BA 301 Chapters 3 & 4

The physical infrastructure in Borneo is weak.

Rooney, Inc. is a company that manufactures sugar. It is based in South Africa. The company follows the just-in-time approach in which it does not believe in stocking raw materials and maintaining an inventory, but instead relies on a strong supply chain to deliver materials in time. As a part of recent business development plans, the company decided to begin importing raw materials from Borneo. Which of the following, if true, would force the company to question its reliability on the JIT approach?

True

The balance of power between a firm and its customers affects its ability to compete effectively and earn above-average returns.

True

The components of a mission statement include company philosophy, customers and markets, and geographic focus.

False

The institutional environment of a country has little effect on the individuals and organizations that operate within it.

True

The key to successful strategy implementation is having an internal organization that is consistent with and supportive of the strategy.

High Power Distance

When Maria arrived from Mexico to study in the U.S., she noticed a difference between the students in Mexico and the students in the U.S. The American students felt comfortable asking questions, they were eager to share a thought or an opinion, and in some instances they even contradicted the teacher. Maria comes from a country that has ________.

Creates a new, wholly-owned subsidiary in

When a company ________ a foreign country, it makes a direct investment to establish a business that it solely owns and controls there.

Marketing and Sales

________ activities are designed to inform potential customers about the products and services the firm has available and entice them to purchase them.

Uncertainty Avoidance

________ is when cultures differ in the extent to which they need clarity or can tolerate ambiguity.

Process Technological Changes

________ typically relate to alterations in how to make products or how to manage enterprises.

Cost leadership strategy

A manufacturer striving to be the lowest-cost producer of a product or service, while charging slightly less than industry-average prices, is pursuing a(n) ________.

Barriers to entry

A newly established company, The Malt Company, wishes to enter the beer market in Country A by building a new brewery there. Many companies already have breweries in Country A. These companies spend heavily on advertising, which Malt is finding difficult to afford. This is an example of ________.

Mission Statement

A(n) ________ articulates the fundamental purpose of the organization and often contains several components.

Integrated differentiation-cost leadership strategy

Campacola is a soda company that is seeking to enter the market by introducing an unusual line of sodas that contain granules that pop in the mouth. It intends to sell these sodas at no greater cost than normal sodas. What strategy is the company using in entering the soda market?

Balanced regulatory control and political rights

Cluster 4 countries have the most developed institutional infrastructure, with ________

True

If a country's laws related to intellectual property rights are weak, then firms with valuable technologies will be reluctant to bring them into that country.

High-context Cultures

In ________, people pay close attention to the situation and its various elements.

Uncertainty Avoidance

In a steel mill in Japan, all tasks take place only after careful planning. The employees rely on the rules, laws, and regulations set by the authorities. They proceed to make changes step by step. The managers of the mill believe this reduces risks to a minimum. This is an example of ________.

True

In low-context cultures, the situation itself may or may not affect what is considered to be appropriate behavior.

True

Increasing globalization has dramatically changed the competitive landscape for everyone in recent years

Global Focus

Jenson Foods is headquartered in New Jersey and has subsidiaries in many countries across the world. The home office has centralized authority and the international subsidiaries follow the same or a similar strategy in each of their markets. Jenson Foods is following a ________.

False

Managers rarely have to manage multicultural teams within one organization in one location.

Implemented within old strategies

McKinsey discovered that performance declined when many of their clients implemented new strategic plans because the strategies were ________.