International Business Strategy Exam
Review
Course Introduction
International Business Strategy explores the frameworks, concepts, and tools necessary for organizations to compete effectively in the global marketplace. The course examines the strategic decisions companies face when entering and operating in foreign markets, including market selection, entry modes, competitive positioning, and adaptation versus standardization. Students will analyze real-world cases to understand how cultural, economic, political, and legal environments impact international operations, and evaluate strategies for managing risk, creating value, and achieving sustainable competitive advantage in diverse international contexts.
Recommended Textbook
Strategic Management 4th Edition by Frank Rothaermel
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12 Chapters
1217 Verified Questions
1217 Flashcards
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Page 2
Chapter 1: What Is Strategy
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Sample Questions
Q1) True Help is a nonprofit organization that works toward rehabilitating the homeless. The credo of the organization is "help us help you." For an organization like True Help, which of the following statements would make an appropriate mission?
A) Help us help you find a home.
B) One day, everyone in this nation will have a home to protect themselves.
C) We help the homeless gain and sustain financial independence by providing employment opportunities.
D) Our mission is to turn this not-for-profit organization into a for-profit organization so that the stakeholders benefit.
Answer: C
Q2) A firm that achieves superior performance relative to other firms in the same industry or the industry average has a(n)
A) competitive advantage.
B) balanced scorecard.
C) power position.
D) equity leverage.
Answer: A
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Page 3
Chapter 2: Strategic Leadership: Managing the Strategy Process
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101 Verified Questions
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Sample Questions
Q1) A firm is embedded in a multifaceted exchange relationship with a number of diverse internal and external stakeholders. Elaborate on this statement and provide multiple examples of the exchange relationship between a firm and its stakeholders including what each party contributes.
Answer: All stakeholders make specific contributions to a firm, which in turn provides different types of benefits to different stakeholders. Employees contribute their time and talents to the firm, receiving wages and salaries in exchange. Shareholders contribute capital in the hope that the stock will rise and the firm will pay dividends. Communities provide real estate, infrastructure, and public safety. In return, they expect that companies will pay taxes, provide employment, and not pollute the environment. The firm, therefore, is embedded in a multifaceted exchange relationship with a number of diverse internal and external stakeholders. If any of the stakeholders withholds participation in the firm's exchange relationships, it can have severe negative performance implications.
Q2) Define strategic leadership.
Answer: Strategic leadership pertains to executives' use of power and influence to direct the activities of others when pursuing an organization's goals.
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Page 4
Chapter 3: External Analysis: Industry Structure,
Competitive Forces, and Strategic Groups
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Sample Questions
Q1) The internet service provider industry in the country of Megalopolis is an industry characterized by the presence of strong network effects, high brand loyalty, high economies of scale, and proprietary technology among incumbent firms. Thus, in the internet service provider industry, the
A) threat of substitutes is most likely high.
B) threat of new entrants is most likely low.
C) bargaining power of buyers is most likely low.
D) entry barriers are most likely nonexistent.
Answer: B
Q2) Luz manages a chain of bars and restaurants in a tri-county area that has recently experienced an economic boom because of fracking and high oil prices. What is most likely to happen when there is too much money in the tri-county economy?
A) too many goods and services
B) a drop in interest rates
C) high economic growth
D) an increase in prices
Answer: D
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5
Chapter 4: Internal Analysis: Resources, Capabilities, and Core Competencies
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Sample Questions
Q1) In the context of SWOT analysis, which of the following best exemplifies a firm's external opportunity?
A) an increase in its financial resources
B) an increase in its brand equity
C) an increase in its customers' disposable income
D) an increase in its employee productivity
Q2) Riya has recently started a restaurant in a commercial area that already has many other established restaurants and popular fast-food chains. Riya owns the building in which her restaurant is located, rather than leasing premises as her competitors do. This factor allows her to offer her products at a more competitive price. Riya has also invested a huge amount in designing the restaurant's interior and in equipping the kitchen with the appliances that are most widely used in her industry. In this scenario, which of the following is the most valuable resource for Riya's business?
A) the investments made by Riya on the restaurant's interior
B) the type of kitchen equipment widely used in her industry
C) the restaurant's late entry into the market
D) the building owned by Riya, which reduces cost of operations
Q3) Provide examples of the secondary activities in a firm's value chain.
Q4) Briefly describe the VRIO framework.
Page 6
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Chapter 5: Competitive Advantage, Firm Performance, and Business Models
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Sample Questions
Q1) Which of the following approaches to assess competitive advantage is based on the view that noneconomic factors can have a significant impact on a firm's financial performance?
A) the triple-bottom-line approach
B) the economic value creation framework
C) the accounting profitability approach
D) the balanced-scorecard
Q2) ________, which is the return on risk capital, includes stock price appreciation plus dividends received over a specific period.
A) Total return to shareholders
B) Earnings per share
C) Receivables turnover
D) Dividend yield
Q3) The ratio Cost of goods sold/Revenue indicates how efficiently a company can
A) produce a good.
B) sell a good.
C) advertise a good.
D) design a good.
Q4) What are opportunity costs in general? What are the opportunity costs for entrepreneurs?
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Chapter 6: Business Strategy: Differentiation, Cost
Leadership, and Blue Oceans
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Sample Questions
Q1) When a firm combines experience based learning and process innovation, the firm
A) jumps to a steeper learning curve.
B) experiences an increase in per-unit cost.
C) loses its competitive advantage.
D) moves down the existing learning curve.
Q2) The strategy canvas for movie theaters includes factors such as prices, comfort, customer service, concessions variety, and hours of operation. Which of the following value curves is most likely to represent a theater that successfully positions itself as a differentiator?
A) high price, high comfort, high customer service, high concessions variety, low hours of operation
B) low price, high comfort, high customer service, high concessions variety, low hours of operation
C) high price, low comfort, low customer service, high concessions variety, low hours of operation
D) low price, low comfort, low customer service, low concessions variety, low hours of operation
Q3) List how economies of scale contribute to a firm.
Q4) How does process innovation benefit a firm?
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Chapter 7: Business Strategy: Innovation, Entrepreneurship, and Platforms
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Sample Questions
Q1) Streaming video services replacing brick-and-mortar video rental stores would be an example of a(n)
A) regressive innovation.
B) radical innovation.
C) architectural innovation.
D) disruptive innovation.
Q2) Why do incumbent firms favor incremental innovation over radical innovation?
Q3) When the market for standalone Global Positioning System (GPS) devices declined with the arrival of GPS-enabled mobile phones, Magnet Inc., a manufacturer of GPS devices, bought out most of its rivals that were planning to exit. This allowed the company to get rid of all the excess capacity and acquire a monopolistic market power in the declining industry. Which of the following strategies has Magnet adopted in this scenario?
A) harvest strategy
B) maintain strategy
C) consolidation strategy
D) differentiation strategy
Q4) Discuss the differences between pipeline businesses and platform businesses in terms of the value chain.
Q5) What are the competitive benefits that first movers in an industry experience?
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Chapter 8: Corporate Strategy: Vertical Integration and Diversification
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Sample Questions
Q1) The Martinez Legal Firm (MLF) recently acquired a smaller competitor, Miller and Associates, which specializes in issues not previously covered by MLF, such as land use and intellectual property cases. Given the increase in the firm's size and complexity, it is likely that its internal transaction costs will
A) decrease.
B) increase.
C) become external transaction costs.
D) be eliminated.
Q2) Hiku Inc. developed a superior touch screen technology for tablet computers that enabled multiple users to operate the screen at the same time. The technology was leased to Broadway Technologies, a consumer electronics company, for five years. Which of the following alternatives to integration does this best illustrate?
A) licensing
B) franchising
C) crowdsourcing
D) bootlegging
Q3) Not all firms are motivated by a need to grow.
A)True
B)False
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Chapter 9: Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions
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Sample Questions
Q1) R&M Chatelaine is one of the largest tax-preparation firms in the United States. It wants to acquire The Tax Experts, a smaller rival. After the merger, Chatelaine will be one of the two largest income-tax preparers in the U.S. market. What should Chatelaine include in its acquisition plans?
A) It should refocus its attention from the national to the international market.
B) In addition to acquiring The Tax Experts, it should also determine the best way to drive independent "mom and pop" tax preparers out of business.
C) Chatelaine will need to explain to the Federal Trade Commission how the acquisition will not result in an increase in prices for consumers.
D) Chatelaine should enter a price-based competition with its other major competitor to force it out of business and become a monopoly.
Q2) How has Kraft Foods benefited from its hostile takeover of Cadbury PLC?
A) Its main strategic focus is now on the domestic market.
B) It has opened a market that is growing slowly but has high profit margins.
C) It has access to convenience stores and a new distribution channel.
D) It gained a monopoly in the chocolate-manufacturing industry.
Q3) How does horizontal integration help firms increase differentiation?
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Page 11
Chapter 10: Global Strategy: Competing Around the World
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Sample Questions
Q1) Michael Porter's diamond framework explains
A) national value creation.
B) domestic value creation.
C) national competitive advantage.
D) domestic competitive advantage.
Q2) Badlands Corp., a tool and die maker, is considering where to locate its new factories and offices. According to the CAGE distance model, which of these countries is statistically most attractive to Badlands?
A) one that is much poorer than the country where Badlands has its headquarters
B) one that is in the same trading bloc as Badlands' home country
C) a country that does not share the same currency as Badlands' home country
D) the country that is the greatest physical distance from existing Badlands facilities
Q3) When should a firm choose exporting as a foreign entry mode?
Q4) The cultural distance between Australia and the United States is relatively high because of the physical distance between the two nations.
A)True
B)False
Q5) What products and industries does geographic distance affect the most?
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Chapter 11: Organizational Design: Structure, Culture, and Control
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Sample Questions
Q1) The most important yet least visible element of organizational culture is A) values.
B) norms.
C) laws.
D) artifacts.
Q2) Why is it difficult to imitate the organizational culture of firms like Southwest Airlines and Zappos?
A) Their culture reflects complex relationships with their employees, customers, and suppliers.
B) They produce products that cannot be copied easily because of their complex designs.
C) The employees in the organization themselves are unaware of the factors contributing to their organizational culture.
D) It is not commercially viable for other companies to implement the same culture.
Q3) A change in company culture is most commonly accompanied by a change in leadership.
A)True B)False
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Chapter 12: Corporate Governance and Business Ethics
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Sample Questions
Q1) How does the market for corporate control work? Provide at least one example. The example can be from your reading in this class, your reading in other classes, or your own experience.
Q2) Which of the following is true of the board of directors in a public stock company?
A) Votes at shareholder meetings determine whose representatives are appointed to the board of directors.
B) Because shareholders generally have uniform interests, the composition of the board is generally a unanimous decision.
C) The board of directors acts as a facilitator to convey interests of the stockholders to the management without any real authority.
D) The functions of the board of directors are limited to ensuring the hiring and firing of CEOs.
Q3) Why is board independence critical to effectively fulfilling a board's governance responsibilities?
Q4) How can a manager decide whether a decision is ethical?
Q5) What usually happens if a hostile takeover attempt is successful?
Q6) Discuss the agency problem of adverse selection.
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Page 14