Ch. 5 & 6 Test

A definition of an organization's fundamental purpose and its basic philosophy

Mission

Effectively merged Canada, the United States, and Mexico into one market of about 400 million consumers by eliminating most tariffs and trade restrictions on agricultural and manufactures products among the three countries

NAFTA

Plans that are intended to achieve operational goals

Operational Goals

A set of activities intended to achieve goals, whether for an entire organization, department, or individual

Plan

What name is given to the evaluation of the organization's internal strengths and weakness and the opportunities and threats associated with the business's external environment?

SWOT Analysis

Plans that are intended to achieve strategic goals

Strategic Plans

Plans that are designed to achieve tactical goals

Tactical Plans

Selling products for less than they are worth

Dumping

A business strategy in which the business concentrates on one part or segment of the market and tries to meet the demands of that segment

Focus

What name is given to a form of licensing in which a company agrees to provide a name, logo, methods of operation, advertising, products, and other elements associated with the company business in return for a financial commitment and the agreement to conduct business in accordance with the company's standard of operations?

Franchising

What term describes the agreement between 10 Southeast Asian countries with the goal to promote economic growth and overall progress in the area via trade and security?

Association of Southeast Asian Nations

oversee the international monetary system and help ensure stable currencies and exchange rates throughout with world

Basic mission of IMF

the initial stage of the product life cycle when the product is introduced

Birth

A business ever strategy aimed at achieving the overall lowest cost structure in an industry

Cost leadership

A business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price

Differentiation

A global association of member countries that promotes free trade

WTO

Established and supported by the industrialized nations in 1946 to loan money to underdeveloped and developing countries

World Bank

Exporting that involves bartering products of other products instead of for currency

countertrade agreements

Market value of a nation's total output go goods

GDP

The final result that a firm wishes to achieve

Goal

the product life cycle stage characterized by dramatic increases in the product's market share

Growth

The physical facilities that support a country economic activities, such as railroads, highways, ports, airfields, utilities and power plants, etc.

Infrastructure

In SWOT analysis, an ability or attribute that a company possesses that may give it a distinctive competence is called...

a strength

The scope and resource deployment components of strategy for the enterprise as a whole

corporate strategy

The first step in strategic planning is..

determining the mission and strategic goals

MidAmerican Energy Holdings Company has doubled its wind energy capacity by installing windmills and high-tech batteries to make a "cleaner" utility company. In high-tech renewable energy, this company has a...

distinctive competence

The suspension of trade in a particular product by the government

embargo

Restrictions on the amount of a particular currency that may be bought or sold

exchange controls

The ratio at which one nation's currency can be exchanged for another nation's currency or gold is...

exchange rate

The sale of goods and services to foreign markets

exporting

A strategy in which organizations treat the entire world or major regions of it as the domain for conducting business

global business (globalization)

You are an apple farmer and spokesperson for the American Apple Association. You are faced with severe dumping from apple growers in another country, where apples grow wild and the people pay to pick apples as a form of recreation. To counter this threat, you are lobbying to congress and the president to...

impose a protective import tariff

Because many countries do not permit foreigners to purchase and operate facilities in their countries, a company wishing to do business in such a country may share the business costs with the host country by forming a...

joint venture

Miller Beer allows Canadian firm to use its name, formula, and brands in return for a royalty. This is known as...

licensing

a formal written declaration of the organization's missions

mission statement

Short-term goals that are addressed to first-line managers and usually apply to specific work operations that lead to the production of goods or services

operational goals

Most people engaged in international trade underestimate the importance of...

social and cultural differences

A partnership formed to create competitive advantage on a worldwide basis

strategic alliance

Goals set by higher managers that deal with such general topics as the firm's growth, new markets, or new goods and services

strategic goals

The intermediate goals of the firm, which are designed to stimulate actions necessary for achieving the strategic goals

tactical goals

Strategic planning differs from general planning in that is focuses on...

the external environment and long-term goals