MANA T2 7, 8, 9, 10, 11, 12

extending the life cycle of the product of service.

Optimizing the location of every activity in the value chain can yield all of the following strategic advantages except

it overextended its focus on a market niche and tried to appeal to an overly broad audience.

Pets.com spent an enormous sum promoting its brand but eventually closed during the dot-com downturn. Which of the following was not one of the reason Pets.com failed:

a company must pursue what is economically beneficial to the company including maximizing economies of scale and learning curve effects.

Pressures to "reduce costs" require that

wholly owned subsidiary

A ____________ is a business in which a multinational company owns 100 percent of the stock.

consider implementing a low risk/low control strategy such as exporting.

A domestic corporation considering expanding into international markets for the first time will typically

D) all of the above

A major trend in international developments includes

more likely to design strategies and structures that allow them to successfully compete abroad.

According to Michael Porter, firms that have experienced intense domestic competition are

information-intensive such as financial services

According to the text, the types of industries that are likely to be most radically transformed by the Internet are:

tax and antitrust legislation that protect the dominant players in the industry.

All of the factors below have made India's software services industry extremely competitive on a global scale except

Prescription-based model

All of the following are examples of Internet business models except

culture sets explicit boundaries.

All of the following are examples of how organizational culture exerts behavioral control except

the ability to locate activities in optimal locations.

All of the following are limitations of a global strategy except

single locations may lead to higher tariffs and transportation costs

All of the following are limitations of a multidomestic strategy except

the pressures for local adaptation may elevate the firm's cost structure.

All of the following are risks associated with a global strategy except:

Virtual organizing and online "officing" are being used to minimize firm infrastructure requirements and lower costs.

All of the following are ways that Internet technologies are being used to enhance a differentiation strategy except:

Human resources departments are using online testing and evaluation techniques in the hiring process and online training after they hire.

All of the following are ways that Internet technologies are being used to enhance a focus strategy except:

Quick online responses to service requests and rapid feedback to customer surveys and product promotions are enhancing marketing efforts.

All of the following are ways that Internet technologies are being used to enhance an overall cost leadership strategy except:

advances in wireless technology.

All of the following factors are likely to be impediments to growth in Internet use except

fewer social and political risks than domestic operations.

All of the following would be viewed as advantages of global diversification except

lower profits, because foreign profits will be reduced when measured in dollars.

Appreciation of the U.S dollar will have the following impact on McDonald's:

the creation of a worldwide network to achieve consistent service regardless of location.

As in the case of Siebel Systems, elements of a global strategy may facilitate the competitive advantage of differentiation by

increases the threat of new entrants.

Because the Internet lowers barriers to entry in most industries, it

double-loop learning.

Contemporary approaches to strategic control rely primarily on

D) all of the above

Combination strategies may work best for Internet competitors because, in the Internet age,

boundaries and constraints

Complete the following sentence: "As firms simultaneously downsize and face the need for increased coordination across organization boundaries, a control system based primarily on ________________________________is dysfunctional."

not the technology itself, that matters to a company's bottom line.

Complete the following sentence: "It is the actual use of the Internet for profitable transactions, ______________________________________________"

substitution

Conferenza is an example of an Internet company that offers busy people an alternative way to participate in conferences. This is an example of Internet-based

mass customization

Dell Computer has an online ordering system that allows consumers to configure their own computers before Dell builds them. This capability is an example of

decreased shipping and transportation costs inherent in local production.

Elements of a multidomestic strategy may facilitate the competitive advantage of cost leadership by

reintermediation.

EncrypTix is an electronic delivery company that uses bar-code printing technology to let customers print-out their own tickets to concerts and sporting events. This new Internet company is an example of:

all of the above

End users are

online shopping.

Examples of value-adding content often found on websites include all of the following except

royalties.

Fees that a multinational receives from a foreign licensee in return for its use of intellectual property (trademark, patent, trade secret, technology) are usually called

standardized; few

Firms following a global strategy strive to offer ______________ products and services as well as locate manufacturing, R&D, and marketing activities in _____________ locations.

traditional strategic controls are usually inappropriate.

For businesses facing complex and turbulent business environments

joint ventures

Foreign direct investment includes the following form of entry strategy:

search, evaluation, problem-solving, and transaction.

Four Internet-based activities that are enhancing firms' capabilities to use the Internet to add value include:

nearly all competitors will have greater access to tools for managing costs making it hard for any one to achieve an advantage

One of the reasons the Internet is eroding sustainable competitive advantages is

that a global marketing effort can sometimes be successful.

Gillette's worldwide success with its Sensor razor demonstrates

transnational

High pressure for local adaptation combined with high pressure for lower costs would suggest what type of international strategy:

multidomestic

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy:

by consolidating the marketing message that consumers use to make a purchase decision to a few key pieces of information that the selling company has little control over

How do infomediaries and consumer information websites increase the intensity of competitive rivalry:

the growth in new Internet users ceased.

In 2000 and 2001, the Internet sector of the U.S. economy plummeted for all of the following reasons except:

D) all of the above

In 2001, Cisco Systems, Inc.'s stock price fell dramatically when it inaccurately forecast new sales orders because it relied too heavily on historical sales figures. What caused this mistake?

policies that protect the nation's domestic competitors.

In Michael Porter's framework all of the following factors affect a nation's competitiveness except

introduces new ways to accomplish the same tasks.

In general, the threat of substitutes is heightened because the Internet:

pursue a strategy that combines the uniformity of a global strategy and the specificity of a multidomestic strategy in order to achieve optimal results.

In order to realize the strongest competitive advantage, firms engaged in worldwide competition must

D) all of the above.

In the opening case, Agillion, Inc., the start-up failed because

diminishes the power of many distribution channel intermediaries.

Incumbent firms may enjoy increased bargaining power because the Internet

upstream; global

Industries in which proportionally more value is added in ____________ activities are more likely to benefit from a ____________ strategy.

is the organization "doing the right things"?

Informational control systems ask

all of the above

Internet "cookies" can be used to violate consumer privacy because they

outline methods that online businesses use to create value.

Internet business models

gathering information.

Internet search activities include

Investing heavily to build brand recognition is considered ineffective for low cost leaders because customers who seek low prices are typically not brand loyal.

Internet start-up Buy.com tried to build brand with an overall low cost leadership strategy. Why is this a risky strategy?

E-marketplaces

Internet-based venues that draw business buyers and sellers together in one virtual space where participants can reach new customers and reduce transaction costs are known as

it offered the free service to build market share but then could not sustain the low-cost strategy.

Juno.com became the third largest Internet service provider by offering free email service, but eventually had to stop this practice because of what potential pitfall:

international.

Low pressure for local adaptation combined with low pressure for lower costs would suggest what type of strategy?

to take advantage of the low cost of labor.

Many U.S. multinational companies set up maquiladora operations south of the US-Mexico border primarily

to access the outstanding technical and professional talent available there so that they can attain world-class excellence in selected value-creating activities.

Microsoft decided to establish a corporate research laboratory in Cambridge, England

designing effective reward systems

Most successful organizations minimize the need for explicit rules, regulations, and other boundaries by

the Internet inhibits the ability of suppliers to offer highly differentiated products or services.

One of the greatest threats to supplier power that has emerged because of the Internet is

customers' needs, interests, and tastes are becoming increasingly homogenized or similar.

Recent trends that might lead managers of multinational corporations (MNCs) to adopt a more decentralized strategy for their operations would include all of the following except

disintermediation.

Removing the organizations or business process layers responsible for intermediary steps in the value chain is known as

strong; strong; high

Rivalry is intense in nations with conditions of ________ consumer demand, ___________supplier bases, and ____________ new entrant potential from related industries.

boundaries and constraints

Rules and regulations are examples of

the Web makes it possible for new entrants to enter a market with relatively lower capital costs.

Scale economies may be less important for new entrants that launch Web-based businesses because

upstream.

Software Tech, Inc., a company in the computer software industry, invests heavily in R&D and product design. Thus, most of its value is added

some suppliers have created Web-based purchasing systems that encourage switching.

Supplier power has increased because of the Internet for all of the following reasons except

digital technologies.

Technologies that use information in the form of electronic signals or "bits" are called

action plans are submitted by lower level managers.

The "traditional" approach to strategic control is sequential. Which of the following is not one of the steps in the sequence?

to eliminate channel conflict with retail outlets.

The reason Levi Strauss & Co. closed its online store for selling Levi jeans was

enhancing the organization's ability to respond with speed and flexibility.

The benefits of continuous monitoring include

Application service provider.

The company in the opening case, Agillion, Inc., provided expert Internet services on an outsourced basis for less money than it cost firms to develop those capabilities internally. This type of business is known as a(n)

a franchise contract is more specific and usually longer in duration.

The difference between a franchise and licensing contract is that

exporting

The form of entry strategy into international operations that offers the lowest level of control would be

it helped reinforce and sustain Wal-Mart's culture.

The late Sam Walton, founder of Wal-Mart, used to give pep rallies at local Wal-Mart stores. What purpose did this serve?

D) none of the above

The only technology ever adopted by consumers more rapidly than the Internet was

they lack the flexibility needed to adjust to changes in the environment.

The primary drawback of "traditional" strategic control systems is

high tariffs and taxes on foreign investors and multinational corporations provide income to improve living conditions.

The reasons that explain why some governments make better use of the inflows from foreign investment and know-how than others include all of the following except

economies of scale.

The sale of Boeing's commercial aircraft and Microsoft's operating systems in many countries enable these companies to benefit from

transaction costs.

The sum total of all expenses associated with conducting business are known as

is typically used in the context of providing unique services

The value-adding activity known as problem-solving

can sabotage cultural cohesion and employee commitment.

Top executives who support the view that employees should "do as I say, not as I do"

informational control.

Top managers at USA Today meet every Friday to review daily operational reports and year-to-date data. This is an example of

all of the above.

Unique content will not add value to an Internet website under the following conditions:

a transnational strategy

Units coordinate their activities with headquarters and with one another, units adapt to special circumstances only they face, and the entire organization draws upon relevant corporate resources. These are all attributes of which type of strategy?

boundaries

Which of the following approaches to behavioral strategic control should be utilized least in an organization in which there is a great need for innovation and a high degree of autonomy?

exporting, licensing, franchising, joint venture, and wholly owned subsidiary

Which of the following describes the most typical order of entry into foreign markets?

unique managerial challenges in fostering knowledge transfer

Which of the following is a disadvantage of a transnational strategy?

it circumvents the need for face-to-face meetings among superiors, subordinates, and peers.

Which of the following is not one of the characteristics of a contemporary control system?

the Internet has made it more difficult to imitate the advantages achieved by competitors.

Which of the following is not one of the reasons the Internet increases the intensity of competitive rivalry:

the Internet isolates customers which makes differential pricing possible.

Which of the following is not one of the reasons why the bargaining power of buyers is increasing because of the Internet:

evaluating employee performance.

Which of the following is not one of the ways the Internet is lowering transaction costs

mass customization

Which of the following methods of implementing a differentiation strategy has been greatly enhanced because of Internet technologies?

access niche markets in a highly specialized fashion.

Which of the following phrases best completes the sentence: Because of the Internet, firms that use a focus strategy have new opportunities to ________________________________

firms in industries that have much value added in research and design or manufacturing

Which of the following types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

MNCs can compete with aggressive pricing on low cost products that meet the common needs of global consumers.

Which one of the following is one of Theodore Levitt's assumptions supporting a pure global strategy?

Wholly owned subsidiaries

___________ are most appropriate where a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries.

Joint ventures; strategic alliances

____________ entail the creation of a third-party legal entity, whereas __________ do not.