risk management
b.
strategy as action
c.
intended strategy
d.
SWOT analysis
ANSWER:
a
78. Viewing each country as a unique market and therefore somewhat isolated is known as _________, whereas ___________ sees market integration as subject to some barriers that do not totally insulate those markets.
a.
antiglobalization; localization
b.
localization; globalization
c.
globalization; semiglobalization
d.
localization; semiglobalization
ANSWER:
d
79. What did the push for hyperglobalization between 1991 and 2008 lead to in the following years?
a.
Increased positive attitudes towards globalization
b.
A backlash against globalization
c.
The end of the globalization debate
d.
More interest in semiglobalization
ANSWER:
b
80. A firm that maintains only days' or even hours' worth of inventory is most likely practicing what type of management?
a.
Global value
b.
Local value
c.
Just-in-time
d.
Just-in-case
ANSWER:
c
81. What is the difference between developed economies and emerging economies? Give examples of countries that would be considered to have developed economies and those that have emerging economies.
ANSWER:
Students may point out that the distinction between the two types of economies is typical based on a country’s annual per capita income. They may further note that about 15% of the world’s population is in the top tier of the global economy pyramid with annual per capita income greater than US$20,000, whereas about 70% at the bottom of the pyramid have annual per capita income less than US$2,000. Countries that would be considered emerging, or fast-growing, economies would include BRIC (Brazil, Russia, India, and China). Developed economies can be found in North America, Europe, and Japan.
82. How can principles of military strategy be useful in developing a global business strategy? Explain by using SWOT analysis.
ANSWER:
Students may point out that military strategy involves developing a clear idea of goals and objectives, an understanding of the barriers to achieving those objectives (such the opponents), the development of capabilities to overcome those barriers and the selection of the best alternative means of achieving the objectives under specific circumstances. Business firms can benefit by doing the same thing. They need to start by examining their current situation which includes an understanding of their internal strengths (S) and weaknesses (W) and how that can affect the strategy they use to deal with their external opportunities (O) and threats (T).
83. Describe Liddell Hart’s “strategy as action” concept. Explain Mintzberg’s theory about strategy and how it is similar to Hart’s.
ANSWER:
An answer should attribute to Hart “strategy as a set of flexible goal-oriented actions,” in which strategy is reflected by a firm’s pattern of actions in which the firm uses rapid flexible actions to avoid direct confrontation with opponents. Mintzberg recognized that intended or planned strategy may not come about exactly as planned, and in such situations emergent strategy that comes more from the bottom up in the form of decisions and responses to situations are important.
84. The text points out that not all firms should go global. In view of the vast opportunities, why should some firms not pursue international business?
ANSWER:
Many will point out that success in one market or part of the world does not assure that the firm will be able to be successful with its product and strategy in some other part. Much depends on whether it will be able to modify its product or its strategy so as to be successful in the country it seeks to enter. Timing may also be off either in terms of market readiness or development of the firm’s capabilities.
85. Describe how strategy is not “a rulebook” but rather a theory. What advantages does “strategy as theory” have?
ANSWER:
Many will point out that rulebooks are more rigid and set, less adaptable than businesses often need their strategy to be. Theory on the other hand, is an expression a collection of ideas on how to do something successfully, such as how to compete successfully in business. Effective theory-building does the following: integrates both planning and action schools; leverages the concept of theory that provides both explanation and prediction; can be replicated; and takes into consideration the difficulties of strategic change.