International Business Opportunities and Challenges Study Set 2

A global strategy emphasizes economies of scale and offers greater opportunities to utilize innovations developed at the corporate level or in one country in other markets.

Corporate strategy is concerned with the manner in which an organization should compete in the market.

Staging and pacing refer to how the firm will generate positive returns over and above its cost of capital.

In outsourcing, the company takes a function out of its home country and places the function in another country, generally at a lower cost.

Strategy formulation is the process of performing all the activities necessary to do what has been planned.

Business-level strategies are intended to create differences between a firm's position and those of its rivals.

The disadvantage of a multidomestic strategy is that it cannot take advantage of economies of scale that could help decrease costs for the firm overall.

The disadvantage of a global strategy is that the firm faces more uncertainty because of the tailored strategies in different countries.

An international strategy has to be adjusted to adapt, overcome, or exploit differences across countries and regions.

Business strategy is concerned with the kind of business an organization should undertake.

Decisions about a firm's arenas may encompass its products, services, distribution channels, market segments, geographic areas, technologies, and even stages of the value-creation process.

A multidomestic strategy is centralized and controlled by the home office and seeks to maximize global efficiency.

The multidomestic strategy has been more commonly used by European multinational firms because of the variety of cultures and markets found in Europe.

Differentiators help one to determine which particular industry or geographic segments are a firm's prime competitive arenas.

Differentiation means that the firm seeks to make its products at the lowest cost possible relative to its competitors while maintaining a quality that is acceptable to consumers.

Purchasing, logistics, inventory, and customer service form the key value-chain activities of an organization.

Vehicles are the means for participating in targeted arenas.

In northern England, KFC stresses gravy and potatoes, while in Thailand, it offers fresh rice with soy or sweet chili sauce. This is an example of a global strategy.

Only the primary activities make up a firm's value chain.

Economies of scope are similar in concept to economies of scale.