chapter 3

Itochu Corp., headquartered in Japan, sells machinery, textiles, metals and minerals, and chemicals. The company generally sells the same products in pretty much the same ways in the various countries in which it does business. As a result, the company is likely to adopt a You Answered

global strategy and a global product structure

An "expatriate" or "expat" is someone who

is on a work assignment in another country

If your company, Philadelphia Imports (PI), wants to do business with Japan Exports (JE), which is in a "high context culture," you should probably

work to develop good relations with people at JE, perhaps spending time sharing meals and getting to know one another.

When things go right, your boss seems to take credit for it. But when things go wrong, it's always someone else's fault. Your boss is exhibiting

a self-serving bias

Janice interviews Cleo for an accounting job, but decides not to hire him. She tells her partner: "Cleo clearly has a good GPA and everything, but he's too friendly and outgoing. I think we want someone for this job who is more introverted. Outgoing people aren't very good at paying attention to details or persisting to make sure the work is done thoroughly." Janice is showing signs of

an implicit person theory.

Managers of American companies

are not permitted to bribe officials in other countries

The process of deciding what caused an observed behavior is known as

attribution

Someone who is "ethnocentric"

believes that his or her own culture is better than other cultures.

When we observe strangers, we often make attributions based on how they behave compared to how other people behave. In other words, we make attributions about strangers based largely on information about

"consensus"

Which of the following best fits the definition of a multinational corporation?

A consulting firm that has offices in 8 different countries

The Gap Inc owns Gap clothing stores, but other stores as well: Old Navy, Banana Republic, Intermix, and Athleta. The above chart shows their basic structure (from a few years ago). [If you're unable to see the chart, it shows the heads of the various brands (Old Navy, Gap, Banana Republic, etc.) reporting directing to the company CEO]. This organization structure represents a

Global product structure

Mondelēz International sells foods and beverages. A spinoff from Kraft Foods, its dozens of products include Oreos, Toblerone, Dentyne, and Tang. The individuals reporting to the CEO include: Executive Vice President and President, Asia, Middle East & Africa - Maurizio Brusadelli. Executive Vice President & President Mondelēz Europe - Vince Gruber Executive Vice President and President, Latin America - Alejandro Lorenzo Executive Vice President and President, North America - Glen Walter Executive Vice President and Chief Human Resources Officer - Paulette Alviti Executive Vice President, Global Chief Marketing Officer - Martin Renaud Executive Vice President, Chief Financial Officer - Luca Zaramella Based on the job titles of the executives, which of the following statements is more likely to be true?

Mondelēz wants to make and sell its product lines in different ways in different countries.

Some cultures are very accepting of hierarchical social structures—in other words, it "feels right" in that culture for "superiors" such as parents, bosses, teachers, government officials, and ministers to give direction, make decisions, and be respected and obeyed. These cultures tend to have tall hierarchies in their organizations—i.e., they have lots of layers of people in charge. This type of culture is best characterized as high in

Power distance

A culture that values the enjoyment of life, family and friends; cares for the environment and for people in need; and values teamwork, cooperation, discussion and compromise is likely to be

a feminine culture.

Just as Fred is getting ready to leave for class, his mother learns about an emergency at work. She says, "Fred, I know it'll make you late for class, but I really need you to drop your brother off at high school on your way. I have to deal with this emergency and can't take him myself." Prof. Smith is irritated when Fred comes to class late. He hassles Fred afterward saying "you're really disrespectful and need to take your schoolwork more seriously." The professor is showing signs of

a fundamental attribution error

These two paragraphs are from a press release for Eaton Corporation, a large, global technology manufacturer: Diversified industrial manufacturer Eaton Corporation announced January 28 that Eaton's businesses are being reorganized into two sectors - Electrical and Industrial - with a vice chairman and chief operating officer for each sector. The changes are effective February 1. Eaton chairman and chief executive officer Alexander M. Cutler said that Thomas S. Gross, 54, has been named vice chairman and chief operating officer - Electrical Sector.... Craig Arnold, 48, has been named vice chairman and chief operating officer - Industrial Sector, which is being formed by combining Eaton's Aerospace, Automotive, Hydraulics and Truck businesses. This press release suggests that Eaton Corporation

has a global product structure.

Bruno runs a bakery in which he hires former prisoners. He knows that people sometimes make mistakes that they come to regret, and that they deserve to be given a second chance. We can say that Bruno is an

incremental theorist

The above organization chart is for Gap, Inc., which owns Gap clothing stores, but other stores as well: Old Navy, Banana Republic, Intermix and Athleta. [If you're unable to see the chart, it shows the heads of the various brands (Old Navy, Gap, Banana Republic, etc.) reporting directing to the company CEO. ] The chart suggests that the firm wants to make sure that

it has strong brand "identities," such that Old Navy, Athleta, Banana Republic, etc., are recognized as pretty consistent brands all around the world

Kellogg Company produces a wide array of snack and breakfast foods, including some you probably haven't heard of (e.g., Zucaritas, Croco Copters, and Rice Bubbles). The people reporting to the Chief Executive Officer (CEO) include the heads of Kellogg Europe, Kellogg Latin America, and Kellogg North America. Kellogg probably has a

multidomestic strategy

Lucas is a salesperson at a bicycle shop. He gives great service to the young men who come into the store, figuring they're serious about their equipment. He spends a lot of time explaining bike features to them and makes good sales. He gives lousy service to women and older customers in general, figuring they're not interested in expensive bikes, and they often leave without buying anything. He brags to his friends: "I can tell who's going to spend money and who isn't from a mile away." Little does he know that the customers he barely paid attention to are spending serious money--but at the other bike shop in town! Lucas' bias can best be described as a

self-fulfilling prophecy (Pygmalion effect).

People often jump to conclusions about people who have tattoos, who are accountants, who major in religion, who are Italian-American, and so forth. The biased perception someone has based simply on a group that the other person belongs to is called

stereotyping

Your textbook cites an expert who says that if an employee is going to work overseas on a job assignment, it would especially help

to provide his or her whole family with training, so the spouse and children can adjust well.