Management 301 Ch. 8

Which of the following statements is true of strategic management? All levels of management are imperative to the strategic implementation process. As companies go international, the need for strategic management decreases. Formulating an organization's vision statement is the core motive of strategic management. Middle management is responsible for setting the strategy in most organizations.

All levels of management are imperative to the strategic implementation process

________ are firms that engage in significant international activity shortly after being established. Sole proprietorships Matrix organizations Born globals Greenfield ventures

Born globals

Which of the following findings regarding the base of the pyramid (BOP) strategy has significant implications for the globalization-national responsiveness framework? Business models forged successfully at the base of the pyramid have the potential to travel profitably to higher-income markets. The BOP strategy brings focus to those who are too poor to be viable customers for multinational companies. Building relationships directly and at the local level contributes to the reputation and fosters the trust necessary to overcome the lack of formal institutions such as the rule of law. The BOP may be an ideal environment for incubating new, leapfrog technologies.

Business models forged successfully at the base of the pyramid have the potential to travel profitably to higher-income markets

For products like computers, Japanese firms: move from their home market directly into developing nations and then on to developed countries. move from their home market directly into fully developed countries and then on to newly developing nations. go only to developed countries to market products. go only to developing countries to market products.

move from their home market directly into fully developed countries and then on to newly developing nations

If a firm operates production plants in different countries but makes no attempt to integrate its overall operations, the company is known as a(n) ________ firm. multi-domestic global transnational international

multi-domestic

Once strategic goals are set, a multinational corporation will develop specific ________ goals and controls, usually through a two-way process at the subsidiary or affiliate level. contingency operational tactical bureaucratic

operational

Multinational corporations using the ________ approach to strategic planning are country-responsive; their approach is designed to protect local market niches. economic imperative administrative coordination political imperative quality imperative

political imperative

The ________ approach to strategic planning is used by multinational corporations that need a country-centered or multi-domestic strategy. political imperative quality imperative administrative coordination economic imperative

political imperative

The implementation of a marketing strategy in international areas is built around the well-known "four Ps" of marketing. These are: promotion, price, production method, and productive life. place of origin, price, productive life, and product. place of origin, production method, price, and people. product, price, promotion, and place.

product, price, promotion, and place

The approach to strategic formulation and implementation utilizing strategies of total quality management to meet or exceed customers' expectations and continuously improve products and/or services is referred to as the: political imperative. value-added imperative. quality imperative. economic imperative.

quality imperative

When focusing on the ________ approach to strategic planning, companies typically sell products for which a large portion of value is added in the upstream activities of the industry's value chain. quality imperative economic imperative administrative coordination political imperative

quality imperative

Total quality management techniques range from traditional inspection and statistical quality control to cutting-edge human resource management techniques, such as: market share and profitability. imports and exports. customer service and quality control. self-managing teams and empowerment.

self-managing teams and empowerment

In choosing a location, a primary consideration for a multinational corporation investing in a foreign country would be a decision based on: business ethics. operating norms. specific locale. corporate culture.

specific locale

The process of determining an organization's basic mission and long-term objectives and then implementing a plan of action for attaining these objectives is called: tactical management. strategic management. functional management. contingency management.

strategic management

The process of providing goods and services in accord with a plan of action is called: strategy contingency. strategy formulation. strategy implementation. strategy control.

strategy implementation

Honda and General Motors have both built plants in Thailand to take advantage of: tax incentives and demand. strategic pricing. demand and low delivery costs. new technologies and low wages.

tax incentives and demand

A multinational corporation's choice of a specific locale is affected by all of the following factors except: proximity to competitors. desirability of the location for employees coming in from the outside. the structure of the organization. the nature of the workforce.

the structure of the organization

Firms that internationalize after being domestically established have to overcome all of the following barriers except: their anti-risk seeking behavior. their internal domestic political ties. their domestic orientation. their domestic decision-making inertia.

their anti-risk seeking behavior

The quality strategy is formulated at the ________ management level and is diffused throughout the ________. lowest; organization top; middle-level management middle; low-level management top; organization

top; organization

All of the following act as disincentives for multinational corporations except: export maximums for generating foreign currency. restrictions on profit repatriation. controls on the transfer of technology. limits on local market growth.

export maximums for generating foreign currency

The production and distribution of products and services of a homogeneous type and quality on a worldwide basis is called ________. horizontal specialization global integration administrative coordination market standardization

global integration

Which of the following is likely to be the most effective strategic approach for the "base of the pyramid"? Large-scale strategies Incremental adaptation of existing technologies and products Leapfrog technologies, including disruptive technologies Establishing partnerships with central governments of emerging economies

leapfrog technologies, including disruptive technologies

The significant economies associated with early-entry positioning include all of the following except: making technological advancements. capturing learning effects important for increasing market share. developing alliances with the most attractive local partner. achieving scale economies.

making technological advancements

A key success factor is a factor that is necessary for a firm to compete effectively in a(n): international market. broad market domain. market niche. highly restricted market.

market niche

To respond to risks in emerging markets, multinational corporations must do all of the following except: engaging in shared ownership structures. limiting equity investments. avoiding joint ventures. collaborating with a local partner.

engaging in shared ownership structures

________ attempts to provide management with accurate forecasts of trends that relate to external changes in geographic areas where the firm is currently doing business or considering setting up operations. Functional scanning Operational scanning Tactical scanning Environmental scanning

Environmental scanning

________ is central to discovering if a multinational corporation can survive in a particular region. Horizontal integration Administrative coordination Internal resource analysis Environmental scanning

Environmental scanning

Which of the following strategies is appropriate when the need for national responsiveness is low and the need for global integration is high? Multi-domestic strategy Transnational strategy Global strategy International strategy

Global strategy

In the context of strategy formulation, which of the following identifies the key factors for success that will dictate how well the firm is likely to do? Regression analysis Power analysis Competitive analysis Internal analysis

Internal analysis

________ is the strategic planning process that helps a firm evaluate its current managerial, technical, material and financial strengths and weaknesses. Corporate governance Environmental scanning Internal resource analysis Administrative coordination

Internal resource analysis

When the need for national responsiveness is low and the need for global integration is also low, which of the following strategies would be appropriate? Globalization strategy Multi-domestic strategy International strategy Transnational strategy

International strategy

Which of the following statements about the Internet business is false? It provides a more diverse customer base than building-based businesses. It experiences more problems than "bricks and mortar" business during times of financial crises. It has removed certain entry barriers that have historically restricted quick market entry. It provides one of the easiest and most efficient methods of becoming global quickly.

It experiences more problems than brick and mortar business during times of financial crises

Which of the following statements is true of the technological learning gained from varied international environments? It is enhanced by efforts to integrate knowledge throughout a firm. It results in a deterioration of growth and return on equity. It leads to minimal diversity of national environments. It has no effect on cross-functional teams.

It is enhanced by efforts to integrate knowledge throughout a firm

Who among the following are the key to stimulating profit growth within a company? Top managers Middle managers Sales personnel First-line managers

Middle managers

When using the ________ approach to strategic planning, the products sold by multinational corporations often have a large portion of their value added in the downstream activities of the value chain. quality imperative economic imperative administrative coordination political imperative

Political imperative

Which of the following groups make up the "base of the pyramid" in international management? Emerging middle-class markets and other wealthiest consumers Front-line employees at the bottom of an organizational hierarchy Young people at the bottom of the population pyramid Potential low-income customers at the bottom of the economic pyramid

Potential low-income customers at the bottom of the economic period

Which of the following is not a feature of born-global firms? They indulge in significant international activity shortly after being established. They employ strategies like unique-products development. They succeed depending on how developed the areas are that the companies are moving into. They export products to close markets.

They export products to close markets

Why do multinational corporations often invest in advanced industrialized countries? The control of operations is in the hands of local partners in these countries. They offer the largest markets for goods and services. The cost of doing business in these countries is significantly less. They do not have any legal restrictions related to imports.

They offer the largest markets for goods and services

Which of the following is not one of the steps in strategic planning? Formulating goals in light of the external scanning and internal analysis Conducting an internal resource analysis of company strengths and weaknesses Scanning the external environment for opportunities and threats Transferring the successful process used in a developed country to an emerging economy

Transferring the successful process used in a developed country to an emerging economy

When the need for national responsiveness is high and the need for global integration is also high, the most appropriate strategy is a(n) ________ strategy. international global transnational multi-domestic

Transnational

A(n) ________ approach to strategy formulation and implementation is one in which a multinational corporation makes strategic decisions based on the merits of the individual situation rather than using a predetermined economic or political strategy. bureaucratic coordination value-added administrative coordination functional

administrative coordination

All of the following are challenges firms could face in the implementation of the base of the pyramid (BOP) strategy except: offering affordable goods. nonexistent distribution channels. generating awareness regarding a product. coordinating administrative functions.

coordinating administrative functions

Which of the following is not one of the factors that made international management activities of entrepreneurial and new-venture firms possible? Advances in telecommunication Customized, old access channels Advances in Internet technologies Greater efficiencies and lower costs in shipping

customized, old access channels

International management must consider three general areas in strategy implementation. First, the multinational corporation must: decide where to locate operations. develop alliances with the most attractive local partner. implement functional strategies in areas such as marketing. carry out entry and ownership strategies.

decide where to locate operations

If a company is going to export goods to a foreign market, the production process traditionally has been handled through: fourth-party operations. third-party operations. domestic operations. home-country operations.

domestic operations

A worldwide strategy based on cost leadership, differentiation, and segmentation is referred to as the ________ strategy. political imperative economic imperative administrative coordination quality imperative

economic imperative

A(n) ________ strategy is most likely to be used when a product is regarded as a generic good and therefore does not have to be sold based on name brand or support service. political imperative administrative coordination quality imperative economic imperative

economic imperative

Many large multinational corporations work to combine the ________ approaches to strategic planning. economic, political, quality, and administrative global, environmental, economic, and quality economic, environmental, political, and administrative political, administrative, regional, and environmental

economic, political, quality and administrative