121. What are core competences?
A. Resources which critically underpin competitive advantage and that others cannot obtain.
B. Activities and processes needed to meet customers’ minimum requirements and therefore to continue to exist.
C. Key skills required for success in a particular business.
D. Activities that underpin competitive advantage and are difficult for competitors to imitate or obtain.
Answer
D. Activities that underpin competitive advantage and are difficult for competitors to imitate or obtain.
122. What do you mean by the term “holding company” is:
A. organization with a balanced portfolio of individual businesses
B. decentralized organization with a small head office that organizes finance for the subsidiaries
C. centralized organization with a small head office that helps subsidiaries develop and finance their strategies
D. decentralized organization with a large head office that offers a broad range of advice and services to subsidiaries
Answer
B. decentralized organization with a small head office that organizes finance for the subsidiaries
123. A firm with a functional director for 6 areas with an area director for 3 functions. There, staff at each area will be reporting to 2 bosses. This firm has which type of structure?
A. Project structure
B. Matrix structure
C. Divisionalized structure
D. Front-back structure
Answer
B. Matrix structure
124. Organization structure that is a functional or divisional structure but at the same time also includes project teams for dealing with specific issues is called:
A. An M-form structure
B. A front-back structure
C. A networked structure
D. A hybrid structure
Answer
D. A hybrid structure
125. Organization whose structure is divided into two main parts – one dealing with product groups and one dealing with customer segments is called:
A. A front-back structure
B. A product-customer structure
C. A back to back structure
D. A matrix structure
Answer
A. A front-back structure
126. Choose the right sentence
A. Organization’s structure would be expected to evolve as it grew larger and more diverse
B. Every organization starts out with a simple structure, then moves to a functional structure before becoming divisionalized
C. Network structures are superior to functional ones
D. Organizational performance will suffer if the structure is not stable
Answer
A. Organization’s structure would be expected to evolve as it grew larger and more diverse
127. Format of reporting and for decision making relationships can be defined as the organizational:
A. Span of control
B. Architecture
C. Hierarchy
D. Chain of command
Answer
C. Hierarchy
128. Main component of Organization’s architecture are structural hierarchy, values and belief systems, contracts and relationships and (two more):
A. Control systems and ways of working
B. Information infrastructure and power structures
C. Control systems and power structures
D. Control systems and information infrastructure
Answer
D. Control systems and information infrastructure
129. ‘Vertical architecture’ is the one which has:
A. Has a tall hierarchy
B. Has many layers of management
C. Extends beyond the boundaries of legal ownership
D. Is very bureaucratic
Answer
C. Extends beyond the boundaries of legal ownership
130. Five dimensions are used to judge Organizational structures and systems (ABCDE) to assess whether they are achieving an appropriate balance. These five dimensions are Autonomy, Bureaucracy, Cultural Control, Decentralization and:
A. Equal Opportunities
B. Economic Incentives
C. Equality and Diversity
D. Evidence of Learning
Answer
B. Economic Incentives
131. Those Organizations that are relatively good at developing some relevant capabilities to respond to a changing context are known as:
A. Knowing organizations
B. Stretch organizations
C. Learning organizations
D. Absorptive organizations
Answer
C. Learning organizations
132. When a firm seeks the benefits of global integration and local adaptation, it is best described as which type of strategy?
A. Transnational
B. Global
C. Multi-national
D. Global-local
Answer
C. Multi-national
133. A strategic decision can be distinguished from other types of decisions by three factors,these are magnitude, time-scale and:
A. Commitment
B. Riskiness
C. Impact
D. Longevity
Answer
B. Riskiness
134. ‘Influence’ is defined as the ability to ___ someone to something they would not otherwise have done.
A. Intimidate
B. Force
C. Order
D. Persuade
Answer
A. Intimidate
135. The authors believe there are three tests that can be applied to judge whether a strategy is ‘good’. These are:
A. Fit, distinctiveness, sustainability
B. Fit, internal resources, external environment
C. Distinctiveness, internal resources, fit
D. Sustainability, distinctiveness, external environment
Answer
B. Fit, internal resources, external environment
136. According to Porter, dealing with the paradox of premature commitment versus not enough commitment involves some kind of:
A. Trade-off
B. Lock-in
C. Lock-out
D. Diversification
Answer
C. Lock-out
137. In terms of the PESTLE analysis, the liberalizing of international trade and tariff regimes could go in which section or sections?
A. Political
B. Legal
C. Political and economic and legal
D. Political and environmental
Answer
D. Political and environmental
138. Which of the following industries is least likely to follow the conventional life-cycle model?
A. Software development
B. Coal mining
C. Insurance broking
D. Hairdressing
Answer
A. Software development
139. Brandenburger and Nalebuff added a sixth force to Porter’s Five Forces. It is known as:
A. The threat of substitutes
B. The power of complementors
C. Seller power
D. Government regulation
Answer
A. The threat of substitutes
140. A situation in which the joint moves of two firms can determine how much money each firm can make or lose can be explained using the story of:
A. The Trojan Horse
B. The Icarus Paradox
C. The Prisoner’s Dilemma
D. The Icarus Dilemma
Answer
D. The Icarus Dilemma
141. According to Porter, if an organization does not follow either a cost leadership strategy or a differentiation strategy they are:
A. Hybrid
B. Stuck in the middle
C. Typical
D. No frills
Answer
C. Typical
142. Which is the right sequence of a stages of Internationalization
A. Domestic, Transnational, Global, International, Multinational
B. Domestic, International, Multinational, Global, Transnational
C. Domestic, Multinatinal, International, Transnational, Global
D. Domestic, Internatinal, Transnational, Multinational, Global
Answer
B. Domestic, International, Multinational, Global, Transnational
143. Which of the following is not a force in the Porter Five Forces model?
A. Buyers
B. Suppliers
C. Complementary products
D. Industry rivalry
Answer
C. Complementary products
144. A likely consequence of rationalization is:
A. Lower number of employees
B. Lower revenues
C. Higher costs
D. Price decrease
Answer
B. Lower revenues
145. The agreement signed by Ranbaxy Laboratory and Bayer AG of Germany in the year 1999 is an example of
A. Subsidiary
B. Joint venture
C. Strategic International Alliance
D. License agreement
Answer
C. Strategic International Alliance
146. When the transaction is of high value, complex In nature and more technical ___ method of export sales contract is used.
A. Performa invoice
B. Purchase order
C. Sales contact
D. None of the above
Answer
C. Sales contact
147. What are core competences?
A. Resources which critically underpin competitive advantage and that others cannot obtain.
B. Activities and processes needed to meet customers’ minimum requirements and therefore to continue to exist.
C. Key skills required for success in a particular business.
D. Activities that underpin competitive advantage and are difficult for competitors to imitate or obtain.
Answer
D. Activities that underpin competitive advantage and are difficult for competitors to imitate or obtain.
148. Specific cultural dimensions that does not have a significant impact on cross-national business interactions is
A. Hofstede’s five cultural dimensions
B. Monochromatic vs polychromatic tune
C. Communication
D. Geography
Answer
D. Geography
149. Professional culture refers to
A. Shared belief of top managers about how they should manage themselves and their employees
B. Shared code of ethics and other commonalities shared by members of a given group
C. Both (a) and (c)
D. None of the above
Answer
B. Shared code of ethics and other commonalities shared by members of a given group
150. An attribute that doesn’t contribute to Porters Diamond model is
A. Government
B. Organized Trade union
C. Factor Conditions
D. Demand Conditions
Answer
B. Organized Trade union
151. Theory of Mercantilism propagates
A. Encourage exports and imports
B. Encourage exports and discourage imports
C. Discourage exports and imports
D. Discourage exports and encourage imports
Answer
B. Encourage exports and discourage imports
152. Identify a factor that doesn’t play an important role in attracting FDI
A. Laws, rule sand regulations
B. Administrative procedures and efficiency
C. Infrastructure related factors
D. Language
Answer
D. Language
153. General electric follows ___ as its international operational strategy
A. GLOBAL
B. TRANSNATIONAL
C. INTERNATIONAL
D. MULTI-DOMESTIC
Answer
B. TRANSNATIONAL
154. Which term refers to the phenomenon in which the world’s population shares commonly recognized cultural symbols?
A. global village
B. monopolistic market
C. global city
D. multicultureal village
Answer
A. global village
155. According to the concept of the value chain, a firm is profitable if:
A. the value it commands equals the costs involved in creating the product.
B. it operates in global industries
C. the value it commands exceeds the costs involved in creating the product
D. the value it commands is lower than the costs involved in creating the product
Answer
C. the value it commands exceeds the costs involved in creating the product
156. In which industries is global competition more common?
A. where the value chain functions are carried out at head office
B. where upstream and support activities are crucial to competitive advantage
C. where downstream activities or other-tied activities are vital to competitive advantage
D. in none of the above situations
Answer
B. where upstream and support activities are crucial to competitive advantage
157. A global market leader is an organization which:
A. has the monopoly over several foreign markets.
B. has more than 50% global market share.
C. is ahead of the competition in terms of global innovation.
D. is recognized as being ahead of the rest in terms of market share.
Answer
D. is recognized as being ahead of the rest in terms of market share.
158. The international division is established:
A. In the corporate headquarters of the firm
B. At the regional headquarter.
C. Under marketing department.
D. Mostly at the corporate headquarters of the firm, but can be at a foreign centre also.
Answer
D. Mostly at the corporate headquarters of the firm, but can be at a foreign centre also.
159. Global area structure is suitable for firms:
A. Narrow product line.
B. Wider product line
C. Narrow product line not transferable across regions.
D. none
Answer
D. none
160. Duplication of staff groups results in:
A. International division structure.
B. Global product division structure.
C. Global matrix structure.
D. none
Answer
B. Global product division structure.
