SGQ 13, SGQ 14, SGQ 15, SGQ 16, SGQ 18, SGQ 19

Which of the following is an example of a strategic objective? a. Investing to beat the street's quarterly earnings expectation b. Hiring new contractors to work on a new project c. Achieving 100 percent productivity in the next six months d. Attaining a time-to-market of less than 6 months, which will provide a sustainable competitive advantage

"Attaining a time-to-market of less than 6 months, which will provide a sustainable competitive advantage"

"Foreigner problem"

"foreigner" problem that limits their ability to transfer knowledge across subsidiaries. This challenge relates to the ability of different subsidiaries to understand knowledge provided to them ability: needle in a haystack problem

Buy Entry Tactic

(Aquire it) Purchase distributors or marketing or sales channels. Buy franchise operations. Buy into an existing JV. M&A Turnkey. As another way to form a joint venture, firms can buy into an existing company, becoming a partner without purchasing the company outright. Many firms enter foreign markets by purchasing the existing operations of a foreign company.

Ally Entry Tactic

(do it with a partner) export partner/ be an OEM. Partner on development (Consortium). Contracts with licensees. Master licensor agreement. JV partner(s)

Darren, a manager at Bronze Inc., believes that it is better to produce offshore than domestically. Which of the following is a true statement that supports his belief? a. A company can take advantage of low labor costs in offshore locations. b. A company can follow a single pricing strategy in all markets by producing offshore. c. A company can evade taxation in offshore locations. d. A company can avoid government intervention in offshore locations.

A company can take advantage of low labor costs in offshore locations

Which of the following BEST describes the term "license"?

A contractual agreement between two parties, known as the licensor and the licensee, that grants the licensee certain rights

What is meant by the term company culture ?

A long-lasting system of shared assumptions, beliefs, and values common across the company which affects how employees behave, perhaps subconsciously.

strategic objectives

A long-term organizational target which sets the priorities and direction for corporate efforts to be successful over their competitors.

In which of the following organizational structures does a company often designate one boss as the primary boss and the other bosses as secondary bosses?

A matrix structure

Which of the following describes"just-in-time manufacturing"?

A production system that consists of carefully planning the whole production process from start to finish to avoid carrying excess inventory

GLOBE Leadership Dimensions/ Culturally Implicit Leadership Traits (CLTs):

A set of six (6) dimensions related to, but separate from, the GLOBE Cultural Values dimensions, which describe the level of acceptance of various approaches to leadership.

"hoarding of experties"

A subsidiary seeking knowledge from another subsidiary may face resistance from individuals in the other subsidiary, who may be reluctant to invest the time, energy, and effort to share their knowledge.

human capital portfolio

A unique characteristic of international businesses is that they include people from many different cultures and function in many different locations. Successfully utilizing this diversity is both a challenge and an opportunity. The challenge is that it becomes more difficult to coordinate activities and get people to relate with one another. The opportunity is that people will have different ideas that can lead to new and innovative solutions to common problems.

Acacia Inc., a fictional Malaysian textile company, imports cotton from India. Why would Acacia bring in this resource from so far away?

Acacia expects to save costs and become more competitive

Research and Development

All companies spend significant time acquiring goods and services (the procurement process), producing products to sell (production), moving materials through the production system (logistics), and designing new products (research and development)

VIZIO is a US TV manufacturing company with high global brand recognition and current manufacturing partners in Mexico, China, and Vietnam. They use the same type of plastic chassis, same type of flat screen panels, and follow the same wiring guidelines across all their models. Which of the following is the BEST assessment regarding their investment in human capital for a South Korean manufacturing and distribution JV? a. Although some local and subsidiary human capital is needed, it is not imperative as the product is well known. This is a meganational strategy, there is more need for international and corporate human capital. b. Subsidiary human capital is definitely needed for this project, as they will be able to customize the product for each client. This is a meganational strategy, international human capital is not that important. c. Although local and corporate human capital is needed, it is not as imperative as subsidiary human capital. This is a multidomestic strategy, because they will need local expertise to get to know the culture. d. Subsidiary human capital and international human capital are not needed for this project. This is a multidomestic strategy, because TVs will sell through retailers and there is no need for any local or global best practices.

Although some local and subsidiary human capital is needed, it is not imperative as the product is well known. This is a meganational strategy, there is more need for international and corporate human capital.

Taylor Ltd. makes caps for sports teams. They send the design to a contractor in China, who sends a shipment some months later. To ensure the contractor adheres to socially responsible labor norms and respect for the environment, Taylor hired a team of Cantonese-speaking American engineers to serve as a special task force which periodically travels to the contractor location. What is the BEST explanation for Taylor's objective of hiring Cantonese-speaking engineers? a. Although they live in America, the Cantonese-speaking engineers have local understanding of the cultural, geographic, economic, and political landscape in China. b. They will act as expatriates to check on the production atmosphere in China and assist in training the managers at the contractor speak English as well. c. They will act as expatriates and move to China and will be able to relay their knowledge of the cultural, geographic, economic, and political landscape of America to the contractor. d. While they live in America, the Cantonese-speaking engineers are likely to expect much lower salaries than other engineers, but also know the training, motivational, and peopleretaining tactics.

Although they live in America, the Cantonese-speaking engineers have local understanding of the cultural, geographic, economic, and political landscape in China.

Which of the following defines network structure ? Correct Answer:

An organizational structure with a movement of people and shifting structure by project

In the context of organizational structures, identify a difference between a functional structure and a network structure.

Another potential drawback is that network structures have decentralized decision-making.

Hertzberg's Hygiene Factors:

Aspects of work that are expected to be present and demotivate an employee if they are missing; they do not motivate employees when there are more of the factor available: e.g., Must haves / Job Conditions such as Compensation, Benefits, Fair Treatment.

Hertzberg's Motivation Factors:

Aspects of work that motivate the worker to do more when there are more of the factor available: e.g., Incentives / Aspirations, such as Promotion opportunity, Autonomy, Recognition, Personal Growth.

In the context of organizational structures, which of the following is an advantage of a network structure?

Collaboration occurs in an informal manner as there are no rigid hierarchies.

CAGE Distance

Common measures of cultural, administrative, geographic, and economic distance

Make Entry Tactic

Companies desiring to go global through an entry mode of exporting, a turnkey project, franchise, or wholly owned subsidiary can "make" or develop its own operations in a new market.

In the context of companies entering foreign markets, which of the following statements is true of the concept of CAGE distance? a. Companies doing business in countries that are geographically closer face fewer challenges than those further away. b. Companies doing business in countries that are economically different face fewer challenges than in those which are similar. c. Companies doing business in countries that share a common cultural base face more challenges than those which are culturally different. d. Companies doing business in countries that have few administrative differences face more challenges than those which are administratively similar.

Companies doing business in countries that are geographically closer face fewer challenges than those further away.

Cultural Looseness

Cultures which are more accepting of differences and do not tend to enforce cultural norms in diverse communities. (e.g., Belgium, France, Great Britain, Sweden

Cultural Tightness: x

Cultures with pervasive norms and cultural 'sanctions' for deviation from norms even when away from the native country. They tend to be more risk-adverse and prefer to live in culturally aligned communities when abroad. (e.g., Morocco, Indonesia, Egypt, Bangladesh, Jordan)

Participative Leadership:

Delegates and encourages initiative and risk-taking, egalitarian (low Power-Distance)

Economic Distance

Different GINI coefficient, natural resources, financial resources, human resources, information resources

Cultural Distance

Different languages, ethnicities, religions, values, norms dispositions

Team-Oriented Leadership:

Diplomatic, collaborative, team integration, administratively competent

5.___ Which of the following would NOT be classified as a production system?

ERP system

Mayer Co. is a fictional multidomestic electronics corporation. It makes parts for electricity providers. These products are customized for each market, as some countries run on 120v and others on 240v, and all have different installations. What is the function of the international branches to support Mayer competition with global brands? a. Each location makes its own decisions on the design of products/services sold, they make/dispense the service, operate the distribution, and handle the local marketing. b. The headquarters makes decisions top down on the design of products/services, they tell the international locations when to make/dispense the service, and they handle global marketing. c. The headquarters makes decisions top down on the design of products/services sold, but the international locations make/dispense the service, operate the distribution, and handle the local marketing. d. The international locations make decisions bottom up on the design of products/services, they tell the headquarters when to make/dispense the service, and the headquarters handles global marketing.

Each location makes its own decisions on the design of products/services sold, they make/dispense the service, operate the distribution, and handle the local marketing.

8.___ Microsoft Dynamics 365 Business Central, SAP Business One, Oracle Netsuite, and Sage Intacct are software platforms designed to help manufacturing companies collate all relevant information into a single database, provide modules to handle common business functions, and provide access to sales, inventory, and production data in real time. Given this information, it can be said that these are examples of _____.

Enterprise resource planning system

Equity Modes of Entry

Equity modes require a larger investment and engage the foreign firm in local operations. This increases the risk of the activity but also allows the firm to get close to customers and thus build better products.

Maslow's Hierarchy of Needs:

Foundational research which described human needs as being progressive (as in a pyramid) with Survival at the base to Altruism at the peak.

What is an organization structure based on units identified by departmental roles?

Functional structure

IWent is a fictional automobile manufacturer who is considering where to locate a new production facility for right-side steering for countries which drive on the left side of the road. Which of the following might be a good choice, considering the supporting justification? a. Indonesia, due to its reputation for making great automobiles. b. Great Britain, the expected leading market for the car, its unique environmental protection rules, and the recent completion of BREXIT which is complicating the importing of cars. c. China, where IWent has a mega factory producing standardized left-side steering cars for consumers across southeast Asia. d. Nigeria, where IWent will provide much needed foreign investment to combat the high unemployment, widespread religious and ethnic tensions, and lack of technical training opportunities.

Great Britain, the expected leading market for the car, its unique environmental protection rules, and the recent completion of BREXIT which is complicating the importing of cars.

In the context of the entry tactics available for different entry modes, which of the following is a difference between the "make" tactic and the "ally" tactic?

In the make tactic, a firm develops its own operations in the foreign country, whereas in the ally tactic, a company partners with existing firms in the local market. Make: Companies desiring to go global through an entry mode of exporting, a turnkey project, franchise, or wholly owned subsidiary can "make" or develop its own operations in a new market. Ally: some companies wishing to export do not have the skills to do so, in which case they can ally or partner with other firms to help them. The export partners may handle one or more of the sales, distribution, and lobbying activities that are common for exporting firms

Autonomous Leadership:

Individualistic, decisive, performance and results-driven

A Spanish technology firm enters into an agreement with a low-cost U.K. supplier that will provide custom hardware to which the Spanish firm will add proprietary multi-threaded software. To ensure compatibility, the contract requires the Spanish company to share detailed specifications of their software, including the size of additional buffering RAM to enable their innovative processing approach. What is the disadvantage for the Spanish innovator in working with this supplier? a. Limiting market potential in U.K. area. b. Initiating risk of a future competition. c. Reducing opportunity for engineering. d. Diminishing branding in U.S. market.

Initiating risk of a future competition.

8.___ Amazon follows a transnational strategy. Which of the following statements describes Amazon's international strategy?

It aims to be both locally responsive and globally integrated simultaneously.

In the context of organizational structures, which of the following statements is true of a divisional structure?

It allows a company to develop specific and unique offerings for each target group.

Frerero Global has chosen to use a multidomestic strategy when entering the international market. Which of the following statements is true of Frerero Global in this context? a. It achieves integration through decisions made by its headquarters. b. It exploits the cost advantage of performing each stage in its value chain at the lowest cost for that activity. c. It pursues a cost-leadership strategy at the global level. d. It can respond to the differentiated needs and preferences of customers in each of the countries where it operates.

It can respond to the differentiated needs and preferences of customers in each of the countries where it operates.

Which of the following is the expected outcome for a successful domestic company which is the first entrant for its industry into a foreign market?

It captures a leadership position. A second force driving companies toward specific international markets is the desire to be the first company to move into those markets. In many cases, the first entrant into a market captures a leadership position, enabling it to control critical resources such as distribution channels and to build up buyer-switching costs, particularly where network effects or branding are important. The drive to capture this advantage sometimes pulls firms into markets they would otherwise wait to enter.

Which of the following best describes international strategy?

It consists of the steps by which companies manage differences across borders to create advantages over their competitors.

Adam and Sons, a leather accessories manufacturing company, has adopted a meganational strategy. Which of the following statements is most likely to be true of Adam and Sons? a. It discourages centralized organization. b. It has staffed its foreign units with local employees. c. It has little need for local human capital. d. It invests heavily in subsidiary human capital.

It has little need for local human capital.

Which of the following BEST explains personal control?

It is a control that uses frequent human interaction to enforce control.

A motorcycle company invested in opening a new plant in South America. They outsourced many parts of the motorcycle from several factories all over the world. They are specializing only on the engine, which is electric. Their designs are generic so that they can offer low-cost scooters. There are some programming issues that need to be resolved, as the parts do not always arrive on time for production. Which of the following responses gives pros and cons of their business model, and the BEST recommendation that could be given? a. Just-in-time manufacturing is a great approach, but the company will only save money if the supply chain is run extremely well. The outsourcing of most of the parts is advantageous, as the company can focus on their specialty area, yet they should closely manage the performance and delivery times of the overseas contractors. b. They should change their business model and do everything in-house. This way they will save money and time, because everything will be right there on the warehouse floor ready for the assembly line. The company will become experts in building all parts of the motorcycle. c. The just-in-time manufacturing system works well if you have a big warehouse filled with the parts that you need for the day. This way they can save time and money. However, outsourcing all parts overseas is disadvantageous as the contractors do not know if these items will fit the vehicle. d. The sourcing model of moving production outside the country to South America is advantageous, as the sourcing will be in-house. Therefore, lots of time will be saved by just storing all the unfinished inventory in a warehouse. As they ship the finished products to other neighboring countries, they will offshore the items at the right price.

Just-in-time manufacturing is a great approach, but the company will only save money if the supply chain is run extremely well. The outsourcing of most of the parts is advantageous, as the company can focus on their specialty area, yet they should closely manage the performance and delivery times of the overseas contractors.

_____ are clearly defined metrics to quantify whether individuals are on the right track to helping a company achieve its strategic objectives. Correct Answer:

Key performance indicators

Global Leadership:

Leadership with the addition of an understanding and appreciation of the culturally implied needs and expectations of the follower, as well as the unique needs of the individual.

In the context of entering into foreign markets, which of the following is a disadvantage of licensing?

Licensing agreements provide only limited control over the way in which a licensed brand is used. Licensing agreements provide only limited control over the way in which a licensed brand is used. in licensing technology, brands, or other intellectual property to firms, a licensor becomes one step removed from customers and loses the opportunity to get feedback directly from them licensing agreements provide only limited control over the way in which the licensed brand, technology, or intellectual property is used. may risk a loss of core capabilities

consists of adjusting an approach to meet the differentiated needs of local markets, of local customers, and of local stakeholders as well as those of suppliers and distributors. Correct Answer:

Local responsiveness

3.___ In the context of strategic positioning, which of the following is a difference in the actions taken between low-cost leadership and a differentiation strategy?

Low-cost leadership describes a strategic position to create value by having the lowest cost of operation in the industry.

Harrison is a manager at Delta Inc., a computer manufacturing company. She believes that Delta should produce all computer components in-house rather than buying them elsewhere. Which of the following is a true statement that supports her position? a. Making components in-house can help a firm maintain control of sensitive knowledge. b. Producing components in-house can help a firm develop production expertise with minimum time and effort. c. Producing components in-house can make it easy for a firm to achieve economies of scale. d. In-house producers have the same incentives as external suppliers to produce high-quality products.

Making components in-house can help a firm maintain control of sensitive knowledge.

Chandler is a manager at Zion Inc., a fictional Canadian smartphone manufacturing company. Chandler believes that Zion should procure smartphone components from abroad instead of producing them in-house. Which of the following statements supports his belief? a. Making components in-house requires a company to standardize its products and processes that leads to increased production costs. b. Making components in-house does not offer a company control of sensitive knowledge. c. Making components in-house requires a company to develop production expertise that takes considerable time and effort. d. Making components in-house prevents companies from making stable price estimates.

Making components in-house requires a company to develop production expertise that takes considerable time and effort.

Humane-Oriented Leadership:

Modest, sensitive, tolerant and supportive

In the context of the modes of entering a foreign market, which of the following is a difference between nonequity modes and equity modes?

Non-equity: exporting, turnkey, licensing, franchising. Equity: joint ventures, wholly owned subsidiaries.

"not-invented-here"

On the other hand, a subsidiary that may have discovered a best practice and tries to share this with other subsidiaries is likely to face a "not-invented-here" problem

Global production

Once leaders settle the make-or-buy decision, they must also decide whether to make or buy locally or globally. Buying globally is called global procurement; producing globally is called global production. In some cases, global procurement is actually a necessity because of a lack of locally available natural resources.

Sourcing decision

One of the most basic and critical decisions an international business leader has to make is whether to buy production components from external suppliers or make those components in-house.

is control that focuses on objective performance metrics and reporting systems.

Output control

Which of the following is a disadvantage associated with joint ventures?

Partners having different goals. disadvantages of entering a new market through a joint venture structure is that the partners sometimes have different goals.

Self-Protective Leadership:

Status- and Image-conscious, face-saving, procedural, hierarchical (high Power-Distance).

Leadership:

The action of influencing others through motivation to achieve goals that satisfy the SHARED NEEDS of the followers, the leader, the organization, and/or society.

H&M is a Swedish fashion retailer that operates through physical stores spread across many countries. If the company uses an output control system to evaluate the performance of its stores and explore growth opportunities, which of the following difficulties is it most likely to face?

The challenges of output control are that it can be difficult to get accurate and timely performance data, to efficiently analyze the data, and to ensure that data from one market are comparable to those from other markets. Typically, global companies rely on large-scale information systems such as Oracle or SAP to help organize these efforts, but these systems are costly, include only company information, and are limited by the accuracy of the inputs.

Which of the following defines "operational risk"?

The cost/impact of the uncertainty in executing the company's operations, such as that resulting from poorly documented procedures

Work Centrality:

The degree of general importance that work has in the life of the individual, i.e. as compared to that of Leisure, Community, Religion, and Family

Which of the following is true about highly feminine cultures?

The division of work and roles tend to be looser, motivating people through more flexible roles and work networks.

Bradford Inc. is a new speaker company, specializing in portable speakers that are for outdoor TVs. The sales team does cold calling to get retail stores to buy their speakers. There is a lot of turnover in this sales department. The HR team just has payroll specialists now, but soon Bradford will add a talent and performance management team. What would lead Bradford to invest in this expansion of non-sales staff? a. The employees do not feel appreciated, as their performance is not compensated. b. The employees are petulant, and they need to be disciplined. c. The employees feel overvalued and want to be measured for hidden talents. d. The employees are infrequently monitored in their daily work and want more responsibility

The employees do not feel appreciated, as their performance is not compensated.

7.___ Which of the following factors does NOT significantly affect a decision about production location?

The firms organizational hierarchy

Breuer Inc. is a software services company. They opened a subsidiary in East Asia, but they are having trouble getting people to buy their accounting software. It was translated to the local language, and customers can totally customize it to the local laws when they first open the software; but even so, the market share is not moving. Although Breuer is a famous brand name software in America, people in the Asian country have not used it before. What are the BEST alternatives, in terms of being locally responsive for Breuer Inc.? a. The headquarters needs to hire some locally experienced sales managers that better know the business culture and expectations. The subsidiary manager should also adjust their approach to the local needs. They could for example, open a live help center with local chat agents that the competition does not have. They also could add the local accounting regulations to the software by default. b. The local office should bring expatriates that are international experts in sales to the country in order to implement the success they have back home. They should try to keep the software standardized, it took a lot of effort to get the software to be adequate and well liked in America. They could hire better ad spaces in transit, as many local office workers use the metro and buses. c. The headquarters should hire an expatriate sales manager that understands East Asian culture and business expectations. They should standardize the product, but let the client customize it if they want, this flexibility will be a positive. They could advertise the international help center from America, which the local software does not have. They could also let the clients have unlimited updates of the software. d. The local office should hire a local sales manager that has knowledge of the culture and business needs. The software should be adjusted to the market, the laws can be added as an optional purchased add-on. They will bring the best international help center; any client can call or chat with an American agent. They could also add purchase optional unlimited updates.

The headquarters needs to hire some locally experienced sales managers that better know the business culture and expectations. The subsidiary manager should also adjust their approach to the local needs. They could for example, open a live help center with local chat agents that the competition does not have. They also could add the local accounting regulations to the software by default.

Of the following, which is a motivation challenge of horizontal coordination among subsidiaries where successful units may not wish to go to the effort of documenting and sharing their methods with other units?

The hoarding of expertise problem

Which of the following is true of both the multidomestic and meganational strategies? Correct Answer:

The human resource practices should be adapted to local employment customs.

In the context of organizational structures, which of the following is a difference between a matrix structure and a network structure?

The main challenge of a matrix structure is the sheer complexity of the operation.

Which of the following is an ability challenge of horizontal coordination among subsidiaries where so much information is shared that it is difficult to be aware of the relevant information? Correct Answer:

The needle-in-a-haystack problem

Novotel, a global lodging service provider based in France, had set standardized rules for all its managers. In addition to manuals that outline the company's routines in detail, the managers are given scripted greetings to give to customers and scripted methods of behavior. Which of the following was likely to have resulted from this approach?

There would probably be a lack of flexible working practices

In the context of virtual organizations, which of the following statements is true of contract employees?

They are paid for the job undertaken.

In the context of entry tactics available for different entry modes, which of the following statements is true of white-label goods?

They can easily be branded and sold under a partner's brand name.

Taco Bell, which is a popular fast-food chain with over 7,000 locations worldwide, has become a well-known brand internationally. Taco Bell has focused on which of the following strategies in order to maintain a competitive edge within the industry? a. They emphasize and adjust their menus according to customer needs to sustain demand while focusing on low-cost leadership so they can provide meals at a very affordable cost. b. The fast-food chain focuses on providing a tasty meal regardless of the cost. c. Taco Bell emphasizes a differentiation strategy in order to persuade customers to pay more for their menu items. d. They focus on low-cost leadership by preparing all the food in a central kitchen and ship it to all worldwide locations to be reheated as sold.

They emphasize and adjust their menus according to customer needs to sustain demand while focusing on low-cost leadership so they can provide meals at a very affordable cost

Identify a true statement about global leaders. a. They must have knowledge of the different cultural expectations in the markets in which they work. b. They need not move physically across geographic, cultural, and national boundaries. c. They need not have a high degree of emotional intelligence. d. They have a standard way of interpreting the world.

They must have knowledge of the different cultural expectations in the markets in which they work.

4.___ In the context of the primary value chain functions, which of the following is a difference between the functions of research and development (R&D) and production?

Through product innovation, a form of differentiation, R&D can increase the functionality of products, increasing customers' willingness to pay for them. R&D can also support a cost-leadership strategy by suggesting more efficient production methodologies or finding ways to reduce product costs.

Toyota Motors Manufacturing Company uses a just-in-time (JIT) manufacturing system. By using the JIT system, _____. a. Toyota can use the same mix of marketing strategies in its foreign and domestic markets b. Toyota can gather all relevant information into a single database, represent all business functions in modules, and gain access to data in real time c. Toyota can easily document the work of its overseas employees in the production process d. Toyota carefully integrates the whole supply chain and production process from start to finish in order to avoid carrying excess inventory.

Toyota carefully integrates the whole supply chain and production process from start to finish in order to avoid carrying excess inventory.

Which of the following is a difference between a low-cost strategy and a differentiation strategy? Correct Answer:

Unlike a low-cost strategy, a differentiation strategy involves persuading customers to pay more for products.

1.___ Which of the following is a difference between a low-cost strategy and a differentiation strategy?

Unlike low-cost leadership, a differentiation strategy requires that companies design high-profile marketing programs. A low-cost strategy focuses the company's efforts on seeking efficiencies and reducing costs. On the other hand, with a differentiation strategy, firms differentiate their product in order to persuade customers to pay more for it.

2.___ In the context of strategies, which of the following is a difference between value creation and value capture?

Value creation is the process of maximizing the difference between a customer s willingness to pay and the cost of the product, whereas value capture is the process of maximizing the portion of that value the company keeps.

Charismatic / Values-Based Leadership:

Visionary, integrity, inspirational, change-oriented

Which of the following is a product that is sold to other companies without brand markings so they can apply their own brand to the product?

White label good

In the context of key human resource practices in multinationals, which of the following activities is involved in recruitment and selection?

Workforce planning

In the context of key human resource practices in multinationals, which of the following activities is involved in development and training?

\Succession planning

Ethnocentrism Bias

a bias indicating that customers prefer local brands over foreign brands and are willing to pay more for local brands even when the quality is inferior

An offset agreement is

a business practice in which the supplier agrees to buy products from the party to which it is selling.

Turnkey

a company builds a facility in a foreign market for a client, makes it operational, and then hands over the "keys" to the client, which will own and operate the facility.

competitive advantage

a condition that puts a company in a favorable or superior business position compared to other similar businesses both within and across national borders.

Alliance

a contractual relationship between two or more companies

Structural risk

a measure of a firm's difficulty when relationships with vendors do not work as expected

Operational risk

a measure of a firm's inability to document the work remote employees do, describe the different situations they might face, and direct their responses in each scenario

International JV

a new legal entity created and owned by two or more existing companies from different countries

Wholly Owned Subsidiary

a new legal entity set up for operation in a foreign market that is legally a separate company but is fully owned by the parent firm

Dual Sourcing

a source strategy in which firms produce products in-house to ensure quality and availability while also purchasing the same products from suppliers in order to force competition and push innovation within the in-house unit

A transnational strategy is Correct Answer:

a strategy that focuses on being both locally responsive and globally integrated.

Differentiation Strategy

a strategy that helps companies succeed by differentiating their product in order to persuade customers to pay more for it

Low-Cost Strategy

a strategy that helps companies succeed through efficiencies and by reducing costs

Meganational Strategy

a strategy whereby global firms focus on increasing profitable growth by reaping cost reductions from economies of scale and other advantages of global integration

Multidomestic Strategy

a strategy whereby global firms respond to differentiated needs and preferences in each local market in which they operate

Transnational Strategy

a strategy whereby global firms take a hybrid approach that combines the meganational and multidomestic strategies, simultaneously offering the benefits of both global and local advantages a strategy that focuses on being both locally responsive and globally integrated.

matrix structure

a structure that organizes a company along multiple dimensions that may include geography, function, and division

network structure

a structure that organizes a company by groups that form to work on a project, and then dissolve once the project is complete

Divisional structure

a structure that organizes a company by units according to the products they make, the customer segments they serve, or the geographic location in which they operate

functional structure

a structure that organizes a company into units identified by their functional roles, or what they do

modular design

a system in which a process, product, or service is divided into components that can be changed independently and then reintegrated into the system

Franchising

a unique form of licensing in which a partner, called the franchisee, is given the right to use the franchisor's brand and other intellectual property, while the franchisor takes an active role in the ongoing operations of the firm, such as advertising, training staff, and managing inventory.

Armenia and Azerbaijan, two neighboring countries in the Caucasus region of Eurasia (located at the crossroads of Eastern Europe and Western Asia), have different ethnic majorities. In the context of CAGE distance, which of the following does this illustrate? a. Cultural b. Administrative c. Geographic d. Economic

a. Cultural

Aelrion Inc. has adopted a meganational strategy. Which of the following statements is most likely to be true of Aelrion Inc.? a. It is centrally managed. b. It has staffed its foreign units with local employees. c. It invests heavily in subsidiary human capitald. It has little need for corporate and international human capital.

a. It is centrally managed.

NEHunt.com is a fictional company which sells artifacts from small handicraft shops around the world. It provides a medium to sell various products with a secure payment system. It showcases products from the small handicraft stores and creates an attractive audience for new and innovative products. Which of the following statements is true of NEHunt.com in this scenario? a. It sells differentiated products from a standardized platform. b. It sells identical products in the same way all over the world. c. All aspects of its operations including sales are centralized. d. Integration is not limited to a particular value chain segment or a sales division.

a. It sells differentiated products from a standardized platform

Lavos Bags, a designer handbag manufacturer, believes in global integration. It has stores setup in various parts of the world. It has standardized processes to design and distribute its products. The company has also developed a strong corporate culture to help it deploy its processes consistently and maintain the same image around the world. Which of the following statements is true of Lavos Bags in this scenario? a. It will face difficulty in coordinating among activities in its value chain. b. It will have restricted opportunities to centralize its production or distribution. c. It will have restricted ability to respond quickly to evolving local market opportunities. d. It will not be able to globalize its brand as its products will not be able to achieve economies of scale.

a. It will have restricted ability to respond quickly to evolving local market opportunities.

Pettnet Inc. is a fictional manufacturer of high-end luxury jewelry boxes using patented technology to emboss holograms of the pieces on the outside of the box. The company is considering of selling its boxes to customers in San Marino, a small city-state that has almost no land and imports most of their products in spite of heavy tariffs they impose. There is a company within San Marino which could produce the boxes for them if given access to Pettnet's technology. If Pettnet has a long-term perspective for expansion into the much larger Italian jewelry market, which is the best recommendation for Pettnet, considering the advantages and disadvantages of various entry methods? a. Pettnet should attempt to buy the local company as a wholly owned subsidiary, as Pettnet could produce the boxes locally and not pay tariffs, would have a presence for future expansion into the Italian market, and they would not share the intellectual property. b. Pettnet should seek to form a joint venture with a local company and share all their resources, thus increasing economies of scale, while also avoiding the import tariffs. Then, the JV could expand into the Italian market. c. Pettnet should enter the small market of San Marino by exporting which is fast and inexpensive to implement, allowing them to have first-mover advantage. Then they can attempt to pressure the government to lower tariffs later, after they expand into the Italian market. d. Pettnet should license their technology to the local San Marino company in order to quickly capture licensing fees, while building a long-term plan to independently enter the Italian jewelry market which has no import tariffs.

a. Pettnet should attempt to buy the local company as a wholly owned subsidiary, as Pettnet could produce the boxes locally and not pay tariffs, would have a presence for future expansion into the Italian market, and they would not share the intellectual property.

Coca-Cola is one of the most recognizable and popular branded drinks in the world. The company was founded in 1886 and can now be found in most countries around the globe. The company has been successful for a variety of reasons, but one can highlight an important distinction that has allowed this global brand to become such as success. Which of the following explains this distinction? a. They are one of the first companies to "think global, act local" and applied different marketing strategies to each country depending on the culture and history of that nation. They also take into consideration the level of sugar and sweet taste in certain countries depending on the cultural preferences. b. The company has a large budget to which they utilize effectively through mass marketing campaigns including large international sporting events like the World Cup. c. The company is focused on providing a one-size fits all approach to their production and marketing. d. They allow each country to prepare its own secret recipe for the Coke product

a. They are one of the first companies to "think global, act local" and applied different marketing strategies to each country depending on the culture and history of that nation. They also take into consideration the level of sugar and sweet taste in certain countries depending on the cultural preferences.

Which of the following is a positively regarded trait of a leader globally? a. charismatic b. self-esteem c. job security d. altruism

a. charismatic

GE Aircraft and Pratt & Whitney, two U.S. companies, together created a new company to develop and sell the GP7200 aircraft engine globally. The engine has become one of the most successful on the market because the two firms have shared lessons learned during their combined 25 million flight hours. In this scenario, GE Aircraft and Pratt & Whitney have formed a _____ to enter and win the global market. a. joint venture b. turnkey agreement c. wholly owned subsidiary d. franchise

a. joint venture

Modern leadership theory recognizes that ________. a. no single leadership style works everywhere in all situations b. the democratic style of leadership works well in all situations c. the charismatic style of leadership works well in all situations d. the democratic, or participative, leadership style is less likely to have positive results with U.S. employees

a. no single leadership style works everywhere in all situations

International Strategy

actions by which companies manage differences across borders to create advantages over their competitors

Local Responsiveness

adjusting or creating an approach to meet the differentiated needs of local markets, of local customers, of local stakeholders such as government officials and employees, and of suppliers and distributors

Hungary and Georgia, two countries in the same continent, are members of different trading blocs. In the context of CAGE distance, which of the following forms of distances does this illustrate?

administrative distance

Value Chain

all the value-creating activities undertaken by the company

Effiage, a French construction company; Schneider Electric, a French energy company; and Krinner, a German solar support company, have teamed up to build the largest photovoltaic plant in France for Neoen, a French renewable energy company. In the context of Krinner's use of internationalization entry tactics, these firms have entered a(n) _____ in this scenario.

ally entry mode

Offset Agreement

an agreement wherein a supplier agrees to buy products from the party to whom it is selling in order to win the buyer as a customer and "offset" the buyer's production costs

Consortium

an alliance of companies pooling their resources, to deliver a turnkey project.

virtual organization

an organization that enables employees to coordinate and execute activities almost entirely through information technology, rather than by working in the same physical space

Compared to the French, the Japanese:

are not confrontational and should not be challenged in an interview. Being confrontational is not only considered impolite, it can show a lack of trust in your Japanese recruit

In the context of the value chain functions, which of the following functions ensures that a company has employees with the right mix of skills who are adequately trained, motivated, and compensated to perform their value creation tasks by following the organization's strategy and creating value? a. Research and development b. Human resources c. Information systems d. Customer service

b. Human resources

Jet Blue, a U.S. based budget airline, does not perform much of its customer service functions from a physical office space. Instead, it hires workers from across the world who can work from their homes using their personal computers. These employees book flights, change itineraries, and support customer questions. Which of the following statements could be a disadvantage of Jet Blue's approach? a. Its employees are unlikely to have the freedom of flexible working hours. b. The company is likely to face difficulties in building a strong company culture. c. Its employees are likely to have high morale due to increased socialization opportunities. d. The company is unlikely to face any difficulty while hiring workers to take up projects when needed.

b. The company is likely to face difficulties in building a strong company culture.

Saoros textiles, which exports its goods to foreign nations, lacks expertise in lobbying activities. It obtains a partner to handle these activities. Which of the following internationalization entry tactics is Saoros using in this scenario? a. The entry tactic of make b. The entry tactic of ally c. The entry tactic of buy d. The entry tactic of donate

b. The entry tactic of ally

McCorky Inc. produces glue for shoes. They have opened a second manufacturing plant in Nigeria in order to supply the European market. They sent expatriates who know the expectations of headquarters, but they are having problems adapting to the environment and culture. What alternative would MOST likely work to handle the problems? a. The company should invest in subsidiary human capital. These should be Nigerian nationals that have worked at the other company location in Nigeria for some years in different capacities. b. They should invest in international human capital. These should be East Asians who worked in the South Korean facility for some years in different capacities. c. They should invest in international human capital. These should be Americans that have worked with the company for some years in different capacities. d. They should save money by using local human capital. These should be newly hired from the local labor market with some years of work experience.

b. They should invest in international human capital. These should be East Asians who worked in the South Korean facility for some years in different capacities.

Mike Norris was assigned as a business manager at an American MNC's Russian subsidiary. In order to motivate his subordinates, Mike delegated limited authority to some of them. However, it did not work out as he expected. Which of the following is most likely the reason for his failure? a. The Russian culture is highly individualistic in nature. b. Workers in Russia are less likely to rely on their own judgment in making decisions. c. Workers in Russia prefer self-managed work teams. d. The Russian culture is characterized by a low power distance.

b. Workers in Russia are less likely to rely on their own judgment in making decisions.

Sustaining profitable growth through a differentiation approach requires that companies: a. create value by having the lowest cost of operation in the industry. b. continuously innovate in ways that are difficult for competitors to imitate. c. should reduce the features of a product to offer a more basic version of it. d. should reduce supplier costs drastically.

b. continuously innovate in ways that are difficult for competitors to imitate

When Disney expanded its theme parks internationally, it went first to Japan. The Tokyo Disney theme park opened in 1983 and is nearly an exact replica of Disneyland in California. It operates under an agreement between Disney and the Oriental Land Company of Japan, where Disney receives a 10 percent royalty on ticket sales and a 5 percent royalty on food and beverage sales in exchange for providing Oriental Land Company with permission to use Disney's brands. In the context of entering a foreign market, this scenario exemplifies the entry mode of _____. a. turnkey operation b. licensing c. joint venture d. franchising

b. licensing

Products

both goods and services as products.

Production

both goods and services as products. When the production system is primarily used to create goods, it is called a manufacturing system. When it primarily creates a service, it is called a service system. Production systems are the overall strategy and mechanism for converting inputs—such as raw materials, land, labor, machinery, information, and energy—into a product that brings value to customers.

McDonalds, a leading fast-food restaurant chain, operates globally. It clearly specifies its operational routines, which include taking customers' orders, preparing food, floor arrangement and restaurant décor. This helps the restaurant chain ensure that customers in various parts of the world have similar experiences with the restaurant. Which control system has McDonalds adopted in this scenario?

bureaucratic control

The Foreign Corrupt Practices Act (FCPA) is a law that was originally established in 1977 in the United States prohibiting U.S. citizens, companies, and their entities from bribing foreign government officials to influence decisions pertaining to new business or contracts. Therefore, American companies operating on a global scale must force this compliance onto their divisions and subsidiaries around the world. This is an example of _____. a. government overreach b. bureaucratic control c. output control d. criminal control

bureaucratic control

Matt, the CEO, meets with the heads of all the departments to decide the type of structure that would be most suitable for the firm. The heads agree that the firm would benefit from a divisional structure. However, Matt is not convinced with the idea. Which of the following statements supports Matt's concern in this scenario? a. Organizations with a divisional structure often struggle to respond to market needs and opportunities, especially if these affect more than one functional unit simultaneously. b. If the company adopts a divisional structure, it will not be able to organize units by the geographic location in which it serves. c. A divisional structure could lead to inefficient knowledge flows between units and high coordination costs. d. If the company adopts a divisional structure, it will not be able to develop specific and unique offerings for each target group.

c. A divisional structure could lead to inefficient knowledge flows between units and high coordination costs.

Which of the following can be a key performance indicator for employees on the engineering and design team of a company that manufactures shoes? a. Capturing more than half of the present market b. Creating a demand for shoes c. Developing a shoe that weighs less than one pound d. Selling all the shoes that have been manufactured

c. Developing a shoe that weighs less than one pound

In the context of entering a foreign market, which of the following companies should avoid choosing export as its entry mode? a. Deano Herbal, which does not wish to invest much on its infrastructure b. Lanne Inc., which uses e-marketers to sell directly to consumers around the globe c. Shethan Co., which supplies bulky and heavy machineries to its customers d. Tandem Footwear, which does not want to keep an inventory in different locations around the world.

c. Shethan Co., which supplies bulky and heavy machineries to its customers

Leugeot Cycles, a fictional bicycle manufacturer, uses a common modular platform, which can be configured based on consumer needs in different countries, for its bicycle models. In this scenario, which of the following statements is true based on the concept of modularity? a. The overall design of the manufactured products is likely to be optimized. b. The company is likely to be restricted from simultaneously working on different aspects of a product. c. The company is more likely to be able to achieve economies of scale. d. All components of the developed products are likely to work well together with minimal integration.

c. The company is more likely to be able to achieve economies of scale.

With regard to transitioning economy in Russia, Russian managers primarily emphasize ________. a. intelligence b. self-esteem c. job security d. altruism

c. job security

Non-Equity Modes

carry less risk but also bring fewer rewards. exporting, turnkey, licensing, franchising.

"needle-in-a-haystack"

challenging in global companies where personal interaction is limited knowledge probider: foreigner problem

key performance indicator

clear-cut instruments to quantify whether individuals are on the right track to helping a company achieve its strategic objectives

Canty Co. is a health hardware company. They encourage employees to share the values of the organization. By providing training and career development opportunities in a democratic-like cooperation environment, Canty facilitates increased knowledge sharing and loyalty amongst its employees. What kind of informal organizational control does this BEST represent?

company culture

Subsidiary human capital refers to the ____

company knowledge within a specific location

subsidiary HC

company knowledge within a specific location

corporate HC

company-specific knowledge, skills, and abilities that transcend any particular location within the entire global company, not simply the collective knowledge of the staff at headquarters

Payroll, benefits, and retirement are examples of _____.

computerize selected hr service

License

contractual agreement between two parties, known as the licensor and the licensee, that grants the licensee certain rights, such as the right to produce or sell the licensor's patented goods, display the licensor's brand name or trademark, or use the licensor's intellectual property

Bureaucratic control

control accomplished through rules and routines

output control

control that focuses on profitability and/or market share

normative control

control that gets subunits to adhere to the values of the organization

codetermination

cooperation between management and workers in decision-making, particularly by the representation of workers on boards of directors.

H1B visa

created to allow for specialized technological and scientific talent that can't be sufficiently recruited from within the United States.

In the context of global leadership, which of these is a component of personal integrity? a. Ability to blend into different local environments quickly b. Courage to confront painful realities c. Ability to anticipate roadblocks d. Adherence to a moral or ethical principle.

d. Adherence to a moral or ethical principle.

According to the GLOBE Project, being a participative leader is more important in ________. a. Indonesia b. Mexico c. Egypt d. Canada

d. Canada

Who among the following is most likely to be an effective global leader? a. Hari, who takes up a new job profile every six months as she is yet to determine what works best for her b. Teri, who prefers to stick to a job profile that is in her comfort zone and avoids new experiences c. Mary, who frequently changes jobs because she feels the work becomes monotonous after some time d. Carrie, who works across different functions in her company and has the ability to adopt various ways to motivate employees, depending on their values and goals

d. Carrie, who works across different functions in her company and has the ability to adopt various ways to motivate employees, depending on their values and goals

Uruguay and Peru, both in South America, have different natural resources and major industries due to their different climates. In the context of CAGE distance, which of the following does this illustrate? a. Cultural b. Administrative c. Geographic d. Economic

d. Economic

Berkshire Hathaway entered the motor vehicle insurance business in India through a greenfield operation by setting up a new company. It invested about $11 million to build a call center and train sales agents in order to gain access to the market while also retaining control of the new company. Harry, a market analyst, considers this approach to be an overly risky endeavor. Which of the following justifies Harry's viewpoint? a. The company will be unable to maintain a tight control over its foreign operations. b. The company will need to split revenues if it wants to use the profits made in one market to develop another market. c. The company will not be able to learn directly from the local market where it wishes to enter. d. The company will have to bear initial costs and establish distribution entirely by itself.

d. The company will have to bear initial costs and establish distribution entirely by itself.

Mraz Ltd. has an organizational structure that is organized by geographical areas, for example North America, South America, East Asia, Europe, and MENA. Each region has their own departments of R&D, marketing, finance, etc.; however, they are facing budget issues as the units spend a lot of resources in ineffective coordination with one another. Of the following options, which is the BEST way for Mraz to go about changing their organizational structure? a. They should centralize R&D to reduce duplication of effort, and production to reach economies of scale. They should also switch to a functional structure to maximize efficiencies in each function. These changes will allow them to increase their profitability. b. They should change the organizational structural to be a company culture scheme. Everybody will have the same norms and values. This way Mraz can reduce redundancies by allocating a budget of R&D in each region. The production should remain local. c. They should use an output control system because it will increase employee morale and loyalty. They could also increase bonuses for each person that reaches a quota. That will increase revenues because people are motivated to produce more. d. They should come together with other competitors and create an organizational structure that allows them to have the same technological standards. This way they can develop a common standard that everybody will follow, and thus the company will save money.

d. They should come together with other competitors and create an organizational structure that allows them to have the same technological standards. This way they can develop a common standard that everybody will follow, and thus the company will save money.

Japanese workers are likely to ________. a. emphasize personal goals over group-wide goals b. be motivated by materialistic rewards c. emphasize individual achievement over group achievement d. be insulted by individual financial incentives

d. be insulted by individual financial incentives

Subway is one of the world's largest fast-food companies, yet the U.S. firm does not own a single restaurant. Instead, the 44,852 Subway restaurants around the world are owned by more than 21,000 independent companies in over 112 countries. With this arrangement, Subway is able to leverage its brand while limiting its risk across the globe. In return, the independent operators are able to harness the operational abilities of Subway to manage their restaurants. In the context of entering a foreign market, which of the following entry modes is exemplified in this scenario? a. turnkey operation b. licensing c. joint venture d. franchising

d. franchising

9.___ _____ can help a firm implement an optimal formula for procuring materials in the most efficient, cost-effective way possible and can update variables in real time to compensate for any changes in conditions.

data analytics

Which of the following is a negatively regarded trait of a leader world-wide?

dictatorial

Administrative Distance

different colonial ties, trading blocs, currency, and politics

The fictional company HotPizzeria distinguishes itself from other pizza places in San Antonio by emphasizing the use of freshly made cheese in their pizzas instead of using processed cheese like their competitors. Their sales increased at a rapid rate, allowing HotPizzeria raise the prices on its pizzas as compared with its competitors. In the context of strategy, this scenario emphasizes the use of a _____ strategy. a. differentiation b. high-cost c. greenfield d. low-cost

differentiation

France's LVMH, a luxury brand, is a meganational business. Its commercial activities are split into six business groups, namely wine and spirits, fashion and leather goods, perfumes and cosmetics, watches and jewelry, selective retailing, and other activities. In the context of organizational structures, which of the following structures has LVMH adopted?

divisional structure

Nestlé is a company that has a multidivisional structure. In addition to a product oriented divisional structure (e.g., Nestlé Waters, Nestlé Health Science) for standardization of brands, it also is organized to allow the company to focus on the unique needs of different markets with divisions such as Americas; Asia, Oceania, and Africa; and Europe & MENA. What is the type of structure called?

divisional structure focused by geographic region

6.___ Samsung, a South Korean consumer electronics company, produced most of the batteries for its Galaxy Note7 phones in-house to improve the energy management of the phone. However, when it investigated its practices after the phones caught fire due to overheating batteries (AKA - built-in 'camp stove app'), it found that batteries supplied by an external vendor were not flawed. This ability to purchase a quantity of a component as well as make it internally not only improves inventory availability, but it also improves quality by forcing competition and pushing innovation within the inhouse unit. Given this information, it can be said that Samsung benefited by its _____ approach.

dual sourcing

Joint Venture(JV)

e simple 50/50 arrangements between two parent companies.

In contrast to a multidomestic strategy, a meganational strategy: a. emphasizes decentralization. b. emphasizes coordination and integration across business units to provide a common and efficient platform for a company. c. requires heavy investments in local and subsidiary human capital. d. focuses on increasing profitability by customizing operations so companies can respond to the differentiated needs of customers in each of the countries where they operate.

emphasizes coordination and integration across business units to provide a common and efficient platform for a company.

expatriates

employees assigned from headquarters or another location to work in a foreign market

company-specific HC

employees' knowledge about the company itself—its unique culture, routines, and systems. This is known as company-specific human capital, and it is developed and maintained within the company.

Linda wants to purchase a new car. She visits a few of the car showrooms in San Antonio to select a car that would be affordable to her as well as the one that she will be proud to own. After careful research, she decided to choose a Chevy Sonic although she had the option to buy a comparable Hyundai Accent for about 15% less. She preferred a car from a U.S. brand rather than the foreign (South Korean) brand. The decision criteria used by Linda exemplifies a(n) _____.

ethnocentrism bias

_______ is the most important factor given by Mexican workers to explain why they missed work.

family reasons

research focused on how some people are motivated by internal aspirations and life goals, whereas others are primarily influenced by the job conditions.

fredrick herzberg's?

Most companies, both large and small, have a structure that is organized and identified by their functional roles, such as a Vice President of Marketing and Vice President of Finance. This type of structure is known as ________ structure. Correct Answer:

functional

Uruguay and Peru, both in South America, are located on opposite coasts and have different climates. In the context of the CAGE distance, which of the following does this illustrate?

geographic distance

What is the purpose of Human Resource practices?

get the right people to the right place at the right time.

When operations such as research and development, manufacturing, sales, and service are aligned across the countries in which a firm operates, the different parts of the corporation use the same methods. This is referred to as _____.

global integration

incentives

hey add a new source of motivation to reward additional effort, whether the goal is improved individual, unit, or organizational performance enable leaders to directly reward specific desired behaviors

In the context of control systems, which of the following is a drawback of personal control?

high cost of individual interaction

2.___ Thistle Inc., a fictional Indian steel manufacturing company, procures large quantities of limestone from China. Which of the following is a challenge that Thistle is likely to face by engaging in global procurement?

high transportation costs

In the context of communication in organizations and their subsidiaries, _____ is the process by which subsidiaries communicate and coordinate work among themselves. Correct Answer:

horizontal coordination

Which of the following [cultural dimensions] is characterized by low dependence on an organization and a desire for personal time, freedom, and challenges?

individualism

Company culture

is a system of shared assumptions, beliefs, and values that effect how employees behave

When a company follows a meganational strategy, _____.

it can pursue a cost-leadership strategy at the global level

international HC

knowledge of global best practices, global industry standards, international trade laws, modular systems and processes, cross-border industry networks, and other experience applicable across multiple companies and countries

location-soecific HC

knowledge relevant or applicable to a particular market. This type of knowledge includes familiarity with the unique geographic, cultural, political, or economic landscape of a country and is relevant to any company doing business within that country.

Licensing

licensing agreements cover a specific time and place.

A global beverage producer plans to hire a market manager for its operations in Europe. The firm wants to ensure that the manager understands the unique needs of consumers in that market, and is experienced in the culture and customs unique to that area to achieve key performance indicators. Which type of human capital is the firm seeking?

location

Research suggests that individuals from cultures with _____ would be motivated by more risky tasks which provide variety and opportunity for fast-track advancement.

low uncertainty avoidance

Amber Inc., a fictional smartphone manufacturing company, produces high-quality, low-cost products. It effectively manages its supply chain, ensuring that suppliers use environmentally friendly work practices. Amber's investment in this additional effort is most likely justified if Amber strives to _____. a. proactively manage product safety concerns. b. use the same mix of marketing strategies in its foreign and domestic markets. c. use a flexible cost-plus pricing strategy. d. maintain its reputation as an ethical organization.

maintain its reputation as an ethical organization

Dienne Automobiles has chosen to enter the foreign market by creating a wholly owned subsidiary. This subsidiary is developed through a greenfield venture. Which of the following internationalization entry tactics is being used by Dienne Automobiles in this scenario?

make entry tactic

10.___ All of the following are common areas that ERPs are designed to help with EXCEPT:

marketing management

A ________ is a structure where employees have two or more reporting relationships generally to a functional manager and a product manager and in global firms often a geographic manager. Correct Answer:

matrix structure

Belinda is a production engineer with a transnational manufacturing company. She primarily reports to the site Director of Manufacturing in San Antonio, but also reports to the VP of Production Engineering who is located in Tokyo, Japan. Which of the following organizational structures is Belinda a part?

matrix structure

control systems

means by which headquarters can force compliance from global subsidiaries

Jenny is not employed as a full-time employee in a particular company. Instead, she chooses to be an outside worker who can be hired by different firms to perform specific tasks in order to broaden her experience base and build her network. She is paid solely for the job performed by her rather than a set salary. In this scenario, Jenny is NOT a(n) _____.

mercenary

What is the amount of a product that would need to be produced in order to make in-house production worthwhile?

minimum efficient scale

Leadership is the influence of others through _____ to achieve goals that satisfy the shared needs of the followers, the leader, the organization, and/or society.

motivation

Logistics

moving materials through the production system

Reshoring/reshored

moving production from outside a country back to the home country

Offshoring

moving production outside the home country

7.___ In the context of choosing an international strategy, which of the following is a difference between a multidomestic strategy and a meganational strategy?

multidomestic emphasizes local responsiveness over global integration; meganational emphasizes global integration over local responsiveness, and transnational tries to achieve a balance between the two.

6.___ MoonLit Foods is a fictitious global supplier of ready-to-eat snacks. Although it has a variety of eatables, it has always chosen to tailor its products to the needs and preferences of customers in each of the countries in which it operates. In the context of choosing an international strategy, which of the following strategies has MoonLit adopted in this scenario?

multidomestic strategy

Powell Motors, an automobile manufacturing company, manufactures and customizes cars based on the needs of its customers. It increases profitability by responding to the differentiated preferences of customers and employees in each of the countries where it operates. It is evident that Powell Motors pursues a _____ strategy.

multidomestic strategy

freelancer

new employees, free agents

Outcourcing

obtaining a good or service from an external supplier, often in international markets

3.___ Magnolia Inc., a fictional American software development company, has opened a call center in India staffed with employees it hires locally. This scenario is an example of _____.

offshoring

4.___ IRead Inc., a fictional American publishing company, outsources content writing work to Padha Ltd., an Indian content services company. IRead edits the work produced by Padha employees daily, but due to the time difference, an additional day is lost every time changes must be made. Additionally, IRead is unable to stipulate the editorial accuracy rate that Padha employees should achieve. This scenario illustrates the _____ faced by IRead from outsourcing to Padha.

operational risk

Unlike a functional structure, a divisional structure:

organizes a company s units by the geographic region in which it operates, or the customer segments it serves.

Contract employees

outside workers who are hired by a firm to perform specific predetermined tasks for a company and who are paid by the job

The ________ model of leadership style has been recommended by American research studies as the one more likely to have positive results with most U.S. employees

participative

In the West African nation of Ghana, the society's collectivist norms often supersede the idea that individuals should be differentiated from their peers. Also, the traditional culture emphasizes male dominance. Which Human Resources practice is most impacted by these cultural nuances?

performance management

Mathew, a human resource executive in SofoTamp, assists managers in conducting the appraisal of employees. In this scenario, Mathew is involved in _____.

performance management and rewards

Participative behavior on the part of a leader is _____ [with respect to global acceptance].

perhaps good or bad leadership, depending on the culture

Toyota frequently sends experts from its headquarters to its regional automotive production units. These experts are trusted employees of the company who visit global subsidiaries to interact with and enforce compliance by the units. In this scenario, Toyota appears to have adopted a(n) _____.

personal control system

Cultures which may be describes as culturally tight have _____. Correct Answer:

pervasive norms and cultural sanctions for deviation from norms even when away from the native country.

Geographic Distance

physical differences, no shared land borders. different environment, climate, agriculture.

Nicole is the CEO of the fictional company Helium Inc., a smartphone manufacturing company. She is considering the time and money required to develop chipsets internally and is comparing to the advantages of producing them in-house over purchasing them from a global supplier. Considering that many terms in business are synonyms, which of the following terms does NOT describe the process in which Nicole is involved? a. outsourcing decision b. sourcing decision c. procurement decision d. make-or-buy decision

procurement decision

organizational structure

reinforce international strategies by clarifying reporting channels, facilitating knowledge flows up and across the company, and determining where decision making happens.

IRead Inc., a fictional American publishing company, outsources content writing work to Padha Ltd., an Indian content services company. IRead would prefer to edit the work produced by Padha employees daily, but due to the contract terms specifying a number of articles per week, Padha delivers articles in batches every Friday evening. Additionally, IRead is unable to evaluate the qualifications and experience of Padha employees. This scenario illustrates the _____ faced by IRead from outsourcing to Padha. a. operational risk b. structural risk c. credit risk d. liquidity risk

structural risk

Asphatzu Inc., a fictional heavy-duty machines manufacturing company, focuses on increasing profitability by customizing products, services, and operations so it can respond to the differentiated needs and preferences of customers and employees in each of the countries where it operates. In this scenario, Asphatzu Inc. should invest in _____ human capital. a. corporate b. transnational c. subsidiary d. international

subsidiary

Maroon Inc. is a smartphone manufacturing company. All its activities related to transforming components into products for the end user, including the transfer of money and information, constitute its _____.

supply chain

Location-specific human capital is employees' knowledge about their company's: Correct Answer:

target market.

human resource practices

tasks focused on attracting, training, motivating, and retaining people

ERP Systems

technology that helps firms gather all relevant information into a single database, represent all business functions in a module, and provide access to data in real time

Enterprise Resource-planning

technology that helps firms gather all relevant information into a single database, represent all business functions in a module, and provide access to data in real time

Global leadership is Correct Answer:

the action of influencing others through motivation to achieve goals that satisfy the shared needs of the followers, the leader, the organization, and/or society, with the addition of an understanding and appreciation of culturally implied needs and expectations.

Strategy

the actions managers take in pursuit of company objectives for profitable growth

The term "first-mover advantage" is BEST defined as

the benefit of being the first entrant into a market.

Information Systems

the company's electronic networks for managing inventory, tracking sales, pricing products, selling products, and recording and monitoring customer service concerns. Information systems also help companies manage knowledge and coordinate communication across functions within the organization.

A PEST analysis is

the evaluation of political, economic, socio-cultural, and technological factors of a market.

critical behaviors

the few key areas of activity in which meeting strategic objectives are absolutely necessary

Production

the function that actually makes the product or provides the service.

Distribution

the function that moves finished products from operations to wholesalers, retailers, or end consumers.

Unlike in functional structures, in network structures, _____.

the importance of informal structures is high.

local hc

the knowledge, skills, abilities, and other attributes that make up the location-specific experiences of employees in a particular country or market

In the context of needs, Eastern cultures tend to focus on _______

the needs of society

organizational capability

the power to combine and leverage a company's resources to achieve specific goals

Global Integration

the process by which a company combines different global activities so the different parts of the corporation use the same methods

Global integration is

the process by which operations are aligned across the countries in which a company operates.

horizontal coordination

the process by which subsidiaries communicate and coordinate work among themselves

Global procurement

the process of buying globally

Value Creation

the process of maximizing the difference between a customer's willingness to pay and the cost of a product

Value Capture

the process of maximizing the portion of that value the company keeps

Exporting

the process of producing a good or service in one country and selling it in another country

Research and Development

the process responsible for coming up with ideas for new products and production processes.

Minimum efficient scale

the smallest production quantity at which long-run, total average cost is minimized

personal control

the use of frequent human interaction to enforce control

Harber Inc. is a button and zipper business. It has many small factories all over the world. This was working well until recently, as Harber could produce and sell in the same country. But now competitors are bringing their products to the same countries Harber operates, but at lower prices. What kind of business model would be BEST in order to accomplish the company's goals? a. They should close the small factories and centralize production to achieve economies of scale. Then just export to these countries at lower prices. b. They should lower the standards of production in their factories to produce lower-quality products. Then sell them in the usual distribution scheme. c. They should open new small factories in different countries to achieve economies of scale. Then just import to these countries at higher prices. d. They should raise the standards of production in their factories to produce higher-quality products. Then sell export them to America at high prices

they should close the small factories and centralize production to achieve economies of scale. Then just export to these countries at lower prices.

Human Resources

this function applies management practices and policies to the company's workforce. It ensures that the company has employees with the right mix of skills to follow the organization's strategy and create value, and that they are adequately trained, motivated, and compensated to perform their value creation tasks.

Marketing and Sales

this function is responsible for finding the right market niches and promoting, advertising, and selling products in those markets.

Customer Service

this function provides service and support after a sale. This activity solves customer problems and supports customers in using their new products.

5.___ In the context of global integration, which of the following is a way by which a company can lower its per-unit costs?

to centralize production

Profitable Growth

when a company increases revenues in excess of expenses over time