Deck 1: Strategizing Around the Globe

Question 1

As demonstrated at Samsung, it is easier for Westerners to adapt to Eastern work styles than for Easterners to adapt to Western work styles.

Answer 1

False

Question 2

The quality of management practices around the world does not seem to correlate well with the level of economic development.

Answer 2

True

Question 3

The opening case is an example of how global companies hire employees locally and then train employees to work in other countries.

Answer 3

False

Question 4

In the global economic pyramid, the top tier includes the 2 billion people whose annual per capita income is greater than US$20,000.

Question 5

Within Samsung's Global Strategy Group, Korean colleagues have had to change their work styles to accommodate Westernized practices.

Question 6

If a strategy (theory) is truly successful, it will work not just for one firm but for all others as well.

Question 7

Global strategy has, in the past, been primarily focused on markets that consist of those people who are in the bottom tier of the global economic pyramid.

Question 8

The three key perspectives of strategy as a discipline include industry-based, resource-based, and labor-based views.

Question 9

The two primary purposes of a theory are to explain the past and predict the future.

Question 10

A multinational enterprise rarely engages in foreign direct investment.

Question 11

Companies use balanced scorecards to summarize business information into a smaller number of critical factors.

Question 12

The concept of strategy as integration means that strategy is a combination of planned deliberate actions and unplanned emergent activities.

Question 13

The text stresses that realism indicates that all companies should "go global" and endeavor to do so as quickly as possible in view of the vast opportunities that exist.

Question 14

Determining the scope of the firm involves not only growth of the firm but also contraction.

Question 15

The current brand of "global strategy" seems relevant only for multinational enterprises from developed countries, primarily North America, Europe, and Japan.

Question 16

If done well, a SWOT analysis will turn unrealized strategies into intended strategies.

Question 17

A typical "one-size-fits-all" strategy remains the most effective for firms "going global."

Question 18

A SWOT analysis resonates well with Sun Tzu's teachings.

Question 19

The Japanese use a formal system of interlocking business groups and relationships, known as guanxi, in determining business strategies.

Question 20

In the opening case, Samsung's Global Strategy Group has demonstrated that cultural integration is difficult, with retention rates below two-thirds.

Question 21

Semiglobalization involves doing business in either the Northern or Southern Hemisphere but not both.

Question 22

U.S. business students have positive views similar to those of the general public.

Question 23

During the 1990s there was an increase in both global trade and opposition to global trade.

Question 24

When surveyed about the benefit of globalization, a higher percentage of the American general public saw globalization as good for strengthening the economics of poor countries than as good for U.S. consumers.

Question 25

The more traditional meaning of global strategy is any strategy outside one's home country.

Question 26

The resource-based view suggests that firm-specific capabilities do not drive performance differences.

Question 27

A lot of opponents of globalization are nongovernmental organizations (NGOs), such as environmentalists and consumer groups.

Question 28

Standardization in markets is the main goal of semiglobalization.

Question 29

In discussions of globalization, a case can be made for both extensive cultural integration as well as the promotion of inequality.
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Question 30

The industry-based view posits that the degree of competitiveness in an industry largely determines firm performance.

Question 31

The textbook's goal is to approach global strategy as the way that both domestic firms and foreign entrants compete successfully.

Question 32

Although global strategy is associated with business, the term globalization means the close integration of countries and peoples of the world.

Question 33

According to the text, business students may tend to focus more on the economic gains of globalization, and be less concerned with its darker sides.

Question 34

The institution-based view argues that institutional forces provide an answer to similarities in firm performance but not differences.

Question 35

During the second half of the twentieth century, Hong Kong, Singapore, South Korea, and Taiwan, refused to participate in the global economy and became known as the "Four Toothless Tigers."

Question 36

China in the 1970s is an example of an emerging economy.

Question 37

According to the text, today's most successful MNEs far exceed the historical clout of some MNEs such as Britain's East India Company during colonial times.

Question 38

The earliest MNEs existed in some form thousands of years ago in the Assyrian, Phoenician, and Roman empires.

Question 39

The pendulum view of globalization explains the steady expansion and contraction of individual nations' economies.

Question 40

The recession that began in 2008 led to an increase in protectionist measures.

Question 41

According to the text, the current brand of "global strategy" seems relevant only for MNEs from:

A)BRIC.
B)The Triad.
C) OPEC nations.
D) NAFTA.
E) The E. U.

Question 42

The notion of global strategy as a one-size-fits-all:

A)​Adds to local responsiveness.
B)​Provides the best way for companies to compete with domestic rivals as well as international rivals.
C) ​Fails to adequately accommodate firms in emerging economies.
D) ​Looks primarily at how MNEs compete with their domestic rivals in foreign countries.

Question 43

Which of the following best defines "Triad" as the term is used in the text?

A)The United States, Japan, and Germany.
B)The United States, Canada, and Mexico.
C) North America, Europe, and Japan.
D) The U.S. dollar, the Euro, and the Yen.

Question 44

A primary reason to study global strategy is:

A)​Strategy consultants with global experience are highly paid.
B)​Understanding how strategic decisions are made can facilitate business careers.
C) ​Domestic employers are finding themselves working with foreign suppliers and buyers more and more often.
D) ​All of the above.

Question 45

Overall, strategy is:

A)A rulebook.
B)A blueprint.
C) A set of programmed instructions.
D) None of the above.

Question 46

Which of the following is NOT an advantage of "strategy as theory"?​

A)​It integrates both planning and action schools.
B)​It requires both replications and experimentations.
C) ​It encompasses an understanding of the difficulty of strategic change.
D) ​It serves the single purpose of prediction.

Question 47

MNEs are increasingly finding that:

A)​The strategy that works in their domestic market will most likely work best in foreign markets.
B)​Tailoring strategies for particular markets is costly and often ineffective.
C) ​The quest for worldwide cost reduction and consolidation in global strategy has sacrificed local responsiveness.
D) ​Strategies targeted to emerging markets work best in developed markets as well.

Question 48

Mintzberg advocated strategy as action in which:

A)​Intended strategy is always superseded by emergent strategy.
B)​Emergent strategy can arise in addition to intended strategy.
C) ​Top-down planning is most conducive to emergent strategy.
D) ​Bottom-up planning and flexibility are avoided as part of strategic planning.

Question 49

A hallmark of theory building and development is:

A)The outcome of a test.
B)Replication.
C) Intuition.
D) Consensus.

Question 50

GE developed a portable electrocardiograph machine originally for doctors in India and China that is now being sold in the United States at a significantly lower price than comparable products. This product is an example of:

A)​Foreign direct investment.
B)​Reverse innovation.
C) ​Intended strategy.
D) ​Intended strategy.

Question 51

Strategic management is essentially:

A)​Follows a one-size-fits-all philosophy.
B)​A military concept rather than a business concept.
C) ​The way a firm goes about competing successfully from a "big picture" perspective.
D) ​None of the above.

Question 52

When it comes to strategic work as defined by A. G. Lafley, CEOs are primarily responsible for:

A)​Overseeing the tactical aspects of a firm's work.
B)​Shaping the values and standards of the firm.
C) ​Calling and presiding over strategy meetings.
D) ​Delegating the responsibility for making strategic choices .

Question 53

Many BRIC local firms are:

A)Focused only on competing globally.
B)Growing their absolute GDP but failing to increase their percentage of world GDP.
C) Inadequate in mounting any competitive threat to Triad-based MNEs.
D) Effectively competing at home.

Question 54

Emerging economies (or emerging markets):

A)Now command a full one-half of the worldwide FDI flow.
B)Command half of the global gross domestic product (GDP) measured at purchasing power parity.
C) Consist of countries which are in a state of decline but which are believed to have potential for growth.
D) Despite their growth, they still command less than 10% of global GDP.

Question 55

BRIC refers to:

A)Brazil, Russia, India, and China.
B)Bolivia, Romania, Indonesia, and Columbia.
C) Bulgaria, Belgium, Romania, Italy, and Canada.
D) Bahrain, Russia, Iran, and China.

Question 56

The school of thought that views strategy as the outcome of rigorous formal planning is based on:

A)​The work of Carl von Clausewitz, a Prussian military strategist.
B)​Sun Tzu's book The Art of War.
C) ​Mintzberg's ideas of bottom-up feedback.
D) ​Liddell Hart's set of goal-oriented actions.

Question 57

Chandler advocated strategy as integration, a perspective in which:

A)​Intended strategy is always superseded by emergent strategy.
B)​Strategy is neither solely about plan nor action, but integrates both.
C) ​Top-down planning integrates a "know yourself" philosophy.
D) ​Bottom-up planning and flexibility are avoided as part of strategic planning.

Question 58

When looking at the global economy as a pyramid, MNEs:

A)​Traditionally believed no money was to be made in base of the pyramid markets.
B)​Are based almost exclusively in the top tier.
C) ​Face little competition from emerging markets at any level of the pyramid.
D) ​Tend to target the population at the base of the pyramid.

Question 59

Multinational enterprises (MNEs) are firms that:

A)Engage in foreign direct investment (FDI).
B)Delegate control of value-adding activities in other countries.
C) Standardize strategies across all business units.
D) None of the above.

Question 60

Which of the following best describes foreign direct investment (FDI)?

A)A firm's direct investment in production and/or service activities abroad.
B)The purchases of foreign securities by people within the United States.
C) The purchases of U. S. securities by people from other countries.
D) Avoidance of brokers or other financial intermediaries when making foreign investments.

Question 61

Part of China's economic growth has been attributed to guanxi, which is:

A)​A process of rapid acquisition and divestment.
B)​Formal institutional structures.
C) ​The nouveau riche of China.
D) ​Interpersonal networks and relationships.

Question 62

In an institution-based view of strategy, the informal rules of the game:

A)Must be avoided because global business is not a mere game.
B)Are being replaced by formal rules.
C) Often require that the firm seek to change the informal rules instead of going along with those rules.
D) Need to be understood by firms.

Question 63

In looking at strategy, the authors address all of the following questions EXCEPT:

A)​Why do firms differ?
B)​How do firms behave?
C) ​What determines the scope of the firm?
D) ​Is strategy really necessary in business?

Question 64

Globalization is viewed as:

A)A new force sweeping through the world in recent times.
B)A long-run historical evolution since the dawn of human history.
C) A pendulum that swings from one extreme to another from time to time.
D) All of the above.

Question 65

For those who view globalization as a "pendulum," the practice of _________________ to identify and assess as well as minimize the effects of unfortunate events is important.

A)​risk management
B)​strategy as action
C) ​intended strategy
D) ​SWOT analysis

Question 66

The word _______has now become the most famous Chinese business word to appear in English-language media.

A)keiretsu
B)guanxi
C) chaebol
D) blat

Question 67

Viewing each country as a unique market and therefore somewhat isolated is known as _________, whereas ___________ sees market integration as subject to some barriers that do not totally insulate those markets.

A)​antiglobalization; localization
B)​localization; globalization
C) ​globalization; semiglobalization
D) ​localization; semiglobalization

Question 68

Which of the following was the first to express concern about international competition from low-cost countries?

A)American political leaders in the twenty first century.
B)Union leaders in the last half of the twentieth century.
C) A first-century Roman emperor.
D) The King of England in the late 1700s.

Question 69

When looking at globalization, many executives, policymakers, and scholars:

A)Consistently side with nongovernmental organizations in opposing globalization.
B)See more costs than benefits in globalization as it exists today.
C) Fail to take into sufficient account the social, political, and environmental costs associated with globalization.
D) Recognize that most other members of society share the same view of globalization.

Question 70

When reviewing the diversity of management practices around the world, the quality of management practices:

A)​Depends on the interpersonal relationships among managers.
B)​Is tightly related to size of firm, economic development of markets, and formal structures.
C) ​Seems to correlate with the level of economic development.
D) ​Relies heavily the assessment of external opportunities and threats.

Question 71

A resource-based view of strategy sees a firm's success as primarily dependent on:

A)​A firm's opportunities and threats.
B)​A firm's strengths and weaknesses.
C) ​The competitive forces of the firm's market.
D) ​The formal and informal rules of the game.

Question 72

The current era of globalization originated in the aftermath of:

A)World War I.
B)World War II.
C) The Vietnam Conflict.
D) The Gulf War.

Question 73

"Global strategy" refers to:

A)A particular theory on how to compete.
B)Offering standardized products and services on a worldwide basis.
C) Strategy of firms around the globe-essentially various firms' theories about how to compete successfully.
D) All of the above.

Question 74

What is the difference between developed economies and emerging economies? Give examples of countries that would be consider to have developed economies and those that have emerging economies.

Question 75

The _______ view primarily focuses on the ______ in a SWOT analysis.

A)Industry-based; OT
B)Resource-based;OT
C) Industry-based; SW
D) Resource-based; SW

Question 76

The Japanese practice of employing a network form of supplier management rather than using costly acquisitions that is common in the West is known as:

A)​Keiretsu.
B)​Guanxi.
C) ​Chaebol.
D) ​Blat.

Question 77

Diversification:

A)Is a relatively new concept in Western business .
B)Is believed by Western media to destroy value in emerging economies.
C) Is a poor idea and results in lower or no profitability in emerging economies.
D) Should be dismantled in emerging economies, based on recent research.

Question 78

The values and beliefs about globalization held by the general public are:

A)​Nearly identical to those held by executives, policymakers, and scholars.
B)​Nearly identical to those held by current business school students, but different from those of executives, policymakers, and scholars.
C) ​Much more positive than those held by executives, policymakers, and scholars.
D) ​More negative than those held by current business school students.

Question 79

In determining the success and failure of firms around the globe, strategic managers will look at :

A)​How to acquire, leverage, and sustain competitive advantage over time.
B)​A comparative analysis of industry-based, resource-based, and institution-based practices.
C) ​How to best standardize a firm's products and services on a worldwide basis.
D) ​A standardized balanced scorecard across industries.

Question 80

Much of our knowledge about "the firm" is from research on firms in:

A)Anglo-American capitalism.
B)Japan after World War II.
C) German mathematical models.
D) Emerging markets.