9. Strategic Methods

In which of the following circumstances might a business be experiencing economies of scale?

• Output falling & unit costs falling

• Output falling & unit costs rising

• Output rising & unit costs falling

• Output rising & unit costs rising

The following are all potential risks of a strategy of internationalisation, except which one?

• Exposure to political instability

• Reaching a wider customer base

• Loss of intellectual property

• Misunderstanding different cultures

According to the Bartlett & Ghoshal model, what international strategy is appropriate where there is high pressure for global integration and high pressure for local responsiveness?

• Global strategy

• Multi-domestic strategy

• Transnational strategy

• International strategy

What type of intellectual property protection would be most suitable for a business that wants to product its trading name and logo?

• Copyright

• Patent

• Domain name registration

• Trademark

The business philosophy of continuous improvement in working practices and efficiency is known as:

• Just-in-time

• Kaizen

• Quality assurance

• Quality control

The takeover by a supermarket chain of a key supplier is an example of:

• Conglomerate integration

• Horizontal integration

• Forwards vertical integration

• Backwards vertical integration

The first three phases in Greiner's Model of Growth are:

• Creativity, Direction, Delegation

• Direction, Delegation, Coordination

• Coordination, Collaboration, Alliances

• Creativity, Coordination, Alliances

A manufacturer decides to change the location of production from overseas back to its home country in order to improve quality and shorten lead times. This decision is known as:

• Offshoring

• Outsourcing

• Reshoring

• Backwards vertical integration

The process of turning “big data” into useful information for a business is known as:

• Customer transaction analysis

• Investment appraisal

• Enterprise resource planning

• Data mining

According to the concept of the experience curve, the businesses that are most likely to lower unit costs are:

• Manufacturing businesses

• Service sector businesses

• Market leaders

• New market entrants