Which of the following statements most accurately describes the extent to which GM and Toyota outsource components?

Which of the following statements most accurately describes the extent to which GM and Toyota outsource components?

A) GM and Toyota each outsource approximately 50% of their components.
B) Toyota outsources about 50% of its components; GM outsources about 75%.
C) GM outsources about 50% of its components; Toyota outsources about 75%.
D) Neither GM nor Toyota outsources a significant proportion of its components.
E) GM and Toyota each outsource approximately 25% of their components.


Answer: C) GM outsources about 50% of its components; Toyota outsources about 75%.

Another perspective on the future of cooperative strategies envisions the emergence of:

Another perspective on the future of cooperative strategies envisions the emergence of:

A) mergers and acquisition.
B) virtual corporations.
C) franchising.
D) joint ventures.
E) keiretsu.


Answer: B) virtual corporations.

Saab markets two luxury car models, both prized by drivers for their "quirkiness." About 30% of Saab's sales come from the USA, with most of the rest from Western Europe. Which strategy does Saab appear to be using?

Saab markets two luxury car models, both prized by drivers for their "quirkiness." About 30% of Saab's sales come from the USA, with most of the rest from Western Europe. Which strategy does Saab appear to be using?

A) country concentration/market segment concentration
B) country diversification/market segment concentration
C) country concentration/market segment diversification
D) country diversification/market segment diversification
E) none of the above


Answer: A) country concentration/market segment concentration

Boeing developed the wide-bodied aircraft, the 777, with about ________ of the work subcontracted out to Mitsubishi, Fuji, and Kawasaki.

Boeing developed the wide-bodied aircraft, the 777, with about ________ of the work subcontracted out to Mitsubishi, Fuji, and Kawasaki.

A) 50%
B) 25%
C) 20%
D) 60%
E) 75%


Answer: C) 20%

A number of factors combine to make Russia an excellent location for an alliance which do not include:

A number of factors combine to make Russia an excellent location for an alliance which do not include:

A) a well-educated workforce.
B) quality is important to Russian consumers.
C) abundance of supplies.
D) potential for economic growth.
E) potential for growth in service sector.


Answer: C) abundance of supplies.

Which of the following is not true of Japanese keiretsu?

Which of the following is not true of Japanese keiretsu?

A) promotes risk sharing
B) promotes long-term employment
C) ensures low prices for Japanese consumers
D) blocks foreign suppliers from the Japanese market
E) relationships are cemented by bank ownership


Answer: C) ensures low prices for Japanese consumers