Chapter 1: Globalization Part 2

One ___________________________ is the ability to preempt rivals and capture demand by establishing a strong brand name.

first mover advantage

norms can be subdivided into

folkways and mores

If consumers in different countries desire different product attributes, it would be best to engage in __________.

foreign direct investment

NAFTA, type of economic integration and member companies

free trade area #1 US, Canada, Mexico

two examples of values

freedom role of women

The Treaty of Maastricht and the Treaty of Lisbon were indications of ____ within the European Union.

a greater political union

BOP transaction in a capital account

a Honduran worker leaves his temporary job in the US and returns home w/ 6 months of wages

If a firm is entering a country where there are no incumbent competitors, ______________________ is preferred.

a greenfield venture

The big advantage of _____________________________ is that it gives the firm a much greater ability to create the kind of organizational culture and operations it wants.

a greenfield venture in a foreign country

MERCOSUR, type of economic integration and member companies

striving to be Customs Union Argentina, Brazil, Uruguay, Paraguay, Venezuela

Which of the following is less likely to add to the pressure for a firm to be locally responsive?

switching costs for consumers

BOP transaction in a current account

-U.S consumers purchase Japanese autos -Insurance services from a private U.S firm are contracted out to an Italian contractor -a French company pays dividends to a U.S citizens who owns share in its stock

Examples of control systems

-bureaucracy -predetermined goals and output -culture -personal interactions

Examples of incentives

-cooperation between managers -national differences -unintended consequences -employees and tasks

Pressures for Local Responsiveness

-differences in preferences -differences in infrastructure -distribution channels -host government demands

Pressures for cost reduction

-experience curve -universal needs -outsourcing -optimal location

The Falses about exporting

-exporters account for a large percentage of U.S. firms' sales -many foreign customers do not necessarily require face-to-face negotiation when conduction business

Balance of Payment: Current Account (3 transactions involved)

-goods that refer to the import and export of physical goods -services that are intangible products such as banking and insurance services -income receipts and payments that refer to income from foreign investments and payments made to foreigners investing in a country

Host country benefit of FDI

-increase in direct and indirect employment -transfer of new technology -substitute for imports

Economic arguments for intervention

-infant industry argument -promote investment inflows -essential industry argument -import substitution

Host country cost of FDI

-loss of economic independence -loss of local entrepreneurship -outflow of earnings from a foreign subsidiary

Home country cost of FDI

-loss of jobs -host country limits of profit expatriation

What is the key aspect of Christianity

"Son of God"

example of antidumping policies

EU imposes specific tariff on very low-priced steel imports

The direct exchange of goods and/or services between two parties without a cash transaction refers to

barter

Example of decision-making process

considerations

_____ help establish the culture of an organization and set the example that others follow.

leaders

values involve ___ to be established

norms

Which of the following is a cost associated with the timing of entry?

pioneering costs

Tariffs fall into two categories:

specific and ad valorem

FDI: benefit related to FDI

tight control

Which of the following best describes Toyota's new structure?

worldwide area

The truths about exporting

-many novice exporters underestimate the time and expertise needed to cultivate business in foreign countries -many small and medium sized firms are reactive towards exporting -by expanding the size of the market, exporting can enable firms to achieve economies of scale -large revenues and profit opportunities abound in foreign markets for most firms in most industries

Political arguments for intervention

-protecting jobs -national security -protecting customers -protecting the environment

Home country benefit of FDI

-skills that can be leveraged internationally -inflows of foreign earnings

BOP transaction in a financial account

-the Chinese government invests in 3-month U.S treasury bills -the U.S government purchases U.K government bonds

Milestone of GATT: Superseded by the WTO, its membership grew from 19 to more than 120 nations.

1947 entity set up to liberalize trade

Timeline of how the European Union came to be

1951: European Coal & Steel Community formed 1957: Treaty of Rome establishes EC that aimed to turn the customs union into a general market 1973: Great Britain, Ireland, Denmark join EC. This was the first of several enlargements, which became a policy area of the Union 1987: Single European Act in effect. Abolished a host of areas relating to a single market 1993: EC becomes the European Union following the ratification of the Maastricht Treaty 1995: Austria, Finland, and Sweden join EU 2007: Bulgaria and Romania join EU. Total # of member states is 27

Milestone of Tokyo Round: The average tariff declined by nearly 92 percent in the United States between the Geneva Round of 1947 and this round of 1973-79.

1970s GATT trade negotiations

How long did the formal investigation of Crime-ler take?

8 years

Which of the following statements is true about caste system?

A caste system is a rigid form of social stratification.

Which of the following exemplifies privatization?

A country sells its postal services to a consortium of companies that runs it as a profit making venture without any state funding

Which of the following is a disadvantage that a firm faces when forming a strategic alliance?

A firm can give away more than it receives when forming an alliance.

Which of the following is an advantage of turnkey contracts?

Ability to earn returns from process technology skills in countries where FDI is restricted

Which of the following is considered a first-mover advantage?

Ability to preempt rivals and capture demand.

Using your knowledge of New Trade Theory, which statement best explains the advantage Airbus has in the production and export of super large capacity aircraft?

Airbus has been able to capture scale economies that make it difficult for later entrants to match.

New Trade Theory would suggest that Boeing has stayed out of head-to-head competition with Airbus in the super large capacity aircraft sector because

Airbus was first to market with the Airbus 380 aircraft.

According to the findings of the World Values Survey

As countries get richer, there seems to be a shift from survival values to well-being values.

REI: Andean Community (description/members)

Based on EU model but w/ little success Bolivia, Chile, Ecuador, Columbia, and Peru

Which of the following best explains why some think the European Union would be better off without Britain?

Britain has been seen as taking a "me first" approach rather than a "what's best for the whole" approach

Milestone of Corn Laws : These laws are often viewed as examples of British mercantilism and their abolition marked a significant step toward free trade.

British placed tariff on imported corn

Example of leadership

CEO

What is the most widely practiced religion in the world?

Christianity

Andean Community, type of economic integration and member companies

Customs Union Columbia, Peru, Bolivia, Ecuador

Bangladesh has a comparative advantage in textile production due to its low labor cost. The idea of comparative advantage was proposed by _____.

David Ricardo

What is the key aspect of Hinduism

Dharma

example of subsidaries

EU payments to European farmers

Why did Toyota create one division for mature markets and one division for emerging markets?

Each division can better respond to the needs of each target market.

Example of unrealistic performance expectations

Eliminates: company X has an evaluation system in place that eliminates 20% of underperformers every six months

Which of the following does global expansion allow firms to achieve?

Expand the market for their domestic product offerings by selling those products in international markets.

Entry Mode and related element: Turnkey Contracts

FDI and foreign country

The act that outlaws paying of bribes to foreign government officials to gain business is known as _____.

Foreign Corrupt Practices Act

Scenarios relating to the new world order and terrorism

Fukuyama Huntington

1919-1933: This theory predicts that countries will export those goods that make intensive use of factors that are locally abundant and import goods that make intensive use of factors that are locally scarce.

Heckscher-Ohlin theory

Which of the following is true about planned economies?

In a planned economy, the state owns all means of production

two examples of folkways

Japanese business etiquette time orientation

According to Hecksher-Ohlin Theory, which of the following gives Bangladesh a cost advantage?

Labor-intensive production

Which of the following is a disadvantage of a high degree of managerial mobility between companies?

Lack of loyalty and commitment to an individual company

circa 1550s: This theory had countries maximizing exports and minimizing imports.

Mercantilism

Which of the following is a huge barrier to exporting for small and medium-sized firms?

Not knowing how big and where the opportunities are for exporting.

REI: FTAA (description/members)

Overall impact was small but positive 34 nations represented

What is the key aspect of Islam

Pilgrimage to Mecca

EU, type of economic integration and member companies

Political Union includes France and Germany

What is the pragmatic nationalism view and who views it

Pragmatic nationalism views FDI as having both benefits and costs and is in the middle of the other two extreme viewpoints. -profits -Japan -tax subsidiaries

Which of the following is a disadvantage of establishing a greenfield venture?

The degree of uncertainty is associated with future revenue is more in greenfield ventures.

For decades, there have been just two producers of large commercial aircraft, Boeing and Airbus. Which statement best explains how new trade theory views this situation from a manufacturing perspective?

The economies of scale required to be a profitable manufacturer effectively limit the size of the global market.

Which of the following aspects of Protestantism paved the way for the subsequent emphasis on individual economic and political freedoms?

The emphasis on individual religious freedom.

Using your knowledge of New Trade Theory, choose the reason why Boeing has not challenged Airbus for market share in the super large capacity aircraft sector.

The global market is not big enough to support multiple producers of this type of aircraft.

Aircraft like the Airbus 380 and Boeing 747 are cost efficient only on long haul flights that are relatively heavily traveled. According to New Trade Theory, which statement is true?

The market for large jet aircraft is limited to those airlines providing long haul flights in highly traveled routes.

Which of the following statements is true about the righteous moralist approach to ethics?

The righteous moralist approach is typically associated with managers from developed nations.

What fundamental element of a political union is the European Union missing by Britain's decision to opt out of provisions such as the E.U. Charter of Fundamental Rights, the Schengen Agreement, and the Eurozone?

The willingness of countries to give up sovereignty for the benefit of all.

Many of the national markets of Eastern Europe, Latin America, Africa, and Asia may still be underdeveloped, but they are potentially enormous. Which of the following is a risk to businesses moving into these regions?

There is no guarantee that democracy will thrive in many of the world's newer democratic states.

Which of the following is a reason for the spread of democracy?

Totalitarian regimes failing to deliver economic progress to the vast bulk of their populations

What does Toyota's single division focused on parts and vehicle development suggest?

Toyota is trying to standardize vehicles and parts across markets.

Milestone of Smoot-Hawley Act: A 1930 law aimed at avoiding rising unemployment by protecting domestic industries and diverting consumer demand away from foreign producers.

U.S tariff for almost every industry

example of voluntary export restraints

U.S. asks Peru to restrict sugar exports to U.S.

example of ad valorem tariff

U.S. imposes 2.5% tariff on imported watches

example of a specific tariff

U.S. levies a $1 tariff on imported watches

example of import quotas

U.S. restricts the number of imported video games

Since World War II, the largest source country for FDI has been

USA

REI: MERCOSUR (description/members)

Work in progress originally Brazil and Argentina

What is the key aspect of Buddhism

a path for transformation

Indulgence refers to

a society that allows relatively free gratification of basic and natural human drives related to enjoying life and having fun

1776: Adam Smith states that countries should specialize in the production of goods for which they can produce most efficiently and then trade these for goods produced by other countries

absolute advantage theory

Values are

abstract ideas about what a group believes to be good, right, and desirable.

Entry Mode: Joint Venture (advantages/disadvantages)

access to local enterprise battles for control

Which of the following is an advantage of acquisitions compared to greenfield ventures?

acquisitions are quick to execute

The government of Bangladesh has not invested in infrastructure. According to Michael Porter, infrastructure is an example of a(n) _____ factor of endowment.

advanced

The Foreign Corrupt Practices Act was amended to

allow for "facilitating payments"

Which of the following accurately describes the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions?

allows facilitating payments

Which of the following is an accurate depiction of facilitating payments?

also known as speed money

The difference between the flow and the stock of FDI is the ___________ FDI.

amount vs. total

An American executive of a multinational home-furnishings chain finds that one of the company's production units in Philippines employs children to work in its factories. However, most of the children employed at the factory are orphans who will be sold as forced labor or pushed into prostitution, if they lose their jobs. The executive finds that all the available alternatives seem ethically unacceptable. In this example, the American executive faces

an ethical dilemma

The practice of "gift-giving" between the parties to a business negotiation is considered right and proper behavior in many Asian cultures, while some Westerners view the practice as a form of bribery. What is this an example of?

an ethical dilemma

Many acquisitions fail because _____________

anticipated synergies run into roadblocks and take longer to realize than planned

Organization Architecture: Incentives and Controls (element / strategic challenge)

appropriate rewards what to measure

Components of organization to maximize a firm

architecture structure

What aspect of management is: if I told someone I respect - or a television audience - which option I have chosen, what would they say? Would this warrent a change in my decision?

audit decisions

The _____ shows all of the different positions a firm can adopt with regard to adding value to the product and low cost assuming the firm's internal operations are configured efficiently to support a particular position.

efficiency frontier

Deflation occurs when consumers expect prices to _____.

be lower tomorrow than today

With regards to exporting, studies have shown that unlike big firms, small and medium-sized firms tend to ____________

be reactive and wait for opportunities to come to them

What is the free market view towards FDI and who views it

believes in considering resource costs globally when it comes to investing in foreign countries -benefits -lower wages -comparative advantage

Mall-Mart's goal was to use ____________ from its successful U.S. stores to boost Shoppu's performance.

best practices

Forming a strategic alliance is a way to

bring together complementary skills

By acquiring an established enterprise, a firm can rapidly ____________

build its presence in a foreign market

Small-scale entry gives the firm time to collect information, but it may make it more difficult for the firm to __________

build market share or capture first-mover advantages

_____ are the accepted principles of right or wrong governing the conduct of businesspeople.

business ethics

In Samuel Huntington's thesis, global terrorism is a product of the _____.

clash of value systems and ideology

1817: David Ricardo states that it makes sense for a country to specialize in the production of those goods that it produces most efficiently and to buy the goods that it produces less efficiently from other countries.

comparative advantage theory

Entry Mode: Exporting (advantages/disadvantages)

cost avoidance lower costs lost

Entry Mode and related element: Franchising

costs, risks, and profits

One reason the Japanese government, like any other government, would provide incentives for inward FDI is because of the resource-transfer and ____________ effects of FDI.

employment

Innovation and entrepreneurial activity help increase economic activity by

creating new products and markets

What is the concept of understanding how cultural differences across and within nations can affect the way business is conducted?

cross-cultural literacy

The Japanese government has tried to stimulate the economy by _____.

cutting interest rates to zero

Organization Architecture: Structure (element / strategic challenge)

decision making responsive mechanisms

Japan and other market-based economies enjoy economic growth, but also face greater risks due to _____.

deregulation

Scenarios relating to the spread of market-based systems

deregulation privatization legal system protecting property rights

Entry Mode and related element: Licensing

development cost and operational strategy

example of administrative policies

drug unapproved by FDA is banned in the U.S.

While the present wealth of customers in a national market is an important factor, the firm must also consider living standards and ______________

economic growth

What aspect of management is: peer group members, supervisors, and organizational culture may influence individuals to act in ways that are inconsistent with their own moral judgements and behavioral intentions, therefore individuals do not always behave consistently

engage in ethical behavior

What aspect of management is: the individual decides what he/she will do in regard to the perceived ethical dilemma

establish moral intent

This refers to a set of moral principles, or values, that are used to guide and shape behavior.

ethical system

The belief in the superiority of one's own culture is known as

ethnocentrism.

If your household goods can be efficiently produced through economies of scale, it would be a good idea to use a(n) _______ strategy.

exporting

The effect of bulky or heavy products on transportation costs can make _______ an inappropriate strategy.

exporting

If your proprietary know-how of "green" processes is difficult to transfer to other firms, the most effective approach would be _______________.

exporting or foreign direct investment

Entrepreneurs and business-owners of high uncertainty avoidance cultures will be more willing to take risks and make changes.

false

People who violate folkways are considered to be evil or bad.

false

The value systems and norms of a country have little influence on the costs of doing business in that country.

false

Which factor helps Bangladesh's goods stay competitive when compared to goods from China?

fear of relying on single country

Exporting Issues: Limited Staff Expertise (business issue/challenge and response/practice)

few staff resources export management companies

Exporting Issues: Export Assistance (business issue/challenge and response/practice)

financing needs Ex-Im Bank

ASEAN, type of economic integration and member companies

free trade area #2 includes Cambodia and Singapore

As economies move toward greater privatization, there is a greater likelihood of facing the phenomenon that Japan faced due to the stock market collapse. Privatization transfers assets _____.

from state to private owners

Example of personal ethics

gift-giving

Sequence for Exporting

goods ordered importer secures L/C goods shipped exporter receives bill of lading exporter presents papers to bank banks interact exporter sells draft importer pays his bank

One reason FDI has been historically low in Japan is because of the Japanese

government regulations

FDI: drawback related to FDI

high set-up costs

FDI: drawback related to exporting

high transportation costs

Because of the reduction of tariff barriers under GATT and WTO, the GDP of the United States since 1947 has been

higher

One way for first-time exporters to identify the opportunities in exporting and to avoid many of the associated pitfalls is to _______________

hire an export management company

Entry Mode and related element: Joint Ventures

host country and controls

What is the radical view towards FDI and who views it

hostile and -socialist countries -communist countries -Iran

Organization Architecture: Processes (element / strategic challenge)

how work is performed cross-border differences

What aspect of management is: when considering outsourcing to subcontractors, managers might need to ask themselves how it might feel to be working under substandard health conditions after long hours

identify stakeholder's decisions

Exporting Issues: Information Needs (business issue/challenge and response/practice)

identifying international market opportunities SBA/Commerce Dept.

Given what you know about countertrade from your text along with the information provided in the case above, identify which situation is most likely to be present in Greece.

increasing levels of countertrade activities involving Greek firms

Geert Hofstede's, what cultural value does this match? Ben has very loose ties with his family and enjoys wearing provocative t-shirts to express a sense of freedom and uniqueness. He shows no interest in joining the family business

individualism / collectivism

A firm facing low pressures for local responsiveness and few pressures to contain costs might best pursue a(n) ___________________

international strategy

What aspect of management is: the right to know about potentially dangerous features of a product is a fundamental entitlement of customers

judge the ethics of strategic decisions

Organization Architecture: Culture (element / strategic challenge)

just like societies dynamic but enduring

Exporting Issues: Financing International Trade (business issue/challenge and response/practice)

lack of trust letters of credit

Pressures for local responsiveness may make it difficult to ______________________________.

leverage skills and products associated with a firm's core competencies from one country to another

If a firm's know-how, skills, and capabilities can be protected by contract, and if tight control over foreign operations is not vital to remain competitive, and there are reasons to believe that additional costs through transportation or tariffs would be high, the most effective approach would be _______________.

licensing

A _____ is an arrangement whereby one party grants the rights to intangible property to another party for a specified period, and in return receives a royalty fee.

licensing agreement

_________________________is the most appropriate strategy when there are substantial differences across nations with regard to consumer tastes and preferences, and where cost pressures are not too intense.

localization strategy

FDI: benefit related to exporting

location economies

FDI: drawback related to licensing

lose control over manufacturing

One of the drawbacks to universal free trade in the United States mentioned in the video was

loss of employment

The major cause of the economic problems that Japan faces is the _____.

low birth rate and more retired

Entry Mode: Licensing (advantages/disadvantages)

low capital requirement lost economies

Components of strategy to maximize a firm

low cost differentiation

FDI: benefit related to licensing

low development cost risks

Firms usually respond to pressures for cost reduction by trying to

lower the costs of value creation

Entry Mode and related element: Exporting

manufacturing and transportation costs

Geert Hofstede's, what cultural value does this match? Jiro is extremely driven and assertive. His goal is to become the most powerful man in the company

masculinity/femininity

The _____ program organized by the Department of Commerce provides representatives who accompany groups of U.S. businesses abroad to meet with qualified agents, distributors, and customers.

matchmaker

Milestone of WTO: Between 1995 and early 2010 more than 400 trade disputes between member countries were brought before this organization.

members account for 97% of world trade

1990: Michael Porter contends that the degree to which a nation is likely to achieve international success in a certain industry is a function of the combined impact of factor endowments.

national competitive advantage theory

1980s: Through its impact on economies of scale, trade can increase the variety of goods available to consumers while decreasing the average cost of those goods.

new trade theory

Based on what you know from the case above, what type of organizational culture is Toyota striving for as a result of its reorganization?

nimble and responsive

Exporting Issues: Limited Payment Options (business issue/challenge and response/practice)

nonconvertibilrty countertrade

What term can be used to describe Toyota's formal organizational structure, its people, its nimble and responsive culture, and its control systems and processes?

organizational architecture

Markets are dynamic, and any firm will face competition. In time, international and localization strategies tend to become less viable, and managers need to ______________________

orient their companies toward either a global standardization or transnational strategy

If the European Union can avoid Brexit and move forward, it can best be characterized as being at which level of economic integration?

political union

The banking union and harmonized tax rules that have been adopted by Eurozone members are indicators of which level of economic integration?

political union

Geert Hofstede's, what cultural value does this match? Ming is from a powerful family, and because of this, she will be in an authoritative position in the workplace

power distance

When the Japanese government realized it needed more foreign investment, though that would have both benefits and costs, it was adopting the __________ view of FDI.

pragmatic nationalism

Firms will make acquisitions to _______________________, which is particularly important in markets that are rapidly globalizing.

preempt competitors

Components of operations to maximize a firm

primary activities support activities

mid 1960s: This theory, initially proposed by Raymond Vernon, points out that where a new product is introduced is important. Over time, cost considerations start playing a greater role in the competitive process.

product life-cycle theory

Entry Mode: Turnkey Project (advantages/disadvantages)

profit from processes little future revenue

Which of the following is a pioneering cost?

promoting and establishing a product offering

REI: CAFTA (description/members)

proposed common market 5 Central American nations plus the Dominican Republic and the U.S.

United Nations has developed the Human Development Index (HDI) to measure the

quality of human life in different nations

Strategic commitments, like ___________________, can have an important influence on the nature of competition.

rapid large-scale market entry

Organization Architecture: People (element / strategic challenge)

recruitment and retention choosing the right policies

One conclusion that can be drawn regarding import tariffs is that they

reduce overall efficiency

Bangladesh's textile industry relies on inputs from other industries within the country. This supports which one of Michael Porter's attributes when it comes to competitive advantage?

related and supporting industries

An economic argument put forth for speed money is that it _____.

removes beuracracy

In the case of command economies, deregulation involves _____.

removing price controls

Free trade refers to a situation in which a government does not attempt to

restrict imports and exports

Entry Mode and related element: Wholly owned subsidiaries

risks and capital investments

Organization structures (least sophisticated to most sophisticated)

small business domestic structure international division worldwide area structure worldwide product division structure global matrix structure

example of local content requirements

specific percent of television imports must be produced domestically

A tariff levied as a fixed charge for each unit of a good imported is called

specific tariff

The benefit-cost-risk trade-off is likely to be least favorable in developing nations that operate with a mixed or command economy or where ____________

speculative financial bubbles have led to excess borrowing

REI: NAFTA (description/members)

started well then slumped but hopes for revival US, Canada, Mexico

General Motors' stand against apartheid in South Africa was based upon what came to be known as _____.

the Sullivan principles

For U.S. firms, the most comprehensive source of information on export opportunities is _______

the US Department of Commerce

It has been argued that the success of Japanese enterprises in the global economy has been based partly on which of the following

the cooperation between a company and its suppliers on issues such as design, quality control, and inventory reduction.

Why has barter become a popular mechanism for exchange in Greece?

the country has a liquidity problem

Incentives

the devices used to reward appropriate behavior and should be very closely tied to the performance metrics developed in the control systems.

The increase in the use of barter in Greece has been prompted by ____

the imposition of capital controls

Hofstede's masculinity versus femininity dimension examined

the relationship between gender and work roles

Folkways are

the routine conventions of everyday life

In 1989 Japan was an economic superpower; it was _____.

the second-largest economy

Organization Architecture

the totality of a firm's organization, including formal organizational structure, control systems and incentives, organizational culture, processes, and people

Firms often expand internationally to earn greater returns from

their core competencies

Newly privatized entities often have little incentive to restructure their operations to become more efficient when

they continue to receive subsidies from the state.

Entry Mode: Wholly-Owned Subsidiary (advantages/disadvantages)

tight control most costly method

Geert Hofstede's, what cultural value does this match?Bill works very hard in his job, and expects to see the reward of his labor quickly

time orientation

Scenarios relating to the spread of democracy

totalitarianism failure new information technologies emergence of middle and working classes

Milestone of Uruguay Round: 1986-1993 trade negotiations led to reduced tariffs on industrial goods, reduced agricultural subsidies, and more protection for intellectual property rights, etc.

toughest GATT meetings to reduce tariffs

__________________________ is the most appropriate strategy when the firm simultaneously faces strong pressures for both cost reductions and local responsiveness.

trasnational strategy

A mudarabah contract of Islamic banks is similar to a profit-sharing scheme.

true

Hofstede's power distance dimension focused on how a society deals with the fact that people are unequal in physical and intellectual capabilities.

true

Most of the world's ethical systems are the product of religions.

true

One of the biggest dangers confronting a company that goes abroad for the first time is the danger of being ill-informed.

true

Geert Hofstede's, what cultural value does this match? Elena has worked at the same company for more than 15 years, she parks in the same parking spot every day and values routine and predictability

uncertainty avoidance

two examples of mores

use of alcohol theft

Control Systems

used to measure performance, typically of subunits, and then using those objective measurements to make judgments about the performance of the subunits.

Example of organizational culture

values

As a philosophy for business ethics, utilitarianism focuses attention on the need to

weigh carefully all of the social benefits and costs of a business action.