{"id":6935,"date":"2021-10-11T12:54:28","date_gmt":"2021-10-11T12:54:28","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/which-one-of-the-following-is-not-a-reason-a-company-decides-to-enter\/"},"modified":"2021-10-11T12:54:28","modified_gmt":"2021-10-11T12:54:28","slug":"which-one-of-the-following-is-not-a-reason-a-company-decides-to-enter","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/which-one-of-the-following-is-not-a-reason-a-company-decides-to-enter\/","title":{"rendered":"Which one of the following is not a reason a company decides to enter"},"content":{"rendered":"
\n

Question<\/span><\/p>\n

QUESTION 1<\/span><\/p>\n

Which one of the following is not a reason a company decides to enter foreign markets?<\/span><\/p>\n

To spread business risk across a wider geographic market base<\/span><\/p>\n

To capitalize on company competencies and capabilities<\/span><\/p>\n

To achieve lower costs and enhance the firm’s competitiveness<\/span><\/p>\n

To build the profit sanctuaries necessary to wage guerrilla offensives against global challengers endeavoring to invade its home market<\/span><\/p>\n

To gain access to more buyers for the company’s products\/services<\/span><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 2<\/span><\/p>\n

The advantages of using a licensing strategy to participate in foreign markets include<\/span><\/p>\n

being especially well suited to the use of cross-market subsidization<\/span>.<\/span><\/a><\/p>\n

being able to charge lower prices than rivals<\/span>.<\/span><\/a><\/p>\n

enabling a company to achieve competitive advantage quickly and easily<\/span>.<\/span><\/a><\/p>\n

being able to leverage the company’s technical know-how or patents without committing significant additional resources to markets that are unfamiliar, politically volatile, economically uncertain, or otherwise risky<\/span>.<\/span><\/a><\/p>\n

being able to achieve higher product quality and better product performance than with an export strategy<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 3<\/span><\/p>\n

Two drawbacks of a “think local, act local” multidomestic strategy are<\/span><\/p>\n

that it is especially vulnerable to fluctuating exchange rates and that it can usually be defeated by companies employing cross-market subsidization tactics<\/span>.<\/span><\/a><\/p>\n

excessive vulnerability to fluctuating exchange rates and having to craft a separate strategy for each country market in which the company competes<\/span>.<\/span><\/a><\/p>\n

hindering a company’s transfer of competencies and resources across country boundaries (since somewhat different competencies and capabilities are likely to be employed in different host countries) and not promoting the building of a single, unified competitive advantage in all country markets where a company competes<\/span>.<\/span><\/a><\/p>\n

greater exposure to both increases in tariffs and restrictive trade barriers and added difficulty in accommodating the diverse trade restrictions and regulatory requirements of host governments<\/span>.<\/span><\/a><\/p>\n

not being able to export products manufactured in one country to markets in other countries and being largely unsuitable for competing in the markets of emerging countries<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 4<\/span><\/p>\n

The advantages of using a franchising strategy to pursue opportunities in foreign markets include<\/span><\/p>\n

having franchisees bear most of the costs and risks of establishing foreign locations and requiring the franchisor to expend only the resources to recruit, train, and support foreign franchisees<\/span>.<\/span><\/a><\/p>\n

being particularly well suited to the global expansion efforts of companies with multicountry strategies<\/span>.<\/span><\/a><\/p>\n

helping build multiple profit sanctuaries<\/span>.<\/span><\/a><\/p>\n

being well suited to companies that employ cross-market subsidization<\/span>.<\/span><\/a><\/p>\n

being well suited to the global expansion efforts of manufacturers<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 5<\/span><\/p>\n

The reasons behind the accelerating pace of globalization include<\/span><\/p>\n

countries with previously planned economies are embracing market or mixed economies<\/span>.<\/span><\/a><\/p>\n

information technology shrinks the importance of geographic distances<\/span>.<\/span><\/a><\/p>\n

ambitious growth-minded countries race to build global share<\/span>.<\/span><\/a><\/p>\n

lower barriers to international trade<\/span>.<\/span><\/a><\/p>\n

All of these<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 6<\/span><\/p>\n

A “think global, act global” approach to strategy making is preferable to a “think local, act local” approach when<\/span><\/p>\n

a big majority of the company’s rivals are pursuing localized multidomestic strategies<\/span>.<\/span><\/a><\/p>\n

country-to-country differences are small enough to be accommodated with the framework of a mostly uniform global strategy<\/span>.<\/span><\/a><\/p>\n

plants need to be scattered across many countries to avoid high shipping costs<\/span>.<\/span><\/a><\/p>\n

market growth rates vary considerably from country to country<\/span>.<\/span><\/a><\/p>\n

host governments enact regulations requiring that products sold locally meet strict manufacturing specifications or performance standards<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 7<\/span><\/p>\n

The strategic options for expansion into foreign markets include<\/span><\/p>\n

employing a franchising strategy<\/span>.<\/span><\/a><\/p>\n

maintaining a national (one-country) production base and exporting goods to foreign markets<\/span>.<\/span><\/a><\/p>\n

licensing foreign firms to produce and distribute one’s products<\/span>.<\/span><\/a><\/p>\n

establishing a subsidiary in a foreign market<\/span>.<\/span><\/a><\/p>\n

All of these<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 8<\/span><\/p>\n

Strategic alliances, joint ventures, and cooperative agreements between domestic and foreign firms are a potentially fruitful means for the partners to<\/span><\/p>\n

enter additional country markets<\/span>.<\/span><\/a><\/p>\n

gain better access to scale economies in production and\/or marketing<\/span>.<\/span><\/a><\/p>\n

fill competitively important gaps in their technical expertise and\/or knowledge of local markets<\/span>.<\/span><\/a><\/p>\n

share distribution facilities and dealer networks, thus mutually strengthening their access to buyers<\/span>.<\/span><\/a><\/p>\n

All of these<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 9<\/span><\/p>\n

Checking a diversified firm’s business portfolio for the competitive advantage potential of cross-business strategic fits entails consideration of<\/span><\/p>\n

whether the parent company’s competitive advantages are being deployed to maximum advantage in each of its business units<\/span>.<\/span><\/a><\/p>\n

whether the competitive strategies employed in each business act to reinforce the competitive power of the strategies employed in the company’s other businesses<\/span>.<\/span><\/a><\/p>\n

whether the competitive strategies in each business possess good strategic fit with the parent company’s corporate strategy<\/span>.<\/span><\/a><\/p>\n

the extent to which there are competitively valuable relationships between the value chains of sister business units and what opportunities they present to reduce costs, share use of a potent brand name, or transfer skills or technology or intellectual capital from one business to another<\/span>.<\/span><\/a><\/p>\n

how compatible the competitive strategies of the various sister businesses are and whether these strategies are properly aimed at achieving the same kind of competitive advantage<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 10<\/span><\/p>\n

Diversifying into a new industry by forming a new internal subsidiary to enter and compete in the target industry is attractive when<\/span><\/p>\n

all of the potential acquisition candidates are losing money<\/span>.<\/span><\/a><\/p>\n

it is impractical to outsource most of the value chain activities that have to be performed in the target business\/industry<\/span>.<\/span><\/a><\/p>\n

there is ample time to launch the new business from the ground up<\/span>.<\/span><\/a><\/p>\n

the company has built up a hoard of cash with which to finance a diversification effort<\/span>.<\/span><\/a><\/p>\n

none of the companies already in the industry are attractive strategic alliance partners<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 11<\/span><\/p>\n

A diversified company’s business units exhibit good resource fit when<\/span><\/p>\n

each business is a cash cow<\/span>.<\/span><\/a><\/p>\n

a company has the resources to adequately support the requirements of its businesses as a group without spreading itself too thin and when individual businesses add to a company’s overall resource strengths<\/span>.<\/span><\/a><\/p>\n

each business is sufficiently profitable to generate an attractive return on invested capital<\/span>.<\/span><\/a><\/p>\n

each business unit produces large internal cash flows over and above what is needed to build and maintain the business<\/span>.<\/span><\/a><\/p>\n

the resource requirements of each business exactly match the resources the company has available<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 12<\/span><\/p>\n

Retrenching to a narrower diversification base<\/span><\/p>\n

is usually the most attractive long-run strategy for a broadly diversified company confronted with recession, high interest rates, mounting competitive pressures in several of its businesses, and sluggish growth<\/span>.<\/span><\/a><\/p>\n

is directed at improving long-term performance by building stronger positions in a smaller number of core businesses<\/span>.<\/span><\/a><\/p>\n

is an attractive strategy option for revamping a diverse business lineup that lacks strong cross-business financial fit<\/span>.<\/span><\/a><\/p>\n

is sometimes an attractive option for deepening a diversified company’s technological expertise and supporting a faster rate of product innovation<\/span>.<\/span><\/a><\/p>\n

is a strategy best reserved for companies in poor financial shape<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 13<\/span><\/p>\n

Which of the following is an important appeal of a related diversification strategy?<\/span><\/p>\n

Represents an effective way of capturing valuable financial fit benefits<\/span><\/p>\n

Offers opportunities to transfer skills, expertise, technical know-how, or other capabilities from one business to another<\/span><\/p>\n

Offers significant opportunities to strongly differentiate a company’s product offerings from those of rivals<\/span><\/p>\n

Is more likely to pass the cost-of-entry test and the capital gains test than unrelated diversification<\/span><\/p>\n

Is typically more profitable than unrelated diversification, which is a major factor in helping related diversification pass the attractiveness test<\/span><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 14<\/span><\/p>\n

Conclusions about what the priorities should be for allocating resources to the various businesses of a diversified company need to be based on such considerations as<\/span><\/p>\n

each business’s profit and growth prospects<\/span>.<\/span><\/a><\/p>\n

industry attractiveness and competitive strength of the various businesses<\/span>.<\/span><\/a><\/p>\n

the degree of strategic fit and resource fit with other business units<\/span>.<\/span><\/a><\/p>\n

each business’s cash flow characteristics and return on capital invested<\/span>.<\/span><\/a><\/p>\n

All of these<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 15<\/span><\/p>\n

Divestiture can be accomplished by<\/span><\/p>\n

selling a business outright<\/span>.<\/span><\/a><\/p>\n

spinning the unwanted business off as a managerially and financially independent company by selling shares to the investing public via an initial public offering of stock<\/span>.<\/span><\/a><\/p>\n

spinning the unwanted business off as a managerially and financially independent company by distributing shares in the new company to existing shareholders of the parent company<\/span>.<\/span><\/a><\/p>\n

All of these<\/span>.<\/span><\/a><\/p>\n

None of these; the best and quickest ways to divest a business are either to close it or else just walk away and give the keys to creditors<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 16<\/span><\/p>\n

The one factor that is not relevant for company managers to worry about when their company has many unrelated firms, especially when they are very diverse is to<\/span><\/p>\n

stay abreast of what’s happening in each industry and subsidiary<\/span>.<\/span><\/a><\/p>\n

pick business-unit heads having requisite combination of managerial skills and know-how to motivate people<\/span>.<\/span><\/a><\/p>\n

understand the true value of strategic investment proposals by business-unit managers<\/span>.<\/span><\/a><\/p>\n

know what to do if a business unit stumbles<\/span>.<\/span><\/a><\/p>\n

rely on the skills and expertise of business-level managers to build competitive advantage<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 17<\/span><\/p>\n

The task of crafting corporate strategy for a diversified company encompasses<\/span><\/p>\n

picking the new industries to enter and deciding on the means of entry<\/span>.<\/span><\/a><\/p>\n

initiating actions to boost the combined performance of the businesses the firm has entered<\/span>.<\/span><\/a><\/p>\n

pursuing opportunities to leverage cross-business value chain relationships and strategic fits into competitive advantage<\/span>.<\/span><\/a><\/p>\n

steering corporate resources into the most attractive business units<\/span>.<\/span><\/a><\/p>\n

All of these<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 18<\/span><\/p>\n

Vertical integration strategies<\/span><\/p>\n

extend a company’s competitive and operating scope because its operations extend across more parts of the total industry value chain<\/span>.<\/span><\/a><\/p>\n

are one of the best strategic options for helping companies win the race for global market leadership<\/span>.<\/span><\/a><\/p>\n

are a cost effective means of expanding a company’s lineup of products and services<\/span>.<\/span><\/a><\/p>\n

are particularly effective in boosting a company’s ability to expand into additional geographic markets, particularly the markets of foreign countries<\/span>.<\/span><\/a><\/p>\n

are a good strategy option for improving a company’s supply chain management capabilities, pursuing efforts to remodel a company’s value chain, achieving direct control over the costs of performing value chain activities, and gaining access to buyers<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 19<\/span><\/p>\n

Once a company has decided to employ one of the five basic competitive strategies, then it must also consider such additional strategic choices as<\/span><\/p>\n

whether and when to go on the offensive and initiate aggressive strategic moves to improve the company’s market position<\/span>.<\/span><\/a><\/p>\n

whether to outsource certain value chain activities or perform them in-house<\/span>.<\/span><\/a><\/p>\n

whether to form strategic alliances and collaborative partnerships to add to its accumulation of resources and competitive capabilities<\/span>.<\/span><\/a><\/p>\n

whether to integrate forward or backward into more stages of the industry value chain<\/span>.<\/span><\/a><\/p>\n

All of these<\/span><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 20<\/span><\/p>\n

A strategic alliance<\/span><\/p>\n

is a collaborative arrangement where companies join forces to defeat mutual competitive rivals<\/span>.<\/span><\/a><\/p>\n

involves two or more companies joining forces to pursue vertical integration<\/span>.<\/span><\/a><\/p>\n

is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control, and mutual dependence<\/span>.<\/span><\/a><\/p>\n

is a partnership between two companies that is typically intended to eliminate the need to engage in outsourcing<\/span>.<\/span><\/a><\/p>\n

is usually a cheaper and more effective way for companies to join forces than is merger<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 21<\/span><\/p>\n

A blue ocean type of offensive strategy<\/span><\/p>\n

refers to initiatives by a market leader to steal customers away from unsuspecting smaller rivals<\/span>.<\/span><\/a><\/p>\n

involves a preemptive strike to secure an advantageous position in a fast-growing market segment<\/span>.<\/span><\/a><\/p>\n

entails attacking rivals head-on with deep price discounts and continuous product innovation<\/span>.<\/span><\/a><\/p>\n

involves abandoning efforts to beat out competitors in existing markets and, instead, inventing a new industry or new market segment that renders existing competitors largely irrelevant and allows a company to create and capture altogether new demand<\/span>.<\/span><\/a><\/p>\n

involves the use of surprise hit-and-run guerrilla tactics to harass money-losing rivals and drive them into bankruptcy<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 22<\/span><\/p>\n

Experience indicates that strategic alliances<\/span><\/p>\n

are generally successful<\/span>.<\/span><\/a><\/p>\n

work well in cooperatively developing new technologies and new products but seldom work well in promoting greater supply chain efficiency<\/span>.<\/span><\/a><\/p>\n

work best when they are aimed at achieving a mutually beneficial competitive advantage for the allies<\/span>.<\/span><\/a><\/p>\n

stand a reasonable chance of helping a company reduce competitive disadvantage, but very rarely form the basis of a durable competitive advantage over rivals<\/span>.<\/span><\/a><\/p>\n

are usually a company’s best approach to building a distinctive competence<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 23<\/span><\/p>\n

Which one of the following is not a strategically beneficial reason a company may enter into strategic partnerships or cooperative arrangements with key suppliers, distributors, or makers of complementary products?<\/span><\/p>\n

To acquire or improve access to new markets<\/span><\/p>\n

To expedite the development of promising new technologies or products<\/span><\/p>\n

To enable greater vertical integration<\/span><\/p>\n

To improve supply chain efficiency<\/span><\/p>\n

To overcome deficiencies in technical and manufacturing expertise and to create desirable new skill sets and capabilities<\/span><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 24<\/span><\/p>\n

Which of the following is not an example of a defensive move to protect a company’s market position and restrict a challenger’s options for initiating competitive attack?<\/span><\/p>\n

Granting volume discounts or better financing terms to dealers\/distributors and providing discount coupons to buyers to help discourage them from experimenting with other suppliers\/brands<\/span><\/p>\n

Signaling challengers that retaliation is likely in the event they launch an attack<\/span><\/p>\n

Publicly committing the company to a policy of matching a competitors’ terms or prices<\/span><\/p>\n

Maintaining a war chest of cash and marketable securities<\/span><\/p>\n

Challenging struggling runner-up firms that are on the verge of going under<\/span><\/p>\n

4 points Saved<\/span><\/p>\n

QUESTION 25<\/span><\/p>\n

Why do mergers and acquisitions sometimes fail to produce anticipated results?<\/span><\/p>\n

They do not produce the hoped for outcomes and changes to existing operations may not eventuate<\/span>.<\/span><\/a><\/p>\n

Cost savings may prove smaller than expected<\/span>.<\/span><\/a><\/p>\n

Gains in competitive capabilities may take substantially longer or never materialize<\/span>.<\/span><\/a><\/p>\n

Efforts to mesh corporate cultures can stall due to formidable resistance from organization members and key employees can become disenchanted and leave<\/span>.<\/span><\/a><\/p>\n

All of these<\/span>.<\/span><\/a><\/p>\n

4 points Saved<\/span><\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Question QUESTION 1 Which one of the following is not a reason a company decides to enter foreign markets? To spread business risk across a wider geographic market base To capitalize on company competencies and capabilities To achieve lower costs and enhance the firm’s competitiveness To build the profit sanctuaries necessary to wage guerrilla offensives […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-6935","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/6935","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=6935"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/6935\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=6935"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=6935"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=6935"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}