1. The opening case is an example of how global companies hire employees locally and then train employees to work in other countries.
a. True
b. False
ANSWER: False
2. In the opening case, Samsung’s Global Strategy Group has demonstrated that cultural integration is difficult, with retention rates below two-thirds.
a. True
b. False
ANSWER: True
3. Within Samsung’s Global Strategy Group, Korean colleagues have had to change their work styles to accommodate Westernized practices.
a. True
b. False
ANSWER: True
4. As demonstrated at Samsung, it is easier for Westerners to adapt to Eastern work styles than for Easterners to adapt to Western work styles.
a. True
b. False
ANSWER: False
5. A multinational enterprise rarely engages in foreign direct investment.
a. True
b. False
ANSWER: False
6. A typical “one-size-fits-all” strategy remains the most effective for firms “going global.”
a. True
b. False
ANSWER: False
7. The current brand of “global strategy” seems relevant only for multinational enterprises from developed countries, primarily North America, Europe, and Japan.
a. True
b. False
ANSWER: True
8. In the global economic pyramid, the top tier includes the 2 billion people whose annual per capita income is greater than US$20,000.
a. True
b. False
ANSWER: False
9. Global strategy has, in the past, been primarily focused on markets that consist of those people who are in the bottom tier of the global economic pyramid.
a. True
b. False
ANSWER: False
10. A SWOT analysis resonates well with Sun Tzu’s teachings.
a. True
b. False
ANSWER: True
11. If a strategy (theory) is truly successful, it will work not just for one firm but for all others as well.
a. True
b. False
ANSWER: False
12. If done well, a SWOT analysis will turn unrealized strategies into intended strategies.
a. True
b. False
ANSWER: False
13. The two primary purposes of a theory are to explain the past and predict the future.
a. True
b. False
ANSWER: True
14. The concept of strategy as integration means that strategy is a combination of planned deliberate actions and unplanned emergent activities.
a. True
b. False
ANSWER: True
15. The quality of management practices around the world does not seem to correlate well with the level of economic development.
a. True
b. False
ANSWER: True
16. The Japanese use a formal system of interlocking business groups and relationships, known as guanxi, in determining business strategies.
a. True
b. False
ANSWER: True
17. The three key perspectives of strategy as a discipline include industry-based, resource-based, and labor-based views.
a. True
b. False
ANSWER: True
18. Companies use balanced scorecards to summarize business information into a smaller number of critical factors.
a. True
b. False
ANSWER: True
19. Determining the scope of the firm involves not only growth of the firm but also contraction.
a. True
b. False
ANSWER: True
20. The text stresses that realism indicates that all companies should “go global” and endeavor to do so as quickly as possible in view of the vast opportunities that exist.
a. True
b. False
ANSWER: False
21. The industry-based view posits that the degree of competitiveness in an industry largely determines firm performance.
a. True
b. False
a. True
b. False
ANSWER: False
2. In the opening case, Samsung’s Global Strategy Group has demonstrated that cultural integration is difficult, with retention rates below two-thirds.
a. True
b. False
ANSWER: True
3. Within Samsung’s Global Strategy Group, Korean colleagues have had to change their work styles to accommodate Westernized practices.
a. True
b. False
ANSWER: True
4. As demonstrated at Samsung, it is easier for Westerners to adapt to Eastern work styles than for Easterners to adapt to Western work styles.
a. True
b. False
ANSWER: False
5. A multinational enterprise rarely engages in foreign direct investment.
a. True
b. False
ANSWER: False
6. A typical “one-size-fits-all” strategy remains the most effective for firms “going global.”
a. True
b. False
ANSWER: False
7. The current brand of “global strategy” seems relevant only for multinational enterprises from developed countries, primarily North America, Europe, and Japan.
a. True
b. False
ANSWER: True
8. In the global economic pyramid, the top tier includes the 2 billion people whose annual per capita income is greater than US$20,000.
a. True
b. False
ANSWER: False
9. Global strategy has, in the past, been primarily focused on markets that consist of those people who are in the bottom tier of the global economic pyramid.
a. True
b. False
ANSWER: False
10. A SWOT analysis resonates well with Sun Tzu’s teachings.
a. True
b. False
ANSWER: True
11. If a strategy (theory) is truly successful, it will work not just for one firm but for all others as well.
a. True
b. False
ANSWER: False
12. If done well, a SWOT analysis will turn unrealized strategies into intended strategies.
a. True
b. False
ANSWER: False
13. The two primary purposes of a theory are to explain the past and predict the future.
a. True
b. False
ANSWER: True
14. The concept of strategy as integration means that strategy is a combination of planned deliberate actions and unplanned emergent activities.
a. True
b. False
ANSWER: True
15. The quality of management practices around the world does not seem to correlate well with the level of economic development.
a. True
b. False
ANSWER: True
16. The Japanese use a formal system of interlocking business groups and relationships, known as guanxi, in determining business strategies.
a. True
b. False
ANSWER: True
17. The three key perspectives of strategy as a discipline include industry-based, resource-based, and labor-based views.
a. True
b. False
ANSWER: True
18. Companies use balanced scorecards to summarize business information into a smaller number of critical factors.
a. True
b. False
ANSWER: True
19. Determining the scope of the firm involves not only growth of the firm but also contraction.
a. True
b. False
ANSWER: True
20. The text stresses that realism indicates that all companies should “go global” and endeavor to do so as quickly as possible in view of the vast opportunities that exist.
a. True
b. False
ANSWER: False
21. The industry-based view posits that the degree of competitiveness in an industry largely determines firm performance.
a. True
b. False