BMAL 590 GLOBAL DIMENSIONS OF BUSINESS QUESTIONS WITH CORRECT ANSWERS

Global Strategy CORRECT ANSWER Each firm's theory about how to compete successfully in whatever global markets the firm chooses to compete Strategy as a Plan CORRECT ANSWER Suggests that strategy is embodied in the same explicit rigorous formal planning as in the military Strategy as an Action CORRECT ANSWER Suggests that strategy is most fundamentally reflected by firms' patterns of action Strategy as an Integration CORRECT ANSWER Defines strategy as "a firm's theory about how to compete successfully" Multi-market competition CORRECT ANSWER Occurs when firms engage the same rivals in multiple markets Mutual forbearance CORRECT ANSWER Reduction of competitive intensity among rivals of multi-market competition industries Industry-based considerations CORRECT ANSWER Always concerned with inter-firm rivalry Concentration; industry leader; product homogeneity; stability of demand and supply; entry barriers; market commonality with rivals Collusion CORRECT ANSWER Collective attempts to reduce competition Tacit collusion CORRECT ANSWER when firms indirectly coordinate actions by signaling intent to reduce output and maintain pricing above competitive levels Explicit collusion CORRECT ANSWER when firms directly negotiate production output and pricing agreements to reduce competition and divide markets Cartel CORRECT ANSWER An output and price-fixing entity involving multiple competitors Resource-based considerations CORRECT ANSWER Include: value; rarity; imitability; organization; resource similarity; and fighting low-cost rivals valuable capabilities to attack, deter or retaliate; rarity of certain assets; imitability of competition; organizational skills for actions; resource similarity with rivals