Question 1: Corporate strategy is concerned with the manner in which an organization should compete in the market.  

 1) True

 2) False

Question 2: _____ means that the firm seeks to make its products or provide its services at the lowest cost possible relative to its competitors while maintaining a quality that is acceptable to consumers.  

1)  Geographical scope

2)  Differentiation

3)  Offshoring

4)  Cost-leadership strategy

5)  Homesourcing  

Question 3: Differentiation refers to:  

1)  all the activities from the gathering of raw materials to the sale of the finished product that a business goes through to make a product.

2)  creating products or providing services at the lowest cost possible relative to its competitors while maintaining a quality that is acceptable to consumers.

3)  creating unique value for the customer through advanced technology, high-quality ingredients or components, product features, and superior delivery time.

4)  the number of similar businesses or business activities at the same level of the value chain.

5)  the cost advantages that a business obtains through expanding in size.  

Question 4: Outsourcing involves:  

1)  diversifying into a new business.

2)  the sale of products or services in one country that are sourced in another country.

3)  the company delegating an entire process to the outsource vendor.

4)  guiding the choice of markets that a firm competes in.

5)  performing a service by staff from within an organization and also by an external service provider.  

Question 5: Which of the following are what drive potential customers to choose one firm's offerings over those of competitors?  

1)  Differentiators

2)  Arenas

3)  Economic logic

4)  Staging and pacing

5)  Mission statement  

Question 6: _____ refers to the using of the organization's strengths in a way that cannot be easily duplicated by other firms or made less valuable by changes in the external environment.  

1)  Offshoring

2)  Strategy formulation

3)  Strategic intent

4)  Sustainable competitive advantage  

Question 7: An international strategy has to be adjusted to adapt, overcome, or exploit differences across countries and regions.  

1) True

2) False

Question 8: _____ refers to the most long-range planning, typically looking three years or more into the future and setting a plan for how best to position the organization to compete effectively in the environment.  

1)  Organizational design

2)  Organizing

3)  Operational planning

4)  Strategic planning  

Question 9: _____ refer(s) to the cost advantage that a business obtains through expanding in size.  

1)  Economies of scope

2)  Synergies

3)  Network externality

4)  Economies of scale  

Question 10: _____ refers to the constellation of business, corporate, and international strategy elements, which managers must consider when making decisions.  

1)  Five Forces Analysis

2)  Cluster model

3)  Strategy diamond

4)  Porter's four corners model

5)  Strategic grouping  

Question 11: In Holland, KFC makes a potato-and-onion croquette, while in France it sells pastries alongside chicken. KFC:  

1)  has centralized its business processes to enable it to provide the services mentioned.

2)  assumes that consumer needs and desires vary by country.

3)  assumes that the world is flat.

4)  sells the same products in the same way in every country.

5)  is following the cost-leadership strategy.  

Question 12: ____ refers to work that is contracted to a non domestic third party.  

1)  Home sourcing

2)  International outsourcing

3)  Open-sourcing

4)  Offshoring

5)  Importing  

Question 13  

Differentiates help one to determine which particular industry or geographic segments are a firm's prime competitive arenas.  

1) True

2) False

Question 14: Job design involves organizing jobs so that each position makes productive use of an individual's talents.  

1) True

2) False

Question 15: _____ refer(s) to efficiencies gained from demand-side changes, such as increasing the range of marketing and distribution.  

1)  Scale

2)  Value chain

3)  Cost leadership

4)  Economies of scope  

Question 16: In _____, the company takes a function out of its home country and places the function in another country, generally at a lower cost.  

1)  offshoring

2)  co-sourcing

3)  importing

4)  open-sourcing

5)  homesourcing  

Question 17: Only the primary activities make up a firm's value chain.  

1) True 

2) False

Question 18: Strategy formulation is the process of performing all the activities necessary to do what has been planned.  

1) True

2) False

Question 19: _____ strategy maximizes local responsiveness by giving decentralizing decision-making authority to local business units in each country so that they can create products and services optimized to their local markets.  

1)  Differentiation

2)  Multidomestic

3)  Global

4)  Cost-leadership

5)  Transnational  

Question 20: Dell found that it had to suspend its direct model in India for a temporary period because it needed local intermediaries to help develop both a base of business and acceptable levels of customer awareness and sophistication. This is an example of:  

1)  an organization increasing its horizontal scope.

2)  diversification.

3)  a cost-leadership strategy.

4)  international strategy accommodating local environments.

5)  an organization operating in a flat world.  

Question 21: The U.S. fast-food chain Sonic will only open new outlets in states that are adjacent to states where it already has stores. This is an example of:  

1)  differentiation.

2)  increasing vertical scope.

3)  diversification.

4)  increasing geographic scope.  

Question 22: Economies of scope are similar in concept to economies of scale.  

1) True

2) False

Question 23 : Chad's economy is dependent on oil reserves and is very sensitive to world economic cycles, commodity prices, and fluctuations in exchange rates. Hence, one could term this economy as an example of:  

1)  an innovation-driven economy.

2)  a factor-driven economy.

3)  bootstrapping

4)  venture capitalism.

5)  an efficiency-driven economy.  

Question 24: Skype Limited developed the free Internet phone technology called voice-over Internet protocol and serves as an example of:  

1)  a born-global firm.

2)  intrapreneurship.

3)  bootstrapping.

4)  angel investment.

5)  social entrepreneurship.  

Question 25: Intrapreneurship refers to a form of entrepreneurship that:  

1)  allows the hostile takeover of one organization by another.

2)  leads to the establishment of a new business.

3)  helps in the merger of two existing businesses.

4)  takes place in a business that is already in existence.

5)  helps in the demerger of an existing business.  

Question 26: A newly founded company that develops a revolutionary new way to do a particular activity and seeks to expand that new method nationally and internationally would be considered entrepreneurial.  

1) True

2) False

Question 27: The entrepreneur:  

1)  is typically the intraorganizational revolutionary.

2)  has the backing of an organization.

3)  challenges the status quo and fights to change the system from within.

4)  recognizes opportunities and uses resources to implement innovative ideas for new, thoughtfully planned ventures.

5)  operates as the profit center of an organization.  

Question 28: Early adopters are those consumers who generally wait for others to buy a new technology before they make use of it.  

1) True

2) False

Question 29: There are two phases of a global start-up assessment, which consists of deciding whether a firm should become a global start-up and what the firm needs to do to make that happen.  

1) True

 2) False

Question 30: _____ is defined as "the recognition of opportunities and the use or creation of resources to implement innovative ideas for new, thoughtfully planned ventures."  

1)  Entrepreneurship

2)  SWOT

3)  Globalization

4)  International business

5)  Intrapreneurship  

Question 31: Owner financing, sweat equity, and minimization of the accounts receivable are the different types of:  

1)  bootstrapping.

2)  venture capital financing.

3)  angel funding.

4)  hedge funding.

5)  crowd funding.  

Question 32: Which of the following is an example of an innovation-driven economy?  

1)  Argentina

2)  Brazil

3)  India

4)  The United States  

Question 33: The traditional firm:  

1)  develops strategies needed to expand abroad at the time of the firm's founding.

2)  begins with a "border less" view of the world.

3)  operates in the home country for many years and gradually evolves into international trade.

4)  focuses on achieving superior performance in international business from the inception of the firm.

5)  is defined as a business organization that, from inception, seeks to derive significant competitive advantage from the use of resources and the sale of outputs in multiple countries.  

Question 34: An entrepreneur challenges the status quo and fights to change the system from within.  

1) True

 2) False

Question 35: _____ typically enter established markets, providing a more traditional product or service to a local market.  

1)  Small-business owners

2)  Entrepreneurs

3)  Intrapreneurs

4)  Angel investors

5)  Venture capitalists  

Question 36: Born-global firms follow the traditional pattern of businesses that operate in the home country for many years and gradually evolve into international trade.  

1) True

2) False

Question 37: New-market disruption refers to:  

1)  targeting non customers to create a new market that was previously ignored by the dominant players of the existing market.

2)  disruptive technology that appears at the low end of an industry offering.

3)  the propensity to act or decide without customary analysis or sufficient information.

4)  a formal statement of a set of business goals.

5)  establishing organizations, either for-profit or nonprofit, whose focus is to implement innovative solutions to societal problems.  

Question 38: In order to operate effectively, businesses need to know that contracts are binding, that their property and intellectual property rights are protected, and that there is a fair system for handling disputes.  

1) True

2) False

Question 39: Jet Blue has focused on low-cost strategy and has been able to achieve the lowest cost position in the industry by eliminating many services. However, it has also targeted overpriced but undeserved markets. This is an example of:  

1)  a new-market disruption strategy.

2)  venture capitalism.

3)  an angel investment.

4)  a hybrid-disruption strategy.  

Question 40: The firm treats intrapreneurial teams as a cost center rather than as a profit center.  

1) True

2) False

Question 41: A _____ refers to a formal statement of a set of business goals.  

1)  strategic plan

2)  service-level plan

3)  pro-forma invoice

4)  business plan  

Question 42: Which of the following statements is true about intrapreneurs?  

1)  They are synonymous with entrepreneurs.

2)  They have lesser resources than most new ventures.

3)  They face the immediate risk of losing a paycheck.

4)  They are protected from feeling the immediate impact of failures and mistakes.

5)  They undertake projects that never lead to any kind of innovation in product or service.  

Question 43: In their book "Re-Inventing the Corporation," John Naismith and Patricia Aburdene cited _____ as a way for established businesses to find new markets and new products.  

1)  venture capitalism

2)  angel investment

3)  entrepreneurship

4)  small-business ownership

5)  bias for action  

Question 44: Innovation-driven economies are economies that are typical in countries that compete on the basis of:  

1)  unskilled labor and natural resources.

2)  cutting-edge technological know-how.

3)  business sophistication and innovation.

4)  production processes and increased product quality.

5)  advanced corporate infrastructure and business practices.