Strategic Management

A global market is:

• Indoor or outdoor structure where you can buy products and service from all around the world

• Institutional structure that permit people and organizations to exchange goods, service and labor

• A set of international agreements between global companies to exchange goods, service and labor

• Lidl

Try to guess: in 2010, which was the global company with more stores in the world?

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Companies in global competition have

• Plants located on the basis of maximum competitive advantage for the products and service and use the same approach and coordination between national strategies

• Plants widespread across many home countries (each producing products and service) and use the same approach and coordination between national strategies

• Plants located on the basis of maximum competitive advantage for the products and service and use different approaches and strategies in different national markets

• Plants widespread across many home countries (each producing products and service) and use different approaches and strategies in different national markets

Choose the right answers (2)

• Exporters benefit when the currency of the country where the outputs are produced gets weaker. Domestic firms, who face the pressure of low cost importation, benefit from the weakening of their currency compared to currency of countries where imported goods are produced.

• Domesitc firms benefit from the weakening of their currency compared to currency of countries where imported goods are produced

• Exporters benefit when the currency of the country where the outputs are produced increases

• Domestic firms are weakened when their currency, compared to currency of countries where imported goods are produced, increases

With franchising strategy:

• Firms make their product and services in its home country to export them to foreign markets

• Foreign companies are allowed to use the company’s technology or to produce and distribute the company’s products and service

• A separate organization operates the business with the name of another company, in exchange for money

Activities should be dispersed when:

• Certain locations have: superior resources and allow better coordination of related activities

• They need to be performed close to buyers

• Costs of manufacturing or other value chain activities are meaningfully lower in certain locations than in others

• There are sizable scale economies in performing the activity

A profit sanctuary is:

• A global market about religious products and services

• A national market (or geographic area) where the firm profit all its revenues

• A managers' prayer to earn as much as possible

• A national market (or geographic area) where the firm profit largely because of its strong market positions

A dumping policy consists in

• Selling at low prices in foreign competitor’s markets for the pursose of take over foreign markets

• A strategy to attack profit sanctuaries of foreign competitors

• A policy adopted by governments to regulate prices of imported goods

• A complex networks of laws about working conditions

What are the 4 P?

• Price, Promotion, Place, Profit

• Price, Place, Promotion, Prince

• Price, Promotion, Product, Place

• Pizza, Poker, Party, Pasta