MULTIPLE CHOICE

117. Interdependence between country operations increases the pressure for global coordination.

False. True.

118. Internationalization is increasingly not about exploiting existing capabilities in new national markets.

False. True.

119. What name is given to the purchase of components and services from the most appropriate suppliers around the world regardless of location?

• International compartmentalization.
• Multidomestic marketing.
• Global sourcing.
• The globallocal dilemma.

120. The globallocal dilemma in international strategy means:

• The issues related to globalization and the alleged disadvantaging of developing countries.
• How many local people to employ in foreign subsidiaries.
• Whether to centralize strategic decisions in head office or to devolve decision

making to subsidiaries.

• The extent to which products and services may be standardized across national

boundaries or need to be adapted to meet the requirements of specific national markets.

121. Which international strategy has a dispersed configuration and low levels of coordination of international activities?

Transnational. Global. Multidomestic. Export.

122. What do the four elements of Gehemawat's CAGE represent?

• Cultural distance, administrative and political distance, geographical distance

and environmental distance.

• Cultural distance, administrative and political distance, geographical distance

and economic.

• Country distance, administrative and political distance, geographical distance

and environmental distance.

• Country distance, administrative and political distance, gross distance and

economic distance.

123. Which of the following key factor should NOT be considered when assessing international retaliation?

• The reactiveness of the defender.
• Five Forces analysis.
• The clout that a defender can muster.
• The attractiveness of the market to the new entrant.

124. What term is used for an approach where firms initially use entry modes that allow them to maximize knowledge acquisition while minimizing the exposure of their assets?

• Multidomestic expansion.
• International competitor elimination.

• Foreign direct investment.
• Staged international expansion.

125. The view that innovation involves technologists creating new knowledge, which then forms the basis for new products for the rest of the organisation to produce and market, is known as market push.

True. False.

126. Which of the following statements correctly describe product or process innovation?

• Small new entrants typically have the greatest opportunity in the mature stage of an industry.
• Industries typically favor product innovation.
• Product innovation typically precedes process innovation.

127. What term is used for the process by which innovations spread among users, varying in pace and extent?

• The tipping point.
• Incremental innovation.
• Radical innovation. Diffusion.

128. Wherever possible, companies should aim to be first-movers.

False. True.

129. Which of the following are likely to be late-mover advantages?

• Pre-emption of scarce resources.
• Gaining experience curve benefits. Learning.

130. Which of the following is NOT the contextual factors that managers should consider when deciding whether to move first or not?

• The speed of change in the market.
• The shape of the experience curve.
• The organisation's capacity for profit capture.
• The availability of complementary assets.

131. Which of the following is most likely to be a key issue during the start-up stage?

• Releasing capital as a reward.
• Changing to intrapreneurship.
• Sources of capital.
• Changing from the role of entrepreneur to manager.

132. What name is given to people who set up a succession of enterprises, investing the capital raised on exit from an earlier venture into new growing ventures?

• Serial entrepreneurs.
• Serial venturists.
• Venture capitalists. Intrapreneurs.

133. Which of the following is key issues that a social entrepreneur may NOT consider at start-up?

• The development of ecosystems.
• Business model.
• Social mission.
• Organisational form.

134. Common problems in making acquisitions work relate to:

• Lack of cultural fit.
• Failure to add value, inability to integrate the new company, lack of

organisational learning and poor cultural fit.

• The two companies having different core competences.
• Failure to add value and inability to integrate the new company.

135. Which of the following is least likely to be a motive for acquisitions and mergers?

• To increase capabilities.
• To create consolidation opportunities.
• To use existing capabilities more successfully.
• To increase speed of entry into a rapidly changing market.

136. What term is used for M&A integration in which it is implied that both the acquired firm and the acquiring firm learn the best qualities from the other?

Preservation. Symbiosis. Holding. Absorption.

137. In the context of strategic alliances, what is meant by the term 'collaborative advantage'?

• The benefits of being part of a network of alliances of which an organisation is a member.
• The aim of two or more organisations in sharing resources and activities to pursue a strategy.
• The benefit of creating a new entity that is owned separately by the partners involved.
• The result of managing alliances better than competitors.

138. Which of the following is not a stage that occurs when two organisations form and eventually dissolve an alliance?

Courtship. Negotiation. Storming. Maintenance.

139. Networks differ from joint ventures in that networks:

• Are arrangements whereby two or more organisations work in collaboration without creating a new formal entity, but where there is mutual advantage in doing so.
• Are based on personal relationships.
• Are arrangements whereby two or more organisations work in collaboration

with the creation of a new formal entity.

• Are limited to e-commerce businesses.

140. Analysis suggests that a company could find a strategy that gains market share for advantage, and that exploits its superior resources and competences. The organisational culture suggests that it should stick to what it knows best. What strategy would you suggest?

Diversification. Retrenchment.

• Market penetration
• Market development.

141. Analysis suggests that a company's existing markets are saturated. The company wants to exploit its strategic capabilities in new arenas and satisfy its stakeholders by making rapid growth. What strategy would you suggest?

Retrenchment.

Market development.

Diversification.

Market penetration.