CHAPTERS 15 & 16

Multiple Choice

1. It is one of the objectives of multinational business strategies wherein it is to build resources and
capabilities.
A. The search for international market
B. The international search for innovation
C. International risk reduction objectives
D. The search for international motivation
2. What are the two aspects to consider to form a global competitive analysis?
A. Analysis of Global Competitors and Local Competitive Analysis
B. Global Competitors Analysis and Local Competitive Analysis
C. Analysis of Worldwide Competitors and Local Competitive Analysis
D. Global Competitors Analysis and Local Comparative Analysis
3. What does the Five Forces Model suggest?
A. Firm performance is critically independent on the degree of competitiveness of the five
forces within an industry.
B. Firm performance is critically dependent on the degree of competitiveness of the five forces
within an industry.
C. Firm performance is critically dependent on the degree of competitiveness of the half
portion of five forces within an industry.
D. Firm performance is critically independent on the degree of competitiveness of the half
portion of five forces within an industry.
4. Who developed the Five Forces Model?
A. Michael C. Porter Jr.
B. Michael E. Porter Sr.
C. Michael E. Porter
D. Michael D. Porter
5. These are the key sources of sustained competitive advantage, as they are not easily acquired or
imitated by competitors.
A. Outsourcing
B. Offshoring
C. Organisational Routines
D. Organisational Resources
6. It suggests that differences in firm resources and capabilities are the most fundamental drivers of
differences in firm performance.
A. Resources and capabilities
B. Tangible Assets
C. Resource-based view
D. Intangible resources and capabilities
7. It is the criteria used to evaluate an organisation’s resources and capabilities.
A. Five Forces Model
B. VRIO Framework
C. Resource-based views
D. Multinational Business Strategy

True or False
1. Coordination ranges from low innovation across markets to high global coordination.
2. Analysis of industry and competition is part of a business’ objective.
3. Five Forces Model was developed by Michael D. Porter.
4. Intangible resources and capabilities are easier to observe but difficult to quantify and codify.
5. The international search for innovation is to protect resources and capabilities.
6. Captive sourcing involves setting up subsidiaries in foreign locations to perform in-house work.
7. If some of the five forces are strong, industry profitability can be heightened.

Identification
1. It is the possibility that new products or technologies will make existing firms obsolete.
2. It is a competitive strategy that centers on competing on low cost and prices.
3. Coordination ranges from low ___________ across markets to high global coordination.
4. These are the distinct ability to combine organisational resources in unique ways valued
by customers that are very difficult to imitate.
5. Also called capabilities or core competencies.
6. A strategy that serves the needs of a particular segment or niche of an industry.
7. It refers to industries with dispersed configuration and high coordination.