Question 1

A strategic plan:

Accepted Answer

A)   will be prepared when the tactical plan is finalized.
B)   describes how the firm's goals will be met.
C)   contains sales forecasts and budgets.
D)   all of the above.
E)   two of A, B, and C.

Question 2

Value chain analysis is an assessment conducted on the chain of interlinked activities of an organization or set of interconnected organizations, intended to determine where and to what extent value is added to the final product or service.

Accepted Answer

A) True 
 B)False

Question 3

Tactical/operational plans are more detailed than strategic plans.

Accepted Answer

A) True 
 B)False

Question 4

Top management of companies generally accepts the fact that, to be effective, strategic planning processes should permit ideas to surface from anywhere in the organization and at any time.

Accepted Answer

A) True 
 B)False

Question 5

Plans for the best-or worst-case scenarios or for critical events that could have a severe impact on the firm are known as:

Accepted Answer

A)   scenario plans.
B)   strategic plans.
C)   contingency plans.
D)   emergency plans.
E)   none of the above.

Question 6

Because of the rapidity of changes in uncontrollable variables, many managers have turned to contingency plans, which are multiple, plausible stories for probable futures.

Accepted Answer

A) True 
 B)False

Question 7

A broad statement that defines the organization's purpose and scope is known as a:

Accepted Answer

A)   strategic plan.
B)   mission statement.
C)   vision statement.
D)   values statement.
E)   none of the above.

Question 8

Value chain linkages must be examined not merely across activities within the company but also in terms of managing relationships with external entities such as suppliers, alliance partners, distributors, or customers within and across nations.

Accepted Answer

A) True 
 B)False

Question 9

International firms have found it necessary to institute formal global planning:

Accepted Answer

A)   all of B, C, and
B)   to eliminate the practice of informal planning.
C)   to provide top management with a means to identify threats and opportunities worldwide.
D)   Both C and D are correct, so E is the appropriate answer.
E)   two of B, C, and D.

Question 10

Two prominent features of the strategic plan are sales forecasts and the mission statement.

Accepted Answer

A) True 
 B)False

Question 11

Scenarios:

Accepted Answer

A)   all of B, C, andD.
B)   have an objective of envisioning possible futures that might lie outside their traditional frame of reference.
C)   are based on stories about possible futures that are presented to line managers by the strategic planners.
D)   As stated directly in the text.
E)   two of B, C, and D.

Question 12

What is international strategy and why is it important?

Accepted Answer

Answers may vary, but they should includ...

Question 13

When developing and assessing strategic alternatives, it is important to remember that companies competing in international markets confront two opposing forces: reduction of costs and adaptation to local markets.

Accepted Answer

A) True 
 B)False

Question 14

A broad statement that defines the organization's scope is the mission statement.

Accepted Answer

A) True 
 B)False

Question 15

Global strategic plans help to ensure that decision makers have a common understanding of the business and think through the impact of their decisions and actions firmwide.

Accepted Answer

A) True 
 B)False

Question 16

Procedures:

Accepted Answer

A)   all of B, C, andD
B)   prescribe how certain activities will be carried out.
C)   are broad guidelines used to assist lower-level managers to handle recurring problems.
D)   Both B and D are correct, so E is the appropriate response.
E)   two of B, C, and D.

Question 17

Managers of international companies that are attempting to develop a competitive advantage face a formidable challenge because:

Accepted Answer

A)   all of B, C, and
B)   resources are always scarce.
C)   there are many alternative ways to use the company's scarce resources.
D)   As stated directly in the text.
E)   two of B, C, and D.

Question 18

To create a sustainable competitive advantage, an international company should try to develop competencies that are valuable, rare, difficult to imitate, and readily substitutable.

Accepted Answer

A) True 
 B)False

Question 19

To set corporate objectives, management must first:

Accepted Answer

A)   select a viable market segment.
B)   quantify them.
C)   define the firm's mission.
D)   research the market.
E)   none of the above.

Question 20

Repetition of the bottom-up or top-down planning process until all differences are reconciled is sequential planning.

Accepted Answer

A) True 
 B)False

Exam 9: International Competitive Strategy

What is international strategy and why is it important?

Correct AnswerverifiedAnswers may vary, but they should includ...View AnswerShow Answer

To set corporate objectives, management must first:

Correct AnswerverifiedShow Answer

Value chain analysis is an assessment conducted on the chain of interlinked activities of an organization or set of interconnected organizations, intended to determine where and to what extent value is added to the final product or service.

Correct AnswerverifiedShow Answer

Scenarios:

Correct AnswerverifiedShow Answer

A broad statement that defines the organization's purpose and scope is known as a:

Correct AnswerverifiedShow Answer

International firms have found it necessary to institute formal global planning:

Correct AnswerverifiedShow Answer

Top management of companies generally accepts the fact that, to be effective, strategic planning processes should permit ideas to surface from anywhere in the organization and at any time.

Correct AnswerverifiedShow Answer

To create a sustainable competitive advantage, an international company should try to develop competencies that are valuable, rare, difficult to imitate, and readily substitutable.

Correct AnswerverifiedShow Answer

Procedures:

Correct AnswerverifiedShow Answer

Global strategic plans help to ensure that decision makers have a common understanding of the business and think through the impact of their decisions and actions firmwide.

Correct AnswerverifiedShow Answer

A broad statement that defines the organization's scope is the mission statement.

Correct AnswerverifiedShow Answer

Managers of international companies that are attempting to develop a competitive advantage face a formidable challenge because:

Correct AnswerverifiedShow Answer

A strategic plan:

Correct AnswerverifiedShow Answer

When developing and assessing strategic alternatives, it is important to remember that companies competing in international markets confront two opposing forces: reduction of costs and adaptation to local markets.

Correct AnswerverifiedShow Answer

Two prominent features of the strategic plan are sales forecasts and the mission statement.

Correct AnswerverifiedShow Answer

Value chain linkages must be examined not merely across activities within the company but also in terms of managing relationships with external entities such as suppliers, alliance partners, distributors, or customers within and across nations.

Correct AnswerverifiedShow Answer

Tactical/operational plans are more detailed than strategic plans.

Correct AnswerverifiedShow Answer

Plans for the best-or worst-case scenarios or for critical events that could have a severe impact on the firm are known as:

Correct AnswerverifiedShow Answer

Because of the rapidity of changes in uncontrollable variables, many managers have turned to contingency plans, which are multiple, plausible stories for probable futures.

Correct AnswerverifiedShow Answer

Repetition of the bottom-up or top-down planning process until all differences are reconciled is sequential planning.

Correct AnswerverifiedShow Answer

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