Ch 11 Quiz Questions – Flashcards
Unlock all answers in this set
Unlock answersquestion
A ________ strategy is one in which a company emphasizes on serving the needs of a narrowly defined market segment by being the low-cost leader, differentiating its product, or both.
answer
focus
question
Support activities assist companies in performing their primary activities.
answer
TRUE
question
According to value-chain analysis, inbound and outbound logistics are considered as ________.
answer
primary activities
question
A business-level strategy in which a company exploits economies of scale is called a ________.
answer
low-cost leadership strategy
question
Core competencies are developed by organizations over long periods of time.
answer
TRUE
question
Which of the following strategies works best for an organization that practices mass production and mass-marketing? a. differentiation strategy b. focus strategy c. low-cost leadership strategy d. retrenchment strategy
answer
low-cost leadership strategy
question
A team of top managers from both headquarters and international subsidiaries who meet to develop solutions to company-wide problems is referred to as a ________ team.
answer
global team
question
________ is the process of identifying and selecting an organization's objectives and deciding how the organization will achieve those objectives.
answer
planning
question
A(n) ________ structure separates domestic from international business activities by creating a separate global branch with its own manager.
answer
international division
question
The scope of a corporation's operations refers to the size of its operations.
answer
FALSE
question
A low-cost leadership strategy typically requires a company to have a large market share.
answer
TRUE
question
An organizational structure that organizes a company's entire global operations into countries or geographic regions is referred to as a(n) ________ structure.
answer
international area
question
The lines of authority in an organization that run from top management to individual employees and specify internal reporting relationships is called ________.
answer
chains of command
question
An organizational structure that splits the chain of command between product and area divisions is referred to as a(n) ________ structure.
answer
global matrix
question
A ________ strategy is one in which a company designs its products to be perceived by buyers as unique throughout its industry.
answer
differentiation
question
________ teams can help break down barriers between departments and reorganize operations around processes in an organization.
answer
cross-functional
question
The closing of TeleToys' Australian men's clothing line can best be described as a(n) ________ strategy.
answer
retrenchment
question
TeleToys recently opened eighteen new toy stores in Brazil. This move can best be described as a ________ strategy.
answer
growth
question
Decentralization can help foster participative management practices.
answer
True
question
________ is the process of dividing a company's activities into primary and support activities and identifying those that create value for customers.
answer
Value-chain analysis
question
Which of the following statements is true of objectives?
answer
Objectives become more precise at the level of individual departments.
question
Beanstalk International is a rapidly growing company with well-established subsidiaries in several nations. The company wants to follow a strategy of adapting its products and marketing activities in each national market to suit local preferences. This strategy aims at creating value for its customers. Which of the following is a primary activity that creates value for Beanstalk's customers?
answer
inbound logistics
question
A main goal of the global product structure is to bring together geographic and product area managers in joint decision making.
answer
False
question
A(n) ________ structure is best suited to companies that treat each national market as unique due to the vast cultural, political, or economic differences between nations.
answer
international area
question
Offering the same products using the same marketing strategy in all national markets of an organization is referred to as a ________ strategy.
answer
global
question
Decreasing levels of customer loyalty to an organization's products is a major disadvantage of the ________ strategy.
answer
low-cost leadership
question
A negative aspect of a low-cost leadership strategy is low customer loyalty.
answer
True
question
The lines of authority in an organization that run from top management to individual employees and specify internal reporting relationships is called ________.
answer
chains of command
question
The main drawback of a multinational strategy is that it does not allow a company to ________.
answer
exploit scale economies in product development or marketing
question
An international division structure reduces the authority of country managers in an organization's subsidiaries.
answer
TRUE
question
A company that is closing factories with unused capacity and laying-off workers is most likely following a ________ strategy.
answer
retrenchment
question
________ decision making occurs at a high organizational level in one location, such as an organization's headquarters.
answer
centralized
question
An international area structure separates domestic from international business activities by creating a separate international division with its own manager.
answer
FALSE
question
A ________ strategy typically increases the cost structure for international companies and forces them to charge higher prices to recover such costs.
answer
multidomestic
question
Global products are most commonly seen in industries where there is ________.
answer
significant price competition
question
A multinational strategy entails having a separate strategy for each nation in which a company markets its products.
answer
TRUE
