Which of the Following Statements About Small-Scale Entry Is True

question 15

Multiple Choice

Which of the following statements about small-scale entry is true?

• A) The commitment associated with a small-scale entry makes it possible for the small-scale entrant to capture first-mover advantages.
• B) Small-scale entry is a way to gather information about a foreign market before deciding whether to enter on a significant scale.
• C) By giving a firm time to collect information, small-scale entry increases the risks associated with a subsequent large-scale entry.
• D) Small-scale entry limits a firm's ability to learn about a foreign market thereby also limiting the firm's exposure to that market.

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Definitions:

Segment Rationalization Test

A method of evaluating the viability and profitability of different market segments to determine where to focus marketing and product development efforts.

Relevance Test

An assessment to determine the applicability or importance of information, data, or research findings to a specific context or decision-making process.

SWOT Analysis

An assessment tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to a business or project.

Strategic Management

The ongoing planning, monitoring, analysis, and assessment of all that is necessary for an organization to meet its goals and objectives, focusing on long-term strategic direction.