Question 1

An analysis of the forces controlled by the firm will include a situational analysis and control analysis.

Accepted Answer

An analysis of the forces controlled by the firm typically involves an internal analysis, focusing on resources, capabilities, and competencies, rather than a situational analysis and control analysis, which are broader and may include external factors.

Question 2

Value chain analysis is an assessment conducted on the chain of interlinked activities of an organization or set of interconnected organizations,intended to determine where and to what extent value is added to the final product or service.

Accepted Answer

Value chain analysis is indeed conducted to determine the value added at each stage of the chain of interlinked activities.

Question 3

International strategy involves decisions that deal with a single area,such as marketing or production.

Accepted Answer

International strategy involves decisions that deal with multiple areas, such as marketing, production, finance, and human resources, and how they interrelate across different countries and regions.

Question 4

The ultimate managers of strategic planning and strategy making are the executive board of a corporation.

Accepted Answer

The ultimate managers of strategic planning and strategy making are typically the top executives or senior management team, including the CEO, rather than the executive board. The board of directors plays a governance role, overseeing and advising on strategy, but the active management and formulation of strategy are usually the responsibility of the company's senior executives.

Question 5

Value chain analysis focuses primarily on the question,"What value does the company want to deliver to these customers?"

Accepted Answer

Value chain analysis primarily examines the activities within and around an organization, and relates them to an analysis of the competitive strength of the organization. It's about identifying ways to create more customer value, not just determining what value to deliver.

Question 6

International strategy helps firms to make choices about how to deploy scarce resources in order to achieve their international objectives.

Accepted Answer

International strategy involves making decisions about where and how to allocate resources in order to achieve an organization's global objectives. This includes choices about which countries to enter, how to enter them, and how to compete effectively in different markets.

Question 7

Although strategic planning is not a widely used management tool among global executives,according to a Bain and Company's survey there is a high level of satisfaction among those executives who do utilize strategic planning.

Accepted Answer

The answer of Although strategic planning is not a widely...

Question 8

After setting corporate objectives,the company management must define the company's vision and mission.

Accepted Answer

The company's vision and mission are typically defined before setting corporate objectives, as they provide the overarching goals and purpose that the objectives aim to achieve.

Question 9

To create a sustainable competitive advantage,an international company should try to develop competencies that are valuable,rare,difficult to imitate,and readily substitutable.

Accepted Answer

To create a sustainable competitive advantage, an international company should try to develop competencies that are valuable, rare, difficult to imitate, and not readily substitutable.

Question 10

Companies have the potential to achieve competitive advantages through leveraging their organizational knowledge across national boundaries.

Accepted Answer

By leveraging organizational knowledge across national boundaries, companies can tap into a wider pool of talent, expertise, and resources, leading to increased innovation, efficiency, and responsiveness to customers’ needs. This in turn can result in a competitive advantage over rivals who are limited by their national borders.

Question 11

According to a study by McKinsey & Company,most executives worldwide agree that environmental,social,and business trends are less critical to company strategy than was the case five years ago.

Accepted Answer

The statement contradicts the findings of the McKinsey & Company study, which stated that executives worldwide believe that environmental, social, and business trends are becoming more critical to company strategy over time, not less.

Question 12

Competencies are skills or abilities required in order to adequately complete a task.

Accepted Answer

Competencies refer to the skills, knowledge, and abilities required to perform a task or job role effectively.

Question 13

The goal of international strategy is to achieve and maintain a unique and valuable competitive position both within a nation and globally,a position that has been termed comparative advantage.

Accepted Answer

The answer of The goal of international strategy is to...

Question 14

The first step in the process of strategic planning is to define the company's business and mission.

Accepted Answer

The answer of The first step in the process of...

Question 15

The basic concept behind strategic planning is to help ensure that managers have a sound understanding of the business,the strategy,the assumptions behind the strategy,the external business environment pressures,and the company's strengths and weaknesses.

Accepted Answer

This statement is true. Strategic planning aims to equip managers with a comprehensive understanding of various aspects related to the business, including its strategy, assumptions, internal and external environment, strengths, and weaknesses.

Question 16

Global strategic plans help to ensure that decision makers have a common understanding of the business and to think through the impact of their decisions and actions firm-wide.

Accepted Answer

Global strategic plans provide a common understanding of the business and enable decision makers to consider the impact of their decisions and actions across the organization.

Question 17

Knowledge that an individual has but that is difficult to express clearly in words,pictures,or formulae,and therefore difficult to transmit to others,is called explicit knowledge.

Accepted Answer

The given statement describes tacit knowledge, not explicit knowledge. Explicit knowledge refers to knowledge that can be easily expressed and transmitted through words, pictures, or formulas.

Question 18

A broad statement that defines the organization's scope is the mission statement.

Accepted Answer

The mission statement is a broad statement that defines the organization's purpose, values, and objectives.

Question 19

Value chain linkages must be examined not merely across activities within the company but also in terms of managing relationships with external entities such as suppliers,alliance partners,distributors,or customers within and across nations.

Accepted Answer

The statement is true as value chain linkages need to be analyzed across activities within the company and outside entities such as suppliers, alliance partners, distributors, or customers across different nations.

Question 20

Objectives direct the firm's course of action,maintain it within the boundaries of the stated mission,and ensure its continuing existence.

Accepted Answer

Objectives help a firm to focus on its goals, align its resources, and guide decision-making in order to achieve its mission and ensure sustainability over time. Without clear objectives, a firm may struggle to achieve success or lose sight of its purpose.

Quiz 10: International Competitive Strategy