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Question 1

Alexander, Quinn, and Cairns (2005: 8) define international retail divestment as:

a) company actions resulting in a reduced presence in a foreign market. This may take the form of closure of stores, sale of store chain, termination of a business contract/agreement (joint venture/franchising and so on) or organisational restructuring in the form of changing from corporate ownership to a franchising or licensing or distribution agreement. Divestment may or may not involve market exit.

b) company actions resulting in a reduced presence in a foreign market. This always takes the form of closure of stores, sale of store chain, termination of a business contract/agreement (joint venture/franchising and so on) or organisational restructuring in the form of changing from corporate ownership to a franchising or licensing or distribution agreement. Divestment always involves market exit.

c) company actions resulting in an increased presence in a foreign market. This may take the form of opening of stores, sale of store chain, termination of a business contract/agreement (joint venture/franchising and so on) or organisational restructuring in the form of changing from corporate ownership to a franchising or licensing or distribution agreement. Divestment never involves market exit.

d) Competitors' actions that bring about a reduced presence in a foreign market. This may take the form of closure of stores, sale of store chain, termination of a business contract/agreement (joint venture/franchising and so on) or organisational restructuring in the form of changing from corporate ownership to a franchising or licensing or distribution agreement. Divestment may or may not involve market exit.

Question 2

Chow and Hamilton (1993) originally classified the growing literature on domestic divestment into three strands based on the domain from which the work was emanating:

a) industrial organization, finance, and corporate strategy.

b) industrial organization, market exit and corporate strategy.

c) industrial organisation, finance and international marketing strategy.

d) industrialization, finance, and corporate strategy.

Question 3

Much international divestment research claims that:

a) franchises are more likely to be divested than other modes of entry.

b) acquisitions are more likely to be divested than other modes of entry.

c) concessions are more likely to be divested than other modes of entry.

d) Organically grown chains are more likely to be divested than other modes of entry.

Question 4

Antecedents to divestment are concerned with:

a) The process of divestment

b) The reasons for divestment

c) The barriers to divestment

d) What happens after divestment occurs

Question 5

The concept of escalating commitment, whereby a firm continues with a course of action that is not producing results (Matthyssens and Pauwels, 2000) is:

a) not at all evident in the examples of international divestment by Marks & Spencer, Boots, Tesco, and Ahold.

b) evident in the examples of international divestment by Marks & Spencer, Boots, Tesco, and Ahold

c) evident in the examples of international divestment by Marks & Spencer and Boots, but not Tesco and Ahold

d) Not evident among retail operations.

Oxford University Press, Online Resource Centre, Chapter 14.

Chapter 14

Instructions

Question 1

Question 2

Question 3

Question 4

Question 5