D311 Midterm – Questions & Verified Answers (100%)
Global management requires you to Right Ans - manage differences and
similarities between cultures, systems, and regions
Global managers must Right Ans - understand how globalization affects
their economy
develop a strategy to leverage differences and build competitive advantage
identify incremental risks
Global managers enter international markets to take advantage of Right
Ans - large, untapped, or growing markets
workforce characteristics
access to capital
differences in markets
Corporate level strategy Right Ans - What business do we want to be in
(automotive, financial, etc)
Business level strategy Right Ans - Once you are in the business, what
strategy will you take?
Types of business level strategy Right Ans - Cost leadership
Differentiation
Integrated cost leadership/differentiation
Cost leadership Right Ans - Having the cheapest product
Cost NOT price, reducing costs as much as possible
Differentiation Right Ans - Having a different product that stands out so
people will pick it
Value chain Right Ans - Set of linked activities to design, make, market,
distribute and support a product
Aspects of value chain Right Ans - Configuration: which activity to do
where
Concentration: dispersed or concentrated (location adv)
Logistics: movement of goods
, Coordination: links and integration
Learning curve Right Ans - Steep = short amount of time
Shallow = long time
as time goes on, per unit cost decreases
Integration responsiveness grid Right Ans - Helps to understand how
companies react to pressure to localize on one hand and create scale
economies and utilize location advantages on the other hand
X axis on IR grid Right Ans - Industry pressure for local responsiveness
High: adaptation and decentralization are needed to offer customized
products to differing markets (different coca cola flavors)
Low: adaptation is unnecessary (generic)
Y axis on IR grid Right Ans - Industry pressure for global integration
(pressures that make strategic coordination and integration critical like
multinational customers/competitors or access to raw materials)
High: standardization and centralization is necessary
low: standardization is useful but not necessary
Integration Right Ans - Coordination of value chain activities that are
dispersed in order to take advantage of location advantages and economies of
scale
Standardization Right Ans - Bringing products and processes into
conformity with a standard in order to assure consistency, necessary for
integration (parts, shipping trays, machines, all the same)
International Corporate strategies Right Ans - Global (low, high)
Transnational (high, high)
International (low, low)
Localization (high, low)
Global strategy Right Ans - low, high
standardized products marketed with little adaptation to local conditions
captures economy of scale
works when MNE is cost leader
Global management requires you to Right Ans - manage differences and
similarities between cultures, systems, and regions
Global managers must Right Ans - understand how globalization affects
their economy
develop a strategy to leverage differences and build competitive advantage
identify incremental risks
Global managers enter international markets to take advantage of Right
Ans - large, untapped, or growing markets
workforce characteristics
access to capital
differences in markets
Corporate level strategy Right Ans - What business do we want to be in
(automotive, financial, etc)
Business level strategy Right Ans - Once you are in the business, what
strategy will you take?
Types of business level strategy Right Ans - Cost leadership
Differentiation
Integrated cost leadership/differentiation
Cost leadership Right Ans - Having the cheapest product
Cost NOT price, reducing costs as much as possible
Differentiation Right Ans - Having a different product that stands out so
people will pick it
Value chain Right Ans - Set of linked activities to design, make, market,
distribute and support a product
Aspects of value chain Right Ans - Configuration: which activity to do
where
Concentration: dispersed or concentrated (location adv)
Logistics: movement of goods
, Coordination: links and integration
Learning curve Right Ans - Steep = short amount of time
Shallow = long time
as time goes on, per unit cost decreases
Integration responsiveness grid Right Ans - Helps to understand how
companies react to pressure to localize on one hand and create scale
economies and utilize location advantages on the other hand
X axis on IR grid Right Ans - Industry pressure for local responsiveness
High: adaptation and decentralization are needed to offer customized
products to differing markets (different coca cola flavors)
Low: adaptation is unnecessary (generic)
Y axis on IR grid Right Ans - Industry pressure for global integration
(pressures that make strategic coordination and integration critical like
multinational customers/competitors or access to raw materials)
High: standardization and centralization is necessary
low: standardization is useful but not necessary
Integration Right Ans - Coordination of value chain activities that are
dispersed in order to take advantage of location advantages and economies of
scale
Standardization Right Ans - Bringing products and processes into
conformity with a standard in order to assure consistency, necessary for
integration (parts, shipping trays, machines, all the same)
International Corporate strategies Right Ans - Global (low, high)
Transnational (high, high)
International (low, low)
Localization (high, low)
Global strategy Right Ans - low, high
standardized products marketed with little adaptation to local conditions
captures economy of scale
works when MNE is cost leader
