CHAPTER 1The Nature of Strategic Management

True/False with answers

Introduction

1. The underpinnings of strategic management hinge on managers gaining an understanding of competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders and customers worldwide.

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2. The majority of Americans do not think the Internet will change society more than the telephone and television combined, although it has revolutionized the way of doing business.

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3. Worldwide ecological destruction and deterioration is a strategic issue that needs immediate and substantive attention by all businesses and managers, according to Mark Starik.

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What Is Strategic Management?

4. To exploit and create new and different opportunities for tomorrow are the purposes of strategic management.

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5. Even though useful, strategic planning has been cast aside by corporate America since the early 1990s.

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6. Identifying a firm’s internal opportunities and weaknesses is part of strategy formulation.

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7. Resource allocation is included in strategy-formulation activities.

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8. The terms strategic management and strategy implementation are synonymous.

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9. The first essential strategy-formulation activity is establishing annual objectives.

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10. The focus of strategic management is on solving problems that an organization encounters.

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11. Decision making is the final activity performed during strategy formulation.

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12. Middle management sets the moral tone of an organization, which is then filtered downward to lower management for implementation.

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13. Strategy evaluation is the action stage of the strategic-management process.

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14. Strategy evaluation involves taking corrective actions.

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15. Strategy implementation consists of three basic activities: (1) establish objectives, (2) devise policies, and (3) measure performance.

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16. Strategy implementation is often considered to be the most difficult stage in the strategic-management process because it requires personal discipline, commitment and sacrifice.

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17. Strategy-implementation activities impact all employees and managers in an organization, whereas strategy formulation may not directly involve certain department managers.

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18. Strategy formulation, implementation and evaluation activities occur at three hierarchical levels in a large diversified organization: corporate, divisional and functional.

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19. According to recent research, the strategic management process can benefit only large firms.

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20. A necessary part of strategy implementation is devising policies.

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21. One of the fundamental strategy evaluation activities is reviewing external and internal factors that are the bases for current strategies.

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22. Strategy formulation occurs only at the corporate level in an organization, given the need for long-range thinking.

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23. According to Peter Drucker, the prime task of strategic management is thinking through the mission of a business.

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24. An objective, systematic approach for making major decisions in an organization is a way to describe the strategic-management process.

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25. Strategic management is a cross-functional discipline that lends itself to a one-two-three type approach.

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26. Strategic management is an attempt to organize qualitative and quantitative information in a way that allows effective decisions to be made under conditions of uncertainty.

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27. When Albert Einstein said, “I believe in intuition and inspiration. Imagination is more important than knowledge,” he acknowledged the importance of intuition.

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28. Managers at all levels in an organization inject their intuition and judgment into the strategic management process.

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29. Choosing an intuitive or analytic approach to decision making is not an either/or proposition.

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30. Analytical and intuitive thinking should complement each other.

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31. One’s past experiences and judgment are what strategic decisions are based on.

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32. The ability to identify and adapt to change is important for firms to have.

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33. In today’s business environment, the only constant is change.

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Key Terms in Strategic Management

34. Strategists have little responsibility for the success or failure of an enterprise.

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35. Strategists are usually found in higher levels of management and have considerable authority for decision making in the firm.

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36. The middle manager is the most visible and critical strategic manager.

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37. Different job titles of strategists are chief executive officer, president, owner, chairman of the board, executive director, chancellor, dean, or entrepreneur.

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38. Helping to protect the environment is the first social responsibility of a business because if the environment is damaged, the business cannot survive.

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39. The five largest banks in the world are based in Japan.

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40. All strategists have similar attitudes, values, ethics and concerns for social responsibility.

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41. Views on social responsibility are similar among all strategists.

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42. A vision statement answers the question “What is our business?” whereas a mission statement answers, “What do we want to become?”

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43. A mission statement embodies the philosophy of an organization’s strategists.

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44. Largely beyond the control of a single organization are opportunities and threats.

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45. A clear mission statement describes the values and priorities of an organization.

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46. An organization’s statement of purpose is a mission statement.

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47. A successful firm will capitalize on internal strengths and improve upon weaknesses.

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48. Strengths and weaknesses are determined relative to competitors.

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49. In a multidivisional firm, objectives should be established for the overall company and not for each division.

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50. The basis for allocating resources is represented by long-term objectives.

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51. Measurable, quantitative, challenging, realistic, consistent and prioritized are what objectives should be.

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52. Annual objectives should be established at the corporate level, divisional level and/or functional level.

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53. Annual objectives are long-term milestones that organizations must achieve to reach short-term objectives.

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54. Opportunities are the means by which annual objectives will be achieved.

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55. According to research, a healthier workforce can more effectively and efficiently implement strategies.

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The Strategic-Management Model

56. Identifying an organization’s existing vision, mission, objectives and strategies is the final step for the strategic management process.

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57. The strategic-management process is static in an organization.

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58. Application of the strategic-management process is typically more formal in larger and well-established organizations.

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Benefits of Strategic Management

59. In shaping its own future, strategic management allows an organization to be more proactive than reactive.

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60. Followed by commitment, understanding is the most important benefit of strategic management.

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61. Through involvement in the strategic-management process, stakeholders become “owners” of a firm’s strategy.

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62. More important than a strategic-management dialogue is a strategic-management document.

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63. More and more organizations are centralizing the strategic-management process.

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64. The process of strategic management is as important as resultant documents.

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65. Only top-level managers in small businesses need to be actively involved in strategic management.

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66. Firms with planning systems more closely resembling strategic-management theory generally exhibit superior long-term financial performance relative to their industry.

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67. Low-performing firms typically underestimate their competitor’s strengths and overestimate their own firm’s strengths.

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68. Strategic management provides a cooperative, integrated and enthusiastic approach to tackling problems and opportunities, according to Greenley.

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Why Some Firms Do No Strategic Planning

69. The poor reward structure is one reason managers do not engage in strategic planning.

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70. Crisis and fires in an organization allows managers the training and time for effective strategic planning.

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Pitfalls in Doing Strategic Planning

71. Top managers making many intuitive decisions that conflict with the formal plan is one pitfall managers should avoid in strategic planning.

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72. Managers must be very formal in strategic planning, as being formal induces flexibility and creativity.

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Guidelines for Effective Strategic Management

73. An integral part of strategy implementation must be to evaluate the quality of the strategic-management process.

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74. Strategic-management must be a self-reflective learning process that familiarizes managers and employees in the organization with key strategic issues and feasible alternatives for resolving those issues.

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75. Strategic decisions require trade-offs such as long-range versus short-range considerations or minimizing costs versus increasing shareholders’ wealth.

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Business Ethics and Strategic Management

76. Today, managers and employees can be found personally liable if they ignore, conceal, or disregard a pollution problem.

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77. A code of business ethics can provide a basis on which policies can be devised to guide daily behavior and decisions at the work site.

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78. Merely having a code of ethics is not sufficient to ensure ethical business behavior.

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79. Internet privacy is a legal issue not an ethical issue, according to experts.

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80. An integral part of the responsibility of all managers is to provide ethics leadership by constant example and demonstration.

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81. Most firms today believe strategic disadvantage comes from ethics training and an ethics culture.

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82. Insider trading, hostile takeovers and using nonunion labor in a union shop are business actions always considered to be unethical.

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83. Ethical standards come out of history and heritage in a final analysis.

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Comparing Business and Military Strategy

84. In many respects, business strategy is like military strategy.

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85. Whereas business strategy is based on an assumption of conflict, military strategy is based on war.

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The Nature of Global Competition

86. Although more time and effort are required to identify and evaluate external trends and events in multinational corporations, strategy implementation is far easier.

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87. The United States comprises 31 percent of the world’s population.

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88. International operations can be as simple as exporting a product to a single foreign country.

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89. Minimal competition in foreign markets is the greatest advantage of international operations.

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90. One risk in international operations is that nationalistic factions could seize the operations.

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Conclusion

91. All organizations have a strategy from their inception, even if the strategy just evolves out of day-to-day operations.

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92. Nonprofit organizations have less need for strategic management, as they are not interested in making a profit.

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93. Firms can be more proactive with strategic management.

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Multiple Choice

Introduction

94. __________ percent of Americans think the Internet will change society more than the telephone and television combined.a. 91 b. 74 c. 37 d. 56 e. 100

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95. The nature and core of buying and selling in nearly all industries has been changed by a. the Internet.b. political borders.c. corporate greed.d. customer and employee focus.e. the government.

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What Is Strategic Management?

96. What can be defined as the art and science of formulating, implementing and evaluating cross-functional decisions that enable an organization to achieve its objectives?a. Strategy formulationb. Strategy evaluationc. Strategy implementationd. Strategic management

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97. ____________ is used to refer to strategic formulation, implementation and evaluation, with ______________ referring only to strategic formulation.a. Strategic planning; strategic managementb. Strategic planning; strategic processingc. Strategic management; strategic planningd. Strategic management; strategic processinge. Strategic implementation; strategic focus

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98. Conducting research to determine internal strengths and weaknesses is performed during which stage of strategic management?a. Formulationb. Implementationc. Evaluationd. Feedback

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99. Strategy formulation includes all of the following activities excepta. establishing a company mission.b. establishing long-term objectives.c. analyzing alternative strategiesd. measuring organizational performance.e. performing an external audit.

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100. What are the three stages of the strategic management process?a. Conflict, resolution and implementationb. Formulation, implementation and evaluationc. Formulation, execution and rewardd. Formulation, implementation and resolution

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101. An important activity in __________ is taking corrective action.a. strategy evaluationb. strategy implementationc. strategy formulationd. all of the above

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102. __________ means mobilizing employees and managers to put strategies into action.a. Formulating strategyb. Strategy evaluationc. Implementing strategyd. Strategic advantage

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103. __________ skills are especially critical for successful strategy implementation.a. Interpersonalb. Technicalc. Conceptuald. Thinking

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104. The activity that comes first in strategy evaluation isa. measuring organizational performanceb. reviewing internal and external factorsc. establishing annual objectivesd. establishing long-term objectivese. preparing a revised mission statement

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105. Which of the following is called the action phase of the strategic management process?a. Strategy formulationb. Strategy implementationc. Strategy evaluationd. Allocating resourcese. Measuring performance

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106. __________ is not a strategy-implementation activity.a. Taking corrective actionsb. Establishing annual objectivesc. Devising policiesd. Allocating resources

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107. What does strategy implementation involve?a. Establishing annual objectivesb. Devising policiesc. Allocating resourcesd. All of the abovee. b and c only

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108. Strategy evaluation is necessary becausea. internal and external factors are constantly changing.b. the SEC requires strategy evaluation.c. competitors change their strategies.d. the IRS requires strategy evaluation.

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109. Strategic management isa. a pure science.b. based mainly on intuition.c. needed mainly when organizational performance falls.d. based on the use of quantitative and qualitative information.

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110. Which statement best describes intuition?a. It represents the marginal factor in decision making.b. It represents a minor factor in decision making integrated with analysis.c. It should be coupled with analysis in decision making.d. It is better than analysis in decision making.

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111. The strategic-management processa. is a system of independent actions.b. follows a strict sequence of activities.c. requires long periods of time to be effective.d. is a system of interrelated functions.

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112. _________ and _________ are external changes transforming business and society today.a. E-commerce; strategyb. E-commerce; globalizationc. Strategy; globalizationd. Corporate culture; stakeholders

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Key Terms in Strategic Management

113. The _____________ is any manager who has responsibility for a unit or division, responsibility for profit and loss outcome, or direct authority over a major piece of the business.a. business unit holderb. external consultantc. strategistd. financial planner

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114. __________ are individuals in an organization most responsible for the success and failure of that organization.a. Strategistsb. Financial plannersc. Personnel directorsd. Stakeholders

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115. Most strategists agree the first social responsibility of any business must be to a. make enough profit to cover the costs of the future.b. protect the environment.c. provide a safe working environment for employees.d. provide inexpensive products/services to create the volume necessary for

turnover.

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116. Opponents of social responsiveness, such as Milton Friedman, argue that the highest responsibility of an enterprise is its __________ responsibility.a. moralb. politicalc. legald. technologicale. ethical

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117. Which of these is often considered the first step in strategic planning?a. Developing a vision statementb. Establishing goals and objectivesc. Making a profitd. Developing a mission statement

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118. What are enduring statements of purpose that distinguish one business from other similar firms?a. Policiesb. Mission statementsc. Objectivesd. Rules

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119. ___________ would not be part of the external environment of Chrysler.a. United Auto Workersb. The Federal Governmentc. Ford Motor Companyd. Customerse. All of the above are part of Chrysler’s external environment.

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120. Environmental scanninga. emphasizes internal factors over external information.b. examines key external factors.c. should be used by large companies, but is not necessary in small businessesd. All of the above are true of environmental scanning.

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121. One of the many reasons a mission statement is useful is bya. answering the question “What is our business?”b. describing the values of the firm.c. charting the direction of the firm.d. All of the abovee. None of the above

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122. __________ could be considered an external opportunity.a. An excellent research and development departmentb. Excellent advertising effectivenessc. A population shift to the Sun Beltd. Top management having many years of experiencee. Effective marketing segmentation

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123. Usually external opportunities and threats area. uncontrollable by a single organizationb. controlled by governmentsc. not as important as internal strengths and weaknessesd. key functions in strategy implementation

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124. Which of these can be defined as specific results an organization seeks to achieve in pursuing its basic mission?a. Strategiesb. Rulesc. Objectivesd. Policies

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125. Long-term objectives should bea. measurable.b. continually changing.c. reasonable.d. challenging.e. only a, c & d

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126. Internal __________ are activities in an organization that are performed especially well.a. opportunitiesb. competenciesc. strengthsd. managementd. factors

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127. The means by which long-term objectives will be achieved are calleda. strategies.b. strengths.c. weaknesses.d. policies.e. opportunities.

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128. __________ can best be described as short-term in nature.a. Mission statementsb. Tenurec. Annual objectivese. Strategies

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129. When (where) should annual objectives be established?a. In January every yearb. At the corporate, divisional and functional levelsc. At the corporate leveld. At the divisional and functional levels

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130. Annual objectives are especially important in strategy __________, whereas long-term objectives are particularly important in strategy __________.a. formulation; implementationb. implementation; evaluationc. evaluation; implementationd. implementation; formulation

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131. What are guides to decision making?a. Lawsb. Rulesc. Policies d. Procedurese. Goals Ans: c Page: 13

The Strategic-Management Model

132. Which of the following is not included in the strategic management model?a. Measure and evaluate performanceb. Perform internal research to identify customersc. Establish long-term objectivesd. Implement strategies

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133. The strategic-management processa. occurs once a year.b. is a sequential process.c. is a continuous process.d. applies mostly to companies with sales greater than $100 million.

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134. The strategic-management model can be used effectively bya. profit, nonprofit and government organizations.b. only for-profit organizations.c. only very large organizations.d. only small organizations.

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Benefits of Strategic Management

135. Strategic management enables an organization to __________, instead of companies just responding to threats in their business environment.a. be proactiveb. determine when the threat will subsidec. avoid the threatsd. defeat their competitors

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136. What is the act of strengthening employees’ sense of effectiveness by encouraging and rewarding them to participate in decision making and exercise initiative and imagination?a. Authoritarianismb. Proactionc. Empowermentd. Transformation

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137. How do line managers become “owners” of the strategy?a. By attending top manager meetings.b. By gathering information about competitors.c. By involvement in the strategic-management process.d. By becoming a shareholder of the firm.

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138. According to research, organizations using strategic management are __________ than those that do not.a. more profitable b. more complex c. less profitabled. less successful

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139. To what do strategists of low-performing organizations often attribute their firm’s weak performance? a. Poor economyb. Technological changec. Foreign competitiond. Paperwork deadlinese. All of the above

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140. ___________ businesses in the United States fail annually, according to Dun & Bradstreet.a. Fewer than 10,000b. Approximately 50 percentc. More than 100,000d. Between 20,000 to 30,000

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141. According to Greenley, strategic management offers all of these benefits except thata. it provides an objective view of management problems.b. it creates a framework for internal communication among personnel.c. it encourages a favorable attitude toward change.d. it maximizes the effects of adverse conditions and changes.e. it gives a degree of discipline and formality to the management of a business.

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Why Some Firms Do No Strategic Planning

142. __________ is not a reason for poor or no strategic planning in organizations.a. Wasting of timeb. Being content with successc. Fire-fightingd. Poor reward structuree. Inexpensiveness

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Pitfalls in Doing Strategic Planning

143. All of these are pitfalls an organization should avoid in strategic planning except whena. using plans as a standard for measuring performance.b. using strategic planning to gain control over decisions and resources.c. failing to involve key employees in all phases of planning.d. too hastily moving from mission development to strategy formulation.

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144. __________ is not a pitfall an organization should avoid in strategic planning.a. Failing to communicate the plan to employeesb. Involving all managers rather than delegating planning to a “planner”c. Top managers not actively supporting the strategic planning processd. Doing strategic planning only to satisfy accreditation or regulatory

requirements

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145. Which of the following statements is false?a. Open-mindedness is an important guideline for effective strategic

management.b. Strategic management must become a self-perpetuating socialist mechanism.c. No organization has unlimited resources.d. Strategic decisions require trade-offs.

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146. Principles of conduct that guide decision making are known asa. human rights.b. the Constitution.c. business ethics.d. nonprofit organization policies.

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Business Ethics and Strategic Management

147. A(n) ____________ can provide a basis on which policies can be devised to guide daily decisions and behavior at the work site.a. list of guidelinesb. policy for safetyc. vision statementd. code of business ethicse. annual objective

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148. The ____________ focuses on business ethics issues related to the Internet.a. E-Commerce Perspectiveb. mission statementc. vision statementd. B2B commercee. B2C Internet commerce

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149. Because they must take the __________ of the firm, strategists’ salaries are high compared to those of other individuals in the organization.a. moral risksb. social risksc. environmental risksd. societal criticism

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150. ___________ can be created by ethics training and an ethics culture.a. Competitive responsibilityb. Competitive advantagec. Strategic advantaged. Employee cooperation

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151. Which of these business actions is(are) always considered to be unethical?a. Poor product or service safetyb. Using nonunion labor in a union shopc. Dumping flawed products in a foreign marketd. Insider tradinge. All of the above

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152. Ethical standards come out of __________ in a final analysis.a. governmentb. competitorsc. history and heritaged. stakeholder analysis

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Comparing Business and Military Strategy

153. A strong __________ heritage underlies the study of strategic management.a. militaryb. governmentc. politicald. sociale. cultural

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154. Military strategy is based on an assumption of __________, whereas business strategy is based on an assumption of __________.a. conflict; cooperationb. conflict; competitionc. cooperation; conflictd. competition; conflicte. cooperation; competition

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The Nature of Global Competition

155. ____________ are organizations that conduct business operations across national borders.a. Domestic firmsb. Multinational corporationsc. Parent companiesd. Government-backed companies

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156. A __________ refers to a firm investing in international operations, while the _________ is the country where that business is conducted.a. parent company; host countryb. home country; parent companyc. parent country; host companyd. host company; home country

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157. __________ is perhaps the greatest advantage of international operations.a. Reduced tariffs and taxesb. Spreading economic risks over a wider number of marketsc. Access to global technology, culture and business practicesd. Gaining new customerse. Less-intense competition

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158. All of these are potential disadvantages of an international operation excepta. overestimated weaknesses and underestimated strengths of competitors.b. differing languages, cultures and value systems.c. reduced tariffs and taxes.d. complexity due to a multiple monetary system.e. all of these are potential disadvantages.

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Essay Questions

159. Compare and contrast strategic planning with strategic management.

Strategic planning is more often used in the business world, whereas strategic management is often used in academia. Sometimes, strategic management is used to refer to strategy formulation, implementation and evaluation, with strategic planning referring only to strategy formulation. The purpose of strategic management is to exploit and create new and different opportunities for tomorrow; long-range planning, in contrast, tries to optimize for tomorrow the trends of today.

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160. Which stage in the strategic-management process is most difficult? Explain why.

Strategy implementation is the most difficult stage in the strategic-management process because it requires personal discipline, commitment and sacrifice. Successful strategy implementation hinges upon managers’ ability to motivate employees, which is more an art than a science.

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161. Define what strategists are. Describe what they do in an organization.

Strategists are individuals who are most responsible for the success or failure of an organization. They help an organization gather, analyze and organize information. They track industry and competitive trends, develop forecasting models and scenario analyses, identify business threats and develop creative action plans. Strategic planners usually serve in a support or staff role. Usually found in higher levels of management, they typically have considerable authority for decision making in the firm.

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162. Explain environmental scanning.

Environmental scanning is the process of conducting research and gathering and assimilating external information. It identifies, monitors and evaluates external opportunities and threats.

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163. Discuss some forces that influence the formality of strategic-management systems.

Firms that compete in complex, rapidly changing environments, such as technology companies, tend to be more formal in strategic planning. Firms that have many divisions, products, markets and technologies also tend to be more formal in applying strategic-management concepts. Greater formality in applying the strategic-management process is usually positively related with the cost, comprehensiveness, accuracy and success of planning across all types and sizes of organization.

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164. List 10 major benefits of strategic management, as stated by Greenley.

There are 14 benefits stated by Greenley. Students are to list any 10 of the following: (1) it allows for identification, prioritization and exploitation of opportunities, (2) it provides an objective view of management problems, (3) it represents a framework for improved coordination and control of activities, (4) it minimizes the effects of adverse conditions and changes, (5) it allows major decisions to better support established objectives, (6) it allow more effective allocation of time and resources to identified opportunities, (7) it allows fewer resources and less time to be devoted to correcting erroneous or ad hoc decisions, (8) it creates a framework for internal communication among personnel, (9) it helps integrate the behavior of individuals into a total effort, (10) it provides a basis for clarifying individual responsibilities, (11) it encourages forward thinking, (12) it provides a cooperative, integrated and enthusiastic approach to tackling problems and opportunities, (13) it encourages a favorable attitude toward change, and (14) it gives a degree of discipline and formality to the management of a business.

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165. What are the pitfalls in strategic planning that management in an organization should watch out for or avoid? Identify any five pitfalls.

There are 13 pitfalls. Students should list any five of the following: (1) using strategic planning to gain control over decisions and resources, (2) doing strategic planning only to satisfy accreditation or regulatory requirements, (3) too hastily moving from mission development to strategy formulation, (4) failing to communicate the plan to employees, who continue to work in the dark, (5) top managers making many intuitive decisions that conflict with the formal plan, (6) top managers not actively supporting the strategic-planning process, (7) failing to use plans as a standard for measuring performance, (8) delegating planning to a “planner” rather than involving all managers, (9) failing to involve key employees in all phases of planning, (10) failing to create a collaborative climate supportive of change, (11) viewing planning to be unnecessary or unimportant, (12) becoming so engrossed in current problems that insufficient or no planning is done, and (13) being so formal in planning that flexibility and creativity are stifled.

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166. Explain what Drucker means when he says “Trees die from the top.”

“Trees die from the top,” can be explained as top management creates organizational spirit. When top management’s spirit dies, so does the rest of the company’s spirit. This leads to the downfall, or death, of the company.

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167. Compare and contrast business and military strategy.

Business and military strategy are very similar. A key aim of both business and military strategy is “to gain competitive advantage.” They both also try to use their own strengths to exploit competitor’s weaknesses. Happiness is not a result of accidental strategies in either business or military organizations. The element of surprise provides great competitive advantages in both military and business strategy; information systems that provide data on opponents’ or competitors’ strategies and resources are also vitally important. Finally, both business and military organizations must adapt to change and constantly improve to be successful.

While business and military strategy are the same in many ways, they have one major difference—business strategy is formulated, implemented and evaluated with an assumption of competition, whereas military strategy is based on an assumption of conflict.

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168. What are the advantages and disadvantages of having international operations? Explain.

International operations create many advantages for a company: 1) Foreign operations can absorb excess capacity, reduce unit costs and spread economic risks over a wider number of markets; 2) foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials and/or cheap labor; 3) competitors in foreign markets may not exist, or competition may be less intense than in domestic markets; 4) foreign operations may result in reduced tariffs, lower taxes and favorable political treatment in other countries; 5) joint ventures can enable firms to learn the technology, culture and business practices of other people and to make contacts with potential customers, suppliers, creditors and distributors in foreign countries; 6) many foreign governments and countries offer varied incentives to encourage foreign investment in specific locations; and 7) economies of scale can be achieved from operations in global rather than solely domestic markets. Larger-scale production and better efficiencies allow higher sales volumes and lower price offerings.

There are also numerous potential disadvantages of having internal operations; 1) nationalistic factions could seize foreign operations; 2) firms confront different and often little-understood social, cultural, demographic, environmental, political, governmental, legal, technological, economic and competitive forces when doing business internationally. These forces can make communication difficult between the parent firm and subsidiaries; 3) weaknesses of competitors in foreign lands are often overestimated, and strengths are often underestimated. Keeping informed about the number and nature of competitors is more difficult when doing business internationally; 4) language, culture and value systems differ among countries, and this can create barriers to communication and problems managing people; 5) gaining an understanding of regional organizations is difficult but is often required in doing business internationally; 6) dealing with two or more monetary systems can complicate international business operations; and 7) the availability, depth and reliability of economic and marketing information in different countries varies extensively, as do industrial structures, business practices and the number and nature of regional organizations.

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