Chapter 12 International Strategy

What does Chandler (1990) emphasize, as important factors, in operating internationally or globally?
1. Economies of scale and economies of scope
2. Strong strategic planning and strategic positioning
3. Adjust to different national cultures, and be sensitive to the different needs and desires of new customers in new markets
4. Retain strengths developed in the home markets, when crossing borders into foreign markets
Which of these is not a market entry mode?
1. Licensing
2. Exporting
3. Overseas sales subsidiary
4. Importing
Which of these is not a motive for internationalization (Ghauri, 2000)?
1. The ambitions of managers
2. Organizational objectives
3. Bandwagoning
4. Spread risks
Which of these is a pull factor in the decision to internationalize?
1. Excess capacity
2. Competitive pressures
3. The strategic leader
4. Competitive advantage
Which of these is a push factor in the decision to internationalize?
1. Incentives
2. Home market in slowdown/saturation
3. Marketing advantage
4. Unsolicited offers
In a global context, a company with a wide geographical scope, and a broad product range, is which of the following?
1. Global/focused
2. National/focused
3. Global/diversified
4. National/diversified
In a global context, a company with a narrow geographical scope, and a narrow product range, is which of the following?
1. Global/focused
2. National/focused
3. Global/diversified
4. National/diversified
Which of the following is not seen as a reason for the success of Infosys?
1. Strong location decisions
2. Expertise in project management
3. High quality
4. Lack of dependency on large, major customers
Which one of the following was not noted by Morgan and Katsikeas (1997) as a barrier, explaining why business owners are discouraged from participating in international business.
1. Issues of strategic fit
2. Lack of opportunities
3. Inadequate resources
4. High cost base
Which of these was not noted by Little (1988), as a constraint on marketing products and services internationally?
1. Cost base issues
2. Providing after-sales services
3. Identifying opportunities
4. Availability of information
What is the nature of the direct entry approach?
1. It involves setting up a factory in the country targeted.
2. It centres on finding and appointing in-country representatives, usually in the form of agents
3. It involves setting up your own distribution network
4. It involves not giving territorial exclusivity
Which of the following, according to Morgan and Katsikeas (1997), is not a barrier that explains why business owners are discouraged from participating in international business?
1. An insufficient pool of resources can create strategic obstacles
2. A firm’s cost base, and margin, can lead to operational and logistical obstacles
3. A lack of fit, between a firm’s strategy and its environment, may result in limited knowledge of market opportunities, creating informational obstacles
4. A firm may be unable to maintain necessary interactions with key parties, because of limited resources leading to process-based obstacles
5. They all are barriers