Tutorial 6

Which of the following is the first stage of the strategic management process?

• identification of core competency

• identification of value-creating activities

• formulation of strategies

• define/clarify mission and objectives

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

• solving logistics-related problems

• avoiding restrictive trade barriers

• responding to foreign competition

• seeking growth opportunities

Which of the following is a reactive reason that prompts a firm to expand overseas?

• seeking incentives

• seeking economies of scale

• globalization of competitors

• growth opportunities

In 2014, the Cuban government passed a law offering tax breaks for foreign companies planning joint ventures with Cuban companies or the Cuban state. This is most likely an example of a firm expanding overseas due to ________.

• globalization of competitors

• home country regulations

• provision of incentives

• restrictive trade barriers

Which of the following is the first step of the planning phase of a strategic management process?

• seeking alternative strategies using competitive analysis

• analysis of the firm's relative capabilities to deal successfully with the external environment

• assessment of the external environment that the firm will face in the future

• establish the company's mission and objectives

According to the CAGE Model, which of the following refers to the physical, communications, and transportation links between countries?

• cultural distance

• geographic distance

• economic distance

• administrative distance

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

• innovation, production, and local distribution

• product, domestic market, and consumer

• operational, tactical, and top management

• global, regional and national

As market globalization intensifies, ________.

• the distance between consumers worldwide expands

• firms internationalize solely as a reaction to it

• the gap between the rich and the poor shrinks rapidly

• individual firms respond to the challenges and new advantages that it brings

Goals for market volume and profitability are usually set higher for international than domestic operations due to the ________.

• presence of unstable market conditions

• presence of stable exchange rates

• involvement of greater risks

• fluctuating exchange rates

Which of the following is a relatively low risk way for a company to begin international expansion?

• licensing

• franchising

• exporting

• contract manufacturing