International Business Strategy
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Course Introduction
International Business Strategy explores the frameworks, tools, and analytical concepts essential for understanding and managing business operations across borders. The course examines how multinational corporations formulate, implement, and adapt strategies in response to global market opportunities and challenges. Topics include global industry analysis, entry modes, competitive advantage, the impact of cultural differences, international risk management, and ethical considerations in international markets. Through case studies and real-world examples, students develop the skills needed to design and evaluate strategies for successful international expansion and cross-cultural management.
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) For a firm that operates in an industry where competition is high, which of the following practices will result in inferior performance?
A) choosing a distinct but different strategic position in the industry
B) working toward increasing the difference between value creation and cost
C) trying to be everything to everybody by combining different competitive strategies
D) focusing on creating value for customers rather than destroying rivals
Answer: C
Q2) Noodles 2 Go and Sal's Trattoria are two restaurants serving Italian cuisine. While Noodles 2 Go focuses on providing quick, affordable pasta dishes for the lunch crowd, Sal's Trattoria focuses on serving home-style dishes in an upscale, romantic setting. Both companies have been able to gain a competitive advantage. This is most likely because the companies have
A) benefitted from economies of scale.
B) entered into a cartel arrangement.
C) pursued distinct strategic positions.
D) engaged in direct imitation and substitution.
Answer: C
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Chapter 2: Strategic Leadership: Managing the Strategy Process
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Sample Questions
Q1) The CEO of Mabel Automobiles was the child of parents who had difficulty making enough money to support their family. As a result, he and his siblings did not have access to many advantages that children from wealthier families had. This CEO, therefore, emphasized making affordable, low-maintenance vehicles that could be bought by low-income households. Which of the following does this example demonstrate?
A) dominant strategic planning
B) Level-5 leadership pyramid
C) upper-echelons theory
D) scenario planning
Answer: C
Q2) A surprise event that leads to a change in strategic initiatives, such as the accidental discovery of a new use for an existing product, is known as serendipity.
A)True
B)False
Answer: True
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Page 4
Chapter 3: External Analysis: Industry Structure,
Competitive Forces, and Strategic Groups
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Sample Questions
Q1) Three large firms dominate the telecommunication industry of United Canava: AD Telecom Inc., Mystic Telecom Corp., and Total Talk Inc. Instead of cutting prices competitively, these firms have resorted to non-price competition through branding and product differentiation. Which of the following industry competitive structures are these companies most likely in?
A) monopoly
B) perfect competition
C) monopolistic competition
D) oligopoly
Answer: D
Q2) Samsung and Google cooperate as complementors to compete against Apple's strong position in the mobile device industry, while at the same time Samsung and Google are increasingly becoming competitive with one another. This scenario best illustrates the process of
A) co-opetition.
B) perfect competition.
C) monopolization.
D) conglomeration.
Answer: A
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Chapter 4: Internal Analysis: Resources, Capabilities, and Core Competencies
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Sample Questions
Q1) Igor's Furniture has seen its profit margins shrink over the past several years as increased competition has driven down furniture prices. You have been tasked with improving the company's margins. Which of the following approaches makes the most sense within the context of strategic activity systems?
A) Go against the trend and raise prices.
B) Install modern manufacturing equipment to improve efficiency.
C) Increase spending on online marketing efforts.
D) Focus on imitating the most successful products of competitors.
Q2) Elaborate on the dynamic capabilities perspective of competitive advantage.
Q3) A firm will fail to create a sustained competitive advantage when the
A) fit between its internal strengths and the external environment is static.
B) source of its competitive advantage is causally ambiguous.
C) source of its competitive advantage is socially complex.
D) resource bundles exhibit heterogeneity and immobility.
Q4) Briefly describe the VRIO framework.
Q5) Differentiate between a firm's resources and capabilities.
Q6) Provide examples of the primary activities in a firm's value chain.
Q7) Elaborate on the drawback of SWOT analysis with the help of an example.
Q8) Differentiate resource stocks from resource flows with the help of the bathtub metaphor. Page 6
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Page 7
Chapter 5: Competitive Advantage, Firm Performance, and Business Models
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Sample Questions
Q1) In an economic context, strategy for producers is primarily about
A) distributing the economic value created equally between consumers and themselves.
B) reducing the difference between consumer's willingness to pay for a product and the cost to produce it.
C) capturing the economic value created as much as possible.
D) lowering producer surplus and increasing consumer surplus.
Q2) Generally speaking, a firm will create value if its return on invested capital (ROIC) is less than the cost of capital.
A)True
B)False
Q3) ________ is a business model in which the manufacturer sets a fixed price on a product, but the retailer is free to set it's own price.
A) Agency
B) Freemium
C) Bundling
D) Wholesale
Q4) Discuss the limitations associated with using accounting data to measure competitive performance.
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Chapter 6: Business Strategy: Differentiation, Cost
Leadership, and Blue Oceans
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Sample Questions
Q1) Which of the following is an accurate statement about learning effects?
A) Learning effects are captured at one point in time.
B) Learning effects occur over time as output accumulates.
C) Learning effects are significant in all production processes.
D) Learning effects can produce diseconomies.
Q2) Which of the following provides an example of a firm in a red ocean?
A) Chique Apparel offered clothing at a low price but failed to differentiate its product as being exclusive.
B) Cheap Apparel offered clothing at a price matching that of its competitors and, as a result, it had lower profit margins.
C) Goode Apparel offered clothing at a mid-range price but failed to differentiate its product as being of decent quality.
D) Top Drawer Apparel offered clothing at a higher price than competitors and, as a result, failed to make a profit.
Q3) List how economies of scale contribute to a firm.
Q4) What is required for a blue ocean strategy to succeed?
Q5) A cost leader is the firm most likely to survive a price war.
A)True
B)False
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Chapter 7: Business Strategy: Innovation, Entrepreneurship, and Platforms
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Sample Questions
Q1) GoodGear is a mobile platform that matches independent fashion designers with consumers who want a personalized wardrobe. Which of the following initiatives would best allow GoodGear to fine-tune its offerings to better meet the needs of its consumers?
A) allowing users to provide feedback to producers on the style and fit of clothing
B) conducting anonymous phone surveys about consumers' fashion preferences
C) hiring an outside consultant to evaluate the offerings of GoodGear's producers
D) studying the financial records of various fashion design companies to determine trends
Q2) As a research scholar, Denise had built a helicam as part of her project. The helicam could capture aerial images. Realizing the potential use of this product in movie production and military and rescue operations, she started a new venture where she could customize these helicams to fit the specific needs of the buyers and sell them. Denise can be best described as a(n)
A) entrepreneur.
B) category captain.
C) franchisor.
D) early adopter.
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Chapter 8: Corporate Strategy: Vertical Integration and Diversification
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Sample Questions
Q1) Which of the following stakeholders of a company would most likely be responsible for formulating a corporate strategy?
A) the first-line employees
B) the creditors
C) the chief executive officer
D) the middle manager
Q2) Mondo Tacos, a fast food restaurant, operates through a business model in which individuals can buy the rights to set up Mondo Taco stores and sell the company's food in return for a lump sum fee at the beginning of the contract and a percentage of revenues every month. The owners of the stores have to offer a menu approved by the company's headquarters and also maintain consistent customer service as expected in its flagship store. Which of the following alternatives to integration does this best illustrate?
A) crowdsourcing
B) credit rationing
C) franchising
D) bootstrapping
Q3) What are the three types of specialized assets?
Q4) Discuss the application of the core competence-market matrix.
Q5) What is a conglomerate? How does it benefit from a diversification strategy?
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Chapter 9: Corporate Strategy: Strategic Alliances, Mergers, and Acquisitions
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Sample Questions
Q1) Which of the following statements is true of an equity alliance?
A) An equity alliance is based on contractual agreements rather than partial ownership.
B) In an equity alliance, the partners frequently exchange personnel to make the acquisition of tacit knowledge possible.
C) In an equity alliance, a standalone organization is created that is jointly owned by two or more parent companies.
D) An equity alliance creates weaker ties between the alliance partners when compared to a non-equity alliance.
Q2) A company that wants to enter a new geographic market within China or Saudi Arabia should avoid joint ventures with companies that are based in that country. Partnering with a foreign entity props up that entity's business rather than weakening it through competition.
A)True
B)False
Q3) How can strategists decide between borrowing and buying the resource in question?
Q4) Describe an equity alliance with the help of an example.
Q5) Elaborate on the real-options perspective.
Page 12
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Chapter 10: Global Strategy: Competing Around the World
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Sample Questions
Q1) What is meant by cultural distance? How does it affect a firm? Use a real-life example of a business affected by cultural difference. The example can be from your everyday life, or it can be something you have read or heard about
Q2) A trend observed during the Globalization 3.0 stage involves
A) countries around the globe becoming more self-sufficient and independent.
B) multinational companies organizing as global-collaboration networks.
C) privately owned firms getting nationalized.
D) world's market economies becoming less integrated.
Q3) In recent years as economic forces have changed, many governments and multinational enterprises have been more interested in negotiating bilateral trade agreements between countries rather than multinational agreements through international agencies.
A)True
B)False
Q4) When should a multinational company pursue an international strategy?
Q5) Administrative and political distances, such as the presence or absence of colonial ties, are part of the CAGE distance framework.
A)True
B)False
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Chapter 11: Organizational Design: Structure, Culture, and Control
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Sample Questions
Q1) ________ define appropriate employee attitudes and behaviors.
A) Values
B) Artifacts
C) Appraisals
D) Norms
Q2) Why are controls like budgets and operating procedures that McDonald's implements known as input controls?
A) They are independent of an organization's culture.
B) They are implemented by corporate headquarters.
C) They are considered before employees make any decisions.
D) They are ad hoc and not codified.
Q3) When a firm diversifies into different product lines and geographies, a ________ structure is preferred.
A) simple
B) functional
C) multidivisional
D) network
Q4) What are the implications of centralization on strategic management processes in an organization?
Q5) Contrast closed and open innovation.
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Chapter 12: Corporate Governance and Business Ethics
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Sample Questions
Q1) How does a leveraged buyout affect a public company?
Q2) The root cause of the principal-agent problem between senior executives and lower-level employees can be explained by the
A) informational advantage of the lower-level employees.
B) higher number of lower-level employees than senior executives.
C) knowledge of employees regarding day-to-day tasks.
D) operational expertise of lower-level employees in concentrated areas of a particular field.
Q3) Elvira is the CEO of a firm. She has an opportunity to increase the competitive advantage of her company but is not sure if accepting the opportunity is ethical. Which of the following questions would help her decide if accepting the opportunity is ethical?
A) What are the chances that her decision to accept the opportunity will be made public?
B) How much profit would be made if she decided to accept the opportunity?
C) How would the media report her decision to accept the opportunity if it were to become public?
D) How long lasting would the competitive advantage be if she decided to accept the opportunity?
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