Global strategic planning helps top management to identify opportunities and threats from all over the world, formulate strategies to handle them, and stipulate how to finance and manage the strategies' implementation.

TRUE

The ability of a company to have higher rates of profit than its competitors is termed as

Competitive advantage

The value chain refers to the set of value-creating activities that the company is involved with, ranging from sourcing of basic raw materials to the delivery of final product or service.

TRUE

The knowledge of an individual that is difficult to express clearly and therefore difficult to transmit to others is called ______ knowledge.

Tacit

______ is the process by which an organization determines where it is going in the future, how it will get there, and how it will assess whether and to what extent it has achieved its goals.

Strategic planning

Which of the following defines the purpose for a company's existence, including its business objectives, and approach for reaching those objectives?

The mission statement

Global strategic planning is a rigid and linear process.

FALSE

Without a _____, the management cannot formulate the production, financial, and procurement plans.

Sales forecast

____ is concerned with the way firms make fundamental choices about developing and deploying scarce resources globally.

International strategy

The extent of local customization of product offerings tends to be limited for a company pursuing the home replication strategy.

TRUE

Some companies centralize product development functions in their home country. After they develop differentiated products in the home market, the innovations are transferred to foreign markets in order to capture additional values. What is this strategy called?

Home replication strategy

Strategic planning is done in seclusion and only by the company's most senior executives.

FALSE

When a company is under strong pressure to adapt its products or services for local markets, it uses a _______ strategy.

Multidomestic

______ are broad guidelines issued by upper management for the purpose of assisting lower-level managers in handling recurring problems.

Policies

The top management of companies generally accepts the fact that, to be effective, strategic planning processes should be permit:

Ideas to surface from anywhere in the organization and at any time