MGMT 3, MGMT 4
The _______ environment consists of 11 groups that present you with daily tasks to handle
task
The triple bottom line representing _______, ________, and ___ ....... measures an organization's social, environmental, and financial performance
people, planet, and profit
__________ capital is money provided by investors (i.e., venture capitalists) to startup firms and small businesses with high risk but perceived long-term growth potential, in return for an ownership stake
venture
__________ institutions are another stakeholder. _________ institutions such banks, savings and loans, and credit unions provide capital to new ventures ____________, or crowdsourcing, is raising money for a project or venture by obtaining many small amounts from many people ("the crowd"). Established companies also need loans, but they rely on lenders such as ______, ______, and ______.
venture(3) crowdfunding commercial banks, investment banks, insurance companies
A _________________ subsidiary is a foreign subsidiary that is totally owned and controlled by an organization A ________________ venture is a foreign subsidiary that the owning organization has built from scratch
wholly-owned greenfield
The term BRICS stands for the five major emerging economies of _________, _________, ___________, ___________, and __________________. The BRICS are important because they make up 40 percent of the world's population, represent about 20 percent of the world's economic activity, and have established their own $100 billion reserve fund to rival the International Monetary Fund. For many years, _______ sustained double-digit growth, benefiting from its manufacturing expertise, low income levels, huge labor market, and a willingness to embrace Western investment. For outsiders, doing business in the "middle kingdom," as ________ has been called, can be difficult. Recently, operating in __________ has become even harder, as economic growth has slowed, and ___________'s cheap labor pool is shrinking. advantages are its large English-speaking population, its technological and scientific expertise, and its reputation in services. working-age population is not expected to peak until about 2050. _____________experienced a decade of economic and social progress from 2003 to 2013. In 2016, the country suffered a recession, the worst economic slump in 25 years, brought about by worldwide declines in commodity prices, a domestic political crisis, and rising inflation.
Brazil, Russia, India, Chez Republic, and South Africa --------------------- China China / China's India Brazil
The ________________ (EU) is a trading bloc consisting of 28 countries in Europe. Nearly all internal trade barriers have been eliminated, including movement of labor between countries. Many national currencies have been replaced with the EU currency, the euro In 2016, the United Kingdom narrowly decided to remove itself from the EU, a process that will likely take several years to complete.
European Union
The ___________environment, or macroenvironment, includes 6 forces _____________ consist of general economic conditions and trends—unemployment, inflation, interest rates, and economic growth—that may affect an organization's performance. _______________ forces are new developments in methods for transforming resources into goods or services, for example, biotechnology. _____________ forces are influences and trends originating in a country's, a society's, or a culture's human relationships and values which may affect an organization. ________________ forces are influences on an organization arising from changes in the characteristics of a population, such as age, gender, ethnic origin, sexual orientation, occupation, income family size, and the like. ______________ forces are changes in the way politics shape laws and how those laws affect organizations. Some countries have more fully developed legal systems than others. American companies may be more willing to advance their interests in using the legal system, as in suing competitors. _________________ forces are changes in the economic, political, legal, and technological global system that may affect an organization.
General economic forces Technological Forces Sociocultural Forces Demographic Forces Political/Legal Forces International Forces
Most companies enter into international business in 1 of 5 ways Figure 4.1 shows the entry modes ranging from the lowest risk and investment to the highest risk and investment. ______________ is defined as using suppliers outside the company to provide goods and services There are several reasons for global outsourcing including ________________, ________________, or ___________________. As a result of the complexities of outsourcing, some U.S. companies are engaging in reshoring, or moving production back home.
Global Outsourcing offshoring availability of resources, special expertise, or cheaper labor.
The demise of ______________, the opening of economies to foreign trade by Asian countries, and deregulation of economies have created a global economy. The global economy is the increasing tendency of the economies of the world to interact with one another as one market instead of many national markets. Positives of a global economy are that there is now a worldwide market for companies and consumers who have access to products of different countries. The global economy can also contribute to __________ through foreign direct investment in the United States. A key negative of the global economy is that well-paying American jobs have been moved offshore as companies seek cheaper labor costs
IMF outsourcing
The __________________ (IMF) is designed to assist in smoothing the flow of __________ between nations. The 189-member IMF is a last-resort lender, making short-term loans to countries suffering from unfavorable balance of payments. It has become more high profile in recent times because of its role in trying to shore up weaker European economies such as Greece, Portugal, and Ireland The IMF was overhauled in late 2015 to increase its capital and give countries such as China and India a greater say in the organization.
International Monetary Fund money
__________ is management that oversees the conduct of operations in or with organizations in foreign countries A _______________corporation, or multinational enterprise, is a business firm with operations in several countries A _____________ organization is a nonprofit organization with operations in several countries. Even if you never travel outside North America, the world will assuredly come to you. You may deal with foreign customers or partners. You may deal with foreign ____________ or suppliers. You may work for a foreign firm in the United States. You may work for an American firm outside the United States or for a foreign one.
International management multinational (2) distributers
A U.S. firm may form a __________ venture, also known as a ____________alliance, with a foreign company to share the risks and rewards of starting a new enterprise together in a foreign country. Laws in some countries forbid foreigners from ownership; a _________ venture is the only option to enter that market.
Joint / strategic alliance
Research shows that many _______ are less focused on financial success than they are on making a difference and having meaningful lives
Millennials
The notion of the triple bottom line has particular appeal to many ______
Millennials
Economist _________ argued that the only social responsibility of businesses is to maximize profits; otherwise, they will become distracted and fail to achieve their goals. In contrast, economist _________ argued that a company must be concerned for society's welfare, as well as for corporate profits. Those who support corporate social responsibility would argue:
Milton Friedman ------------------ Paul Samuelson ------------------ Because businesses create problems, they should help solve them. Businesses often have the resources to solve problems in ways that the nonprofit sector does not. Being socially responsible gives businesses a favorable public image that can help head off government regulation.
The ___________________(NAFTA) is a trading bloc consisting of the United States, Canada, and Mexico. The agreement was formed in 1994, and it is supposed to eliminate 99% of the tariffs and quotas among these countries, allowing for freer flow of goods, services, and capital in North America. Opponents argue that NAFTA is a job killer for Americans and has spurred huge trade deficits. Supporters insist NAFTA will result in more jobs and a higher standard of living among the partners. The terms of the agreement are now the subject of ongoing negotiations among the 3 member countries that may last until 2019
North American Free Trade Agreement
_______________ managers believe that native managers in the foreign offices best understand native personnel and practices, so the home office should leave them alone ("They Know Best"). The attitude of _______ managers is nearly the opposite of that of ________ managers
Polycentric -------------------- polycentric / ethnocentric
________ is a manager's duty to take actions that will benefit the interests of society as well as of the organization. __________________ (CSR) is the notion that corporations are expected to go above and beyond following the law and making a profit.
Social responsibility Corporate Social Responsibility
The _____________________ (TPP) is a trade agreement among 11 Pacific Rim countries signed on February 4, 2016. The United States, originally a party to the agreement, withdrew from the pact under the Trump administration.
Trans-Pacific Partnership
The ______________ approach is guided by what will result in the greatest good for the greatest number of people. Managers often use financial performance as the best definition of what constitutes "_______" While this may be good for the bottom line, it may also result in damage to workforce morale and the loss of experienced employees. The ______________ approach is guided by what will result in the individual's best long-term interests, which ultimately is considered in everyone's self-interest. You will act ethically in the short run to avoid others harming you in the long run. However, one person's short-term self-gain may not be good for everyone in the long term. The _____________ approach is guided by respect for the fundamental rights of human beings. Problems occur when rights are in conflict, such as employer and employee rights. The _______________ approach is guided by respect for impartial standards of fairness and equity. One consideration is whether an organization's policies are administered impartially and fairly. The gap between a CEO's pay and the pay of average workers is seen as an issue of fairness.
Utilitarian Approach the greatest good. Individual Moral Rights Justice
The _______________ is a 189-member organization whose purpose is to provide low-interest loans to developing nations for improving transportation, education, health, and telecommunications. The _________ was founded after World War II to help European countries rebuild. Critics believe it finances projects that damage the ecosystem and supports countries that permit low-paying sweatshops or that suppress religious freedom
World Bank
After World War II, the advanced nations of the world began to realize that if all countries could freely exchange the products that each could produce most efficiently, this would lead to lower prices all around. Nations began to focus on the removal of barriers to free trade. Three principal organizations designed to facilitate international trade were formed. __________ (WTO) is a 164-member organization designed to monitor and enforce trade agreements. The agreements are based on the General Agreement on Tariffs and Trade (GATT), an international accord first signed in 1947, which helped to reduce worldwide tariffs. Out of GATT came a series of "rounds" that resulted in the lowering of barriers. The last round of negotiations, the Doha Round, was effectively ended without agreement. WTO succeeded GATT as the world forum for trade negotiations and has the formal legal structure for deciding trade disputes.
World Trade Organization
________________ refers to major changes in temperature, precipitation, wind patterns, and similar matters occurring over several decades _________________ refers to the rise in global average temperature near the Earth's surface, caused mostly by increasing concentrations in the atmosphere of greenhouse gases, such as carbon emissions from fossil fuels. Today, going green has entered the business mainstream, where sustainability programs are producing not only environmental benefits but also cost savings, revenue growth, and competitive advantages. _______________ is the value of natural resources, such as topsoil, air, water, and genetic diversity, which humans depend on. We are approaching the planet's limitations, with human activity threatening to exceed the earth's capacity to generate resources and absorb wastes.
climate change global warming natural capital
__________ are people or organizations that compete for customers or resources, such as talented employees or raw materials
competitors
The global market has fueled the growth of 2 opposite kinds of businesses: ____________ and _____________. _____________ occur when huge companies merge into even larger companies. The presence of a few dominant companies as the result of megamergers might make it harder for entrepreneurs to start new businesses in that industry. ____________ can achieve competitive advantage and operate worldwide because even small companies can go global easily, and small businesses can maneuver faster than large companies.
consumer / business-to-business ------------------- company merge ---------------------- international expansion
A nation's _____________ is the shared set of beliefs, values, knowledge, and patterns of behavior common to a group of people. We begin learning our culture starting at an early age through everyday interaction with people around us. Visitors to another culture may experience culture shock—the feelings of discomfort and disorientation associated with being in an unfamiliar culture. In ______________ cultures, shared meanings are primarily derived from written and spoken words. In ____________ cultures, people rely heavily on situational cues for meaning when communicating with others, relying on nonverbal cues as to another person's official position, status, or family connections. Misunderstandings often arise in international business relationships because people don't understand the expectations of the other side. One way to avoid cultural collisions is to have an understanding of various cultural dimensions.
culture --------------- low-context ----------------------- high-context
___________ are those who pay to use an organization's goods or services
customers
A _____________ is a person or organization that helps another organization sell its goods and services to customers. In some industries, there is little competition, and the ______ has a lot of power over the price of the product The _______ has allowed some manufacturers to cut out the middleman and sell directly to customers
distributor internet
An __________ is a complete ban or prohibition of trade of one country with another A ________________ is the trade prohibition on certain types of products, services, or technology to another country for specific reasons. Sanctions may be considered "partial ____________," since they restrict trade in certain areas
embargo sanction embargoes
Local __________ are important stakeholders since they often rely on companies for jobs, contributions to the tax base, and/or financial support. Many cities offer incentives to attract ______. If a community gives company tax breaks in return for the promise of new jobs and the firm fails to do so, the community might use__________ to rescind the tax breaks
employees clawback
An organization may promote high ethical standards on the job by creating a strong ethical climate, by screening prospective employees, by instituting ethics codes and training programs, and by rewarding ethical behavior by protecting whistle-blowers. An ______________ climate represents employees' perceptions about the extent to which work environments support ethical behavior. Managers can promote ethical climates through the policies, procedures, and practices that are used on a daily basis. Companies can try to screen out dishonest employees by checking references, using E-Verify (illegal immigrant check), and using personality and integrity testing. A _______________ consists of a formal written set of ethical standards guiding an organization's actions. The purpose of a code of ethics is to clearly state top management's expectations for all employees. A ____________ is an employee, or even an outside consultant, who reports organizational misconduct to the public.
ethical code of ethics whistleblowers
An ___________ dilemma is a situation in which you have to decide whether to pursue a course of action that may benefit you or your organization but that is unethical or even illegal. _____________ are the standards of right and wrong that influence behavior, standards which may vary between countries and between cultures. ____________ are the relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior. ___________ is behavior that is accepted as "right" as opposed to "wrong" according to ethical standards. Ethical dilemmas often develop because of an organization's _____________, the pattern of values within the organization. Values and value systems are the foundations for ethics and ethical behavior. Organizations may have two important value systems that can conflict: __________.
ethical ethics ethical value system the value system stressing financial performance VS. the value system stressing cohesion and solidarity in employee relationships
Research shows consumers are more apt to buy from companies that are socially responsible and are willing to pay extra for products and services from companies that give back to society. When managers exhibit _____________, that is leadership that is directed by respect for ethical beliefs and values for the dignity and rights of others, employees report higher levels of organizational commitment, job satisfaction, trust in the leader, and motivation.
ethical leadership
____________ managers believe that their native country, culture, language, and behavior are superior to all others ("We Know Best"). These managers believe that they can export the practices of their home countries to anywhere in the world. Often the ethnocentric viewpoint is less attributable to prejudice than it is to ignorance. They might also be called ____________—that is, a narrow view in which people see things solely through their own perspective
ethnocentric parochialism
The _____________ stakeholders are people or groups in the organization's external environment that are affected by it. This environment consists of the _______ environment and the __________ environment
external general task
______________ managers accept that there are differences and similarities between home and foreign personnel and practices ("What's Best Is What's Effective, Regardless of Origin"). They believe they should use whatever techniques are most effective. This view takes more work than being an ethno- or polycentric manager, but the payoff can be far greater.
geocentric
Working overseas can be an advantage to your career. Foreign experience demonstrates independence, resourcefulness, entrepreneurship. You can develop a ____________, which combines (1) an openness to and awareness of ___________ across cultures and markets with (2) a propensity and ability to see common _____________ across countries and markets.
global diversity
____________ is the trend of the world economy toward becoming a more interdependent system The _____________ refers to the "shrinking" of time and space, as air travel and electronic media have made it easier for people of the globe to communicate with each other. One big factor driving globalization is the Internet, a worldwide computer-linked "network of networks" The World Wide Web led to ______________ or electronic commerce, which is the buying and selling of products and services through computer networks
globalization global village e-commerce
______________regulators are regulatory agencies that establish ground rules under which organizations may operate. Many agencies, boards, and commissions have the legal authority to prescribe or proscribe the conditions under which you may conduct business. Such regulators are stakeholders because they affect the activities of the organization and are in turn affected by it. ____________ groups are groups whose members try to influence specific issues, and they are an important stakeholder. These groups may try to exert political influence, or they may organize picketing and boycotts—holding back their patronage—of certain companies. People for the _______ is an example of a special-interest group
government Special Interest Groups (PETA) Ethical Treatment of Animals
An ________________ quota is a trade barrier in the form of a limit on the amount of a product that can be imported The intent of an import quota is to protect domestic industry by restricting the availability of foreign products. Quotas are designed to prevent ___________, the practice of a foreign company's exporting products abroad at a lower price than the price in the home market (or even below the costs of production) in order to drive down the price of the domestic product.
import ------------------- dumping
When ___________, a company buys goods outside the country and resells them domestically. When _____________, a company produces goods domestically and sells them outside the country Countries can also resort to _______________—bartering goods for goods—if they lack currency to pay for the goods.
importing exporting countertrading
Geert Hofstede collected data from 116,000 IBM employees in 53 countries and proposed four dimensions along which national cultures can be placed The dimensions are: _________________: how much people prefer a loosely knit social framework in which people are expected to take care of themselves, or a tightly knit social framework in which people and organizations are expected to look after each other ______________: the degree to which people accept inequality in social situations. _________________: people's intolerance for uncertainty and risk. __________________: how much people value performance-oriented traits or how much they embrace relationship-oriented traits.
individualism/collectivism power distance uncertainty avoidance masculinity/femininity
At the beginning of the 21st century, U.S. business was rocked by an array of scandals like Enron and WorldCom, followed by insider trading and Ponzi scheme scandals. _______________ is the illegal trading of a company's stock by people using confidential company information. A ___________ is when cash from newer investors is used to pay off old ones.______________ of 2002 The _____________ of 2002 established requirements for proper financial record keeping for public companies and penalties of as much as 25 years in prison for noncompliance. SarbOx requires a company's chief executive officer and chief financial officer to personally _________ the organization's financial reports, among other requirements. It also requires the company to have established procedures and guidelines for ________.
insider trading Ponzi scheme Sarbanes-Oxley Reform Act certify audit committees
________stakeholders consist of _________, owners, and the __________, if any. In many forward-looking organizations, _________ are considered the most important resource
internal employees, board directors employees
Managers operate in 2 organizational environments made up of various stakeholders: _________ stakeholders and ________ stakeholders
internal and external
In ___________, a company allows a foreign company to pay a fee to make or distribute the first company's product or service. The licensor can make money without investing large sums to conduct business directly in a foreign company. The local firm, the _____________, knows the local market better than the U.S. company would ______________ is a form of licensing in which a company allows a foreign company to pay it a fee and a share of the profit in return for using the first company's brand name and a package of materials and services
licensing licensee franchising
In this view of corporate performance, an organization has a responsibility to its employees and to the wider community (________), is committed to sustainable (________) environmental practices (_______), and includes the costs of pollution, worker displacement, and other factors in its financial calculations (__________)
people green planet profit
Psychologist Laurence Kohlberg has proposed three levels of _________ development. Level 1, _____________—people at this level tend to follow rules and to obey authority; managers tend to expect obedience for obedience's sake. Level 2, ______________—people at this level are conformist, generally following others' expectations; managers lead by encouragement and cooperation. Level 3,________________—people at this level are independent and follow their own values and standards. Most managers are at Level 2 of moral development. Only about a fifth of American managers reaches Level 3
moral preconventional conventional post-conventional
With _________________ nation trading status, a country grants other countries favorable trading treatment such as the reduction of import duties The purpose is to promote stronger and more stable ties between the countries. The _________________ rate is the rate at which the currency of one country can be exchanged for the currency of another Because of changing economic conditions, the values of currencies fluctuate in relation to each other
most favored exchange rate
A _____________ organization is a nonprofit organization with operations in several countries.
multinational
Global outsourcing or _____________ is defined as using suppliers outside the United States to provide labor, goods, or services.
offshoring
The _________ of an organization consist of all those who can claim it as their legal property ____ proprietorships, partnerships, _________ investors, or employee owners The goal of the owners is to make a ________
owners sole maximize profit
Archie Carroll developed a global corporate social responsibility pyramid ____________, __________, _________, and ________________. Carroll suggests that the priorities of the organization should be to:
philanthropic responsibility ethical responsibility legal responsibility economic responsibility ----------------------- Be a good global corporate citizen, as defined by the host country's expectations. Be ethical in its practices, taking host-country and global standards into consideration. Obey the law of host countries as well as international law. Make a profit consistent with expectations for international business.
______________ is making charitable donations to benefit humankind. Not only do wealthy individuals and companies practice philanthropy, but ordinary individuals do also so as well. Several wealthy individuals, such as Bill Gates and Mark Zuckerberg, have signed the _________, a commitment to dedicate a majority of their wealth to philanthropy.
philanthropy -------------------------- Giving Pledge
The __________ project is an ongoing cross-cultural investigation of nine cultural dimensions involved in leadership and organizational processes. The dimensions are: (1) ___________ distance: the degree to which a society's members expect power to be unequally shared. 2) ____________avoidance: the extent to which a society relies on social norms and procedures to alleviate the unpredictability of future events 3) ____________ collectivism: the extent to which individuals are encouraged and rewarded for loyalty to the group as opposed to pursuing individual goals 4) ___________ collectivism: the extent to which people should take pride in being members of their family, circle of close friends, and work organization. 5)_____________: the extent to which a society should minimize gender discrimination and role inequalities 6)______________: the extent to which a society expects people to be confrontational and competitive as opposed to tender and modest. 7)______________orientation: the extent to which a society encourages investment in the future, as by planning and saving. 8)______________ orientation: the extent to which society encourages and rewards its members for performance improvement and excellence. 9)___________orientation: the degree to which individuals are encouraged to be altruistic, caring, kind, generous, and fair. The ____________ dimensions show how cultural patterns vary. Knowing the cultural tendencies of foreign business partners and competitors can give you a strategic competitive advantage.
power distance (1) power distance (2) uncertainty avoidance 3) institutional collectivism 4) in-group collectivism 5) gender egalitarianism 6) assertiveness 7) future orientation 8) performance orientation 9) human orientation ----------------------- Hofstede's Cultural
_________ audit is a systematic assessment of a company's performance in implementing socially responsible programs
social
__________ are the people whose interests are affected by an organization's activities
stakeholders
The term ________________ describes the relationship of two organizations that join forces to achieve advantages neither can perform as well alone
strategic allies
A ________ is a person or organization that provides supplies—raw materials, services, equipment, labor, or energy—to other organizations
suppliers
Companies may have to go where their basic __________ or raw materials are located. Companies can reach new markets and can make money overseas when demand for their products decreases at home. Firms might be able to lower their _____________, for example through using maquiladoras, manufacturing plants allowed to operate in Mexico with special privileges in return for employing Mexican citizens, thus providing less expensive labor. Companies may be able to access needed finance capital. Tariffs or _______________ can be avoided by establishing subsidiaries in foreign locations
supplies labor foreign subsidiary
Countries often use ____________ protection—the use of government regulations to limit the import of goods and services—to protect their domestic industries against foreign competition A __________is a trade barrier in the form of a customs duty or tax levied mainly on imports A __________ tariff is designed simply to raise money for the government A ____________ tariff raises the price of imported goods to make the prices of domestic products more competitive
trade tariff revenue tariff protective tariff
A ___________, also known as an ___________________community, is a group of nations within a geographical region that have removed trade barriers with one another 2 major trading blocs are the _______ nations and the _________ 4 other trading blocs, ________, ________, ________, and ________
trading bloc economic ------------------ NAFTA European Union ----------------------- APEC, ASEAN, Mercosur, and CAFTA