MGMT 3370 Exam 2

..... is the emotional reaction that can occur when disagreements become personal rather than professional.

A-type conflict

..... are defined as workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged.

Creative work environments

A technology ..... begins with the birth of a new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology.

Cycle

.... is the process of choosing a solution from available alternatives.

Decision making

Which of the following is a characteristic of discontinuous change?

Design competition

.... is the rivalry between two companies that offer similar products and services, acknowledge each other as rivals, and act and react to each other's strategic actions.

Direct competition

...... is a method in which a company builds a new business or buys an existing business in a foreign country.

Direct foreign investment

The most popular approach to increasing goal commitment is.....?

Encouraging workers' participation in goal setting

The .... approach to innovation assumes that innovation is occurring within a highly uncertain environment.

Experiential

Which of the following is an example of a common approach to corporate-level strategy?

Grand strategies

The purpose of a .... strategy is to increase profits, revenues, market share, or the number of places in which the company does business.

Growth

Groupthink occurs in .....

Highly cohesive groups where there is a great deal of pressure to agree with each other

When the first cell phone was released, only a few people could afford to buy it. Over the years, mobile manufacturers improved the phone designs and features and also reduced their cost to make them more affordable. This signaled the shift to the ..... stage of the technology cycle.

Incremental change

A(n) ..... strategy is a corporate strategy that addresses the question "How should we compete in this line of business?"

Industry-level

Organizational .... is the successful implementation of creative ideas in organizations.

Innovation

Which of the following is true of global business?

It is the buying and selling of goods and services to people from different countries.

A technology can become a dominant design if:

It solves a practical problem

According to S.M.A.R.T. guidelines, goals should be...?

Measurable

When companies don't anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival, it results in .....

Organizational decline

The first step in the compression approach to innovation is ......

Planning

Which of the following is the most specific type of standing plan?

Rules and regulations

A ..... is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment.

Situational analysis

...... is the most important factor in determining the success or failure of an international assignment.

The willingness of an expatriate's spouse and family to adjust to a foreign culture

An industry-level strategy that is best suited to changes in the organization's external environment is a(n) ..... strategy.

Adaptive

According to social psychologist Kurt Lewin, ........ lead to differences in the form, quality, or condition of an organization over time.

Change forces

....., the old technology and several different new technologies fight to establish a new technological standard or dominant design.

Design competition

Which of the following is NOT a part of the experiential approach to innovation?

Design lockout

Who among the following is responsible for developing operational plans?

Lower-level managers

The last step in effective planning is to....?

Maintain flexibility in planning

Which of the following is a characteristic of the inaction stage of organizational decline?

Managers wrongly assume that they can easily correct the problems, so they don't feel the situation is urgent.

Resource similarity and .... are factors that determine the extent to which firms will be in direct competition with each other.

Market commonality

Most companies used the ...... to successfully enter foreign markets.

Phase model of globalization

..... are types of standing plans.

Policies and procedures

A .... resource is a resource that is not controlled or possessed by many competing firms.

Rare

..... consists of the strategic actions that a company takes to return to a growth strategy.

Recovery

The research on diversification in portfolio management indicates that the best approach is probably...

Related diversification

Clive Motor Company solely owns and operates manufacturing plants in Brazil, Chile, Germany, and India. Which of the following methods for conducting global business is Clive in?

Wholly owned affiliate

The ..... is a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share. This strategy helps them to decide how to invest corporate funds.

BCG Matrix

.... is the measure of the intensity of competitive behavior between companies in an industry.

Character of the rivalry

Organizations can achieve a ..... by using their resources to provide greater value for customers than competitors can.

Competitive advantage

It is appropriate to use a(n) ..... approach to manage innovation in more certain environments, in which the goals are lower costs and incremental improvements in the performance and function of an 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 reducing the time it takes to complete those steps can speed up innovation.

Compression

A(n) ...... is an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country.

Cooperative contract

..... are the central companies in a strategic group.

Core firms

..... is the phase of a technology cycle characterized by technological substitution and design competition.

Discontinuous change

Which of the following is the first step in management by objectives?

Discussing possible goals

.... is a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio.

Diversification

The most important factor in an attractive business climate is the ......

Easy access to growing markets

The General Agreement on Tariffs and Trade (GATT):

Eliminated tariffs in ten specific countries

...... occurs when a company sells domestically produced products to customers in foreign countries.

Exporting

Which of the following represents the correct sequence of the phase model of globalization?

Exporting; cooperative contracts; strategic alliances; wholly owned affiliates

According to Hofstede's research on cultural dimensions, ........ cultures emphasize the importance of relationships, modesty, caring for the weak, and quality of life.

Feminine

Hofstede's research has shown that there are.....

Five consistent dimensions of cultural differences across countries

..... strategies typically work in market niches that competitors have overlooked or have difficulty serving.

Focus

..... are two kinds of cooperative contracts

Franchising and licensing

Global business:

Is the buying and selling of goods and services to people from different countries.

Which of the following is an advantage of planning?

It encourages people to work harder for extended periods

An expatriate is someone who .....

Lives and works outside his or her own country

Budgets are a type of ..... plans.

Operational

..... planning allows companies to maintain flexibility by making small simultaneous investments in many alternative plans.

Options-based

Which of the following is NOT one of the components of creative work environments?

Organizational impediments

A .... exists when there is a gap between a desired state (what managers want) and an existing state (the situation that the managers are facing).

Problem

.... are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.

Resources

In the context of the strategic reference point theory, the ..... strategy aims to protect an existing competitive advantage.

Risk-avoiding

Top management is responsible for developing .....

Strategic Plans

...... plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.

Tactical

Management by objectives (MBO) is a management technique often used to develop and carry out ....

Tactical plans

A(n) ...... is a direct tax on imported goods.

Tariff

The phases of a technology cycle within an innovation stream begins with:

Technological discontinuity

..... occurs when customers purchase new technologies to replace older technologies.

Technological substitution

A strategy-making process begins with:

The assessment of the need for strategic change

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

The three steps in the basic process of managing organizational change outlined by Kurt Lewin are .......

Unfreezing, change intervention, and refreezing

Organizational development....

emphasizes employee participation in diagnosing, solving, and evaluating problems.

.... is defined as the purchase of a company by another company.

Acquisition

Which of the following is an accepted method for tracking progress toward goal achievement?

Gathering and providing performance feedback

Over the long run, the best way for a company to sustain competitive advantage is to create ..... year after year.

Innovation streams

Which of the following is true about planning?

It helps managers create task strategies

Which of the following statements about resistance to change is true?

It is caused by misunderstanding and distrust.

A .... is a strategic alliance in which two existing companies collaborate to form a third, independent company.

Joint venture

Who among the following is responsible for the creation of tactical plans?

Middle managers

..... is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country.

National culture

A(n) ..... is a brief, two-sentence statement of a company's purpose for existing.

Organizational mission

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?

Organizational synergy

..... is associated with the risk of major changes in governmental regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events.

Political uncertainty

A company that is seeking to grow by taking risks and looking for innovations is best characterized as a(n) .....

Prospector

..... is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions.

Rational decision making

Managing global joint ventures can be difficult because they:

Represent a merging of four cultures

Nearly all technology cycles follow the typical ...... pattern of innovation.

S-curve

..... occurs when managers choose an alternative that is good enough, rather than the best possible outcome.

Satisficing

Companies often choose a ..... strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth.

Stability

The ..... is a type of operational plan that saves managers time because it is created once and then used repeatedly to handle frequently recurring events.

Standing plan

A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. These methods are .....

Standing plans

...... is a discrepancy between a company's intended strategy and the strategic actions managers take when actually implementing that strategy.

Strategic dissonance

Which of the following should be a key issue for a company once it decides to go global?

Strike the right balance between global consistency and local adaptation

..... are long-term loans, cash grants, and tax deductions used to develop and protect companies in special industries.

Subsidies

...... is defined as the knowledge, tools, and techniques used to transform inputs into outputs.

Technology

Which of the following is a common factor of global new ventures?

The development of cultural specific implementation policies

Which of the following is an example of core capabilities of an organization?

The organization's skill in maintaining large inventories effectively

The two general kinds of trade barriers are ......

tariff barriers and nontariff barriers