Chapter 9 - International Business

B. mission statement.

A broad statement that defines the organization's purpose and scope is known as a: A. strategic plan. B. mission statement. C. vision statement. D. values statement. E. none of the above.

C. vision statement.

A description of the company's desired future position if it can acquire the necessary competencies and successfully implement its strategy is known as a: A. strategic plan. B. mission statement. C. vision statement. D. values statement. E. none of the above.

E. two of A,B,andC.

A strategic plan: A. will be prepared when the tactical plan is finalized. B. describes how the firm's goals will be met. C. contains sales forecasts and budgets. D. all of the above. E. two of A,B,andC.

C. strategic planning.

According to a survey by Bain & Company, the management tool with the highest level of satisfaction among global executives is: A. value chain analysis. B. industry and competitor analysis. C. strategic planning. D. environmental analysis. E. none of the above.

C. create value for customers and for which customers are willing to pay.

According to the text, competencies: A. are skills or abilities required in order to achieve competitive advantage. B. refer to the ability of a company to have higher rates of profits than its competitors. C. create value for customers and for which customers are willing to pay. D. two of the above. E. none of A, B, and C.

C. firm's chief executive officer.

According to the text, the firm's ultimate manager of strategic planning is the: A. vice president for planning. B. chief operating officer. C. firm's chief executive officer. D. director of the strategic planning department. E. none of the above.

E. two of A,B,andC.

According to the text, the strategic planning process provides a formal structure in which managers will: A. analyze the company's external and internal environments. B. define the company's business and mission. C. formulate scenarios. D. all of the above. E. two of A,B,andC.

B. set corporate objectives.

According to the text, the strategic planning process provides a formal structure in which managers will: A. two of B,C,andD. B. set corporate objectives. C. implement strategies. D. manage relationships with government and society. E. all of B,C,andD.

E. How will this customer value be created?

According to the text, value chain analysis focuses primarily on which question? A. What values are important to our company? B. What is our strategy? C. Who are the company's target customers? D. What does the customer value and how much is the customer willing to pay for this value? E. How will this customer value be created?

C. value chain analysis.

An assessment conducted on the chain of interlinked activities of an organization or set of interconnected organizations and intended to determine where and to what extent value is added to the final product or service is known as: A. economic value added. B. internal analysis. C. value chain analysis. D. SWOT analysis. E. none of the above.

C. manufacturing; marketing

Historically, more aspects of ______________ have been standardized and coordinated worldwide by companies than has been the case for other value chain activities such as __________. A. research and development; manufacturing B. marketing; manufacturing C. manufacturing; marketing D. marketing; research and development E. none of the above

B. interaction with important customers and suppliers should be included.

In the new strategic planning process: A. top management is assigning strategic planning to teams of line and staff managers from the same business. B. interaction with important customers and suppliers should be included. C. governments and other stakeholders should be direct participants. D. all of the above. E. two ofA,B,andC.

E. two of the above.

In the traditional strategic planning approach: A the CEO and the head of planning got together to devise a corporate plan, which would then be handed . to the operating people for execution. B. interaction with important customers and suppliers was included. C. governments and other stakeholders were direct participants. D. tended to fall victim to collective mind-sets about the competitive environment. E. two of the above.

E. two of B, C, and D.

International firms have found it necessary to institute formal global planning: A. all of B, C,and D. B. to eliminate the practice of informal planning. C. to provide top management with a means to identify threats and opportunities worldwide. D. to provide consistency of action among the firm's managers. E. two of B, C, and D.

A. all of B,C,andD.

Managers of international companies that are attempting to develop a competitive advantage face a formidable challenge because: A. all of B,C,andD. B. resources are always scarce. C. there are many alternative ways to use the company's scarce resources. D. managers are forced to make choices regarding what to do and what not to do. E. two of B,C,andD.

A. create value for customers and for which they are willing to pay.

To create a competitive advantage that is sustainable over time, the international company should try to develop competencies that: A. create value for customers and for which they are willing to pay. B. are easy to imitate or substitute for. C. are expensive to develop and maintain. D. all of the above. E. twoofA,B,andC.

D. all of the above.

To fully understand why, how, and where they intend to do business, now and over time, managers must have: A. a clear understanding of the company's mission. B. a vision for how they intend to achieve the company's mission. C. an understanding of how the company plans to compete with other companies. D. all of the above. E. twoofA,B,andC.

C. define the firm's mission.

To set corporate objectives, management must first: A. select a viable market segment. B. quantify them. C. define the firm's mission. D. research the market. E. none of the above.

E. home replication strategy.

When a company faces relatively weak pressures for local responsiveness and cost reductions, it should tend to use a: A. global strategy. B. multidomestic strategy. C. transnational strategy. D. differentiation strategy. E. home replication strategy.

C. transnational strategy.

When a company faces strong pressures for both reducing costs and adapting products for local markets, it should tend to use a: A. global strategy. B. multidomestic strategy. C. transnational strategy. D. differentiation strategy. E. home replication strategy.

A. global strategy.

When a company faces strong pressures for reducing costs and limited pressure to adapt products for local markets, it should tend to use a: A. global strategy. B. multidomestic strategy. C. transnational strategy. D. differentiation strategy. E. home replication strategy.

B. multidomestic strategy.

When there is strong pressure for a company to adapt its products or services for local markets, it should tend to use a: A. global strategy. B. multidomestic strategy. C. regional strategy. D. differentiation strategy. E. home replication strategy.