which of the following is not a potential benefit of collaborative strategies involving alliances and/or joint ventures with foreign partners? greater ability to employ offensive strategies and build well-protected profit sanctuaries .
Which of the following are generic strategy options for competing in foreign markets?
Four crucial generic strategic options for competing in foreign markets include export strategies , licensing strategies, franchising strategies, and strategic alliances. An export strategy uses the production facilities of the home country to create products which it then exports to the foreign market.
Which of the following is not a typical reason why companies opt to sell their products services or to locate operations in some or many countries?
Which of the following is NOT a typical reason why companies opt to sell their products/services or to locate some of their operations in some or many countries? To strengthen the company’s capability to employ more effective offensive and defensive strategies.
Which of the following account for why companies decide to enter?
Which of the following account for why companies decide to enter foreign markets? To gain access to new customers and/or achieve lower costs and thereby become more most competitive.
Why do companies decide to enter a market?
To concentrate risk within a broader base of countries , especially when sales are down in one area and the company can undermine sales elsewhere. E. To exploit the natural resources found within its home market. To capture economies of scale in product development, manufacturing, or marketing.
Which of the following are advantages of joint ventures?
- access to new markets and distribution networks.
- increased capacity.
- sharing of risks and costs (ie liability) with a partner.
- access to new knowledge and expertise, including specialised staff.
- access to greater resources, for example technology and finance.
How would you explain the difference between a one business company and a diversified company?
In terms of strategy making, what is the difference between a one-business company and a diversified company? A. The first uses a business-level strategy, while the second uses a set of business strategies and a corporate strategy . ... The first uses a single-line strategy, while the second uses a multi-line strategy.
What are the options for competing abroad?
There are five basic options available: (1) exporting , (2) creating a wholly owned subsidiary, (3) franchising, (4) licensing, and (5) creating a joint venture or strategic alliance (Figure 7.25 “Market entry options”).
What distinguishes the five generic competitive strategies?
- Low-cost provider.
- Broad differentiation.
- Focused low-cost.
- Focused differentiation.
- Best-cost provider.
Why is crafting a strategy to compete in one or more foreign markets inherently complex?
Question: Crafting a strategy to compete in one or more foreign markets can be considered complex because Multiple Choice currency exchange rates among countries are generally fixed and rarely change . buyer tastes and preferences differ among countries and present a challenge for companies concerning.
Which of the following is an important appeal of a related diversification strategy? Offers opportunities to transfer skills, expertise, technical know-how , or other capabilities from one business to another. ... A diversified company that leverages the strategic fits of its related businesses into competitive advantage.
When a company operates in the markets of two or more different countries its foremost strategic decision is?
3Problem 46MCQ: When a company operates in the markets of two or more different countries, its foremost strategic issue isA . whether to use strategic alliances to help defeat its rivals.
What is a profit sanctuary?
Profit sanctuaries are the parts of a business where a company makes the most money, where it can quietly accumulate wealth , like a bear storing up fat for winter. If a rival starts pushing into one of your territories, you respond by attacking his plump underbelly.
What are the five reasons a company may decide to enter a foreign market?
The five Top reasons to enter International Markets are Population, High Demand, Growth Rate, the Informal Economy, and Small Business Hegemony .
Why should a company try to sell their products in a foreign country?
Marketing your business internationally expands and diversifies your revenue sources by introducing your goods and services to customers in other countries. Thus, if the domestic economy gets sluggish, you can temper the effect through revenue from countries with healthier economies.
▪ What makes related diversification an attractive strategy is the . opportunity to convert cross-business strategic fits into a competitive . advantage over business rivals whose operations do not offer . comparable strategic fit benefits . ▪ The greater the relatedness among a diversified company’s sister.
