Ch 12
From a resource-based standpoint, a fundamental basis for competitive advantage is innovation-based firm homogeneity.
Decentralized R&D work performed by different teams around the world
TrinkCan Inc., a soft drink company in Wales, establishes new branches in England, Australia, and the United States. To minimize its costs, the company uses similar packaging, distribution, and promotion across all the countries. According to the integration-responsiveness framework, which of the following strategies is used by TrinkCan?
Global standardization strategy
Which of the folloiwng is a leading problem with the international division organizational structure?
It does not give sufficient voice to foreign subsidary managers relative to the heads of domestic divisions
Which of the following statements is true of a geographic area structure?
It encourages the fragmentation of the multinational enterprises into fiefdoms
Which of the following is true of a global product division structure?
It is highly responsive to cost reduction pressures
in the context of knowledge management, which of the following is true of multinational enterprises (MNEs) adopting a home replication strategy?
Knowledge is developed at the center and transfered to subsidiaries
What did Theodore Levitt argue in his 1983 article "The Globalization of Markets"?
Worldwide consumer tastes are converging
which of the following is an effect of adopting a local responsiveness strategy
cost of products and services are increased
the two sets of pressure that multinational enterprises (MNEs) confront are
cost reduction and local responsiveness
The business leader of a specific country (or geopraohic region) is known as a
country manager
Companies following a localization strategy differ from companies following a home replication strategy in that the companies following a localization strategy:
develop and retain knowledge within each subsidiary
In the context of strategizing, structuring, and learning around the world, an implication for savvy managers will be to:
develop learning and innovative capabilities to leverage multinational presence as an asset
Widget Corp., a manufacturing firm in Lithuania, exports its manufactured tools to Wales. To protect its domestic firms, the Government of Wales imposes a 20 percent tax on the tools imported from Widget Corp. Therefore, Widget Corp. is subject to:
formal institutional frameworks erected by the host-country government
is an organizational structure often used to alleviate the disadvantages associated with both geographic area and global product division structures, particularly when adopting a transnational strategy
global matrix
Multinational enterprises appoint home-country nationals as the head of a foreign subsidiary because he home-country nationals
have an understanding of the informal workings of multinational enterprises
Burger Mart, a fast food franchise in the U.S. is famous for its unique recipes that are a combination of a variety of spices. Their products are very popular in the U.S. They open a new outlet in Germany. They do not change their menu or their recipes as their menu and products are already popular in the U.S. Based on the integration-responsiveness framework, the strategy used by Burger Mart is a(n) _____.
home replication strategy
Frolik Foods Inc., a fast food franchise in the United States, opens a new outlet in Germany. The franchise develops recipes in the U.S. and then transfers them to its outlets in Germany. Which of the following strategies is being used by Frolik Foods?
home replication strategy
In the context of organizational cultures, which of the following is true of a wolf culture
it centers on relentless pursuit with highly motivated employees working overtime
which of the following is true of localization strategy
it is effective when pressures for cost reductions are low
which of the folloiwng is an advantage of adopting home replication strategy
it is relatively easy to implement
Which of the foloiwng is a disadvantage of adopting home replication strategy
it often lacks local responsiveness
Which of the following is a disadvantage of a global product division structure
it results in the suffering of loca responsiveness
Which of the following is a disadvantage of adopting a global standardization strategy
it sacrifices local responsiveness
In the context of knowledge mgmt, which of the following is true of MNEs adopting a localization strategy
knowledge is developed and retained within each subsidiary
In the context of knowledge mgmt, which of the following is true of MNEs adopting a transnational strategy
knowledge is developed jointly and shared woldwide
In the context of knowledge mgmt, which of the following is true of MNEs adopting a standardization strategy
knowledge is mostly developed and retained at the center and key locations
___ can be defined as the structures, processes, and systems that actively develop, leverage, and transfer knowledge.
knowledge mgmt
means reacting to different consumer preferences and host-country demands
local responsiveness
Asset Sports, a sports equipment manufacturing company based in India, specializes in cricket equipment. It establishes a new manufacturing plant in Brazil that specializes in soccer equipment. Based on the integration-responsiveness framework, the strategy adopted by Asset Sports is called a(n) _____.
localization strategy
The global matrix structure supports the goal of the transnational strategy, but in practice it is often difficult to deliver because:
managers have to deal with two bosses who are often in conflict
The proactive and deliberate pursuit of new opportunities by a subsidiary to expand its scope of responsibility is known as _____.
subsidiary initiative
Unlike a transnational strategy, a global standardization strategy involves:
the development and retention of knowledge at the center and key locations
Altonland Inc. a pharmaceutical company based in the United states, generally appoints a US national as the head of its foreign subsidiaries fr the first few years after a subsidiary is established
the informal rules of the game
which of the following is true of the business leader of a specific country (or geographic region)
they carry a great deal of weight in their geographic area
Multinational enterprises that engage in a __ strategy promote global learning and diffusion of innovations in multiple ways
transnational
