Ch. 5 & 6 Test
A definition of an organization's fundamental purpose and its basic philosophy
Mission
Effectively merged Canada, the United States, and Mexico into one market of about 400 million consumers by eliminating most tariffs and trade restrictions on agricultural and manufactures products among the three countries
NAFTA
Plans that are intended to achieve operational goals
Operational Goals
A set of activities intended to achieve goals, whether for an entire organization, department, or individual
Plan
What name is given to the evaluation of the organization's internal strengths and weakness and the opportunities and threats associated with the business's external environment?
SWOT Analysis
Plans that are intended to achieve strategic goals
Strategic Plans
Plans that are designed to achieve tactical goals
Tactical Plans
Selling products for less than they are worth
Dumping
A business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment
Focus
What name is given to a form of licensing in which a company agrees to provide a name, logo, methods of operation, advertising, products, and other elements associated with the company business in return for a financial commitment and the agreement to conduct business in accordance with the company's standard of operations?
Franchising
What term describes the agreement between 10 Southeast Asian countries with the goal to promote economic growth and overall progress in the area via trade and security?
Association of Southeast Asian Nations
oversee the international monetary system and help ensure stable currencies and exchange rates throughout with world
Basic mission of IMF
the initial stage of the product life cycle when the product is introduced
Birth
A business ever strategy aimed at achieving the overall lowest cost structure in an industry
Cost leadership
A business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price
Differentiation
A global association of member countries that promotes free trade
WTO
Established and supported by the industrialized nations in 1946 to loan money to underdeveloped and developing countries
World Bank
Exporting that involves bartering products of other products instead of for currency
countertrade agreements
Market value of a nation's total output go goods
GDP
The final result that a firm wishes to achieve
Goal
the product life cycle stage characterized by dramatic increases in the product's market share
Growth
The physical facilities that support a country economic activities, such as railroads, highways, ports, airfields, utilities and power plants, etc.
Infrastructure
In SWOT analysis, an ability or attribute that a company possesses that may give it a distinctive competence is called...
a strength
The scope and resource deployment components of strategy for the enterprise as a whole
corporate strategy
The first step in strategic planning is..
determining the mission and strategic goals
MidAmerican Energy Holdings Company has doubled its wind energy capacity by installing windmills and high-tech batteries to make a "cleaner" utility company. In high-tech renewable energy, this company has a...
distinctive competence
The suspension of trade in a particular product by the government
embargo
Restrictions on the amount of a particular currency that may be bought or sold
exchange controls
The ratio at which one nation's currency can be exchanged for another nation's currency or gold is...
exchange rate
The sale of goods and services to foreign markets
exporting
A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business
global business (globalization)
You are an apple farmer and spokesperson for the American Apple Association. You are faced with severe dumping from apple growers in another country, where apples grow wild and the people pay to pick apples as a form of recreation. To counter this threat, you are lobbying to congress and the president to...
impose a protective import tariff
Because many countries do not permit foreigners to purchase and operate facilities in their countries, a company wishing to do business in such a country may share the business costs with the host country by forming a...
joint venture
Miller Beer allows Canadian firm to use its name, formula, and brands in return for a royalty. This is known as...
licensing
a formal written declaration of the organization's missions
mission statement
Short-term goals that are addressed to first-line managers and usually apply to specific work operations that lead to the production of goods or services
operational goals
Most people engaged in international trade underestimate the importance of...
social and cultural differences
A partnership formed to create competitive advantage on a worldwide basis
strategic alliance
Goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services
strategic goals
The intermediate goals of the firm, which are designed to stimulate actions necessary for achieving the strategic goals
tactical goals
Strategic planning differs from general planning in that is focuses on...
the external environment and long-term goals