International Strategic Management: Planning Process Quiz

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What is the primary goal of a global strategy?

To create standardized goods and services that will address the needs of customers worldwide for global efficiencies.

Which strategy combines the benefits of global scale efficiencies with the benefits of local responsiveness?

Transnational strategy

What is the main characteristic of a multi domestic strategy?

The firm has a collection of independent operating subsidies, each focusing on a specific domestic market.

Which company is an example of using the home replication strategy?

Mercedes Signup and view all the answers

Name a company that follows the multidomestic strategy by meeting the specific needs of local customers.

Unilever Signup and view all the answers

What are the complexities that international strategic management aims to address?

Governments, currencies, accounting systems, legal systems, languages, and cultures. Signup and view all the answers

What is the primary focus of the home replication strategy?

To take its domestic way of doing business and use it in foreign markets. Signup and view all the answers

In the global strategy, what is the view of the market?

The market is viewed as a global one with no home country bias. Signup and view all the answers

What are the components of international strategy mentioned in the text?

Distinctive competence, scope of operations, and resource deployment. Signup and view all the answers

What is the first step in developing international strategies according to the text?

Mission statement Signup and view all the answers

What are the levels of international strategy mentioned in the text?

Corporate strategy, business strategy, and functional strategy. Signup and view all the answers

What is the focus of the differentiation strategy in business strategy?

To create an image that SBU products or services are unique from others in the same market segment. Signup and view all the answers

What is the main emphasis of cost leadership strategy in business strategy?

To have highly efficient operating procedures and lower costs than competitors. Signup and view all the answers

What are the functional strategies mentioned in the text?

Finance, Marketing, Operations. Signup and view all the answers

What is the difference between home replication strategy and global strategy?

Home replication strategy replicates domestic way of doing business in foreign markets, while global strategy views the market as a global one without home country bias. Signup and view all the answers

What is the responsibility of a single manager in the transnational strategy of Ford motor company?

Responsible for global engine and transmission development. Signup and view all the answers

What are the decision factors for mode of entry into foreign markets?

Ownership advantages, Location advantages, Internalization advantages, Specialized modes Signup and view all the answers

What are the two types of exporting mentioned in the text?

Indirect exporting and Direct exporting Signup and view all the answers

What is intra-corporate transfer in the context of international business?

Sale of goods by a firm in one country to an affiliated firm in another Signup and view all the answers

What are the costs, benefits, and risks associated with entering a new foreign market?

Costs: direct costs, Opportunity costs, Benefits: profit potential, Risks: limited profit, knowledge exploitation Signup and view all the answers

What are the factors to assess in foreign market analysis?

Market potential, Level of competition, Legal and political environment, Sociocultural influences Signup and view all the answers

What are the different modes of entry into foreign markets mentioned in the text?

Exporting, International licensing, International franchising, Foreign direct investment Signup and view all the answers

What are the advantages and disadvantages of exporting as a market entry strategy?

Advantages: Low financial exposure, gradual market entry, knowledge acquisition, and avoidance of investment restrictions. Disadvantages: Vulnerability to tariffs and nontariff barriers, logistical complexities, and conflicts with distributors. Signup and view all the answers

Explain the benefits and drawbacks of licensing as an international market entry method.

Benefits: Low financial risk, avoidance of trade barriers, local market knowledge acquisition. Drawbacks: Competitive issues, limited growth opportunities, and conflicts with the licensee. Signup and view all the answers

What are the advantages and disadvantages of franchising as an entry strategy into international markets?

Advantages: Low financial risk, avoidance of trade barriers, more control, and shared revenue. Disadvantages: Limited growth opportunities and conflicts with franchisees. Signup and view all the answers

Explain the benefits and challenges of contract manufacturing as an international market entry approach.

Benefits: Minimized resources, reduced control, and learning opportunities. Challenges: Competitive issues, reduced learning, and conflicts with the contracting party. Signup and view all the answers

What are the advantages and disadvantages of management contracts in international business?

Advantages: Focus on expertise, low financial exposure, and knowledge transfer. Disadvantages: Limited returns, operational and financial risks, and high managerial complexity. Signup and view all the answers

Discuss the advantages and disadvantages of turnkey projects as a method of entering international markets.

Advantages: Focus on expertise, avoidance of trade barriers, and high profit potential. Disadvantages: Construction and operational risks, high managerial complexity, and exposure to restrictions. Signup and view all the answers

Explain the advantages and disadvantages of Foreign Direct Investment (FDI) using the Greenfield strategy.

Advantages: Focus on expertise, low financial exposure, and knowledge transfer. Disadvantages: High construction and operational risks, exposure to restrictions, and high managerial complexity. Signup and view all the answers

What are the benefits and drawbacks of Foreign Direct Investment (FDI) through the acquisition strategy?

Benefits: Immediate market presence, avoidance of market entry barriers, and existing infrastructure. Drawbacks: Acquisition and operational risks, financial exposure, and high managerial complexity. Signup and view all the answers

Discuss the advantages and disadvantages of Foreign Direct Investment (FDI) through joint ventures.

Advantages: Shared resources, local market knowledge, and risk sharing. Disadvantages: Control issues, limited growth opportunities, and conflicts between partners. Signup and view all the answers

What are the benefits and limitations of focusing on specialized modes of international market entry?

Benefits: Reduced financial exposure, knowledge transfer, and focusing on expertise. Limitations: Operational and financial risks, control issues, and conflicts with partners. Signup and view all the answers