Bus 215: exam 2

Companies in the chemical industry are struggling to attract the most talented college graduates. One of the biggest challenges facing these companies is attracting new talent to organizations with an "old economy" image. A situational analysis would term this challenge a(n) _______ ________.

internal weakness

A _____ _____, also called a SWOT analysis for strengths, weaknesses, opportunities, and threats, is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment

situational analysis

What are the disadvantages of teams?

1) High employee turnover 2) social loafing 3) groupthink 4) minority domination

What are the three steps in the strategy-making process?

1) assess need for strategic change 2) conduct situational analysis 3) choose strategic alternatives

What are the four dimensions of organizational authority?

1) chain of command 2) line versus staff authority 3) delegation of authority 4) degree of centralization

What are the advantages of teams?

1) customer satisfaction 2) product and service quality 3) employee job satisfaction 4) multiple perspectives 5) more alternate solutions 6) commitment to decisions

What are the disadvantages of product departmentalization?

1) duplication of activities 2) difficult to coordinate across departments

What are the disadvantages of geographic departmentalization?

1) duplication of resources 2) difficult to coordinate across departments

What are the disadvantages of customer departmentalization?

1) duplication of resources 2) difficult to coordinate across departments 3) efforts to please customers may hurt the company

What are the advantages of matrix departmentalization?

1) efficiently manage large, complex tasks 2) pool of available resources

What are the advantages of customer departmentalization?

1) focus on customer needs 2) products and services tailored to customer needs

What are 4 ways to promote team cohesiveness?

1) make sure all team members are present at team meetings 2) create additional opportunities for teammates to work together 3) engage in non work activities as a team 4) make employees feel that they are part of a special organization

What are the advantages to product departmentalization?

1) managers specialize, but have broader experiences 2) easier to assess work-unit performance 3) decision-making is faster

What does growth strategy focus on to increase?

1) profits 2) revenues 3) market share 4) number of places in which company can do business

What are the five types of nontariff barriers?

1) quota 2) voluntary export restraints 3) government import standard 4) subsidies 5) customs classifications

What are disadvantages of matrix departmentalization?

1) requires high levels of coordination 2) conflict between bosses 3) requires high levels of management skills

What are the advantages of geographic advantages?

1) responsive to the demands of different market areas 2) unique resources located close to the customer

What are three methods of compensating employees for team participation and accomplishments?

1) skill-based pay 2) gainsharing 3) nonfinancial rewards

What are the four different categories of BCG matrix?

1) stars 2) question marks 3) cash cows 4) dogs

What are the three patterns of innovation streams?

1) technology discontinuity 2) discontinuous change 3) dominant design

What are the four conditions needed to achieve a sustainable competitive advantage

1) valuable resources 2) rare resources 3) non- substitutable resources 4) imperfectly imitable resources

For most teams the right size is somewhere between ___ to ___ members

6,9

What dimension of authority is the vertical line of authority that clarifies who reports to whom throughout the organization? A. Chain of command B. Line versus staff authority C. Delegation of authority D. Degree of centralization

A. Chain of command

What type of adaptive strategy aimed at defending strategic positions by seeking moderate, steady growth and by offering a limited range of high-quality products and services to a well defined set of customers? A. Defenders B. Prospectors C. Analyzers D. Reactors

A. Defenders

What is the most common departmentalizations? A. Functional B. Product C. Customer D. Geographic E. Matrix

A. Functional

Starbucks is expanding its global operations into South America in spite of the real probability of civil wars and terrorist activities in many of the continents nations. As Starbucks expands into South America, it must deal with ______ A. Political uncertainty B. Economic uncertainty C. Infrastructure regulation D. Nationalistic equity E. Strategy risk

A. Political uncertainty

What BCG matrix category is a company with a large share of fast growing market? A. Star B. Question mark C. Cash cow D. Dog

A. Star

NTL is the largest cable company in the United Kingdom. The company has recently declared bankruptcy and needs to engage in restructuring in order to give it more flexibility and allow it to raise capital. Since it has identified the need for strategic change, what would be the organization's next step in the strategy-making process? A. conducting a situation analysis B. finding the optimal strategic solution C. conducting focus groups D. assessing the need for strategic change

A. conducting a situation analysis

When the Home Depot opened stores in Canada, it ran a series of ads featuring an animated hammer that was busily reducing prices to show that the U.S.-based home improvement store had the lowest prices. According to Michael Porter, which of the following positioning strategies did Home Depot adopt to deal with existing Canadian stores that sold similar products? A. cost leadership B. diversification C. repositioning D. focus

A. cost leadership

In a situational analysis, a strategic group is a group of _____ that top managers choose for evaluating, and benchmarking their company's strategic threats and opportunities. A. other firms within an industry B. consulting firms that use the Delphi technique C. non-industry specific companies D. expert managers

A. other firms within an industry

Russia imposed limits on how much poultry, beef, and pork could be imported into the nation from European Union (EU) in retaliation to limits the EU placed on how much grain Russia could export. What type of nontariff barrier did Russia use to control the amount of poultry, beef, and pork it imported from the EU? A. quotas B. subsidies C. boycotts D. duties

A. quotas

Right to give commands, take action, and make decisions to achieve organizational objectives

Authority

______ are both examples of cooperative contracts A. Licensing and joint ventures B. Franchising and licensing C. Direct investment and indirect investment D. Direct exporting and indirect exporting

B. Franchising and licensing

Which of the following is not a disadvantage of functional departmentalization? A. May lead to slower decision making B. Increase cost through reduced duplication C. Produces managers with narrow experiences D. Cross-department coordination is difficult

B. Increase cost through reduced duplication * functional departmentalization decreases cost so is considered an advantage

People who live on the island of Malta are described as happy-go-lucky people who are comfortable with an unstructured life and deal well with sudden changes. In terms of Hofstede's cultural differences, the people of Malta have a ____ A. Cultural based on equity B. Low degree of uncertainty avoidance C. Masculine culture D. High degree of uncertainty avoidance E. Feminine culture

B. Low degree of uncertainty avoidance

Nestlé is a company based in Switzerland with manufacturing plants in Columbia, Australia, Canada, Egypt, Kenya, and more than 90 other nations. Nestlé is an example of ______ A. Multidimensional global company B. Multinational corporation C. Ethnocentric organization D. Acculturated corporation E. Macro-marketer

B. Multinational corporation

The Japanese government has proclaimed that its snow is different from that found in any other regions of the world as a result, all snow skis marketed in Japan must be manufactured in Japan. This is an example of a(n) ______ A. Tariff B. Nontariff barrier C. Import boycott D. Industry subsidy E. Industry nationalization

B. Nontariff barrier

A group of workers in a medical examiners office decide that they would not wear jeans to work because it is unprofessional. This informal agreement was made even though the office did not have a dress code. The workers created a(n) _____ A. Heuristic B. Norm C. Behavioral policy D. Code of ethics E. Operational guide

B. Norm

What type of adaptive strategy seeks fast-growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market? A. Defenders B. Prospectors C. Analyzers D. Reactors

B. Prospectors

_____ occurs when workers withhold their efforts and fail to perform their share of work A. Self limiting behavior B. Social loafing C. De-forming D. Stonewalling E. Mental atrophy

B. Social loafing

Which of the following strategies focuses on improving the way in which the company sells the same products or services to the same customers? A. Growth strategy B. Stability strategy C. Retrenchment strategy D. Grand strategy

B. Stability strategy

Teams are required when _______ A. Tasks are simple B. Tasks require multiple perspectives C. Synergy will complicate the problem solution process D. Company has limited resources E. All of the above

B. Tasks required multiple perspectives

Which of the following statements about mechanistic organizations is true? A. Mechanistic organizations rely on decentralized authority B. Mechanistic organizations work best in stable, unchanging business environments. C. Mechanistic organizations have broadly defined jobs. D. None of these statements about mechanistic organizations is true.

B. mechanistic organizations work best in stable, unchanging business environments

Deutsche Bank is the largest bank in the world. Would this give it a sustainable competitive advantage? A. yes, because it would make its operations synergistic B. no, because size is not a criteria for sustainable competitive advantage C. no, because large institutions make more effective use of resources D. yes, because size is directly and positively related to efficiency

B. no, because size is not a criteria for sustainable competitive advantage

Hallmark has four departments. These departments are (1) Flowers and Gifts, (2) Cards and E-cards, (3) Hallmark Collectibles, and (4) Photo Albums and Scrapbooks. Hallmark uses ____ departmentalization. A. matrix B. product C. customer D. geographic E. functional

B. product

A sustainable competitive advantage exists for an organization when other companies have tried unsuccessfully to duplicate the advantage and _____. A. those companies have been prohibited from duplicating the advantage by federal law B. those companies have, for the moment, stopped trying to duplicate the advantage C. the organization operates in the international marketplace D. the organization has a follower strategic stance

B. those companies have, for the moment, stopped trying to duplicate the advantage

A portfolio strategy that categorizes a corporation's businesses by growth rate and relative market share and helps managers decide how to invest corporate funds

BCG matrix

[T:F] line authority is the right to command immediate subordinates in the chain of command. Staff authority is the right to advise but not command others

Both statements true

Ability to make changes without first getting approval from managers or other parts of an organization

Bureaucratic immunity

What type of adaptive strategy seeks to minimize risk and maximize profits by following or imitating the proven successes of prospectors? A. Defenders B. Prospectors C. Analyzers D. Reactors

C. Analyzers

What BCG matrix category is a company with a large share of slow- growing market? A. Star B. Question mark C. Cash cow D. Dog

C. Cash cow

E-lab has project teams perform field research for its clients. These project teams are composed of students of theology actors,musicians, and traditional marketing experts and statisticians. Each member of the group is trained to conduct observational research, interview clients, and understanding the marketing impact of what they learn. E-lab uses ____ to make its project teams more efficient A. Synergistic goals B. Stretch goals C. Cross training D. Vestibule training

C. Cross training

Green giant learned that it could not use the Jolly Green Giant character in parts of Asia where a hat worn by a man signifies that he has an unfaithful wife. This is an example of _____ that influenced global marketing A. Geocentric attitude B. Control strategy C. Cultural difference D. Avoidance strategy

C. Cultural difference

What type of departmentalization organizes work and workers into separate units responsible for particular kinds of customers? A. Functional B. Product C. Customer D. Geographic E. Matrix

C. Customer

The acronym for GATT stands for the ______ A. Global agreement on temporal trade B. Governing agreement trade and transactions C. General agreement on tariffs and trade D. Government aid of trade and transactions E. Global arrangement of trade and taxes

C. General agreement on tariffs and trade

Robert Mondavi Wineries entered into agreement with Baron Philppe de Rothschild, owner of Boreaux's First Growth chateau, to produce a top quality wine in California. The two companies working together to create a new product is an example _____ A. Exporting B. Licensing C. Joint venture D. Cooperative contract E. Wholly-owned subsidiary

C. Joint venture

Which of the following strategies focuses on turning around very poor company performance by shrinking the size or scope of the business? A. Growth strategy B. Stability strategy C. Retrenchment strategy D. Grand strategy

C. Retrenchment strategy

The USDOT has created a national team of tunnel experts to develop a road tunnel engineering principles and maintenance practices in the US through the use of telecommunications and information technology. This group will compromise a(n) ___ A. Self directed team B. Normative team C. Virtual team D. Multifunctional team E. Ad hoc team

C. Virtual team

An organization is experiencing ____ when it is reluctant to change strategies or competitive practices that have been successful in the past. A. strategic dissonance B. competitive inertia C. strategic inertia D. competitive dissonance E. sustained competitive disarray

C. competitive inertia

Large accounting agencies typically have separate departments that deal with households, businesses, and governments. To better serve the needs of their clients, many of these accounting agencies use ____ departmentalization. A. matrix B. product C. customer D. geographic E. functional

C. customer

When making travel plans, many tourists have selected Thomas Cook, a British tour operation, because they perceive that no other tour company can duplicate the customer service and satisfaction that Thomas Cook has provided over its years of operation. Thomas Cook has apparently created a sustainable competitive advantage by using ____ resources. A. synergistic B. valuable C. tangible D. nonsubstitutable E. rare

D. nonsubstitutable

The assignment of direct authority and responsibility to a subordinate to complete tasks for which a manager is normally responsible

Delegation of authority

Method of subdividing work and workers into separate organizational units that take responsibility for completing particular tasks

Departmentalization

Providing a product or service that is sufficiently different from competitors offerings that customers are willing to pay a premium price for it

Differentiation

A method of investment in which a company builds a new business or buys an existing business in a foreign country

Direct foreign investment

Phase of technology cycle characterized by technological substitution and design competition

Discontinuous change

New technological design or process that becomes the accepted market standard

Dominant design

Which of the following is a reason teamwork can be more satisfying than traditional work? A. Allows teams to receive propriety business information that is only available to managers B. Provides team members with unique work opportunities C. Gives workers a chance to improve their skills D. Gives workers unique leadership responsibilities E. All of the above

E. All of above

Which of the following factors should be considered when choosing an office/manufacturing location in the Brazilian market for a US company that operates cinemas and wants to open a chain of movie theaters in Brazil A. Workforce quality B. The strategy of the movie theatre chain C. Tariff and nontariff barriers D. Exchange rates E. All of the above

E. All of the above

What method of departmentalization is a hybrid organizational structure in which two or more forms of departmentalization are used together? A. Functional B. Product C. Customer D. Geographic E. Matrix

E. Matrix

The two general kinds of trade barriers are _____ A. Government important standards and industry import standards B. Qualitative and quantitative barriers C. Voluntary and involuntary barriers D. Nationalistic and geocentric barriers E. Tariff barriers and nontariff barriers

E. Tariff and nontariff barriers

Which of the following countries has the largest direct foreign investment in the United States? A. Netherlands B. Germany C. Japan D. Canada E. United Kingdom

E. United Kingdom

The General Agreement on Tariffs and Trade (GATT) ____. A. decreases both tariffs and nontariff barriers B. puts stricter limits on government subsidies C. eliminates tariffs in ten specific industries D. protects intellectual property, such as trademarks, patents, and copyrights E. all of the above

E. all of the above

Permanently passing decision-making authority and responsibility from managers to workers by giving them the information and resources they need to make good decisions

Empowering workers

____ occurs when a company sells domestically produced products to customers in foreign countries

Exporting

[T:F] Eileen Fischer would best be described as a mechanistic organization.

False: Eileen Fischer would best be characterized as an organic organization. This environment works best in dynamic, changing business environments.

[T:F] decentralization is the location of a significant amount of authority in the upper levels of the organization

False: lower levels

[T:F] mechanistic organizations work best in a dynamic environment

False: the work best in a stable environment and organic organizations work best in a dynamic environment

Using cost leadership or differentiation to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment

Focus strategy

______ departmentalization Organizes work and workers into separate units responsible for particular business functions or areas of expertise

Functional

The buying and selling of goods and services by people from different countries

Global business

Broad strategic plans used to help an organization achieve is strategic goals

Grand strategies

Patterns of innovation over time that can create sustainable competitive advantage

Innovation streams

An approach to job redesign that seeks to formulate jobs in ways that motivate workers and lead to positive work outcomes

Job characteristics model (JCM)

Number, kind, and variety of tasks that individual workers perform in doing their jobs

Job design

Job composed of a small part of a larger task or process

Job specialization

Specialized jobs and responsibilities, precisely defined, unchanging roles, and a rigid chain of command based on centralized authority and vertical communication

Mechanistic organization

An organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants

Modular organization

A corporation that owns businesses in two or more countries

Multinational corporation

Nontax methods of increasing the cost of reducing the volume of imported goods

Nontariff barriers

Broadly defined jobs and responsibility, loosely defined, frequently changing roles, and decentralized authority and horizontal communication based on task knowledge

Organic organizations

The successful implementation of creative ideas in organizations

Organizational innovation

Organizes work and workers into separate units responsible for producing particular products or services.

Product departmentalization

A team created to complete specific, one-time projects or tasks within a limited of time

Project team

______ The fundamental rethinking and radical redesign of business processes

Reengineering

What does SWOT stand for?

S= strengths W= weaknesses O= opportunities T= threats

Question mark is a company with a ____ share of ____-growing market

Small, fast

Dog is a company with a ____ share of ___-growing market

Small, slow

Solving problems by consistently applying the same rules, procedures, and processes

Standardization

Ability to change organizational structures, policies, and practices in order to meet stretch goals

Structural accommodations

A competitive advantage that other companies have tried unsuccessfully to duplicate

Sustainable competitive advantage

A direct tax on imported goods

Tariff

A cycle that begins with the birth of a new technology and ends when that technology ends when technology reaches its limits and is replaced by a newer, substantially better technology

Technology cycle

Scientific advance creates a significant breakthrough

Technology discontinuity

Government-imposed regulations that increase the cost and restrict the number of imported goods

Trade barriers

An organization that is part of a network in which many companies share skills, costs,capabilities, markets, and customers to collectively solve customer problems or provide specific products or services

Virtual organization

A team composed of dispersed coworkers who use telecommunication and information technologies to accomplish an organizational task

Virtual team

As a class project, Senora is working with other classmates to create a company that would market NASCAR memorabilia. Senora's teacher has instructed her to use the traditional approach to create the organization's structure. What should Senora do? A. create an organizational structure with vertical and horizontal configurations B. use an organizational process to create a matrix design C. create a virtual organization D. use the organizational structure to control creativity E. create a matrix structure that will adhere to the unity of command principle

A. create an organizational structure with vertical and horizontal configurations

Which of the following statements about functional departmentalization is true? A. Functional departmentalization allows work to be done by highly qualified specialists. B. Functional departmentalization increases costs by reducing duplication. C. Functional departmentalization complicates communication and coordination for departmental managers. D. Functional departmentalization requires the same kinds of functional departments in any company. E. Functional departmentalization is also called free-form specialization.

A. functional departmentalization allows work to be done by highly qualified specialists

As a consequence of the Industrial Revolution and its emphasis on specialization, institutions providing higher education developed strict departments that contained specialized functions. This organizational structure was perceived as a way to enhance the accumulation and dissemination of knowledge. Institutions providing higher education have traditionally used ____. A. reengineering B. functionalization C. departmentalization D. functional empowerment E. job dissemination

C. departmentalization

Cost leadership, differentiation, and focus are the three types of ____ strategies discussed in the text. A. grand B. niche C. positioning D. restructuring E. portfolio

C. positioning

The extent to which team members are attracted to a team and motivated to remain in it

Cohesiveness

Providing greater value for customers than competitiors can

Competitive advantage

Producing a product or service of acceptable quality at consistently lower production costs than competitors can, so that the firm can offer the product or service at the lowest price in the industry

Cost leadership

Team composed of employees from different functional areas of the organization

Cross-functional team

Training team members to do all or most of the jobs performed by the other team members

Cross-training

What dimension of authority is the location of most authority at the upper levels of the organization? A. Chain of command B. Line versus staff authority C. Delegation of authority D. centralization of authority

D. Centralization of authority

Which of the following is not an advantage of functional departmentalization? A. Work is done by highly skilled professionals B. Lowers cost through reduced duplication C. Communication and coordination problems are lessened D. Cross-department coordination is easy

D. Cross-department coordination is easy * cross-department coordination is difficult so it's a disadvantage to functional departmentalization

What type of departmentalization organizes work and workers into separate units responsible for doing business in particular geographical areas? A. Functional B. Product C. Customer D. Geographic E. Matrix

D. Geographic

The ______ is a regional trade agreement that liberalizes trade between countries more than any other agreement A. Maastricht treaty of Europe B. Association of south east nations C. Asia-pacific economic cooperation agreement D. North America free trade agreement

D. North America free trade agreement

What type of adaptive strategy doesn't follow a consistent adaptive strategy but instead react to changes in the external environment after they occur? A. Defenders B. Prospectors C. Analyzers D. Reactors

D. Reactors

______ are the assests, capabilites, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem. A. grand strategies B. distinctive competencies C. competitive advantage D. resources E. strategic stances

D. Resources

____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries A. Quotas B. Voluntary export restraints C. Cooperative contracts D. Subsidies E. Tariffs

D. Subsidies

Ford motor company owns and operates a1.9 billion manufacturing plant in Brazil. What method for organizing for global business has ford used in this example? A. Joint venture B. Strategic alliance C. Cooperative contract D. Wholly owned affiliate E. Strategic franchise

D. Wholly owned affiliate

There are numerous competitive brands of cosmetics, perfumes, hair-care, and skin-care products on the market. One such brand is Aveda. To differentiate its products from other similar brands, Aveda focuses on educating its customers on general skin and haircare. Its salespeople are trained to answer questions and help customers find solutions. Aveda has used customer education and extensive employee training to _______. A. create synergy through relationship marketing B. make efficient use of imitative resources C. eliminate the need for nonsubstitutable resources D. create a competitive advantage

D. create a competitive advantage

Fran Wilson Creative Cosmetics is a medium-sized U.S. company that sells 1.5 million tubes of its lipstick annually in Japan. It has no physical presence within the country beyond the fact its products are sold there. Fran Wilson Creative Cosmetics uses ____ to reach the Japanese market. A. franchising B. direct investment C. licensing D. exporting

D. exporting

An organization is experiencing _______ ____when it is reluctant to change strategies or competitive practices that have been successful in the past.

competitive inertia