Strategic Management - Study Mode

[#166] Assertion (A) Vertical integration is considered as a growth strategy because the firms operations are expended beyound primary business. Reasoning (R) Vertical integration is the mixed empirical result to ascertain whether the strategy helps or hinders the performances.
Correct Answer

(B) Both (A) and (R) are ture, but (R) is not the correct explanation of (A)

[#167] The concept Core competence was developed by
Correct Answer

(C) Prahalad and Gary

Explanation

Solution: The concept Core competence was developed by Prahalad and Gary. It can be defined as "a harmonized combination of multiple resources and skills that distinguish a firm in the marketplace" and therefore are the foundation of companies' competitiveness.

[#168] In __________ strategy firms try to achieve a high levels of local responsiveness by making their product or service offering to the requirement of the countries they operate
Correct Answer

(B) Multidomestic

Explanation

Solution: In Multidomestic strategy firms try to achieve a high levels of local responsiveness by making their product or service offering to the requirement of the countries they operate. A multidomestic strategy is an international marketing approach that chooses to focus advertising and commercial efforts on the needs of a local market rather than taking a more universal or global approach.

[#169] According to Ringbakk (1971) and Steiner (1972) which of the following should be avoided when creating a formal plan?
Correct Answer

(B) Seeing planning as a once-a-year ritual

Explanation

Solution: According to Ringbakk (1971) and Steiner (1972) Seeing planning as a once-a-year ritual should be avoided when creating a formal plan. In formal planning, the managers look forward for a change when it is to be made use of.

[#170] In __________ strategy assumptions are made that consumers needs are similar worldwide
Correct Answer

(A) Global

Explanation

Solution: In Global strategy assumptions are made that consumers needs are similar worldwide. A global strategy refers to the plans an organization has developed to target growth beyond its borders. Specifically, it aims to increase the sales of goods or services abroad. 'Global strategy' is, in fact, a shortened term that covers three strategies: international, multinational, and global.