Ch 11 Quiz Questions

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focus
answer

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.
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TRUE
answer

Support activities assist companies in performing their primary activities.
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primary activities
answer

According to value-chain analysis, inbound and outbound logistics are considered as ________.
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low-cost leadership strategy
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A business-level strategy in which a company exploits economies of scale is called a ________.
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TRUE
answer

Core competencies are developed by organizations over long periods of time.
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low-cost leadership strategy
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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
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global team
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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.
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planning
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________ is the process of identifying and selecting an organization’s objectives and deciding how the organization will achieve those objectives.
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international division
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A(n) ________ structure separates domestic from international business activities by creating a separate global branch with its own manager.
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FALSE
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The scope of a corporation’s operations refers to the size of its operations.
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TRUE
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A low-cost leadership strategy typically requires a company to have a large market share.
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international area
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An organizational structure that organizes a company’s entire global operations into countries or geographic regions is referred to as a(n) ________ structure.
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chains of command
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The lines of authority in an organization that run from top management to individual employees and specify internal reporting relationships is called ________.
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global matrix
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An organizational structure that splits the chain of command between product and area divisions is referred to as a(n) ________ structure.
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differentiation
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A ________ strategy is one in which a company designs its products to be perceived by buyers as unique throughout its industry.
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cross-functional
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________ teams can help break down barriers between departments and reorganize operations around processes in an organization.
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retrenchment
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The closing of TeleToys’ Australian men’s clothing line can best be described as a(n) ________ strategy.
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growth
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TeleToys recently opened eighteen new toy stores in Brazil. This move can best be described as a ________ strategy.
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True
answer

Decentralization can help foster participative management practices.
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Value-chain analysis
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________ is the process of dividing a company’s activities into primary and support activities and identifying those that create value for customers.
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Objectives become more precise at the level of individual departments.
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Which of the following statements is true of objectives?
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inbound logistics
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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?
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False
answer

A main goal of the global product structure is to bring together geographic and product area managers in joint decision making.
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international area
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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.
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global
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Offering the same products using the same marketing strategy in all national markets of an organization is referred to as a ________ strategy.
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low-cost leadership
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Decreasing levels of customer loyalty to an organization’s products is a major disadvantage of the ________ strategy.
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True
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A negative aspect of a low-cost leadership strategy is low customer loyalty.
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chains of command
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The lines of authority in an organization that run from top management to individual employees and specify internal reporting relationships is called ________.
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exploit scale economies in product development or marketing
answer

The main drawback of a multinational strategy is that it does not allow a company to ________.
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TRUE
answer

An international division structure reduces the authority of country managers in an organization’s subsidiaries.
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retrenchment
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A company that is closing factories with unused capacity and laying-off workers is most likely following a ________ strategy.
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centralized
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________ decision making occurs at a high organizational level in one location, such as an organization’s headquarters.
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FALSE
answer

An international area structure separates domestic from international business activities by creating a separate international division with its own manager.
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multidomestic
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A ________ strategy typically increases the cost structure for international companies and forces them to charge higher prices to recover such costs.
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significant price competition
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Global products are most commonly seen in industries where there is ________.
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TRUE
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A multinational strategy entails having a separate strategy for each nation in which a company markets its products.

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