MGMT 3101 Exam 2 Study Guide

Nontariff Barrier

A ____ is a nontax method of increasing the cost or reducing the volume of imported goods.

Situational Analysis

A ____, also called a SWOT analysis for strengths, weaknesses, opportunities, and threats, is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment.

Global Consistency

A multinational company that acts with ____ has offices, manufacturing plants, and distribution facilities in different countries all which run based on the same rules, guidelines, policies, and procedures.

Those companies have, for the moment, stopped trying to duplicate the advantage

A sustainable competitive advantage exists for an organization when other companies have tried unsuccessfully to duplicate the advantage and ____.

Cycle

A technology ____ begins with the birth of a new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology.

Tariff

A(n) ____ is a direct tax on imported goods designed to make it more expensive to buy those goods, instituted in hopes of reducing the volume of those imported goods in a given country.

Imperfectly Imitable

A(n) ____ is a resource that is impossible or extremely costly or difficult for other firms to duplicate.

Rare

A(n) ____ resource is a resource that is not controlled or possessed by many competing firms.

Measurable

According to the S.M.A.R.T. guidelines, goals should be ____.

Nonsubstituable

According to the text, valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are ____ resources.

A false sense of certainty based on faulty assumptions

According to the text, which of the following is a pitfall of planning?

Planning

After earning $8 billion in profit, Royal Dutch/Shell decided to strive to double its profits within the next five years. Which classical management function would be instrumental in achieving this goal?

Technological Substitution

An innovation stream moves from one technology cycle to another through the process of ____.

Create a competitive advantage

Aveda is a manufacturer and marketer of cosmetics, perfumes, hair-care, and skin-care products. To differentiate its products from other similar brands, Aveda focuses on educating its customers on general skin and hair care. Its salespeople are trained to answer questions and help customers find solutions. Aveda has used customer education and employee training to ____.

No, because size is not a criteria for sustainable competitive advantage

Deutsche Bank is the largest bank in the world. Would this give it a sustainable competitive advantage?

Intensified effort, persistence, direction, and creation of task strategies

How does a company benefit from planning?

Discontinuous Change

Kodak is a company associated with photography. The company has recognized that digital photography is a threat to the future growth of the company's film business. Therefore, the company has decided to become a market leader in digital imaging. As Kodak tried to compete in this new innovation stream, it entered ____.

encourages people to work faster encourages people to try a variety of different ways to do others' jobs reduces employee turnover eliminates all discriminatory practices Correct Response does none of these

One of the benefits of planning is how it ____.

To what extent should the company standardize or adapt business procedures?

One of the major questions that a company must typically answer about its future, once it has decided to go global is ____.

Innovation

Organizational ____ is the successful implementation of creative ideas in organizations.

Quotas

Russia imposed limits on how much poultry, beef, and pork could be imported into the nation from the European Union (EU) in retaliation to limits the EU placed on how much grain Russia could export. What type of nontariff barrier did Russia use to control the amount of poultry, beef, and port it imported from the EU?

Protectionism

The Japanese government continues to use the high tariffs to make sure local farmers can earn a living. The tariff on rice is an example of ____.

North American Free Trade Agreement

The ____ is a regional trade agreement that liberalizes trade between countries more than any other such agreement.

General Agreement on Tariffs and Trade

The acronym GATT stands for the ____.

Technological Discontinuity

The development of the DVD player was a source of ____ to companies in the movie industry just as VHS tapes had once been.

Assess the need for strategic change

The first step in the strategy-making process is to ____.

Maintain flexibility in planning

The last step in effective planning is to ____.

Encouraging workers' participation in goal setting

The most popular approach to increasing goal commitment is ____.

World Trade Organizations

The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the ____.

Assumptions

The use of ____ in planning produces a false sense of certainty and is often cited as one of the major pitfalls of planning.

At the end of the innovation cycle

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 ____ in the S-curve pattern of innovation.

Group Compensation

Which of the following is NOT one of the components of creative work environments?

Planning may harm individual and organizational performance

Which of the following is a possible outcome of planning?

Imperfectly Imitable Resources

Which of the following must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?

Subsidies

____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries.

Technology

____ is the knowledge, tools, and techniques used to transform inputs into outputs.

Discontinuous change

____ is the phase of a technology cycle characterized by technological substitution and design competition.

Options-based

____ planning keeps options open by making small, simultaneous investments in many alternative plans.

Resources

_______ are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.

Organizational Innovation

Creativity was needed to improve efficiency without raising costs at one automobile maker. Over the last few years, the company has successfully implemented a creative engineering program that allows its plants to produce more than one type of car from the same assembly line. This successful change to a flexible manufacturing system is an example of ____.