MGMT Chapters 8 + 9

The acronym GATT stands for the ____.

General Agreement on Tariffs and Trade

As Malta got ready for its admittance into the European Union (EU), all taxes on the importation of goods manufactured in Malta were eliminated. Malta was preparing to become part of a(n) ____.

regional trading zone

Zara clothing stores has developed a system that can order new fashions and deliver them to the store in only three weeks. It uses ____ to pass information to the next person in the line of development.

sequential interdependence

Like most large U.S. hospitals, University Health Care System spends an enormous amount on patient supplies. The hospital has more than 15,000 individual products that are purchased on a routine basis. Its purchasing manager instituted a hospital-wide purchasing policy that gave a specific code to each individual item. In other words, the purchasing manager engaged in ____.

standardization

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.

tariff

____ is the collection of activities that transform inputs into outputs that customer's value.

Organizational process

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

World Trade Organization

Ernst & Young, an international accounting and management consulting company, entered Hungary first by establishing a joint venture with a local firm. Ernst & Young later acquired the company with which it had the alliance. As a result Ernst & Young then had a(n) ____ in Hungary.

wholly owned affiliate

Nestlé is a company headquartered in Switzerland with manufacturing plants in Columbia, Australia, Canada, Egypt, Kenya, and more than 90 other nations. Nestlé is an example of a ____.

multinational corporation

Hallmark has four departments. These departments are (1) Flowers and Gifts, (2) Cards and E-cards, (3) Hallmark Collectibles, and (4) Photo Albums and Scrapbooks. Hallmark uses ____ departmentalization.

product

A cosmetics company that is considering entering the South American market would be especially interested in the discretionary income within that region. In other words, which of the following would be a determining factor in its global strategy?

purchasing power

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?

quotas

____ is the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish their jobs.

Autonomy

____ involves assigning direct authority and responsibility to a subordinate to complete tasks for which the manager is normally responsible.

Delegation of authority

____ determines the number, kind, and variety of tasks that individual workers perform in their jobs.

Job design

____ is characterized by simple, easy-to-learn steps; low variety; and high repetition.

Job specialization

____ departmentalization is notorious for confusion and conflict between project managers in different areas of the organization.

Matrix

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

North American Free Trade Agreement

Robert Mondavi Wineries entered into an agreement with Baron Philippe de Rothschild, owner of Boreaux's First Growth chateau, to produce a top quality wine in California. The two companies working together to create a new product is an example of ____.

a joint venture

When managers delegate work, three transfers occur. The three transfers are responsibility, authority, and ____.

accountability

Which of the following factors should be considered when choosing an office/manufacturing location in the Brazilian market for a U.S. company that operates cinemas and wants to open a chain of movie theatres there?

all of these

A country or region that has an attractive business climate for companies that want to go global has ____.

an effective but cost-efficient place to build an office or manufacturing site

Uganda is one of only two countries in the world that produce a mineral required in the manufacturing of cellular phones. A company which mines that rare mineral decided to not invest in the country due to a bloody civil war resulting from a change in rulers. The mining company used a(n) ____.

avoidance strategy

Organizational authority is traditionally characterized by ____.

chain of command

In a(n) ____, managers from different parts of the matrix report to matrix managers who help them sort out problems and conflicts.

complex matrix

The primary disadvantage of using wholly owned affiliates as the means of entering a foreign market is ____.

costs

The Green Giant consumer products company learned that it could not use their Jolly Green Giant character in parts of Asia where a green hat worn by a man signifies that he has an unfaithful wife. This is an example of a(n) ____ that influenced global marketing.

cultural difference

A manufacturer of acrylic and latex gloves sells to medical laboratories, to factories where employees handle chemicals, to companies that manufacture micro-tech equipment, and to cleaning services. Because it is organized to better satisfy the needs of each of its four target markets, the manufacturer uses ____ departmentalization.

customer

An Indian Catholic Cardinal's call for local church leaders to have more power and for papal authority to be distributed to lower levels within the Catholic hierarchy has elicited agreement from other church leaders in India. He also asserted that bishops should not have "to run to Rome for everything" and that canon law should be modified to allow the pope to share his authority. Vithayathil is calling for ____.

decentralization

As a consequence of the Industrial Revolution and its emphasis on specialization, institutions providing higher education developed strict departments that contained specialized functions. This organizational structure was perceived as a way to enhance the accumulation and dissemination of knowledge. Institutions providing higher education have traditionally used ____.

departmentalization

Kimberly-Clark is subdivided into organizational units called Kimberly-Clark Health Care, which provides products to hospitals, Kimberly-Clark Professional, which sells to businesses, and Kimberly-Clark Consumer, which sells the company's products to customers. From this information, you know that Kimberly-Clark uses ____.

departmentalization

The primary disadvantage of geographic departmentalization is ____.

duplication of resources

A country or region that has an attractive business climate for companies that want to go global has found an ____.

easy access to growing markets

Fran Wilson Creative Cosmetics is a medium-sized U.S. company that sells 1.5 million tubes of its lipstick annually in Japan. It has no physical presence within the country beyond the fact its products are sold there. Fran Wilson Creative Cosmetics uses ____ to reach the Japanese market.

exporting

Which of the following types of global organization is most likely to suffer problems associated with being culture bound?

franchising

Global business is defined as____. the buying and selling of goods and services to people

from different countries

Which of the following types of departmentalization does NOT have a problem with the duplication of resources?

functional

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.

global consistency

In a multinational firm, managers at company headquarters typically prefer an emphasis on ____ because it simplifies decisions.

global consistency

New companies with sales, employees, and financing in different countries that are found with an active global strategy are called ____.

global new ventures

The central concern of the job characteristics model (JCM) is ____.

internal motivation

The job design approach associated with ____ involves increasing the number of different tasks that a worker performs within one particular job and giving workers the authority and control to make meaningful decisions about their work.

job enlargement and job enrichment

A ____ is a strategic alliance in which two existing companies collaborate to form a third, independent company.

joint venture

Decentralization ____.

leads to faster decision making and more satisfied customers and employees

Of all types of departmentalization, ____ departmentalization requires the highest level of management skill for successful implementation.

matrix

The primary advantage of ____ departmentalization is the fact that it allows companies to manage large, complex tasks efficiently by minimizing duplication.

matrix

A(n) ____ organization is an organization that is characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; and a rigid chain of command based on centralized authority and vertical communication.

mechanistic

In a(n) ____ organization, the normal procedure for dealing with any matter lying outside the boundaries of one individual's functional responsibility is to refer it to the point in the system where such responsibility is known to reside, or, failing that, to lay it before one's superior.

mechanistic

All global new ventures share two common factors. One is the bringing of a good or service to several different foreign markets at the same time. The other is ____.

none of these

Historically, most companies have used the ____ to successfully enter foreign markets.

phase model of globalization