Global Strategy Ch 1 Practice

• The following are the answers to the Global Strategy Ch 1 Practice 25 MCQ

Question 1

• Strategic management defines how a firm competes successfully from a "big picture" perspective.

Question 2

• Diversification is thought by Western media to destroy value in emerging economies.

Question 3

• The quality of management practices seems to correlate with the level of economic development globally.

Question 4

• According to A.G. Lafley, CEOs are primarily responsible for shaping the values and standards of the firm strategically.

Question 5

• The distribution of well-managed and poorly managed firms results in a bell curve.

Question 6

• GE's portable electrocardiograph machine, initially for India and China but now sold in the US at a lower price, exemplifies reverse innovation.

Question 7

• Viewing each country as a unique, somewhat isolated market is localization.
• Seeing market integration, albeit with barriers, that don't fully insulate markets is semiglobalization.

Question 8

• Foreign direct investment (FDI) includes a firm’s direct investment in production and/or service activities abroad.

Question 9

• BRIC refers to Brazil, Russia, India, and China.

Question 10

• The push for hyperglobalization between 1991 and 2008 led to a backlash against globalization in subsequent years.

Question 11

• The industry-based view primarily focuses on the opportunities and threats in a SWOT analysis.

Question 12

• Chandler advocated strategy as integration, where strategy integrates both planning and action.

Question 13

• The concept of strategy dates back to 500 B.C. and the work of the strategist Sun Tzu of China.

Question 14

• Those who view globalization as a "pendulum" realize the importance of risk management.
• Risk management aids in identifying, assessing, and minimizing the effects of unfortunate events.

Question 15

• One of the fundamental four questions when looking at strategy is, "Why do firms differ?"

Question 16

• Strategic managers look at how to acquire, leverage, and sustain competitive advantage over time to determine the success and failure of firms.

Question 17

• The school of thought viewing strategy as the outcome of rigorous formal planning is based on the work of Carl von Clausewitz, a Prussian military strategist

Question 18

• A first-century Roman emperor was the first to express concern about international competition from low-cost countries.

Question 19

• An advantage of “strategy as theory” is that it integrates both planning and action schools.

Question 20

• South Africa was added when the label BRIC was changed to BRICS.

Question 21

• The crafting of a firm's strategy is known as strategy formulation.

Question 22

• A resource-based view of strategy sees a firm’s success as primarily dependent on a firm’s strengths and weaknesses.

Question 23

• The authors promote the definition of "global strategy" as the strategy of firms around the globe, essentially various firms' theories about how to compete successfully.

Question 24

• In an institution-based view of strategy, the informal rules of the game need to be understood by firms.

Question 25

• The current era of globalization originated in the aftermath of World War II.