Question 1

GeonHouses, a leading manufacturer and supplier of crockery, charges three dollars for each soup bowl. The cost of manufacturing each soup bowl is one dollar. In this scenario, the difference between the price GeonHouses charges per soup bowl and the cost of making it is referred to as _____.

Accepted Answer

A)   abstract value
B)   modified value
C)   captured value
D)   differentiation valueE) B) and C)
F) B) and D)

Question 2

According to you, how should a company handle a situation in which it is facing pressure to be both locally responsive and globally integrated? Justify if adopting a transnational strategy would be the best option in this scenario.

Accepted Answer

Answers will vary. Many companies face p...

Question 3

LiveUp, a leading health drink manufacturer, has highly standardized both its health drink formula and its advertising themes across markets. The company has made its product known in a consistent manner across the world. In this scenario, LiveUp is following the process of _____.

Accepted Answer

A)   decentralized advertising
B)   global branding
C)   localized streaming
D)   centralized costingE) None of the above
F) B) and D)

Question 4

The marketing team at Katrane Systems meets Kiaan Ray, the company's marketing chief, to discuss the best international strategy that they can adopt to enhance their sales and increase their customer base. Although the marketing team is in favor of a multidomestic approach, Kiaan recommends following a meganational approach. Which of the following statements can Kiaan use to justify his viewpoint?

Accepted Answer

A)   The company can exploit the cost advantage of performing each stage in the value chain at the lowest cost for that activity.
B)   The company can promote knowledge flow throughout the organization, regardless of where the ideas originate.
C)   The company can offer the benefits of both global and local advantages.
D)   The company can allow its local subsidiaries to decide what products to develop and sell in their local markets.E) C) and D)
F) A) and B)

Question 5

In the context of choosing an international strategy, which of the following exemplifies a scenario where a company has adopted a meganational strategy?

Accepted Answer

A)   Ireocon, an electronic goods manufacturer, avoids adaptation so that it can spend significant resources on innovations for its design and research.
B)   iGail Tech, a software company, works toward being both locally responsive and globally integrated.
C)   HUbHUnt, a human resource consultant, responds to the differentiated needs of its customers in each of the countries it operates in.
D)   NoteSystems, an employee recruitment firm, adapts its policies to match the local employment customs.E) A) and C)
F) B) and C)

Question 6

Nykiara, a global brand based in the country of Jonabha, hires Rob, a regional management expert, when it decides to enter the Kykasian market. Rob helps Nykiara understand the local trends, emerging needs, and product usage patterns. Nykiara has been locally responsive in this scenario. Which of the following statements is true in this context?

Accepted Answer

A)   Nykiara will need to change its positioning strategies based on national differences in market structure.
B)   Nykiara will need to challenge the local regulations as it is a company that serves consumers globally.
C)   Nykiara can effortlessly leverage globally derived knowledge.
D)   Nykiara can easily lower costs through global economies of scale.E) C) and D)
F) A) and B)

Question 7

In the context of value chain analysis, discuss how the support roles of the value chain provide inputs or pathways that enable the primary roles to create value.

Accepted Answer

Answers will vary. The support roles of ...

Question 8

According to you, how can the problem of being too locally responsive be solved? Justify your answer.

Accepted Answer

Answers will vary. A company doesn't alw...

Question 9

Sustaining profitable growth through a differentiation approach requires that companies:

Accepted Answer

A)   create value by having the lowest cost of operation in the industry.
B)   continuously innovate in ways that are difficult for competitors to imitate.
C)   should reduce the features of a product to offer a more basic version of it.
D)   should reduce supplier costs drastically.E) A) and B)
F) B) and D)

Question 10

Protran Systems encourages its foreign subsidiaries to come up with and share innovative new ideas. Protran products that were originally developed for the local market were reintroduced into the global market. It allowed for the flow of information across borders regardless of where the ideas originated. Which of the following strategies is being followed by Protran Systems in this scenario?

Accepted Answer

A)   A transnational approach
B)   An interregional approach
C)   A multidomestic approach
D)   A meganational approachE) None of the above
F) C) and D)

Question 11

In the context of the value chain functions, which of the following functions ensures that a company has employees with the right mix of skills who are adequately trained, motivated, and compensated to perform their value creation tasks by following the organization's strategy and creating value?

Accepted Answer

A)   Research and development
B)   Human resources
C)   Information systems
D)   Customer serviceE) A) and D)
F) B) and D)

Question 12

When a company follows a multidomestic strategy, _____.

Accepted Answer

A)   integration occurs through the different subsidiaries coordinating and exchanging information to make more informed decisions
B)   it can exploit location economies
C)   it can pursue a cost-leadership strategy at the global level
D)   the human resource practices can be adapted to local employment customsE) B) and C)
F) B) and D)

Question 13

In the context of choosing an international strategy, which of the following is a similarity between a multidomestic strategy and a transnational strategy?

Accepted Answer

A)   Like the multidomestic strategy, the transnational strategy allows subsidiaries the discretion and autonomy to adapt and customize locally.
B)   Like the multidomestic strategy, the transnational strategy achieves integration through decisions made mostly by its headquarters.
C)   Like coordination in the multidomestic strategy, coordination in the transnational strategy follows a top-down approach.
D)   Like coordination in the multidomestic strategy, coordination in the transnational strategy follows a bottom-up approach.E) None of the above
F) B) and C)

Question 14

ABC Corp. functions by creating products for a world market. It manufactures products on a global scale in a few highly efficient plants and then markets them through a few key distribution channels. Which of the following strategies is being followed by ABC Corp. in this scenario?

Accepted Answer

A)   A meganational strategy
B)   A multidomestic strategy
C)   A translational strategy
D)   A transverse strategyE) A) and B)
F) A) and C)

Question 15

DelBottling, a manufacturer of glass bottles, chooses to process the production of sheet glass in the country of Bojinia, a neighboring country, where labor costs are relatively low. In the context of a meganational strategy, DelBottling has exploited _____.

Accepted Answer

A)   balanced scorecards
B)   capital gains
C)   bear markets
D)   location economiesE) C) and D)
F) None of the above

Question 16

In the context of global integration, which of the following is a way by which a company can lower its per-unit costs?

Accepted Answer

A)   By centralizing production
B)   By decentralizing distribution
C)   By maintaining a large number of facilities
D)   By creating a network of specialized operationsE) All of the above
F) B) and C)

Question 17

When operations such as research and development, manufacturing, sales, and service are aligned across the countries in which a firm operates, the different parts of the corporation use the same methods. This is referred to as _____.

Accepted Answer

A)   screened assessment
B)   process regrouping
C)   service customization
D)   global integrationE) B) and C)
F) B) and D)

Question 18

Hruan Technologies is a company that wants to enter a foreign market. After deciding its entry mode, the company decides the strategy it can use to manage different customer demands, suppliers, and potential competitors. It then involves itself in various value-creating activities. In this context, which of the following statements is true of Hruan Technologies when it performs the operations involved with the value chain?

Accepted Answer

A)   It will need to scrutinize where the company can differentiate itself from its competitors.
B)   Standardized designs used by the company will have to be replaced by customized engineered products.
C)   The primary functions of the company will enable the support functions to operate more efficiently or effectively in order to create value.
D)   It will utilize human resources and information systems as its primary value chain functions.E) A) and B)
F) B) and C)

Question 19

In the context of strategic positioning, briefly explain a differentiation strategy.

Accepted Answer

Answers will vary. A differentiation str...

Question 20

XYZA Inc. is a manufacturer of leather goods. It follows a transnational strategy. Which of the following statements is true of XYZA Inc. in this context?

Accepted Answer

A)   It aims to be both locally responsive and globally integrated simultaneously.
B)   It achieves integration through decisions made by its headquarters.
C)   Coordination within the company follows a top-down approach.
D)   Coordination within the company follows a bottom-up approach.E) C) and D)
F) B) and C)

Exam 14: International Strategy

GeonHouses, a leading manufacturer and supplier of crockery, charges three dollars for each soup bowl. The cost of manufacturing each soup bowl is one dollar. In this scenario, the difference between the price GeonHouses charges per soup bowl and the cost of making it is referred to as _____.

Correct Answer
verified

In the context of the value chain functions, which of the following functions ensures that a company has employees with the right mix of skills who are adequately trained, motivated, and compensated to perform their value creation tasks by following the organization's strategy and creating value?

Correct Answer
verified

In the context of global integration, which of the following is a way by which a company can lower its per-unit costs?

Correct Answer
verified

In the context of choosing an international strategy, which of the following is a similarity between a multidomestic strategy and a transnational strategy?

Correct Answer
verified

Correct Answer
verified

XYZA Inc. is a manufacturer of leather goods. It follows a transnational strategy. Which of the following statements is true of XYZA Inc. in this context?

Correct Answer
verified

When a company follows a multidomestic strategy, _____.

Correct Answer
verified

In the context of strategic positioning, briefly explain a differentiation strategy.

Correct Answer
verified
Answers will vary. A differentiation str...
View Answer

According to you, how should a company handle a situation in which it is facing pressure to be both locally responsive and globally integrated? Justify if adopting a transnational strategy would be the best option in this scenario.

Correct Answer
verified
Answers will vary. Many companies face p...
View Answer

Correct Answer
verified

ABC Corp. functions by creating products for a world market. It manufactures products on a global scale in a few highly efficient plants and then markets them through a few key distribution channels. Which of the following strategies is being followed by ABC Corp. in this scenario?

Correct Answer
verified

Sustaining profitable growth through a differentiation approach requires that companies:

Correct Answer
verified

DelBottling, a manufacturer of glass bottles, chooses to process the production of sheet glass in the country of Bojinia, a neighboring country, where labor costs are relatively low. In the context of a meganational strategy, DelBottling has exploited _____.

Correct Answer
verified

When operations such as research and development, manufacturing, sales, and service are aligned across the countries in which a firm operates, the different parts of the corporation use the same methods. This is referred to as _____.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

According to you, how can the problem of being too locally responsive be solved? Justify your answer.

Correct Answer
verified
Answers will vary. A company doesn't alw...
View Answer

In the context of choosing an international strategy, which of the following exemplifies a scenario where a company has adopted a meganational strategy?

Correct Answer
verified

LiveUp, a leading health drink manufacturer, has highly standardized both its health drink formula and its advertising themes across markets. The company has made its product known in a consistent manner across the world. In this scenario, LiveUp is following the process of _____.

Correct Answer
verified

In the context of value chain analysis, discuss how the support roles of the value chain provide inputs or pathways that enable the primary roles to create value.

Correct Answer
verified
Answers will vary. The support roles of ...
View Answer

Exam 14: International Strategy

GeonHouses, a leading manufacturer and supplier of crockery, charges three dollars for each soup bowl. The cost of manufacturing each soup bowl is one dollar. In this scenario, the difference between the price GeonHouses charges per soup bowl and the cost of making it is referred to as _____.

Correct AnswerverifiedShow Answer

In the context of the value chain functions, which of the following functions ensures that a company has employees with the right mix of skills who are adequately trained, motivated, and compensated to perform their value creation tasks by following the organization's strategy and creating value?

Correct AnswerverifiedShow Answer

In the context of global integration, which of the following is a way by which a company can lower its per-unit costs?

Correct AnswerverifiedShow Answer

In the context of choosing an international strategy, which of the following is a similarity between a multidomestic strategy and a transnational strategy?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

XYZA Inc. is a manufacturer of leather goods. It follows a transnational strategy. Which of the following statements is true of XYZA Inc. in this context?

Correct AnswerverifiedShow Answer

When a company follows a multidomestic strategy, _____.

Correct AnswerverifiedShow Answer

In the context of strategic positioning, briefly explain a differentiation strategy.

Correct AnswerverifiedAnswers will vary. A differentiation str...View AnswerShow Answer

According to you, how should a company handle a situation in which it is facing pressure to be both locally responsive and globally integrated? Justify if adopting a transnational strategy would be the best option in this scenario.

Correct AnswerverifiedAnswers will vary. Many companies face p...View AnswerShow Answer

Correct AnswerverifiedShow Answer

ABC Corp. functions by creating products for a world market. It manufactures products on a global scale in a few highly efficient plants and then markets them through a few key distribution channels. Which of the following strategies is being followed by ABC Corp. in this scenario?

Correct AnswerverifiedShow Answer

Sustaining profitable growth through a differentiation approach requires that companies:

Correct AnswerverifiedShow Answer

DelBottling, a manufacturer of glass bottles, chooses to process the production of sheet glass in the country of Bojinia, a neighboring country, where labor costs are relatively low. In the context of a meganational strategy, DelBottling has exploited _____.

Correct AnswerverifiedShow Answer

When operations such as research and development, manufacturing, sales, and service are aligned across the countries in which a firm operates, the different parts of the corporation use the same methods. This is referred to as _____.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to you, how can the problem of being too locally responsive be solved? Justify your answer.

Correct AnswerverifiedAnswers will vary. A company doesn't alw...View AnswerShow Answer

In the context of choosing an international strategy, which of the following exemplifies a scenario where a company has adopted a meganational strategy?

Correct AnswerverifiedShow Answer

LiveUp, a leading health drink manufacturer, has highly standardized both its health drink formula and its advertising themes across markets. The company has made its product known in a consistent manner across the world. In this scenario, LiveUp is following the process of _____.

Correct AnswerverifiedShow Answer

In the context of value chain analysis, discuss how the support roles of the value chain provide inputs or pathways that enable the primary roles to create value.

Correct AnswerverifiedAnswers will vary. The support roles of ...View AnswerShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Answers will vary. A differentiation str...
View Answer

Correct Answer
verified
Answers will vary. Many companies face p...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Answers will vary. A company doesn't alw...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Answers will vary. The support roles of ...
View Answer