MNGT 481 Exam 2 Study Stack

Whenever an organization diversifies, it represents investing a stockholder's funds in a way in which the individual investor is unable. True or false?

FALSE

a disadvantage of firms that successfully integrate overall cost leadership and differentiation strategies is that they are relatively easy for competitors to imitate. true or false?

FALSE

a multidomestic strategy is the most appropriate strategy for international operations because it drives economies of scale as far as possible and provides a middle of the road product appealing to the largest number of consumers in every market. t or f?

FALSE

a multidomestic strategy would likely include the use of high volume, centralized production facilities to maximize economies of scale. true or false?

FALSE

a newly acquired business must always have products that are similar to the existing businesses' products to benefit from the corporation's core competence. true or false?

FALSE

a publishing company that purchases a chain of bookstores to sell its books is an example of unrelated diversification. true or false?

FALSE

according to studies by Rugman and Verbeke, most of the world's 500 firms are global- not regional or biregional. true or false?

FALSE

businesses that compete in markets that are in decline should simply be harvested or divested since they are no longer profitable. true or false?

FALSE

concentrating solely on one form of competitive advantage generally leads to the highest possible level of profitability.

FALSE

during the growth stage of the market life cycle, customers are very likely to establish brand loyalty. true or false?

FALSE

focus by itself often constitutes a competitive advantage. true or false?

FALSE

for strategic alliances to be effective, reliance on written contracts to delimit responsibilities and enforce compliance is vital. true or false?

FALSE

given the attractiveness of premium pricing during the growth stage of the market life cycle, managers should emphasize short term results to increase profits. true or false?

FALSE

high levels of environmental awareness in Denmark have led to a decline in Denmark's industrial competitiveness in the international marketplace. true or false?

FALSE

typically joint ventures involve less control and risk than franchising. true or false?

FALSE

typically the best method of entry into a foreign market is the establishment of a wholly owned foreign subsidiary so that the parent organization can maintain a high level of control. true or false?

FALSE

typically, intense rivalry in domestic markets does not force firms to look outside their national boundaries for new markets. true or false?

FALSE

vertical integration should be undertaken when demand for the organization's products is very unstable. true or false?

FALSE

what is one of Theodore Levitt's assumptions supporting a pure global strategy?

MNCs can compete with aggressive pricing on low cost products that meet the common needs of global consumers

international expansion can extend the life cycle of a product that is in its maturity stage in a firm's home country. true or false?

TRUE

many firms facing a turnaround situation try to reduce their costs by outsourcing the production of many inputs. true or false?

TRUE

many international firms are increasing their efforts to market their products and services to countries such as India and China as the ranks of their middle class continue to increase. true or false?

TRUE

pressures to reduce costs require that

a company must pursue what is economically beneficial to the company including maximizing economies of scale and learning curve effects

the difference between a franchise and licensing contract is that

a franchise contract is more specific and longer in duration

an antitakeover tactic in which existing shareholders have the option to buy additional shares of stock at a discount to the current market price is called

a poison pill

Because of the internet, firms that use a focus strategy have new opportunities to:

access niche markets in a highly specialized fashion

the primary aim of strategic management at the business level is:

achieving competitive advantage.

McKesson, a large distribution company, sells many product lines such as pharmaceuticals and liquor through its super warehouses. This is an example of:

achieving economies of scope through related diversification

Individual investors are dependent upon the corporation's managers to:

add value to their investments in a way that the stockholders could not accomplish on their own

a narrow market focus is to differentiation based strategy as a

broadly defined market is to a cost leadership strategy

according to the text, corporate restructuring includes:

capital restructuring, asset restructuring, and management restructuring

Philip Morris bought Miller Brewing and used its marketing expertise to improve Miller's market share. This justification for diversification is best described as:

capitalizing on core competencies

a domestic corporation considering expanding into international markets for the first time will typically

consider implementing a low risk/low control strategy such as exporting

Recent trends that might lead to managers of multinational corporations to adopt a more decentralized strategy for their operations would include

consumers are the world are increasingly willing to trade off idiosyncratic preferences in product features for lower price, flexible mftg trends have allowed a decline in the min volume required to reach acceptable levels of production efficiency

reflects the collective learning in organizations such as how to coordinate production skills, integrate multiple streams of technologies, and market and merchandise diverse products and services

core competencies

portfolio management matrices are applied to what level of strategy?

corporate level

potential pitfall of cost leadership

cost cutting may lead to the loss of desirable features

The risks of vertical integration include:

costs and expenses associated with increased overhead and capital expenditures, problems associated with unbalanced capacities along the value chain, additional admin costs associated with managing a more complex set of activities

In this stage of the industry life cycle, there are few segments, the emphasis on product design is low, and the major functional areas of concern are general management and finance.

decline

The most likely time to pursue a harvest strategy is in a situation of:

decline in the market life cycle

high product differentiation is generally accompanied by:

decreased emphasis on competition based on price

Elements of a multidomestic strategy may facilitate the competitive advantage of cost leadership by

decreased shipping and transportation costs inherent in local production

Support value chain activities that involve excellent applications engineering support and facilities that promote a positive firm image characterize what generic strategy?

differentiation

Advantages that cannot be duplicated by other competitors are

difficult to achieve

the sale of boeing's commercial aircraft and microsoft's operating systems in many countries enable these companies to benefit from:

economies of scale

ways the Internet is lowering transaction costs

eliminating supply chain intermediaries, minimizing office expenses, reducing business travel

guidelines for managing strategic alliances

establishing a clear understanding between partners, not shortchanging your partner, working hard to ensure a collaborative relationship between partners

limitations of the BCG

every business cannot be accurately measured and compared on 2 dimensions, views each business as a stand alone entity and ignores the potential for synergies, can lead to some troublesome and overly prescriptions

Piecemeal productivity improvements during a turnaround typically does not involve

expansion of a firm's product market scope

The downsides or limitations of mergers and acquisitions include

expensive premiums that are frequently paid to acquire a business, difficulties in integrating the activities and resources of the acquired firm, many cultural issues that can doom an otherwise promising acquistion

The form of entry strategy into operations that offers the lowest level of control would be:

exporting

What describes the most typical order of entry into foreign markets?

exporting, licensing, franchising, joint venture, and wholly owned subsidiary

according to michael porter's framework all of these factors affect a nation's competitiveness

factor conditions, demand characteristics, related and supported industries

advantages of global diversification

firm not being solely dependent on domestic market, firm with large margins at home helping subsidize its operations in other nations, potential to lower costs of operation even if the primary market is at home

a firm following a focus strategy must

focus on a market segment or group of segments

The industry life cycle has important implications for a firm's

generic strategies, functional areas, value creating activities, and overall objectives

the reasons that explain why some governments make better use of the inflows from foreign investment and know how than others include:

governmental practices that are business friendly, local entrepreneurs that can train workers and invest in modern technology, sound management of broader economic factors such as interest rates and inflation

a major trend in international developments include:

greater international trade and operations, growing recognition of an international managerial perspective, a large increase in international investment

an antitakeover called _____ is when a firm offers to buy shares of their stock from a company planning to acquire their firm at a higher price than the unfriendly company paid for it

greenmail

antitakeover tactics include

greenmail, golden parachutes, poison pills

portfolio management frameworks share what characteristics?

grid dimensions are based on external environments and internal capabilities/market positions

During the decline stage of the industry life cycle, this refers to obtaining as much profit as possible and requires that costs be decreased quickly.

harvesting

research has consistently shown that firms that achieve both cost leadership and differentiation advantages tend to perform

higher than firms that achieve either a cost of differentiation advantage

The experience curve suggests that cutting prices is a good strategy:

if it can induce greater demand and thereby help a firm travel down the experience curve faster

A firm can achieve differentiation through all of the following means

improving brand image, better customer service, adding additional product features

Low pressure for local adaptation combined with low pressure for lower costs would suggest what type of strategy?

international

in this stage of the industry life cycle, the emphasis on product design is very high, the intensity of competition is low, and the market growth rate is low

introduction

Cooperative relationships such as this have the potential advantages such as entering new markets, reducing manufacturing costs in the value chain, and developing and diffusing new technologies

joint ventures and strategic alliances

_________ entails the creation of a third party legal entity; whereas _______ do not.

joint ventures, strategic alliances

limitations of a multidomestic strategy

less ability to realize cost savings through scale economies, greater difficulty in transferring knowledge across countries, may lead to overadpatation as conditions change

A differentiation strategy enables a business to address the five competitive forces by:

lessening the competitive rivalry by distinguishing itself

limitations of global strategy:

limited ability to adapt to local markets, concentration of activities may increase dependence on single facility, single locations may lead to higher tariffs and transportation costs

a cash cow referred to in the BCG, refers to a business that has

low market growth and relatively high market share

appreciation of the US dollar will have this impact on McDonalds

lower profits, because foreign profits will be reduced when measured in dollars

It may be advantageous to vertically integrate when:

lower transaction costs and improved coordination are vital and achievable through vertical integration

In the BCG matrix, the suggested strategy for stars is to:

maintain position and after the market growth slows use the business to provide cash flow

Dell Computer has an online ordering system that allows consumers to configure their own computers before Dell builds them. This capability is an example of:

mass customization

Method of implementing a differentiation strategy that has been greatly enhanced because of internet technologies

mass customization

A market that mainly competes on the basis of price and has stagnant growth is characteristic of what life cycle stage?

maturity

In a given market, key technology no longer has patent protection, experience is not an advantage, and there is a growing need to compete on price. What stage of its life cycle is the market in?

maturity

In this stage of the industry life cycle, there are many segments, competition is very intense, and the emphasis on process design is high

maturity

The size of pricing and differentiation advantages between competitors decreases in which stage of the market life cycle?

maturity

according to michael porter: there's a tremendous allure to ____. its the big play, the dramatic gesture. with one stroke of the pen you can add billions to size, get a front page store, and create excitement in markets.

mergers and acquisitions

the 3 primary means by which a firm can diversify are:

mergers and acquisitions, joint ventures and strategic alliances, internal development

according to michael porter, firms that have experienced intense domestic competition are:

more likely to design strategies and structures that allow them to successfully compete abroad.

High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy?

multidomestic

This occurs when a firm decides to utilize other firms to perform value-creating activities that were previously performed in house

outsourcing

convincing rivals not to enter a price war, protection from customer pressure to lower prices, and the ability to better withstand cost increases from suppliers characterize which type of competitive strategy?

overall cost leadership

the growth stage of the industry life cycle is characterized by

premium pricing

defined as the total profits in an industry at all points along the industry's value chain

profit pool

in order to realize the strongest competitive advantage, firms engaged in worldwide competition must

pursue a strategy that combines the uniformity of a global strategy and the specificity of a multidomestic strategy in order to achieve optimal results

in the BCG matrix, a business that has a low market share in an industry characterized by a higg market growth is termed a:

question mark

In managing a firm's portfolio, the BCG matrix would suggest that:

question marks can represent future stars if their market share increased

A manufacturing business pursuing cost leadership will likely:

rely on experience effects to raise efficiency

One aspect of using a cost leadership strategy is that experience effects may lead to lower costs. Experience effects are achieved by:

repeating a process until a task becomes easier.

when a firm tries to find and acquire either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change

restructuring

transaction costs include all of the following:

search costs, negotiating costs, monitoring costs

when management uses common production facilities or purchasing procedures to distribute different but related products, they are:

sharing activities

What is a disadvantage of a transnational strategy?

unique managerial challenges in fostering knowledge transfer

potential pitfalls of a differentiation strategy

uniqueness that is not valuable, too high a price premium, perceptions of differentiation may vary between buyers and sellers

Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input into its manufacturing process. This is an example of:

vertical integration

Corporate level strategy addresses two related issues:

what businesses to compete in; how these businesses can achieve synergy

This is most appropriate where a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries

wholly owned subsidiaries

a business in which a multinational company owns 100% of the stock

wholly owned subsidiary

with reverse positioning, a strategy to be used during the mature stage of the industry life cycle, a product escapes its category by deliberately associating with a different one. true or false?

FALSE

a firm that incorporates more processes toward the original source of raw materials is an example of forward integration. true or false?

FALSE

a franchise generally expires after a few years whereas a license is designed to last into perpetuity. true or false?

FALSE

among theordore levitt's assumptions that would favor a global strategy is that consumers around the world are becoming less price sensitive. true or false?

FALSE

an advantage of a firm entering into a strategic alliance is that it does not have to share the wealth with is partners. true or false?

FALSE

an advantage of international expansion is that competition within foreign countries is generally very similar to that of the US. true or false?

FALSE

an important idea behind the profit pool concept is that there is always a strong relationship between the generation of revenues and the capturing of profits. true or false?

FALSE

because many countries are investing in countries other than their own, each country is becoming more autonomous and independent. true or false?

FALSE

during the decline stage of the product life cycle,harvesting strat means that a firm keeps a product going without significantly reducing market support, technological development, or other investments, while hoping competitors exit the market. T or F?

FALSE

market power refers to cost savings from leveraging core competencies or sharing activities among the businesses in a corporation. true or false?

FALSE

market transactions do not involve transaction costs. true or false?

FALSE

portfolio management should be considered as the primary basis for formulating corporate level strategies. true or false?

FALSE

the decline stage of the industry life cycle is inevitably followed by death. true or false?

FALSE

the factor endowments of a country are inherited and cannot be created. true or false?

FALSE

the laws, and the enforcement of laws, associated with the protection of intellectual property rights, represent a significant currency and management risk to multinational firms. true or false?

FALSE

the market life cycle should be used as a short run forecasting device because it provides a conceptual framework for understanding what changes typically occur. true or false?

FALSE

the need to attain economies of scale encourages multinational firms to operate under a multidomestic strategy. true or false?

FALSE

the trend towards worldwide markets makes it easier to predict where competitors will spring up. true or false?

FALSE

through joint ventures, firms can directly acquire the assets and competencies of other firms. true or false?

FALSE

true or false? a successful differentation strategy increases rivalry since buyers become more price sensitive

FALSE

true or false? a successful differentation strategy lowers entry barriers because of customer loyalty and the firm's ability to provide uniqueness in its products and services

FALSE

true or false? if a firm has a successful differentiation strategy, it is not necessary to attain parity on cost.

FALSE

with regard to factor conditions the pool of resources that a firm has is much more important than the speed and efficiency with which these resources are deployed. true or false?

FALSE

all of these factors have made India's software services industry extremely competitive on a global scale

large pool of skilled workers, large network of public and private educational institutions, large, growing market and sophisticated customers

For a core competence to be a viable basis for the corporation strengthening a new business unit there are 3 requirements:

must help the business gain strength relative to its competition, new business must be similar to existing business to benefit, collection of competencies should be unique so that they cannot be easily imitated

One of the reasons the internet is eroding sustainable competitive advantages is:

nearly all competitors will have greater access to tools for managing costs making it hard for any one to achieve an advantage

primary value chain activities that involve the effective layout of receiving dock operations and support value chain activities that include expertise in process engineering characterize what generic strategy?

overall cost leadership

when a firm's corporate office helps subsidiaries make wise choices in their own acquisitions, divestures, and new ventures

parenting

the term golden parachute refers to

pay given to executives fired because of a takeover

optimizing the location of every activity in the value chain can yield all of these strategic advantages

performance enhancements, cost reduction, extending the life cycle of the product or service

According to studies by Rugman and Verbeke, approx how many of the world's largest 500 firms are global, that is, they have at least 20% of their total revenues each in North America, Asia, and Europe?

10

The internet has provided a small subset of companies with greater tools for managing costs. true or false?

FALSE

The internet offers few advantages for focusers because niche players and small companies cannot implement capabilities as effectively as their large competitors. true or false?

FALSE

The two principle means by which firms achieve synergy through market power are: pooled negotiating power and corporate parenting. true or false?

FALSE

True or false? A firm striving for cost leadership will typically spend relatively more on product related R&D than on process related R&D.

FALSE

True or false? Michael Porter's 3 generic strategies can be depicted on 2 dimensions: competitive advantage and product life cycle

FALSE

True or false? The experience curve concept suggests that production costs tend tend to decrease as production increases regardless of where an industry is at in its life cycle.

FALSE

True or false? To generate above average returns, a firm following an overall cost leadership position should not be concerned with attain attaining parity or proximity on the basis of differentation relative to its peers.

FALSE

When firms diversify into unrelated businesses, the primary potential benefits are horizontal relationships, i.e. businesses sharing tangible and intangible resources. true or false?

FALSE

2 opposing pressures that managers face when they compete in foreign markets are cost reduction and adaption to local markets. true or false?

TRUE

A potential pitfall of a focus strategy is that focusers can become too focused to satisfy buyer needs. true or false?

TRUE

An important advantage of first movers or pioneers in a market is that they may establish brand recognition that may later serve as an important switching cost. true or false?

TRUE

Diversification that results in strengthening the value chain and increasing competitive advantages is the best possible example of investing stockholders' funds in a way that individual investors cannot. true or false?

TRUE

In michael porter's "diamond of competitive advantage" there are 4 broad attributes that, as a system, constitute a nation's competitiveness in an industry. true or false?

TRUE

Incumbent firms that thought a niche market was too small to enter in the past may use internet technologies to enter that segment with focusers. true or false?

TRUE

Mass customization enables manufacturers to be more responsive to customer demands for high quality products. true or false?

TRUE

Most analysts agree that use of the Internet will lower transaction costs. true or false?

TRUE

One potential pitfall of a differentiation strategy is that a brand's identification in the marketplace may become diluted through excessive product line extensions.

TRUE

One way the internet and digital technologies are creating opportunities for firms with differentiation strategies is by enabling mass customization. true or false?

TRUE

within a worldwide market, the most effective strategies are neither purely multidomestic nor purely global. true or false?

TRUE

True or false? the example of Lexus automobiles in the text points out that a firm can strengthen its differentation strategy by achieving integration at multiple points along the value chain.

TRUE

With a focus strategy, creating niche by differentiating one's product or service often allows small firms to compete successfully with market leaders. True or false?

TRUE

a golden parachute is prearranged contract with managers specifying that in the event of a hostile takeover, the target firm's managers will be a paid a significant severance package. true or false?

TRUE

a key tenet of transnational strategy is improved adaptation to all competitive situations as well as flexibility by capitalizing on communication and knowledge flows throughout the organization. true or false

TRUE

a limitation of a multidomestic strategy is that it may lead to overadaptation as conditions change. true or false?

TRUE

according to the text, the 2 main sources of synergy is unrelated diversification are parenting and financial synergies via portfolio management. true or false?

TRUE

among the disadvantages of acquisitions are the expensive premiums that are frequently paid to acquire a business. true or false?

TRUE

an advantage of internal development is that firms do not have to combine activities across the value chains of many companies and merge company cultures. true or false?

TRUE

an advantage of international expansion is that it can enable a firm to optimize the location of every activity in its value chain. true or false?

TRUE

an advantage of mergers and acquisitions is that the can enable a firm to rapidly enter new product markets. true or false?

TRUE

an important potential pitfall of an integrated overall cost leadership and differentiation strategy is that firms may fail to implement either one and become stuck in the middle. true or false?

TRUE

as markets mature, competition on the basis of differentiation is preferable to price competition. true or false?

TRUE

as markets mature, the magnitude of differentiation and cost leadership advantages among competitors decrease. true or false?

TRUE

corporations with multiple foreign operations that act very independently of one another are following a multidomestic strategy. true or false?

TRUE

countries with a strong supplier base benefit by adding efficiency to upstream activities. true or false?

TRUE

demanding domestic consumers tend to push firms to move ahead of companies in other countries where consumers are less demanding and more complacent. true or false?

TRUE

differences in foreign markets such as culture, language, and customs can represent significant management risks when firms enter foreign markets. true or false?

TRUE

firms that compete on overall cost leadership are vulnerable if all rivals share a common input or raw material that contributes a significant amount to total costs.

TRUE

in a global strategy a firm operates all its businesses under a single common strategy regardless of location. true or false?

TRUE

in recent years, many high tech firms such as priceline.com have suffered from the negative impact of uncontrolled growth. true or false?

TRUE

industries in which proportionally more value is added in upstream activities are more likely to benefit from a global strategy than those in which more value is added downstream. true or false?

TRUE

multinational firms following a transnational strategy strive to optimize the tradeoffs associated with efficiency, local adaptation, and learning. true or false?

TRUE

offshoring takes place when a firm decides to shift an activity that they were previously performing in a domestic location to a foreign location. true or false?

TRUE

one of the risks of vertical integration is that they may be problems associated with unbalanced capacities or unfilled demands along a firm's value chain. true or false?

TRUE

portfolio management matrices generally costs of 2 axes that reflect industry or market growth and the market share of a business. true or false?

TRUE

restructuring requires the corporate office to find either poorly performing firms with unrealized potential or firms in industries on the threshold of significant, positive change. true or false?

TRUE

sharing activities across business units can provide two primary benefits: cost savings and revenue enhancements. true or false?

TRUE

sharing activities among business units can have a negative effect on a given business's differentiation. true or false?

TRUE

similar businesses working together or the affiliation of a business with a strong parent can strengthen a firm's bargaining position relative to suppliers and customers. true or false?

TRUE

the acquisition of 2 or more counter cyclical businesses is an example of using diversification to reduce risk. true or false?

TRUE

the potential advantages of strategic alliances and joint ventures include entering new markets as will as developing and diffusing new technologies. true or false?

TRUE

theodore levitt has argued that people around the world are willing to sacrifice preferences in product features, functions, and design if they are offered lower prices and high quality. true or false?

TRUE

vertical integration is attractive when market transaction costs are higher than internal admin costs. true or false?

TRUE

Research shows that these are all strategies used by firms engaged in successful turnarounds

asset and cost surgery, selective product and market pruning, piecemeal productivity improvements

The corporate office of Cooper Industries adds value to its acquired businesses by performing such activities as auditing their manufacturing operations, improving their accounting activities, and centralizing union negotiations. This is an example of:

attaining the benefits of parenting through unrelated diversification.

The text discusses 3 approaches to combining overall cost leadership and differentiation competitive advantages. These are:

automated and flexible manufacturing systems, exploiting the profit pool concept for competitive advantage, coordinating the extended value chain by way of information and technology

divesting business can accomplish many different objectives. this includes:

enabling managers to focus their efforts to more directly on the firm's core businesses, providing the firm with more resources to spend on more attractive alternatives, raising cash to help fund existing businesses

potential pitfalls of a focus strategy

erosion of cost advantages within the narrow segment, even product and service offerings that are highly focused are subject to competition from new entrants and from imitation, focusers can become too focused to satisfy buyer needs

risks associated with global strategy

firm with only one mfg location must export its product, geographic concentration of any activity may also tend to isolate that activity from the target market, concentrating an activity in a single location makes the firm dependent on that location

What types of international firms are most likely to benefit from a global strategy as opposed to a multidomestic strategy?

firms in industries that have much value added in research and design or manufacturing

potential pitfalls of an integrated overall low cost and differentiation strategy

firms that fail to attain both may end up with neither and become stuck in the middle, underestimating the challenges and expenses associated with coordinating value creating activities, miscalculating the sources of revenue and profit pools in the firm

Fees that a multinational receives from a foreign licensee in return for its use of intellectual property are usually called

royalties

Firms following a global strategy strive to offer ______ products and services as well as locate manufacturing, R&D, and marketing activities in ______ locations.

standardized, few

when using a BCG matrix, a business that currently holds a large market share in a rapidly growing market and that has minimal or negative cash flow would be known as:

star

a company offering local telecommunications service combines resources with an international company that manufactures digital switching equipment to research a new type of telecommunications technology. This is an example of:

strategic alliance

rivalry is intense in nations with conditions of ____ consumer demand, _____ supplier bases, and _____ new entrant potential from related industries

strong, strong, high

Gillete's worldwide success with its Sensor razor demonstrates

that a global marketing effort can sometimes be successful

as in the case of Siebel systems, elements of a global strategy may facilitate the competitive advantage of differentiation by

the creation of a world wide network to achieve consistent service regardless of location.

a firm should consider vertical integration when:

the firm's suppliers of raw materials are often unable to maintain quality standards

Sharing core competencies is one of the primary potential advantages of diversification. in order for diversification to be most successful, it is important that:

the similarity required for sharing core competencies must be in the value chain, not in the product.

As markets mature,

there is increasing emphasis on efficiency

Microsoft decided to establish a corporate research laboratory in Cambridge, England

to access the outstanding technical and professional talent available there so that they can attain world class excellence in selected value creating activities

Many US multinational companies set up maquiladora operations south of the US-Mexico border primarily

to take advantage of the low cost of labor

vertical integration is attractive when:

transaction costs are higher than internal admin costs

high pressure for local adaptation combined with high pressure for lower costs would suggest what type of international strategy?

transnational

Units coordinate their activities with headquarters and one another, units adapt to special circumstances only the face, and the entire org draws upon relevant corporate resources. These are attributes of:

transnational strategy

Software Tech Inc. a company in the computer software industry, invests heavily in R&D and product design. Thus, most of its value is added

upstream

Industries in which proportionally more value is added in _____ activities are more likely to benefit from a ______ strategy.

upstream, global

Unbalanced capacities that limit cost savings, difficulties in combining specializations, and reduced flexibility are disadvantages associated with:

vertical integration