BSG Exam 2 (Answered) Complete Solution Verified 2025
The advantages of using a licensing strategy to participate in foreign markets include ✔✔being able
to generate revenues and income from a company's technical know-how or a unique patented product
without committing significant additional resources to country markets that are unfamiliar, politically
volatile, economically unstable, or otherwise risky
Global competition exists when ✔✔competitive conditions across national markets are linked strongly
enough to form a true international or world market and when leading competitors compete head to
head in many different countries
A profit sanctuary refers to a country market (or geographic region) where a company ✔✔derives
substantial profits because of its strong or protected market position
In which of the following situations is employing a "think local, act local" multicountry strategy highly
questionable? ✔✔when a company is striving to build a globally recognized brand name for one of its
products or services
Which of the following is not a potential benefit of collaborative strategies involving alliances and/or
joint ventures with foreign partners? ✔✔Greater ability to employ offensive strategies and build well-
protected profit sanctuaries.
A firm pursuing a "think global, act local" approach to strategy-making ✔✔pursues a competitive
strategy that is essentially the same in all country markets
where it operates but it may nonetheless give local managers room to make minor
variations where necessary to better satisfy local buyers and to better match local
market conditions.
Competing in one or more countries or regions of the world causes strategy-making to be more complex
partly because of ✔✔Sizable cross-country differences in wage rates, worker productivity,
inflation rates, energy supplies and costs, tax rates, and other factors that impact a company's costs and
profit prospects
The advantages of a centralized organization structure include ✔✔Reduced potential for conflicting
actions and decisions on the part of lower-level personnel, facilitation of strong top management
leadership in crisis situations, and tight control by the manager in charge-it is easy to know who is
accountable when things do not go well
One of the disadvantages of a decentralized structure featuring employee empowerment is ✔✔A
loss of "full control" on the part of top management (because higher-level managers may be unaware of
actions taken by empowered employees under their supervision).
, Which of the following is not among the principal managerial components of the strategy execution
process? ✔✔Selecting energetic and motivated employees, training employees properly, and
doing an effective job of empowering employees
Which of the following is not a shortcoming or disadvantage of a decentralized organizational structure?
✔✔Raises employee anxiety levels, thus discouraging many company personnel from being deeply
involved in the business and lowering their motivation levels
Management's handling of the process of implementing and executing a company's strategy can be
considered successful ✔✔If a company is meeting or beating its performance targets and has attained
real proficiency in performing strategy critical value chain activities
Which one of the following is not part of organizing a company's work effort in ways that promote
successful strategy execution? (A summary of the key components of organizing the work effort appears
in Figure 10.3.) ✔✔How to organize the performance of value chain activities in ways that produce
greater product differentiation versus the products of rivals
Which of the following is the best example of related diversification? ✔✔A producer of golf clubs and
golf bags acquiring a maker of golf shoes and golf apparel
Which one of the following is not among the outcomes that corporate executives should pursue in order
for a strategy of unrelated diversification to produce companywide financial results above and beyond
what the businesses could generate operating as stand-alone entities? ✔✔Focus on acquiring
The advantages of using a licensing strategy to participate in foreign markets include ✔✔being able
to generate revenues and income from a company's technical know-how or a unique patented product
without committing significant additional resources to country markets that are unfamiliar, politically
volatile, economically unstable, or otherwise risky
Global competition exists when ✔✔competitive conditions across national markets are linked strongly
enough to form a true international or world market and when leading competitors compete head to
head in many different countries
A profit sanctuary refers to a country market (or geographic region) where a company ✔✔derives
substantial profits because of its strong or protected market position
In which of the following situations is employing a "think local, act local" multicountry strategy highly
questionable? ✔✔when a company is striving to build a globally recognized brand name for one of its
products or services
Which of the following is not a potential benefit of collaborative strategies involving alliances and/or
joint ventures with foreign partners? ✔✔Greater ability to employ offensive strategies and build well-
protected profit sanctuaries.
A firm pursuing a "think global, act local" approach to strategy-making ✔✔pursues a competitive
strategy that is essentially the same in all country markets
where it operates but it may nonetheless give local managers room to make minor
variations where necessary to better satisfy local buyers and to better match local
market conditions.
Competing in one or more countries or regions of the world causes strategy-making to be more complex
partly because of ✔✔Sizable cross-country differences in wage rates, worker productivity,
inflation rates, energy supplies and costs, tax rates, and other factors that impact a company's costs and
profit prospects
The advantages of a centralized organization structure include ✔✔Reduced potential for conflicting
actions and decisions on the part of lower-level personnel, facilitation of strong top management
leadership in crisis situations, and tight control by the manager in charge-it is easy to know who is
accountable when things do not go well
One of the disadvantages of a decentralized structure featuring employee empowerment is ✔✔A
loss of "full control" on the part of top management (because higher-level managers may be unaware of
actions taken by empowered employees under their supervision).
, Which of the following is not among the principal managerial components of the strategy execution
process? ✔✔Selecting energetic and motivated employees, training employees properly, and
doing an effective job of empowering employees
Which of the following is not a shortcoming or disadvantage of a decentralized organizational structure?
✔✔Raises employee anxiety levels, thus discouraging many company personnel from being deeply
involved in the business and lowering their motivation levels
Management's handling of the process of implementing and executing a company's strategy can be
considered successful ✔✔If a company is meeting or beating its performance targets and has attained
real proficiency in performing strategy critical value chain activities
Which one of the following is not part of organizing a company's work effort in ways that promote
successful strategy execution? (A summary of the key components of organizing the work effort appears
in Figure 10.3.) ✔✔How to organize the performance of value chain activities in ways that produce
greater product differentiation versus the products of rivals
Which of the following is the best example of related diversification? ✔✔A producer of golf clubs and
golf bags acquiring a maker of golf shoes and golf apparel
Which one of the following is not among the outcomes that corporate executives should pursue in order
for a strategy of unrelated diversification to produce companywide financial results above and beyond
what the businesses could generate operating as stand-alone entities? ✔✔Focus on acquiring
