BSG Flashcards


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created 6 years ago by Liz_Coley
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Chapter 7
updated 6 years ago by Liz_Coley
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1

Two drawbacks of a "think local, act local" multicountry strategy are

The likelihood that customizing a company's products country by country will raise production and distribution costs and the fact that localized multicounty strategies are not conducive to building a single, unified competitive advantage in all country markets where a company competes.

2

Which of the following is not one of the primary strategy options for competing in the markets of foreign countries?

A profit santuary strategy

3

Which of the following qualifies as an offensive strategy for companies competing internationally or globally?

Attacking the profit sanctuaries of rival companies

4

Which of the following statements regarding global competition is false?

In global competitions, there's more cross-country variation in industry conditions and competitive forces than there is in industries where multicountry competition prevails.

5

According to Figure 7.2, which one of the following is not a trait of a localized multicountry strategy?

Coordinate major strategic decisions worldwide and use the best suppliers from anywhere in the world.

6

The advantages of using an export strategy to build a customer base in foreign markets include

utilizing excess production capacity to make goods for export and otherwise limiting the amount of capital required to begin competing internationally.

7

Which of the following is not a typical reason why companies opt to sell their products/services or to locate some of their operations in some or many countries?

To strengthen the capability to employ more effective offensive and defensive strategies

8

Which of the following is not a potential benefit of collaborative strategies involving alliances and/or joint ventures with foreign partners?

Greater ability to employ a global strategy (as opposed to a multicountry strategy)

9

Because buyer tastes for a particular product or service sometimes differ substantially from country to country

company managers must resolve the tension between the market pressures to localize the firm's product offerings country-by-country to match the tastes and preferences of local buyers and the competitive pressures to lower costs by offering mostly standardized products in all countries where a company competes.

10

Domestic companies facing competitive pressure from lower-cost imports

benefit when their government's currency declines in values relative to the currencies of the countries where the lower-cost foreign imports are being manufactured.

11

A firm can seek to gain competitive advantages or counteract disadvantages in foreign country markets by

locating certain facilities and value chain activities in particular countries in order to lower costs or achieve greater product differentiation.

12

which of the following is the most unlikely element of a "think global, act global" approach to strategy-making?

selling different product versions under different brand names.

13

which of the following is not among the important strategic issues associated with competing across national boundaries?

which foreign country markets will prove to be the best and most well-protected profit sanctuary.

14

Profit sanctuaries

are country markets (or geographic regions) in which a company derives substantial profits because of its strong or protected market position.

15

Competing in one or more countries or regions of the world causes strategy-making to be more complex because of

the presence of important cross-country differences in buyer tastes, market sizes, and growth potential.

16

Which of the following are not among the primary strategy options for competing in foreign markets?

An international offensive strategy aimed at creating a worldwide profit santuary

17

A company that has competitively powerful resources and capabilities can enhance its competitiveness internationally and perhaps build competitive advantage by

...

18

which one of the following is not a reason why a company decides to enter foreign markets?

to build the profit sanctuaries necessary to wage guerilla offensives against global challengers endeavoring to invade its home market.

19

global competition exists when

competitive conditions across national markets are linked strongly enough to form a true international market and when leading competitors compete head to head in many different countries.

20

which of the following qualifies as an offensive strategy for companies competing internationally or globally?

Dumping goods at cut-rate prices in the markets of rivals

21

Which of the following is not a potential benefit of collaborative strategies involving alliances and/or joint ventures with foreign partners?

greater ability to employ offensive strategies and build well-protected profit sanctuaries.