International Business- Chapters 10 and 11Exam Questions and Answers

Strategy formulation (strategizing) - ANSWER-The process of deciding what to do. Strategy implementation - ANSWER-The process of performing all the activities necessary to do what has been planned. Business strategy - ANSWER-The ways a firm goes about achieving its objectives within a particular business. Corporate strategy - ANSWER-Addresses 3 questions: (1) In what businesses should we compete? (2) How can the parent company add value to the subsidiaries? (3) How can diversifying our business or entering a new industry help us compete in our other industries? International strategy - ANSWER-Using corporate strategy to guide the choice of which markets, including different countries, that a firm competes in. Importing - ANSWER-The sale of products or services in one country that are sourced in another country. Outsourcing - ANSWER-When a company delegates an entire process to the outsource vendor. Offhsoring - ANSWER-When the company takes a function out of its home country and places the function in another country, generally at a lower cost. International outsourcing - ANSWER-Work that is contracted to a nondomestic third party. Mission statement - ANSWER-An organization's statement of purpose and describes who the company is and what it does. Organizational values - ANSWER-Shared principles, standards, and goals. Vision statement - ANSWER-A future-oriented declaration of the organization's purpose. POLC - ANSWER-Acronym for planning, organizing, leading, and controlling; the framework used to understand and communicate the relationship between strategy formulation and strategy implementation.