MGMT 309 - Chapter 6 Exam Questions With 100% Correct Answers 2024/2025

MGMT 309 - Chapter 6 Exam Questions With 100% Correct Answers 2024/2025 The process by which a firm's managers evaluate the future prospects of the firm and decide on appropriate strategies to achieve long-term objectives is called ________. - answerstrategic planning Which of the following terms refers to the basic means by which a company competes? - answerstrategy A company's choice to operate in a business or businesses and the ways in which it differentiates itself from its competitors is called its ________. - answerstrategy Which of the following is the most common reactive reason for a firm to extend its operations overseas? - answerglobalization of competitors Restrictive trade barriers most likely influence the globalization of businesses by encouraging firms to ________. - answerswitch from exporting to overseas manufacturing Roch, a Swiss chocolate company, recently opened a manufacturing unit in Spain. The purpose of this move was that Roch wanted to avoid Spain's high import tariffs. Which of the following reasons prompted Roch to open the manufacturing unit in Spain? - answertrade barriers Which of the following is the most likely result of regulations and restrictions enforced by a firm's home government that prove to be expensive for the firm's operations? - answerthe firm searches for less restrictive operating environments overseas Due to the high demand for its handmade soaps in Canada, Fragrance Exotica, an Indian Soap manufacturer, has decided to open a new manufacturing unit in Canada, thereby expanding overseas. In this scenario, which of the following reasons prompted Fragrance Exotica to set up a manufacturing unit overseas? - answercustomer demands Which of the following is the proactive reason that prompts firms to expand overseas? - answerseeking economies of scale Which of the following is a reactive reason that prompts a firm to expand overseas? - answercustomer demands A country seeks new infusions of capital, technology, and know-how. It announces that it shall exempt taxes and grant concessions for foreign investors. Which of the following measures is the country employing? - answerproviding incentives When Disney decided to build a park in Paris, the French government gave Disney prime farmland just outside the city limits. This is most likely an example of a firm expanding overseas due to ________. - answerprovision of incentives Which of the following statements is true of the strategic formulation process? - answerThe strategic formulation process is part of the strategic management process in which most firms engage, either formally or informally. Jamie decides to plan his strategies for starting an electric equipment manufacturing company. His main aim is to ensure that it runs efficiently. He decides to do this in two phases: the planning phase and the implementation phase. Which of the following processes is Jamie employing? - answerstrategic management Which of the following is the first step of the planning phase of a strategic management process? - answerestablishment of the company's mission The second part of the strategic management process involves the ________. - answerimplementation phase Which of the following would most likely be categorized as a global financial objective of an international firm? - answerforeign-exchange management Which of the following charts the direction of the company and provides a basis for strategic decision-making? - answerorganizational mission Goals for market volume and profitability are usually set higher for international than domestic operations due to the ________. - answerinvolvement of greater risks ________ includes environmental scanning and continuous monitoring to keep abreast of variables around the world that are pertinent to the firm. - answerEnvironmental assessment Which of the following terms refers to the continuous process of gathering and evaluating information about variables and events around the world that may pose threats or opportunities to the firm? - answerenvironmental assessment Which of the following is a global risk with regard to strategic entry scanning? - answereconomic and financial risk Which of the following is a regional risk with regard to strategic entry scanning? - answerfinancial and currency instability Which of the following is a national risk with regard to strategic entry scanning? - answerlegal protection The process of gathering information and forecasting relevant trends, competitive actions, and circumstances that will affect operations in geographic areas of potential interest is called ________. - answerenvironmental scanning