MANA3335 MindTap Assignment: Chapter 02: The Environments of Organizations and Managers

Beginning to deploy deep-sea submersibles to view the oil leak and drilling infrastructure a mile beneath the ocean's surface

*Technological {This was a novel use of deep-sea submersible technology, one that would have a significant impact on underwater drilling across the industry}

Increased power and functionality of tablet computers

*General environment {Increased power and functionality of table computers affects entire industries, not just individual companies}

Increased regulation of banks and mortgage lenders regarding the loans they issue

*General environment {When politicians regulate banks and mortgage lenders, it affects the whole banking industry, not just a single bank}

Disney invested approximately $4 billion to construct a Disney theme park and resort near Shanghai, China. What considerations were important to Disney in choosing its approach to international business? Check all that apply.

*High willingness to accept risk *High degree of control over operations {Disney made a direct investment in China. Although the risk and cost are higher, this approach allowed Disney access to the Chinese market while maintaining control. The Disney brand is very valuable, so it makes sense that Disney would want to ensure control over all aspects of the business}

The increasing number of elderly people in the United States, Japan, Italy, and Germany

*General environment {Demographic shifts, such as an increase in people of a certain age, affect entire industries, not just one company}

No need to adapt products to local preferences Low capital investment needed

*Import/Export {Importing/exporting has the advantages of providing access to other markets with low capital outlays and not necessarily needing to adapt products to local preferences (managers can find markets that desire current products) However, this approach means greater transportation costs and the costs of tariffs and taxes}

Because Walmart's retail approach is big stores with a large selection of merchandise at discount prices, in which country should Walmart experience the most success?

*A country like Singapore, where people are price conscious {Walmart will do well in a country where people want the goods it has to offer and appreciate buying those goods at a discount}

The University of Texas at Austin aligning with BP to support leading-edge oil and gas industry research projects

*Strategic Partners {By collaborating to develop new systems and tools for deepwater oil drilling, BP and the University of Texas will each contribute expertise that the other lacks}

An organization's __________ can be shaped by symbols, stories, slogans, and more.

*culture {Culture in an organization is shaped in much the same way as culture in a country. Symbols, stories, slogans, and ceremonies can all influence culture}

Arguments Against Social Responsibility

*Business lacks expertise in social programs *Involvement gives businesses too much power *There may be conflicts of interest *Business exists to generate profit for the owners

A worldwide recession

*General environment {A worldwide recession affects entire industries, not just individual companies}

The Kiwanis Club asks you to make a presentation on corporate social responsibility. Which story will help you explain the concept of philanthropic giving in your presentation? Check all that apply.

*Walmart donated 4.5% of its pretax profits, amounting to $311,607,280, which helped support about 50,000 different charities *The Monsanto Fund Matching Gifts Program supports charities by matching donations of its employees *Walmart donated products valued at a total of $755,868,381 to several charities {Philanthropic giving is the awarding of funds or gifts to charities or other worthy causes. The gifts of money and products are examples of philanthropic giving. Companies making investments in their own facilities is not philanthropic giving. Lobbying those who make regulatory decisions does not constitute charitable giving}

A BP contractor changing its practices to satisfy the environmental and ethical requirements set by BP

*Suppliers {To support its refining operations, BP only uses suppliers that meet BP's qualification criteria, which include environmental and ethical standards}

A potential BP vendor documenting that it meets BP's environmental and ethical standards

*Suppliers {To support its refining operations, BP only uses suppliers that meet BP's qualification criteria, which include environmental and ethical standards}

For Caterpillar, a heavy equipment manufacturer, an unanticipated jump in the price its suppliers charge for steel

*Task environment {Companies that produce steel are Caterpillar's suppliers, making them part of Caterpillar's task environment}

Arguments for Social Responsibility

*Businesses create problems and should help solve them *Corporations are citizens in our society *Businesses have the resources to solve problems *Business is a partner in society

President Barack Obama's placement of a 6-month moratorium on offshore drilling

*Political/Legal {President Obama could place a moratorium on drilling because of his political power as an elected official}

Yum! Brands includes Pizza Hut, KFC, and Taco Bell. The variety of brands in the company makes it difficult to achieve ____ .

*a united culture {In this situation, each brand is likely to have its own unique culture. In effect, each brand has its own separate internal environment}

Nina waits tables, and a large part of her earnings comes from tips, which depend on how large the bill is. She lies to customers who order less expensive dishes, telling them that the kitchen is out of that type of food, to make the customers order more expensive dishes.

*Employee's or Organization's Treatment of Others {The three areas of ethical conduct of primary concern to managers are how the organization treats its employees, how employees treat the organization, and how the organization and its members treat others; Nina is fraudulently making customers spend more money than they want or need to spend

Although the company is highly profitable, the CEO refuses to offer employees more than bare-bones health insurance.

*Organization's Treatment of Employees {The three areas of ethical conduct of primary concern to managers are how the organization treats its employees, how employees treat the organization, and how the organization and its members treat others; The CEO's stinginess on health insurance affects the company's employees}

Which strategy for entering new country markets do you recommend for Walmart?

*Acquire existing business {Acquisition of existing businesses in new country markets will be an effective strategy for Walmart because it will lower the costs of opening outlets in foreign countries. It will also increase the number of managers in Walmart who understand and are comfortable with foreign cultures}

Juan owns a business making custom T-shirts for special occasions, and he hires freelance artists to design the shirts. He often postpones paying the artists for months and sometimes does not pay an artist at all.

*Employee's or Organization's Treatment of Others {The three areas of ethical conduct of primary concern to managers are how the organization treats its employees, how employees treat the organization, and how the organization and its members treat others; Juan is mistreating his suppliers}

The U.S. Occupational Safety and Health Administration (OSHA) ensuring that cleanup workers are protected from heat, fatigue, and other hazards

*Regulators {OSHA is the government agency that enforces health and safety legislation. It has the authority to control or otherwise influence BP's practices, making the agency part of BP's task environment}

Which of the following statements about culture are true? Check all that apply.

*A major way to shape culture is by bringing outsiders into important leadership positions *Cultural problems can arise when two companies with different cultures merge {It is true that cultures can be shaped by putting outsiders into leadership positions. It is also true that cultural problems can arise when two companies with different cultures merge. However, everyone needs to understand an organization's culture, not just those who supervise. Finally, cultures are very much shaped by ceremonies and slogans, so it is not true that changing these things has no impact on the culture}

Explain why Walmart has had most of its international success by entering markets in other countries through acquisition.

*Acquiring an existing retailer in a country allowed Walmart to begin with managers who understood the local culture and the existing distribution system {When companies acquire existing companies in foreign countries, they also acquire the employees of those companies. This can be a very effective way to increase the company's overall understanding of the new cultures in which it is attempting to do business}

A colleague at work learned that your company, an industrial supply company, has been offering kickbacks to purchasing officers to secure contracts. She asks you whether she should do anything. What step do you suggest she take?

*Blow the whistle and disclose the unethical conduct {The best answer is to disclose the unethical conduct to a supervisor. You might want to warn her that multiple actions could be necessary to be heard. Quitting or doing nothing will not help to stop the unethical behavior from happening. Identifying other possible recipients would mean contributing to the unethical behavior}

Other oil companies increasing their market share while BP focused its resources on addressing the oil spill

*Competitors {Companies that compete with BP for customer dollars (a resource) could take advantage of BP's reduced oil supply, as well as the negative publicity BP received}

Corrosion at ExxonMobil's Nigerian operations causing a major oil spill into the Niger Delta, while the BP oil spill was ongoing

*Competitors {ExxonMobil is a competitor of BP. The Niger Delta oil spill was not only bad in its own right but reminded the public of a previous, very serious environmental catastrophe for which Exxon was responsible (the Exxon Valdez spill in Alaska in 1989). Thus, it limited ExxonMobil's ability to improve its reputation at the expense of BP}

Which of the following statements about culture are true? Check all that apply.

*Culture can be maintained by rewarding and promoting people whose behaviors are desired *A major way to shape culture is by bringing outsiders into important leadership positions {It is true that cultures can be maintained through rewards, and that they can be shaped by putting outsiders into leadership positions. It is also true that cultural problems can arise when two companies with different cultures merge. However, everyone needs to understand an organization's culture, not just those who supervise, and stable cultures do not have to be dysfunctional}

BP's offering biofuels, such as ethanol-gasoline blends, at its service stations

*Customers {BP's customers include motorists who may choose to patronize (or avoid) service stations based on their perception of BP's environmental efforts}

Designing BP service stations that run partly on wind and solar power to appeal to drivers who are concerned about the environment

*Customers {BP's customers include motorists who may choose to patronize (or avoid) service stations based on their perception of BP's environmental efforts}

High willingness to accept risk High degree of control over operations

*Direct Investment {Direct investment offers companies the most control over operations, as a company owns its facilities in the other country. However, the capital outlay and thus risk are greatest with this approach}

Nervousness of investors about putting money into energy company stocks

*Economic {The Deepwater Horizon oil spill cast a pall over the entire industry, as investors worried that a similar catastrophe could happen to any energy company. Companies needed to reassure investors that they were taking appropriate risk management measures}

Declining tourism along the entire Gulf of Mexico coastline

*Economic {The oil spill had a widespread effect on businesses, including the tourism industry, which impacted the region's overall economy}

In companies that strive to be first to market with new technology, the risk that employees may divulge trade secrets is great.

*Employee's Treatment of Organization {The three areas of ethical conduct of primary concern to managers are how the organization treats its employees, how employees treat the organization, and how the organization and its members treat others; Employees who divulge proprietary information harm their employers}

Kayla never has to buy pens at the grocery store. She ends up with plenty from work.

*Employee's Treatment of Organization {The three areas of ethical conduct of primary concern to managers are how the organization treats its employees, how employees treat the organization, and how the organization and its members treat others; Kayla is stealing from her employer}

Ever since Shelley started working remotely, she spends more of the workday playing video games than doing her job.

*Employee's Treatment of Organization {The three areas of ethical conduct of primary concern to managers are how the organization treats its employees, how employees treat the organization, and how the organization and its members treat others; Shelley is betraying the trust of her employer by committing time theft}

When government inspectors show up at his plant, Jackson takes them to an expensive restaurant for lunch and gives them tickets to sold-out sports events.

*Employee's or Organization's Treatment of Others {The three areas of ethical conduct of primary concern to managers are how the organization treats its employees, how employees treat the organization, and how the organization and its members treat others; Jackson seems to be trying to curry favor with government inspectors by giving them what appear to be bribes; most US companies have rules against giving government authorities or prospective customers expensive gifts}

Although Hatteras Hammocks still manufactures its hammocks by hand in North Carolina, it sells the hammocks online to buyers worldwide. What international business strategy is Hatteras Hammocks using?

*Exporting {Exporting refers to producing a good in the firm's domestic market and selling it in one or more other countries}

Mainstreet Collection is a producer and wholesaler of gift items and soft goods. Located in Washington, North Carolina, it sells its goods to more than 100 retailers in the United States. Production is outsourced to manufacturing facilities in China, which keeps the price of the goods low. What approach to international business is Mainstreet Collection using to source its goods?

*Importing {Because Mainstreet Collection is bringing the goods into its home country from abroad, it is importing}

High job satisfaction ratings from current employees

*Internal environment {because current employees are inside a company and affecting the company from within}

Employees' ability to choose among several types and styles of desk chairs

*Internal environment {because the different seating options are part of the physical environment inside a company}

One employee telling another, "It's just the way we do things around here—it's our organizational culture."

*Internal environment {because the internal environment of an organization consists of that organization's culture, employees, and managers}

A company adopting an open-plan design for the workstations in its new office

*Internal environment {because the internal environment of an organization includes the physical space in which employees work}

Access to materials and technology Rapid entry to market

*Joint Venture {Joint ventures (a type of strategic alliance) enable shared ownership (sharing the risks but also sharing the profits); rapid market entry via the strategic partner; and ready access to materials, technology, and sometimes lower-cost labor}

Kirin Brewery, Japan's largest producer of beer, allows the Eagle Brewery in England to manufacture beer to Kirin's specifications and market the beer as Kirin Beer. Kirin Brewery earns a royalty on the beer sold in England. Which approach to international business is Kirin Brewery using?

*Licensing {Licensing is an arrangement whereby one company allows another company to use its brand name, trademark, technology, patent, copyright, or other assets in exchange for a royalty on sales}

Mainstreet Collection imports goods manufactured elsewhere and selling them wholesale to U.S.-based retailers. Which of the following are either advantages or disadvantages that Mainstreet Collection experiences with this business model? Check all that apply.

*Lower labor costs *Taxes and tariffs charged to move goods between markets *Transportation expense to move product between markets {Mainstreet Collection imports goods from a country with lower labor costs, thereby allowing it to either sell its goods at lower prices or increase profits, or both. However, importing involves paying more for the transportation of goods and paying taxes and tariffs when the goods cross international borders}

Magna Clothes is considering Europe as the primary region for its international ventures. That would require Magna Clothes to become familiar with the European Union (EU) and its business practices. Which of the following statements accurately describe the European Union? Check all that apply.

*Many EU members adopted the use of a uniform currency, the euro, to replace their country-specific currencies *The European Union is considered to be the first and most important international market system *The purpose of economic communities such as the European Union is to decrease fees and tariffs, thereby increasing the exchange of goods and services across national borders {

Magna Clothes is considering Europe as the primary region for its international ventures. That would require Magna Clothes to become familiar with the European Union (EU) and its business practices. Which of the following statements accurately describe the European Union? Check all that apply.

*Many EU members adopted the use of a uniform currency, the euro, to replace their country-specific currencies *The European Union is considered to be the first and most important international market system *The purpose of economic communities such as the European Union is to decrease fees and tariffs, thereby increasing the exchange of goods and services across national borders {The European Union is a market system, meaning that it reflects a cluster of countries that engage in high levels of trade with one another. In addition to its original members and an increasing number of members from Eastern Europe, the European Union focuses on trade relations within Europe (not in Asia or other regions of the world). The European Union traces its roots back to 1957, when the Treaty of Rome was signed. As more members joined in the agreement in the 1970s and 1980s, the countries became known as the European Committee and, later on, the European Union. Additional countries have continued to join the European Union, which now has more than two dozen member countries. Several EU member countries have adopted a common currency, the euro, which has replaced the country-specific currencies they had traditionally}

At Zappos, managers are committed to making workers happy.

*Organization's Treatment of Employees {The three areas of ethical conduct of primary concern to managers are how the organization treats its employees, how employees treat the organization, and how the organization and its members treat others; Zappo's has decided that the ethical way to treat employees is to prioritize their happiness}

Mr. Smith refrains from promoting women because it can be a challenge to cover staff positions during maternity leaves.

*Organization's Treatment of Employees {The three areas of ethical conduct of primary concern to managers are how the organization treats its employees, how employees treat the organization, and how the organization and its members treat others;Mr. Smith's behavior affects female employees and, most likely, the workplace culture for all employees}

Investigative hearings to understand how similar accidents might be prevented in the future

*Political/Legal {Congress conducted hearings to determine whether laws or regulations needed to be changed to prevent a similar incident from occurring in the future. The findings from such legislative investigations, whether at the federal or state level, generally affect every company in the industry}

Protestors, who belong to a special interest group, outside BP service stations, bringing attention to the oil spill's effects on wildlife

*Regulators {Regulators include both regulatory agencies and interest groups, including organizations that exert influence by bringing public attention to BP's environmental practices}

Imagine that your friend is the CEO of a company, called Magna Clothes, that manufactures cool new clothing accessories for both men and women. Now that it has achieved a large following and a level of success in the United States, Magna Clothes wants to start conducting business abroad. Your friend knows you have taken a management class and has asked you to explain the history and significance of the World Trade Organization (WTO). Which of the following statements are true? Check all that apply.

*Some people criticize the WTO for focusing too narrowly on globalization issues, at the expense of human rights and environmental concerns *The predecessor to the WTO was the General Agreement on Tariffs and Trade (GATT) {The World Trade Organization (WTO) requires its members to open their markets to international trade and to follow WTO rules. The WTO traces its roots to the era following World War II when its predecessor, the General Agreement on Tariffs and Trade (GATT), was negotiated. The WTO replaced the GATT as of January 1995. The WTO still plays a major role in the evolution of the global economy today. Nonetheless, some critics contend that the WTO focuses too narrowly on globalization, without giving due consideration to human rights and environmental issues}

BP and state employment agencies training individuals to monitor the Gulf Coast beaches and be activated for environmental cleanup as needed

*Strategic Partners {As strategic partners, both BP and the state employment agencies are contributing resources that the other lacks. BP will provide jobs and training, while the agencies will providing staffing}

For a public university, the pool of new PhD graduates seeking jobs as professors

*Task environment {The PhD graduates represent the university's labor market. The labor market directly affects the university, making it part of the task environment}

Identifying new ways to measure the pressure with which oil was flowing from the deep-sea well

*Technological {The new technology developed to improve oil pressure measurement would be available to all companies in the industry, as well as to other companies with similar needs}

Imagine that your friend is the CEO of a company, called Magna Clothes, that manufactures cool new clothing accessories for both men and women. Now that it has achieved a large following and a level of success in the United States, Magna Clothes wants to start conducting business abroad. Your friend knows you have taken a management class and has asked you to explain the history and significance of the World Trade Organization (WTO). Which of the following statements are true? Check all that apply.

*The WTO allows countries to have observer status before becoming full members, so they can follow discussions on topics that are of direct interest to them *Opponents of the WTO sometimes contend that the organization focuses too narrowly on the globalization of trade, at the expense of human rights and the environment {The World Trade Organization (WTO) is headquartered in Geneva, Switzerland, and has member nations located throughout the world. The WTO includes both member nations and observer countries, which can follow discussions on topics related to them before they attain full member status. The WTO has three basic goals: -- To promote trade flows by encouraging nations to adopt nondiscriminatory and predictable trade policies -- To reduce remaining trade barriers through multinational negotiations -- To establish impartial procedures for resolving trade disputes among its members The General Agreement on Tariffs and Trade (GATT) was negotiated after World War II and was replaced by the WTO in January 1995. Today, the WTO still plays a major role in the evolution of the global economy. Nonetheless, some critics contend that the WTO focuses too narrowly on globalization, without giving due consideration to human rights and environmental issues}

Imagine that your friend is the CEO of a company, called Magna Clothes, that manufactures cool new clothing accessories for both men and women. Now that it has achieved a large following and a level of success in the United States, Magna Clothes wants to start conducting business abroad. Your friend knows you have taken a management class and has asked you to explain the history and significance of the World Trade Organization (WTO). Which of the following statements are true? Check all that apply.

*The WTO seeks to establish impartial procedures for resolving trade disputes among its members *The WTO seeks to reduce remaining trade barriers through multilateral negotiations *The WTO seeks to promote trade flows by encouraging member nations to adopt nondiscriminatory and predictable trade policies {The World Trade Organization (WTO) is headquartered in Geneva, Switzerland. The WTO has three basic goals: -- To promote trade flows by encouraging nations to adopt nondiscriminatory and predictable trade policies -- To reduce remaining trade barriers through multinational negotiations -- To establish impartial procedures for resolving trade disputes among its members Although most European Union (EU) members adopted a common currency (the euro) in 2002, this is not something the WTO has done}

Magna Clothes is considering Europe as the primary region for its international ventures. That would require Magna Clothes to become familiar with the European Union (EU) and its business practices. Which of the following statements accurately describe the European Union? Check all that apply.

*The goal of the European Union is to integrate the markets of Europe, including those in Eastern Europe *The euro is the currency of the European Union, replacing the pound (Ireland), the franc (France), and the lira (Italy) *The European Union is considered to be the first and most important international market system {The European Union is a market system, meaning that it reflects a cluster of countries that engage in high levels of trade with one another. In addition to its original members and an increasing number of members from Eastern Europe, the European Union focuses on trade relations within Europe (not in Asia or other regions of the world). The European Union traces its roots back to 1957, when the Treaty of Rome was signed. As more members joined in the agreement in the 1970s and 1980s, the countries became known as the European Committee and, later on, the European Union. Additional countries have continued to join the European Union in the 2000s; it now has more than two dozen member countries. Several EU member countries have adopted a common currency, the euro, which has replaced the country-specific currencies they had traditionally. Several European countries use the euro as their only currency, while some recognize it as an alternate currency}

North America is yet another region Magna Clothes is considering for its international expansion. Because he knows little about the United States-Mexico-Canada Agreement (USMCA), the CEO of Magna Clothes asks you to explain what you know about the agreement and how it might affect Magna's entry into the Canadian clothing market. Which of the following statements are correct? Check all that apply.

*USMCA is the successor to the North American Free Trade Agreement (NAFTA) *Mexico has a robust trading relationship with the United States. More then 80% of Mexico's exports go to the United States, and a larger percentage of Mexico's imports come from the United States *The signatories to USMCA have been major trade partners for many years {USMCA is the successor to NAFTA, which eliminated many of the trade barriers that existed among the United States, Canada, and Mexico prior to 1992. Membership is limited to countries in North America. The United States and Mexico have a long-standing trade relationship, with a significant portion of Mexico's exports and imports going to or coming from the United States. The most favored nation (MFN) principle is not part of USMCA but originated with the General Agreement on Tariffs and Trade (GATT)}