on the competitive advantage of nations, human, physical, knowledge, capital, and infrastructure resources are all components of a country's: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) global conditions.
a
According to strategy expert Richard D'Aveni, the actions taken by Swatch in the global watch industry illustrate hypercompetitive dynamic maneuvering in which arena? A) cost/quality B) timing and know-how C) entry barriers D) deep pockets E) Olympics
a
An approach to competitive advantage that exploits weaknesses in competitors' narrow-focus strategies is called a ________ strategy. A) loose bricks B) collaboration C) layers of advantage D) supplier power E) generic
a
Brazilian Carlos Ghosn is chief executive of: A) Nissan Motor (Japan). B) Pearson PLC (Great Britain). C) Ford Motor Company (USA). D) Pharmacia Corporation (USA). E) Atlas Copco AB (Sweden).
a
Concepts such as "assembler value chains" and "downstream value chains" are associated with: A) lean production. B) the matrix structure. C) polycentric organizational designs. D) the global marketing audit. E) traditional assembly designs.
a
Dell's factories can assemble a complete PC in three minutes. With a build-to-order strategy at the heart of its business model, Dell's sales staff maintains close ties with customers. This approach represents which aspect of the Porter's five forces model? A) rivalry among competitors B) bargaining power of buyers C) threat of substitute products D) threat of new entrants E) bargaining power of suppliers
a
Factors which determine suppliers' ability to gain leverage over industry firms include all of the following except: A) large numbers and relatively few in number. B) suppliers' products or services are important to user firms. C) suppliers' products or services are highly differentiated. D) alternative products do not threaten suppliers' business. E) buyers preferences are highly differentiated.
a
Francisco Martínez is CFO of Comercial Mexicana SA, a retail chain in Mexico. Commenting on Walmart's entry into Mexico, Mr. Martínez notes, "I buy 20,000 plastic toys, and Walmart buys 20 million. Who do you think gets them cheaper?" Which strategic principles are evident in this comment? A) Walmart's buyer power and cost leadership B) Walmart's barriers to entry and differentiation C) Walmart's loose bricks and switching costs D) Walmart's focused differentiation and supplier power E) Walmart's discount policies for customers
a
In the 1950s, Sony licensed the technology for the transistor from Bell Labs and proceeded to become the world's leading manufacturer of portable radios. Which strategy was Sony using to gain competitive advantage? A) collaboration B) layers of advantage C) changing the rules D) loose bricks E) engagement
a
In the global watch industry, the success of the Swatch brand resulted in a manufacturing renaissance for Switzerland. In the strategic framework known as hypercompetition, Swatch's success is an example of interactions in which arena? A) cost/quality B) timing and know how C) entry barriers D) deep pockets E) sporting events
a
In the tech world, about 90% of the world's nearly one billion PCs use Microsoft's operating systems and 80% use Intel's microprocessors. This represents which aspect of the Porter's five forces model? A) bargaining power of suppliers B) bargaining power of buyers C) threat of substitute products D) rivalry among competitors E) threat of new entrants
a
Intel's loose brick was: A) it's narrow focus on complex microprocessors for PCs. B) demand for non-PC products. C) getting into the smartphone market. D) unbeatable in computer market. E) developing new chips incorporating 3D technology.
a
Jaguar produced so few cars that it couldn't get volume discounts from components suppliers. Jaguar managers sometimes could not even determine the "fair" price for a particular part. In terms of Porter's competitive forces framework, Jaguar's strategic disadvantage stemmed from low: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
a
Suppose you are a sales representative for Advanced Micro Devices (AMD) in Japan. You are trying to convince Toshiba to buy your company's superfast Opteron microprocessor for its new laptop computer. Toshiba's representative seems interested, but eventually does not actually place an order. Confidentially, the representative tells you that he is afraid that Intel will withhold shipments of its Pentium 4 if he does business with AMD. Thinking about Intel's role in this scenario, which of the following elements of the five forces model is evident here? A) barriers to entry B) bargaining power of suppliers C) bargaining power of buyers D) threat of substitute products E) threat of new entrants
a
The ability to speak foreign languages is one difference between managers born and raised in the United States and those born and raised elsewhere. Which of the following is true and reflects this statement? A) There are 200 million Chinese children studying English. B) There are 24 million American children studying Chinese. C) There are 200 million Indian children studying Chinese. D) Chinese managers study English as much as Chinese. E) There are equal numbers of American and Chinese children studying English.
a
The key to maintaining competitive advantage, according to Dr. W.E. Deming is: A) being committed to constant improvement. B) being first to market with all products. C) outsourcing key components. D) challenging all market leaders. E) stressing low-price advantage in all areas.
a
The organization design in which an employee reports to both a country manager and a functional manager is a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.
a
Walmart refuses to stock CDs bearing parental advisory stickers for explicit lyrics or violent imagery. Recording artists who want their recordings available at Walmart have the option of altering lyrics and song titles or deleting offending tracks. Likewise, artists are sometimes asked to change album cover art if Walmart deems it offensive. Considering the elements of the five forces model this is an example of: A) buyer power. B) supplier power. C) threat of new entrants. D) threat of substitute products. E) access to distribution channels.
a
Which form of organization design is capable of integrating geographic knowledge, product knowledge, functional competencies, and customer knowledge? A) matrix structure B) international division structure C) geographic structure D) worldwide product division structure E) regional management center
a
Which of the following is not identified by Porter as one of the possible types of barriers to entry in an industry? A) loose bricks B) switching costs C) economies of scale D) product differentiation E) access to distribution channels
a
According to Porter, the nature of the interaction between potential industry entrants, buyers, substitute products, suppliers, and rival firms determines: A) whether or not the government will launch an antitrust investigation. B) the industry's profit potential in terms of long-run return on invested capital. C) whether a country can generate a balance of payments surplus. D) whether a country can create a comparative advantage in the production of differentiated products. E) whether a country can generate income by innovation.
b
According to the hypercompetition model of competitive advantage, which of the following allows the firm to create an entirely new product or market? A) know-how advantage B) timing advantage C) outflanking D) switching costs E) countermoves
b
As a company's initial international business involvement becomes too much for a single manager or export department to handle, the next step is typically to establish a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.
b
Building layers of advantage, searching for loose bricks, changing the rules of competitive engagement, and collaborating are elements of the competitive advantage framework developed by: A) W.E. Deming. B) Hamel and Prahalad. C) Porter. D) Drucker. E) D'Aveni.
b
Caterpillar's attention was focused elsewhere when Komatsu made its first entry into the Eastern Europe and gained grounds. This is an example of: A) collaborating. B) loose bricks. C) changing the rules. D) layers of advantage. E) differentiation.
b
Having established that the matrix organizational structure is appropriate, management can expect to integrate the following competency on a worldwide basis: A) geographic knowledge. B) product knowledge and know-how. C) functional competence in finance, production and marketing. D) knowledge of customer or industry and its needs. E) All of the above are competencies.
b
In today's dynamic global competitive environment, organizations need to develop new forms of: A) ethnocentrism and myopia. B) flexibility, efficiency, and responsiveness. C) export department structure. D) self-reference criterion. E) geographic structure.
b
Indra K. Nooyi is chief executive of: A) Nissan Motor (Japan). B) PepsiCo (USA). C) Ford Motor Company (USA). D) Pharmacia Corporation (USA). E) Atlas Copco AB (Sweden).
b
Inge G. Thulin is chief executive of: A) Nissan Motor (Japan). B) 3M (USA). C) Ford Motor Company (USA). D) Pharmacia Corporation (USA). E) Atlas Copco AB (Sweden).
b
Intel achieved success by using the "Intel Inside" advertising campaign and logo that appears on many brands of PCs. This is an example of a barrier to entry classified as: A) new capacity. B) product differentiation. C) competitor response. D) new approaches to customer needs. E) distribution channels.
b
Intel's focus on designing complex, expensive microprocessors for PCs enabled competitors to develop cheaper chip sets for non-PC electronics devices. In the strategic intent model of competitive advantage, this is an example of: A) building layers of advantage. B) loose bricks. C) changing the rules of engagement. D) collaborating. E) none of the above
b
Maytag has been called "the Rolls-Royce of washers and dryers." Maytag markets Neptune, a high-tech machine, at a substantially higher than regular washer price. This is an example of: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer focus.
b
Mitsubishi Heavy Industries Ltd. and other Japanese companies manufacture airplanes under license to U.S. firms, and also work as subcontractors for aircraft parts and systems. This type of effort is known as: A) searching for loose bricks. B) collaborating. C) building of layers of advantage. D) changing the rules of engagement. E) innovating.
b
One of the potential drawbacks of a regional management center is that: A) pan-regional coordination efforts can suffer. B) the cost can be prohibitive. C) the company may lose its "insider" advantage. D) regional management may take a one-sided approach when implementing corporate objectives. E) there is a lack of coordinated decision making.
b
Secondary stakeholders include all of the following except: A) media. B) employees. C) local community groups. D) nongovernmental organizations. E) general business community.
b
Sony's Blu-ray DVD format has gained widespread acceptance. Sony, Sharp, Panasonic, and other Japanese manufacturers are all experiencing ________ sales of traditional electronics products. A) increasing B) declining C) improving D) horizontal E) vertical
b
The country with the highest number of companies with Global Competitive Advantage is: A) the United Kingdom. B) the United States. C) Japan. D) France. E) Germany.
b
The town of Impruneta in the Italian province of Florence, is a source of high-quality terracotta; the high iron content of the area's clay means that the finished pieces can withstand temperatures as low as ‒20 degrees Fahrenheit. Many artisan pieces are rolled by hand, including those imported in the United States by Seibert & Rice. This is an example of ________ resources available for competitive advantage of a business. A) knowledge B) physical C) human D) infrastructure E) capital
b
Under the geographical and product division structures, for the company with French origins, France is: A) the headquarter country market. B) simply another geographic market. C) a special unit of the European market. D) a divisional market in Europe. E) a product market in European Union.
b
When an organization assigns regional or worldwide product responsibility to its product divisions, there are several advantages except: A) manufacturing standardization can occur. B) products can be tailored to local market needs. C) can result in significant economies. D) can result in saving development costs. E) can help in integrating operations.
b
When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be: A) searching for loose bricks. B) changing the rules of engagement. C) collaborating. D) building layers of advantage. E) innovating.
b
Which global marketing expert recommends an organization design based on a "global superstructure" that views the world in terms of 30 regions? A) Paul Krugman B) Kenichi Ohmae C) Tom Peters D) Michael Porter E) Kazuo Inamori
b
Which of the following has an American woman as the chief executive? A) Nissan Motor (Japan) B) PepsiCo (USA) C) Ford Motor Company (USA) D) Pharmacia Corporation (USA) E) Atlas Copco AB (Sweden)
b
According to Prahalad and Hamel, a core competence has all of the following characteristics except: A) potential access to a wide variety of markets. B) a significant contribution to perceived customer benefits. C) it is easy for competitors to imitate. D) benefits to customers. E) it is difficult for competitors to imitate.
c
An important leadership task involves articulating all of the following points except: A) beliefs. B) values. C) status. D) policies. E) activities.
c
Building layers of advantage is one of the elements of Hamel and Prahalad's framework for: A) quality advantage. B) positioning. C) competitive innovation. D) marketing management. E) innovation leadership.
c
Canon introduced the first full-color copiers and the first copiers with "connectivity"-the ability to print images from such sources as video camcorders and computers. This Canon example shows how an innovative marketing strategy-with fresh approaches to the product, pricing, distribution, and selling leads to overall competitive advantage in the marketplace. This strategy can be classified under: A) collaborating. B) loose bricks. C) changing the rules. D) layers of advantage. E) differentiation.
c
In addition to "selling" their vision, top management at both Whirlpool and GE face the formidable task of building: A) their company stature. B) physical layout and design. C) a cadre of globally oriented managers. D) a cadre of loyal customers. E) access to distribution channels.
c
In the shipbuilding industry, Polish and Chinese shipyards offer simple, standard vessel types at low prices that reflect low production costs. This represents generic strategy related to: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) cost differentiation.
c
Management experts often use terms like ________ to describe an organization in which autonomous business units operate with their own agendas and a minimum of horizontal interdependence. A) sprinklers B) fountains C) chimneys D) skyscrapers E) towers
c
Many firms have gained competitive advantage by disadvantaging rivals through: A) cost leadership. B) differentiation. C) competitive innovation. D) focused differentiation. E) consumer differentiation
c
Organizations vary in terms of the size and potential of targeted global markets and local management competence in different country markets. Considering different factors and facts related to the constellation of pressures, which of the following statements is not accurate? A) Conflicting pressures may arise from the need for product and technology. B) No two organizations pass through similar stages. C) No two organizations arrive at precisely the same organizational pattern. D) Some patterns are common among different organizations. E) Conflicting pressures may arise from the need for better organization.
c
Organizations, in order to be globally successful, must be viewed as portfolio of: A) activities. B) businesses. C) competencies. D) products. E) policies.
c
Primary stakeholders include all of the following except: A) top management. B) employees. C) media. D) suppliers. E) customers.
c
Rugman and D'Cruz have developed an alternative framework to Porter's five forces model. The framework, based on business networks, is called: A) the differentiation model. B) strategic intent. C) the flagship model. D) the hypercompetition model. E) the Rugman & D'Cruz model.
c
Taiwan's Acer prospered by following founder Stan Shih's strategy of approaching the world computer market from the periphery. By the time Acer was ready to target the United States in earnest, it was already the number one PC brand in key countries in Latin America, Southeast Asia, and the Middle East. This is an example of which component of competitive innovation? A) collaboration B) layers of advantage C) loose bricks D) generic E) supplier power
c
The advantages that a regional management center can offer include all of the following except: A) pan-regional decision making. B) coordinated regional planning. C) considerable cost saving. D) coordinated control. E) coordinated decision making.
c
The issue of sustainability is central to this strategy concept: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer differentiation.
c
When Brazilian Carlos Ghosn was installed as chief executive, he introduced two new words into Nissan's lexicon: A) beliefs and values. B) values and activities. C) speed and commitment. D) policies and speed. E) activities and commitment.
c
Which of the following does not describe the Toyota Production System (TPS)? A) jidoka B) "just-in-time" C) fixed setup time D) built-in quality E) visualizing problems
c
Yong Nam, CEO of LG, recently stipulated that English would be required throughout the company. His reasons for this action included all of the following statements except: A) the need to have seamless communication. B) not to depend on a small group of people. C) impede information sharing. D) facilitate decision making. E) utilizing everybody's wisdom.
c
A nation's banking system, health care system, transportation system, and communications system, as well as the availability and cost of using these systems are considered as ________ resources available for competitive advantage of a business. A) knowledge B) physical C) human D) infrastructure
d
According to Carly Fiorina, former CEO of Hewlett-Packard, leadership is about: A) hierarchy. B) title. C) status. D) connecting. E) bragging.
d
According to Michael Porter's research on the competitive advantage of nations, Switzerland's large synthetic dye industry and the success of the Swiss pharmaceuticals can be explained in terms of: A) factor conditions. B) demand conditions. C) strategy, structure, and rivalry. D) related and supporting industries. E) formation of the European Union.
d
Boeing has reorganized its commercial transport design and manufacturing engineers from functional lines into a matrix organization. This new design is expected to have all of the following benefits except: A) lower costs and quick updates. B) facilitate problem solving. C) unite engineering and manufacturing processes. D) provide customer contacts. E) enhance product consistency.
d
Del Vecchio, the Italian entrepreneur's business principles include all but one of the following: A) "Made in Italy" is important. B) cutting costs to keep production at home. C) investing in automation. D) hiring qualified personnel. E) investing in Robots, not workers
d
Employee ability is emphasized in a lean production environment. Before being hired, people seeking jobs with Toyota participate in the Day of Work, an assessment test to determine who has the right mix of qualities. These qualities include all of the following except: A) dexterity. B) team attitude. C) problem solving. D) decision making. E) team work.
d
Germany's Mittelstand companies have been extremely successful pursuing: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) cost differentiation.
d
Howard Stringer, a native of the United Kingdom, is Chairman of: A) Nissan Motor (Japan). B) Pearson PLC (Great Britain). C) Ford Motor Company (USA). D) Sony (Japan). E) Atlas Copco AB (Sweden).
d
Hundreds of small companies such as Martin-Logan and Mark Levinson compete in the high-end audiophile segment of the consumer electronics industry. If analyzed in terms of Porter's generic strategies framework, such companies might be said to be pursuing competitive advantage via: A) cost leadership. B) differentiation. C) cost focus. D) focused differentiation. E) consumer differentiation.
d
In the terminology of the strategic intent framework for competitive advantage, a firm that establishes advantages in a number of different areas has: A) attribute diversity. B) marketing breadth. C) comparative advantage. D) layers of advantage. E) a "double diamond."
d
Joseph Tripodi is Chief Marketing and Commercial Officer of: A) Gap (United States). B) Levi's (United States). C) L'Oreal (France). D) Coca-Cola (United States). E) SAP AG (Germany).
d
Lessons that are learned from Starbucks' company's cooperation with NGOs include all of the following except: A) don't wait for a crisis to collaborate. B) recognize that collaboration involves some compromise. C) think strategically about relationships with NGOs. D) appreciate the value of the NGOs dependence. E) understand that building relationships with NGOs takes time.
d
Porter's four generic strategies for achieving competitive advantage are: A) price determination, cost leadership, product differentiation, distribution savings. B) cost leadership, product differentiation, cost challenger, product challenger. C) price leadership, product differentiation, price challenger, cost differentiation. D) cost leadership, product differentiation, cost focus, focused differentiation. E) cost leadership, product differentiation, consumer differentiation, focused differentiation.
d
Several factors can create intense rivalry among firms. These factors include all of the following factors except: A) firms focus on market share at the expense of others. B) firms feel pressure due to fixed costs and produce at full capacity. C) lack of differentiation in products and services. D) upward pressure on prices and profitability. E) absence of switching costs for customers.
d
The ________ framework was developed by Professor Richard D'Aveni to describe a business environment in which no form of competitive advantage can be sustained for long because of escalating and accelerating competitive forces. A) five forces model B) generic strategies C) strategic intent D) hypercompetition E) factor conditions
d
The key to successful matrix management is ensuring that managers are able to: A) adopt a matrix design. B) adhere to matrix structure. C) maintain technical systems. D) resolve conflicts and achieve integration. E) preserve existing organizational culture.
d
The universal concerns for global companies established by the United Nations Global Compact consist of the following three dimensions: A) factor conditions, demand conditions, industry conditions. B) human rights, animal rights, and the environment. C) content domain, human conditions and animal rights. D) human rights, labor, and the environment. E) content domains, animal rights, and labor.
d
When managers at Matsushita realized that cost advantages in TV production were often fleeting, they added quality and reliability advantages, thus establishing: A) loose bricks. B) a "double diamond." C) attribute diversity. D) layers of advantage. E) buyer power.
d
Which global company has dissolved its matrix structure in order to achieve "greater speed and efficiency by further focusing and flattening the organization"? A) Whirlpool B) Levi Strauss C) Pearson PLC D) ABB E) Gillette
d
Which of the following assumptions does not belong in a list of characteristics of lean production? A) labor is more costly than machines B) set up time can be reduced C) minimize inventory to cut costs and wastage D) maximize backwards integration E) inspection to prevent defective production
d
Which of the following does not belong in a list of mass production in an automobile company such as Ford? A) changing value chains B) use of the moving assembly line C) organized production machinery D) outsourcing from supplier specialists E) making each worker productive
d
Which of the following does not contribute to the establishment of an international division? A) An organizational unit should be headed by a committed senior manager. B) Complexity of international operations to make its own decisions. C) Recognition of the need for internal specialists. D) A lack of desire by management to scan the globe for opportunities and threats. E) Assembling a staff that will take the responsibility to coordinate.
d
Which of the following generic strategies best captures the way Harley-Davidson has achieved competitive advantage in the global motorcycle industry? A) cost leadership B) differentiation C) cost focus D) focused differentiation E) cost differentiation
d
Which of the following is not identified by Porter as one of the five forces that explains competition in an industry? A) threat of new entrants B) threat of substitute products or services C) bargaining power of suppliers D) bargaining power of competitors E) the competitive rivalry among current members
d
A company with headquarters in Europe and operational units in Canada, the United States, and Mexico would be well advised to consider establishing a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.
e
A company with headquarters in the United States and operational units in the Netherlands, France, Italy, and Spain would be well advised to consider establishing a(n): A) matrix structure. B) international division structure. C) geographic structure. D) worldwide product division structure. E) regional management center.
e
All of the following statements regarding Starbucks are true except: A) Starbucks offers health benefits to company employees. B) Starbucks partners can take part in Starbucks' stock option plan. C) Starbucks has the opportunity to be a different global company. D) Starbucks is a profitable company. E) Shareholders consider Starbucks' stock to be risky investment.
e
Caterpillar's attention was focused elsewhere when Komatsu made its first international entry into the Eastern European Market. Based on the strategic intent framework, this is an example of: A) changing the rules. B) collaborating. C) comparative advantage. D) layers of advantage. E) loose bricks.
e
Chance events play a role in shaping the competitive environment. Chance events are occurrences which include all of the following except: A) major technological breakthroughs. B) wars and their aftermath. C) oil crisis. D) currency fluctuations. E) annual business meeting.
e
Hershey rolled out a new line of condensed-milk candies, named Yo-man, specifically targeting the premium candy segment in: A) India. B) Mexico. C) Japan. D) South Korea. E) China.
e
In a socially responsible firm, employees perform all of the following except: A) conduct business in an ethical manner. B) pursue goals and policies that are in society's best interest. C) use moral principles as guidelines. D) distinguish between right and wrong. E) develop their own core ideologies.
e
In contrast to the lean producers, U.S. mass producers typically maintain operations that involve all of the following except: A) less mechanization. B) greater labor direct content. C) divide employees with no overlap. D) limited quality control. E) employee teamwork
e
In developing countries, globalization's opponents accuse companies of: A) undermining local cultures. B) placing intellectual property rights ahead of human rights. C) promoting unhealthy diets and unsafe food technologies. D) pursuing unsustainable consumption. E) all of the above
e
In the fast changing, competitive environment, new global realities are emerging, which include all of the following needs except: A) to be cost effective. B) to be customer driven. C) to deliver best quality. D) to deliver quickly. E) to deliver success.
e
New entrants to an industry bring all of the following except: A) new capacity. B) desire to gain market share. C) desire to gain market position. D) new approaches to customer needs. E) decline in per-unit product costs.
e
Nike came under fire from critics who alleged poor working conditions in the factories that make the company's athletic shoes. This is an example of the demand for: A) labor unions. B) equal opportunity employment. C) higher wages. D) standards for working conditions. E) corporate social responsibility.
e
The Rugman and D'Cruz's flagship model is evident in the strategies of all but one of the following businesses: A) Ford. B) Volkswagen. C) IKEA. D) Benetton. E) Microsoft.
e
The automobile industry has become fiercely competitive on a global basis. The initial success of foreign automakers in the United States was due to all of the following reasons except: A) reluctance of U.S. manufacturers to design high-quality cars. B) inability of U.S. manufacturers to manufacture high-quality cars. C) reluctance of U.S. manufacturers to make inexpensive small cars. D) bigger cars meant bigger profits for U.S. manufacturers. E) U.S. manufacturers did not realize drivers' preferences.
e
The characteristics of home demand for a firm's products or services include all of the following except: A) the composition of home demand. B) the size of the home demand. C) pattern of the growth of the home demand. D) means by which the home demand pushes or pulls foreign markets. E) the size of the competitors share of the home demand.
e
The differences between lean producers and U.S. mass producers is in the way they deal with all of the following groups except: A) dealers. B) distributors. C) customers. D) suppliers. E) managers.
e
The rivalry between Dell, Hewlett-Packard, Gateway, Compaq, and Apple forces all the players to undertake all of the following except: A) develop new products. B) improve existing products. C) lower costs and prices. D) develop new technologies. E) change the rules of engagement.
e
The visionary strategy of the Chief Executive Officer of Volkswagen which included switching the German plants entirely to the new model, failed due to all of the following reasons except: A) resistance on the part of German unions. B) confusion among American dealers about where it was made. C) investment of billions of dollars in Skoda autoworks in Czechoslovakia. D) investment in SEAT in Spain. E) continued demand for Beetle model in the United States.
e
Which of the following is not an element of Rugman and D'Cruz's flagship model? A) key suppliers B) key customers C) key consumers D) selected competitors E) focused differentiation
e
Which of the following is not one of the four arenas in which dynamic strategic interactions are played out in hypercompetitive industries? A) cost/quality B) timing and know-how C) entry barriers D) deep pockets E) buyer and supplier power
e
Which of the following is not the way U.S. auto mass producers operate? A) greater labor content B) less mechanization C) less flexible mechanization D) divide employees in discrete specialties E) lack of employee teamwork
e
Which of the following is the best organization structure for global marketing? A) international division structure B) matrix C) geographic structure D) worldwide product division structure E) There is no single "best" structure.
e
