Pinnacle Inc. makes video editing hardware for the television

QUESTION 12

• Pinnacle Inc. makes video editing hardware for the television and movie industries. Their business comes primarily from the United States but they want to engage in foreign direct investment in India. Unfortunately, this industry is not well developed in India and the Indian labor force is not familiar with this type of manufacturing. Pinnacle’s best choice is

1 points

QUESTION 13

• Your company has recently developed a patented process that safely and cheaply makes pharmaceutical grade vitamins. You would like to expand your business overseas and are trying to decide on the best option. Many countries have poor patent protection and this patented process is your company’s most valuable asset. Additionally, acquisitions are dangerous due to a lack of transparency about the true state of the company. Your best strategy is

1 points

QUESTION 14

• Toyota matched their corporate strategy to produce reasonably priced high reliability vehicles using just in time inventory management in which necessary components were not acquired until needed. They also developed the philosophy of kaizen or continuous improvement in which all employees participate in finding production improvements.

1 points

QUESTION 15

• Tata motors in India recently acquired Jaguar and Land Rover from Ford for 1.7 billion dollars. The price was considerably lower than the price Ford had paid for these companies originally. These acquisitions allow Tata to grow quickly and gain access to luxury markets. Which is NOT a reason for the acquisition?

1 points

QUESTION 16

• Coca Cola is divided into five international divisions: Eurasia and Africa, Europe, North America, Latin America, and Pacific. They make over 3500 beverage products and 80% of their revenue comes from their beverage division. Their diversification and international strategy are:

1 points

QUESTION 17

• Revlon, best known as a cosmetics manufacturer also makes bath products, sunscreen and other non cosmetics. Approximately 69% of their revenue comes from their cosmetics. Further, Revlon receives 42% of their revenues from international sales. They operate wholly owned subsidiaries in Australia, South Africa, and the United Kingdom. Revlon can best be described as

1 points

QUESTION 18

• Goldman Sachs likes to acquire firms that they believe are undervalued. They hire a management team to oversee the acquisitions operations and make improvements to the new acquisition by injecting capital. When they feel that their acquisition is strong, they sell it off at a profit. This is an example of:

1 points

QUESTION 19

• You are contemplating opening a manufacturing plant in Nigeria. Labor is relatively cheap and you would have access to the African market through your presence on the continent. However, Nigeria has experienced government instability. Bribery has become a way of getting things done and the government has taken over three companies in the last ten years. You should:

1 points

QUESTION 20

• Your company has recently developed a patented process that safely and cheaply makes pharmaceutical grade vitamins. You would like to expand your business overseas and are trying to decide on the best option. Labor is relatively cheap overseas and most countries are happy to see foreign direct investment by American companies. Your products are basically the same for everyone since vitamins have value to people throughout the world. You would like to retain control over your operations however since the process is proprietary. Your best strategy and entry options are:

1 points

QUESTION 21

• As a research scholar, Joe had built a flying drone camera as part of his project. The flying drone camera could capture aerial images. Realizing the potential use of this product in movie production and military and rescue operations, he started a new venture where he could customize these flying drone cameras to fit the specific needs of the buyers and sell them. Joe can be best described as a(n)

1 points

QUESTION 22

• Which of the following is a competitive benefit experienced by the first mover firm in an industry?

1 points

QUESTION 23

• Jane Doe is the founder of a chain of coffee shops. She pays a fair price for her coffee beans even though she could pay less and uses some of the money to build roads and hospitals in poor regions where the beans come from. Jane's belief is that her company should be able to support the community at large. Which of the following terms best describes Georgia Ray?

1 points

QUESTION 24

• The market for holographic phones is in the introduction stage of the industry life cycle. What does this imply?

1 points

QUESTION 25

• IMFriends is an instant messaging application for smartphones. New smartphone users find it easier to connect with friends and relatives through this mobile app when compared to other similar instant messaging applications. Hence, it has the largest user base in the industry. Thus, MFriendsapp's value has increased primarily due to its

1 points

QUESTION 26

• Which of the following best illustrates a process innovation as opposed to product innovation?

1 points

QUESTION 27

• While cell phones with holographic keyboards are currently in the introduction stage of the industry life cycle, tablet computers are in the growth stage. In the context of this scenario, which of the following statements is true?
• A.
• The industry for cell phones with holographic keyboards will face greater competition than the tablet industry
• B.
• The industry for cell phones with holographic keyboards will face price competition, whereas, in the tablet industry, the mode of competition will be non-price.
• C.
• While the industry for cell phones with holographic keyboards will focus on product innovation, the tablet industry will focus on process innovation.
• D.
• While the industry for cell phones with holographic keyboards can reap the benefits of economies of scale, the tablet industry will experience no such benefits.