intro to business 2
If a technological innovation follows the typical S-curve pattern of innovation, which of the following will indicate that small amounts of effort, in terms of money or research and development, will lead to significant increase in technological performance?
A steeper slope at the midpoint of the curve
is used to assess how well managers and their families are likely to adjust to foreign cultures.
Adaptability screening
Touchstone Hardware was a popular company that specialized in making floppy disks. At the start of the 21st century, when people began switching to CDs and DVDs to store their information, it was brought to the notice of senior managers that the company needed to switch its focus to the production of new storage devices. However, the managers did not feel it was important to make this switch. They dismissed CDs and DVDs as just a passing phase. Which of the following stages of organizational decline best illustrates the current situation of the company?
Blinded stage
Which of the following methods for managing resistance to change should only be used as a last resort or under crisis conditions?
Coercion
Over the long run, which of the following is the best way for a company to sustain competitive advantage?
Creating innovation streams
Which of the following is an aspect of the experiential approach to innovation?
Design iteration
When Fletcher Motors, an automobile manufacturer, learned that it took longer than any other manufacturer to assemble a vehicle, it purchased existing flexible manufacturing systems to replace its older ones. Which stage of the technology cycle is illustrated in the scenario?
Discontinuous change
When resistance to change is based on insufficient, incorrect, or misleading information, which of the following is the best approach that a manager can use to manage resistance to change?
Education and communication
In the context of the experiential approach to innovation, which of the following is true of design iteration?
Frequent design iterations improve understanding.
Portrance's iX processor is the latest installment in the Portrance microprocessor product line. It is fully backward compatible with the earlier versions of the microprocessor. Which of the following terms best describes this dominance of Portrance's new iX processor over its older versions?
Generational change
Which of the following best exemplifies the process of exporting?
Globulus, a U.S.-based toy manufacturing company, selling its toys in the U.S., Germany, and France
Damien Richard is the CEO of QuickShop, a chain of supermarkets. QuickShop is soon going to employ the latest technology, which will help customers reduce their shopping time by an ask-and-get approach. In this approach, a customer has to just name the product, and the robots will bring it to them. QuickShop's employees are worried about losing their jobs if this technology is employed. On speaking to several of the employees, Damien finds that many of them have misguided opinions about the implementation of the technology, causing them to have insecurities. What should Damien do to help them adapt to the change more easily
He must educate his employees about the need for the change and explain its benefits to them before employing it
Which of the following is true of individualism?
In individualistic societies, people are more likely to place importance on traditional norms and values rather than personal choices.
Which of the following statements is true about the compression approach to managing innovation?
It aims at consistent improvement of existing designs.
In terms of change tools and techniques, which of the following is true of organizational development?
It emphasizes employee participation in diagnosing, solving, and evaluating problems.
In the context of regional trading zones, identify a true statement about the Tripartite Free Trade Area (TFTA).
Its ultimate goal is to create a free trade area across all fifty-four African Union states by 2017.
A company following a policy of _____ modifies its standard operating procedures to adjust to differences in foreign customers, governments, and regulatory agencies.
Local adaptation
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.
Which of the following is true of global new ventures?
New global ventures bring a product or service to market in several foreign markets at the same time.
is the successful implementation of creative ideas in organizations.
Organizational innovation
Which of the following occurs in the adoption stage of organizational development interventions?
Organizational members accept ownership and responsibility for the change, which is then carried out through the entire organization.
Which of the following is an aspect of the compression approach to innovation?
Planning
In an organization, which of the following acts as a hindrance to a creative work environment?
Presence of internal conflict
Which of the following factors causes resistance to change?
Self-interest
Which of the following factors is a quantitative factor that should be considered while selecting an office location or a manufacturing location in a foreign country?
Tariff and non-tariff barriers
Who among the following can be considered expatriates?
The American employees of a company based in Washington who are transferred to Japan for a special assignment
Tossle Tools, a tool manufacturing firm based in the U.S., operates tool manufacturing plants in Mexico, Peru, Portugal, and Spain. The company is the sole owner of the plants and has complete control over different segments of the plants. Which of the following methods for conducting global business has Tossle Tools used in this scenario?
The formation of wholly owned affiliates
Primo Cars is a U.S.-based automaker. It is planning to introduce a new premium car in Germany, Italy, Mexico, and Switzerland. The company is not sure if its car will be successful in these diverse markets and it is concerned about its growth. It can afford to launch the product in only three countries. Which of the following factors should the company consider to determine the growth potential of these three countries?
The level of purchasing power
Which of the following statements is true of a licensing agreement?
The licensor gives up control over the quality of the product sold by the foreign licensee.
Which of the following is an advantage of wholly owned affiliates?
The parent company receives all of the profits and has complete control over its foreign units.
Which of the following is the most important factor in an attractive business environment?
The presence of well-established markets
According to Hofstede, which of the following is true of masculine cultures?
They emphasize quality of life.
are government-imposed regulations that increase the cost and restrict the number of imported goods.
Trade barriers
Which of the following is true of a joint venture?
Two existing companies collaborate to form a third company, with both the companies remaining intact and unchanged
Which of the following is a difference between wholly owned affiliates and joint ventures?
Unlike joint ventures, wholly owned affiliates are 100 percent owned by their parent company.
Which of the following is a nontariff trade barrier where the exporting country limits the amount of a product that can be exported annually
Voluntary export restraints
Jilzen Corp., a U.S.-based company, plans to open a branch in China by sending its American employees to China. Before doing so, the company educates its employees about China with the help of photos, audios, videos, etc. to present real-world situations. While preparing for an international assignment, this type of training would be given to employees during _____.
a. cultural simulation
If a technological innovation follows the S-curve pattern of innovation, a flat slope at the beginning of the curve indicates that:
an increased effort can bring only small improvements in its performance.
There are eight general steps for organizational development interventions. The third step is _____.
assessment and feedback
A(n) _____ is one of the several strategies that can be used to minimize or adapt to the political risk inherent in global business.
avoidance strategy
An individual who is formally in charge of guiding a change effort in an organization is referred to as a _____.
change agent
Mark was the person who was in charge of the plan to reinvent Supernova Automobiles. He played a major role in the company making a shift to building solar-powered automobiles from making regular fuel-powered cars. After the change intervention gave satisfactory results, Mark left the project and started working on another project. In the context of organizational development, Mark is a(n) _____.
change agent
Policy uncertainty is associated with:
changes in law
In terms of change tools and techniques, the General Electric workout is a special kind of _____.
coercion-driven change
The _____ assumes that innovation is a predictable process that can be planned using a series of steps and reducing the time it takes to complete those steps can speed up the innovation process.
compression approach to managing innovation
While choosing an office or a manufacturing location, a firm should:
consider both qualitative and quantitative factors.
A firm using a(n) _____ to prevent or reduce political risks will lobby foreign governments or international trade agencies to change laws, regulations, or trade barriers that hurt its business in that country.
control strategy
Beamlines is allowing Dans Rail, a foreign rail company, to set up railway lines in its country as there is a shortage of iron and the import price of iron is also extremely high. In return, Beamlines has agreed to sign a contract that agrees to pay Dans Rail a fee for every railway line that Beamlines sets up in the country. This scenario is an example of _____.
cooperative contract
A(n) _____ is implemented by firms to minimize or adapt to the political risk inherent in global business by using joint ventures and collaborative contracts.
cooperative strategy
Levio is a company that develops mobile applications. It aims to become the market leader in its field. Levio focuses on developing a culture where workers are made to feel that new ideas are welcome. It plans to do this by offering challenging work and supervisory encouragement to its workers. In this scenario, the company is attempting to develop a(n) _____.
creative work environment
Discontinuous change is characterized by _____, in which an old technology and several different new technologies compete to establish a new technological standard or dominant design.
design competition
Before TREX Mobiles launched its latest smartphone, it built a prototype of the phone and tested its performance repeatedly, improving the model each time. In the context of the experiential approach to innovation, this process is called _____.
design iteration
Joe & Chloe is a U.S.-based fast food company. It wants to open a branch in Japan. In the process of learning the cultural differences between the countries, the company managers discovered that, unlike Americans, Japanese employees prefer a more structured management and preferred following a routine work schedule. The company most likely would have discovered this cultural difference during _____.
documentary training
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 at the _____.
end of the technology cycle
Zinocorp Inc., a multinational firm with headquarters in Asia, wants to open new divisions in Germany and the Netherlands. The company wants the new divisions to follow the same set of rules and regulations that the parent company follows. It is evident from the scenario that Zinocorp Inc. wants to:
establish global consistency.
The _____ assumes that innovation is occurring within a highly uncertain environment.
experiential approach to innovation
According to the phase model of globalization, the first step for a domestic company transitioning into a global company is:
exporting goods
Xamber Tools, a metal tool manufacturing firm, is facing a threat of organizational decline due to the rising costs of raw materials, decreasing profits and lower market share. To fix these problems, the management decides to cut costs of production to increase efficiency and profit. The cost cut does not help the company, and the company eventually files for bankruptcy. In this scenario, Xamber Tools is most likely in the _____ of organizational decline.
faulty action stage
For an initial fee plus royalties, Flamingo Inc., a U.S.-based firm, will provide Capside Textiles, a firm based in Ukraine, with training, marketing and advertising assistance, and exclusive rights to conduct Flamingo's business in Ukraine. This form of global business is an example of a _____.
franchise
Wudwork Ventures was created by a company specifically with the goal of engaging in investment trading in countries across the world. Rather than going global one country at a time, Wudwork plans to bring its services to market in several foreign markets at the same time. Wudwork is an example of a _____.
global new venture
In the context of cross-cultural training, documentary training focuses on:
identifying specific critical differences between cultures.
A particular technology becomes the dominant design because of critical mass, which means that:
it is used by most people.
A technology is most likely to become a dominant design if:
it solves a practical problem
Medzone Inc., a pharmacy company, has collaborated with Bit Corp., a food manufacturing company, to come up with a third company, MedBit Inc. This new company manufactures nutritious food and snacks with added vitamins and minerals. In this context, MedBit Inc. is a _____.
joint venture
is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country.
national culture
Garrison Motors Inc. developed a creative manufacturing technique that helps improve the efficiency of their production. It allows the company to produce more than one type of car from the same assembly line. In this scenario, the development of a new technique by Garrison Motors to improve its workflow efficiency is an example of _____.
organizational innovation
The government of Aquardica recently passed a law requiring any foreign company that wants to do business in its country to take back 60 percent of the revenue it is earning, and investing the remaining 40 percent back into the country. As a result, many foreign companies are rethinking their strategy to expand into Aquardica. This is a type of _____ faced by companies that want to conduct business in Aquardica.
policy uncertaincy
Moondust Inc. is expanding its global operations into South Fordland in spite of the frequent changes in its government due to the assassinations of its prominent leaders. In this scenario, as Moondust Inc. expands into South Fordland, it must deal with _____.
political uncertainty
is the extent to which people in a country accept that power is distributed unequally in society and organizations.
power distance
Dynamics Inc. is a company that specializes in household appliances. It is currently working on creating a new geyser that can heat water in less than five minutes. The company has developed a working model that is being tested for design, function, and reliability. In terms of the experiential approach to innovation, this working model is called a _____.
product prototype
Managing global joint ventures becomes difficult because they:
represent a merging of different cultures of the two companies.
In the context of managing change, _____ support the status quo of an organization.
resistance forces
Feldman Films is a company associated with photography, and has been in business for the last 30 years. The invention and development of the digital camera forced Feldman Films to start thinking fresh. Feldman Films applied design thinking to strategy and innovation in response to the competitive threat from the digital camera. In this scenario, the development of the digital camera was a _____.
technological discontinuity
During the last decade, as people sought to replace their obsolete floppy discs, there was an increase in sales in CDs, DVDs, pen drives, and portable hard discs. The replacement of floppy discs by other advanced storage devices is an example of _____.
technological substitution
Studies of hundreds of technological innovations have shown that nearly all technology cycles follow _____.
the S-curve pattern of innovation
According to Hofstede, which of the following is true of feminine cultures?
they emphasize modesty
When Red Arc Enterprises, a shipping company, was merged with a larger shipping company, there was a strong resistance to change among the employees of Red Arc. When the CEO of Red Arc got to know of this, he met everyone and explained why the change was necessary and how it could serve to benefit everyone. According to Kurt Lewin, Red Arc is in the _____ stage of managing organizational change.
unfreezing
The three steps in the basic process of managing organizational change outlined by Kurt Lewin are:
unfreezing, change intervention, and refreezing
If a company leans too much toward global consistency, it runs the risk of:
using management procedures poorly suited to particular countries' markets, cultures and employees.