When a firm focuses on increasing profitability by customizing the product or service so that?

A firm's _____ can be defined as the actions that managers take to attain the goals of the firm.

The text defines _____ as the rate of return that the firm makes on its invested capital (ROIC).

Profit growth is measured by:

the percentage increase in net profits over time

Which of the following is NOT a strategy for a firm to achieve profitability?

The amount of value created by a firm is measured by:

estimating the difference between its costs of production and the value that consumers perceive in its products.

The price a firm charges for a good or service is typically less than the value placed on that good or service by the customer. This is because the consumer captures some of that value in the form of what economists call _____.

The price that reflects an individual's assessment of the value of a product constitutes:

the customer's reservation price.

A strategy that focuses primarily on increasing the attractiveness of a product is referred to as a _____ strategy.

There are two basic strategies for improving a firm's profitability. These are:

a differentiation strategy and a low-cost strategy

Superior value creation relative to rivals requires a firm to:

ensure that the gap between value and cost of production be greater than the gap attained by competitors.

The _____ of a firm is measured by the difference between value and cost of a product.

The value creation activities of a firm can be categorized as _____ and _____ activities.

Which of the following is an example of a primary activity in a firm?

When MTV engages in the creation, programming, and broadcasting of content, such as music videos and thematic shows, it is carrying out the function of:

This function can create a perception of superior value in the minds of consumers by solving customer problems and supporting customers after they have purchased the product.

The _____ function controls the transmission of physical materials through the value chain, from procurement through production and into distribution.

Skills within the firm that competitors cannot easily match or imitate are referred to as _____.

If the most productive labor force for assembly operations is in Mexico, assembly operations should be based in Mexico. This is based on the principle of:

A firm creates a(n) _____ by dispersing the stages of its value chain to those locations around the globe where the value added is maximized or where the costs of value creation are minimized.

Which of the following is an important caveat that is likely to discourage global expansion?

The _____ refers to the systematic reductions in production costs that have been observed to occur over the life of a product.

A number of studies have observed that a product's production costs decline by some quantity about each time _____ doubles.

The two phenomena that help explain the experience curve are:

learning effects and economies of scale

Which of the following is true of economies of scale?

A firm may not be able to attain an efficient scale of production unless it serves global markets.

Firms that compete in the global marketplace typically face two types of competitive pressures: pressures for _____ and pressures to _____.

cost reductions; be locally responsive

_____ exist(s) when the tastes and preferences of consumers in different nations are similar if not identical

Why do companies find it a difficult strategic challenge when they face high pressures for both cost reductions and local responsiveness?

Being locally responsive tends to raise costs.

Which of the following conditions would be most favorable for reaping global scale economies?

low demand for local responsiveness

Which of the following is an argument presented by commentators claiming that demands for local customization are on the decline worldwide?

Customer tastes have converged worldwide

Among global firms, which of the following is NOT a factor that is driving pressures for local responsiveness?

Similarities in consumer tastes and preferences

Firms use four basic strategies to compete in the international environment. These are:

global standardization strategy, a localization strategy, a transnational strategy, and an international strategy.

The appropriateness of the strategy that a firm chooses to use in an international market varies with the extent of pressures for _____ and ______.

cost reductions; local responsiveness

Firms that pursue a(n) _____ strategy focus on increasing profitability and profit growth by reaping the cost reductions that come from economies of scale, learning effects, and location economies.

Which of the following is NOT true of firms pursuing a global standardization strategy?

The production, marketing, and R&D activities of such firms are distributed across various locations.

Which of the following strategies is apt when the firm simultaneously faces both strong cost pressures and strong pressures for local responsiveness?

Which strategy makes most sense when there are strong pressures for cost reductions and demands for local responsiveness are minimal?

Global standardization strategy

Which strategy focuses on increasing profitability by customizing the firm's goods or services so that they provide a good match to tastes and preferences in different national markets?

Which of the following could be the most appropriate strategy for MTV, given the business imperative that their programming provides a good match to tastes and preferences in different national markets?

Firms that pursue a(n) _____ strategy try to create value by transferring valuable skills and products to foreign markets where indigenous competitors lack those skills and products.

Xerox had a monopoly on photocopiers for several years as the technology underlying the photocopier was protected by strong patents. As it served a universal need, this favorable position led Xerox to pursue a(n) _____ strategy

The term _____ refers to cooperative agreements between potential or actual competitors.

One of the principal risks with strategic alliances is:

a firm can give away more than it receives

According to the text, the success of a strategic alliance is a function of three factors. These are: partner selection, alliance structure, and _____________.

the manner in which the alliance is managed

When a company focuses on increasing its profitability by reaping cost reductions that come from economies of scale and location economies it is using a N ):?

What strategy applies best to firms that are selling a product that serves universal needs but don't face significant competitors?

What are three ways a company can increase its profitability and rate of profit growth by expanding internationally quizlet?

How do firms approach customization of products when using the global standardization strategy?