International Management review

chapter 8 (questions+vocab), chapter 9 (questions) , chapter 10 (questions) , chapter 11 (questions)

The process of determining an organizations basic mission and long-term objectives and than implementing a plan of action attaining these objectives is called:

Strategic management

Which of the following statements is true about strategic management?

All levels of management are imperative to the strategic implementation process

Honda and General Motors have both built plants in Thailand to take advantage of:

Tax incentives and demand

A(n) _____ strategy is most likely to be used when a product is regarded as a generic good and therefore does not have to be sold based on name brand or support service

economic imperative

A worldwide strategy based on cost leadership, differentiation, and segmentation is referred to as the ____ strategy

economic imperative

Who among the following are the key to stimulating profit growth within a company?

Middle managers

When focusing on the ____ approach to strategic planning, companies typically sell products for which a large portion of value is added in the upstream activities of the industry’s value chain.

economic imperative

Multinational corporations using the _____ approach to strategic planning are country-responsive; their approach is designed to protect local market niches.

political imperative

When using the ____ approach to strategic planning, the products sold by multinational corporations often have a large portion of their value added in the downstream activities of the value chain.

political imperative

The _____ approach to strategic planning is used by multinational corporations that need a country-centered or multi-domestic strategy

political imperative

The approach to strategic formulation and implementation utilizing strategies or total quality management to meet or exceed customers’ expectations and continuously improve products and/or services is referred to as the:

quality imperative

The quality strategy is formulated at the _____ management level and is diffused throughout the _____.

top; organization

A(n) _____ approach to strategy formulation and implementation is one in which a multinational corporation makes strategic decisions based on the merits of the individual situation rather than using a predetermined economic or political strategy

administrative coordination

The production and distribution of products and services of a homogeneous type and quality on a worldwide basis is called_____.

global integration

Total quality management techniques range from traditional inspection and statistical quality control to cutting-edge human resource management techniques, such as:

self-managing teams and empowerment

Which of the following strategies is appropriate when the need for national responsiveness is low and the need for global integration is high?

Global strategy

When the need for national responsiveness is high and the need for global integration is also high, the most appropriate strategy is a(n) ____ strategy.

transnational

When the need for national responsiveness is high and the need for global integration is low, a(n) ____ strategy is appropriate.

multi-domestic

When the need for national responsiveness is low and the need for global integration is also low, which of the following strategies would be appropriate?

International strategy

Which of the following is not one of the steps in strategic planning?

Transferring the successful process used in a developed country to an emerging economy

Many large multinational corporations work to combine the _____ approaches to strategic planning.

economic, political, quality, and administrative

_____ attempts to provide management with accurate forecasts of trends that relate to external changes in geographic areas where the firm is currently doing business or considering setting up operations.

Environmental scanning

______ is central to discovering if a multinational corporation can survive in a particular region

Environmental scanning

_____ is the strategic planning process that helps a firm evaluate its current managerial, technical, material and financial strengths and weaknesses

Internal resource analysis

In the context of strategy formulation, which of the following identifies the key factors for success that will dictate how well the firm is likely to do?

Internal analysis

A key success factor is a factor that is necessary for a firm to compete effectively is a(n):

international market

Which of the following statements about the internet business is false?

It experiences more problems than “bricks and mortar” business during times of financial crisis

Once strategic goals are set, a multinational corporation will develop specific _____ goals and controls, usually through a two-way process at the subsidiary or affiliate level

tactical

The process of providing goods and services in accord with a plan of action is called:

strategy implementation

International management must consider three general areas in strategy implementation. First, the multinational corporation must:

decide where to locate operations

In choosing a location, a primary consideration for a multinational corporation investing in a foreign country would be a decision based on:

specific locale

Why do multinational corporations often invest in advanced industrialized countries?

They offer the largest markets for goods and services

All of the following act as disincentives for multinational corporations except:

export maximums for generating foreign currency

A multinational corporation’s choice of a specific locale is affected by all of the following factors except:

the structure of the organization

For products like computers, Japanese firms:

move from their home market directly into fully developed countries and then on to newly developing nations

The implementation of a marketing strategy in international areas is built around the well-known "four Ps" of marketing. These are:

product, price, promotion, and place

If a firm operates production plants in different countries but makes no attempt to integrate its overall operations, the company is known as a(n)
_____ firm.

multi-domestic

If a company is going to export goods to a foreign market, the production process traditionally has been handled through:

domestic operations

To respond to risks in emerging markets, multinational corporations must do all of the following except:

avoiding joint ventures

When market liberalization is delayed,_____

first movers possess clear, significant advantages in transitional markets

The significant economies associated with early-entry positioning include all of the following except:

developing alliances with the most attractive local partner

Which of the following groups make up the "base of the pyramid" in international management?

Potential low-income customers at the bottom of the economic pyramid

Which of the following is likely to be the most effective strategic approach for the "base of the pyramid"?

Leapfrog technologies, including disruptive technologies

Which of the following findings regarding the base of the pyramid (BOP) strategy has significant implications for the globalization–national responsiveness framework?

Business models forged successfully at the base of the pyramid have the potential to travel profitably to higher-income markets

All of the following are challenges firms could face in the implementation of the base of the pyramid (BOP) strategy except

coordinating administrative functions

Which of the following is not one of the factors that made international management activities of entrepreneurial and new-venture firms possible?

customized, old access channels

Firms that internationalize after being domestically established have to overcome all of the following barriers except:

their anti-risk seeking behavior

Which of the following statements is true of the technological learning gained from varied international environments?

It is enhanced by efforts to integrate knowledge throughout a firm

_____ are firms that engage in significant international activity shortly after being established

Born globals

Which of the following is not a feature of born-global firms?

They export products to close markets

An important feature of wholly owned subsidiaries is that:

they offer higher profits, clearer communications, and shared visions to a multinational company (MNC)

Identify a true statement about alliances and joint ventures

They have become popular in recent years because of the significant operational benefits they offer to both multinational companies (MNCs) and their local partners

An important feature of an equity joint venture is that:

it involves a financial investment by a multinational company (MNC) in a business enterprise with a local partner.

Identify a true statement about a nonequity venture

It is characterized by one group's merely providing a service to another.

Identify the two types of joint ventures

Equity and nonequity ventures

Which of the following routes is a multinational company (MNC) likely to choose in order to quickly expand resources or construct high-profit products in a new market?

Mergers and acquisitions

A _____ is a business arrangement under which one party allows another to operate an enterprise using its trademark, logo, product line, and methods of operation in return for a fee.

franchise

Which of the following statements is true about licensing?

In a typical arrangement, the licensor will allow the licensee to use a patent, a trademark, or proprietary information in exchange for a fee

Advantages of alliances and joint ventures include all of the following except____

collusion or restriction in competition

Which of the following globalization versus local responsiveness combinations best fits the telecommunications industry?

High pressure for globalization and high pressure for local responsiveness

Which of the following globalization versus local responsiveness combinations best fits the cement manufacturing industry?

Low pressure for globalization and low pressure for local responsiveness

Identify a true statement about export arrangements in the context of initial division structure.

Firms can reduce the risk and size of investment in establishing significant international operations using an export arrangement.

In a company that has a narrow product line, the export manager usually reports directly to the head of____

marketing

Which of the following statements is true about an international division structure of an organization?

Companies that use an international division structure include those with small international sales, limited geographic diversity, or few executives with international expertise.

Pressure by local government for continued growth of international sales encourages on-site _____.

manufacturing operations

A structural arrangement that handles all international operations out of a division created for this purpose is referred to as a(n) _____.

international division structure

All of the following types of companies are likely to adopt an international division structure except:

companies with a large number of executives with international expertise

A structural arrangement in which domestic divisions are given worldwide responsibility for
product groups is referred to as a(n) _____

global product division structure

Global structures of multinational companies (MNCs) come in three common types:

product, area, and functional

Which of the following provides the most benefits when the need for product specification or differentiation is high?

Global product division

A feature of global area division structures is that they:

often ignore research and development (R&D) efforts because they are selling goods that have reached the maturity stage

An important feature of the global area division structure approach is that:

it often signals a major change in company strategy because now international operations are put on the same level as domestic operations.

Which of the following organizes worldwide operations based on primarily on function and secondarily on product?

Global functional division structure

Which of the following is a feature of a global functional division?

An emphasis on functional expertise

Which of the following statements is true about transnational network structures?

They are convoluted integrations of business functions and communications where decisions are made at the local level, but each grouping informs headquarters and sometimes each other

A structure that is a combination of a global product, an area, or a functional arrangement is referred to as a(n) _____ organizational structure

mixed

A multinational structural arrangement that combines elements of function, product, and
geographic designs while relying on a network arrangement to link worldwide subsidiaries is referred to as a _____.

transnational network structure

A ______ is designed to help multinational companies (MNCs) take advantage of global economies of scale while also being responsive to local customer demands

transnational network structure

At the center of a _____ are nodes, which are units charged with coordinating product, functional, and geographic information.

transnational network structure

Subsidiaries that are located anywhere in the world where they can benefit the organization are called ____

dispersed subunits

Specialized operations are:

designed to tap specialized expertise or other resources in a company's worldwide subsidiaries

Interdependent relationships are:

used to share information and resources throughout dispersed and specialized subunits

Which of the following statements is true about cultural control mechanism in a global area division?

Cultural control mechanism is possible for some companies but not always necessary.

In which of the following multinational company (MNC) structures is tight process bureaucratic control used to maintain product quality and consistency?

Transnational network structure

The decision-making control in which local units are given autonomy is characteristic of a(n)______

global area division structure

The output control in which profit responsibility is shared with product and geographic units is characteristic of a(n) _____.

matrix structure

In which type of multinational structure is bureaucratic control considered unimportant?

Matrix structure

Which of the following statements is true about global product divisions?

A global product division structure provides a direct line of communication from the customer to those in the organization who have product knowledge and expertise

Which of the following is an advantage of a mixed organization structure?

It allows an organization to create the specific type of design that best meets its needs.

Individuals who work for a company, usually via the Internet, and move on to other employment when their assignment is done are known as _____

electronic freelancers

_____ can be best defined as the use of defined structures and systems in decision making, communicating, and controlling.

Formalization

Some countries make greater use of formalization than others; in turn, this affects _____

the day-to-day organizational functioning

Multinational companies (MNCs) realize there are two dimensions of formality-informality that must be considered:

internal and external

In a study of a US and Japanese firms in Taiwan, objective formalization was measured by_____

the number of different documents given to employees

As an organizational characteristic, ____ is the assigning of individuals to specific, well-defined tasks

specialization

Specialization in an international context can be classified into ____

horizontal and vertical specializations

The assignment of jobs so that individuals are given a particular function to perform, who tend to stay within the confines of this area, is referred to as _____

horizontal specialization

Which of the following statements is true about vertical specialization?

It is characterized by distinct differences between the levels in hierarchy such that those higher up are accorded much more status than those farther down

In an international context, the value of centralization will vary according to:

the local environment and the goals of an organization

Pushing decision making down the line and getting the lower-level personnel involved is referred to as_____

decentralization