IBT (FINAL)

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What is the difference between strategy formulation and strategy implementation?

•Strategy formulation is coming up with the plan, and strategy implementation is making the plan happen

What are the different levels of strategy?

•There are different forms of strategy. Business strategy, corporate strategy and international strategy.

On what two dimensions are all business strategies based?

All business strategies are based on two dimensions: differentiation and cost leadership.

6.What are the three ways in which geographic diversification can positively affect financial performance?

Diversification decisions impact financial outcomes through economies of scale or scope, and geographic expansion into new countries can impact profitability through economies of scale, scope, or cost reduction. Signup and view all the answers

To what level of strategy do outsourcing, offshoring, and international strategy belong?

•International strategy is a key feature of many corporate strategies. In some cases, international strategy takes the form of outsourcing or offshoring Signup and view all the answers

5.What are the three dimensions of corporate strategy and how are they different?

•All three of these business-level strategies involve choices related to differentiation and cost leadership. Corporate strategy can unfold in terms of vertical integration (or disintegration), horizontal integration (or disintegration), or geographic diversification. Signup and view all the answers

When should a firm choose the global strategy rather than a multidomestic strategy?

A global strategy, centralized and controlled by the home office, maximizes global efficiency, focusing on economies of scale and utilizing innovations developed at the corporate level or in other markets. Signup and view all the answers

How do the international strategies affect the trade-offs managers must make between local responsiveness and global efficiency?

Three strategies balance local responsiveness and global efficiency, requiring firms to leverage core competencies and create strategies that are challenging for competitors to replicate. Signup and view all the answers

How might a given country’s regulatory environment impact a firm’s international strategy?

Sometimes, firms expanding into new geographic markets find that they must adapt certain components of their strategies to accommodate local environments. Signup and view all the answers

What are the five facets of the strategy diamond?

•arenas, differentiators, vehicles, staging and pacing, and economic logic Signup and view all the answers

How does the strategy diamond capture a firm’s business strategy?

•All five facets are interrelated. When the five elements of strategy are aligned and mutually reinforcing, the firm is generally in a position to perform well. Signup and view all the answers

What are some of the strategy-diamond issues a good international strategy must address?

•The strategy diamond helps you develop international strategy, using three related questions: Do we need to expand outside our home country? If so, where should we expand? How should we expand? Signup and view all the answers

What are the management functions in the P-O-L-C framework?

•These functions are planning, organizing, leading, and controlling. Signup and view all the answers

How does the strategy diamond capture a firm’s corporate strategy?

The strategy diamond outlines a firm's business and corporate strategy in five facets: arenas, differentiators, vehicles, staging and pacing, and economic logic. Signup and view all the answers

Are there any criticisms of this framework?

Critics argue that P-O-L-C functions, while ideal, do not accurately depict the daily actions of actual managers. Signup and view all the answers

What function does planning serve?

Planning is the function of management that involves setting objectives and determining a course of action for achieving these objectives. Signup and view all the answers

What function does organizing serve?

Organizing is a management function that develops an organizational structure and coordinates human resources within that structure to achieve organizational objectives. Signup and view all the answers

What function does leading serve?

leading involves influencing and inspiring others to take action, with managers who lead well motivating their employees to work towards achieving organizational goals and objectives. Signup and view all the answers

What function does controlling serve?

•The controlling function requires monitoring performance so that it meets the performance standards established by the organization. Signup and view all the answers