Chapter 7 and 3

Define strategic plans.

Apply to the whole organization, establish the organizations overall goals, and seek to position the organization in terms of its environment.

Define long term plans.

Beyond three years.

What does WTO do

Global trade organization of 150 countries that helps businesses conduct trade without undesired side effects. Play an important role in monitoing and promoting glabal trade.

What are the four elements of MBO?

Goal specificity, participative decision making, and explicit time period, and performance feedback.

What are the two elements of planning?

Goals and plans.

What is one disadvantage to MBO?

It is not as effective in times of dynamic change.

What is an ethnocetric attitude and name an advantage and disadvantage to it.

It is the belief that the best work approaches and practies are those of the home country. Advantage: simple structure and tight control Disadvantage: more ineffective management, inflexible, social and political backlash

What are some considerations managers havev to make in the international market?/

Legal-political, economic (currancy, inflation, taxes, economic systems: market vs command), and cultural

What is MBO?

Management by Objection is an approach to setting goals in which specific performance goals are jointly determined by employees and their managers, progress toward accomplishing those goals is periodically reviewed, and rewards are allocated on the basis of this progress.

Name one problem to the traditional goal setting approach.

One problem is that if top managers define the organizations goals in broad terms - achieving "sufficient" profits - these ambiguous goals have to made more specific or they will get misinterpreted at different levels.

Define single use plans.

One time plan specifically designed to meet the needs of a unique situation.

Define standing plans.

Ongoing plans that provide guidance for activities performed repeatedly.

What are born globals?

Organizations the choose to go global from the start.

Define specific plans.

Plans that are clearly defines and leave no room for interpretation.

Define directional plans.

Plans that are flexible and that set out general guidelines.

Define short term plans.

Plans with the time frae of one year or less.

What kind of plan should be implemented in a dynamic environment?

Specific but flexible

What are SMART goals?

Specific, Measurable, Attainable, Relevent, and Time bound.

Define operational plans.

Specify the details of how the overall goals are to be achieved.

What are two types of plans you can develop?

Strategic vs. operational

What is the commitment concept?

The idea that plans should extend far enough to meet those commitments made today.

Who typically plans in a less traditional environment?

Typically planning involves more organizational members in the process.

What is the means-end chain?

When traditional goals are clearly defined, this is the means-end chain. This means that higher-level goals (or ends) are linked to lower-level goals, which serve as the means for their accomplishment.

What is a multinational corporation (MNC)?

a broad term that refers to any and all types of international companies that maintain operations in multipul countries.

What are three reasons to plan?

(1) planning reduces uncertainty by forcing managers to look ahead and plan for the future (2) reduces overlapping and wasteful activities (3) planning establishes the goals or standards that re used in controlling.

Name three trading alliances.

1. European Union (EU) 27 Europian countries 2. North American Free Trade Agreement (NAFTA) Canada, USA, and Mexico 3. Association of Southeast Asian Nations (ASEAN) 10 countries.

List some anti globalization views.

1. Forces western imperialism on the rest of the world 2. there are environmental, social, and economic costs 3. exploits workers 4. more beneficial to weathy countries

Name three types of MNCs.

1. Multidomestic corporation 2. global company 3. transnational or boarderless organization

Name three criticisms to planning?

1. Plans cannot be developed for a dynamic environment 2. formal plans cannot replace intuition, innovation, and creativity 3. just planning is not enough.

What are the 9 demensions of the GLOBE research of cultural demensions

1. assertivness 2. future orientation 3. gender differntiation 4. uncertianty avoidance 5. power distance 6. in group collectivism 7. performance orientation 8. humane orientation 9. individualism/collectivism

Name seven ways organizations can go global.

1. global sourcing (purchasing raw material abroad) 2. importing 3. exporting 4. licensing 5. franchising 6. strategic alliances (including joint ventures) 7. foreign subsidiaries (international headquarters or plants)

What is Hofstede's framework for assessing cultures?

1. individualism vs collectivism 2. power distance (extent a society accepts power in instituations. A high power distance means employees show a great deal of respect for those in authority and seldom challenge them) 3.Uncertainty avoidance (People with low uncertainty avoidance are tolerant of opinions different from their own) 4. achievement vs. nurturing (acheviment is more tangible values while nurturing is relationship based) 5. long term vs short term orientation (long term means important events happen in the future, short term is important events happen in the past and present).

List some pro globalization positions.

1. promotes economic prospirty 2. raises global environmental awarness 3. minimizes government intervention

What are the five steps in goal setting?

1. review the organizations mission 2. evaluate availible resources 3. determine the goals individually 4. write down the goals and communicate them 5. review results and whether goals are being met.

Name three contingency factors in planning.

1. the level in the organization (top managers usually make strategic plans and the first-level managers usually make operational plans) 2. environmental uncertainty (when uncertinty is high plans should be specific but flexible) 3. time frame (the commitment concept should be applied).

What is BRICS

A grouping acronym that refers to the countries of Brazil, Russia, India, China, and South Africa which are deemed to be at a similar stage of newly advanced economic developent.

What is parochialism?

A narrow view of the world; the inability to recognize the differences of other people.

What is a transnational or borderless organization?

A type of international company in which artifical geographical barriers are eliminated. This is an example of a geocentric attitude.

What is geocentric and what are advantages and disadvantages to it?

A world oriented view that focuses on using the best approaches and people from around the world. Advantages:

What is a comand economy?

An economic system in which resources are primarily owned and operated by the government

What is market econoy?

An economic system in which resources are primarily owner and controlled by the private sector

What is a global company?

An international company that centralizes management and other decisions in the home country. This is an exmaple of a ethnocentric attitude.

What is a multidomestic corporation?

An international company that ecentralizes management and other decisions to the local country. This is an example of polycentric attitude.

What are the three global attitudes?

Ethnocentric, polycentric, and geocentric.

What is polycentric attitude and what are advantages and disadvantages to it?

The view that the managers in the host country know the best work approaches and pratices for running their businesses. Advantages: entensive knowledge of foreign market and workplace, more support from host government, committed local managers. Disadvantages: suplication of work, reduced efficiency

What are the characteristics of well-designed goals?

They are SMART, written down, written in terms of outcomes rather than actions, challanging yet attainable, and well communicated.

What are the characteristics of strategic plans?

They are long term, directional and single use.

What are the characteristics of operational plans?

They are short term, specific, and standing.

What does trade agreements do?

They reduce trade barries such as tariffs, iport licensing requirements, fees, customer fees, alongside other things.

Who typically plans in a tranditional organization?

Top management and an formal planning department.

What are two approaches to establishing goals?

Traditional Goal Setting and Management by Objection (MBO)

What is traditional goal setting?

Traditional goal setting is an approach to setting goals in which goals are set at the top of the organization and then broken into subgoals for each organizational level.

What are the two forces that shape trade?

regional trading alliances and the world trade organization.