MGMT 3302 Exam 2 Hartsell
According to Hofstede's research on cultural dimensions, ____ cultures emphasize the importance of relationships, modesty, caring for the weak, and quality of life.
feminine
Glassmaker AFG Industries positions itself as the primary supplier of glass used in microwave doors, shower doors, and patio tables. What type of a positioning strategy does the glass manufacturer use?
focus
The positioning strategy that is always paired with one of the other two positioning strategies to produce a specialized product or service is ____.
focus
Protectionism is the use of trade barriers to protect local companies and their workers from ____.
foreign competition
Which of the following types of global organization is most likely to suffer problems associated with being culture bound?
franchising
Backward compatibility is an important consideration for software users who are using an accounting program to facilitate their tax preparation and who want to use a newer version that has greater capacity. Therefore, many software manufacturers engage in ____.
generational change
Companies can achieve growth mainly by ____.
growing internally through direct expansion or creating new businesses
Groupthink occurs in ____.
highly cohesive groups where there is a great deal of pressure to agree with each other
The evidence clearly shows that ____ is the most important factor in determining the success or failure of an international assignment.
how well an expatriate's spouse and family adjust to the foreign culture
The European Union encourages companies to abandon national boundaries and offer the same products to all of the member countries. Allianz, Germany's largest insurance group, is considering converting from a German company to a European company. If it makes this decision rationally, it will first ____.
identify problems arising from tax and regulatory issues
A(n) ____ is a resource that is impossible or extremely costly or difficult for other firms to duplicate.
imperfectly imitable
Which of the following must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?
imperfectly imitable resources
During the ____ phase of a technology cycle, companies innovate by lowering the cost and improving the functioning and performance of the dominant design.
incremental change
Which of the following is NOT a part of the experiential approach to innovation?
initiative conversations
Companies in the chemical industry are struggling to attract the most talented college graduates. One of the biggest challenges facing these companies is attracting new talent to organizations with an "old economy" image. A situational analysis would term this challenge a(n) ____.
internal weakness
A technology cycle occurs whenever there are major advances or changes in the ____ in a field or discipline.
knowledge, tools, and techniques
An expatriate is someone who ____.
lives and works outside of his or her own country
Under conditions of ____, a competitive attack by the stronger rival is more likely to produce sustained competitive advantage.
low resource similarity
Who is primarily responsible for developing operational plans?
lower-level managers
Resource similarity and ____ are factors that determine the extent to which firms will be in direct competition with each other.
market commonality
Nestlé is a company headquartered in Switzerland with manufacturing plants in Columbia, Australia, Canada, Egypt, Kenya, and more than 90 other nations. Nestlé is an example of a ____.
multinational corporation
Deutsche Bank is the largest bank in the world. Would this give it a sustainable competitive advantage?
no, because size is not a criteria for sustainable competitive advantage
According to the text, valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are ____ resources.
nonsubstitutable
Budgets are an example of ____ planning.
operational
The basic purpose of ____ planning is to leave commitments open by maintaining slack resources.
options-based planning
Creativity was needed to improve efficiency without raising costs at one automobile maker. Over the last few years, the company has successfully implemented a creative engineering program that allows its plants to produce more than one type of car from the same assembly line. This successful change to a flexible manufacturing system is an example of ____.
organizational innovation
Historically, most companies have used the ____ to successfully enter foreign markets.
phase model of globalization
After earning $8 billion in profit, Royal Dutch/Shell decided to strive to double its profits within the next five years. Which classical management function would be instrumental in achieving this goal?
planning
The first step in the compression approach to innovation is ____.
planning
Uganda is one of only two countries in the world that produce a mineral required in the manufacturing of cellular phones. Several mining companies recently moved their operations out of the region due to a bloody civil war resulting from a change in rulers. This is an example of how ____ can influence global business.
political uncertainty
Cost leadership, differentiation, and focus are the three types of ____ strategies discussed in the text.
positioning
Because of slowing sales, Arm & Hammer started promoting innovative uses for its baking soda. By searching for new market opportunities, the manufacturer of Arm & Hammer is using which type of adaptive strategy?
prospecting
Which of the following is a trend that has allowed companies to skip the phase model when going global?
quick, reliable air travel
An organization which is a ____ in terms of its adaptive strategy would NOT follow a consistent strategy.
reactor
In an attempt to stop declining profitability, ICI, a British chemical company, deleted petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. If ICI is successful in making the needed changes, it will more than likely implement a ____ strategy.
recovery
The research on diversification in portfolio management indicates that the best approach is probably ____.
related diversification
From a competitive standpoint, ____ means that the strategic actions your company takes can probably be matched by your direct competitors.
resource similarity
Which of the following is one of the sources of resistance to change?
self-interest
The use of milestones in the experiential approach to innovation ____.
shortens the innovation process
What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufacturer?
single-use plan
The goals of the compression approach to innovation are ____.
speed, lower costs, and incremental change of dominant design
A department store is experiencing greater than usual losses due to theft and management wants it stopped. Middle management decided to hire a security company to study the problem and develop the best plan for dealing with it. Middle management have implemented a(n) ____ plan.
tactical
An Australian manufacturer of surfboards wants to increase awareness of its brand in the U.S. market. A ____ plan to accomplish this objective might be to host a series of surfboard competitions in California .
tactical
When done correctly, management by objectives (MBO) is an extremely effective method for ____.
tactical planning
A(n) ____ is a direct tax on imported goods designed to make it more expensive to buy those goods, instituted in hopes of reducing the volume of those imported goods in a given country.
tariff
As Malta got ready for its admittance into the European Union (EU), the EU removed all taxes on the importation of goods manufactured in Malta. In other words, the EU abolished ____ for Malta-manufactured merchandise.
tariffs
In order from beginning to end, the phases of a technology cycle within an innovation stream consist of ____.
technological discontinuity, discontinuous change, dominant design, and incremental change
An innovation stream moves from one technology cycle to another through the process of ____.
technological substitution
Discontinuous change in an innovation stream is characterized by ____.
technological substitution
All global new ventures share two common factors. One is that the company founders successfully develop and communicate the company's global vision from the start. The other is ____.
the bringing of a good or service to several different foreign markets at the same time
Global business is defined as____.
the buying and selling of goods and services to people from different countries
The term ____ is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.
uncertainty avoidance
When a merger of South Carolina-based Springs Industries with the Brazilian textile producer Coteminas was announced, the CEO of Springs was quoted as saying, "It is unclear what effect this move will have on our employees though no immediate layoffs are planned. There may be some in the future." In the ____ stage of the organizational change, the CEO should use empathy and communicate specific details of the merger.
unfreezing
Which of the following is one of the three steps in the basic process of managing organizational change outlined by Kurt Lewin?
unfreezing
The three steps in the basic process of managing organizational change outlined by Kurt Lewin are ____.
unfreezing, change intervention, and refreezing
Ernst & Young, an international accounting and management consulting company, entered Hungary first by establishing a joint venture with a local firm. Ernst & Young later acquired the company with which it had the alliance. As a result Ernst & Young then had a(n) ____ in Hungary.
wholly owned affiliate
A situational analysis for a manufacturer of pet food might reveal which of the following facts____.
A SWOT analysis might reveal all of the listed issues.
The ____ is a decision-making method in which a panel of experts responds to questions and to each other until an agreement is reached on how a specific issue should be handled.
Delphi technique
The acronym GATT stands for the ____.
General Agreement on Tariffs and Trade
The signing of the ____ created a regional trading zone in Europe.
Maastricht Treaty
According to the S.M.A.R.T. guidelines, goals should be ____.
Measurable
____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of people from a particular country.
National culture
____ planning keeps options open by making small, simultaneous investments in many alternative plans.
Options-based
The Japanese government continues to use the high tariffs to make sure local farmers can earn a living. The tariff on rice is an example of ____.
Protectionism
____ are the targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage.
Strategic reference points
Which of the following statements is true about how the portfolio strategy can be used to help managers acquire companies that fit well with the rest of their corporate portfolio?
The most significant advantage of the portfolio strategy is the ability to categorize businesses as stars, exclamation points, question marks, and dogs.
One of the major questions that a company must typically answer about its future, once it has decided to go global is ____.
To what extent should the company standardize or adapt business procedures?
Which of the following is one of the six steps in the rational decision-making process?
Weight the criteria
The European Union (EU) bans the importation of hormone-fed U.S. beef and bioengineered corn and soybeans on safety grounds. This ban is so consumers in the EU will buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of ____.
a government import standard
Robert Mondavi Wineries entered into an agreement with Baron Philippe de Rothschild, owner of Bordeaux's First Growth chateau, to produce a top quality wine in California. The two companies working together to create a new product is an example of ____.
a joint venture
When McDonald's entered into an agreement with a French entrepreneur who wanted to own and operate a McDonald's fast-food restaurant in Paris, McDonald's saw the new restaurant as an opportunity. Unfortunately, the restaurant in Paris was not maintained at the cleanliness standards prescribed by McDonald's (but acceptable to the cleanliness standards of the French). McDonald's brought legal action to have the restaurant closed. This example illustrates ____.
a problem with franchising in different cultures
Which of the following is a mechanism used to examine external threats and opportunities facing a firm as well as its internal strengths and weaknesses?
a situational analysis
The ____ approach to decision-making is a method in which an individual or a subgroup is assigned the role of a critic.
devil's advocacy
A manufacturer of suntan lotion could set a(n) ____ goal to increase revenues by 8 percent over the next five years and a(n) ____ goal to increase sales next June in the Miami Beach area by 3 percent.
distal; proximal
While ____ are tangible, ____ are not.
distinctive competencies; core capabilities
When resistance to change is based on insufficient, incorrect, or misleading information, managers should use ____ as an approach to manage resistance.
education and communication
The most popular approach to increasing goal commitment is ____.
encouraging workers' participation in goal setting
There are eight general steps for organizational development intervention. The first step is ____.
entry
As a company that manufactures janitorial cleaning supplies tries to develop more environmentally -friendly products that can clean as well as its current ones, the company's manager must select among alternatives derived from oranges, parsley, lemon, or a combination of these ingredients. This is the ____ step in the rational decision-making model.
evaluate each alternative
Which of the following is NOT one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability?
existing complementary products
Unverferth Manufacturing has been a manufacturer and supplier of innovative agricultural equipment since 1948. Recently it began developing a new 12-row strip-till subsoiler, which prepares 10-inch-wide seed beds spaced 40 inches apart. Before introducing the new tiller to the market, Unverferth developed and tested nearly three-dozen product prototypes. Unverferth used the ____ approach to innovation.
experiential
When Coca-Cola acquired a water-treatment and bottling plant so it could produce and market Dasani brand bottled water, it was an example of ____.
external growth
The nominal group technique improves group decision making by ____.
decreasing a-type conflict
When Coca-Cola discovered it had an unauthorized bottler selling Coke in the Colombian jungle, it used the rational decision making process to find a solution. What do you know about the stage in which Coke evaluated its possible courses of action?
Coke found this stage to be the most time-consuming of all the stages.
An industry-level strategy that is best suited to changes in the organization's external environment is a(n)____.
adaptive
Which of the following forms of organizing a global business help companies to avoid tariff and nontariff barriers to entry of a given foreign market?
all of these
Which of the following is a component of a creative work environment that encourages creativity?
all of these
Among companies who use the adaptive strategies, ____ blend the strategies used by ____.
analyzers; defenders and prospectors
When significant improvements in performance can ONLY be gained through radical new designs or new performance-enhancing materials, it is likely that a company is ____ in the S-curve pattern of innovation.
at the end of the innovation cycle
According to Michael Porter, five industry forces determine an industry's overall attractiveness and potential for long-term profitability. Which of the following is one of those forces Porter identified?
bargaining power of suppliers
Planning works best when the goals and action plans at the ____ of the organization support the goals and action plans at the ____ of the organization.
bottom and middle; top
Tom Valerio was the point man on a major push to reinvent CIGNA Property & Casualty. His vision for CIGNA was to become a top-quartile, specialist property and casualty company. It was a radical proposition. Valerio was a(n) ____.
change agent
Planning is ultimately based upon ____.
choosing a goal and developing a method or strategy to achieve that goal
ARI is a leading provider of sales and profit-building technology services for equipment dealers. When Unverferth Manufacturing, a supplier of agricultural equipment, wanted to change the way it supplied information it contacted ARI. ARI presented the manufacturer with a solution that allowed it to replace its paper catalogs with online catalogs. As a result, Unverferth was able to eliminate costly paper catalogs and gain the ability to provide up-to-the-minute information to its dealers. This incremental change that was aided by supplier involvement was an example of the ____ approach to innovation.
compression
It is appropriate to use a(n) ____ approach to manage innovation in more certain environments during periods of incremental change, in which the goals are lower costs and incremental improvements in the performance and function of the existing technological design.
compression
The ____ approach to managing innovation assumes that innovation is a predictable process made up of a series of steps and that compressing the time it takes to complete those steps can speed up innovation.
compression
A firm using a ____ strategy to prevent or reduce political risks will lobby foreign governments or international trade agencies to change laws, regulations, or trade barriers that hurt their business in that country.
control
The ____ strategy of minimizing or adapting to the political risk inherent to global business makes use of joint ventures and collaborative contracts.
cooperation
The term ____ refers to the overall organizational strategy that addresses the question "What business or businesses are we in or should we be in?"
corporate-level strategy
Kodak is a company associated with photography and has decided to become a market leader in digital imaging. Kodak can encourage the development of a culture where workers perceive that new ideas are welcomed by offering challenging work and supervisory encouragement. In other words, the company can create a(n) ____.
creative work environment
____ are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged.
creative work environments