BUSI 303 Quiz 4 Global Market Entry & Operations Management solutions complete answers

BUSI 303 Quiz 4 Global Market Entry & Operations Management solutions complete answers

 

Gives customers direct access to merchandise throughout the store.

 

The global strategic planning process is complex but does not entail as many factors, variables, challenges, and risks as domestic strategic planning.

 

If domestic markets become saturated, the firm may need a larger customer base to maintain

 

Successful global managers have an understanding of how to appraise and adjust to the requirements of doing business in a culture different from their own.

 

_____________ is a significant contributor to the positional advantage of the company and is related to the long-term, overall firm performance.

 

Which is not a vital consideration for determining managerial commitment to expanding globally?

 

_____________ represent situations where a company with experience in specific business areas or industrial sectors makes personnel available to perform general or specialized management functions for another company.

 

The investigation of opportunities for domestic expansion requires the careful consideration of various business-environment conditions including the identification of unique resources and capabilities that may be offered.

 

Organizations must ensure that they do not plan hurriedly or rush into foreign markets to jump on an opportunity for quick cash.

 

The three questions especially important to international expansion are location, timing, and scope.

 

Addresses issues that may impact global business operations, such as climate, weather, geographical location, global changes in climate, environmental offsets.

 

This occurs when the firm lacks managers with international experience

 

These variables include the legal system, political structure, and the business customs unique to that nation.

 

A franchise is an agreement that allows one party to use a property right in exchange for payment to the other party.

 

Direct market accession offers a firm low risk, gives them a simple way to initiate the process of entering a global market, and helps the firm meet demands and challenges.

 

In most cases, exporting and importing requires a minimum initial investment and may allow a business to develop key relationships with export/import firms (intermediaries) that will aid in ensuring success into the new market.

 

This occurs when the firm does not know how to effectively deal with foreign nationals, which directly impacts the ability to understand their business culture?

 

If attacked in their home market by lower quality and higher prices, the domestic firm can counterattack the overseas competitor’s home market?

 

Small markets support entry modes that have low break-even sales volumes, like indirect or agent exporting, licensing, and some contractual arrangements.

 

A primary characteristic of the globalization of markets is the advent of the ______. The expectation of standardized goods and services with a corresponding level of consistency in service, quality, and performance across nations and regions signifies the trend towards global commerce.

 

PESTLE analysis can provide answers to the following specific global market entry questions

 

Various versions of products manufactured and distributed by a company

 

All of the following are key issues of global logistics except

 

Used to categorize inventory items and is also known as stock keeping units (SKU’s)

 

The availability of tools, such as forecasting, distribution and inventory planning, and e-commerce allow many organizational processes to be integrated across supply chains.

 

It is important to remember that cost savings do not only result from looking for the cheapest method but also from looking for the most efficient method.

 

Allows a producer to adapt its products to a particular group of consumers.

 

__________ is the proximity the site has to the organization’s largest customer base and suppliers.

 

Utilizing methods such as Just-In-Time, providing products and services in an efficient manne

 

Locus of decisions are concerned with every aspect of the production process, including key areas such as research and development, acquisition and distribution,

 

Which of the following is NOT a strategic capability to necessitate the development of a global operations strategy?

 

Facility layout design requires the firm to determine the most cost-effective approach to the production process. Factors that play into this decision include the quality, cost, and delivery timelines of a product or component.

 

May be necessary for products that require adjustments in order to meet local market demand

 

Groups machines according to their roles in the production process. An assembly line would be an example

 

In ______ capacity is measured in terms of the total number of customers that can be served in a given amount of time.

 

Allows for premium merchandise exposure and simplifies cleaning and security issues.

 

The key components in successful operations management are efficiency and effectiveness.

 

This is approached through material requirement planning (MRP) and through the Kanban ordering system to maintain a smooth flow of inventories throughout the production process.

 

Product defect control includes all the actions needed to check the physical state of inventories throughout the process

 

The term logistics refers to the movement of finished products, semi-finished products, components, and materials between various locations.

 

Customer satisfaction and Total Quality Management

 

 

Addresses determinants of an economy’s performance that directly impacts a company and have resonating long term effects.

 

What are the two types of business entry modes available into a market?

 

The key factors that influence the entry mode selection include all except?

 

Joint ventures usually involve an alliance where two or more companies contribute assets, which results in the formation of a new legal entity.

 

_____________ are utilized to provide expertise to inexperienced exporters as they enter overseas markets.

 

If potential risks are understood, taken into account, and properly planned for, then the firm can focus on primary conditions, such as the firm’s managerial commitment and the motivations behind.

 

What market strategy is utilized when a corporate entity needs complete control over every detail of the structure within the host country?

 

A firm’s transportation costs are related to energy, labor, raw materials, and other productive agents.

 

Firms are better off selecting non-equity, _____________-investment entry modes in countries that have high environmental uncertainty.

 

Market entry motivation can be classified into two separate areas: (1) _____________ and (2) _____________.

 

Possibly the greatest proactive motivation for global expansion is the prospect of _____________.

 

The _____________ is relatively free to establish additional subsidiary and contracting relationships with other partners in the host country.

 

Environmental turbulence has two dimensions: technological turbulence and _____________.

 

Economic factors that affect a firm involve the beliefs, values, attitudes, opinions, and lifestyles of persons in the firm’s external environment.

 

Entering the market at the right time, or the wrong time can have tremendous effects on the success or failure of the expansion.

 

_____________ are contracted to assist the experienced exporter in entering markets in unfamiliar countries.

 

A turnkey project relieves the purchaser in a developing country of the responsibility of managing and coordinating the various technical and managerial aspects in a situation where there are often inadequate technical and managerial capabilities.

 

Reactive reasons for motivation are based on the firm’s internal situation and are firm initiated.

 

Intermediaries can facilitate the transfer of goods and services from the company to the consumer in a new market.

 

An _____________ functions in foreign markets just as a sales representative or exclusive wholesaler functions for a manufacturer in the United States.

 

A joint venture is utilized when a corporate entity needs complete control over every detail of the structure within the host country.

 

_____________ entry is optimal for businesses that may not have enough financial capital to initiate operations in a new market.

 

Small businesses cannot compete in the global economy.

 

Exporting and importing are great examples of high-risk entry modes into a new market.

 

One advantage of a management contract is that the host nation provides the funds for any infrastructure associated with the project management.

 

Three questions are especially important to international expansion: _____________, timing, and scale.

 

The main difference between the two entry modes depends on how much risk and/or control an entering business is willing to take.

 

_____________ empowered United States banks to make equity investments in commercial ventures that qualify as export trading companies.

 

Licensing is when a company sells its name, business strategies, and standard operating procedures to another party for a fee.

 

Social factors define the legal and regulatory parameters within which firms must operate.

 

Low production cost in a country encourages local production.

 

Intermediaries have limited financial resources and will usually rely on the contracting company to provide immediate financial support to finance and distribute the product and or service.

 

Two types of entry modes are available into a market: _____________ intensity or _____________ intensity.

 

Proactive reasons are based on the firm’s behavior with respect to the environment and adaptation to changes from outside the firm.

 

One of the most important advantages in using an export management company is that it can handle all aspects of exporting a company’s product into the new market(s).

 

Openness to global trade is an attribute to consider in evaluating the business attractiveness of a location.

 

Intermediaries are often considered "coaches" or outside consultants brought in to help steer the firm in the right exporting direction.

 

The primary private sector facilitator for intermediaries, outside of export management and trading companies, are _____________.

 

Firms are better off selecting non-equity, low-investment entry modes in countries that have low environmental uncertainty.

 

A turnkey project allows a novice corporation immediate presence within a foreign country and ease the initiation process into the marketplace.

 

The wholly owned subsidiary is partially liable for specific aspects of the operation in the host country.

 

Turnkey projects are not successful modes of business operations for developing countries.

 

In formulating a _____________ entry plan, firms should research, assess, and analyze the external environments that exist in the foreign markets under consideration.

 

A _____________ is a voluntary arrangement between companies involving exchange sharing, co-development of products, technologies, or services.

 

An export trading company usually takes title to the goods.

 

_____________ enables a firm to penetrate markets that might not otherwise have been accessible because of foreign policy or laws.

 

_____________ markets support entry modes that have low break-even sales volumes, like indirect or agent exporting, licensing, and some contractual arrangements.

 

Establishment of a wholly owned subsidiary in a foreign country is a high-risk challenge for even the largest of multinational corporations.

 

When planning an effective global strategy, a company should consider the fundamental issues that drive production level output.

 

All of the following are capacity issues except?

 

A disadvantage of Mergers & Acquisitions (M&A) is:

 

Accounting term that describes tangible property used in the operation of a business, such as buildings, machinery, fixtures, furniture, and equipment.

 

Operations management specifically involves the management of the process and production activities that produce the goods or services

 

Calculations are made to maintain sufficient inventories for predetermined supply chain system needs.

 

Holds the distance between the supplier and the manufacturing hub as a key focus in the acquisition of raw materials.

 

Tool used in managing of the total production process to generate an exceptional product or service.

 

Management technique involves incremental improvements to a process rather than a single overpowering change.

 

In the physical inventory control category, calculations are made to maintain sufficient inventories for predetermined supply chain system needs.

 

The _____________ layout gives customers direct access to merchandise throughout the store.

 

The overall success of the business is dependent upon the efficiency and effectiveness of every function within the _____________ process.

 

In a _____________, the most common centralized organizational structure, decision making is a top-down process.

 

The intention behind _____________ management systems is to concentrate on eradicating waste and reducing warehouse inventories.

 

Quality efforts begin and end with lower level employees.

 

In the _____________ step in the operations level decisions, the company draw from historical data competition analysis and market research, cost, and time restraints to determine if the suggested plans will be profitable.

 

Strategic planning level decisions are the highest level of logistics decisions.

 

Two basic manufacturing layout designs are typically used: _____________ or _____________.

 

The _____________ suggests that the greater gain will come from identifying which part of the process is a constraint to the whole, rather than focusing on increased output from an entire process.

 

Logistics decisions are made primarily on three different levels: strategic planning, network, and _____________.

 

The problem with a _____________ model is the inevitability that divisional communication will break down, causing coordination efforts to become difficult and complicated.

 

Such considerations for _____________ decisions include the degree of centralization/decentralization, degree of hierarchy, and number echelons.

 

In a _____________ agreement, each party provides some part of the production process, and the profits are shared between the two organizations.

 

Greenfield Investment requires only product adaptation rather than both product and process adaptation.

 

When considering global outsourcing, a key concept is that the closer the supplier, the more the shipping costs will impact the raw material acquisition decision.

 

The decentralized model allows decision making authority to occur where the decisions are to be made, promoting innovation, initiative, and teamwork.

 

An interlocking directorate allows the organization the opportunity to more effectively coordinate the output of raw materials to meet the needs of the manufacturing operation.

 

A process layout groups machines according to their roles in production process.

 

Inventory turnover rates being slower than expected are indicative of a global business experiencing inventory problems.

 

Financial management specifically involves the management of the process and production activities that produce the goods or services.

 

_____________ involves both management and labor in finding and eliminating waste in machinery, labor, materials, and production methods.

 

_____________ defines the goal or purpose of the organization, while _____________ defines how personnel will collectively implement the strategy.

 

Currently, 3PLs are limited to noncritical processes within an organization.

 

The ABC Classification System allows managers to focus on the most important items when forecasting, controlling, and scheduling inventories.

 

Efficient supply chain management is considered critical to the long-term success of an organization.

 

_____________ are horizontal in nature and include experts in each technical area within an organizational unit that cooperate to share information to determine best practices, rather than competing for accolades.

 

The value chain is generally considered to consist of the acquisition of raw materials, finished goods manufacturing, and distribution channels.

 

The strategy of standardization requires the firm to tailor mass production products to meet the expectations of the customer.

 

_____________ refers to mechanized production, where human attention is needed only when a problem occurs.

 

Inventory growth may be both a cause and effect of a poorly aligned supply chain.

 

Fixed assets includes items normally consumed in the course of business operation or production.

 

_____________ provide the additional benefit of tax breaks, resulting from depreciation.

 

The ABC Classification System is used to categorize inventory items and is also known as _____________.

 

Becoming ISO certified requires the inspection of production processes, maintaining equipment, training workers, testing products, and dealing with customer complaints.

 

The bureaucratic hierarchy is the most common centralized organizational structure.

 

When planning an effective global business strategy, a company should consider the fundamental issues that drive production level output.

 

Kazan is a people-focused management system that aims at continual increase in customer satisfaction at continually lower real cost.

 

Companies using a global outsourcing strategy mandate that their suppliers have a facility within a certain distance of the manufacturing facility.

 

It is crucial for a company to reevaluate strategic level decisions at least once a year.

 

The selected type of transportation has no impact on the quality of the products.

 

A key determinant in the facility location decision is the _____________ the site has to the organization’s largest customer base and suppliers.

 

The Theory of Constraints suggests that once the constraints are identified, the organization should focus improvement energy solely in that area.

 

A decentralized structure provides control, stability, and the potential for highly effective coordination of all the organizational processes.

 

_____________, in terms of production-oriented firms, refers to the total amount of products that can be produced by the entire operation in a given amount of time.

 

Decisions in the _____________ area include such considerations as where to purchase and what to purchase.

 

The goal of the JIT management system is eliminating waste, making best use of cost efficiency, and creating and sustaining competitive advantage.

 

Continuity is an important aspect of the _____________ approach used by companies to acquire raw materials.

 

A _____________ provides for the establishment of raw material design teams that consist of representatives from a company and its suppliers.

 

A _____________ model does not allow for innovative thinking, nor does it engender employee initiative for problem solving.

 

_____________ is a codification or assurance of quality - an internationally recognized certification system or process.

 

Integration is not a key issue of global logistics.

 

The free-flow pattern provides customers ease of movement and is visually appealing.

 

Unlike the case of an acquisition, a _____________ requires only product adaptation rather than both product and process adaptation.

 

When a firm incurs unanticipated costs from underestimating foreign regulations.

 

Quest for profit, competitive advantage, market segments, and demand patterns.

 

Optimal for businesses that don’t have enough financial capital to initiate operations in new markets.

 

Knack to acquire, interpret, and integrate information regarding the global competitive environment.

 

Allows one party to use a property right in exchange for payment to the other party.

 

Individual whose job is to help manage a process of information exchange.

 

Independent company that provides support services, such as warehousing, shipping, insuring, and billing on behalf of the business.

 

Competitive pressure, excess capacity, overproduction, declining home market.

 

Voluntary arrangement between companies; exchange sharing, codevelopment of products/services, technologies.

 

Extent to which production/service technology in a principal market has changed over the last years.

 

Intermediaries, outside of export management and trading companies, are commercial banks.

 

New firm created, owned by the alliance partners.