Management Midterm
Power of Buyers
Extent of buyer's influence on suppliers
Power of Suppliers
Extent of suppliers influence on buyers
The ____ environment is everything outside an organization's boundaries that might affect it.
External
In the Women's Pro Softball League (WPSL), the ticket revenues are ____ resources.
Financial
Threat of Substitute Products
Can other products work just as well?
A(n) ____ business is one that is primarily based in a single country but that acquires some meaningful share of its resources and/or revenues from other countries.
International
The norm of ____ means determining whether the act is consistent with what most people would see as fair.
Justice
Reactor
No clear organizational approach; design characteristics may shift abruptly depending on current needs
Whistle blowing
Occurs when an employee discloses illegal or unethical conduct by others within an organization.
Threat of new entrants
Ease of entering the market
Competitive Rivalry
Rivalry between firms in the same industry
5 Megatrends
Shift in global economic power, demographic change, rapid urbanization, rise of technology, and climate change/resource scarcity.
Economic Dimension
The overall health and vitality of the economic system in which the organization operates
How Organizations Adapt to Their Environments
information management; strategic response; mergers, acquisitions, and alliances; organization design and flexibility; direct influence; and social responsibility
Prospector
innovative and growth oriented, searches for new markets and new growth opportunities, encourages risk taking
Emergent strategy
is a developed pattern of actions in the absence of mission and goals or despite mission and goals. A strategy that is created over time as your plan makes contact with an ever-changing reality
The Product Life Cycle
is a model portraying how sales volume for products change over the life of the product.
Analyzer
maintains current markets and current customer satisfaction with moderate emphasis on innovation
Communication skills
The manager's abilities both to effectively conveyideas and information to others and to effectivelyreceive ideas and information from others.
Technological dimension
The methods available for converting resourcesinto products or services.
Regulatory agencies
An agency created by the government to regulatebusiness activities.
Organization Culture
The set of values, beliefs, behaviors ,customs, and attitudes that helps the members of the organization understand what it stands for, how it does things, and what it considers important.
The ____ is the extent to which new competitors can easily enter a market or market segment.
Threat of new entrants
How to identify a megatrend
look at macroeconomic factors such as demographic shifts, technological developments and political changes.
Effectiveness
making the right decisions and successfully implementing them producing a desired result
Accommodative Stance
meets legal requirements and goes beyond sometimes.
Maquiladoras
are light-assembly plants built in northern Mexico, close to the U.S. border.
Global Business
transcends national boundaries and is not committed to a single home country.
Multinational Business
uses a worldwide marketplace to buy materials, borrow money, manufacture, and sell its products.
A(n) ____ business transcends national boundaries and is not committed to a single home country.
Global
Sociocultural dimension
The customs, mores, values, and demographiccharacteristics of society.
The Sarbanes-Oxley Act of 2002 ____.
Imposes tough measures to deter corporate and accounting fraud
International dimension
The extent to which an organization is involved in oraffected by business in other countries.
Political-legal dimension
The government regulation of business and therelationship between business and government.
Interest group
A group organized by its members to attempt to influencebusiness.
Conceptual skills
The manager's ability to think in the abstract
Efficiency
Using resources wisely and in a cost effective way
Deliberate strategy
is a chosen plan of action implemented to support specific goals
overall cost leadership
reduce manufacturing and other costs
three sources of competitive advantage
-global efficiencies -multinational flexibility -worldwide learning
Management Process
1. Planning and Decision making 2. Organizing 3. Leading 4. Controlling
Organization
1: Human Resource 2: Financial Resource 3: Physical Resource 4: Information Resource
code of ethics
A formal, written statement of the values and ethical standards that guide a firm's actions
In what way is a global business different than a multinational business?
A global business is not committed to a single home country.
Regulators
A unit that has the potential to control, legislate, orotherwise influence the organization's policies andpractices
How an organization treats its employees
Hiring, firing, wages, work conditions, privacy and respect.
In the Women's National Basketball Association (WBNA), the coaches, managers, and players are ____ resources.
Human
____________ is the least risky type of international business in which firms usually become involved with.
Importing/exporting
Organizational stakeholders
Person or organization who is directly affected by the practices of an organization and has a stake in its performance
In the National Football League, stadiums like the SoFi Stadium in Los Angles are ____ resources.
Physical
Flowers can be purchased from florists, supermarkets, discount stores, and street vendors. In the 1920s, the most popular flower was the narcissus. In the 1960s, daisies were extremely popular. In the latter part of the twentieth century, roses were popular. This changing taste in flowers reflects changes in the ____ dimension of the general environment.
Sociocultural
Task Environment
Specific organizations or groups that influence an organization
McDonalds operates restaurants in airports around the world. The agreement between McDonalds and the airports is a(n)
Strategic alliance.
The BCG matrix
a method of evaluating businesses relative to the growth rate of their market and the organization's share of the market.
Domestic Business
acquires all of its resources and sells all of its products or services within a single country.
World Trade Organization (WTO)
began in 1995 and replaced the GATT, absorbing the GATT, absorbing its mission. Requires members to open their markets totheir markets to international trade follow WTO rules
The Task Environment
competitors, customers, suppliers, strategic partners, regulators, Regulatory agencies, and interested group
Manager Skills
conceptual, technical, interpersonal, time-management, decision making, communication, diagnostic
The four types of organizational justice are:
distributive, procedural, interpersonal, andinformational.
Defensive Stance
does only what is legally required, nothing more
Obstructionist Stance
firm does as little as possible
Multinational Flexibility
gives firms the ability to respond to change in one region by making changes in other regions
Worldwide Learning
gives firms the advantage of adopting best practices from wherever they originate
Examples of mega trends
health, population growth, urbanization and digitalization
The Internal Environment
owners, board of directors, employe issues, The Physical Work Environment
Sarbanes-Oxley Act of 2002
requires CEOs and CFOs to vouch for the truthfulness of their firm's financial disclosures.
Proactive Stance
views itself as a citizen and seeks opportunities to contribute.
Diversification
the number of different businesses an organization engages in and the extent to which these businesses are related to each other.
Five Competitive Forces
the threat of new entrants, competitive rivalry, the threat of substitute products, the power of buyers, and the power of suppliers
Levels of Management
top managers, middle managers, first-line managers
According to Griffin's definition, In n Out Burger is considered a _______ business.
Domestic
Technical Skill
Are necessary to accomplish to understandthe specific kind of work being done in anorganization.
Which of the following occurs when a firm headquartered in one country, purchases operating facilities in a foreign country? A: licensing B: direct investment C: a strategic alliance D: joint venture
B. Direct investment
Which of the following refers to using resources wisely and in a cost-effective way? A: pervasiveness B: reliability C: efficiency D: effectiveness
C. Efficiency
Which of the following statements BEST reflects the relationship between management and leadership? A: Management and leadership are the same thing. B: Leadership and management are unrelated concepts. C: Leadership is only one part of management. D: Management is only one part of leadership.
C. Leadership is only one part of management.
Which is one of the four basic management functions, and requires determining how to group activities and resources? A: correcting B: motivating C: organizing D: disciplining
C. Organizing
Boards of directors are responsible for which area of emerging ethical issues?
Corporate governance
When Starbucks operates in other countries, it customizes snacks to local tastes. This is a(n) ____ challenge for international managers.
Cultural
How employees and the organizations treat other economic agents.
Customers, competitors, stockholders, suppliers, dealers, and unions.
The process of actively monitoring the environment through activities such as reading and observation is called ____.
Environmental scanning
What is often considered to be the most important and most challenging of all management activities? A: Leading B: Organizing C: Controlling D: Planning
D. Planning
Which skills are most important for first-line managers? A: Operational B: Diagnostic C: Conceptual D: Technical
D. Technical
Which of the following correctly lists all of the basic management functions? A: decision making, controlling, leading, and coordinating B: planning, decision making, organizing, and controlling C: planning and decision making, leading, and organizing D: planning and decision making, organizing, leading, and controlling
D: Planning and decision making, organizing, leading, and controlling
Which of the following is a thorough, formal analysis of the effectiveness of a firm's response to social responsibility? A: a legal compliance assessment B: an ethics review C: whistleblowing D: a corporate social audit
D: a corporate social audit
Human resource
Definition and example
The firm using a(n) ____ approach to social responsibility meets its obligations and is also willing to respond to appropriate societal requests.
Accommodative
The primary purpose of The Management Process (What do Managers Do?) is to ____.
Achieve organizational goals efficiently and effectively
____ is the cultural belief that the person comes first.
Individualism
In the Major League Soccer (MLS), the promotional ads are ____ resources.
Informational
The relationship between business and government is part of the ____ dimension.
Political-legal
Theo works for a data mining company. He recently discovered a co-worker who has knowingly breached the company's online privacy policy to complete an important project for his manager. If Theo decides to report this breach, his actions will be considered ____.
Whistleblowing
Where does any effort to enhance ethical behavior in the workplace begin?
With top management
General Agreement on Tariffs and Trade (GATT)
is a trade agreement to promote international trade by reducing barriers and making it easier for all nations to compete into international markets
International Business
is based in a single country but acquires meaningful resources and/or revenues from other countries.
Market economy
is based on the private ownership of business that allows market factors such as supply and demand to determine business strategy
Strategy implementation
is the methods by which strategies are executed within the organization it focuses on the processes which achieve strategies.
Strategy formulation
is the set of processes involved in creating or determining the strategies of the organization it focuses on the content of strategies.
Megatrends
Are trends that have an effect on a global scale. Some of the current mega trends are identical with global threats. It's also a major movement, pattern, or trend emerging in the microenvironment.
The extent to which the environment is relatively stable or dynamic is referred to as the degree of ____.
Change
Market systems.
Clusters of countries that engage in high levels of trade with one another
Focus
Concentrate on specific regional market, product market, or group buyers
A manager's ability to think in the abstract is a(n) ____ skill.
Conceptual
How employees treat the organization
Conflicts of interest, secrecy, confidentiality, and honesty.
What is the extent to which an organization follows basic standards of moral behavior?
Ethical compliance
Porter's Generic Strategies
Differentiation, Overall cost leadership, and Focus
Differentiation
Distinguish products or services
International Business
Domestic, International, Multinational, Global
When a locally owned construction firm fears new competition from a national chain such as Toll Brothers moving in, it is experiencing a change in its...
External environment.
When IBM makes large contributions to the performing arts, it is working in which general area of social responsibility?
General social welfare
Global Efficiencies
Location efficiencies allows firms to locate wherever they can obtain cost advantage. - Economies of scale lowers the per unit cost of production due to large quantities. - Economies of scope lowers cost per unit by sharing expenses across product lines
eBay is based in San Jose, California, but buyers and sellers on the site are located around the world. eBay is a(n) ____ business
International
The extent to which an organization is affected by or involved in businesses in other countries refers to its ____.
International dimension
Which type of justice relates to the degree of fairness people see in how they are treated by others in their organization?
Interpersonal
What is meant by the glass ceiling
It is a barrier that keeps women and other minorities from upper management positions.
Who or what is generally the starting point of an organization's culture?
Its founder
The National Football League and team owners allow shirts, hats, blankets, and many other products to be sold with team logos on them. The teams and league get a percentage of the sale. The teams have chosen to use a(n) ____ strategy to generate more income.
Licensing
The light assembly plants built in Northern Mexico close to the U.S. border, and are given tax breaks by the Mexican government, are referred to as ____.
Maquiladoras
What is involved in the managerial function of controlling?
Monitoring an organization's progress toward its goals.
Companies that take a(n) ____ stance to social responsibility do as little as possible to solve social or environmental problems.
Obstructionist
The Four stances of an organization
Obstructionist stance, Defensive stance, Accommodative stance, Proactive stance.
Employees are more likely to be motivated to participate in activities, follow rules, and accept outcomes when the perceive a high level of ____.
Procedural justice
The Miles and Snow Typology
Prospector Defender Analyzer Reactor
Defender
Protects current markets, maintains stable growth, serves current customers
In what way can the government attempt to influence how a business operates, and what they can and cannot do?
Regulation
The Federal Communications Commission monitors radio broadcasts for inappropriate content. This is an example of the ____ component.
Regulator
Decision-making skills
The manager's ability to correctly recognize anddefine problems and opportunities and to thenselect an appropriate course of action to solveproblems and capitalize on opportunities.
Which of the following would be an ethical breach on the part of an employee toward the organization? A: sharing confidential information B: paying more than necessary C: hiring a personal friend D: a manager sharing private information about an employee
A. sharing confidential information
Management can best be defined as...
Achieving organizational goals in an efficient and effective manner
Managerial Ethics
Are standards of behaviorthat guide individual managers in their work.
Interpersonal skills
Are the ability to communicate with,understand, and motivate both individuals andgroups.
What is the term that describes differences among people?
Diversity
General Motors sold an auto parts company because profitability was low. The primary environmental dimension considered was...
Economic
Unemployment rates, interest rates, and economic growth are part of the ____ dimension of organizations.
Economic
The General Environment
Economic, technological, sociocultural, political- legal, and international dimensions
Since the company's founding, Petra and her top executives have provided a consistent message to employees that customers, employees, communities where the company did business, and shareholders were all important. This is an example of what type of informal organization dimension of managing social responsibility.
Leadership practices
Executives carry smart phones that keep them connected to people and information all day. This is an example of the ____ dimension of the external environment.
Technological
The ____ dimension refers to the methods available for converting resources into products and services.
Technological
Time-management skills
The manager's ability to prioritize work, to workefficiently, and to delegate appropriately.
Diagnostic skills
The manager's ability to visualize the mostappropriate response to a situation.
General Environment
The set of broad dimensions and forces in an organization's surroundings that create its overall context.