International Business Strategy
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Course Introduction
International Business Strategy explores the frameworks, tools, and concepts essential for firms operating and competing in the global marketplace. The course examines how multinational enterprises develop and implement strategies across diverse countries and cultures, considering factors such as market entry modes, cross-border competitive dynamics, global value chains, and the adaptation of products and services to local markets. Emphasis is placed on analyzing risks and opportunities in international environments including economic, political, legal, and ethical challenges while evaluating how firms leverage resources, capabilities, and global networks to achieve sustainable competitive advantage.
Recommended Textbook
Strategic Management Theory An Integrated Approach 12th Edition by Charles
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Page 2
W. L. Hill
Chapter 1: Strategic Leadership: Managing the Strategy
Making Process for Competitive Advantage
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Sample Questions
Q1) _____ refers to the investment that shareholders make in a company that cannot be recovered if the company fails and goes bankrupt.
A)Profitability
B)Shareholder value
C)Debt
D)Risk capital
E)Dividend payments
Answer: D
Q2) Which of the following statements is true about competitive advantage?
A)It is unaffected by the strategies taken by the company.
B)It is considered to be sustained when it lasts for three months.
C)It exists only when the company's profitability is greater than the ten highest grossing firms in the world.
D)It exists only when the company's profitability is greater than the average profitability and profit growth of its rivals.
E)It is seldom affected by the business model of the company.
Answer: D
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Chapter 2: External Analysis: The Identification of Opportunities and Threats
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Sample Questions
Q1) Philip Morris capitalized on the growing health consciousness trend when it acquired Miller Brewing Company,and then redefined competition in the beer industry with its introduction of low-calorie beer (Miller Lite).This health trend represents a _____force.
A)social
B)political
C)legal
D)technological
E)demographic
Answer: A
Q2) Threats arise when conditions in the external environment endanger the integrity and profitability of a company's business.
A)True
B)False
Answer: True
Q3) The risk of entry by potential competitors is a function of the height of the barriers to entry.
A)True
B)False
Answer: True
Page 4
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Chapter 3: Internal Analysis: Resources and Competitive Advantage
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Sample Questions
Q1) Explain how tangible and intangible resources and capabilities can lead to distinctive competencies.Give specific examples.
Answer: A firm's unique resources and capabilities that are difficult to imitate can serve as a source of strength in efficiency,quality,innovation,and responsiveness.When a firm has a strength in one of these areas and that strength is greater than that of competitors',then the firm has a distinctive competency in that area.This means that the firm will be able to sell its products for a higher price than its rivals' products (differentiation)or will be able to reduce costs more than its rivals (cost leadership).If the firm can sustain the differentiation or cost leadership over time,it has a sustainable competitive advantage over rivals.To give just one example,ExxonMobil owns more of the worldwide rights to oil-producing properties than any other firm,which is a tangible resource that is fairly difficult to imitate.This allows ExxonMobil to produce oil more efficiently than its rivals because its economies of scale are high.
Q2) The price a company charges for a good or service is typically more than the utility placed on that good or service by the customer.
A)True
B)False
Answer: False
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Chapter 4: Building Competitive Advantage Through Functional Level Strategies
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Sample Questions
Q1) Learning effects:
A)result in unit manufacturing costs increasing by a certain amount each time output is increased.
B)suggest that production costs increase because of increasing labor productivity.
C)are more significant when simple steps in an assembly process are performed over and over again.
D)are more significant when a technologically complex task is repeated.
E)lead to diseconomies of scale.
Q2) Product attributes that collectively define product excellence include the form,features,performance,durability,and styling of the product.
A)True
B)False
Q3) Through efficient logistics at Grasshopper Grocers,the stock in the stores is automatically replenished when the company receives an alert from customers that their stock is low.Management at Grasshopper Grocers uses a just-in-time inventory system.
A)True B)False
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Chapter 5: Business Level Strategy
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Sample Questions
Q1) Differentiation can help a company to grow overall demand and capture market share from its rivals.
A)True
B)False
Q2) The term value innovation is used to describe:
A)the way a company decides to group customers based on important differences in their needs to gain a competitive advantage.
B)a business's overall competitive theme, the way it positions itself in the marketplace to gain a competitive advantage, and the different positioning strategies that can be used in different industry settings.
C)what happens when innovation pushes out the efficiency frontier in an industry, allowing for greater value to be offered through superior differentiation at a lower cost than was previously thought possible.
D)what happens when a company decides to ignore different segments, and produce a standardized product for the average consumer.
E)what happens when a company decides to serve many segments, or even the entire market, producing different offerings for different segments.
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Chapter 6: Business Level Strategy and the Industry Environment
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Sample Questions
Q1) Which of the following is a disadvantage of franchising?
A)It restricts the franchisor from expanding.
B)It results in the franchisor taking all the financial burden of the franchisees.
C)It results in the delegation of authority to franchisees, and the franchisor may not enjoy complete control.
D)It does not provide sufficient incentive to the franchisees to run operations effectively because franchisees are not entrepreneurs.
E)It requires the franchisees to create a new business model and plan strategies.
Q2) The first group of customers to enter the market for a new product are called: A)laggards.
B)late majority.
C)innovators.
D)early majority.
E)passive shoppers.
Q3) A divestment strategy's success is often dependent upon good timing.
A)True
B)False
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Chapter 7: Strategy and Technology
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Sample Questions
Q1) Cell phone technology is replacing traditional wired phone technology.This is an example of a(n):
A)first-mover advantage.
B)technological paradigm shift.
C)format war.
D)complementary product.
E)embryonic industry.
Q2) Which of the following statements is true about new entrants in the context of a technological paradigm shift?
A)New entrant often face the risks of product cannibalization.
B)Pressures to continue the existing out-of-date business model hamstring new entrants.
C)New entrants do not need to worry about their established customer base.
D)It is difficult for new entrants to focus all their energies on the opportunities offered by the new disruptive technology.
E)New entrants are not constrained by lack of capital.
Q3) Write as if you were an outside management consultant and advise a firm attempting to win a format war with a powerful and capable competitor.Give several options.
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Chapter 8: Strategy in the Global Environment
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Sample Questions
Q1) Global standardization strategy emphasizes customization and product differentiation.
A)True
B)False
Q2) Which of the following statements is true about international strategy?
A)It is usually adopted by companies that face intense cost pressures due to competition.
B)It makes most sense when the pressures for local responsiveness are very intense.
C)It often involves the head office retaining tight control over marketing and product strategy.
D)It often involves decentralizing product development functions such as R&D to different subsidiaries.
E)It involves extensive scope for localization and product differentiation.
Q3) Company leaders that pursue a global standardization strategy are trying to develop a business model that simultaneously achieves low costs and differentiates the product offering across geographic markets.
A)True
B)False
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Chapter 9: Corporate-Level Strategy: Horizontal Integration,
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Sample Questions
Q1) Horizontal integration may be thought of as:
A)moving into a new unrelated industry.
B)giving control to suppliers.
C)gaining control of distributors.
D)staying inside the industry in which the company currently operates.
E)combining functional units within the company.
Q2) When a company decides to expand into new industries,it must:
A)develop "multibusiness model" that justifies its entry into different businesses.
B)halt marketing activities in the current industry to avoid being associated with one specific industry.
C)select a new CEO and reappoint the board of directors.
D)create one common business model for all the industries rather than each business unit.
E)avoid talking about ways of increasing profitability in the business model.
Q3) An advantage of horizontal integration is that it can lower a company's cost structure by creating increasing economies of scale.
A)True
B)False
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Chapter 10: Corporate Level Strategy: Related and Unrelated Diversification
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Sample Questions
Q1) Stanley's services firm wants to enter an embryonic market,but it doesn't have enough cash to purchase the required assets.Which of the following strategies would you recommend to Stanley?
A)Diversify through acquisition
B)Do not diversify at all
C)Diversify with an internal new venture
D)Diversify with a joint venture
E)Diversify through vertical integration
Q2) An appropriate reason to diversify is to pool the risk from several business ventures to create a more stable income stream.
A)True
B)False
Q3) Which of the following is not a general organizational competency?
A)Entrepreneurial capabilities
B)Capabilities in organizational design
C)Superior strategic capabilities
D)Product bundling
E)Commonality
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Chapter 11: Corporate Performance, Governance, and Business Ethics
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Sample Questions
Q1) Phil is an employee at Global Tech Inc.He is considered an external stakeholder.
A)True
B)False
Q2) Which of the following statements about the Board of Directors is NOT true?
A)Board members are elected by stockholders.
B)The Board can be held legally accountable for a company's actions.
C)The Board has the legal authority to hire, fire, and compensate the CEO.
D)All the directors are full-time employees of the company.
E)Outside directors help perform the monitoring function of the Board.
Q3) When corporate CEOs and top managers use their power and control over funds to satisfy their personal desires for wealth or status,it is called:
A)on-the-job consumption.
B)greenmail.
C)information asymmetry.
D)self-dealing.
E)risk capital.
Q4) A union and the general public are examples of internal stakeholders.
A)True
B)False
Page 13
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Chapter 12: Implementing Strategy Through Organization
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Q1) In a multidivisional structure,corporate managers can compare the performance of one division to another in terms of its cost structure or the profit it generates.
A)True
B)False
Q2) Describe the roles that organizational structure,strategic control systems,and organizational culture play in strategy implementation. ?
Q3) Silica Dustcloud Inc.plans to change its organization structure from a market structure to a functional structure and create separate divisions.This change will better serve its different groups of customers.
A)True
B)False
Q4) Bradley is a new employee in the sales department at a local car dealership.In his first few months on the job,he will be learning the norms and values of the organization.This refers to organizational socialization.
A)True
B)False
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