INTB

Typically, the time frame for short-range plans is ____________.

1-3 years

External forces consist of

1. Competitive 2. Distributive 3. Economic 4. Socioeconomic 5. Financial 6. Legal 7. Physical 8. Political 9. Sociocultural 10. Labor 11. Technological

3 primary concersn

1. globalization has produced uneven results across nations and people 2. that globalization has had deleterious effects on labor or labor standards 3. that globalization had contributed to a decline in environmental and health conditions

International Company (IC)

A company with operations in multiple nations

International Business

Business that is carried out across national borders. Includes not only international trade and foreign manufacturing but also the growing service industry in areas such as transportation, tourism, advertising, consulting, construction, retailing, wholesaling, and mass communications.

Who is the ultimate manager of strategic planning and strategy making?

CEO

Labor

Composition skills and attitudes of workers

True or false: The purpose of contingency planning is to be ready for events that have a minor impact on the firm.

False

______ is the best strategy for advancing the world's economic development.

Free trade

Which of the following is NOT typically an argument against globalization?

Globalization has decreased efficiency.

Which of the following are typical arguments against globalization? (check all that apply)

Globalization produces uneven results across nations. Globalization has been linked to a decline in environmental conditions. Globalization has worsened labor standards.

What are the three types of measures to assess performance as outlined in the text? (Check all that apply.)

Measures of the company's success in obtaining and applying required resources Measures of the company's progress toward achieving its mission, vision, and objectives in a manner consistent with a company values Measure of effectiveness of the company's employees in performing their assigned jobs

The levels of foreign direct investment and exporting have been ______ in recent years.

increasing

What steps are included in the global strategic planning process? (check all that apply)

Make tactical plans Define the business and mission Analyze the external environment

Internal forces

Management has some control and can manage in response to changes. Called controllable forces

To be effective, a company's international strategy must be consistent among all departments of the company. In other words, the international strategy must have (internal/external) consistency.

internal

A plan that guides the way firms make choices about developing and deploying scarce resources to achieve their international objectives is called a(n) _________.

international strategy

The definition of international business includes: (check all that apply)

international trade foreign manufacturing service industries (excluded: domestic trade)

Competitive

kinds and numbers of competitors, their locations, and their activities

Many companies have moved toward a strategic planning approach with a (more, less) structured format.

less

Under the contemporary strategic management approach to strategic planning, who is responsible for strategic thinking, planning, and implementation?

line management

The contents of a strategic plan today are more likely to reflect a (short/long)-term perspective on resource allocation.

long

A supplier that moves locations to be closer to an original equipment manufacturer is an example of a _____ driver.

market

An accounting firm establishing foreign operations in markets in which their principal accounts are located to prevent competitors from gaining access to this accounts is an example of a _____ driver.

market

True or false: Corporate objectives help firms stay on course with their mission and vision.

True Reason: Objectives direct the firm's course of action, maintain it within the boundaries of the stated mission and vision, and ensure its continuing existence.

True or false: Relatively few companies act on key international trends they observe.

True Reason: Relatively few companies act on key international trends they observe.

Environment

all forces influencing the life and development of the firm

domestic environment

all the uncontrollable forces originating in the home country that surround and influence the firm's life and development Managers are more familiar

Socioeconomic

characteristics and distribution of the human population

A company defending its home market by entering the competitor's home market is an example of a ______ driver.

competitive

New firms, mainly from newly industrialized countries, entering the world markets in computers and electronics is an example of a ______ driver.

competitive

Actions plans to help organizations reach their objectives are called _________.

competitive strategies

When a firm makes plans for the best- or worst-case scenarios or for critical events that could have a severe impact on the firm, the firm is doing __________ planning.

contingency

Management moving production or other parts of the company's value chain to countries where wages are lower is an example of ______ drivers.

cost

Which of the following is NOT a major driver of internationalization?

cultural drivers

A company's managers tend to be most familiar with the forces in the _______.

domestic environment

Objectives are typically more quantifiable as they progress (down, up) through the organization.

down

Free trade enhances ______ development.

economic

The tendency toward international integration and interdependency of goods, technology, information, labor, and capital is called ______.

economic globalization

Sociocultural

elements of culture important to international managers

Political

elements of nations' political climates such as nationalism, forms of government, and international organizations

Physical

elements of nature such as topography, climate, and natural resourced

Transnational Corporation

enterprise is made up of entities in more than one nation, operating under a decision making system that allows a common strategy and coherent policies

The balanced score card approach can help a firm monitor progress in achieving strategic objectives across all of the following dimensions EXCEPT _________.

external

The forces influencing the life and development of the firm are classified into which two categories?

external, internal (excluded: unilateral, multilateral)

True or false: In any type of business, long-range planning constitutes any plan over 5 years.

false

True or false: Strategic planning is the exclusive province of CEOs.

false

Which environment refers to all the uncontrollable forces originating outside the home country that surround and influence the firm?

foreign

What commonly used variable measures where and how fast internationalization is taking place?

foreign direct investment

What term refers to direct investments in equipment, structures, and organizations in a foreign country at a level sufficient to obtain significant management control?

foreign direct investment

If there are four organizational levels in a company, there will be _________ strategic plans.

four

A broad statement that defines the purpose of a company's existence, including its business, objectives, and approach for reaching those objectives is called the ___________ statement.

mission

Google's statement that it wants "to organize the world's information and make it universally accessible and useful" is the company's _______ statement.

mission

Compared to strategic plans, tactical plans are (more, less) detailed and specific.

more

Strategic planning is (more, less) specific as it moves down the organizational levels.

more

Distributive

national and international agencies available for distributing goods and services

Corporate objectives are typically easier to quantify at which level of a corporation?

operational

The broad guidelines issued by a company's upper management for the purpose of assisting lower-level managers handle recurring problems are called ___________.

policies

_________ help companies economize on managerial time and promote consistency among their operating units.

policies

Preferential trading arrangements such as NAFTA and the European Union are ______ drivers.

political

The trend toward the unification and socialization of the global community is considered a ______ driver.

political

Five major kinds of drivers

political, technological, market, cost, and competitive

A prediction of future sales performance is called a _________.

sales forecast

James told his manager that the sales figures for next quarter are predicted to increase by 4%, and they should show an overall increase of 7% for the year. James is providing his manager with a

sales forecast

Michell's company delivered the following statement at the shareholder meeting. "The company plans to (1) grow our leadership in the manufacturing sector, (2) grow profits both nationally and internationally, and (3) become a leader in the service sector." This statement reflects the firm's course of action. What aspect of the strategic planning process does this statement reflect?

setting corporate objectives

The process by which an organization determines where it is going in the future, how it will get there, and how it will assess whether and to what extent it has achieved its goals is called ___________.

strategic planning

Suppose a company has a goal of increasing sales by 20 percent. To achieve this goal, the company hires three new specialized sales reps and goes to four trade shows. The goal of increasing sales can best be described as a(n)_________ plan and the plans to hire new sales reps and attend trade shows are __________ plans.

strategic, tactical

Today, strategy consultants are urging companies to assign strategic planning to _________.

teams of line and staff managers

Cable and satellite TV systems in Europe and Asia that allow an advertiser to reach numerous countries is an example of a _______ driver.

technological

Global communications networks that enable manufacturing workers to coordinate production and design functions worldwide are an example of a(n) ______ driver.

technological

Technological

the technical skills and equipment that affect how resources are converted to products

Don's boss asked him to prepare a report that shows the activities in the warehouse from the moment raw steel enters the plant until the end product is shipped out to the customer. His boss wants to understand the activities that go into the product. In other words, Don's boss is seeking to understand _________.

the value chain

A drawback of _________ planning is that it restricts initiative at the lower levels of the organization.

top-down

Which type of planning begins at the highest level in the organization and continues downward?

top-down

A ______ corporation is an enterprise made up of entities in more than one nation, operating under a decision making system that allows a common strategy and coherent policies.

transnational

External forces are commonly called

uncontrollable forces which is external forces management has no direct control over, although it can exert influence

A set of interlinked activities that adds value to the final product or service is called the

value chain

Economic

variables (such as gross national income [GNI], unit labor cost, and personal consumption

Financial

variables such as interest rates, inflation rates, and taxation

What are the three areas of concern in the contemporary strategic management approach to planning? (Check all that apply.)

what the contents of the plan are how the planning is done who does the planning

Strategic planning answers all of the following questions EXCEPT __________.

why the firm has failed to achieve previous goals

foreign environment

All the uncontrollable forces originating outside the home country that surround and influence the firm

Shondra reports to the management team that Italy has decided to increase the tax on all manufactured textiles. As a result, the company will pay more for the fabrics it orders. Which step in the global strategic planning process will help Shondra learn this information?

Analyze external environments.

Which one of the following statements reflects how strategic planning is done today?

Effective strategic planning encourages ideas to surface anywhere in the organization and at any time.

International Environment

Interaction between domestic forces and foreign environmental forces, as well as interactions between the foreign environmental forces of two countries, such as when an affiliate in one country does business with customers in another, This agrees with our earlier definition of international business: business that involves the crossing of national borders.

Forces can be classified as

Internal or external

Which of the following statements are true regarding the international environment? (Check all that apply)

It consists of interactions between the foreign environmental forces of two countries. It consists of the interactions between the domestic environmental forces and the foreign environmental forces. (Excluded: It consists of interactions between two or more domestic environmental forces. It involves only those activities that take place within a nation's borders.)

Foreign business

The operations of a company outside its home or domestic market May refer to this as business conducted within a foreign country.

Economic Globalization

The tendency toward an international integration of goods, technology, information, labor and capital, or the process of making this integration happen

Which of the following are benefits of a globalized product line? (Check all that apply.)

reduced development costs reduced production costs reduced inventory costs

The two conflicting strategic alternatives facing international firms are _________.

reducing costs; adapting to local markets

Legal

the many foreign and domestic laws governing how international firms must operate