CHP 10

Question 1

What must firms do to succeed globally?

Answer 1

quickly identify and exploit opportunities wherever they occur, domestically/internationally

Question 2

What must managers understand to deal with competition?

Answer 2

company mission, vision to achieve mission, strengths and weaknesses to deal with competition

Question 3

The way firms make choices about developing/deploying scarce resources internationally?

Answer 3

International Strategy

Question 4

To be effective, a company’s international strategy needs to be?

Answer 4

consistent among various functions, products, and regional units (internal Consistency) and with the demands of the international competitive environment (external consistency)

Question 5

What is Global Strategic Planning?

Answer 5

organization determines where it is going in the future, how to get there, and how it will asses whether and to what extent it has achieved goals

Question 6

What is strategic plans intended to?

Answer 6

increase the likelihood of innovations, promoting development, capture, and application of new ideas in order to promote success in a challenging competitive environment

Question 7

What are the 7 processes providing a formal structure to the Global Strategic planning?

Answer 7

(1) analyzing a firm’s external environments
2) analyzing a firm’s internal environments
(3) defining a company’s business and mission
(4) setting corporate objectives
(5) quantifying goals
(6) formulating strategies and
(7) making tactical plans.

Question 8

Analyzing Domestic, International and Foreign Environments, managers must…

Answer 8

know present value of the forces, where the forces appear to be headed and develop/implement appropriate responses

Question 9

Who provides input to the planning staff and prepares a report for the strategy planning committee?

Answer 9

Manager of various functional areas

Question 10

What is a value chain analysis?

Answer 10

Assessment conducted on the set of interconnected organizations, intended to determine where and to what extent value is added to the final product or service

Question 11

What are the 3 key questions to consider about the business when conducting a value chain analysis?

Answer 11

1. Who are the company’s target customers?
2. What value does the company want to deliver to these customers?
3. How will this customer value be created?

Question 12

What is increasingly recognized as the basis for competitive advantage?

Answer 12

Knowledge

Question 13

Firms face ongoing ____ of creating mechanisms that will _____ and routinely identify _____ for developing and _____ knowledge throughout international operations

Answer 13

Challenges; systematically; opportunities; transferring

Question 14

Firms face ongoing challenges for ensuring that _____ are willing and able to both ____ what they know and to ____ knowledge from other units of the company

Answer 14

Subsidiaries: Share: Absorb

Question 15

What is Knowledge Management?

Answer 15

Practices that organizations and managers use to identify create, develop, share and exploit valuable knowledge.

Question 16

Much valuable knowledge is? and explain

Answer 16

Tactic- known well by individuals but difficult to express verbally/document)

Question 17

Additional knowledge is?

Answer 17

Implicit

Question 18

What broad statements help communicate to the firm’s stakeholders what the company is and where it expects to go?

Answer 18

Mission, Vision and Values statements

Question 19

What is a Mission Statement?

Answer 19

defines firm’s purpose and scope

Question 20

What is a Vision Statement?

Answer 20

describes desired future position, what it hopes to accomplish if it can acquire needed competencies and successfully implement its strategy

Question 21

What is Values Statement?

Answer 21

clear, concise description of the fundamental values, beliefs, and priorities of the organization’s members

Question 22

What directs the firm’s course of action, maintain it within the boundaries of the stated mission, and ensure its continuing existence?

Answer 22

Set Corporate Objectives

Question 23

If objectives can be ____, they should be.

Answer 23

Quanrified

Question 24

Firms frequently do have __-_____ or directional goals

Answer 24

Non-quantifiable

Question 25

What are the 2 opposing forces companies competing internationally confront?

Answer 25

Reduction of Cost and adaptation to local markets

Question 26

As a consequence of the two opposing pressures, companies have 4 basic strategies for competing internationally: what are they?

Answer 26

1. Home Replication Strategy 2. Multi-domestic Strategy 3. Global Strategy 4. Transnational Strategy

Question 27

The strategy that would be most appropriate for the company depends on?

Answer 27

the amount of pressure the company faces to adapt to local markets and achieve cost reductions

Question 28

What is Home Replication Strategy?

Answer 28

centralizes product development strategy in the home country, after differentiated products are developed they transfer abroad to capture additional value

Question 29

When is Home Replication Strategy the best choice?

Answer 29

if there is weak/low pressure for local responsiveness and cost reduction

Question 30

What is a disadvantage to Home Replication Strategy?

Answer 30

can cause high operating costs b/c of duplicate manufacturing facilities across markets served

Question 31

What is Multi-domestic strategy?

Answer 31

Decision-making is decentralized to allow the company to modify its products and respond to changes in local competition and demand

Question 32

When is Multi-domestic strategy used?

Answer 32

where there is strong pressure to adapt products/services for local markets and low pressure to reduce costs

Question 33

In a Multi-domestic strategy; By tailoring products for specific markets, companies may charge ____ prices

Answer 33

higher

Question 34

What does local adaptation do to cost structure?

Answer 34

increases

Question 35

What are the disadvantages to Multi-domestic strategy?

Answer 35

local adaptation may change over time cost and complexity of coordinating a range of different strategies and product offerings across national/regional markets can be high

Question 36

What is Global strategy?

Answer 36

Strategy and decision making is typically centralized, and company offers standardized products/services

Question 37

When is Global Strategy used?

Answer 37

when a company faces strong/high pressure for reducing costs and limited/low pressure to adapt products for local markets

Question 38

In Global strategy; Value chain activites are located in only one/few areas to achieve what?

Answer 38

economies of scale

Question 39

Emphasis is on close _____ and ____ of activities across products and markets in Global Strategy

Answer 39

Coordination and integreation

Question 40

What are some disadvantages to Global Strategies?

Answer 40

limited ability to adjust to changes in customer needs, increased transportation and tariff costs from exporting, and risks of locating activities in a centralized location

Question 41

What is Transnational Strategy?

Answer 41

Neither highly centralized nor widely dispersed

Question 42

When is Transnational Strategy used?

Answer 42

High pressure for cost effectiveness and local adaptation

Question 43

In Transnational Strategy, the location of a company's assets and capabilities is based on?

Answer 43

Where it would be most beneficial for each specific activity

Question 44

_____ value chain activities are more centralized, in transnational strategy

Answer 44

"Upstream"

Question 45

_____ activities are more decentralized, located closer to the customer

Answer 45

"Downstream"

Question 46

In Transnational Strategy, Managers must ensure that comparative advantages of the locations of their various value chain activities are?

Answer 46

captured and internalized

Question 47

What is a disadvantage in Transnational strategy?

Answer 47

Complexity of strategic decisions and supporting structures and systems of the organization will be much greater

Question 48

T/F...All organizational activities face the same mix of globalization and localization pressures

Answer 48

False

Question 49

What do many top executives believe about marketing strategies?

Answer 49

are best determined locally b/c of local environmental differences

Question 50

What are Scenarios?

Answer 50

Multiple, plausible stories about the future

Question 51

What do Scenarios allow?

Answer 51

managers to envision alternatives outsider their traditional frame of reference

Question 52

What is Contingency Plans?

Answer 52

companies prepare contingency plans for worst and best case scenarios

Question 53

Prepare Tactical plans is also called?

Answer 53

Operational

Question 54

What is it to prepare tactical plans?

Answer 54

spell out in detail how the objectives will be reached

Question 55

What do Sales forecasts and budgets do?

Answer 55

they are two prominent features of the strategic plan, and both a planning and control technique

Question 56

What is a Sales Forecast?

Answer 56

prediction of future sales performance

Question 57

What is a Budget?

Answer 57

itemized projection of revenues and expenses for a future period

Question 58

What are the 2 most important Plan implementation facilitators?

Answer 58

Polices and procedures

Question 59

What are policies?

Answer 59

broad guidelines issued by upper managment to assist lower level managers to handle recurring problems

Question 60

What are procedures?

Answer 60

describe how certain activities will be carried out, ensuring uniform action throughout the firm

Question 61

How many ways are there to measure if a strategy is proceeding successfully or needs modification?

Answer 61

3 ways called Performance Measures

Question 62

What are the 3 types of performance measures?

Answer 62

1. Success in obtaining and applying required resources 2. Effectiveness of company's personnel performance 3. Progress toward achieving mission, vision, and objectives in consistent manner in line with company's values

Question 63

What are some measurement tools?

Answer 63

Balanced scorecard and triple-bottom-line accounting

Question 64

Time Horizon is a Kind of Strategic plan, Defined in...

Answer 64

Short, Medium, and long term

Question 65

There are 3 methods of Planning; what are they?

Answer 65

Top-Down- corporate headquarters develops and provides guidelines Bottom-up- lowest levels inform top management of what they expect to do Iterative- combines aspects of Top-down and bottom up plannnig

Question 66

Strategic managment has replaced older planning processes and changes have been made in three areas; what are they?

Answer 66

1. Who does the planning 2. How it is done 3. Contents of Plan