MGMT 3370 Test 2 (Chp. 5-8)
Resource similarity and _____ are factors that determine the extent to which firms will be in direct competition with each other. a. related diversification b. customer autonomy c. market commonality d. resource quality e. product differentiation
C
The ____ is a type of operational plan that saves managers time because it is created once and then used repeatedly to handle frequently recurring events. a. budget b. forecast c. standing plan d. options-based plan e. single-use plan
C
The _____ approach to managing innovation assumes that innovation is a predictable process made up of a series of steps and that reducing the time it takes to complete those steps can speed up innovation. a. generational b. dialectical c. compression d. prototypical e. milestones
C
The first step in the compression approach to innovation is _____. a. creating multifunctional teams b. supplier involvement c. planning d. overlapping of the individual steps e. granting autonomy
C
The last step in effective planning is to _____. a. acculturate the employees b. track progress toward goal achievement c. develop goal commitment d. maintain flexibility in planning e. develop long-term action plans
D
Clive Motor company sole owns and operates manufacturing plants in Brazil, Chile, Germany, and India. Which of the following should be used in this example?
wholly owned affiliate
Which of the following is NOT one of the components of creative work environments? a. Organizational impediments b. Challenging work c. Organizational encouragement d. Freedom e. Supervisory encouragement
A
Which of the following is a characteristic of the inaction stage of organizational decline? a. Managers wrongly assume that they can easily correct the problems, so they don't feel the situation is urgent. b. Management announce belt-tightening plans designed to cut costs, increase efficiency, and restore profits. c. Cutbacks and layoffs will have reduced the level of talent among employees. d. The company is dissolved through bankruptcy proceedings or by selling assets in order to pay suppliers, banks, and creditors. e. Key managers fail to recognize the internal or external changes that will harm their organizations.
A
The purpose of a _____ strategy is to increase profits, revenues, market share, or the number of places (stores, offices, locations) in which the company does business. a. retrenchment b. divestment c. growth d. niche e. recovery
C
The strategy-making process begins with: a. satisficing. b. the finalization of strategic alternatives. c. the assessment of the need for strategic change. d. a situation analysis. e. the evaluation of alternatives.
C
Which of the following is an example of a common approach to corporate-level strategy? a. Focus strategies b. Adaptive strategies c. Grand strategies d. ROI strategies e. Positioning strategies
C
_____ are defined as workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged. a. Homogeneous work environments b. Hierarchical work stations c. Creative work environments d. Bureaucratic work teams e. Centralized work envvironments
C
_____ consists of the strategic actions that a company takes to return to a growth strategy. a. Focus b. Stability c. Recovery d. Portfolio e. Differentiation
C
_____ is defined as the knowledge, tools, and techniques used to transform inputs into outputs. a. Entropy b. Deskilling c. Technology d. Creativity e. Synergy
C
Which of the following should be a key issue for a company once it decides to go global?
strike the right balance between global consistency and local adaptation
A(n) ________ is a direct tax on imported goods.
tariff
The two general kinds of trade barriers are _______.
tariff barriers and non-tariff barriers
Which of the following is a common factor of global new ventures?
the development and communication of a company's global vision from inception by the founders.
______ is the most important factor in determining the success or failure of an international assignment.
the willingness of an expatriate's spouse and family to adjust to a foreign culture.
An expatriate is someone who ______.
lives and works outside his or her own country
Managing global joint ventures can be difficult because they:
represent a merging of four cultures
Which of the following is NOT a part of the experiential approach to innovation? a. Design lockout b. Hands-on experience to reduce uncertainty c. Design iterations d. Multifunctional teams e. Testing
A
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. a. cycle b. continuum c. lockout d. hierarchy e. process
A
A(n) _____ strategy is a corporate strategy that addresses the question "How should we compete in this line of business?" a. industry-level b. operations-level c. niche-specific d. SBU-level e. firm-level
A
Budgets are a type of ____ plans. a. operational b. policy c. actionable d. tactical e. strategic
A
Companies often choose a _____ strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth. a. stability b. pioneering c. portfolio d. retrenchment e. growth
A
In _____, the old technology and several different new technologies fight to establish a new technological standard or dominant design. a. design competition b. design substitution c. technological lockout d. incremental change e. modular management
A
In the context of the strategic reference point theory, the _____ strategy aims to protect an existing competitive advantage. a. risk-avoiding b. deskilling c. divesting d. risk-seeking e. risk-extension
A
Organizational _____ is the successful implementation of creative ideas in organizations. a. innovation b. deployment c. change d. creativity e. development
A
Organizations can achieve a _____ by using their resources to provide greater value for customers than competitors can. a. competitive advantage b. strategic dissonance c. distinctive competence d. strategic reference point e. competitive inertia
A
The three steps in the basic process of managing organizational change outlined by Kurt Lewin are ____. a. unfreezing, change intervention, and refreezing b. change control, change mobilization, and change acceptance c. synthesizing, motivating, and rewarding d. organizational change, departmental change, and individual change e. change definition, change motivation, and change
A
_____ is a discrepancy between a company's intended strategy and the strategic actions managers take when actually implementing that strategy. a. Strategic dissonance b. Competitive dissonance c. Cstomer inertia d. Competitive inertia e. Differentiation discrepancy
A
_____ is a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio. a. Diversification b. Differentiation c. Strategic dissonance d. Acquisition e. Recovery
A
_____ is defined as the purchase of a company by another company. a. Acquisition b. Diversification c. Differentiation d. Downsizing e. Recovery
A
_____ is the measure of the intensity of competitive behavior between companies in an industry. a. Character of the rivalry b. Character of culture c. Process gain d. Anti-competitiveness e. Competitive barrier
A
_____ planning allows companies to maintain flexibility by making small simultaneous investments in many alternative plans. a. Options-based b. Functional c. Operational d. Strategic e. Action-based
A
_____ plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission. a. Tactical b. Single-use c. Visionary d. Operational e. Strategic
A
______ 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. a. Resources b. Grand strategies c. Distinctive competencies d. Competitive advantages e. Strategic stances
A
A(n) _____ is a brief, two-sentence statement of a company's purpose for existing. a. policy b. organizational mission c. action plan d. budget e. standing plan
B
According to social psychologist Kurt Lewin, _____ lead to differences in the form, quality, or condition of an organization over time. a. generational changes b. change forces c. freezing forces d. inertia forces e. resistance forces
B
According to the S.M.A.R.T. guidelines, goals should be ____. a. actionable b. measurable c. rational d. broad e. nonspecific
B
Nearly all technology cycles follow the typical _____ pattern of innovation. a. contingency b. S-curve c. bell-shaped d. lockout e. W-curve
B
Over the long run, the best way for a company to sustain competitive advantage is to create _____ year after year. a. slack resources b. innovation streams c. innovation maps d. entropies e. cognitive dissonances
B
Which of the following is the first step in management by objectives? a. Preparing worker schedules b. Discussing possible goals c. Centralizing decision making power d. Reviewing progress towards goal achievement e. Developing operational plans
B
Who among the following is responsible for developing operational plans? a. Board of directors b. Lower-level managers c. Top managers d. Shareholders e. Middle managers
B
____ is the process of choosing a solution from available alternatives. a. Environmental scanning b. Decision making c. Divesting d. Deskilling e. Self-dealing
B
____ occurs when managers choose an alternative that is good enough, rather than the best possible alternative. a. Budgeting b. Satisficing c. Optimizing d. Alternating e. Maximizing
B
_____ are the central companies in a strategic group. a. Cash cows b. Core firms c. Secondary firms d. Dogs e. Question marks
B
_____ occurs when customers purchase new technologies to replace older technologies. a. Entropy b. Technological substitution c. Incremental environmental change d. Organizational synergy e. Transition management
B
A ____ exists when there is a gap between a desired state (what managers want) and an existing state (the situation that the managers are facing). a. minimum threshold b. benchmark c. problem d. condition of certainty e. service gap
C
A _____ is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment. a. differentiation analysis b. firm-level strategy c. situational analysis d. competitive deskilling e. market audit
C
A company that is seeking to grow by taking risks and looking for innovations is best characterized as a(n) _____. a. reactor b. analyzer c. prospector d. defender e. innovator
C
A _____ resource is a resource that is not controlled or possessed by many competing firms. a. perfectly imitable b. substitutable c. slack d. rare e. capital
D
Groupthink occurs in ____. a. groups in which members have dissimilar backgrounds b. standing committees whose members are under no pressure to agree c. newly formed groups whose members were arbitrarily selected and who are assigned to make programmed decisions d. highly cohesive groups where there is a great deal of pressure to agree with each other e. groups whose members are elected to serve as figureheads
D
Management by objectives (MBO) is a management technique often used to develop and carry out. a. visionary plans b. standing plans c. single-use plans d. tactical plans e. operational plans
D
The _____ approach to innovation assumes that innovation is occurring within a highly uncertain environment. a. technological disruption b. generational change c. technological substitution d. experiential e. compression
D
Which of the following is a characteristic of discontinuous change? a. Synergy b. Incremental change c. Innovative reciprocity d. Design competition e. Entropy
D
Which of the following is an accepted method for tracking progress toward goal achievement? a. Data warehousing and data mining b. Practicing planner detachment c. Setting response and stimulus goals d. Gathering and providing performance feedback e. Using micromanagement techniques
D
Which of the following is an example of core capabilities of an organization? a. The organization's customer share. b. The organization's overhead costs. c. The organization's balance sheet. d. The organization's skill in maintaining large inventories effectively. e. The popularity of products and services sold by the organization
D
Which of the following is the most specific type of standing plan? a. Budgets b. Policies c. MBO plans d. Rules and regulations e. Procedures
D
Who among the following is responsible for the creation of tactical plans? a. Lower-level managers b. Top managers c. Team leaders d. Middle managers e. Facilities team
D
____ is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. a. Benchmarking b. Problem identification c. Keystoning d. Rational decision making e. Multivariable selection
D
____ is the phase of a technology cycle characterized by technological substitution and design competition. a. The technological growth stage b. Change substitution c. Technological lockout d. Discontinuous change e. Technological adaptation
D
_____ strategies typically work in market niches that competitors have overlooked or have difficulty serving. a. Unrelated diversification b. Deskilling c. Mass production d. Focus e. Entropy
D
A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. These methods are _____. a. action plans b. tactical plans c. visionary plans d. single-use plans e. standing plans
E
A technology can become a dominant design if: a. it is not considered as a market standard. b. it is extensively used by a small number of people. c. it is the most expensive technology in the market. d. it resembles an old technology. e. it solves a practical problem.
E
An industry-level strategy that is best suited to changes in the organization's external environment is a(n)_____ strategy. a. growth b. differentiation c. positioning d. diversification e. adaptive
E
It is appropriate to use a(n) _____ approach to manage innovation in more certain environments, in which the goals are lower costs and incremental improvements in the performance and function of an existing technological design. a. prototypical b. experiential c. reinforcement d. milestones e. compression
E
______ is associated with the risk of major changes in governmental regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events.
political uncertainty
Organizational development _____. a. takes a short-range approach to change b. assumes that top management support is only optional for change c. creates change by coercing workers and managers to change ideas, beliefs, and behaviors d. emphasizes resistance forces e. emphasizes employee participation in diagnosing, solving, and evaluating problems
E
The _____ is a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share. This strategy helps them to decide how to invest corporate funds. a. portfolio management matrix b. Maslow grid c. SWOT matrix d. investment matrix e. BCG matrix
E
The most popular approach to increasing goal commitment is ____. a. management by mentoring b. getting top management's support c. assigning unattainable goals d. assigning goals to workers e. encouraging workers' participation in goal setting
E
The phases of a technology cycle within an innovation stream begins with: a. dominant design. b. design iteration. c. incremental change. d. discontinuous change. e. technological discontinuity.
E
The research on diversification in portfolio management indicates that the best approach is probably _____. a. related differentiation b. repositioning c. divestiture d. unrelated diversification e. related diversification
E
Top management is responsible for developing ____. a. tactical plans b. operational plans c. appraisal reports d. worker schedules e. strategic plans
E
When companies don't anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival, it results in _____. a. discontinuous change b. generational change c. design competition d. resistance to change e. organizational decline
E
When the first cell phone was released, only a few people could afford to buy it. Over the years, mobile manufacturers improved the phone designs and features and also reduced their cost to make them more affordable. This signaled the shift to the _____ stage of the technology cycle. a. technological discontinuity b. technological continuity c. dominant design d. discontinuous change e. incremental change
E
Which of the following is NOT one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability? a. Bargaining power of buyers b. Character of the rivalry c. Threat of substitute products d. Bargaining power of suppliers e. Organizational synergy
E
Which of the following is an advantage of planning? a. It creates a suitable environment for change. b. It fosters flexibility in the organization. c. It fixes all organizational problems. d. It allows organizations to adapt to change quickly. e. It encourages people to work harder for extended periods.
E
Which of the following is true about planning? a. It reduces effort from employees and managers. b. It fixes all organizational problems. c. It decreases persistence toward goals. d. It quickens needed adaptation. e. It helps managers create task strategies.
E
Which of the following statements about resistance to change is true? a. It increases when those affected by the change participate in its planning and implementation. b. It is minimal in conditions of certainty. c. It increases when employees are educated about the need for change. d. It increases when change efforts receive significant managerial support. e. It is caused by misunderstanding and distrust.
E
____ are types of standing plans. a. Transformational plans b. MBO guidelines c. Long-term tactical strategies d. Targeted plans e. Policies and procedures
E
____ is the emotional reaction that can occur when disagreements become personal rather than professional. a. Organizational disharmony b. Emotive empowerment c. C-type conflict d. Norm disruption e. A-type conflict
E
_____ is the rivalry between two companies that offer similar products and services, acknowledge each other as rivals, and act and react to each other's strategic actions. a. Competitive inertia b. Character of the rivalry c. Distinctive competence d. Differentiation e. Direct competition
E
__________ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries.
Subsidies
Most companies have used the ________ to successfully enter foreign markets.
phase model of globalization
A(n) ________ is an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country.
cooperative contract
______ is a method in which a company builds a new business or buys an existing business in a foreign country.
direct foreign investment
The most important factor in an attractive business climate is the ______.
easy access to growing markets
The General Agreement on Tariffs and Trade (GATT):
eliminated tariffs in 10 specific industries
_______ occurs when a company sells domestically produced products to customers in foreign countries.
exporting
Which of the following represents the correct sequence of the phase model of globalization?
exporting; cooperative contracts; strategic alliances; wholly owned affiliates
According to Hofstede's research on cultural dimensions, _______ cultures emphasize the importance of relationships, modesty, caring for the weak, and quality of life.
feminine
Hofstede's research has shown that there are _______.
five consistent dimensions of cultural differences across countries
_______ are two kinds of cooperative contracts.
franchising and licensing
Global Buisness:
is the buying and selling of goods and services to people from different countries
Which of the following is true of global business?
it is the buying and selling of goods and services by people from different countries
A _______ is a strategic alliance in which two existing companies collaborate to form a third, independent company.
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
The term ______ is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured, ambiguous, and unpredictable situations.
uncertainty avoidance