Global Business Today 5Th Canadian Edition By Charles W. L. Hill – Test Bank

Chapter 11
Global Strategy

Multiple Choice Questions

1. In the opening case, what is important to IKEA’s global success?
A. High prices
B. Offering the same products throughout the world.
C. Using few suppliers
D. local customization
E. Using few manufacturers.

Accessibility: Keyboard Navigation
Difficulty: Medium
Topic: 11-01 Introduction

2. Profit can be defined as:
A. costs minus profits
B. the difference between time and money
C. quantity times profit
D. sales plus costs
E. the difference between TR and TC

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 11-01 Explain the concept of strategy.
Topic: 11-02 Strategy and the Firm

3. A firm’s __________ can be defined as the actions that managers take to attain the goals of the firm.
A. systems
B. value chain
C. operations
D. strategy
E. plans

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 11-01 Explain the concept of strategy.
Topic: 11-02 Strategy and the Firm

4. Sally creates _______ when she develops a way to maximize long-term profitability.
A. a strategy
B. a mission
C. competitors
D. a design
E. competitive advantage

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 11-01 Explain the concept of strategy.
Topic: 11-02 Strategy and the Firm

5. _______ is the difference between total revenues and total costs.
A. Strategy
B. Profit
C. Asset
D. Economies of scale
E. Gross margin

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 11-01 Explain the concept of strategy.
Topic: 11-02 Strategy and the Firm

6. A simple example of _______ is rate of return on sales.
A. strategy
B. economies of scale
C. profitability
D. primary activity
E. profit

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 11-01 Explain the concept of strategy.
Topic: 11-02 Strategy and the Firm

7. A basic condition that determines a firm’s profits is:
A. the firm’s costs of distribution.
B. taxes.
C. the amount of value customers place on the firm’s goods.
D. government regulations.
E. variable costs

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 11-01 Explain the concept of strategy.
Topic: 11-02 Strategy and the Firm

8. Actions that managers take to attain the firm’s goals are referred to as _____.
A. value chain activities
B. strategies
C. systems
D. operations
E. tactics

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 11-01 Explain the concept of strategy.
Topic: 11-02 Strategy and the Firm

9. A company creates _______ by converting inputs that cost C into a product on which consumers place a value of V.
A. value
B. wants
C. profits
D. demand
E. profitability

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 11-01 Explain the concept of strategy.
Topic: 11-03 Value Creation

10. According to the textbook, it is useful to think of the firm as a(n) __________ composed of a series of distinct activities, including production, marketing, materials management, R&D, human resources, information systems, and the firm infrastructure.
A. functional stream
B. momentum machine
C. inertia chain
D. value chain
E. business chain

Accessibility: Keyboard Navigation
Difficulty: Easy
Learning Objective: 11-01 Explain the concept of strategy.
Topic: 11-05 The Firm as a Value Chain

11. Value chain activities can be categorized as:
A. primary activities and secondary activities
B. input activities and throughput activities
C. profitable activities and unprofitable activities
D. primary activities and support activities
E. value creation and value delivery

Accessibility: Keyboard Navigation
Difficulty: Medium
Learning Objective: 11-01 Explain the concept of strategy.
Topic: 11-05 The Firm as a Value Chain

12. The ___________ activities of a firm have to do with creating the product, marketing and delivering the product to buyers, and providing support and after-sales service to the buyers of the product.
A. support
B. subordinate
C. ancillary
D. primary
E. distribution