Exam 3 International Business
Firms that thrive on agile supply chains: a. quickly tackle the shocks that come up in supply chain. b. change their configurations in response to long-term changes. c. treat their suppliers as partners and have "partner councils" with regular meetings. d. involve themselves in making a series of make-or-buy decisions.
A
In the context of the institution-based view, formal rules of the game affect marketing and supply chain management by: a. imposing constraints on the equity levels held by foreign retailers. b. focusing on the underlying differences in culture, language, and norms. c. encouraging only those companies that follow a localization strategy. d. imposing restrictions on companies' designing strategies.
A
Jane is a middle-aged woman fond of EpidermaNow's skincare products. These products are produced and marketed globally. EpidermaNow recently released a sun-screen lotion. Despite the lotion's high price and unproven effectiveness, Jane bought the lotion on the day of its release in the market. Given this information, Jane belongs to the segment of _____. a. global citizens b. global dreamers c. antiglobals d. global agnostics
A
Lightwire Co. made the decision a decade ago to make the copper wires it needs for its products in house rather than outsourcing this need. As a consequence, Lightwire was stuck with relatively higher costs over the long term, and is currently in negotiations to be bought out. Where, in the context of supply chain management, did Lightwire go wrong? a. Adaptability b. Alignment c. Adjustment d. Agility
A
Which of the following examples best illustrates the effect of informal institutions on marketing and supply chain management? a. Fitchell Corp. communicated new quality regulations to its vendors, which in turn changed the quality standard of the material supplied by the vendors to their domestic companies. b. Huran Inc. dropped the idea of advertising its products via newspapers in Duador because most of the people in Duador read news on the Internet. c. Tenoy Inc. once had the most graphic animation in advertisements, but is forced to modify them because such advertisements are not rare anymore. d. Esca Motors dissolved its contract with a company that was providing with aerodynamic frames for its vehicles because the company was using this as a leverage to compete with Esca Motors.
A
Which of the following factors leads to excessive bargaining in a supply chain? a. Supply chain members of more or less equal standing b. A recognized leader exercising power c. Alignment of interests between members of the supply chain d. Flexibility in a supply chain
A
_____ refers to the ability to change supply chain configurations in response to longer-term changes in the environment and technology. a. Adaptability b. Alignment c. Agility d. Authority
A
Which of the following is true of corporate social responsibility (CSR)?
A It emerged as a movement against free market system.
Which of the following is true of social issue participation?
A It may actually reduce shareholder value.
Burger Champ, a restaurant chain based in Zaneland, has a subsidiary in Arkadas. In this case, which of the following will be true if Burger Champ adopts a localization strategy?
A It will include wine in the menu because wine is famous in Arkadas.
Rues and West is a pharmaceutical firm based in Belwick. It was recently condemned by many social organizations for the harmful after-effects triggered by its new painkiller. In this scenario, which of the following will be true if Rues and West adopted a reactive strategy?
A It would, at first, deny the severity of the harmful effects caused.
Georgia is a manager of an MNE seeking to pay more attention to CSR activities. Which of the following is an action she can take moving forward?
A Pick CSR battles carefully and not blindly imitate other firms' CSR activities.
Which of the following is a formal institution that affects corporate social responsibility?
A Regulatory pressures
In the context of corporate social responsibility (CSR), which of the following statements is true of the VRIO (Value, Rarity, Imitability, and Organization) framework?
A Resources that are hard to imitate give firms a sustainable competitive advantage.
Which of the following is an example of the free market school of thought?
A a manager, focuses on profit maximization and its derivative, shareholder value maximization.
According to a stakeholder view of the firm, a balanced triple bottom line focuses on:
A economic, social, and environmental performances
_____ refers to efforts to create, develop, and defend markets that satisfy individual and business customers.
A marketing
In the context of market segmentation, unlike global citizens, global dreamers:
A may not be able to afford, but nevertheless admire, global brands.
Which of the following is an example of secondary stakeholder groups?
A members of an environmental group
Which of the following is one the components of the marketing mix?
A promotion
A _____ is indicated by relatively little or no support by top management for corporate social responsibility (CSR) causes.
A reactive strategy
The term global sustainability is defined as the ability:
A to meet the needs of the present without compromising the ability of future generations to meet their needs in future.
In the context of market segmentation, which of the following strategies should be adopted by multinational enterprises to target global agnostics? a. They should write them off as lost customers. b. They should market localized products and services under local brands. c. They should leverage standard global brands. d. They should imitate the features of local brands in their global brands.
B
In a supply chain, having a recognized leader exercising power leads to: a. excessive bargaining between supply chain members. b. facilitation of legitimacy in the supply chain. c. reduction in the efficiency of the supply chain. d. violation of trust between supply chain members.
B
In the context of marketing mix, the term _____ refers to the expenditures that customers are willing to pay for a product. a. value b. price c. margin d. promotion
B
In the context of supply chain management, which of the following is true of adaptability? a. It helps in overcoming short-term fluctuations in the supply chain. b. It can be enhanced by making a series of make-or-buy decisions. c. It involves aligning the interests of various elements in the supply chain. d. It focuses on achieving power and trust.
B
In the context of supply chain management, which of the following strategies will help in improving alignment? a. Making a series of make-or-buy decisions b. Introducing a neutral middleman, like third-party logistics (3PL) providers c. Monitoring major geopolitical, social, and technological trends d. Changing supply chain configurations in accordance with short-term changes
B
Thumb Ink Inc. is a publishing company based in the United States. Its marketing and supply chain activities will add value when: a. it dispatches new quality regulations to its vendors. b. it switches to online media because they are widely used. c. it copies the standards of other publishing companies. d. it enters into joint ventures.
B
Which of the following are the two key factors to achieving alignment? a. Supply chain members and consumers b. Power and trust c. Inputs and outputs d. Flexibility and control
B
Which of the following statements is true of a distribution channel? a. It is almost synonymous with demand chains. b. It traditionally encompasses outbound logistics. c. It handles the entire process of value creation. d. It inhibits any contribution to the world's GDP.
B
Which of the following statements is true of standardized promotions? a. They convey messages according to the country-of-origin effect. b. They reduce the costs incurred by companies for promotional efforts. c. They are proven to be more effective than localized promotions in all countries. d. They display different content through similar modes of promotion.
B
Mega giants Home Depot and Lowe's both have NGOs such as the Forest Stewardship Council certify that suppliers in Brazil, Indonesia, and Malaysia use only material from renewable forests. This is an example of:
B Adding value but not adding rarity
Which of the following is an informal institution that affects corporate social responsibility?
B Normative pressures
In the context of promotions, which of the following is a common mistake than many MNEs make overseas?
B They promote products and services overseas without first researching if their promotion will work in the country.
Allfoods Corp. is a firm that mainly produces various artificial food coloring agents. When it was found out that it marketed untested and unsafe food coloring agents, Allfoods Corp. admitted responsibility for it. But the management of the company thinks that corporate social values is just a nuisance. In this scenario, Allfoods Corp. has adopted a _____.
B defensive strategy
Peter, a passionate athlete, uses sports shoes manufactured by Friction Shoes Inc. because of their high quality soles. When Friction Shoes introduced a new line of shoes, Peter could not afford to buy them. Nevertheless, he feels that they are the best in the market. In this case, Peter belongs to the segment of _____.
B global dreamers
In the context of institutions and corporate social responsibility (CSR), firms adopting defensive strategy:
B initially admit responsibility but often fight it.
A firm decided not to do business in the country of Lazania because of that government's recent human rights abuses, even though the move may reduce some shareholder value. This is an example of
B social issue participation
_____ is the flow of products, services, finances, and information that passes through a set of entities from a source to the customer.
B supply chain
Unlike firms embracing a proactive strategy, firms embracing a reactive strategy:
B use denial as the first line of defense to problems.
. In the context of the marketing mix, the term _____ refers to the location where products and services are provided. a. promotion b. product c. place d. price
C
Which of the following statements is true of global agnostics? a. They are in favor of buying global brands that signal prestige and cachet. b. They are skeptical about whether global brands deliver higher-quality goods. c. They are most likely to lead anti-globalization demonstrations. d. They may not be able to afford, but nevertheless admire, global brands.
C
In the context of marketing products, which of the following scenarios illustrates a standardization strategy?
C Charge Tool, a spark plug manufacturing company based in Lucitona, sells steel spark plugs in Cantononia because they are the most preferred spark plugs in Lucitona.
In the context of corporate social responsibility (CSR) and the VRIO (Value, Rarity, Imitability, and Organization) framework, which of the following is true of organization?
C Complementary assets, when combined with valuable, rare, and hard-to-imitate capabilities, may enable a firm to fully utilize its corporate social responsibility (CSR) potential.
In the context of corporate social responsibility (CSR), which of the following actions should be taken by managers to attain global sustainability?
C Integrating corporate social responsibility as part of the core activities and processes of a firm
Which of the following is true of the activities engaged by proactive firms?
C They build alliances with stakeholder groups for short-term, manageable projects of mutual interests.
In the context of institutions and corporate social responsibility (CSR), which of the following is true of the firms that adopt a proactive strategy?
C They view corporate social responsibility (CSR) as a source of differentiation that permeates throughout the corporate DNA.
A(n) _____ is characterized by some support from top managers, who may increasingly view corporate social responsibility (CSR) as a worthwhile endeavor.
C accommodative strategy
At Write White Publishing Corp., a paper manufacturing company, the managers have changed their traditional outlook of profit maximization. They are increasingly aware of their social responsibility and are passionate toward corporate social responsibility (CSR) causes. In this case, Write White Publishing Corp. follows a(n) _____.
C accommodative strategy
John works as a quality analyst at a technological firm. He wanted to buy a mobile phone for his wife. Though he was abreast of the latest mobile phone brands that were introduced in the global market, he bought a phone that was produced and marketed locally. He was skeptical about whether global brands deliver high-quality goods. In the context of market segmentation, it is evident that John falls under the segment of _____.
C antiglobals
Which of the following is an example of a product?
C fuel used to run machines
Which of the following is an example of primary stakeholder groups?
C managers and employees of an organization
How demand changes when price changes is known as _____.
C price elasticity
_____ refers to activities to plan, organize, lead, and control the flow of products, services, finances, and information that passes through a set of entities from a source to the customer.
C supply chain management
According to the VRIO (value, rarity, imitability, organization) criteria, which of the following marketing or supply chain activities must be avoided by companies? a. Activities that are hard to imitate b. Activities that add value c. Activities that contribute to organizational capabilities d. Activities that are followed by other vendors
D
In the context of supply chain management, which of the following strategies will ensure success? a. Refraining from focusing attention on the formal regulatory framework b. Preferring informal institutions rather than formal regulatory frameworks c. Focusing on product and price rather than promotion and place d. Focusing on agility, adaptability, and alignment
D
Jane's, Peter's, Joshua's, and Austin's monthly incomes are $600, $550, $650, and $700, respectively. Since they live together, each of them is obliged to pay $100 for household expenses every month. In this scenario, who among the following is likely to be the most price sensitive among the four? a. Jane b. Austin c. Joshua d. Peter
D
Which of the following is a likely outcome for a firm that adopts a code of conduct simply as a window dressing? a. More scrutiny by stakeholders b. Internal shifts towards greater CSR c. Firm becomes transformed internally into more self-motivated, better corporate citizens d. All of the above
D
Richard, Kate, Ryan, and Alexis are managers of four subsidiaries of a restaurant chain. In a discussion for adopting a suitable code of conduct, they share different views. In this scenario, who among the following has an instrumental view toward the adoption of codes of conduct?
D Alexis believes that firms should use corporate social responsibility (CSR) activities only as a tool to make good profits.
Michael is a manager at a tannery. In the wake of numerous protests from animal activists, he suggested adopting corporate social responsibility (CSR) values. In this case, which of the following will be true if he has a positive view toward CSR values?
D He will be self-motivated to do it right regardless of social pressures.
Why would an American company downplay its American origin while operating in another country?
D Strategically downplaying the country-of-origin effect.
In the context of institutions and corporate social responsibility (CSR), which of the following is true of the firms that adopt reactive strategy?
D They do not feel compelled to act in the absence of disasters and outcries.
During one of the routine inspections, Harlose Motors, an automobile manufacturing company, found that a few of its new practices were detrimental to the environment. Immediately, it replaced them with environmentally friendly practices though it involved additional costs. In this scenario, which of the following strategies is followed by Harlose Motors?
D a proactive strategy
Jason manages a chain of restaurants. He thinks along the lines of corporate social responsibility (CSR). As a CSR advocate, he will believe that:
D all stakeholders have an equal right to bargain for a fair deal.
Free market advocates argue firms may lose their character as capitalistic enterprises when they:
D focus on social welfare
The urgency of global sustainability in the 21st century is due to the:
D increase the population and poverty
A(n) _____ refers to a strategy that anticipates corporate social responsibility (CSR) and endeavors to do more than is required.
D proactive strategy
When Starbucks CEO Howard said "we must balance our responsibility to create value for shareholders with a social conscience", which CSR strategy was he referring to?
D proactive strategy
In the context of marketing mix, localization can be adopted by:
D selling products that appear to be locally adapted.
At the heart of corporate social responsibility (CSR), the concept of _____ refers to any group or individual who can affect or is affected by a firm's actions.
D sponsor
Activities based on corporate social responsibility always hurt the economic performance of a firm. a. True b. False
FALSE
Because firms are an indirect source of environmental problems, many citizens believe that governments, not firms, should take responsibility for solving them. a. True b. False
FALSE
Cultures, norms, and values of organizations are the formal institutions that affect marketing and supply chain management. a. True b. False
FALSE
Directly imitating and competing with Western multinational enterprises (MNEs) leads to opportunism. a. True b. False
FALSE
For savvy managers, it is highly important to lay emphasis on formal rules governing marketing rather than on informal rules. a. True b. False
FALSE
Holding the price of a product constant, price sensitivity is directly proportional to the income of consumers. a. True b. False
FALSE
If corporate social responsibility (CSR) resources are valuable and rare, even imitable resources will give firms a sustainable competitive advantage. a. True b. False
FALSE
In the context of marketing, most blunders occur due to a firm's failure to appreciate the formal rules of the game. a. True b. False
FALSE
In the context of strategic response framework, a reactive strategy is indicated by complete support by the top management for corporate social responsibility (CSR) causes. a. True b. False
FALSE
Localization is more cost effective than globalization. a. True b. False
FALSE
Managers are able to face the causes underpinning global sustainability because of their straightforward nature. a. True b. False
FALSE
Managers who adopt accommodative strategy would view corporate social responsibility (CSR) as an added cost or nuisance. a. True b. False
FALSE
Marketers are increasingly able to assess the value of targeting teens and young adults through social media. a. True b. False
FALSE
The negative view of codes of conduct suggests that corporate social responsibility (CSR) activities simply act as a useful instrument to make good profits. a. True b. False
FALSE
The sentiment that Milton Friedman expressed in an article published in 1970-that the firm is an economic enterprise first, foremost, and only-has become widely accepted. a. True b. False
FALSE
The term global dreamers refers to the segment of consumers who are skeptical about whether global brands deliver higher-quality goods
FALSE
When firms participate in social causes, they add value to a firm's resources. a. True b. False
FALSE
As the fourth P in the marketing mix, place includes the online marketplace. a. True b. False
TRUE
Corporate social responsibility (CSR) refers to the consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm to accomplish social benefits along with the traditional economic gains that the firm seeks. a. True b. False
TRUE
Global warming is a nearly irreversible effect on the environment created by industrialization. a. True b. False
TRUE
In firms embracing a proactive strategy, corporate social responsibility (CSR) activities acts as source of differentiation. a. True b. False
TRUE
In international marketing, country-of-origin effect refers to the positive or negative perception of firms and products from a certain country. a. True b. False
TRUE
In order to achieve trust in supply chain relationships, there must be a perception of fairness and justice from all supply chain members. a. True b. False
TRUE
In the firms that embrace reactive strategy, the need to accept some corporate social responsibility (CSR) is neither internalized through cognitive beliefs nor does it result in any norms in practice. a. True b. False
TRUE
Instead of being obscure, supply chain management is gaining traction and becoming a widely known aspect of global business. a. True b. False
TRUE
The influence of nongovernmental organizations (NGOs) and other civil society stakeholders is increasing. a. True b. False
TRUE
The term "supply chain" is almost synonymous with "value chain," encompassing both inbound and outbound logistics. a. True b. False
TRUE
The term global citizens refers to the segment of consumers who are in favor of buying global brands that signal prestige and cachet. a. True b. False
TRUE
Third-party logistics (3PL) provider is a neutral intermediary in the supply chain that provides logistics and other support services. a. True b. False
TRUE
What corporate social responsibility (CSR) critics describe as "greed" is often translated as "incentive" in the vocabulary of free market advocates. a. True b. False
TRUE