2. 1) ________ is the framework that managers apply to determine the competitive moves and business approaches that run the company.
3. Answer

4. 		A) Competition
   		B) Growth
   		C) Strategy
   		D) Independence

5 points

Question 2

1. "2) The industry organization (IO) paradigm reports that, on average, the best predictor of firm strategy is the ________."

   Answer

   		"A) company's stockpile of assets, skills, and capabilities"
   		B) aggressiveness of a company's objectives
   		"C) consistency among a company's structure, systems, and processes"
   		D) structure of the industry in which it competes

5 points

Question 3

1. 3) Which of the following is NOT among the five forces in the Five-Forces Model of Industry Structure?

   Answer

   		A) governments
   		B) buyers
   		C) potential new entrants
   		D) suppliers of raw materials

5 points

Question 4

1. 4) Which of the following is the purpose of a company's value proposition?

   Answer

   		A) to exceed customers' expectations
   		B) to force competitors into a price war
   		C) to identify consumers for whom the company creates products
   		D) to explain why a consumer should buy the company's products

5 points

Question 5

1. 5) A strategy that focuses on lowering operating costs is referred to as a ________ strategy.

   Answer

   		A) differentiation
   		B) cost leadership
   		C) cost minimization
   		D) every day low price

5 points

Question 6

1. 6) The essence of a differentiation strategy is to ________.

   Answer

   		A) target the most sophisticated segment of the market
   		B) incorporate the greatest number of features into a product
   		C) offer a unique product that supports a premium price
   		D) outspend rivals on product advertising

5 points

Question 7

1. 7) A company's value chain is the ________.

   Answer

   		A) variable sequence it goes through to convert its vision into shareholder value
   		B) mixture of activities it takes to define product value standards
   		C) discrete series of steps it takes to move a product from conception to the end-users
   		D) blueprint it follows to leverage its core capabilities

5 points

Question 8

1. 8) Dispersing value activities where and in how many places in the world is the issue of ________.

   Answer

   		A) logistics
   		B) clustering
   		C) coordination
   		D) configuration

5 points

Question 9

1. 9) Long production runs lower per unit costs as a plant's marginal cost of production decreases as the plant's operation increases. The plant is benefiting from ________.

   Answer

   		A) economies of scale
   		B) the cluster effect
   		C) digitization
   		D) location economies

5 points

Question 10

1. "10) A ________ is a special outlook, skill, capability, or technology that runs through the firm's operations, weaving together all value activities into an integrated value chain."

   Answer

   		A) core competency
   		B) value proposition
   		C) mission statement
   		D) learning curve

5 points

Question 11

1. "11) Which of the following refers to the means by which management applies the systems that link a company's value activities, whether those activities are performed in one or in many countries?"

   Answer

   		A) configuration
   		B) logistics
   		C) coordination
   		D) core competency

5 points

Question 12

1. 12) Social network analysis indicates that information flows more efficiently in a(n) ________ manner.

   Answer

   		A) collaborative
   		B) competitive
   		C) hierarchical
   		D) impersonal

5 points

Question 13

1. 13) Firms that compete in the global marketplace typically face the asymmetric forces of pressures for ________ and ________.

   Answer

   		A) global integration; local responsiveness
   		B) price reductions; cost reductions
   		C) politically sensitivity; market leadership
   		D) cost reductions; marginal costs

5 points

Question 14

1. 14) Which of the following is a pressure for global integration of an MNE's value activities?

   Answer

   		A) the marginal costs of producing in separate facilities exceeding the marginal costs of producing in a single facility
   		B) the variability in consumers' tastes and preferences across countries
   		C) the market pressures to continually add new product features and functionality
   		D) the demands imposed by host country governments

5 points

Question 15

1. 15) Advantages of following a strategy of local responsiveness include the ________.

   Answer

   		A) improved ability to transfer skills among different countries
   		B) opportunity to adopt a global advertising program
   		C) ease in standardizing manufacturing methods across countries
   		D) flexibility to apply location-specific skills to local opportunities

5 points

Question 16

1. 16) Growing demands for transparency will push companies to make their value chains ________.

   Answer

   		A) more locally responsive
   		B) more globally integrated
   		C) simpler and shorter
   		D) more complex and longer

5 points

Question 17

1. 17) Firms that pursue a(n) ________ strategy try to create value by transferring valuable core competencies from headquarters to foreign markets where rivals are unable to compete.

   Answer

   		A) transnational
   		B) multidomestic
   		C) global
   		D) international

5 points

Question 18

1. 18) A multidomestic strategy makes the most sense for an MNE when the company faces which of the following conditions?

   Answer

   		A) a high need for local responsiveness and a low need to reduce costs via global integration
   		B) a high need for local responsiveness and a high need to create efficiencies via global integration
   		C) a low need for local responsiveness and a low need to reduce costs via global integration
   		D) a low need for local responsiveness and a high need to create efficiencies via global integration

5 points

Question 19

1. 19) Google essentially views the entire world as one market and assumes that there are no actionable differences among countries with regard to consumer tastes and preferences. Google is engaging a(n) ________ strategy.

   Answer

   		A) international
   		B) multidomestic
   		C) transnational
   		D) global

5 points

Question 20

1. "20) Although sounding contradictory, some firms see great benefit to orienting operations that simultaneously focus efforts on ensuring local responsiveness, aggressively reducing operational costs, and systematically transferring ideas and innovations among subsidiaries. Companies following this approach are considered to be following a(n) ________ strategy."

   Answer

   		A) global
   		B) multidomestic
   		C) transnational
   		D) international