Global Strategy 1
What is the production process segmented across countries, with firms or countries specializing in specific tasks to add value at each stage, referred to as?
global value chain
McDonald’s expanded internationally by granting local operators the rights to use its brand name, trademarks, and business model in exchange for fees and royalties. This is an example of what mode of market entry?
franchising
What is a formal system of task and reporting relationships referred to as?
organizational structure
True or False: Netflix’s global strategy is heavily reliant on a standardization strategy.
False
What is the professor's favorite American TV show?
Friends
Which theory explains how countries can benefit from trade by specializing in the production and export of goods they are most efficient at making, while importing those they are less efficient at producing?
Theory of comparative advantage
Modes of foreign-market entry, such as joint ventures and equity alliances, represent which level of strategy?
corporate-level strategy
What is the set of shared, taken-for-granted implicit assumptions that a group holds, which determines how it perceives, thinks about, and reacts to its various environments?
organizational culture
In which year did Netflix go public and begin trading on the NASDAQ?
2002
In which month was the professor born?
(a) December
(b) January
(c) February
(d) August
(e) September
(c) February
What does the globalization hypothesis propose about consumer needs and preferences?
Consumer needs and preferences around the world are converging and becoming increasingly homogeneous.
Toyota built fully-owned factories in the U.S. This represents which mode of foreign-market entry?
Greenfield investments
P&G operates with industry-based sector business units and regional divisions. This combination leads to which type of organizational structure?
matrix structure
A manager at Netflix is conducting a Five Forces analysis of the online streaming industry. How would the threat of substitutes be characterized in this context?
Other forms of entertainment that can fulfill the same customer need for leisure and content consumption, such as video games, social media, traditional TV, and even live events.
Which school did the professor attend to earn their PhD?
Baruch College or City University of New York (CUNY)
Two opposing forces in global competition that form the basis of a firm's global strategy?
cost reduction & local responsiveness
What is one potential negative aspect of a global value chain?
• Over-specialization makes countries vulnerable to global price fluctuations, causing economic instability.
• Developing countries are often limited to lower-value activities, while developed nations focus on high-value tasks, reinforcing economic disparities.
• Offshoring and reliance on low-cost labor markets can lead to the exploitation of local workforces in developing countries, often under poor labor conditions.
Google’s 2015 restructuring resulted in a shift from a functional structure to which type of organizational structure?
multidivisional structure
What are two specific inbound logistics activities performed by Netflix as part of its value chain?
Licensing content from external producers or studios
Producing original programming, such as Netflix Originals
Acquiring exclusive rights to content
Producing localized content
What does the professor's younger brother do?
Military officer
Through which mode of foreign-market entry did Starbucks adopt when entering the Indian market?
joint venture
Which country has a comparative advantage in "Kimchi" production? And briefly explain why in terms of opportunity cost.
Korea: Kimchi - 80 / Nattō - 90
Japan: Kimchi - 120 / Nattō - 100
(Note: # of hours required in each country to produce one unit)
Korea
What are the two main roles of organizational structure?
division of labor; coordination
What are two key challenges Netflix has faced in its international expansion efforts?
Limited infrastructure in emerging markets (Poor internet connectivity and limited broadband access);
Need for localized content and pricing adjustments
How many students does the professor have in the Fall 2024 semester, including both sessions he teaches?
(a) 50
(b) 52
(c) 53
(d) 54
(e) 58
(d) 54