BZ480 Online Exam 5

Question-1
Which of the following terms refers to the basic means by which a company competes?

A. Mission
B. Procedure
C. Strategy
D. Process

Question-2
The primary motive in the contract manufacturing strategy is:

A. utilizing inexpensive overseas labor.
B. obtaining rights to patented technology.
C. sharing managerial expertise.
D. sharing financial resources.


Question-3
Which of the following statements is true of the strategic formulation process?

A. The global strategic formulation process is completely independent of the process followed in domestic companies.
B. The strategic formulation process is part of the strategic management process in which most firms engage, either formally or informally.
C. Strategic formulation consists of four defined stages that occur in a consecutive order.
D. Most firms operate on planning cycles of one or two years with periodic strategy reviews.

Question-4
Which of the following charts the direction of the company and provides a basis for strategic decision making?

A. Environmental assessment
B. Corporate structure
C. Organizational mission
D. SWOT analysis

Question-5
Restrictive trade barriers most likely influence the globalization of businesses by encouraging firms to:

A. develop joint ventures with local firms.
B. import supplies from foreign vendors.
C. expand the exportation of raw materials.
D. switch from exporting to overseas manufacturing.

Question-6
Dell is an American corporation that deals with computer technology. With its worldwide sourcing and fully merged production and marketing system, Dell is considered to be a:

A. greenfield investment.
B. turnkey operation.
C. shell corporation.
D. globally integrated company.

Question-7
Jamie decides to plan his strategies for starting an electric equipment manufacturing company. His main aim is to ensure that it runs efficiently. He decides to do this in two phases: the planning phase and the implementation phase. Which of the following processes is Jamie employing?

A. Retrenchment
B. Organizational restructuring
C. Strategic management
D. Globalization
Question-8
Which of the following is the most likely result of regulations and restrictions enforced by a firm's home government that prove to be expensive for the firm's operations?

A. The firm searches for less restrictive operating environments overseas
B. The firm responds to customers' demands more promptly
C. The firm becomes entangled in lengthy litigation
D. The firm expands its domestic operations

Question-9
Futura-Core Technologies, an electronics manufacturing firm, has advantages in financial capability and sustainability, but a disadvantage in speed of innovation. It is also at a disadvantage relative to Core-Dynamix Technologies, another electronics manufacturing firm, in important factors such as manufacturing capability and adaptability to market conditions. Which of the following terms best describes Futura-Core's abilities in comparison to Core-Dynamix?

A. Comparative advantage
B. Collective bargaining
C. Competitive advantage
D. Absolute advantage

Question-10
Due to the high demand for its handmade soaps in Canada, Fragrance Exotica, an Indian Soap manufacturer, has decided to open a new manufacturing unit in Canada, thereby expanding overseas. In this scenario, which of the following reasons prompted Fragrance Exotica to set up a manufacturing unit overseas?

A. Trade barriers
B. Manufacturer demands
C. Customer demands
D. Tax incentives

Question-11
Which of the following entry strategies is most likely to serve as a short-term strategy and to provide limited income?

A. Joint venture
B. Management contract
C. Offshoring
D. Fully owned subsidiary

Question-12
Which of the following would most likely be categorized as a global financial objective of an international firm?

A. Foreign-exchange management
B. Long-term profit growth
C. Quality and cost control
D. Company market share

Question-13
Which of the following strategies would a non-European company most likely use if it wanted to gain quick entry inside the European community?

A. International joint venture
B. Greenfield investment
C. Turnkey operation
D. Offshoring
Question-14
Which of the following is the most common reactive reason for a firm to extend its operations overseas?

A. Tax incentives
B. Economies of scale
C. Globalization of competitors
D. Resource access and cost savings

Question-15
At which three levels should firms ideally perform global environmental analysis?

A. Product, domestic market, and consumer
B. Multinational, regional, and local
C. Operational, tactical, and top management
D. Innovation, production, and local distribution

Question-16
Which of the following is the proactive reason that prompts firms to expand overseas?

A. Avoiding restrictive trade barriers
B. Solving logistics-related problems
C. Responding to foreign competition
D. Seeking economies of scale

Question-17
The first broad scan of all potential world markets should result in the firm being able to:

A. identify the strengths and weaknesses of its competitors.
B. eliminate markets with unreasonable entry conditions.
C. determine the best sources for raw materials.
D. eliminate countries with high cultural risk.

Question-18
Which of the following is a national risk with regard to strategic entry scanning?


Question-19
Which of the following is true with regard to direct coordinating mechanisms?


Question-20
According to David Lei, the single greatest impediment managers face when seeking to learn or renew sources of competitive advantage is that:


Question-21
Which of the following indicates a need for change in organizational design?


Question-22
Which of the following is true about the matrix structure of organizational design?


Question-23
Organizing for global product standardization requires __________, an especially difficult task for multiproduct companies.


Question-24
Which of the following primarily determines the extent of control exercised over an IJV by its parent company?


Question-25
Nimbus Inc. is a hybrid organization. The organizational structure of the company has been developed to combine geographic support for both global integration and local responsiveness. Nimbus is not a hierarchical organization and uses cross-functional teams to quickly adapt to the dynamic business environment.

If the above information is
true, which of the following can be fittingly inferred?


Question-26
Which of the following is true with regard to the global geographic structure?


Question-27
NextLinx Corporation provides a wide range of strategic implementation services for small- and medium-sized organizations. It allows all trading partners to collaborate in a single online location, using the same information and processes. Therefore, NextLinx is an example of a(n):


Question-28
Trout Corp., Kirgo Ltd., and Sturgeon Inc., three of the leading construction companies in the U.S., have decided to join hands and create a new cement manufacturing company. According to their agreement, Trout Corp. will have 50 percent equity, Kirgo Ltd. will have 20 percent equity, and Sturgeon Inc. will have 30 percent equity. In this given scenario, Sturgeon Inc. is referred to as a(n):


Question-29
In their rush to get on the globalization bandwagon, too many firms have:


Question-30
In order to minimize potential problems in alliances, companies should most likely choose partners with:


Question-31
International joint ventures are less likely to break up when:

Question-32
Overlooking cultural differences in cross-border alliances can create a negative impact when target country:


Question-33
Managers choose the manufacturing location for each product based on where the best combination of cost, quality, and technology can be attained in order to achieve:


Question-34
Papillion Inc. is a small American high-technology firm that has been successfully competing in the international business arena from its inception two years ago. Instead of internationalizing slowly, Papillion embarked upon an ambitious plan to leverage niche market opportunities worldwide—right from the beginning. Papillion Inc. exemplifies the __________ phenomenon.


Question-35
According to the __________ model, as the company becomes larger, more complex, and more sophisticated in its approach to world markets, it may evolve into a transnational corporation.


Question-36
All of the following are cooperative aspects of strategic alliances EXCEPT:



Question-37
In spite of the potential problems with local partners, many firms rush the process of partner selection because they:

A. want to reduce the amount spent on establishing subsidiaries abroad
B. want to take advantage of the local partner's technological innovations.
C. mostly aim at increasing the number of equity shares within a short period of time.
D. are anxious to get into an attractive market.

Question-38
The initial challenge in implementing strategies in emerging markets is likely to be how to:


Question-39
Offshoring provides the company with access to foreign markets while avoiding:


Question-40
Roch, a Swiss chocolate company, recently opened a manufacturing unit in Spain. The purpose of this move was that Roch wanted to avoid Spain's high import tariffs. Which of the following reasons prompted Roch to open the manufacturing unit in Spain?

ANSWER WILL BE SENT ON EMAIL.