Chapter 5 Multiple Choice Questions | Global Strategic Management by Philippe Lasserre

1. What are two components of ‘global positioning’ within global strategy?

Choice of countries Degree of global presence Definition of various ‘value propositions’ to customers in different countries Clear communication of the mission of the company

2. The purpose of a business strategy is:

To select products and markets To invest in new products To dominate its industry To develop a competitive business, leading to economic value creation

3. A ‘global’ player is:

A firm aiming to develop a competitive advantage in one product segment A firm aiming to tailor its products to the tastes of different regions A firm aiming to develop a competitive advantage in the key markets of the world A firm present in many countries

4. In a given industry, North America, Europe and Asia each represent 33.3% of sales. Which of the following firms would qualify as a nearly pure global firm from the point of view of the Global Revenue Index?

Firm A sales: North America=40%, Europe 30%, Asia30% Firm B sales: North America=40%, Europe 45%, Asia 15% Firm C sales: North America=35%, Europe 15%, Asia 50% Firm D sales: North America=28%, Europe 29%, Asia 32%

5. If the firms in question 4 were all from Europe which one would be the more ‘global’ according the TNI index?

Firm A Firm B Firm C Firm D

6. What constitutes the ‘strategic positioning’ part of global strategy?

Choice of business Choice of regions/countries Choice of partners Choice of an organization structure

7. In the mining industry which of the following would be a ‘key country’?

South Korea Japan Australia Germany

8. A ‘customers’ value curve’ is:

A model used by global marketing people to evaluate the economic value that a particular set of customers generate for the firm The set of cultural and emotional values that customers attach to a product or a service The price above which customers will not buy a product or a service The set of attributes that customers value when making a purchasing decision

9. A global firm’s competitive advantage can be due to (choose all that apply):

Access to resources and competences all over the world Playing a ‘global chess game’ Leveraging and transferring knowledge between different subsidiaries Benefitting from economies of scale due to its efficient manufacturing or services systems

10. What is a ‘Blue Ocean strategy’

A strategy defined “out of the blue” A strategy that looks for ‘an island of losses in an ocean of profit’ A method of formulating strategy by using colors in which blue color is ranked as the most promising A strategy looking at by-passing the existing competition and creating a new market space

11. What is a competitive advantage based on a ‘network effect’?

When a company gains advantage thanks to its network of many alliance partners When a company uses its global network of subsidiaries to achieve competitive advantage When a company sells a product that generates sales of other related products, that in turn increase the sales of the original product An advantage based on having a strong computer and telecommunication network

12. What is a ‘global chess game’?

a) A form of global strategy based on the principles of chess b) A particular form of ‘game theory’ c) A strategy based on eliminating all competitors d) A strategy of cross-subsidizing investment in one country with that in another in order to compete more effectively

13. In the ‘transfer, adapt, create’ model which of the following constitutes the ‘transfer’ of capabilities?

Global marketing policies are transferred without modification Global marketing policies are changed to fit the local environment Global marketing policies are completely redefined to fit the local environment Global marketing policies are translated into the local language

14. Rank these major obstacles to the internationalization of small and medium-sized enterprises (SMEs) from the most important obstacle to the least important;

Access to local customers
Lack of credit
Difficulty in identifying business opportunities
Lack of competitive information

1, 3, 4, 2 3, 1, 2, 4 2, 4, 3, 1 4, 2, 1, 3

15. What is ‘piggybacking’?

A financial technique to give credit to SMEsb. A way of grouping several SMEs in order to create economies of scale A way of grouping several SMEs in order to create economies of scale A way for a multinational firm to help their suppliers to set up operations close to their own subsidiaries A way for governments to help SMEs to internationalize

Chapter 5: Designing a Global Strategy