MAN4720 Final Review Vocab Prep

21st century managing challenges

1. Deciding whether the process should be more an art or a science 2. Deciding whether strategies should be visible or hidden from stakeholders 3. Deciding whether the process should be more top-down or bottom-up in their firm

true

According to Alvin Toffler, future shock occurs when the nature, type, and speed of changes overpower an individual's or organization's ability and capacity to adapt.

foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets

All of the following are potential disadvantages to initiating, continuing, or expanding business across national borders EXCEPT

adopted or soon plan to use

Already the European Union and 113 nations including Australia, Mexico, and Canada have ________ IFRS rules.

global challenge

America's economy is becoming much less American. A world economy and monetary system are emerging. Markets are shifting rapidly and in many cases converging in tastes, trends, and prices. This is the

time

Americans place an exceptionally high priority on _____, viewing it as an asset. Many foreigners place more worth on relationships.

Israel and Japan

As of 2012 which of the following countries had a top corporate tax rate below 30 percent?

true

Before entering international markets, firms should do research to try and diminish the risk of doing business in new markets.

true

Business ethics can be defined as principles of conduct within organizations that guide decision making and behavior.

position

Competitive advantage normally is the result of superiority in resources, skills, or

true

Each year, Fortune publishes strategy-evaluation research on both the United States and other countries.

Mexico

Employers in _____ seek workers who are agreeable, respectful, and obedient, rather than innovative, creative, and independent.

over 20 million

Environmental advocacy groups now have ________ Americans as members.

13.5

Exports of goods and services from the United States account for only ___ percent of U.S. gross domestic product

increase investor scrutiny of the firm

If a firm has a bad sustainability record this will

true

In China, business relations revolve around guanxi, or personal relations.

true

In China, one should eat heartily to demonstrate enjoyment of the food.

moving environmental affairs from the staff side of the organization to the line side

In an effort to manage ecological challenges, many companies are

middle-level and lower-level managers, and even non-managers, should be involved in the strategic planning process

Increased education and diversity of the workforce at all levels are reasons why

false

It is possible to obtain insurance from the U.S. Government's OPIC to eliminate all risks associated with doing business internationally.

false

Joint ventures and partnerships between domestic and foreign firms are becoming the exception rather than the rule.

all of these

Managers and employees today must be careful not to ignore, conceal, or disregard a pollution problem or they could

5

Many African and non-African companies are launching operations in Africa due to the rapidly growing middle class and an average GDP growth of ___ percent for the continent through 2017

India

People in _____ do not like to say "no," verbally or nonverbally. Rather than disappoint you, they often will say something is not available, or will offer you the response that they think you want to hear, or will be vague with you

3, 1

Personal touching and distance norms differ around the world. Americans generally stand about ___ feet from each other when carrying on business conversations, but Arabs and Africans stand about ___ foot apart.

true

Protectionism refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people.

Chinese

The _____ rarely do business with companies or people they do not know

true

The accounting switch from GAAP to IFRS in the United States is going to result in substantial costs to businesses for fees, upgraded software systems, and training.

true

The availability, depth, and reliability of economic and marketing information in different countries vary extensively.

Mexico

The country of_____ is now (2015) the fourth largest auto exporter in the world, behind Japan, Germany, and South Korea.

germany

The percentage of persons age 65 or older exceeds 20 percent in Japan, Italy, and

foster mutual understanding and trust

The strategy-evaluation process should

mutual understanding

The strategy-evaluation process should foster

true

The underpinnings of strategic management hinge on managers gaining an understanding of competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders, and customers worldwide

false

There are no countries that favor or engage in commercial whaling today.

Vietnam

Unlike another communist country, North Korea, _____ is booming for business

IKEA

What firm was mentioned in the text book as having recently opened 25 new stores in India?

Japanese

When confronted with disturbing questions or opinions, _____ managers tend to remain silent.

furniture manufacturing

Which of the following U.S. industries is NOT yet greatly challenged by foreign competitors?

product life cycles

Which of the following is NOT a reason for the increasing difficulty of evaluating strategies?

impulsive

Which of the following is NOT a typical characteristic of most Japanese managers?

Italy

Which of the following is a European country in which union membership is growing?

Milton Friedman

_____ _____ asserts that organizations have no obligation to do any more for society than is legally required.

Ralph Nader

_____ _____ proclaims that organizations have tremendous social obligations.

social policy

concerns what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups

auditing

defined by the American Accounting Association (AAA) as "a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between these assertions and established criteria, and communicating the results to interested users"

ISO 14000

family of standards concerns the extent to which a firm minimizes harmful effects on the environment caused by its activities and continually monitors and improves its own environmental performance

inhwa

harmony based on respect of hierarchical relationships including obedience to authority

measuring organizational performance

includes comparing expected results to actual results, investigating deviations from plans, evaluating individual performance, and examining progress being made toward meeting stated objectives

global strategy

includes designing, producing, and marketing products with global needs in mind, instead of considering individual countries alone

strategy evaluation

initiates managerial questioning of expectations and assumptions, should trigger a review of objectives and values, and should stimulate creativity in generating alternatives and formulating criteria of evaluation

bribe

is a gift bestowed to influence a recipient's conduct

ISO 14000

refers to a series of voluntary standards in the environmental field

social responsibility

refers to actions an organization takes beyond what is legally required to protect or enhance the well-being of living things

protectionism

refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people

sustainability

refers to the extent that an organization's operations and actions protect, mend, and preserve rather than harm or destroy the natural environment

true

"Welcome bad news" is one of six guidelines for effective strategic management offered by R. T. Lenz.

double

The World Bank says food demand across Africa will _____ between 2012 and 2020

Africa

Currencies in _____ are stabilizing and many countries are fund-raising to build modern highways, ports, and power grids

true

A rising tide of consciousness about the importance of business ethics is sweeping the United States and the rest of the world.

false

Bad ethics can derail all but the best strategic plans.

organic

Consumers are flocking to _____ products

true

Consumers expect humane treatment of animals

on a continuous basis

Strategy-evaluation activities should ideally be performed

punctuality

_____ is a valued personal trait when conducting business in the United States, but it is not revered in many of the world's societies.

the balanced scorecard approach to strategy evaluation

aims to balance longterm with short-term concerns, to balance financial with nonfinancial concerns, and to balance internal with external concerns

workplace romance

is an intimate relationship between two consenting employees

bribery

is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in discharge of a public or legal duty

guanxi

personal relations

revised IFE matrix

should focus on changes in the organization's management, marketing, finance and accounting, production and operations, research and development (R&D), and management information systems (MIS) strengths and weaknesses; should indicate how effective a firm's strategies have been in response to key opportunities and threats

consonance, consistency, advantage and feasability

strategy evaluation criteria

false

Measuring organizational performance requires making changes to reposition a firm competitively for the future.

all of these

Modern organizational realities demand that employees demonstrate greater

future shock

occurs when the nature, types, and speed of changes overpower an individual's or organization's ability and capacity to adapt

international firms or multinational corporations

organizations that conduct business operations across national borders

taking corrective actions

requires making changes to competitively reposition a firm for the future

feng shui

the practice of harnessing natural forces

7 principles of admirable business ethics

1. Be trustworthy 2. Be open-minded 3. Honor commitments and obligations 4. Do not misrepresent, exaggerate, or mislead 5. Be a visibly responsible community citizen 6. Utilize your accounting practice to eliminate questionable activities 7. Do unto others as you would have them do unto you

3 critical comparisons

1. Firm's performance over different time periods 2. Comparing the firm's performance to competitors' 3. Comparing the firm's performance to industry averages

Indonesia

A Pacific archipelago comprised of thousands of islands, _____'s stock market was the top performer in 2014 among all Asian countries, and was also the top performer in five out of the last seven years in Asia.

which can translate into improved negotiating power among important groups

A firm's power and prestige in domestic markets may be significantly enhanced if it competes globally

conservation of energy

A proactive environmental policy is likely to lead to

action-oriented; information-oriented

Controls need to be ________ rather than ________.

remain a domestic competitor

In an industry that is, or is rapidly becoming global, the riskiest possible posture is to

false

In order to be considered bribery, the gift offered must be either money or a physical item.

true

Many African and non-African companies are launching operations in Africa due to the rapidly growing middle class and an average GDP growth of 5 percent for the continent through 2017.

false

Many New Zealanders, supported by Japanese, are outraged about Australia's "large-scale" whaling operations in Antarctic.

collecctivity, individualism

Many cultures around the world value modesty, team spirit, _____, and patience much more than competitiveness and _____, which are so important in the United States

create strategic advantage

More and more firms believe that ethics training and an ethics culture

true

More and more firms believe that ethics training and an ethics culture create strategic advantage.

25, 3

Recently, ___ African countries held democratic elections, whereas two decades ago only ___ African countries were considered democracies

true

Recently, the United States and China each crushed over 6 tons of elephant ivory as part of a global effort to combat elephant poaching.

false

Some strategists agree with Ralph Nader, who asserts that organizations have no obligation to do any more for society than is legally required.

true

Spoken Chinese has more in common with spoken English than with spoken Japanese or Korean.

true

Taking corrective actions, requires making changes to competitively reposition a firm for the future.

Vietnam

Telecommunications companies in _____, such as Viettel Mobile and Vietnam Mobile Telecom Services, provide the lowest data prices in the world at just over $3 per gigabyte

true

The Balanced Scorecard approach addresses the question "How satisfied are the firm's customers?"

China

The International Monetary Fund (IMF) recently reported that _____, the world's most populous country, has overtaken the United States as the world's number-one economic powerhouse.

false

The U.S. Chamber of Commerce is against the accounting switch from GAAP to IFRS, saying it will cause cross-border commerce to decline.

Vietnamese

_____ are among the most prevalent watchers of videos on smartphones in the world

Mexican

_____ employers are paternalistic, providing workers with more than a paycheck, but in return they expect allegiance.

ISO 14001

________ is a set of standards in fields such as environmental auditing, performance evaluation, and labeling, that is adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly manner.

whistle blowing

________ refers to refers to employees reporting any unethical violations they discover or see in the firm.

globalization

is a process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations

competitive advantage

normally are the result of superiority in one of three areas: resources, skills, or position

sustainability report

reveals how a firm's operations impact the natural environment discloses to shareholders information about the firm's labor practices, product sourcing, energy efficiency, environmental impact, and business ethics practices

wa

stresses group harmony and social cohesion

sexual harrasment

unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature

inversion

whenever a U.S. firm acquires a foreign firm and adopts the firm's lower tax rate or establishes a holding company in a foreign country and adopts the firm's lower tax rate

nemaswashio

whereby Japanese workers expect supervisors to alert them privately of changes rather than informing them in a meeting

advantages of doing global business

1. Firms can gain new customers for their products. 2. Foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets. 3. Foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials or cheap labor. 4. Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets. 5. Foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment. 6. Joint ventures can enable firms to learn the technology, culture, and business practices of other people and to make contacts with potential customers, suppliers, creditors, and distributors in foreign countries. 7. Economies of scale can be achieved from operation in global rather than solely domestic markets. 8. A firm's power and prestige in domestic markets may be significantly enhanced if the firm competes globally.

disadvantages of doing business globally

1. Foreign operations could be seized by nationalistic factions. 2. Firms confront different and often little-understood social, cultural, demographic, environmental, political, governmental, legal, technological, economic, and competitive forces. 3. Weaknesses of competitors in foreign lands are often overestimated, and strengths are often underestimated. 4. Language, culture, and value systems differ among countries, which can create barriers to communication. 5. Gaining an understanding of regional organizations is difficult. 6. Dealing with two or more monetary systems can complicate international business operations.

6 major requiremtnets of an EMS (Environmental Management System)

1. Show commitments to prevention of pollution, continual improvement in overall environmental performance, and compliance with all applicable statutory and regulatory requirements. 2. Identify all aspects of the organization's activities, products, and services that could have a significant impact on the environment, including those that are not regulated. 3. Set performance objectives and targets for the management system that link back to three policies: (1) prevention of pollution, (2) continual improvement, and (3) compliance. 4. Meet environmental objectives that include training employees, establishing work instructions and practices, and establishing the actual metrics by which the objectives and targets will be measured. 5. Conduct an audit operation of the EMS. 6. Take corrective actions when deviations from the EMS occur.

wildlife welfare

Consumers globally are becoming increasingly intolerant of any business or nation that directly or indirectly destroys wildlife, especially endangered wildlife, such as tigers, elephants, whales, songbirds, and coral reefs. This is in association with

false

Corporate social policy should be reaffirmed or changed during strategy implementation.

true

Corrective action in strategy evaluation is necessary to keep an organization on track toward achieving stated objectives.

true

The U.S. furniture manufacturing industry is not yet greatly challenged by foreign competitors.

offers insurance to offset some risks of doing business internationally

The U.S. government's OPIC

price, quality

The _____ and _____ of a firm's products and services must be competitive on a worldwide basis, not just on a local basis

false

To enhance effectiveness, R. T. Lenz recommends keeping the strategic management process routine.

code of business ethics

To ensure that the code of ethics is read, understood, believed, and remembered, periodic ethics workshops are needed to sensitize people to workplace circumstances in which ethics issues may arise

all of these

Which of the following is a corrective action a company might take to correct unfavorable variances?

Japanese

_____ place great importance on group loyalty and consensus, a concept called Wa.

Indians

_____ prefer to do business with those whom they have established a relationship built upon mutual trust and respect. Punctuality is important. Indians generally do not trust the legal system and someone's word is often sufficient to reach an agreement

Indonesia

_____'s currency is the rupiah and its economy is one of the fastest growing in Asia, behind China and the Philippines.

environmental management system (EMS)

a community or organization is required to put in place and implement a series of practices and procedures that, when taken together, result in this

generally accepted accounting principles (GAAP)

a set of accounting standards that is used in the preparation of financial statements

ISO 14001

a set of standards adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly manner

balanced scorecard

a strategy evaluation and control technique

international financial reporting standards (IFRS)

accounting standards, issued by the IASB, that have been adopted by many countries outside of the US

contingency plans

can be defined as alternative plans that can be put into effect if certain key events do not occur as expected

business ethics

can be defined as principles of conduct within organizations that guide decision making and behavior

feasibility

can the strategy be attempted within the physical, human, and financial resources of the enterprise

successful strategies

combine patience with a willingness to promptly take corrective actions when necessary

difficulties in strategy evaluation

complex environment, difficulty predicting future, number of variables, rapid rate of obsolescence, world events, and decreasing time span

consonance

refers to the need for strategies to examine sets of trends, as well as individual trends, in evaluating strategies