Overall, strategy isA a rulebookB a blueprintC a set of programmed instructionsD none of the aboveMu
Overall, strategy isA a rulebookB a blueprintC a set of programmed instructionsD none of the aboveMuch of our knowledge about “the firm” is from research on firms inA Anglo-American capitalismB Japan after World War IIC German mathematical modelsD emerging marketsThe word ____________ has now become the most famous Chinese business word to appear in English-language media and means interpersonal networks.A keiretsuB guanxiC chaebolD blat”Global Strategy” refers toA a particular theory on how to competeB offering standardized products and services on a worldwide basisC strategy of firms around the globe — essentially various firms’ theories about how to compete successfullyD all of the aboveGlobal strategies have reached new levels of significance because of three defining events:A education, fewer travel restrictions, and world bankingB cultural diversity, world-wide education standards, and emerging nationsC terrorist attacks, anti-globalization protests, and corporate crisis in Asia and the U.S.D expanding travel, shared sense of capitalism, and world standards for ethical behaviorA SWOT analysis entails a firm’s assessment of ______A strengths, weaknesses, opposition, and threatsB strengths, weaknesses, opportunities, and threatsC strategy, weaknesses, opposition, and threats.D strategy, weaknesses. opportunities, and timingAt the dawn of the 21st century, ____ had significant ramifications for companies and strategists around the world.A anti-globalization protestsB terrorist attacksC corporate governance crisisD all of the aboveKnowing the concepts and components of global strategy willA improve job and career opportunitiesB build awareness of what is going on in the worldC avoid the downside risks of globalizationD all of the aboveWhat is the best view of the concept of globalization?A A new force sweeping through the world in recent timesB A long-run historical evolution since the dawn of human historyC A pendulum that swings from one extreme to another from time to timeD All of the aboveIn developing a strategy regarding competition or cooperation, it would be useful to notA “Look back, reason ahead”B strengthen capabilities that more effectively compete and/or cooperateC understand the rules of the game governing competition around the worldD understand the nature of your industry”The extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm” refers to similarity ofA strategyB resourcesC marketsD industryWhich is not true concerning U.S. anti-trust policy today?A Legislation has legally permitted rivals to join hands in research and development (R&D)B There is increased permissiveness regarding mergers among rivalsC The legal standards for inter-firm cooperation are no longer ambiguous in the U.S.D Clarity of policy has improvedDumping is defined asA shipping hazardous waste to locations in other countriesB an exporter selling below cost abroad and planning to raise prices after eliminating local rivalsC unloading unsold inventory from the U.S. in other countriesD excessive criticism of international rivalsIn some industries where pressures for globalization are relatively low, local firms may possess some skills and assets that are transferable overseas, thus leading to a/an_____ strategy.A defenderB extenderC dodgerD contenderThe main types of attack includeA thrustB feintC gambitD all of the aboveWhich of the following would not be considered an initial set of actions to gain competitive advantage:A counterattacksB advertising campaignsC market entriesD price cutsWhich of the following is not a legal means of signaling?A Nonaggression or fat catB Truce seekingC Direct discussion of reduced rivalry with competitorsD Communication via governmentsWhich is true of strategy?A Business strategy has similarities with military strategyB Military principles cannot be completely applied in businessC Militaries fight over territories, waters, and air spaces while firms compete in marketsD All of the aboveWhich of the following is not an argument in favor of centralization in knowledge management but instead is an argument in favor of decentralization?A Capability to facilitate corporate-wide coordinationB Consistency in decision-makingC Permits greater speed, flexibility, and innovationD Sufficient power for corporate-level managers to initiate necessary actionsUnique to international competition are the pressures for local responsiveness, which are reflected inA consumer preferencesB distribution channelsC host country demandsD all of the aboveFour strategic choices for MNEs do not includeA home replicationB domesticC multi-domesticD transnationalThe type of knowledge that is codifiable (that is, it can be written down and transferred without losing much of its richness) is calledA explicitB implicitC tacitD lucidWhich is true of globalized R&D?A Is often known as innovation-avoidance expenseB One way to access such a high technology and research-rich cluster is to avoid FDIC R&D work performed by different locations and teams around the world virtually guarantees failureD For large firms, there are actually diminishing returns for R&DKnowledge management uses “centers of excellence†in which type of MNE?A home replicationB localization (multi-domestic)C global standardizationD transnationalLocalization (multi-domestic) strategy involves all of the following exceptA focuses on a number of foreign countries/regionsB global standardization strategy is the same as a multi-domestic strategyC is effective when there are clear differences among national and regional marketsD a localization (multi-domestic) strategy has high costsPressures for cost reductions and local responsiveness includeA the framework of how to simultaneously deal with these two sets of pressuresB host country demands and expectationsC being locally responsive makes local customers and governments happy but increase costsD all of the aboveWhich of the following is not an argument in favor of decentralization in knowledge management but instead is an argument in favor of centralization?A Better motivates subsidiary-level managers and employees through empowermentB Reduces corporate level overload of responsibilitiesC Better motivates subsidiary level managersD Sufficient power for corporate-level managers to initiate necessary actionsWhich of the following is not an argument in favor of decentralization in knowledge management but instead is an argument in favor of centralization?A Better motivates subsidiary-level managers and employees through empowermentB Reduces corporate level overload of responsibilitiesC Better motivates subsidiary level managersD Sufficient power for corporate-level managers to initiate necessary actionsThis structure is often used to supply customers (often other MNEs) in a coordinated and consistent way across various countries.A global account structureB an industry sector structureC solutions-based structureD all of the aboveThe differences in formal and informal institutions that govern the rules of the game in different countries include _______ differences.A RegulatoryB LanguageC CulturalD All of the aboveE None of the aboveAs firms expand into more countries, they should recognize:A Foreign firms are still often discriminated against.B Foreign firms primarily deploy overwhelming resources and capabilities that offset the liability of foreignness.C Foreign firms are able to offset the liability of foreignness and still have some competitive advantage.D All of the above.E None of the aboveSmall firms in a large domestic market are referred to as:A Enthusiastic internationalizers.B Follower internationalizers.C Slow internationalizers.D Occasional internationalizers.E Domestic internationalizers.Firms may choose not to enter certain countries if:A They possess rare firm-specific assets.B The transaction costs are too low.C There are dissemination risks.D There is an authorized diffusion of firm-specific assets.E All of the above.Organizing firm-specific resources and capabilities as a bundle:A Favors firms with strong complementary assets.B Prevents having assets integrated as a system.C Discourages using them overseas.D Is counterproductive.E Occurs only in domestic markets.Which of the following are not regulatory risks?A An obsolescing bargain.B Deals that have been struck by MNEs and host governments.C Nationalization.D Recent trends among host governments regarding their relationships with MNEs.E B and C above.Which of the following exemplify trade barriers?A Tariffs.B Local content requirements.C Restrictions on certain entry modes.D A and C above.E All of the above.The strategic goal of __________ involves going after countries that offer the highest price.A Natural resources seekingB Market seekingC Efficiency seekingD Innovation seekingE Profit seekingFirst mover advantages do not include:A Developing proprietary, technological leadership.B Preempting scarce assets.C Establishing entry barriers.D Successful clashes with dominant firms in domestic markets.E Creating good relationships with key stakeholders.Large-scale entries do which of the following?A Benefit from a strategic commitment.B Assure local customers and suppliers.C Deter potential entrants.D A and B above.E All of the above.Non-equity modes of entry typically involve:A Exports and contractual agreements.B Larger, harder-to-reverse commitments.C Establishing independent organizations overseas.D Joint ventures (JVs).E Wholly owned subsidiaries.All of the following are true of direct exports except:A Most basic mode of entry.B Capitalizes on economies of scale in production concentrated in the home country.C Affords better control over distribution.D The agendas and objectives of the intermediaries and exporters are the same.E Designs and productions geared for the domestic market first and foremost.Selling the rights to intellectual property for a royalty fee is involved in:A Licensing/franchising.B Turnkey projects.C R&D contracts.D Co-marketing.E All of the above.Sources of operational synergy include:A Technologies.B Marketing.C Manufacturing.D All of the above.E None of the above.Diversification premium is the same thing as:A Conglomerate advantage.B Diversification discount.C Conglomerate disadvantage.D Level of product diversification.E Measurement of firm performance.Which would be more characteristic of conglomerates?A “Putting one’s eggs in one basket.â€B “Putting one’s eggs in similar baskets.â€C “Putting one’s eggs in different baskets.â€D A and B above.E B and C above.Research regarding the relationship between product diversification and firm performance indicates that:A Performance may increase as firms shift from single business strategies to product-related diversification.B Performance may decrease as firms change from product-related to product–unrelated.C The linkage between diversification and performance is inverted U shaped.D “Putting your eggs in similar baskets,†has emerged as a balanced way to both reduce risk and leverage synergy.E All of the above.Which geographic diversification is most likely to reduce the liability of foreignness?A Culturally adjacent countries.B Extensive international scope.C Beyond geographically neighboring countries.D Beyond culturally neighboring countries.E All of the aboveIn combining product and geographic diversification, which is not one of the four possible combinations?A Anchored replicators.B Multinational replicators.C Far-flung conglomerates.D Classic replicators.E Classic conglomeratesAt its core, diversification is essentially driven by all of the following except:A Economic benefits.B Bureaucratic costs.C Synergy.D Less complicated information systems.E MEB.Select the best choice: a company that is engaged in oil production, pipelines and tankers, refining, and gasoline stations has engaged in ______________ expansion.A HorizontalB VerticalC ConglomerateD Friendly M&AE Hostile M&AWhich is one motive for M&A which does not necessarily increase shareholder value?A Synergistic.B Hubris.C Performance.D A and C above.E None of the above.Corporate scope is shaped by:A Industry conditions.B Firm capabilities.C Institutional constraints.D Opportunities in both developed and emerging economies.E All of the above.Product-related diversification involves all of the following except:A A single business strategy.B Entries into activities that are related to a firm’s existing markets and/or activities.C The emphasis is on economies of scale rather than scope.D Increases in competitiveness.E Synergy.The following managerial motives for conglomerations do not benefit shareholders except:A Norms.B Reducing managers’ employment risk.C Organizational stability.D Pursuing power, prestige, and income.E Empire building.Which of the following is true regarding M&As?A As many as 70 percent of M&As reportedly fail.B On average, the acquiring firms’ performance improves after acquisitions.C Target firms, after being acquired and becoming internal units, often perform better than when they were independent, stand-alone firms.D The only identifiable losers are the shareholders of target (acquired) firms.E The outstanding success of M&As is due to pre- and post acquisition phases.To ensure the success of the M&A, managers need to make sure of all the following except:A Be willing to walk out when premiums are too high.B Engage in adequate due diligence concerning strategic fit.C Seek organizational contrast and variety rather than organizational fit.D Address the concerns of multiple stakeholders.E Recognize that that integration management is a fulltime job.Which is true regarding restructuring?A There are two primary ways of restructuring, namely downsizing and upsizing.B A rising level of competition within an industry normally prevents restructuring.C Corporate restructuring is not widely embraced around the world.D Restructuring is one of first things to consider when trying to improve profitability.E Restructuring is easier in knowledge-intensive firms than capital-intensive firms.Which is true of relatedness?A Measurement of product relatedness is no longer debatable.B A “product-related†firm will be considered related regardless of the measure used.C Some argue that product relatedness refers specifically to the visible product linkages.D Relatedness can be a common underlying dominant logic that connects various businesses in a diversified firm.E Product-unrelated conglomerates may are not linked by institutional relatedness.
