FINAL IMM

Strategic management can be defined as:

• a process of setting written long-term profit plans for the organization.

• a process of measuring performance of the organization.

• a process of operational planning.

• a process of setting long-term direction for the organization.

A global - as opposed to international - strategy involves:

• a wide variety of business strategies across countries.

• a single strategy for a subsidiary of a multinational firm.

• a single strategy for the entire global network of subsidiaries and partners.

• a wide variety of subsidiary strategies within the global network of subsidiaries.

Which of the following is NOT an example of a global strategy?

• The British subsidiary of global insurance group Aviva develops a new product for the UK market.

• IKEA sells standardized, Swedish designed, self-assembly furniture products at low price.

• LVMH sells luxury goods made in France.

• Walmart withdraws from Germany in order to avoid changing its global strategy of selling low-priced products.

Alan Rugman said that:

• Trade between nations is conducted at global and local levels.

• Most multinational firms have a global strategy.

• Most multinational firms have a local strategy.

• Most economic activity is regional - not global.

Which of the following is NOT a dimension of global strategy?

• Localization

• Coordination and configuration

• Standardization

• Integration

What three broad factors determine global strategy of multinational firms?

• Local globalizing drivers, industry globalizing drivers, internal globalizing drivers

• Cultural globalizing drivers, industry globalizing drivers, global orientation

• Industry globalizing drivers, internal globalizing drivers, global orientation

• Macro globalizing drivers, industry globalizing drivers, internal globalizing drivers

What are the four industry globalizing drivers?

• Market drivers, cost drivers, government drivers, and localization drivers

• Market drivers, cost drivers, government drivers, and competitive drivers

• Market drivers, cost drivers, competitive drivers, bargaining drivers

• Market drivers, cost drivers, competitive drivers, regionalization drivers

A global consumer culture means that:

• cultural traditions and values are converging around the world.

• consumers are becoming very similar around the world.

• there is a world-wide demand for the same global brands.

• national cultures are disappearing around the world.

Global economies of scale arise when:

• a product or a process can be globally performed using cheap labour.

• a product or a process can be performed more cheaply thanks to alliances with multinational firms in other sectors.

• a product or a process can be performed more cheaply at greater volume than at lesser volume.

• a product or a process can be performed more cheaply thanks to globally performed cross-business cost-saving activities.

Governments can encourage globalization of industries by:

• increasing tariffs and regulations

• creating common international technical standards

• subsidising domestic firms that expand internationally

• subsidising foreign firms that invest in their country