Chapter 9

Question 1

Liassez-Faire

Answer 1

Leadership philosophy characterized by an absence of managerial decision making

Question 2

Strategy

Answer 2

Actions that managers take to attain the goals of the firm.

Question 3

Value creation

Answer 3

Measured by difference between V (value) and C (cost) of a firm cost of production and the quality that consumers perceive in its products.

Question 4

Profitability

Answer 4

It´s the rate of return a firm makes on its invested capital

Question 5

Strategic positioning

Answer 5

When Porter refers to a firm should be explicit about choice of strategic emphasis regarding value creation (differentiation) and low cost.

Question 6

One result from expanding globally

Answer 6

Opportunity to increase their profitability and rate of profit grow

Question 7

Firms that compete in the global marketplace face two competitive pressures

Answer 7

Pressures for Cost Reductions and Pressures for Local Responsivenes