ONLINE TEST :4 STRATEGY DEVELOPMENT IN IB

In the context of value chain analysis, the primary activities of a firm include:

• A) R&D, human resources, materials management, and production

• B) service, human resources, production, and materials management

• C) company infrastructure, information systems, human resources, and materials management

• D) R&D, production, marketing & sales, and service

Global expansion allows firms to achieve all of the following except _______________________.

• A) minimize returns by failing to capture skills developed in foreign countries

• B) realize location economies by dispersing value creation activities on the optimal location

• C) realize cost economies from experience effects generated by serving a larger market from a central location

• D) expand the market for their domestic product offerings by selling those products in international markets

A firm that is positioned in the upper left hand corner of the cost reductions/local responsiveness grid is facing

• A) high pressure for local responsiveness and high pressure for cost reductions

• B) low pressure for local responsiveness and high pressure for cost reductions

• C) high pressure for local responsiveness and low pressure for cost reductions

• D) low pressure for local responsiveness and low pressure for cost reductions

Firms such as Intel or Texas Instruments that produce products serving universal needs follow a _______ strategy.

• A) global standardization

• B) localization

• C) international

• D) transnational

Apple Inc. suit with strategy _____________

• international

• global standardization

• localization

• transnational

What is contract manufacturing

• The company manages its entire value chain in the foreign market except for contracting logistics

• When a local (foreign) lawyer helps prepare contracts with agents or distributors

• The production is made by a foreign firm; the rest of the value chain is taken cared of by the company itself

• When a foreign firm decides to outsource its down-stream functions to an external partner

When working with Franchising and/or Licensing the difference is that

• When licensing the foreign firm does not handle marketing

• When licensing the foreign firm handles marketing

• When franchising the foreign firm does not handle marketing

• When franchising the foreign firm does not handle marketing

Which mode is franchising

• Export mode

• Intermediate mode

• Hierarchical mode

What does Ethnocentric orientation mean

• The company views regions as unique and seeks to develop an integrated regional strategy

• The company assumes that its home country is superior to the rest of the world

• The company views the entire world as a potential market and strives to develop integrated world market strategies

• The company assumes that each country in which the company does business is unique

What term could refer to an equity partnership between two or more partners

• X coalition

• Y coalition

• Joint venture

• Licensing