High pressure for local adaptation

1.       High pressure for local adaptation combined with high pressure for lower costs would suggest what type of international strategy? (Points : 5)

a.    Global

b.    Multidomestic

c.     Transnational

d.    differentiation

2.       The form of entry strategy into international operations that offers the lowest level of control would be (Points : 5)

a.    franchising.

b.    licensing.

c.     joint venture.

d.    exporting.

3.        __________ are most appropriate where a firm already has the appropriate knowledge and capabilities that it can leverage rather easily through multiple locations in many countries. (Points : 5)

a.    Joint ventures

b.    Strategic alliances

c.     Licensing agreements

d.    Wholly owned subsidiaries

4.        Many U.S. multinational companies set up maquiladora operations south of the U.S.-Mexico border primarily (Points : 5)

a.    to sell products into the growing Mexican market.

b.    as part of US government-initiated measures to discourage illegal immigration.

c.     to take advantage of the lower tax rates in Mexico.

d.    to take advantage of the low cost of labor.

5.        High pressure for local adaptation combined with low pressure for lower costs would suggest what type of international strategy? (Points : 5)

a.    Global

b.    Multidomestic

c.     Transnational

d.    Overall cost leadership

6.        __________ entail the creation of a third-party legal entity, whereas __________ do not. (Points : 5)

a.    Licensing agreements; joint ventures

b.    Joint ventures; strategic alliances

c.     Strategic alliances; joint ventures

d.    Franchising agreements; strategic alliances

7.       Gillette’s worldwide success with its Sensor razor demonstrates (Points : 5)

a.    the importance of merging global and multidomestic strategies.

b.    the values of establishing joint ventures with several multinational corporations.

c.     that a global marketing effort can sometimes be successful.

d.    the usefulness of a multidomestic strategy.

8.       Which of the following refers to a situation where a company has a high concentration of its business in a particular industry’s market? (Points : 5)

a.    competitor’s resources

b.    market dependence

c.     resource similarity

d.    actor’s reputation

9.        Which of the following terms is used to refer to opportunities that are practical and physically possible? (Points : 5)

a.    Durable

b.    Valuable

c.     Achievable

d.    sustainable

10.   Financing for entrepreneurial start-ups includes which of the following? (Points : 5)

a.    investments by family and friends

b.    personal savings

c.     private investors

d.    all of these

11.   Which of the following types of resources contribute to the success of entrepreneurial firms? (Points : 5)

a.    social capital

b.    financial resources

c.     human resources

d.    All of these contribute to the success of entrepreneurial firms.

12.   Which of the following sources of entrepreneurial financing are available to ventures that have already started to conduct business and generate sales? (Points : 5)

a.    bank financing

b.    venture capital

c.     public financing

d.    all of these

13.   Private individuals who provide seed capital to young ventures are known as (Points : 5)

a.    angels.

b.    gazelles.

c.     cash cows.

d.    rising stars.

14.    __________ provide(s) a key avenue for growth for many young and small firms through partnering to obtain resources and/or expand into new markets. (Points : 5)

a.    Strategic alliances

b.    Bootstrappers

c.     “Lone wolf” entrepreneurs

d.    Research & development

15.   In principal-principal conflicts (conflicts between controlling shareholders and minority shareholders), the ownership (of equity) is (Points : 5)

a.    widely dispersed (5-20% is considered “concentrated ownership”).

b.    controlled almost completely by management.

c.     concentrated; often greater than 50% of equity is controlled by controlling shareholders.

d.    often held by employee stock ownership programs.

16.   It is generally argued that the takeover constraint (Points : 5)

a.    deters management from engaging in opportunistic behavior.

b.    deters management from considering acquiring other companies.

c.     deters management from declaring dividends.

d.    deters management from increasing a firm’s level of borrowing.

17.   If the market value of a firm becomes less than its book value, (Points : 5)

a.    it becomes an attractive takeover target.

b.    the firm will be delisted by the stock exchange.

c.     the Securities and Exchange Commission will not allow it to declare dividends until the market value once again exceeds the book value.

d.    the firm will be unable to service its debt.

18.   CEO duality refers to a situation in which (Points : 5)

a.    the CEO formulates and implements strategies.

b.    the CEO serves as both the CEO and the chair of the board of directors.

c.     the CEO is responsible for acting as CEO and serving on the compensation committee.

d.    the CEO is responsible for acting as CEO and Chief Operating Officer (COO).

19.   Contemporary approaches to strategic control rely primarily on (Points : 5)

a.    feedback controls.

b.    single-loop learning.

c.     double-loop learning.

d.    comparative learning.

20.   By takeover constraint, we mean (Points : 5)

a.    constraints placed by the firm on raiders who want to takeover the firm.

b.    legal constraints that limit the ability of the raiders to acquire a firm.

c.     provisions in the charter of a company that prevents it from attempting a takeover of other companies.

d.    the risk of being acquired by a hostile raider.


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