Principles of Management Test 2
uncertainty avoidance
Characterized by people's intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity.
merger
Combination of two or more companies into a single firm
global mindset
The ability to appreciate and influence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, and psychological characteristics.
power distance
The degree to which people accept inequality in power among institutions, organizations, and people.
False
The general environment affects organizations directly
True
The international dimension of the general environment includes events originating in foreign countries, as well as new opportunities for U. S. companies in other countries.
Ethnocentrism
The natural tendency among people to regard their own culture as superior to others.
a) $1,500
The term bottom of the pyramid refers to the more than 4 billion people who earn less than US _______ a year. a. $1,500 b. $2,500 c. $3,500 d. $5,000 e. $10,000
global outsourcing
also called offshoring, means engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies
joint venture
an organization shares costs and risks with another firm in a foreign country to build a facility, develop new products, or set up a sales and distribution network
multinational corporation
an organization that receives more than 25 percent of its total sales revenues from operations outside the parent company's home country and has a number of distinctive managerial characteristics
adaptability culture
characterized by values that support the company's ability to interpret and translate signals from the environment into new behavior responses
competitors
companies in the same industry that sell similar products or services to customers
long term orientation vs short term orientation
connects issues and/or challenges of the past with those of the current and future
culture leaders
define and articulate important values that are tied to a clear and compelling mission, which they communicate widely and uphold through their actions
strategic issues
events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives
external organizational environment
includes all outside elements that affect the organization
legal-political dimension
includes government regulations at the local, state, and federal levels, as well as political activities designed to influence company behavior
boundary spanning
links to and coordinates the organization with key elements in the external environment
high performance culture
managers emphasize both values and business results
international dimension
of the external environment represents events originating in foreign countries as well as opportunities for U.S. companies in other countries
technological dimension
of the general environment includes scientific and technological advances in society
low-context culture
people use communication primarily to exchange facts and information
high-context culture
people use communication to build personal relationships
suppliers
provide the raw materials the organization uses to produce its output
Political Risk
refers to a company's risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments
Globalization
refers to the extent to which trade and investments, information, ideas, and political cooperation flow between countries
sociocultural dimension
represents the demographic characteristics, norms, customs, and values of the general population
economic dimension
represents the general economic health of the country or region in which the organization operates
labor market
represents the people available for hire by the organization
implicit communication
sending and receiving unspoken cues such as tone of voice or body language as well as spoken words
cultural intelligence (CQ)
the ability to use reasoning and observation to interpret culturally unfamiliar situations and know how to respond appropriately. The 3 aspects are cognitive, emotional, and physical CQ
task environment
the environment containing elements that can have an immediate impact on organizational success. elements include competition, customers, suppliers, and labor market
internal environment
the events and trends inside an organization that affect management, employees, and organizational culture
euro
the single European currency, which replaced the currencies of 19 EU member nations.
customers
those who purchase an organization's goods and/or services
supply chain
a network of multiple businesses and individuals that are connected through the flow of products or services
organizational ecosystem
a system formed by the interaction of a community of organizations and their environment
c) competitors
. Which of the following is not a part of an organization's general environment? a. Technological factors b. Economic factors c. Competitors d. Legal-political factors e. Sociocultural factors
Masculinity
A cultural preference for achievement, heroism, assertiveness, work centrality, and material success.
feminity
A cultural preference for relationships, cooperation, group decision making, and quality of life.
a) competitive intelligence
A growing area of boundary spanning is ___________, which refers to activities to get as much information as possible about one's rival. a. competitive intelligence b. informational intelligence c. business intelligence d. big data analytics e. artificial intelligence
Exporting
A market entry strategy in which a company maintains production facilities within its home country and transfers products for sale in foreign countries.
true
A multinational corporation is managed as an integrated worldwide business system.
Individualism
A preference for a loosely knit social framework in which individuals are expected to take care of themselves.
Collectivism
A preference for a tightly knit social framework in which individuals look after one another and organizations protect their members' interests.
achievement culture
A results-oriented culture that values competitiveness, personal initiative, and achievement.
political instability
Events such as riots, revolutions, or government upheavals that can affect the operations of an international company.
natural dimension
Includes all elements that occur naturally on Earth, including plants, animals, rocks, and natural resources such as air, water, and climate.
a) exporting
Many companies first get involved internationally by using which of the following approaches? a. Exporting b. Offshoring c. Joint venture d. Acquisition e. Outsourcing
d) slogan
McDonald's "I'm lovin' it" is an example of a: a. ceremony. b. symbol. c. ritual. d. slogan. e. political activity.
True
McDonalds, Burger King, and Taco Bell are competitors since all three sell fast food to individuals.
involvement culture
a culture that places high value on meeting the needs of employees and values cooperation and equality
false
Partnerships represent a lower level of involvement in international trade than does exporting and outsourcing.
consistency culture
values and rewards a methodical, rational, orderly way of doing things