Question 1

When KFC decided to customize its menu options based on a particular country's preference,the company is employing a ______ strategy.

Accepted Answer

If managers decide to customize products and marketing strategies to specific national conditions,they adopt a multidomestic strategy.

Question 2

Firestone Tire and Rubber Company purchases rubber plantations in Africa so that it will have a source of supply for its tire manufacturing plants in Akron,Ohio.This is an example of:

Accepted Answer

In backward vertical integration,one firm buys another to acquire an input.

Question 3

What is the strategy of entering a new business or industry to create a competitive advantage in one or more of an organization's existing divisions or businesses?

Accepted Answer

Related diversification is the strategy of entering a new business or industry to create a competitive advantage in one or more of an organization's existing divisions or businesses.

Question 4

Apple decided to open its own Apple retail stores.This is an example of:

Accepted Answer

Forward vertical integration is a corporate-level strategy in which a company expands its business operations forward into a new industry that uses,distributes,or sells the company's products.

Question 5

If managers decide to customize products and marketing strategies to specific national conditions,they adopt a(n):

Accepted Answer

If managers decide to customize products and marketing strategies to specific national conditions,they adopt a multidomestic strategy.

Question 6

Discuss the three main steps of the planning process.

Accepted Answer

The answer of Discuss the three main steps of the...

Question 7

Allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee is referred to as:

Accepted Answer

Licensing is allowing a foreign organization to take charge of manufacturing and distributing a product in its country or world region in return for a negotiated fee.

Question 8

Selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits is referred to as:

Accepted Answer

Franchising is selling to a foreign organization the rights to use a brand name and operating know-how in return for a lump-sum payment and a share of the profits.

Question 9

What is a strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business?

Accepted Answer

A joint venture is a strategic alliance among two or more companies that agree to jointly establish and share the ownership of a new business.

Question 10

The last step of strategy implementation is:

Accepted Answer

Holding specific individuals or groups responsible for the attainment of corporate,divisional,and functional goals is the last step in implementing strategy.

Question 11

What is required of managers in order for them to perform the planning task?

Accepted Answer

The answer of What is required of managers in order...

Question 12

Two divisions of a company decide to use the same manufacturing facilities to capitalize on the organization's excess capacity and to reduce the fixed costs assigned by corporate headquarters.This is an example of:

Accepted Answer

Synergy is obtained when the value created by two divisions cooperating is greater than the value that would be created if the two divisions operated separately and independently.

Question 13

Discuss the four main reasons why planning is important to managers within organizations.

Accepted Answer

The answer of Discuss the four main reasons why planning...

Question 14

When PepsiCo purchased Frito-Lay and expanded its operations into the snack-food business,this was an example of which type of strategy?

Accepted Answer

Diversification is the corporate-level strategy of expanding a company's business operations into a new industry in order to produce new kinds of valuable goods or services.

Question 15

When expanding internationally,which way offers the least amount of risk?

Accepted Answer

Few risks are associated with exporting because a company does not have to invest in developing manufacturing facilities abroad.

Question 16

When General Electric Company expanded its operations by acquiring NBC television,this was an example of which type of strategy?

Accepted Answer

Managers pursue unrelated diversification when they establish divisions or buy companies in new industries that are not linked in any way to their current businesses or industries.

Question 17

The first step of strategy implementation is:

Accepted Answer

Allocating responsibility for implementation to the appropriate individuals or groups is the first step in implementing strategy.

Question 18

If managers decide that their organization should sell the same standardized product in each national market in which it competes,and use the same basic marketing approach,they adopt a:

Accepted Answer

If managers decide that their organization should sell the same standardized product in each national market in which it competes,and use the same basic marketing approach,they adopt a global strategy.

Question 19

When Gallo purchased a company that makes wine bottles,it was involved in:

Accepted Answer