Chapter 4 Multiple Choice Questions

. Google.com is an example of a firm that:

adapted well to the business environment within its industry.

changed the business environment within its industry.

applied the VRIO framework in global strategic planning.

applied the SWOT Analysis in global strategic planning.

. The resource-based perspective suggests that unique firm resources should be the starting point for developing successful strategies.

the business opportunity should be the starting point for developing successful strategies

unique firm resources should be the starting point for developing successful strategies.

both business opportunity and unique firm resources should be the starting point for developing successful strategies.

neither business opportunity nor unique firm resources should be the starting point for developing successful strategies.

. SWOT is an abbreviation for:

Internal Strengths (S), Internal Weaknesses (W), External Opportunities (O), External Threats (T).

Integrated Strategies (S), Integrated Weaknesses (W), External Opportunities (O), External Threats (T).

External Strengths (S), External Weaknesses (W), Internal Opportunities (O), Internal Threats (T).

External Strengths (S), Internal Weaknesses (W), External Opportunities (O), Internal Threats (T).

. The concept of core competencies was originally devised by:

Michael E. Porter

John Dunning and John Child

C. K. Prahalad and Gary Hamel

Jay B. Barney

. The VRIO framework can be used to identify:

a firm's resources and external opportunities.

the organizational structure of multinational firms.

a firm's technical resources.

a firm's core competencies.

. Dynamic capabilities refer to:

the firm's ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments.

the link between subsidiary resource and multinational firm's competitive advantage in global markets.

the firm's dynamic capability to find resources that are valuable, rare, difficult to imitate and can be exploited by the organization.

the combination of individual technologies and production skills that underlie a company's multiple production lines and critically underpin the firm's competitive advantage.

. Value added is:

the cost saving through production and marketing efforts within the firm.

the value that a firm adds through the development of dynamic capabilities.

the value that a firm adds to bought-in materials and services through outsourcing.

the difference between the cost of inputs and the market value of outputs.

. Global value systems are sometimes referred to as:

Global value added

Global resource systems

Global value chains

Global capability linkages

. The systematic collection of information about rivals in order to assist the development of firm strategies is called:

Competitor intelligence

Internal benchmarking

Benchmarking

Functional benchmarking

. Functional benchmarking involves:

benchmarking your competitors.

benchmarking global competitors in your industry.

benchmarking organizations with regards to specific business activities or processes.

benchmarking other multinational firms with similar corporate strategies or similar customers.

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