Strategy in the Global Environment

A vibrant and engaging business landscape with global trade elements, flags from various countries, and symbols of international business like a globe, a briefcase, and charts representing growth.

Global Strategy Quiz

Test your knowledge on global business strategies with our comprehensive quiz! Dive into the concepts of globalization, international business, and various strategic frameworks.

Whether you're a student, a professional, or just curious about international business strategies, this quiz will help you:

Understand key concepts and terms.
Assess your knowledge on global market strategies.
Challenge yourself with various strategic scenarios.

34 Questions8 MinutesCreated by NavigatingBusiness24

Refers to growth of trade and investment, accompanied by the growth in international businesses, and the integration of economies around the world

Globalization

Global expansion

Global Strategy

It is a company’s growth into operations outside domestic markets—into one or more other countries or regions.

Globalization

Global expansion

Global Strategy

Which of the following is not the purpose of Global Expansion:

New opportunities for organizations

Improving profitability

Creating new revenue

Maximize the strength of the company

A strategy in which יִrms try to centralize product development functions such as R&D at home but establish manufacturing and marketing functions in each major country or geographic region in which they do business

International Strategy

Transnational Strategy

Multi-Domestic Strategy

Global Standardization Strategy

Keeps a head office in one location, usually their home market. This organizational structure means that there is one center of operations and brand and little to no infrastructure investment in other countries.

International Strategy

Transnational Strategy

Multi-Domestic Strategy

Global Standardization Strategy

Under International Strategy, it is the process by which companies from one country sell their goods and services to companies or consumers in a different country

Exporting

Licensing

Franchising

Joint Venture

Under International Strategy, this involves transferring the rights and intellectual property from one company to another, using a local partner to create and distribute your product.

Exporting

Licensing

Franchising

Joint Venture

A strategy in which יִrms try to simultaneously achieve low costs, differentiate the product offering across geographic markets, and foster a ﬂow of skills among different subsidiaries in the company’s global

International Strategy

Transnational Strategy

Multi-Domestic Strategy

Global Standardization Strategy

Operate with a central or head office in one country that coordinates local subsidiaries in international markets, combining the best of centralized decision-making and scale.

International Business

Transnational Business

Multi-Domestic Business

Global Standardization Business

Is one of the fastest market entry models because it distributes the entire process and brand materials with corporate assistance

Exporting

Licensing

Franchising

Joint Venture

Strategy that focuses on local responsiveness over global standardization, making it the most localized of the different models available.

International Strategy

Transnational Strategy

Multi-Domestic Strategy

Global Standardization Business

Companies have benefits from this strategy because country managers understand local laws, customs, and tastes and can decide how to best meet them.

International Strategy

Transnational Strategy

Multi-Domestic Strategy

Global Standardization Strategy

A strategy that focuses on increasing proיִtability by reaping the cost reductions derived from economies of scale and location economies.

International Strategy

Transnational Strategy

Multi-Domestic Strategy

Global Standardization Strategy

A Global Standardization Strategy in which a parent company creates a subsidiary in a different country, building its operations from the ground up.

Greenfield Investments

Joint Ventures

Partnership

Mergers and acquisitions

A separate corporate entity in which two or more companies have an ownership stake

Greenfield Investments

Joint Ventures

Partnership

Mergers and acquisitions

Is described as a relationship which exists between people carrying on a business, with a common view of making a profit. It also includes incorporated limited partnership

Greenfield Investments

Joint Ventures

Partnership

Mergers and acquisitions

Are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization.

Greenfield Investments

Joint Ventures

Partnership

Mergers and acquisitions

Its principal concern is to identify the industry or industries a company should participate in to maximize its long-run profitability

Corporate-Level Strategy

Business-Level Strategy

Functional-Level Strategy

The strategy a company adopts when it focuses its resources and capabilities on competing successfully within a particular industry

Concentration on a Single Industry

Reduced Industry Rivalry

Outsourcing Functional Activities

Its major advantage is that doing so enables a company to focus all its managerial, financial, technological, and functional resources and capabilities on developing strategies to strengthen its competitive position in just one business.

Concentration on a Single Industry

Horizontal Integration

Increased Bargaining Power

Outsourcing Functional Activities

Acquiring or merging with industry competitors to achieve the competitive advantages that come with large size

Mergers and acquisitions

Horizontal Integration

Vertical Integration

Outsourcing Functional Activities

Is a competitive strategy that can create economies of scale, increase market power over distributors and suppliers, improve product differentiation and help businesses expand their market or enter new markets.

Mergers and acquisitions

Horizontal Integration

Vertical Integration

Outsourcing Functional Activities

Occurs when one company uses its capital resources (such as stock, debt, or cash) to purchase another company.

Acquisition

Joint Venture

Merger

Partnership

Is an agreement between two companies to pool their resources in a combined operation.

Acquisition

Joint Venture

Merger

Partnership

Acquiring or merging with a competitor with the help of horizontal integration

Reduced Industry Rivalry

Horizontal Integration

Mergers and Acquisitions

It can be used as leverage to bargain down the price it pays for inputs, and this also lowers its costs.

Increased Bargaining Power

Reduced Industry Rivalry

Decreased Bargaining Power

Horizontal Integration

Strengthens buyer's or supplier's competitive position and increases its profitability at their expense.

Increased Bargaining Power

Reduced Industry Rivalry

Decreased Bargaining Power

Horizontal Integration

The strategy of offering customers the opportunity to buy a complete range of products at a single, combined price

A second tactic that a company may deploy to improve its competitive position in an industry is to outsource one or more of its own value creation functions and contract with another company to perform that activity on its behalf.

Outsourcing Functional Activities

Product Bundling

Franchising

Partnership

This term has been coined to describe companies that outsource most of their functional activities and focus on one or a few core value chain functions.

Virtual corporation

Globalization

Global expansion

Outsourcing strategy

A strategy in which a company expands its operations either backward into industries that produce inputs for its core products or forward into industries that use, distribute, or sell its products

Vertical Integration

Horizontal Integration

A value creation tool that is designed to perform a speciיִc set of activities and whose value creation potential is signiיִcantly lower in its next- best use

Specialized Asset

Horizontal Integration

Vertical Integration

Virtual corporation

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