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85) A firm facing low pressures for cost reductions and low pressures for local responsiveness is
most likely to follow ________ strategy.
A) a global standardization
B) a localization
C) an international
D) a transnational
86) For firms selling a product that serves universal needs but not facing significant competition,
________ strategy makes sense.
A) a localization
B) an international
C) a transnational
D) a global standardization
87) Which of the following is true of the international strategy?
A) Product development tends to be highly decentralized.
B) Manufacturing and marketing are typically located in the headquarters location.
C) Extensive production customization is common.
D) The strategy is not viable in the long term.
88) ________ strategy customizes the product offering to local demands and increases the value of
that product in the local market.
A) A transnational
B) A global standardization
C) An international
D) A localization
89) What is strategy? How does strategy relate to a firm's profitability?
90) What is the difference between profitability and profit growth?
91) How can a firm increase its profitability?
92) Discuss the efficiency frontier. How does strategic positioning relate to the efficiency frontier?
93) Consider the firm in terms of a value chain. What is the difference between primary activities
and support activities? Provide examples of each.
94) How can the marketing and sales functions of a firm create value?
95) Describe the benefits of global expansion for firms.
96) Discuss the creation of a global web of value creation activities.
97) What are learning effects? When are learning effects most significant?
98) How can firms successfully leverage the skills developed at the subsidiary level?
99) What are the two types of competitive pressures that firms competing in the global
marketplace face? How do firms respond to these pressures?
100) Discuss how a firm's marketing strategies may have to address differences in distribution
channels in other countries.
101) Consider a transnational strategy. Why would a firm choose this strategic alternative? What
are the disadvantages of this strategy?
102) Discuss the evolution of strategy. How does cost become important in the long term?
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