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34 Cards in this Set
- Front
- Back
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Because buyer tastes are a particular product or service sometimes differ substantially from country to country, |
company managers must resolve the tension between the market pressures to localize the firm's product offerings country-to-country to match the tastes and preferences of local buyers and the competitive pressure to lower costs by offering mostly standardized products in countries where a company competes |
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A "think global, act global" approach to strategy-making is preferable to a "think local, act local" approach when |
country-to-country differences are small enough to be accommodated with the framework of a mostly uniform global strategy |
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Which of the following is NOT a reason why a company decides to enter foreign markets? |
to build the profit sanctuaries necessary to wage guerrilla offensives against global challengers endeavoring to invade its home market |
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Using an internal startup strategy to enter the market of a new foreign country |
make sense when a company operates in a number of countries, has experience in getting new subsidiaries up and running, and has a sufficiently large pool of resources to rapidly equip a new subsidiary with the personnel and capabilities it needs to compete successfully and profitably |
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In which one of the following circumstances a new foreign country market via internal startup of a new subsidiary unlikely to be as attractive as acquiring a local business? |
When acquiring a local business may be the quickest, least risky, and most cost-efficient means of hurdling entry barriers |
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A U.S. company that makes all of its goods at a plant in Brazil and then exports the Brazilian-made goods to those European markets where the currency is euros |
is competitively advantaged when the Brazilian real declines in value against the euro |
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A company that has competitively powerful resources and capabilities can enhance its competitiveness internationally and perhaps build competitive advantage by |
Transferring a portion of these resources and capabilities from its operations in one country to its operations in other countries because the cost of sharing or transferring already developed resources and capabilities across country borders is low in comparison to the time and considerable expense it takes for a country subsidiary to build matching capabilities on its own. |
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According to figure 7.2, which one of the following does not accurately characterized the differences between a localized multicountry strategy and a global strategy? |
A localized multicountry strategy involves competing on the basis of the same competencies and resources capabilities in each country market where it operates whereas a global strategy entails rapid cross-country transfers of new ideas, products, and capabilities |
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Which of the following is NOT one of the primary strategy options for competing in the markets of foreign countries? |
a profit sanctuary strategy |
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Competing in one or more countries or regions of the world causes strategy-making to be more complex because of |
differing governmental policies and regulations that make the business climate more favorable in some countries than others |
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Which of the following qualifies as an offensive strategy for companies competing internationally or globally? |
Dumping goods at cut-rate prices in the markets of rivals |
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A firm can seek to gain competitive advantage or counteract disadvantages in foreign country markets by |
locating certain facilities and value chain activities in particular countries in order to lower costs or achieve greater products differentiation |
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Global competition exists when |
competitive conditions across national markets are linked strongly enough to form a true international or world market and when leading competitors compete head to head in many different countries |
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which of the following is among the important strategic issues associated with competing across national boundaries? |
Whether to customize the company's offerings in each different country market to match the tastes and preferences of local buyers or to offer a mostly standardized product worldwide |
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Which of the following is the BEST examples of unrelated diversification? |
a digital camera manufacturer acquiring a maker of athletic footwear |
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Diversifying into related businesses where competitively valuable strategic fit benefits can captured |
puts sisters businesses in position to perform netter financially as part of the same company than they could have performed as independent enterprises, thus providing a clear avenue for boosting shareholder value |
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Which of the following is NOT part of the procedure for evaluating the pluses and minuses of a diversified company's strategy and deciding what actions to take to improve the company's performance? |
conducting a SWOT analysis of each business the company has diversified into |
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Which one of the following is the best guideline for deciding what the priorities should be for allocating resources to the various businesses of a diversified company? |
Business subsidiaries with the brightest profit and growth prospects, appealing positions in that 9-cell attractiveness-strength matrix, and solid strategic and resource fits should receive top priority for allocation of corporate resources |
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For there to be a reasonable of producing added long-term shareholder value, a move to diversify into a new business must pass which of the following tests? |
The better-off test, the cost of entry test, and the industry attractiveness test. |
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Which of the following is NOT one of the appeals of related diversification? |
it is particularly well-suited for minimized business risk and capturing valuable industry attractiveness fits |
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Calculating quantitative competitive strength ratings for each of a diversified company's business units involves |
selecting a set of competitive strength measures, weighting the importance of each measure, rating each business on each strength measure, multiplying the strength ratings by the assigned weight to obtain a weighted rating, summing the weighted ratings for each business unit to obtain an overall competitive strength score, and using the overall competitive strength scores to evaluate the competitive strength of the business units, both individually and as a group |
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Which on of the following is NOT something that corporate executives must do to succeed in using a strategy of unrelated diversification to produce companywide financial results above and beyond what the businesses could generate operating as stand-alone entities? |
be shrewd in identifying opportunities to acquire businesses that possess exceptionally good resource fits and/or that can significantly boost sales and market share by incorporating use of the parent company's technological expertise |
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based on the information presented in figure 8.1, which of the following would NOT be something to look for in identifying a diversified company's strategy? |
the competitive strategy each business is employing to try to build a competitive advantage over rivals |
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Which one of the following is NOT among the strategic options for improving a diversified company's overall performance? |
Implementing common competitive strategy for all of the company's business units and striving for the same competitive advantage companywide |
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The top-level executive task of crafting a diversified company's overall or corporate strategy does not include which one of the following? |
Choosing the appropriate value chain for each business the company has entered |
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Calculating quantitative attractiveness ratings for the industries a company has diversified into involves |
selecting a set industry attractiveness measures, weighting the importance of each measure, rating each industry on each attractiveness measure, multiplying the industry ratings by the assigned weight to obtain a weight rating, adding the weighted ratings for each industry to obtain an overall industry attractiveness score, and using the overall industry attractiveness scores to evaluate the attractiveness of all the industries, both individually and as a group. |
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Economies of scope |
are cost reductions that flow from operating in multiple businesses |
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Which of the following are negative or disadvantages of pursuing unrelated diversification strategies? |
Demanding managerial requirements |
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Retrenching to a narrower diversification base |
has the advantage of enabling a company to strive for better long-term performance by concentrating on building strong positions in a small number of core businesses and industries and avoiding the mistake of diversifying so broadly that resources and management attention are stretched thinly across many businesses |
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A strategy of diversifying into unrelated businesses |
involves entering any industry and operating any business where senior managers see opportunity to realize consistently good financial results--there's no deliberate effort to diversify only into businesses with valuable cross-business strategic fits |
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diversification becomes a prime strategic option in all, but which one of the following situations? |
when a company has more resources deficiencies than resource strengths in its principal business |
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The difference between a "cash-cow" business and a "cash hog" business is that |
a cash cow business produces large internal cash flows over above what is needed to build and maintain the business whereas the internal cash flows of a cash hog business are too small to fully fund its operating needs and capital requirements |
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The essential requirement for different businesses to qualify as being "related" is that |
their value chains possess competitively valuable cross-business relationships that present opportunities for the different businesses to perform better under the same corporate umbrella than they could by operating as stand-alone entities |
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a diversified company's business units exhibits good resource fit when |
a company has the resources to adequately support the requirements of its entire group of businesses without spreading itself too thin and when individual businesses add to a company's overall resources strengths |
