Q1: Functional benchmarking involves
Answer: benchmarking organizations with regards to specific business activities or processes.Answer
Q2: Internationalization stimuli refer to
Answer: internal and external factors that influence a firm’s decision to initiate, develop, and sustain international business activities.Answer
Q3: First mover advantage suggests that
Answer: pioneering businesses are able to obtain higher profits and other benefits as the consequence of early market entry.Answer
Q4: The difficulties as a result of the different norms and rules that constrain human behaviour are called
Answer: Liability of foreignnessAnswer
Q5: High psychic distance can
Answer: discourage the firm’s international expansion into a given country.Answer
Q6: The Uppsala Model can help to understand
Answer: a firm’s initial choice of international location and its mode of entry into foreign markets.Answer
Q7: Which of the following is NOT a mode of entry into foreign markets
Answer: InternationalizationAnswer
Q8: Franchising involves
Answer: the transfer of a business concept, with corresponding operational guidelines, to non-domestic parties for a fee.Answer
Q9: Horizontal and Vertical are types of
Answer: Mergers and acquisitionsAnswer
Q10: De-internationalization can be the result of two different processes
Answer: Company failure and strategic decision-makingAnswer
Q11: Which of the following is NOT a strategic alliance
Answer: MergerAnswer
Q12: What is the most frequent internal motive for a strategic alliance
Answer: Resource needAnswer
Q13: An alliance between a supplier and a buyer that agree to use and share skills and capabilities in the supply chain, is called
Answer: Vertical integration allianceAnswer
Q14: What is the most important criterion for selecting an alliance partner
Answer: Alliance partner must help the company towards a competitive advantage.Answer
Q15: An optimal business partner in a successful international strategic alliance should have two key qualities
Answer: Strategic fit and cultural fitAnswer
Q16: Why do alliances between a large Western multinational firm and an emerging economy firm often fail
Answer: The partner objectives are very divergent.Answer
Q17: What is “strategic control”
Answer: Control over the means and methods on which the whole conduct of an organization depends.Answer
Q18: The average life span for a strategic alliance is about
Answer: 7 yearsAnswer
Q19: What advantage comes from trust between alliance partners
Answer: Trust makes partners more willing to share information.Answer
Q20: Subsidiary-level strategy deals with the question of
Answer: how a subsidiary positions itself among local and international rivals.Answer
Q21: The two broad types of subsidiary-level strategy are
Answer: support and implementation, and autonomous subsidiaries.Answer
Q22: Michael Porter proposed
Answer: two basic strategies that a subsidiary can use to create value for customers.Answer
Q23: A subsidiary cost leadership strategy involves
Answer: setting out to become the lowest-cost producer relative to the firm’s rivals.Answer
Q24: The two global level strategies are
Answer: Corporate and subsidiaryAnswer
Q25: When the subsidiary faces conditions of high environmental uncertainty, headquarter managers should
Answer: give more authority to subsidiaries to make strategic decisions.Answer
Q26: The more similar the local markets are
Answer: the more likely that subsidiaries play a support and implementation role.Answer
Q27: Mini-replica subsidiaries operate as
Answer: A small-scale replicas of their parent firmsAnswer
Q28: Multinational firms should have a single standard corporate strategy if
Answer: their products and services are accepted around the world.Answer
Q29: One of the key tasks of the corporate parent is
Answer: deciding on and enforcing the strategic direction of the multinational firm.Answer
Q30: Corporate parent refers to
Answer: the headquarter’s level within a multinational firm with different subsidiaries.Answer
Q31: Cultural control relies on
Answer: employing expatriate managers as top managers of subsidiaries.Answer
Q32: Control of subsidiaries can be carried out in
Answer: two ways: personal or impersonal.Answer
Q33: What are the three main types of control
Answer: Output control, behavioural control and cultural controlAnswer
Q34: Industrial diversification is justifiable if
Answer: if enhances shareholders’ value.Answer
Q35: What are the two options of industrial diversification
Answer: Related diversification and unrelated diversificationAnswer
Q36: What is NOT an advantage of vertical integration
Answer: It enables the firm to internationalize quickly.Answer
Q37: Offshoring generally refers to
Answer: Reallocation of activities to emerging and developing countries.Answer
Q38: What is NOT a cause of value destruction by corporate parents
Answer: Seeking synergies between subsidiariesAnswer
Q39: What do organizational structures explain
Answer: Who does what, where and whenAnswer
Q40: What are the advantages of the functional structure
Answer: It makes communication easy among people from the same specialists.Answer
Q41: When is the international division structure appropriate
Answer: When foreign operations are relatively small.Answer
Q42: When is the geographical division appropriate
Answer: When customers’ taste varies significantly across countries.Answer
Q43: Typically, in a global product structure
Answer: marketing is subservient to operations.Answer
Q44: Barlett and Ghoshal (1989) said that the matrix structure is
Answer: prove all but unmanageable.Answer
Q45: A significant weakness of the multi-domestic arrangement is
Answer: duplication of activities.Answer
Q46: In transnational firms, managers must emphasize
Answer: interdependence between subsidiaries.Answer
Q47: According to the Stopford and Wells model, a high degree of diversification and high level of foreign sales should lead the multinational firm to adopt
Answer: Matrix structureAnswer
Q48: The transnational structure is
Answer: not dominated by hierarchy.Answer
Q49: What are the two types of change management
Answer: Incremental change and transformational changeAnswer
Q50: In high collectivist cultures, leaders need to emphasize
Answer: Long-tem implications of the change on the wider communityAnswer
Q51: In high power distance cultures
Answer: change tends to be implemented top down.Answer
Q52: In feminine cultures leaders need to emphasize
Answer: the impact of change on quality of life.Answer
Q53: The three stages of the change process are
Answer: unfreezing, adjustment, and refreezing.Answer
Q54: The five stages of the coping cycle are (in order)
Answer: Denial, defence, discarding, adaptation, internalizationAnswer
Q55: Dunphy and Stace (1993) identified
Answer: Four styles of change managementAnswer
Q56: What is NOT one of the five stages of the negotiation process
Answer: CommunicationAnswer
Q57: Transformational change is often carried out
Answer: top down.Answer
Q58: Process innovation refers to
Answer: the implementation of a new or improved production method.Answer
Q59: Innovation can help to provide a temporary competitive advantage when
Answer: barriers to imitation are low and intellectual property rights are difficult to enforce.Answer
Q60: Following establishment of a dominant design in the product life cycle, what would you expect to happen
Answer: Emphasis on process innovation rather than product innovation.Answer
Q61: Established firms relative to new firms are better at
Answer: innovation which is competence-enhancing.Answer
Q62: In which markets are network effects likely
Answer: All of the aboveAnswer
Q63: Which of the following are valuable in a standards war
Answer: Early mover advantageAnswer
Q64: The fundamental challenge of knowledge transfer in multinational firms is
Answer: transferring tacit knowledge across borders.Answer
Q65: What potential advantages can be gained from involving overseas subsidiaries in R&D activities
Answer: Local subsidiaries offer financial advantages as well as access to local markets, technical knowledge and skills.Answer
Q66: Outsourcing of innovation globally is more likely where
Answer: Innovations are autonomousAnswer
Q67: All definitions of Corporate Social Responsibility recognize that
Answer: companies have a responsibility for their impact on society and environment.Answer
Q68: Who said that the “only one social responsibility of business is to increase profits”
Answer: Milton FriedmanAnswer
Q69: What is the main characteristic of the stakeholder approach
Answer: The idea that many different groups have a legitimate interest in the corporationAnswer
Q70: What are the four generic strategies of social responsiveness
Answer: Reaction, Defence, Accommodation, ProactionAnswer
Q71: Michael Porter and Mark Kramer said that
Answer: Social responsibility can help firms to discover future business opportunities.Answer
Q72: Which of the following is NOT an example of a genuine business innovation
Answer: Charitable donation to an ecological organizationAnswer
Q73: Opportunities for social innovation are greatest when
Answer: CSR is aligned with a firm’s core skills and capabilities.Answer
Q74: What are the three levels of innovation
Answer: In-market innovation, new market creation, leadershipAnswer
Q75: Which of the following is an example of new market creation
Answer: Creation of microfinance services to poor creditors by a bank.Answer
Q76: What is a key obstacle to the success of non-traditional partnerships
Answer: Lack of trust between partnersAnswer
Q77: Online marketing can be defined as
Answer: The use of Internet and related digital information and communications technologies to achieve marketing objectivesAnswer
Q78: Effective online marketers requires the following combination
Answer: IT and Marketing competences to achieve customer satisfactionAnswer
Q79: The main consumer concerns that restricted the rate of internet adoption were
Answer: Security, trust and privacy issuesAnswer
Q80: An organisation’s web site plays an increasingly crucial role in
Answer: Multi-channel marketingAnswer
Q81: The convenience provided by the Internet is important for the following ‘environmental’ reasons
Answer: Socio-economicAnswer
Q82: The Internet has resulted in a fundamental shift in
Answer: Greater consumer power and knowledgeAnswer
Q83: An Internet champion is needed to change and shape
Answer: The corporate cultureAnswer
Q84: For multi-channel marketers, the online environment should reinforce
Answer: Consistent brand values across all channelsAnswer
Q85: Political influence has been important in developing
Answer: A country’s e-readinessAnswer
Q86: A well designed web site can communicate effectively with its
Answer: StakeholdersAnswer
Q87: 70 – 80% of early online business transactions were conducted in the
Answer: B2B sectorAnswer
Q88: Compared to dotcom companies, clicks and mortar operations had the advantage of
Answer: An established brand presenceAnswer
Q89: The main reason for the Boxman.com collapse was
Answer: Over-extending the operation through a multi-country launchAnswer
Q90: eBay is an example of which type of business model according to Timmers
Answer: e-AuctionsAnswer
Q91: Value Chain Service Providers offer
Answer: Specialist services or functions within the value chainAnswer
Q92: Search engines play a key role in which online selling phase
Answer: Pre-Sale PhaseAnswer
Q93: Manufacturers of Personal Computers who sell ‘direct’ to consumers utilize which business model
Answer: Manufacturing ModelAnswer
Q94: Online information brokers reflect a process of
Answer: ReintermediationAnswer
Q95: With regard to de Kare Silver’s strategic options, many UK financial institutions adopted which route
Answer: ‘Set up as a separate business’Answer
Q96: Online fulfillment tracking systems provide customers with
Answer: Real time transparencyAnswer
Q97: The Napkin Model of the early Internet boom period was attributed to
Answer: Dotcom entrepreneurs and tycoonsAnswer
Q98: Web Metrics provides a vital role in which phase of The Strategic Marketing Cycle
Answer: Control PhaseAnswer
Q99: Technologically inspired change drives
Answer: Organisational restructuring either by department or across the organisationAnswer
Q100: A web site should be designed for
Answer: Your most valuable customer with high lifetime valuesAnswer
