International Business Exam

Mock- Exam BØK 375 Spring 2012

1. TRUE/FALSE – mark the right answer with an X.

a. Strategy is a coordinated set of actions that fulfills the firm’s objectives, purposes, and goals.

True___X___

False_____

b. Strategic planning is an effort by which an organization defines the nature of the products and/or services it provides.

True______

False__X___c. Capabilities are the foundation on which a firm builds its strategy.

True___X___

False_____



d. Core competencies are present in high technology and manufacturing firms, but not in service firms.

True______

False_X____

e. A comparative advantage results from something that the firm does better than any of its competitors.

True___X___

False_____

f. For aninternational firm, changes in the environment are more active than for a firm that only competes in a single market.

True____X__

False_____

g. The three components of the strategy process include planning, implementation, and evaluation and control.

True__X____

False_____

h. Information-gathering in the planning process should begin with the external environment inwhich the firm competes.

True__X____

False_____







2. MULTIPLE CHOICE – circle the right choice:

1. Strategic planning:
a. | is a coordinated set of actions that fulfills the firm’s objectives, purposes, and goals. |
b. | helps define the type of organization the firm intends to be, and the nature of the contribution it makes to its constituents. |
c. | isan effort by which an organization defines the nature of the products and/or services it provides. |
d. | is the process by which a firm decides its direction over the next several years. |

2. Functional skills that a firm develops and which are the foundation on which a firm builds its strategy are:
a. | capabilities. |
b. | resources. |
c. | key success factors. |
d. |comparative advantages. |

3. Which of the following is NOT an example of a key success factor in an airline firm?
a. | An information system that allows the airline to better match demand and flight frequency. |
b. | The ability to work well with their employees and unions to generate maximum efficiency. |
c. | The capability of designing the best uniform for its employees. |
d. | Theorganizational routines to turn planes around faster. |

4. The special capabilities that are the most critical to a firm’s success are called:
a. | key success factors. |
b. | core competencies. |
c. | missions and visions. |
d. | hidden assets. |

d. | miniaturization. |

6. Core competencies:
a. | are rare and typically cut across functional boundaries. |
b. | aretangible and intangible assets that firms possess. |
c. | are things that are important only to customers. |
d. | are basic functional capabilities. |

7. Which level of a firm's strategy establishes how diversified the firm is to become and in what domains that diversification will occur?
a. | Business-level strategy |
b. | Corporate-level strategy |
c. | Functional-level strategy |
d.| Transitional-level strategy |

8. The principal means by which a firm changes its portfolio of businesses is through:
a. | internal diversification. |
b. | mergers and acquisitions. |
c. | joint ventures. |
d. | alliances. |

1. The political, legal and environmental environment
Why do you think a firm seeking to understand a market should understand not only its economicenvironment but also its legal environment?

An important consideration is the status of the rule of law and whether it exists. The legal and regulatory environment not only is important to establish how business will operate, it can in fact provide a competitive advantage to a business.

* Legal Systems around the World
Most of the world’s legal systems can be classified into two broad...