Ch 11 Quiz Questions

A ________ strategy is one in which a company emphasizes on serving the needs of a narrowly defined market segment by being the low-cost leader, differentiating its product, or both.

Support activities assist companies in performing their primary activities.

According to value-chain analysis, inbound and outbound logistics are considered as ________.

A business-level strategy in which a company exploits economies of scale is called a ________.

Core competencies are developed by organizations over long periods of time.

Which of the following strategies works best for an organization that practices mass production and mass-marketing?
a. differentiation strategy
b. focus strategy
c. low-cost leadership strategy
d. retrenchment strategy

A team of top managers from both headquarters and international subsidiaries who meet to develop solutions to company-wide problems is referred to as a ________ team.

________ is the process of identifying and selecting an organization’s objectives and deciding how the organization will achieve those objectives.

A(n) ________ structure separates domestic from international business activities by creating a separate global branch with its own manager.

The scope of a corporation’s operations refers to the size of its operations.

A low-cost leadership strategy typically requires a company to have a large market share.

An organizational structure that organizes a company’s entire global operations into countries or geographic regions is referred to as a(n) ________ structure.

The lines of authority in an organization that run from top management to individual employees and specify internal reporting relationships is called ________.

An organizational structure that splits the chain of command between product and area divisions is referred to as a(n) ________ structure.

A ________ strategy is one in which a company designs its products to be perceived by buyers as unique throughout its industry.

________ teams can help break down barriers between departments and reorganize operations around processes in an organization.

The closing of TeleToys’ Australian men’s clothing line can best be described as a(n) ________ strategy.

TeleToys recently opened eighteen new toy stores in Brazil. This move can best be described as a ________ strategy.

Decentralization can help foster participative management practices.

________ is the process of dividing a company’s activities into primary and support activities and identifying those that create value for customers.

Which of the following statements is true of objectives?

Beanstalk International is a rapidly growing company with well-established subsidiaries in several nations. The company wants to follow a strategy of adapting its products and marketing activities in each national market to suit local preferences. This strategy aims at creating value for its customers.

Which of the following is a primary activity that creates value for Beanstalk’s customers?

A main goal of the global product structure is to bring together geographic and product area managers in joint decision making.

A(n) ________ structure is best suited to companies that treat each national market as unique due to the vast cultural, political, or economic differences between nations.

Offering the same products using the same marketing strategy in all national markets of an organization is referred to as a ________ strategy.

Decreasing levels of customer loyalty to an organization’s products is a major disadvantage of the ________ strategy.

A negative aspect of a low-cost leadership strategy is low customer loyalty.

The lines of authority in an organization that run from top management to individual employees and specify internal reporting relationships is called ________.

The main drawback of a multinational strategy is that it does not allow a company to ________.

An international division structure reduces the authority of country managers in an organization’s subsidiaries.

A company that is closing factories with unused capacity and laying-off workers is most likely following a ________ strategy.

________ decision making occurs at a high organizational level in one location, such as an organization’s headquarters.

An international area structure separates domestic from international business activities by creating a separate international division with its own manager.

A ________ strategy typically increases the cost structure for international companies and forces them to charge higher prices to recover such costs.

Global products are most commonly seen in industries where there is ________.

A multinational strategy entails having a separate strategy for each nation in which a company markets its products.