MGT 302 CHAPTER 13 QUIZ

MGT 302 CHAPTER 13 QUIZ 1. Profitability is calculated by dividing the total sales of the firm by total invested capital. False 2. Firms usually respond to pressures for cost reduction by trying to lower the costs of value creation. 3. Firms that pursue a transnational strategy are trying to simultaneously do many things. Which of the following is one of those things? Foster a multidirectional flow of skills between different subsidiaries. 4. Responding to pressures to be locally responsive requires a firm to standardize its products. False 5. Which of the following is true about core competence? Core competence skills are typically expressed in product offerings that other firms find difficult to match or imitate. 6. Superior value creation relative to rivals does not necessarily require a firm to have the lowest cost structure in an industry, or to create the most valuable product in the eyes of consumers. True 7. When a firm creates a global web of value creation activities, the company disperses different stages of the value chain to those locations in the world where perceived value is maximized or where the costs of value creation are minimized. True 8. Firms usually respond to pressures for cost reduction by trying to lower the costs of value creation. 9. Which of the following is less likely to add to the pressure for a firm to be locally responsive? Switching costs for consumers 10. Which strategy makes most sense when there are strong pressures for cost reductions and minimal demands for local responsiveness? Global standardization strategy