ADM 3318 Study Guide - Final Guide: Vertical Integration, The Foreign Exchange, Greenfield Project
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QUESTION 1
_____ refer to the forces of change whose direction and sometimes timing can be predicted.
Uncertainties | ||
Trends | ||
Occurrences | ||
Scenarios | ||
Forecasts |
2 points
QUESTION 2
Management institutes, certification agencies, and headhunting firms are examples of specialized intermediaries for:
financial markets. | ||
markets for managerial talent. | ||
markets for products. | ||
auction markets. | ||
labor market. |
2 points
QUESTION 3
_____ involves analyzing markets for their potential size, accessibility, cost of operations, and buyer needs and practices to aid the company in deciding whether to invest in entering that market.
Search retargeting | ||
Unique selling proposition | ||
Rebranding | ||
First-mover advantage | ||
Market due diligence |
2 points
QUESTION 4
Consumer safari refers to the initiatives taken by Unilever executives to spend a day with consumers in their homes to:
understand how they use products. | ||
convince them to use more Unilever products. | ||
train them to make multiple use of their products. | ||
estimate how many products they use. | ||
help them set up cottage industries for their products. |
2 points
QUESTION 5
_____ refer to the forces of change whose direction and pace is largely unknown.
Uncertainties | ||
Trends | ||
Occurrences | ||
Scenarios | ||
Forecasts |
2 points
QUESTION 6
_____ are straight-line, one-factor projections from present to future.
Estimates | ||
Opportunities | ||
Scenarios | ||
Forecasts | ||
Plans |
2 points
QUESTION 7
The United States is separated from Nigeria by 5,840 miles and the Atlantic Ocean. According to the CAGE framework this is a case of:
emotional distance. | ||
economic distance. | ||
cultural distance. | ||
geographic distance. | ||
administrative distance. |
2 points
QUESTION 8
The GDP of France is 2.113 trillion USD whereas Sierra Leone's GDP is approximately 4.812 billion USD. According to the CAGE framework, this is a case of:
emotional distance. | ||
economic distance. | ||
cultural distance. | ||
geographic distance. | ||
administrative distance. |
2 points
QUESTION 9
_____ occurs when a function is taken out of one's country of residence to be performed in another country, generally at a lower cost.
Open sourcing | ||
Offshoring | ||
Exporting | ||
Importing | ||
Licensing |
2 points
QUESTION 10
Which of the following is true of acquisitions?
The acquiring company will be eligible for any financial help from the company whose shares it is trying to acquire. | ||
It affords the firm maximum control and has the most potential to provide above-average returns. | ||
The acquiring company enters into an agreement with the target business to pursue a set of agreed-upon goals while remaining independent organizations. | ||
The acquiring firm avoids the expense of establishing operations in the new country. | ||
The acquiring company gains control of another firm by purchasing its stock. |
2 points
QUESTION 11
Which of the following statements holds true for the ISO 9001:2008 certification?
Organizations which supply raw materials are barred from applying for the ISO 9001:2008 certification. | ||
Companies which meet the criteria of a minimum financial turnover can apply for the ISO 9001:2008 certification. | ||
The ISO 9001:2008 certification is a mark that a company's products and services have met quality standards. | ||
Companies that had achieved ISO 9001:2000 certification were exempt from being recertified to meet ISO 9001:2008 standards. | ||
ISO 9001:2008 certification specifically focuses on the environment. |
2 points
QUESTION 12
_____ refers to buying goods and services from foreign sources and bringing them back into the home country.
Open sourcing | ||
Offshoring | ||
Exporting | ||
Importing | ||
Farmshoring |
2 points
QUESTION 13
The _____ is the contract between the exporter and the carrier, authorizing the carrier to transport the goods to the buyer's destination.
letter of credit | ||
bill of lading | ||
customs invoice | ||
export declaration | ||
license |
2 points
QUESTION 14
_____ is the document by which the exporter tells the importer to pay a specified amount at a specified time.
Letter of credit | ||
Bill of lading | ||
Customs invoice | ||
Insurance certificate | ||
Bill of exchange |
2 points
QUESTION 15
Which of the following can also function as collateral against loans?
Certificate of origin | ||
Export declaration | ||
License | ||
Customs invoice | ||
Bill of lading |
2 points
QUESTION 16
_____ refers to the financing granted against collateral, which can be the imported/exported goods.
Angel funding | ||
Purchase Order Financing | ||
Secured financing | ||
Overdraft | ||
Cash advance |
2 points
QUESTION 17
Which of the following is a contractual mode of entry into a foreign market?
Greenfield ventures | ||
Licensing | ||
Joint ventures | ||
Acquisition | ||
Merger |
2 points
QUESTION 18
_____ refers to an organization that assists foreign companies in exporting their products to Japan by providing free-market entry information and business-partner matching as well as some subsidies.
Japan Bank for International Cooperation | ||
Japan External Trade Organization | ||
Development Bank of Japan | ||
Master Trust Bank of Japan | ||
Japan Post Bank Company |
2 points
QUESTION 19
Which of the following statements holds true for a nonentity joint venture?
In a nonentity joint venture, the partner with the smaller capital investment loses control over the joint venture after a period of two months. | ||
In a nonentity joint venture, each of the partners contributes capital and resources in exchange for an equity stake and share in any resulting profits. | ||
In a nonentity joint venture, the control of the joint venture is in the hands of the party which makes the larger capital investment. | ||
In a nonentity joint venture, there is no contribution of capital to form a new entity. | ||
In a nonentity joint venture the benefit gained is in the form of collective profits rather than individual profits. |
2 points
QUESTION 20
The _____ is a legal document issued by a bank at the importer's (or buyer's) request wherein the importer promises to pay a specified amount of money when the bank receives documents about the shipment.
export declaration | ||
license | ||
letter of credit | ||
bill of lading | ||
customs invoice |
2 points
QUESTION 21
_____ refers to the constellation of business, corporate, and international strategy elements, which managers must consider when making decisions.
Five Forces Analysis | ||
Cluster model | ||
Strategy diamond | ||
Porter's four corners model | ||
Strategic grouping |
2 points
QUESTION 22
Strategy implementation is the process of:
deciding which strategies to follow in order to diversify. | ||
performing all the activities necessary to do what has been planned. | ||
deciding the businesses in which an organization would compete. | ||
addressing the issue of the kind of strategies an organization would follow. | ||
devising plans to add value to the existing line of business. |
2 points
QUESTION 23
The _____ function requires monitoring performance so that it meets the performance standards established by the organization.
controlling | ||
leading | ||
planning | ||
organizing | ||
job design |
2 points
QUESTION 24
_____ refers to the sequence of activities that include the various steps of the supply chain as well as additional activities, such as marketing, sales, and service.
Value chain | ||
Differentiation | ||
Cost leadership | ||
Scope | ||
Homesourcing |
2 points
QUESTION 25
Outsourcing involves:
diversifying into a new business. | ||
the sale of products or services in one country that are sourced in another country. | ||
the company delegating an entire process to the outsource vendor. | ||
guiding the choice of markets that a firm competes in. | ||
performing a service by staff from within an organization and also by an external service provider. |
2 points
QUESTION 26
The U.S. fast-food chain Sonic will only open new outlets in states that are adjacent to states where it already has stores. This is an example of:
differentiation. | ||
increasing vertical scope. | ||
diversification. | ||
offshoring. | ||
increasing geographic scope. |
2 points
QUESTION 27
_____, which are a part of the SWOT analysis, assess the external attractive factors that represent the reason for a business to exist and prosper.
Strengths | ||
Weaknesses | ||
Threats | ||
Opportunities | ||
Strategies |
2 points
QUESTION 28
_____ refers to the number of different topographical markets in which an organization participates.
Geographic scope | ||
Value chain | ||
Differentiation | ||
Cost leadership | ||
Offshoring |
2 points
QUESTION 29
The first step in the planning process is:
establishing organizational objectives. | ||
formulating and ensuring the effective implementation of plans. | ||
the SWOT analysis. | ||
identifying multiple ways of achieving organizational objectives. | ||
monitoring the progress and evaluating the success of the plans. |
2 points
QUESTION 30
In Holland, KFC makes a potato-and-onion croquette, while in France it sells pastries alongside chicken. KFC:
has centralized its business processes to enable it to provide the services mentioned. | ||
assumes that consumer needs and desires vary by country. | ||
assumes that the world is flat. | ||
sells the same products in the same way in every country. | ||
is following the cost-leadership strategy. |
2 points
QUESTION 31
An automobile giant headquartered in the United States sells high-end bikes across the world. It wants to enter an emerging market. Customers in the market cannot afford the types of accessories used in the bikes. Thus the regional branch of the organization makes an autonomous decision to remove the accessories and to offer a toned-down version of the bikes to compete in the emerging market. This decision is accepted by the headquarters on the principle that the man on the ground is the best judge of local conditions. The above serves as an example of a(n):
decentralized organizational structure. | ||
reverse engineering. | ||
centralized organizational structure. | ||
reverse innovation. | ||
open sourcing. |
2 points
QUESTION 32
Nike products are manufactured in factories in countries such as China, Vietnam, Indonesia, and Mexico. Wholesalers, retailers, agents, and brokers are intermediaries who help in bringing the products to the consumer. These intermediaries bring the products from the factories to the consumers. They serve as an example of:
product branding. | ||
market positioning. | ||
market segmentation. | ||
channel of distribution. | ||
social marketing. |
2 points
QUESTION 33
Which of the following statements holds true for a global brand?
It refers to the brand name of a product that has worldwide recognition. | ||
It refers to the marketing strategy in which a firm marketing a product with a well-developed image uses the same brand name in a different product category. | ||
It refers to products that make the world less flat because of lack of recognition across countries. | ||
It refers to the product that is distributed nationally under a brand name owned by the producer or distributor. | ||
It refers to the changing the identity of a product, relative to the identity of competing products, in the collective minds of the target market. |
2 points
QUESTION 34
An organization that manufactures readymade cotton shirts sources the raw material from all over the world. It does this as a precaution against the failure of one or more companies to deliver the raw materials. The above serves as an example of:
open-sourcing. | ||
multisourcing. | ||
sole-sourcing. | ||
home sourcing. | ||
outsourcing. |
2 points
QUESTION 35
Which of the following holds true for product adaptation?
It refers to the company strategy of modifying an existing product in a way that makes it better fit local needs. | ||
It refers to the total composite of products offered by a particular organization. | ||
It refers to the strategy of taking the company's current products and selling them in other countries without making changes to the product. | ||
It refers to the creation of a new name, term, symbol, design, or a combination of them for an established brand with the intention of developing a differentiated position in the mind of stakeholders and competitors. | ||
It refers to the strategy of creating an entirely new product for a given local market. |
2 points
QUESTION 36
In marketing, market segmentation refers to the:
process of dividing a larger market into smaller markets that share a common characteristic, such as age, gender, income level, or lifestyle. | ||
combination of the four Ps of marketing that can be customized for different countries. | ||
commerce areas where because of price differences across countries, consumers are able to cross international borders to legally purchase products at lower prices than in their home country. | ||
commerce areas where vendors purposely deceive buyers by altering products and then selling them as branded products at a bargain cost. | ||
set of expectations, memories, stories and relationships that-taken together-account for a consumer's decision to choose one product or service over another. |
2 points
QUESTION 37
In marketing, which of the following holds true for counterfeit markets?
It refers to the process of dividing a larger market into smaller markets that share a common characteristic, such as age, gender, income level, or lifestyle. | ||
It refers to the trade of goods and services that are illegal in themselves and/or distributed through illegal channels. | ||
It refers to the commerce areas where, because of price differences across countries, consumers are able to cross international borders to legally purchase products at lower prices than in their home country. | ||
It refers to the commerce areas where vendors purposely deceive buyers by altering products and then sell them as branded products at a bargain cost. | ||
It refers to the secretive, unregulated (though often technically legal) trading in commodity futures. |
2 points
QUESTION 38
_____ refers to buying raw materials, components, or services from one supplier exclusively, rather than buying from two or more suppliers.
Open-sourcing | ||
Multisourcing | ||
Sole-sourcing | ||
Home-sourcing | ||
Outsourcing |
2 points
QUESTION 39
_____ refers to a situation which means that there is no more stock of the company's product.
Stock of record | ||
Stock-check | ||
Safety stock | ||
Stock call | ||
Stock-out |
2 points
QUESTION 40
Which of the following statements holds true for the indirect channel of distribution?
It refers to the shortest channel of distribution, consisting of just the producer and the end consumer. | ||
It refers to the combination of the four Ps of marketing that can be customized for different countries. | ||
It refers to a channel of distribution which contains one or more intermediaries between the consumer and the producer. | ||
It refers to a channel of distribution where the customer is the first and not the last link in the distribution chain. | ||
It refers to the channel of distribution where the company sells its products to the consumers in other countries via the internet without using local retailers. |
I have a essay written up already, the problem is that I submitted it and received a 62% return from turnitin, which is totally unacceptable. It must be below 20%. Is it possible for you to look over it, make any corrections or suggestions to re-submit it. The majority of the repetitiveness was from my intro paragraph and the definitions I used in the essay. Sent at 04:42 AM The essay is attach. I will need this by this evening if that's possible. thanks
Identify the type of corporate restricting that fits with common theories of what are assumed to be causes of mergers and acquisitions.
Corporate reconstructing is more often defined as re-designing organization’s practice and structure; so to remain competitive and sustainable in the market (s). There may be several reasons for corporate restructuring. These includes, but not limited to, re-positioning in the market, discovery of a new market or becoming more profitable and/or economical. The corporate restructuring is generally classified into or two different categories: operational reconstructing and financial reconstructing. This entails changes in the alignment of firm’s asset structure by acquiring new business outright, by partial sale, by a spin-off of companies or via product lines. This can also include downsizing through closure of non-profitable units. Financial reconstructing deals with the changes in the capital structure of the firm. Share repurchase or adding debt in capital structure; just to name. Financial limiting hardly deals with mergers and acquisitions, hence we will discuss the cause of mergers and acquisitioning and how it is related to that the operational restructuring only.
Omit the chart in the question!
There are several types of Restructuring are given below:
A merger is a combination of two or more firms who combine all operations, officers, structure and other functions of business to form a new entity. Desired effect being not just the accumulation of assets and liabilities of the distinct entities, but also to achieve several other benefits such as: economics of scale, acquisition of new technologies and having access to new markets. Additionally, the merger allows for one company giving shareholders in the other stock in exchange for surrounding the stock of the first company. And it allow for the entities to retain its original identity.
Mergers can be classified into the following categories:
Horizontal Mergers
Two merged units were doing the same business i.e. TMobile and Sprint they were competitors with one another in the market. The basic motive in this type of merger is to consolidate in the market so as to gain advantage in negotiating with customers as well as having better position with respect to other competitors.
Vertical Mergers
This type of mergers is conducted between customer and suppliers of a value chain process and main motive in this type of merger is gain maximum efficiency in supply chain and minimization of transaction cost.
Congener Mergers
In this type of mergers, the two firms will be sharing similar kind of industry structure at least in one form of their operation and therefore try to combine operation in that one form and get efficiency benefit in supply chain and other operations.
Conglomerate
A conglomerate merger is a merger between two firms having unrelated business. The motive behind a conglomerate is a.) Better utilization of financial resources b.) Increase in debt capacity, c.) Increase in the share price by increased EPS with decreased cost capital d) Cross selling and e.) Synergy
Cash-out merger
In this type of merger the share of one unit involved in merger don’t want to retain their share in the merged unit and therefore are compensated with cash in place of the share.
Acquisitions or take-over has said to have happened when the acquirer company buys out majority of the shares of the acquired company and the ownership of the assets and liabilities of the acquired company get transferred to the acquirer company. The process of acquisition or take-over may be conducted in both friendly and hostile manner depending upon the specific strategy of the acquirer.
Friendly takeover
In a friendly takeover, the target’s board and management recommend shareholders’ approval. To gain control, the acquiring company usually will offer a premium to the current stock price. The excess of the price over the target’s premerger share price is called a purchase premium and can vary widely by country, which reflects the perceived value of obtaining a controlling interest in the target, the value of expected synergies resulting from combining the two entities and any overpayment of the target firm. Acquirers often prefer friendly takeovers because the post-merger integrations process in usually more expeditious when both parties are cooperating fully and customer, employee attrition is less.
Hostile takeover
A Hostile takeover occurs when the offer is unsolicited, the approach was contested by the target’s management and control changed hands. The acquirer prefers hostile mode rove the friendly mode only when it becomes possible to acquire the shares in a friendly mode. The acquirer may attempt to circumvent management by offering to buy shares directly from the targets from the target’s shareholders and buy shares in a public stock exchange. A hostile takeover can be accomplished through either a tender offer or a proxy fight.
The Pros to a merge and an acquisition is that both types of transactions include the potential increase in the competitiveness, cost-efficiency and stock value of the new enterprise. And with everything pro there has to be Cons. One disadvantage of these transactions; it could be very expensive. A significant amount of capital typically must be raided before entering negotiations. Another mergers drawback is that there is now a new owner, co-owners, in which they must now collaborate.
In conclusion any entity or entities that have chosen to merge or entering an acquisition should consider prior to move. Identify the goals of acquisition clearly, if the move is a good fit and what conditions must be met for the pursing the merge or the acquisition. An in-depth due diligence must occur; the financial records must be thoroughly examined, is the marketplace a profitable absolute, as well as the senior executives should also be conducted. There could be potential for disaster if all areas are not explored. Negotiation process is should have clear written rules and guidelines before following through with the merger or acquisition. Assembling an acquisition team can be very valuable to the success of the new owners. The team will be able to define the responsibilities of each company; considering all parties are in agreement with the new implementations such as computer systems, new HR policies and so forth. Lastly, be flexible and ready for unexpected surprises and have a supplemental plan in case of potential disasters.