IBU643 Global Strategy Midterm Exam

A cooperative agreement between two or more firms to pursue a set of agreed upon strategic goals while remaining independent organizations, is called.

Capital venture

Foreign direct investment

Independently owned organizations

Strategic alliances

Question 2 In 1980's American multinational firm, Xerox managers were convinced that Canon, Japanese rival, sold copiers below production cost to gain high market share. Xerox managers travelled from the United States to Japan. During their stay in Japan, Xerox managers dismantled a Canon copier and found that it was not only cheaper to make but also of a higher quality than Xerox products. Subsequently, Xerox imitated Canon's materials and methods in order to improve the quality and lower the cost of its own products. This is an example of;

Imitability

Competitor intelligence

Benchmarking

Internal competitive analysis

Question 3 7-Eleven stores are an example of;

Licensing

Internationalizing

Franchising

Independently owned stores

Question 4 Dynamic capabilities refer to:

the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments.

the link between subsidiary resource and multinational firm's competitive advantage in global markets.

the firm's dynamic capability to find resources that are valuable, rare, difficult to imitate and can be exploited by the organization.

the combination of individual technologies and production skills that underlie a company's multiple production lines and critically underpin the firm's competitive advantage.

Question 5 Phases of global strategy:

Single-country strategy

Export strategy

International strategy

Global strategy

All of the above

Question 6 The Sydney-based Proteome Systems, Tyran Diagnostics, has quickly realized that it could not achieve its objectives without forming global strategic alliances. Tyran Diagnostics is an example of;

An international firms using strategic alliances

Wholly-owned venture

Born global firms

A firms utilizing the mergers and acquisitions strategy

Question 7 In an international strategy:

Strong coordination is not required from the center

Believes that the subsidiary should respond to local business needs

Gives subsidiaries the independence to plan and execute competitive moves independently

All of the above

Question 8 Alan Rugman said that:

Trade between nations is conducted at global and local levels.

Most multinational firms have a global strategy.

Most multinational firms have a local strategy.

Most economic activity is regional . not global.

Question 9 Michael Porter has argued that:

the logic of old economy strategies remains the same for internet-based companies.

the internet did not bring new types of products/services or large efficiency gains.

the internet does not matter to global competition.

the internet does not help to improve company operations.

Question 10 The idea of a Double Diamond suggests that managers of a multinational firm based in a small country should:

no longer pay attention to home demand and factor conditions.

develop corporate strategies around global products and services targeted at niche markets.

assess the conditions of competitiveness in both their home country and the large neighboring country when developing corporate strategies.

move their corporate headquarters from their home country to the large neighboring country.

Question 11 Which one of the following is an example of political environment

 

Social changes

Currency exchange rates

Regional Integration

The knowledge-based economy

Question 12 Which of the following is NOT an example of barriers to entry?

Buyer switching costs

Economies of scale

Product differentiation

Expected retaliation

Question 13 Identifying firms with similar strategies or those competing on similar bases is called:

Firm strategic analysis

Competitive market analysis

Strategic group analysis

None of the above

Question 14 Which multinational firm pioneered the use of scenarios?

British Airways

Shell

Hewlett Packard

Sony

Question 15 An approach that assumes that a firm can use superior resources and capabilities to modify the industry structure and/or change the rules of the competitive game.

Positioning perspective

Strategic fit

Strategic stretch

Resource-based perspective

Question 16 Google sought business partners and advertising clients to boost its revenues. The company refuses to compromise Google's search usefulness in pursuit of profits. In contrast to its chief rival, Yahoo, Google refuses to charge for search inclusion. Google charges only for paid searches, but those results are separate from its main search results and clearly differentiated for users.

Google is focusing on the external business environment

Google focuses on how a firm can leverage its resources

Google focuses on what the competitors do

Google focuses on what stakeholder do and expect

Question 17 What does VRIO stand for

Value, Rarity, Imitability, Opportunity

Value, Rarity, Imitability, Organization

Value, Resources, Imitability, Opportunity

Value, Resources, Imitability, Organization

Question 18 Strategic management can be defined as:

a process of setting written long-term profit plans for the organization.

a process of measuring performance of the organization.

a process of operational planning.

a process of setting long-term direction for the organization.

Question 19 The probability and consequences of not having satisfactory cooperation refers to;

Performance risk

Strategic alliance lack of trust

Relational risk

None of the above

Question 20 French legislature passed the Royer Law to:

Restrict phishing law

Restrict French stores from entering to international market

Restrict foreign stores to enter to French market

Restrict the introduction of more hypermarkets

Question 21 On which of the following entry modes the market commitment is higher;

Exporting

Licensing

Franchising

Direct Investment

Question 22 The Uppsala Model can help to understand:

a firm's initial choice of international location and its mode of entry into foreign markets.

a firm's level of psychic distance and its ability to invest in distant foreign markets.

the role of psychic distance and internationalization stimuli in the international expansion of firms.

a firm's ability to overcome the liability of foreignness in its international expansion.

Question 23 Fiat is a good example of

Capital venture

Foreign direct investment

Green field investment

Strategic alliances

Question 24 What is the most frequent internal motive for a strategic alliance?

Resource need

Risk limitation

Cost minimization

Current poor performance

Question 25 The difference between the cost of inputs and the market value of outputs

Value chain

Value system

Value added

None of the above

Question 26 Multinational Firms are:

Firms that manufacture and market products services in several countries

International subsidiaries that act independently and operate as if they were local companies

Moving from an international strategy to a global strategy

Carefully crafted single strategy for the entire network and subsidiaries and partners, encompassing many countries simultaneously

Question 27 Managers from which culture see an external event as threats.

Relatively high propensity cultures, such as Japan and Spain

Managers from Muslim cultures with a high collectivistic culture such as Saudi Arabia

Relatively high readiness to take risks cultures, such as United States and Britain

Managers from Scandinavian cultures with an individualistic cultural background

Question 28 Successful strategy matching the resources and activities of a firm to the external environment in which the firm operates is known as:

Firm performance

Strategic Fit

Firm specific strategies

Resource based strategies

Question 29 Identifying similarities and differences between groups of people who buy and use your goods and services is called:

Strategic group analysis

Market segmentation analysis

Consumer market analysis

Target market analysis

Question 30 Horizontal and Vertical are types of:

Greenfield strategy

Licensing and franchising

Mergers and acquisitions

Greenfield investments

Question 31 What are the three determinant factors that a multinational firm adopts a global strategy, please explain

Question 32 What are cost globalization drivers, please provide example

Question 33 What does PEST stand for? Please give examples for each factor.

Question 34 What are the four characteristics of porters diamond model, please explain.

Question 35 What is the “Five Forces Model”; please provide a short explanation along with an example for each force

Question 36 What are four stages of Product Life Cycle? Provide an example

Question 37 What are five phases of the International Product Life Cycle?

Question 38 Explain what value chain depicts and please give example of companies who have used the new value system

Question 39 What are the two market commitment factors, please explain

Question 40 Please explain the six types of alliances with an example for each.