International Business Strategy
Midterm Exam
Course Introduction
International Business Strategy explores the frameworks, concepts, and tools necessary for organizations to compete successfully in global markets. The course examines how firms develop, implement, and adapt strategies to respond to the complexities of international environments, including cultural, political, economic, and legal factors. Students will analyze case studies and real-world examples to understand market entry modes, global competitive dynamics, cross-border mergers and acquisitions, and the management of multinational operations. By the end of the course, students will be equipped to critically evaluate strategic decisions and design effective strategies for international growth and sustainability.
Recommended Textbook
Strategic Management 6th Edition by Graham Hubbard
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14 Chapters
557 Verified Questions
557 Flashcards
Source URL: https://quizplus.com/study-set/2371
Page 2
Chapter 1: What Is Strategy
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/47066
Sample Questions
Q1) What does the analysis of the current business strategy of an organisation involve?
Answer: The analysis of the current business strategy of an organisation involves assessing the statements of the organisation such as its vision and/or mission in order to understand which customers and markets it is targeting,what sustainable competitive advantage it is trying to create to deliver value to them and what position in the industry it is trying to achieve.The analysis also involves identifying the key stakeholders of the organisation and evaluating their expectations,since they are the ones who are able to influence the current and future business strategy of the organisation.To understand and assess the business strategy properly,an understanding of the history of the organisation is necessary,including an understanding of its values.
Q2) It is NOT an assumption of organisational theory that:
A)the fundamental unit of analysis is the individual
B)individuals have different attitudes due to environment and heredity
C)organisational characteristics influence individual behaviour
D)organisational goals arise from interactions between it and individuals
Answer: D
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Chapter 2: Analysing Business Strategy: Creating Value
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41 Verified Questions
41 Flashcards
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Sample Questions
Q1) A 'demand side' perspective refers to the overall demand for a particular product or service.
A)True
B)False
Answer: False
Q2) Reasons why business strategy may be misunderstood within an organisation do NOT include:
A)employees may not be interested in the business strategy
B)employees may not understand the business strategy
C)employees may not be convinced that the business strategy is right
D)employees may get mixed messages from a variety of managers
Answer: C
Q3) Only private sector organisations develop strategies.
A)True
B)False
Answer: False
Q4) Competitive advantage is not just making a profit.
A)True
B)False
Answer: True
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Chapter 3: Analysing the External Environment
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43 Verified Questions
43 Flashcards
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Sample Questions
Q1) Critical success factors vary across industries.
A)True
B)False
Answer: True
Q2) Turbulence that is characterised as discontinuous is:
A)unpredictable
B)changing incrementally at random
C)repeating past events
D)when the past is an unreliable predictor of the future
Answer: D
Q3) Using the five forces model,explain when industry profitability will be very high.
Answer: According to the five forces model,Porter found that industry profitability will be very high if:(a)the threat of new entrants is low; (b)the power of suppliers is low; (c)the power of buyers is low; (d)the power of substitutes is low;and (e)industry rivalry is low.
Q4) Industry life cycles are not similar to product life cycles.
A)True
B)False
Answer: False
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5
Chapter 4: Analysing the External Environment
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41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/47069
Sample Questions
Q1) Leonard suggested that one of the reasons why core rigidities are allowed to develop is:
A)attacking core rigidities attacks the future economic viability of the organisation
B)organisational routines easily become outmoded
C)attacking current strategic capabilities attacks the current power structure
D)habits arise from the cultural responsiveness of the workforce
Q2) Equivalent terms used by others and in practice for the word "capabilities" do not include the current terminology of:
A)Valuables
B)Competences
C)Skills
D)Resources
Q3) Assess the relevance of SWOT analysis from the 'resource-based view' of organisations.
Q4) Hubbard et al.found that winning organisations in Australia were focused on maintaining low staff turnover.
A)True
B)False
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Chapter 5: Measuring Strategic Organisation Performance
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37 Verified Questions
37 Flashcards
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Sample Questions
Q1) The studies of 'successful' organisations conclude that financial success is essential for successful organisations.
A)True
B)False
Q2) Total shareholder return is calculated as the ___ in the share price plus the ___ divided by the ___:
A) change in share price,dividends paid,closing share price
B) increase in total equity,retained earnings,opening share price
C) increase in dividends,taxation paid,return on equity
D)increase in share price,dividends paid,initial share price
Q3) You are working with your roommate on a group project about the types of indicators to include as measures for social and community performance in a sustainability report.What would you contribute to the discussion?
Q4) Criticisms of In search of excellence by Peters and Waterman did not include that it was:
A)lacking in objectivity
B)lacking in clear criteria
C)biased in its industry coverage
D)based on sound methodology
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Chapter 6: GAP Analysis and Business-Level Strategic Options
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41 Verified Questions
41 Flashcards
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Sample Questions
Q1) The circumstances that may justify unrelated diversification are:
A)counter-intuitive diversification
B)counter-cyclical diversification
C)excess industry capacity in existing and related industries
D)opportunity to use scarce,difficult to imitate organisational capabilities
Q2) In order to adopt 'premium pricing' strategy,it is important not to view organisational products and services as 'commodities'.
A)True
B)False
Q3) Hart argued that there are three possible green sustainability strategies: pollution prevention,product stewardship and sustainable development.
A)True
B)False
Q4) A current competitive strength may disappear because of:
A)future competitor responses
B)changes in technology
C)the organisation's own complacency
D)all of the above
Q5) Describe how to build a well-defined business model.
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Chapter 7: Strategic Decision-Making
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38 Verified Questions
38 Flashcards
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Sample Questions
Q1) The group of individual factors suggested as limitations on rational decision-making do NOT include:
A)bounded rationality,ethics,emotions
B)ambiguity,reality
C)interpretation,intuition
D)decision-making rules
Q2) 'If a critical decision has to be made,give me a strong leader over a senior management committee any day!' Do you agree or disagree? Discuss and give reasons for your answer.
Q3) Complete the statement 'Rational decision-making is based on a ___ approach (i.e.how decisions ___ made).This contrasts with a ___ approach.'
A)positivist,might be,normative
B)normative,should be,and intuitive
C)reasonable,are actually,positivist
D)deductive,might theoretically be,inferential
Q4) What are the keys that help in avoiding catastrophic errors that lead to business failure?
Q5) What are the steps in the development of good strategy?
Q6) The rational model of decision-making is not always used by managers.Why?
Page 9
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Chapter 8: Dynamic Competitive Strategy
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39 Verified Questions
39 Flashcards
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Sample Questions
Q1) Hubbard,Rice and Galvin describe the prisoner's dilemma as a:
A)one-player,single payout objective,two-shot,simultaneous action game
B)sequential action,two-player,multiple payoffs,shotgun game
C)single playoff,multiple objectives,subjective action
D)one-shot,two-player,sequential action,single payoff objective game
Q2) Major oil producers' attempts to expand their oil production and renewable energy sources are an example of their:
A)simultaneous and sequential strategic moves
B)simultaneous strategic moves
C)sequential strategic moves
D)none of the above
Q3) One of the main principles of game theory is to consider the unexpected reactions of the competitors.
A)True
B)False
Q4) Define and explain D'Aveni's 'hypercompetition' concept.What are the major competitive arenas for it to occur?
Q5) Describe the PARTS model set forth by Nalebuff and Brandenburger.
Q6) Consider the relevance of game theory in understanding business strategy.
Page 10
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Chapter 9: Corporatemulti-Business Strategy
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) The GE business strength-industry attractiveness matrix:
A)has 16 cells
B)has two axes with factors determined by General Electric's CEO Jack Welsh
C)incorporates the PIMS data gathered from a wide range of US businesses
D)allows weights to be applied to each factor to obtain an 'objective' assessment
Q2) ___ is the extent to which the organisation can use the capabilities that it already has in other businesses:
A)Economies of scale
B)Economies of scope
C)Capability development
D)None of the above
Q3) Compare the BCG and GE tools and contrast their relative strengths and weaknesses as analytical devices.
Q4) The first golden rule of corporate strategy suggests that the corporate centre's value creation should be equal to the coordination costs.
A)True
B)False
Q5) What are the possible reasons for a single business wanting to diversify?
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Chapter 10: Acquisitions and Alliances
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41 Verified Questions
41 Flashcards
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Sample Questions
Q1) It is essential to acquire 50.1% of the shares to acquire another organisation.
A)True
B)False
Q2) Identify the reasons for creating joint ventures.
Q3) Joint venture is NOT used to achieve which of the following purposes:
A)strengthening the firm's existing business
B)taking the firm's existing products into new markets
C)obtaining new products that can be sold in the firm's existing markets
D)controlling the business of the partners
Q4) The objective of preservation acquisition is to preserve the green credentials of the acquired organisation.
A)True
B)False
Q5) In many industries,the winners will be the companies that:
A)avoid joint ventures because they are difficult to manage
B)only form partnership with companies which know how to manage joint ventures successfully
C)outsource the management of joint venture
D)most quickly learn to manage joint venture effectively
Q6) Explain what causes acquisitions to occur in waves and give examples.
Page 12
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Chapter 11: International Strategy
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35 Verified Questions
35 Flashcards
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Sample Questions
Q1) For strategic exporters,Stace suggests that:
A)firms have a clear strategic focus on export markets
B)firms target only export markets
C)pricing in export markets yields lower strategic returns,or even losses at least in the short run
D)firms price to sell production in excess of the needs of the domestic market so long as these sales make a contribution to fixed overhead and profit
Q2) Stopford and Wells found that firms may transition from an international division form to the use of a:
A)worldwide product division
B)area division
C)both of the above
D)none of the above
Q3) How to share the profits between joint venture partners is often difficult.
A)True
B)False
Q4) Discuss the strategic options for internationalisation of organisations in smaller countries.
Q5) Describe the four alternative approaches used to manage worldwide operation.
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Chapter 12: Capabilities, Systems and Structure
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39 Verified Questions
39 Flashcards
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Sample Questions
Q1) The elements of the Hubbard et al.model of strategy implementation are:
A)environment,capacities,leadership,culture,structure,systems,strategy,tactics
B)structure,systems,strategy,people,environment,capabilities,leadership,culture
C)strategy,process,environment,capabilities,leadership,capacities,structure,systems
D)leadership,culture,structure,systems,strategy,people,environment,differentiation
Q2) Simons argued that control is necessary to balance the competing tensions in an organisation because of:
A)unlimited attention spans of managers/limited opportunities for the organisation
B)intended strategy/deliberate strategy
C)self-interest of individuals/the desire to contribute,achieve and create
D)none of the above
Q3) Information systems determine what the organisation is told about what is happening.
A)True
B)False
Q4) Is outsourcing an ethical practice? Discuss.
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Page 14
Chapter 13: Leadership, People and Culture
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43 Verified Questions
43 Flashcards
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Sample Questions
Q1) Sustainability is an element of implementation,but not a criterion for decision-making about implementation choices.
A)True
B)False
Q2) Hubbard,Rice and Galvin suggest that leadership style will vary when:
A)the organisation lacks the time and resources to make the change
B)change is being forced from within C)change is being forced from the outside
D)the environment is simultaneously stable and turbulent
Q3) Hubbard,Rice and Galvin define culture as the underlying ___,___ and ___ that affect how the ___ of the organisation should be conducted - '___ we ___ around here':
A)cost,benefits,relationships,business,what,do to achieve goals
B)values,beliefs,patterns of behaviour,operations,how,do things
C)hopes,fears,desires,affairs,who,admire
D)opinions,good,bad,activities,what,value
Q4) Finkelstein suggests that leaders fail because they overreact to environmental challenges.
A)True
B)False
Page 15
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Chapter 14: Change Management
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39 Verified Questions
39 Flashcards
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Sample Questions
Q1) Hubbard,Rice and Galvin describe 'transformational change' as a process that seeks to transform:
A)one aspect of how the organisation operates
B)some or all aspects of how the organisation operates
C)both of the above
D)none of the above
Q2) Pfeffer and Sutton noted the importance of action over the role of talking - what they called the:
A)'doing-talking' trap
B)'knowing-unknowing' trap
C)'doing-knowing' trap
D)'knowing-doing' trap
Q3) Under a cognitive perspective,change requires no modification in managerial and employee cognition before any behavioural change will occur.
A)True
B)False
Q4) Explain punctuated equilibrium change and what the model suggests regarding change in industries.
Q5) Explain the cognitive perspective of change.
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