MANA 4322 CH 7 & 8
A. greater international trade and operations.
B. a growing recognition of an international managerial perspective.
C. a large increase in international investment.
D. all of these.
foreign investment and know-how than others include all of the following EXCEPT
A. governmental practices that are business-friendly.
B. local entrepreneurs that can train workers and invest in modern technology.
C. high tariffs and taxes on foreign investors and multinational corporations provide income
to improve living conditions.
D. sound management of broader economic factors such as interest rates and inflation.
A. factor conditions.
B. demand characteristics.
C. related and supported industries.
D. policies that protect the nation's domestic competitors.
STRONG supplier bases, and HIGH new entrant potential from related industries.
A. weak; weak; high
B. strong; strong; low
C. strong; strong; high
D. weak; weak; low
A. unlikely to have the time or resources to compete abroad.
B. most likely to design strategies aimed primarily at the domestic market.
C. more likely to design strategies and structures that allow them to successfully compete
D. more likely to demand protection from their governments.
competitive on a global scale EXCEPT
A. large pool of skilled workers.
B. large network of public and private educational institutions.
C. tax and antitrust legislation that protect the dominant players in the industry.
D. large, growing market and sophisticated customers.
A. fewer social and political risks than domestic operations.
B. a firm not being solely dependent on the domestic market.
C. a firm with large margins at home helping subsidize its operations in other nations.
D. the potential to lower costs of operation even if the primary market is at home.
following strategic advantages EXCEPT
A. performance enhancement.
B. cost reduction.
C. extending the life cycle of the product of service.
D. risk reduction.
A. because England is an ally of the United States.
B. to access the outstanding technical and professional talent available there so that they can
attain world-class excellence in selected value-creating activities.
C. because the local language is English.
D. because the company views the United States as a risky place to expand due to the actions
of the U.S. Department of Justice.
countries enable these companies to benefit from
A. higher prices in their domestic markets.
B. economies of scale.
C. optimizing the location for many activities in their value chain.
D. reducing their exposure to currency risks.
U.S.-Mexico border primarily
A. to sell products into the growing Mexican market.
B. as part of US government-initiated measures to discourage illegal immigration.
C. to take advantage of the lower tax rates in Mexico.
D. to take advantage of the low cost of labor.
A. lower sales abroad because foreign customers cannot afford McDonalds' products.
B. more transfer of ingredients from the U.S. to branches abroad to take advantage of the
C. lower profits, because foreign profits will be reduced when measured in dollars.
D. no impact at all.
creating activities that were previously performed in-house.
B. A global strategy
D. A transnational strategy
pure global strategy?
A. Consumers are willing to pay more for specific product features.
B. Customer needs and interests are becoming more dissimilar.
C. If the world markets are treated as heterogeneous, substantial economies of scale are easily
D. MNCs can compete with aggressive pricing on low cost products that meet the common
needs of global consumers.
A. a company should not trade idiosyncratic preferences in product features for higher
B. a company must pursue what is economically beneficial to the company including
maximizing economies of scale and learning curve effects.
C. the manager should follow a multidomestic strategy to maximize the economic benefits to
D. the company needs to supplement the local foreign economy in a manner specified by the
would suggest what type of strategy?
would suggest what type of international strategy?
D. Overall cost leadership
R&D and product design. Thus, most of its value is added
B. in its infrastructure.
more likely to benefit from a __________ strategy.
A. downstream; global
B. upstream; multidomestic
C. upstream; global
D. manufacturing; multidomestic
global strategy as opposed to a multidomestic strategy?
A. Firms that compete in industries in which consumer preferences vary substantially in each
B. Firms in industries that are expanding very rapidly.
C. Firms in industries that have value added by sales and marketing departments.
D. Firms in industries that have much value added in research and design or manufacturing.
adopt a more decentralized strategy for their operations would include all of the following
A. customers' needs, interests, and tastes are becoming increasingly homogenized or similar.
B. consumers around the world are increasingly willing to tradeoff idiosyncratic preferences
in product features for lower price.
C. flexible manufacturing trends have allowed a decline in the minimum volume required to
reach acceptable levels of production efficiency.
D. fluctuating exchange rates.
as well as locate manufacturing, R&D, and marketing activities in __________ locations.
A. a wide variety of; several
B. a wide variety of; few
C. standardized; several
D. standardized; few
A. the importance of merging global and multidomestic strategies.
B. the values of establishing joint ventures with several multinational corporations.
C. that a global marketing effort can sometimes be successful.
D. the usefulness of a multidomestic strategy.
may facilitate the competitive advantage of differentiation by
A. increased freedom of individual business units to adapt to local tastes.
B. the creation of a worldwide network to achieve consistent service regardless of location.
C. flexibility in applying R&D to meet country-specific needs.
D. tailoring products to meet country-specific needs.
A. a firm with only one manufacturing location must export its product—some of which may
be a great distance from the operation.
B. the geographic concentration of any activity may also tend to isolate that activity from the
C. concentrating an activity in a single location makes the rest of the firm dependent on that
D. the pressures for local adaptation may elevate the firm's cost structure.
A. limited ability to adapt to local markets.
B. the ability to locate activities in optimal locations.
C. the concentration of activities may increase dependence on a single facility.
D. single locations may lead to higher tariffs and transportation costs.
cost leadership by
A. flexibility in adjusting to local laws and customs.
B. decreased duplication of inventories which are often involved in having multiple plants
producing similar products.
C. decreased shipping and transportation costs inherent in local production.
D. economies of scale gained through centralized production of standardized products.
A. less ability to realize cost savings through scale economies.
B. greater difficulty in transferring knowledge across countries.
C. single locations may lead to higher tariffs and transportation costs.
D. may lead to "overadaptation" as conditions change.
would suggest what type of international strategy?
to special circumstances only they face, and the entire organization draws upon relevant
corporate resources. These are all attributes of which type of strategy?
A. Less ability to realize cost savings through scale economies.
B. Limited ability to adapt to local markets.
C. Unique managerial challenges in fostering knowledge transfer.
D. Single locations may lead to higher tariffs and transportation costs.
worldwide competition must
A. require that all of their various business units follow the same strategy regardless of
B. ensure that all business units follow a strategy strictly tailored to their respective locations.
C. pursue a strategy that combines the uniformity of a global strategy and the specificity of a
multidomestic strategy in order to achieve optimal results.
D. attempt to use the strategy that was most successful in their home country.
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?
A. franchising, licensing, exporting, joint venture, and wholly owned subsidiary
B. exporting, licensing, franchising, joint venture, and wholly owned subsidiary
C. licensing, exporting, franchising, joint venture, and wholly owned subsidiary
D. exporting, franchising, licensing, joint venture, and wholly owned subsidiary
first time will typically
A. start off by implementing a wholly owned foreign subsidiary so it can maintain standards
identical to those at home.
B. consider licensing or franchising its operations.
C. consider implementing a low risk/low control strategy such as exporting.
D. form a joint venture with a reputable foreign producer.
control would be
C. joint venture.
intellectual property (trademark, patent, trade secret, technology) are usually called
A. transfer prices.
D. intra-corporate inflows.
A. a franchise contract is more specific and usually longer in duration.
B. a franchise contract must include a foreign government.
C. a licensing contract covers more aspects of operations.
D. a franchise contract involves less control and less risk.
A. Licensing agreements; joint ventures
B. Joint ventures; strategic alliances
C. Strategic alliances; joint ventures
D. Franchising agreements; strategic alliances
A. joint venture
B. strategic alliance
C. wholly owned subsidiary
D. franchising operation
knowledge and capabilities that it can leverage rather easily through multiple locations in
A. Joint ventures
B. Strategic alliances
C. Licensing agreements
D. Wholly owned subsidiaries
from one of the fastest growing franchise businesses to a firm that saw a number of its
franchises close and declining sales in a matter of months. What was a major challenge iSold
It faced that led to these problems?
A. It did not have the financial resources to maintain the rapidly growing firm.
B. The company lacked knowledgeable executives in key positions.
C. Its concept was rapidly imitated by others.
D. It had weak operational systems and could not maintain control of the growing network of
ingredients are critical. What are they?
A. good ideas, a team of investors, and a business plan
B. a viable opportunity, available resources, and a qualified and motivated founding team
C. an opportunity, a marketing plan, and office space
D. management, marketing, and money
A. current or past work experiences
B. suggestions by family or friends
C. chance event
D. all of these
opportunities is known as
C. opportunity recognition.
activity. They are
A. Global Search and Recycling Profits.
B. Value Creation and Affordability.
C. Discovery and Evaluation.
D. none of these.
D. value creating
and deployed, it is said to be
A. value creating.
C. achievable – practical and physically possible
A. investments by family and friends
B. personal savings
C. private investors
D. all of these
that have already started to conduct business and generate sales?
A. bank financing
B. venture capital
C. public financing
D. all of these
A. bank financing.
B. public financing (e.g., SBA loans).
C. venture-capital financing.
D. personal savings and the contributions of family and friends.
C. cash cows.
D. rising stars.
A. entrepreneurs raise venture capital by selling shares of ownership in their business.
B. venture capital is a form of public equity financing.
C. venture capital is used to finance rapid growth or large capital expenditures.
D. venture capital groups can often provide helpful management advice.
A. Firms that obtain venture-capital funding receive an average of over $1 million each.
B. Total investment in start-up firms averages about $80,000 in the firm's first year.
C. Among the 100 fastest-growing new businesses identified by Entrepreneur magazine, 61
percent obtained start-up funding from personal savings.
D. Ninety percent of the companies financed with venture capital funds fail.
likely to be successful than ventures launched by
A. established corporations.
C. "lone wolf" entrepreneurs.
D. all of these.
A. social capital
B. financial resources
C. human resources
D. All of these contribute to the success of entrepreneurial firms.
through partnering to obtain resources and/or expand into new markets.
A. Strategic alliances
C. "Lone wolf" entrepreneurs
D. Research & development
A. government contracting.
B. underwriting loans.
C. investing venture capital.
D. training and counseling.
leadership mentioned by the text?
B. dedication and drive
C. commitment to excellence
D. clarifying job responsibilities
A. Because the entrepreneur has to envision realities that do not yet exist.
B. Because a vision statement must be part of the documentation used to obtain venture
C. Because organizations cannot function without a detailed and operational vision.
D. All of these
A. imitative new entry
B. adaptive new entry
C. proactive new entry
D. pioneering new entry
introducing the same basic product or service in another segment of the market is referred to
A. imitative new entry.
B. adaptive new entry.
C. proactive new entry.
D. pioneering new entry.
A. Pursue low cost and differentiation advantages simultaneously.
B. Make the competition irrelevant.
C. Highlight incremental improvements to capture market share.
D. Create new demand in uncharted territory.
strategy. Which of the following is a feature of the strategy it enacted?
A. It developed its own musical scores for its circus performances.
B. It discontinued traditional parts of the circus, such as animal acts.
C. It researched customers to learn what circus features are more in demand.
D. All of these.
resources is one of the ways entrepreneurs achieve success. This is an example of how
A. an imitative strategy.
B. a low-cost leader strategy.
C. a differentiation strategy.
D. a combination strategy.
following to achieve lower costs?
A. cost-saving technology such as the Internet
B. simple organizational structures
C. rapid decision making
D. all of these
most effective approaches for a new entrant.
C. overall low-cost
D. small business
firms to effectively pursue a strategy of differentiation EXCEPT
A. incumbent firms are constantly seeking opportunities to specialize in market niches.
B. differentiation strategies are often expensive to enact.
C. it may be difficult for a young firm to establish a strong brand identity.
D. implementing superior new technologies may be challenging for entrepreneurial firms.
the same customers in a marketplace is known as
A. competitive dynamics.
B. resource similarity.
C. threat of substitutes.
D. pioneering new entry.
A. to obtain first mover advantages
B. to improve market position
C. to capitalize on growing demand
D. to find new sources of raw materials
A. "In a highly competitive marketplace, firms must be paranoid about the multitude of
B. "You can afford to ignore rivals in small markets, but you can never ignore rivals in large
markets, such as online video companies like YouTube."
C. "There are tens and maybe hundreds of start-ups who think that they are going to eat
Netflix's lunch. The challenge for a management team is to figure out which are real threats
and which aren't."
D. "Netflix's position is so strong that I don't worry about new entrants."
make very similar products and have many buyers in common.
A. dynamic capabilities
B. market commonality
C. first mover advantages
D. equity funding
rivalry increase. One factor driving this is that the Wall Street Journal has moved from
financial news reporting to general national and global news reporting and finally, to adding
local New York news. The rivalry of these two news providers has increased due to
A. increased dynamic capabilities.
B. increased market commonality.
C. erosion of first mover advantages.
D. the choice of tactical over strategic actions.
A. How serious is the impact of the attack?
B. What is our competitive intent—do we want to blunt the attack or enhance our competitive
position with our response?
C. What resources do we have available for a response?
D. All of these.
A. Because they lack legitimacy in the marketplace, small firms tend to signal their
competitive actions long before they launch those actions.
B. Small firms typically have more resources available as they undertake competitive attacks
than do large firms.
C. Small firms are more nimble and can respond quickly to competitive attacks.
D. All of these.
and has decided to double its plant capacity over the next two years. What type of competitive
action does this represent?
A. A tactical action because the move is an attempt to fill a gap in service.
B. A strategic action because such a large plant expansion will require a major commitment of
C. A strategic action because the firm can easily reverse the action at any time, thus giving
Cirrus more strategic flexibility.
D. A guerilla offensive because it is fast and will surprise its rivals.
A. acquire with competitors to reduce competition.
B. expand into neglected markets.
C. change product packaging.
D. tie up raw materials sources.
competitive attack is to
A. acquire the competitor.
B. target the rival's markets.
C. expand into new geographical areas.
D. offer price discounts and rebates.
competitive attack EXCEPT
A. how dependent the competitor is on that industry or particular market segment.
B. the degree of market power and reputation of the company that initiated the attack.
C. the resources which are available for a firm to respond.
D. the stock market reaction to the initial competitive attack.
concentration of its business in a particular industry's market?
A. competitor's resources
B. market dependence
C. resource similarity
D. actor's reputation
share. One executive strongly disagrees with the price cut and states, "We are in the same
marketplace as our rivals, and we do not have any competitive advantages in our cost
structure. If we cut prices, our competitors will likely do the same. The end result is that we
will all make less money." These arguments are an example of
A. a strategy of forbearance.
B. a strategy of co-opetition.
C. a hardball strategy whereby competitive actions are not undertaken without a clear
D. a weakness strategy that leads a company into constant decline.
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