Strategic Global Management

Multiple-choice Chapter 6 Which of the following is not true for a capability? A) it cannot be traded B) it changes over time C) it can be easily described in detail D) it can improve value Which of the following is not a necessary condition for the effective implementation of a pay for performance system? A) employees must be able to control the pace of production B) there should be a lower bound on product quality

C) managers should receive a high bonus for the piece rate work of their employees D) team members should have roughly the same preferences for effort Which of the following is not an activity in the value chain? A) outbound procurement B) marketing C) technology development D) operations Chapter 7 A key assumption underlying theories of vertical integration is: A) Opportunistic behavior B) Suppliers and buyers have the same size C) Suppliers and buyers are located in the same country D) Firms are boundaryless

In the strategic sourcing framework, firms vertically integrate when A) the firm’s need to control and its ability to perform an activity are both high B) there is high uncertainty surrounding the transaction with the supplier C) the need to control and the ability to perform the activity are uncorrelated D) the supplier has invested in high technology 14. The two most studied types of uncertainty that influence vertical integration decisions are: A) exchange rate and volume B) labor cost and technological C) material cost and labor cost

D) volume and technological The standard theory of vertical integration over the industry life cycle states A) vertical integration occurs primarily in the early and late stages B) vertical integration increases in the shakeout C) vertical integration increases throughout the life cycle D) vertical integration decreases over the life cycle Chapter 8 Which of the following is generally a motivation for the formation of technology partnerships among large firms? A) coalition formation in the context of standards competition B) sharing complementary technologies

C) interfirm learning of process innovations D) all of the above In which industry are partnerships based on patent sharing prevalent? A) data communications B) semiconductors C) biotechnology D) pharmaceuticals When does the ability of a potential partner to cooperate effectively become apparent? A) when it promises to follow the rules of the alliance B) when it is certified by an appropriate agency C) when the network of partnerships in the industry develops D) all of the above Chapter 9

A nationally segmented industry is one in which: A) country specific advantage and firm specific advantage are both high B) country specific advantage is high and firm-specific advantage is low C) country specific advantage is low and firm specific advantage is low D) none of the above Which of the following promote technological spillovers within a region? A) managerial transfers B) labor pooling C) regional associations D) all of the above Porter’s diamond model contains which of the following factors? A) technological spillovers

B) cultural constraints C) export policies D) demand conditions Chapter 10 Which types of new business will a corporation’s financial capital contribute the most to? A) larger businesses in mature industries B) smaller units in growing industries C) larger businesses in growing industries D) smaller units in mature industries Diversification paths of firms in the same industry vary across countries because: A) the resources and capabilities of the firms in the same industry differ systematically across countries

B) countries differ in the institutions that present diversification opportunities C) countries are located in different geographical locations D) the firms’ top management teams differ systematically across countries When an acquisition announcement occurs, acquisition targets often tend to: A) Enjoy a positive stock reaction B) Suffer a negative stock reaction C) Maintain their stock price D) Outsource more Chapter 11 Traditionally, firms that have grown through unrelated diversification have faced which of the following problems?

A) the businesses were managed to support short-term corporate financial goals B) the complexity of the business portfolio exceeded corporate management’s capability C) there was no enduring economic rationale at the level of operations for the business units to be in the same corporation D) all of the above A transfer using a mandated market price is most effective when the downstream unit A) is attempting to establish its market position based on a cost advantage B) is attempting to establish its market position based on a value advantage C) has already achieved a dominant market position D) has failed to achieve a dominant market position

Vertical integration, as represented among profit centers in a multi-business firm, is A) always superior to transactions in the market B) never superior to transactions in the market C) not necessarily superior to transactions in the market D) none of the above Open questions Describe the two key strategic motivations for international expansion? Why do multinationals emerge? How have Zara’s practices and policies regarding its boundaries contributed to its growth and performance? What was the source of tension between Stephen Davies and Christopher Carson in the BRL Hardy case? What are its strategic implications?