Management 301 Ch. 11

The process of evaluating results in relation to plans or objectives and deciding what action, if any, to take is referred to as ________. controlling decision making directing supervising

controlling

The use of monthly operating reports that are sent to the home office is a common example of ________. external control cultural control direct control indirect control

indirect control

Three sets of financial statements usually are required from subsidiaries; they do not include: statements prepared to comply with the accounting principles and standards required by the home country. statements prepared to meet the financial consolidation requirements of the home country. statements prepared in response to investigations and queries from the Securities and Exchange Commission (SEC). statements prepared to meet the national accounting standards and procedures prescribed by law and other professional organizations in the host country.

statements prepared in response to investigations and queries from the Securities and Exchange Commission

________ controls involve face-to-face or personal meetings to monitor operations. Indirect Parallel Direct Circular

Direct

A key difference between how French and Danish managers view time is that Danish managers do not value time as much as their counterparts.

False

As a total quality management (TQM) technique, rewards and recognition tend to be effective universally.

False

Direct controls use reports and other written forms of communication to control operations.

False

The degree to which a manager is involved in the decision-making process depends only on the structure of a subsidiary.

False

Which of the following factors encourage the use of decentralized decision making in subsidiary operations? Weak volume-to-unit cost relationship High degree of technology Low level of product diversification Homogeneous product lines

Weak volume-to-unit cost relationship

One technique associated with total quality management (TQM) is the use of ongoing training to achieve ________. continual improvement total overhaul of the organization linear progress recognition

continual improvement

Kaizen is a Japanese term that means ________. continuous improvement employee empowerment teamwork quality comes first

continuous improvement

Identify a factor that encourages the use of centralized decision making in subsidiary operations. Small geographic distance between home office and subsidiary Little experience in international business Little importance attached to brand name and patent rights Moderate to low degree of technology

Small geographic distance between home office and subsidiary

Typically, multinational companies (MNCs) are likely to use indirect controls to monitor performance on a monthly basis, whereas direct controls are used semiannually or annually.

True

Concurrent engineering is a total quality management (TQM) technique which encourages designers, engineers, and product specialists to work independently to develop new products.

False

Direct controls are particularly important in international management because of the great expense associated with indirect methods.

False

From an external control standpoint, a multinational company (MNC) is likely to focus on the things that it does best.

False

In domestic situations, when competition increases and profit margins are driven down, home-office management is likely to seek to standardize product and marketing decisions to reduce cost and maintain profitability.

False

Surprisingly, one of the least common approaches to personnel performance evaluation is the periodic appraisal of work performance.

False

While Alibaba's scale of operations is capital intensive, Amazon's approach allows for extra financial flexibility, as it does not need to build, staff, and maintain regional warehouses.

False

Which of the following is a factor that influences centralization of decision making in subsidiary operations? Large geographic distance between home office and subsidiary Heterogeneous product lines High degree of interdependence between units High level of product diversification

High degree of interdependence between units

Which of the following statements is true about external-oriented control process? It focuses on self, function, one's own group, and one's own organization. It discourages harmony, responsiveness, and sensibility. It often has a flexible attitude, willing to compromise and keep the peace. It proves to be uncomfortable when the environment seems out of control or changeable.

It often has a flexible attitude, willing to comprise and keep the peace

Which of the following statements is true about internal-oriented control process? It has a flexible attitude, willing to compromise and keep the peace. It proves to be uncomfortable when environment seems out of control or changeable. It encourages harmony, responsiveness, and sensibility. It focuses on others such as customers, partners, and colleagues.

It proves to be uncomfortable when environment seems out of control or changeable

The philosophy, "Anything worth doing in the area of quality is worth overdoing," is the management attitude of the ________. Danish French Japanese Americans

Japanese

Which of the following is a new line of thought about quality that is now emerging? Haste makes waste. Training is costly. Quality is everyone's job. Quality improvement takes time.

Quality is everyone's job

Which of the following strategies is most likely to benefit when doing business with managers who use an external control approach? Remembering that it is of most importance to maintain one's relationships with others Understanding that there is comfort with waves, shifts, and cycles, which are regarded as naturals Focusing more on others such as customers, partners, and colleagues Employing a flexible attitude and be willing to compromise and keep the peace

Remember that it is of most importance to maintain one's relationship with others

Which of the following strategies is most likely to benefit when doing business with managers who use an internal control approach? Focusing on self, function, one's own group, and one's own organization Employing a dominating attitude bordering on aggressiveness toward environment Understanding that conflict and resistance means that person has convictions Remembering that it is of most importance to win one's objective

Remembering that it is of most importance to win one's objective

Researchers have found that ________ teams feature higher team orientation, flatter organizational hierarchies, and more open-minded and informal work attitudes. Japanese French Swedish Indian

Swedish

Which of the following statements is true in the context of the decision-making process? Decision-making process is limited to helping a subsidiary respond to economic and political demands of a host country. The decision-making process is often linear, though looping back is common. If decision-making process is centralized, decisions are delegated to operating personnel. Cultural differences fail to inspire and motivate both decision-making process and its outcome.

The decision-making process is often linear, though looping back is common

Which of the following is not a form of direct control? Visits by top executives to overseas affiliates or subsidiaries The organizational structure of multinational companies (MNCs) The use of financial ratios that provide insights into a unit's financial health The staffing practices of multinational companies (MNCs)

The use of financial ratios that provide insights into a unit's financial health

Which of the following is likely to happen to the bottom-line performance of subsidiaries if a country devalues its currency? The price of subsidiary export goods will be higher for foreign buyers. There will be an increase in export sales of subsidiaries. There will be a decrease in the cost of imported materials and supplies for the subsidiary. The currencies of foreign buyers will have lower purchasing power.

There will be an increase in export sales of subsidiaries

Which of the following is a salient feature of direct control methods? They are particularly important in international management because of the great expense associated with indirect control methods. They allow top managers to learn firsthand the problems and challenges facing a unit and offer assistance. They involve the use of reports and other written forms of communication to control operations. They are typically used by multinational companies to monitor performance on a monthly basis, whereas indirect controls are used semiannually or annually.

They allow top managers to learn firsthand the problems and challenges facing a unit and offer assistance

A legal system called codetermination requires workers and their managers to participate in the discussion of major decisions.

True

A quality control circle is a group of workers who meet on a regular basis to discuss ways of improving the quality of work.

True

Although U.S. multinationals do not encourage lengthy stays in foreign management positions, European multinational companies (MNCs) often regard these positions as stepping-stones to higher offices.

True

Amazon not only hosts third-party sellers, but the company also acts as a direct merchant itself.

True

Efficient processes become increasingly important as diversification or differences between the parent and subsidiary increase.

True

Financial performance evaluation of a foreign subsidiary or affiliate is usually based on profit and return on investment.

True

The Japanese make heavy use of a decision-making process called ringisei or decision making by consensus.

True

The approaches to control employed by international managers are dictated by a multinational company's (MNC's) philosophy of control, the economic environment in which the overseas unit is operating, and the needs and desires of the managerial personnel who staff the unit.

True

A(n) ________ is an evaluation tool that is used to identify individuals with the potential to be selected or promoted to higher-level positions. behavior evaluation center employment suitability center assessment center employment testing center

assessment center

German automakers Audi, Mercedes-Benz, and BMW all share the same goal of leading the international luxury vehicle market. Audi has made the decision to target younger professionals in established markets and this decision is reflected in the company's new, trendy body designs. Audi's approach of targeting younger professionals in established markets is a strategic move aimed at ________. attacking competition reducing costs increasing quality diversifying risks

attacking competition

Today, multinational companies (MNCs) taking a total quality management (TQM) approach are ________. top heavy decentralized customer-driven reengineered

customer-driven

In domestic situations, when competition increases, management of a multinational company (MNC) is likely to: centralize authority. decentralize authority. integrate product or service lines. diversify product and service lines.

decentralize authority

The process of choosing a course of action among alternatives is referred to as ________. supervision directing decision making controlling

decision making

If decentralized decision making is in place, decisions are: made at the top management level. delegated to operating personnel. contracted to external consultants. made at the middle management level.

delegated to operating personnel

Two common ways of looking at how multinational companies (MNCs) control operations are: by looking at the ways in which the organization uses hierarchical and bureaucratic controls and by looking at the ways in which the organization uses external or internal controls. determining whether the organization uses accounting or strategic controls and by choosing whether the enterprise uses simple or complex controls. determining whether the enterprise chooses to use internal or external control and by looking at the ways in which the organization uses direct and indirect controls. choosing whether the enterprise uses simple or complex controls and by determining whether the organization uses financial or strategic controls.

determining whether the enterprise chooses to use internal or external control and by looking at the ways in which the organization uses direct and indirect controls

The process of giving individuals and teams the resources, information, and authority they need to develop ideas and effectively implement them is referred to as ________. empowerment kaizen reengineering total quality management

empowerment

Areas that are examined by the ISO 9000 certification team include all of the following except ________. design (product or service specifications) purchasing service (e.g., instructions for conducting after-sales service) environmental management standards process control (instruction for manufacturing or service functions)

environmental management standards

According to the work of Horovitz, all of the following are common characteristics of British control except: top management tended to focus attention on major problem areas and did not get involved in specific, detailed matters of control. financial reports were simple and lightly emphasized. control was used more for general guidance than for surveillance. operating units had a large amount of marketing autonomy.

financial reports were simple and lightly emphasized

Controls that are generally used by multinational companies (MNCs) to monitor performance on a monthly basis are ________. external indirect internal direct

indirect

The most common types of performance measures used for control purposes include the following except ________. financial performance quality performance personnel performance international monetary performance

international monetary performance

A multinational company (MNC) is likely to centralize its decision making when: the home office has more confidence in delegating to the local level and less to gain by making all the important decisions. a subsidiary has superior staff and resources which is likely to become increasingly skilled in manufacturing and marketing products at the local level over time. it is a high-tech, research-intensive firm dealing with sophisticated levels of technology. it has a mature product line and the subsidiary managers are experienced.

it is a high-tech, research-intensive firm dealing with sophisticated levels of technology

One of the primary areas where total quality management (TQM) is having a big impact is in ________. human resources management manufacturing finance marketing

manufacturing

A typical assessment center would involve simulation exercises that would include the following except ________. business decision exercises in-basket exercises preparation of a business plan oral communications of a business plan

oral communications of a business plan

In comparing the control mechanisms used by U.S. and European firms, it has been found that U.S. firms make greater use of ________ control, while European firms rely more heavily on ________ control. output; behavioral participative; bureaucratic behavioral; output bureaucratic; participative

output; behavioral

The amount of ________ directly relates to how well or how poorly a unit is judged to perform. expense revenue profit asset

profit

The amount remaining after all expenses are deducted from total revenues is referred to as ________. profit returns remuneration proceeds

profit

Financial performance evaluation of a foreign subsidiary or affiliate usually is based on ________. profit and return on investment profits and assets assets and owners' equity assets and return on investment

profit and return on investment

Return on investment (ROI) is measured by dividing ________. profit by assets profit by expenses expenses by revenues revenues by profit

profits by assets

A group of workers who meet on a regular basis to discuss ways of improving the quality of work is referred to as a ________. quality control circle committee task force self-managed team

quality control circle

ISO 9000 refers to the International Standards Organization (ISO) certification to ensure ________. on-time delivery quality products and services compliance with worldwide workplace equality standards safety standards

quality products and services

In Japan, what should be done is called ________, while what one really feels, which may be quite different, is called ________. honne; ringisei honne; tatemae ringisei; tatemae tatemae; honne

tatemae; honne

A multinational company (MNC) is likely to decentralize its decision making when: a subsidiary is selling new products in growing markets. the home office has a lot of confidence in delegating to a local level. it is a high-tech, research-intensive firm dealing with sophisticated levels of technology. local subsidiary managers are inexperienced or ineffective.

the home office has a lot of confidence in delegating to a local level

The following are common problems that multinational companies (MNCs) face in attempting to control their overseas operations except: amount of experience and competence in planning are widely diverse among foreign chief executive officers (CEOs). the objectives of joint-venture partners and corporate management conflict. basic philosophic conflicts exist about objectives and policies of foreign operations, largely because of cultural differences between home- and host-country managers. the objectives of the foreign operation and the corporate objectives are similar.

the objectives of the foreign operation and the corporation objectives are similar

Personal computer (PC) firms are finding that they must keep on the cutting edge more than any other industry because of: the tendency of customers to switch brands frequently. the shrinking market. the relentless pace of technological change. their reliance on upscale retail outlets.

the relentless pace of technological change

Centralized decision making in a multinational company (MNC) is more likely when: there are important brand names or patent rights involved and a multinational company (MNC) wants to create as much protection as possible. domestic competition increases and management wants a local subsidiary manager to have greater decision-making authority. the home office has more confidence in delegating to the local level and less to gain by making all the important decisions. a subsidiary has superior staff and resources that is likely to become increasingly skilled in manufacturing and marketing products at the local level over time.

there are important brand names or patent rights involved and a multinational company ants to create as much protection as possible

An organizational strategy and the accompanying techniques that result in the delivery of high-quality products or services to customers is referred to as ________. total quality management ISO 9000 reengineering just-in-time management

total quality management

The Japanese method of training workers for all jobs on the line, even though they eventually are assigned to a single workstation is known as ________. kaizen ringisei taguchi method training overkill

training overkill