MGT Chapter 5&6

What term describes a group of firms or nations that agree to act as a monopoly and not compete with each other?

Cartel

What is meant by focus?

A business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment

What is a multinational corporation (MNC)?

A corporation, such as IBM, ExxonMobil, and Nestlé, that operates on a worldwide scale, without significant ties to any one nation or region

The fact that the American company 3M owns a film-manufacturing facility in Italy is an example of

A direct Investment

Which of the following characteristics relates to global business (globalization)?

A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business

Which of the following characteristics relates to contingency plans?

Alternate courses of action to be undertaken if certain organizational or environmental conditions change

What term describes a business-level strategy aimed at achieving the overall lowest cost structure in an industry?

Cost leadership

China's arrangement with the Congo to barter infrastructure in exchange for metals is an example of a

Countertrade agreement

When a nation pays for imports with its own goods, it is using

Countertrade agreement

What name is given to a business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price?

Differentiation

What term describes what a firm does well relative to its competitors?

Distinctive competence

Which of the following characteristics relates to the North American Free Trade Agreement (NAFTA)?

Effectively merged Canada, the United States, and Mexico into one market of about 400 million consumers by eliminating most tariffs and trade restrictions on agricultural and manufactured products among the three countries

Which of the following characteristics relates to the World Bank?

Established and supported by the industrialized nations in 1946 to loan money to underdeveloped and developing countries

What name is given to the sale of goods and services to foreign markets?

Exporting

What name is given to a form of licensing in which a company agrees to provide a name, logo, methods of operation, advertising, products, and other elements associated with the company's business, in return for a financial commitment and the agreement to conduct business in accordance with the company's standard of operations?

Franchising

What name is given to the final result that a firm wishes to achieve?

Goal

Which of the following refers to the market value of a nation's total output of goods

Gross Domestic Product

What term describes the physical facilities that support a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems, and commercial distribution systems?

Infrastructure

If Peru wants to purchase machine parts from a German company but lacks German marks, it will probably go to which of the following institutions to borrow the marks?

International Monetary Fund

What term describes a trade arrangement in which one company--the licensor--allows another company--the licensee--to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee, or royalty?

Licensing

Which of the following refers to a definition of an organization's fundamental purpose and its basic philosophy?

Mission

What term is used to describe a formal written declaration of the organization's mission that often includes the firm's philosophy, its primary products and markets, the intended geographic scope, and the nature of the relationships between the firm, its stakeholders, and society?

Mission statement

What is meant by contract manufacturing?

Occurs when a company hires a foreign company to produce a specified volume of the firm's product to specification

What name is given the transfer of manufacturing or other functions (such as data processing) to countries where labor and supplies are less expensive?

Outsourcing

Which of the following refers to a set of activities intended to achieve goals, whether for an entire organization, department, or an individual?

Plan

What name is given to the maximum number of units of a particular product that may be imported into a country?

Quota

The agreement between Japan's Sony Corporation and the Swedish telecommunication company Ericsson to make mobile phones is an example of a

Strategic Alliance

Which of the following refers to a partnership formed to create competitive advantage on a worldwide basis?

Strategic alliance

Which of the following refers to a general statement of actions an organization intends to take or is taking that is based on the fit of the organization with its external environment?

Strategy

Which of the following characteristics relates to the product life cycle?

The cycle of birth, growth, maturity, and decline of a product

What is meant by decline?

The product life cycle stage marked by decreases in the product's market share

What is meant by importing?

The purchase of goods and services from a foreign source

What is meant by corporate strategy?

The scope and resource deployment components of strategy for the enterprise as a whole

SWOT analysis

What name is given to the evaluation of the organization's internal strengths and weaknesses and the opportunities and threats associated with the business's external environment?

The ______ loans money to countries throughout the world for reconstruction and development, and also makes loans to poorer countries for infrastructure and social services purposes.

World Bank

In SWOT analysis, an environmental circumstance that is potentially beneficial for the firm is called

an opportunity

The first step in strategic planning is

determining the mission and strategic goals

Your saltwater taffy, which you produce right next to the Pacific Ocean in Orchard Park, Oregon, has a national reputation. You sell all you can make, and people drive hundreds of miles to your shop to buy it. You have a

distinctive competence

When Weseeyu, Inc., of Rochester, New York, sells contact lenses to people in Moscow, Russia, the company

is exporting the lenses

Miller Beer allows a Canadian firm to use its name, formula, and brands in return for a royalty. This arrangement is known as

licensing

The translation of product names can be a crucial factor in the success or failure of a foreign marketing effort because of

sociocultural differences

The purpose of a strategy is to

take advantage of what the organization does well, or hopes to do well

Strategic planning differs from general planning in that it focuses on

the external environment and long-term goals

You sell Gourmet Mushrooms (GMs) at $100 an ounce. You have a secret source of supply, jealously guarded. Your GMs are better than your competitors' mushrooms, and only the very wealthiest Americans buy them. You are using the business strategy called

Focus

_____ of a plan is where the organization goes from the "thinking" mode to the "doing" mode.

Implamentation