Question<\/p>\n
QUESTION 1<\/p>\n
Which one of the following is not a reason a company decides to enter foreign markets?<\/p>\n
To spread business risk across a wider geographic market base<\/p>\n
To capitalize on company competencies and capabilities<\/p>\n
To achieve lower costs and enhance the firm’s competitiveness<\/p>\n
To build the profit sanctuaries necessary to wage guerrilla offensives against global challengers endeavoring to invade its home market<\/p>\n
To gain access to more buyers for the company’s products\/services<\/p>\n
4 points Saved<\/p>\n
QUESTION 2<\/p>\n
The advantages of using a licensing strategy to participate in foreign markets include<\/p>\n
being especially well suited to the use of cross-market subsidization.<\/a><\/p>\n being able to charge lower prices than rivals.<\/a><\/p>\n enabling a company to achieve competitive advantage quickly and easily.<\/a><\/p>\n being able to leverage the company’s technical know-how or patents without committing significant additional resources to markets that are unfamiliar, politically volatile, economically uncertain, or otherwise risky.<\/a><\/p>\n being able to achieve higher product quality and better product performance than with an export strategy.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 3<\/p>\n Two drawbacks of a “think local, act local” multidomestic strategy are<\/p>\n that it is especially vulnerable to fluctuating exchange rates and that it can usually be defeated by companies employing cross-market subsidization tactics.<\/a><\/p>\n excessive vulnerability to fluctuating exchange rates and having to craft a separate strategy for each country market in which the company competes.<\/a><\/p>\n hindering a company’s transfer of competencies and resources across country boundaries (since somewhat different competencies and capabilities are likely to be employed in different host countries) and not promoting the building of a single, unified competitive advantage in all country markets where a company competes.<\/a><\/p>\n greater exposure to both increases in tariffs and restrictive trade barriers and added difficulty in accommodating the diverse trade restrictions and regulatory requirements of host governments.<\/a><\/p>\n not being able to export products manufactured in one country to markets in other countries and being largely unsuitable for competing in the markets of emerging countries.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 4<\/p>\n The advantages of using a franchising strategy to pursue opportunities in foreign markets include<\/p>\n having franchisees bear most of the costs and risks of establishing foreign locations and requiring the franchisor to expend only the resources to recruit, train, and support foreign franchisees.<\/a><\/p>\n being particularly well suited to the global expansion efforts of companies with multicountry strategies.<\/a><\/p>\n helping build multiple profit sanctuaries.<\/a><\/p>\n being well suited to companies that employ cross-market subsidization.<\/a><\/p>\n being well suited to the global expansion efforts of manufacturers.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 5<\/p>\n The reasons behind the accelerating pace of globalization include<\/p>\n countries with previously planned economies are embracing market or mixed economies.<\/a><\/p>\n information technology shrinks the importance of geographic distances.<\/a><\/p>\n ambitious growth-minded countries race to build global share.<\/a><\/p>\n lower barriers to international trade.<\/a><\/p>\n All of these.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 6<\/p>\n A “think global, act global” approach to strategy making is preferable to a “think local, act local” approach when<\/p>\n a big majority of the company’s rivals are pursuing localized multidomestic strategies.<\/a><\/p>\n country-to-country differences are small enough to be accommodated with the framework of a mostly uniform global strategy.<\/a><\/p>\n plants need to be scattered across many countries to avoid high shipping costs.<\/a><\/p>\n market growth rates vary considerably from country to country.<\/a><\/p>\n host governments enact regulations requiring that products sold locally meet strict manufacturing specifications or performance standards.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 7<\/p>\n The strategic options for expansion into foreign markets include<\/p>\n employing a franchising strategy.<\/a><\/p>\n maintaining a national (one-country) production base and exporting goods to foreign markets.<\/a><\/p>\n licensing foreign firms to produce and distribute one’s products.<\/a><\/p>\n establishing a subsidiary in a foreign market.<\/a><\/p>\n All of these.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 8<\/p>\n Strategic alliances, joint ventures, and cooperative agreements between domestic and foreign firms are a potentially fruitful means for the partners to<\/p>\n enter additional country markets.<\/a><\/p>\n gain better access to scale economies in production and\/or marketing.<\/a><\/p>\n fill competitively important gaps in their technical expertise and\/or knowledge of local markets.<\/a><\/p>\n share distribution facilities and dealer networks, thus mutually strengthening their access to buyers.<\/a><\/p>\n All of these.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 9<\/p>\n Checking a diversified firm’s business portfolio for the competitive advantage potential of cross-business strategic fits entails consideration of<\/p>\n whether the parent company’s competitive advantages are being deployed to maximum advantage in each of its business units.<\/a><\/p>\n whether the competitive strategies employed in each business act to reinforce the competitive power of the strategies employed in the company’s other businesses.<\/a><\/p>\n whether the competitive strategies in each business possess good strategic fit with the parent company’s corporate strategy.<\/a><\/p>\n the extent to which there are competitively valuable relationships between the value chains of sister business units and what opportunities they present to reduce costs, share use of a potent brand name, or transfer skills or technology or intellectual capital from one business to another.<\/a><\/p>\n how compatible the competitive strategies of the various sister businesses are and whether these strategies are properly aimed at achieving the same kind of competitive advantage.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 10<\/p>\n Diversifying into a new industry by forming a new internal subsidiary to enter and compete in the target industry is attractive when<\/p>\n all of the potential acquisition candidates are losing money.<\/a><\/p>\n it is impractical to outsource most of the value chain activities that have to be performed in the target business\/industry.<\/a><\/p>\n there is ample time to launch the new business from the ground up.<\/a><\/p>\n the company has built up a hoard of cash with which to finance a diversification effort.<\/a><\/p>\n none of the companies already in the industry are attractive strategic alliance partners.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 11<\/p>\n A diversified company’s business units exhibit good resource fit when<\/p>\n each business is a cash cow.<\/a><\/p>\n a company has the resources to adequately support the requirements of its businesses as a group without spreading itself too thin and when individual businesses add to a company’s overall resource strengths.<\/a><\/p>\n each business is sufficiently profitable to generate an attractive return on invested capital.<\/a><\/p>\n each business unit produces large internal cash flows over and above what is needed to build and maintain the business.<\/a><\/p>\n the resource requirements of each business exactly match the resources the company has available.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 12<\/p>\n Retrenching to a narrower diversification base<\/p>\n is usually the most attractive long-run strategy for a broadly diversified company confronted with recession, high interest rates, mounting competitive pressures in several of its businesses, and sluggish growth.<\/a><\/p>\n is directed at improving long-term performance by building stronger positions in a smaller number of core businesses.<\/a><\/p>\n is an attractive strategy option for revamping a diverse business lineup that lacks strong cross-business financial fit.<\/a><\/p>\n is sometimes an attractive option for deepening a diversified company’s technological expertise and supporting a faster rate of product innovation.<\/a><\/p>\n is a strategy best reserved for companies in poor financial shape.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 13<\/p>\n Which of the following is an important appeal of a related diversification strategy?<\/p>\n Represents an effective way of capturing valuable financial fit benefits<\/p>\n Offers opportunities to transfer skills, expertise, technical know-how, or other capabilities from one business to another<\/p>\n Offers significant opportunities to strongly differentiate a company’s product offerings from those of rivals<\/p>\n Is more likely to pass the cost-of-entry test and the capital gains test than unrelated diversification<\/p>\n Is typically more profitable than unrelated diversification, which is a major factor in helping related diversification pass the attractiveness test<\/p>\n 4 points Saved<\/p>\n QUESTION 14<\/p>\n Conclusions about what the priorities should be for allocating resources to the various businesses of a diversified company need to be based on such considerations as<\/p>\n each business’s profit and growth prospects.<\/a><\/p>\n industry attractiveness and competitive strength of the various businesses.<\/a><\/p>\n the degree of strategic fit and resource fit with other business units.<\/a><\/p>\n each business’s cash flow characteristics and return on capital invested.<\/a><\/p>\n All of these.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 15<\/p>\n Divestiture can be accomplished by<\/p>\n selling a business outright.<\/a><\/p>\n spinning the unwanted business off as a managerially and financially independent company by selling shares to the investing public via an initial public offering of stock.<\/a><\/p>\n spinning the unwanted business off as a managerially and financially independent company by distributing shares in the new company to existing shareholders of the parent company.<\/a><\/p>\n All of these.<\/a><\/p>\n None of these; the best and quickest ways to divest a business are either to close it or else just walk away and give the keys to creditors.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 16<\/p>\n The one factor that is not relevant for company managers to worry about when their company has many unrelated firms, especially when they are very diverse is to<\/p>\n stay abreast of what’s happening in each industry and subsidiary.<\/a><\/p>\n pick business-unit heads having requisite combination of managerial skills and know-how to motivate people.<\/a><\/p>\n understand the true value of strategic investment proposals by business-unit managers.<\/a><\/p>\n know what to do if a business unit stumbles.<\/a><\/p>\n rely on the skills and expertise of business-level managers to build competitive advantage.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 17<\/p>\n The task of crafting corporate strategy for a diversified company encompasses<\/p>\n picking the new industries to enter and deciding on the means of entry.<\/a><\/p>\n initiating actions to boost the combined performance of the businesses the firm has entered.<\/a><\/p>\n pursuing opportunities to leverage cross-business value chain relationships and strategic fits into competitive advantage.<\/a><\/p>\n steering corporate resources into the most attractive business units.<\/a><\/p>\n All of these.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 18<\/p>\n Vertical integration strategies<\/p>\n extend a company’s competitive and operating scope because its operations extend across more parts of the total industry value chain.<\/a><\/p>\n are one of the best strategic options for helping companies win the race for global market leadership.<\/a><\/p>\n are a cost effective means of expanding a company’s lineup of products and services.<\/a><\/p>\n are particularly effective in boosting a company’s ability to expand into additional geographic markets, particularly the markets of foreign countries.<\/a><\/p>\n are a good strategy option for improving a company’s supply chain management capabilities, pursuing efforts to remodel a company’s value chain, achieving direct control over the costs of performing value chain activities, and gaining access to buyers.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 19<\/p>\n Once a company has decided to employ one of the five basic competitive strategies, then it must also consider such additional strategic choices as<\/p>\n whether and when to go on the offensive and initiate aggressive strategic moves to improve the company’s market position.<\/a><\/p>\n whether to outsource certain value chain activities or perform them in-house.<\/a><\/p>\n whether to form strategic alliances and collaborative partnerships to add to its accumulation of resources and competitive capabilities.<\/a><\/p>\n whether to integrate forward or backward into more stages of the industry value chain.<\/a><\/p>\n All of these<\/p>\n 4 points Saved<\/p>\n QUESTION 20<\/p>\n A strategic alliance<\/p>\n is a collaborative arrangement where companies join forces to defeat mutual competitive rivals.<\/a><\/p>\n involves two or more companies joining forces to pursue vertical integration.<\/a><\/p>\n is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control, and mutual dependence.<\/a><\/p>\n is a partnership between two companies that is typically intended to eliminate the need to engage in outsourcing.<\/a><\/p>\n is usually a cheaper and more effective way for companies to join forces than is merger.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 21<\/p>\n A blue ocean type of offensive strategy<\/p>\n refers to initiatives by a market leader to steal customers away from unsuspecting smaller rivals.<\/a><\/p>\n involves a preemptive strike to secure an advantageous position in a fast-growing market segment.<\/a><\/p>\n entails attacking rivals head-on with deep price discounts and continuous product innovation.<\/a><\/p>\n involves abandoning efforts to beat out competitors in existing markets and, instead, inventing a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand.<\/a><\/p>\n involves the use of surprise hit-and-run guerrilla tactics to harass money-losing rivals and drive them into bankruptcy.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 22<\/p>\n Experience indicates that strategic alliances<\/p>\n are generally successful.<\/a><\/p>\n work well in cooperatively developing new technologies and new products but seldom work well in promoting greater supply chain efficiency.<\/a><\/p>\n work best when they are aimed at achieving a mutually beneficial competitive advantage for the allies.<\/a><\/p>\n stand a reasonable chance of helping a company reduce competitive disadvantage, but very rarely form the basis of a durable competitive advantage over rivals.<\/a><\/p>\n are usually a company’s best approach to building a distinctive competence.<\/a><\/p>\n 4 points Saved<\/p>\n QUESTION 23<\/p>\n Which one of the following is not a strategically beneficial reason a company may enter into strategic partnerships or cooperative arrangements with key suppliers, distributors, or makers of complementary products?<\/p>\n To acquire or improve access to new markets<\/p>\n To expedite the development of promising new technologies or products<\/p>\n To enable greater vertical integration<\/p>\n To improve supply chain efficiency<\/p>\n To overcome deficiencies in technical and manufacturing expertise and to create desirable new skill sets and capabilities<\/p>\n 4 points Saved<\/p>\n QUESTION 24<\/p>\n Which of the following is not an example of a defensive move to protect a company’s market position and restrict a challenger’s options for initiating competitive attack?<\/p>\n Granting volume discounts or better financing terms to dealers\/distributors and providing discount coupons to buyers to help discourage them from experimenting with other suppliers\/brands<\/p>\n Signaling challengers that retaliation is likely in the event they launch an attack<\/p>\n Publicly committing the company to a policy of matching a competitors’ terms or prices<\/p>\n Maintaining a war chest of cash and marketable securities<\/p>\n Challenging struggling runner-up firms that are on the verge of going under<\/p>\n 4 points Saved<\/p>\n QUESTION 25<\/p>\n Why do mergers and acquisitions sometimes fail to produce anticipated results?<\/p>\n They do not produce the hoped for outcomes and changes to existing operations may not eventuate.<\/a><\/p>\n Cost savings may prove smaller than expected.<\/a><\/p>\n Gains in competitive capabilities may take substantially longer or never materialize.<\/a><\/p>\n Efforts to mesh corporate cultures can stall due to formidable resistance from organization members and key employees can become disenchanted and leave.<\/a><\/p>\n All of these.<\/a><\/p>\n 4 points Saved<\/p>\n","protected":false},"excerpt":{"rendered":" Question QUESTION 1 Which one of the following is not a reason a company decides to enter foreign markets? To spread business risk across a wider geographic market base To capitalize on company competencies and capabilities To achieve lower costs Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-28846","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/28846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=28846"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/28846\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=28846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=28846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=28846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}