MGMT 309 Chapter 6 | Questions with Verified Answers

MGMT 309 Chapter 6 | Questions with Verified Answers The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called ________. strategic planning Which of the following terms refers to the basic means by which a company competes? Strategy A company's choice to operate in a business or businesses and the ways in which it differentiates itself from its competitors is called its ________. Strategy Which of the following is the most common reactive reason for a firm to extend its operations overseas? globalization of competitors Restrictive trade barriers most likely influence the globalization of businesses by encouraging firms to ________. switch from exporting to overseas manufacturing 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? trade barriers 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? the firm searches for less restrictive operating environments overseas 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? customer demands Which of the following is the proactive reason that prompts firms to expand overseas? seeking economies of scale Which of the following is a reactive reason that prompts a firm to expand overseas? customer demands A country seeks new infusions of capital, technology, and know-how. It announces that it shall exempt taxes and grant concessions for foreign investors. Which of the following measures is the country employing? providing incentives When Disney decided to build a park in Paris, the French government gave Disney prime farmland just outside the city limits. This is most likely an example of a firm expanding overseas due to ________. provision of incentives Which of the following statements is true of the strategic formulation process? The strategic formulation process is part of the strategic management process in which most firms engage, either formally or informally. 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? strategic management Which of the following is the first step of the planning phase of a strategic management process? establishment of the company's mission The second part of the strategic management process involves the ________. implementation phase Which of the following would most likely be categorized as a global financial objective of an international firm? foreign-exchange management Which of the following charts the direction of the company and provides a basis for strategic decision-making? organizational mission Goals for market volume and profitability are usually set higher for international than domestic operations due to the ________. involvement of greater risks ________ includes environmental scanning and continuous monitoring to keep abreast of variables around the world that are pertinent to the firm. Environmental assessment Which of the following terms refers to the continuous process of gathering and evaluating information about variables and events around the world that may pose threats or opportunities to the firm? environmental assessment Which of the following is a global risk with regard to strategic entry scanning? economic and financial risk Which of the following is a regional risk with regard to strategic entry scanning? financial and currency instability Which of the following is a national risk with regard to strategic entry scanning? legal protection The process of gathering information and forecasting relevant trends, competitive actions, and circumstances that will affect operations in geographic areas of potential interest is called ________. environmental scanning At which three levels should firms ideally perform global environmental analysis? multinational, regional, and local The first broad scan of all potential world markets should result in the firm being able to ________. eliminate markets with unreasonable entry conditions Which of the following is a way in which formal institutions affect international competition? enforcing antidumping laws Which of the following is the most preferred source of environmental information for environmental scanning purposes in a firm? internal sources A(n) ________ determines which areas of a firm's operations represent strengths or weaknesses (currently or potentially) compared to competitors. internal analysis An internal analysis focuses on the company's ________. resources and operations ________ reveal an inefficient use of assets that restricts profitability. Financial ratios ________ are usually difficult for competitors to imitate and represent a major focus for strategic development at the corporate level. Distinctive competencies A ________ is an assessment of a firm's capabilities relative to those of its competitors as pertinent to the opportunities and threats in the environment for those firms. SWOT analysis 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? comparative advantage ________ refers to the establishment of worldwide operations and the development of standardized products and marketing. Globalization Which of the following is the quickest and cheapest way to develop a global strategy? strategic alliances Regional strategies are more appropriate than global strategies for firms that operate in ________. multidomestic industries Which of the following most likely encourages firms to localize? providing domestic subsidies 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 ________. globally integrated company According to Ghemawat, which of the following offers room for cross-border strategy to have content distinct from single-country strategy? semi-globalization Which of the following terms best describes a company that has operations in various countries, follows policies to develop local R&D to tailor products to markets, lets plants set their own rules, and aims at being a good corporate citizen in every country? GLOCAL ________ are companies that start out with a global reach, typically by using their Internet capabilities and also through hiring people with international experience and contacts around the world. Born globals