BMAL 590 Academic Leveling Course Week 5 MCQs

Overall, strategy is

A
a rulebook
B
a blueprint
C
a set of programmed instructions
D
none of the above
Much of our knowledge about "the firm" is from research on firms in

A
Anglo-American capitalism
B
Japan after World War II
C
German mathematical models
D
emerging markets
The word ____________ has now become the most famous Chinese business word to appear in English-language media and means interpersonal networks.

A
keiretsu
B
guanxi
C
chaebol
D
blat
"Global Strategy" refers to

A
a particular theory on how to compete
B
offering standardized products and services on a worldwide basis
C
strategy of firms around the globe -- essentially various firms' theories about how to compete successfully
D
all of the above
Global strategies have reached new levels of significance because of three defining events:

A
education, fewer travel restrictions, and world banking
B
cultural diversity, world-wide education standards, and emerging nations
C
terrorist attacks, anti-globalization protests, and corporate crisis in Asia and the U.S.
D
expanding travel, shared sense of capitalism, and world standards for ethical behavior
A SWOT analysis entails a firm's assessment of ______

A
strengths, weaknesses, opposition, and threats
B
strengths, weaknesses, opportunities, and threats
C
strategy, weaknesses, opposition, and threats.
D
strategy, weaknesses. opportunities, and timing
At the dawn of the 21st century, ____ had significant ramifications for companies and strategists around the world.

A
anti-globalization protests
B
terrorist attacks
C
corporate governance crisis
D
all of the above
Knowing the concepts and components of global strategy will

A
improve job and career opportunities
B
build awareness of what is going on in the world
C
avoid the downside risks of globalization
D
all of the above
What is the best view of the concept of globalization?

A
A new force sweeping through the world in recent times
B
A long-run historical evolution since the dawn of human history
C
A pendulum that swings from one extreme to another from time to time
D
All of the above
In developing a strategy regarding competition or cooperation, it would be useful to not

A
"Look back, reason ahead"
B
strengthen capabilities that more effectively compete and/or cooperate
C
understand the rules of the game governing competition around the world
D
understand the nature of your industry
"The extent to which a given competitor possesses strategic endowment comparable, in terms of both type and amount, to those of the focal firm" refers to similarity of

A
strategy
B
resources
C
markets
D
industry
Which is not true concerning U.S. anti-trust policy today?

A
Legislation has legally permitted rivals to join hands in research and development (R&D)
B
There is increased permissiveness regarding mergers among rivals
C
The legal standards for inter-firm cooperation are no longer ambiguous in the U.S.
D
Clarity of policy has improved
Dumping is defined as

A
shipping hazardous waste to locations in other countries
B
an exporter selling below cost abroad and planning to raise prices after eliminating local rivals
C
unloading unsold inventory from the U.S. in other countries
D
excessive criticism of international rivals
In some industries where pressures for globalization are relatively low, local firms may possess some skills and assets that are transferable overseas, thus leading to a/an_____ strategy.

A
defender
B
extender
C
dodger
D
contender
The main types of attack include

A
thrust
B
feint
C
gambit
D
all of the above
Which of the following would not be considered an initial set of actions to gain competitive advantage:

A
counterattacks
B
advertising campaigns
C
market entries
D
price cuts
Which of the following is not a legal means of signaling?

A
Nonaggression or fat cat
B
Truce seeking
C
Direct discussion of reduced rivalry with competitors
D
Communication via governments
Which is true of strategy?

A
Business strategy has similarities with military strategy
B
Military principles cannot be completely applied in business
C
Militaries fight over territories, waters, and air spaces while firms compete in markets
D
All of the above
Which of the following is not an argument in favor of centralization in knowledge management but instead is an argument in favor of decentralization?

A
Capability to facilitate corporate-wide coordination
B
Consistency in decision-making
C
Permits greater speed, flexibility, and innovation
D
Sufficient power for corporate-level managers to initiate necessary actions
Unique to international competition are the pressures for local responsiveness, which are reflected in

A
consumer preferences
B
distribution channels
C
host country demands
D
all of the above
Four strategic choices for MNEs do not include

A
home replication
B
domestic
C
multi-domestic
D
transnational
The type of knowledge that is codifiable (that is, it can be written down and transferred without losing much of its richness) is called

A
explicit
B
implicit
C
tacit
D
lucid
Which is true of globalized R&D?

A
Is often known as innovation-avoidance expense
B
One way to access such a high technology and research-rich cluster is to avoid FDI
C
R&D work performed by different locations and teams around the world virtually guarantees failure
D
For large firms, there are actually diminishing returns for R&D
Knowledge management uses “centers of excellence” in which type of MNE?

A
home replication
B
localization (multi-domestic)
C
global standardization
D
transnational
Localization (multi-domestic) strategy involves all of the following except

A
focuses on a number of foreign countries/regions
B
global standardization strategy is the same as a multi-domestic strategy
C
is effective when there are clear differences among national and regional markets
D
a localization (multi-domestic) strategy has high costs
Pressures for cost reductions and local responsiveness include

A
the framework of how to simultaneously deal with these two sets of pressures
B
host country demands and expectations
C
being locally responsive makes local customers and governments happy but increase costs
D
all of the above
Which of the following is not an argument in favor of decentralization in knowledge management but instead is an argument in favor of centralization?

A
Better motivates subsidiary-level managers and employees through empowerment
B
Reduces corporate level overload of responsibilities
C
Better motivates subsidiary level managers
D
Sufficient power for corporate-level managers to initiate necessary actions
Which of the following is not an argument in favor of decentralization in knowledge management but instead is an argument in favor of centralization?

A
Better motivates subsidiary-level managers and employees through empowerment
B
Reduces corporate level overload of responsibilities
C
Better motivates subsidiary level managers
D
Sufficient power for corporate-level managers to initiate necessary actions
This structure is often used to supply customers (often other MNEs) in a coordinated and consistent way across various countries.

A
global account structure
B
an industry sector structure
C
solutions-based structure
D
all of the above
The differences in formal and informal institutions that govern the rules of the game in different countries include _______ differences.

A
Regulatory
B
Language
C
Cultural
D
All of the above
E
None of the above
As firms expand into more countries, they should recognize:

A
Foreign firms are still often discriminated against.
B
Foreign firms primarily deploy overwhelming resources and capabilities that offset the liability of foreignness.
C
Foreign firms are able to offset the liability of foreignness and still have some competitive advantage.
D
All of the above.
E
None of the above
Small firms in a large domestic market are referred to as:

A
Enthusiastic internationalizers.
B
Follower internationalizers.
C
Slow internationalizers.
D
Occasional internationalizers.
E
Domestic internationalizers.
Firms may choose not to enter certain countries if:

A
They possess rare firm-specific assets.
B
The transaction costs are too low.
C
There are dissemination risks.
D
There is an authorized diffusion of firm-specific assets.
E
All of the above.
Organizing firm-specific resources and capabilities as a bundle:

A
Favors firms with strong complementary assets.
B
Prevents having assets integrated as a system.
C
Discourages using them overseas.
D
Is counterproductive.
E
Occurs only in domestic markets.
Which of the following are not regulatory risks?

A
An obsolescing bargain.
B
Deals that have been struck by MNEs and host governments.
C
Nationalization.
D
Recent trends among host governments regarding their relationships with MNEs.
E
B and C above.
Which of the following exemplify trade barriers?

A
Tariffs.
B
Local content requirements.
C
Restrictions on certain entry modes.
D
A and C above.
E
All of the above.
The strategic goal of __________ involves going after countries that offer the highest price.

A
Natural resources seeking
B
Market seeking
C
Efficiency seeking
D
Innovation seeking
E
Profit seeking
First mover advantages do not include:

A
Developing proprietary, technological leadership.
B
Preempting scarce assets.
C
Establishing entry barriers.
D
Successful clashes with dominant firms in domestic markets.
E
Creating good relationships with key stakeholders.
Large-scale entries do which of the following?

A
Benefit from a strategic commitment.
B
Assure local customers and suppliers.
C
Deter potential entrants.
D
A and B above.
E
All of the above.
Non-equity modes of entry typically involve:

A
Exports and contractual agreements.
B
Larger, harder-to-reverse commitments.
C
Establishing independent organizations overseas.
D
Joint ventures (JVs).
E
Wholly owned subsidiaries.
All of the following are true of direct exports except:

A
Most basic mode of entry.
B
Capitalizes on economies of scale in production concentrated in the home country.
C
Affords better control over distribution.
D
The agendas and objectives of the intermediaries and exporters are the same.
E
Designs and productions geared for the domestic market first and foremost.
Selling the rights to intellectual property for a royalty fee is involved in:

A
Licensing/franchising.
B
Turnkey projects.
C
R&D contracts.
D
Co-marketing.
E
All of the above.
Sources of operational synergy include:

A
Technologies.
B
Marketing.
C
Manufacturing.
D
All of the above.
E
None of the above.
Diversification premium is the same thing as:

A
Conglomerate advantage.
B
Diversification discount.
C
Conglomerate disadvantage.
D
Level of product diversification.
E
Measurement of firm performance.
Which would be more characteristic of conglomerates?

A
“Putting one’s eggs in one basket.”
B
“Putting one’s eggs in similar baskets.”
C
“Putting one’s eggs in different baskets.”
D
A and B above.
E
B and C above.
Research regarding the relationship between product diversification and firm performance indicates that:

A
Performance may increase as firms shift from single business strategies to product-related diversification.
B
Performance may decrease as firms change from product-related to product–unrelated.
C
The linkage between diversification and performance is inverted U shaped.
D
“Putting your eggs in similar baskets,” has emerged as a balanced way to both reduce risk and leverage synergy.
E
All of the above.
Which geographic diversification is most likely to reduce the liability of foreignness?

A
Culturally adjacent countries.
B
Extensive international scope.
C
Beyond geographically neighboring countries.
D
Beyond culturally neighboring countries.
E
All of the above
In combining product and geographic diversification, which is not one of the four possible combinations?

A
Anchored replicators.
B
Multinational replicators.
C
Far-flung conglomerates.
D
Classic replicators.
E
Classic conglomerates
At its core, diversification is essentially driven by all of the following except:

A
Economic benefits.
B
Bureaucratic costs.
C
Synergy.
D
Less complicated information systems.
E
MEB.
Select the best choice: a company that is engaged in oil production, pipelines and tankers, refining, and gasoline stations has engaged in ______________ expansion.

A
Horizontal
B
Vertical
C
Conglomerate
D
Friendly M&A
E
Hostile M&A
Which is one motive for M&A which does not necessarily increase shareholder value?

A
Synergistic.
B
Hubris.
C
Performance.
D
A and C above.
E
None of the above.
Corporate scope is shaped by:

A
Industry conditions.
B
Firm capabilities.
C
Institutional constraints.
D
Opportunities in both developed and emerging economies.
E
All of the above.
Product-related diversification involves all of the following except:

A
A single business strategy.
B
Entries into activities that are related to a firm’s existing markets and/or activities.
C
The emphasis is on economies of scale rather than scope.
D
Increases in competitiveness.
E
Synergy.
The following managerial motives for conglomerations do not benefit shareholders except:

A
Norms.
B
Reducing managers’ employment risk.
C
Organizational stability.
D
Pursuing power, prestige, and income.
E
Empire building.
Which of the following is true regarding M&As?

A
As many as 70 percent of M&As reportedly fail.
B
On average, the acquiring firms’ performance improves after acquisitions.
C
Target firms, after being acquired and becoming internal units, often perform better than when they were independent, stand-alone firms.
D
The only identifiable losers are the shareholders of target (acquired) firms.
E
The outstanding success of M&As is due to pre- and post acquisition phases.
To ensure the success of the M&A, managers need to make sure of all the following except:

A
Be willing to walk out when premiums are too high.
B
Engage in adequate due diligence concerning strategic fit.
C
Seek organizational contrast and variety rather than organizational fit.
D
Address the concerns of multiple stakeholders.
E
Recognize that that integration management is a fulltime job.
Which is true regarding restructuring?

A
There are two primary ways of restructuring, namely downsizing and upsizing.
B
A rising level of competition within an industry normally prevents restructuring.
C
Corporate restructuring is not widely embraced around the world.
D
Restructuring is one of first things to consider when trying to improve profitability.
E
Restructuring is easier in knowledge-intensive firms than capital-intensive firms.
Which is true of relatedness?

A
Measurement of product relatedness is no longer debatable.
B
A “product-related” firm will be considered related regardless of the measure used.
C
Some argue that product relatedness refers specifically to the visible product linkages.
D
Relatedness can be a common underlying dominant logic that connects various businesses in a diversified firm.
E
Product-unrelated conglomerates may are not linked by institutional relatedness.