Exam 2

Which of the following organizations are most directly in competition with each other?

FedEx and UPS

____ are both examples of cooperative contracts.

Franchising and licensing

____ plans direct the behavior, efforts, and priorities of operative employees for periods ranging from one to six months.

Operational

Which of the following statements about resistance to change is true?

Resistance to change will always occur; it is inevitable.

Companies that are following a ____ strategy would be most likely to try to improve the way in which they sell the same goods or services to the same customers.

Stability

Which of the following is NOT one of the characteristics of S.M.A.R.T. goals?

Synergistic

____ plans are plans that specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.

Tactical

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.

BCG matrix

Which of the following is a commonly used method for increasing goal commitment?

encouraging worker participation in goal setting

Backward compatibility is an important consideration for software users who are using an accounting program to facilitate their tax preparation and who want to use a newer version that has greater capacity. Therefore, many software manufacturers engage in ____.

generational change

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

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

group compensation

Groupthink occurs in ____.

highly cohesive groups where there is a great deal of pressure to agree with each other

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

imperfectly imitable

Companies in the chemical industry are struggling to attract the most talented college graduates. One of the biggest challenges facing these companies is attracting new talent to organizations with an "old economy" image. A situational analysis would term this challenge a(n) ____.

internal weakness

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

Discontinuous change in an innovation stream is characterized by ____.

technological substitution

Which of the following is one of the six steps in the rational decision-making process?

weight the criteria

policies and procedures

____ are types of standing plans.

Which of the following is a mechanism used to examine external threats and opportunities facing a firm as well as its internal strengths and weaknesses?

a situational analysis

An industry-level strategy that is best suited to changes in the organization's external environment is a(n)____.

adaptive

____ is the measure of the intensity of competitive behavior between companies in an industry.

Character of the rivalry

When Coca-Cola discovered it had an unauthorized bottler selling Coke in the Colombian jungle, it used the rational decision making process to find a solution. What do you know about the stage in which Coke evaluated its possible courses of action?

Coke found this stage to be the most time-consuming of all the stages

Which of the following is NOT one of the rules for effective brainstorming?

Select an open-minded group leader.

Tom Valerio was the point man on a major push to reinvent CIGNA Property & Casualty. His vision for CIGNA was to become a top-quartile, specialist property and casualty company. It was a radical proposition. During the organizational change, having this vision was especially important during the ____ stage.

change

Planning is ultimately based upon ____.

choosing a goal and developing a method or strategy to achieve that goal

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

costs

Planning works best when the goals and action plans at the ____ of the organization support the goals and action plans at the ____ of the organization.

bottom and middle; top

A(n) ____ is the individual who is formally in charge of guiding a change effort.

change agent

The highly fragmented chemical industry in Europe has experienced decreasing profits in an industry reluctance to change the way it conducts business, especially in how it competes against lower-priced U.S. imports. This is an example of ____.

competitive inertia

____ refers to the production of novel and useful ideas.

creativity

The most popular approach to increasing goal commitment is ____.

encouraging workers' participation in goal setting

The ____ is a decision-making method in which a panel of experts responds to questions and to each other until an agreement is reached on how a specific issue should be handled.

Delphi technique

The auto industry has been perfecting the internal combustion engine (ICE) for some 120 years. The Partnership for a New Generation of Vehicles (PNGV), a cooperative program between the Big Three and the U.S. government to replace ICEs with electric engines, has been operating since 1993. The internal combustion engine (ICE) is an example of ____.

a dominant design

Robert Mondavi Wineries entered into an agreement with Baron Philippe de Rothschild, owner of Bordeaux'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

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 ____.

a multinational corporation

When McDonald's entered into an agreement with a French entrepreneur who wanted to own and operate a McDonald's fast-food restaurant in Paris, McDonald's saw the new restaurant as an opportunity. Unfortunately, the restaurant in Paris was not maintained at the cleanliness standards prescribed by McDonald's (but acceptable to the cleanliness standards of the French). McDonald's brought legal action to have the restaurant closed. This example illustrates ____.

a problem with franchising in different cultures

Among companies who use the adaptive strategies, ____ blend the strategies used by ____.

analyzers; defenders and prospectors

Downsizing has thinned the ranks of hospital personnel. Hospital employees were adamantly resisting any more change. What method could hospital administrators use to manage this resistance?

any or all of these

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

assumptions

In the typical S-curve pattern of innovation, small amounts of effort will result in significant increases in performance ____.

at the midpoint of the cycle

While ____ is a problem strongly associated with top managers, ____ is a problem more likely to be associated with middle and lower-level managers.

competitive inertia; strategic dissonance

It is appropriate to use a(n) ____ approach to manage innovation in more certain environments during periods of incremental change, in which the goals are lower costs and incremental improvements in the performance and function of the existing technological design.

compression

A firm using a ____ strategy to prevent or reduce political risks will lobby foreign governments or international trade agencies to change laws, regulations, or trade barriers that hurt their business in that country.

control

What are the strategies that can be used to minimize or adapt to the political risk inherent to global business?

control, avoidance, and cooperative strategies

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

Kodak is a company associated with photography and has decided to become a market leader in digital imaging. Kodak can encourage the development of a culture where workers perceive that new ideas are welcomed by offering challenging work and supervisory encouragement. In other words, the company can create a(n) ____.

creative work environment

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

There are eight general steps for organizational development intervention. The first step is ____.

entry

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?

existing complementary products

Glassmaker AFG Industries positions itself as the primary supplier of glass used in microwave doors, shower doors, and patio tables. What type of a positioning strategy does the glass manufacturer use?

focus

The positioning strategies identified by Michael Porter are ____.

focus, cost leadership, and differentiation

The goal of a company was to reduce the expenses incurred by the sales force. A manager examining weekly expense sheets would be using which of the accepted methods for tracking progress toward goal achievement?

gathering and providing performance feedback

Which of the following is an accepted method for tracking progress toward goal achievement?

gathering and providing performance feedback

A news article on Latin America read, "Mexico is the closest Latin America gets to the U.S. both geographically and culturally." According to Hofstede, this means the Mexican culture ____.

has a masculine orientation

According to Hofstede, when people in a culture are oriented to the present and seek immediate gratification, that culture is described as ____.

having a short-term orientation

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

imperfectly imitable resources

During the ____ phase of a technology cycle, companies innovate by lowering the cost and improving the functioning and performance of the dominant design.

incremental change

Titleist has been manufacturing golf balls for several years, but each year it comes out with new golf ball designs. Titleist's development of the new Pro VI golf ball with a solid core designed to benefit players with high swing speeds is one example of how the manufacturer survives through ____.

incremental change

German chip manufacturer Infineon AG has joined with Motorola Inc. and Agere Systems Inc. to establish a new company to develop and license chip designs for cellphones. These three companies have created a ____.

joint venture

Sodima is a French cooperative that owns the name, the trade secrets, and the patents on Yoplait yogurt. General Mills pays Sodima for the right to sell Yoplait yogurt in the United States. This is an example of ____.

licensing

An expatriate is someone who ____.

lives and works outside of his or her own country

In terms of Hofstede's cultural differences, the people who are described as happy-go-lucky and are people who are comfortable with an unstructured life and deal well with sudden changes. In terms of Hofstede's cultural differences, these people have a ____.

low degree of uncertainty avoidance

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

measurable

____ can help organizations to maintain flexibility as they plan.

options-based planning

Starbucks is expanding its global operations into South America in spite of the real probability of civil wars and terrorist activities in many of the continent's nations. As Starbucks expands into South America, it must deal with ____.

political uncertainty

In case of a fire, most organizations have a series of actions that must take place beginning with notifying the fire department and include evacuating buildings. What kind of a standing plan is described in this example?

procedures

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 ____.

protectionism

Which of the following factors helps a company determine the growth potential of a foreign market?

purchasing power

To protect its farmers, Japan put limitations on the amount of mushrooms and leeks that could be imported into Japan from China. This limitation is an example of a(n) ____.

quota

The goals of the compression approach to innovation are ____.

speed, lower costs, and incremental change of dominant design

Companies often choose a ____ strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth.

stability

An organization is experiencing ____ when there is a discrepancy between upper management's intended strategy and the strategy actually implemented by the lower levels of management.

strategic dissonance

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

subsidies

A department store is experiencing greater than usual losses due to theft and management wants it stopped. Middle management decided to hire a security company to study the problem and develop the best plan for dealing with it. Middle management have implemented a(n) ____ plan.

tactical

An Australian manufacturer of surfboards wants to increase awareness of its brand in the U.S. market. A ____ plan to accomplish this objective might be to host a series of surfboard competitions in California .

tactical

When done correctly, management by objectives (MBO) is an extremely effective method for ____.

tactical planning

Kodak is a company associated with photography. The development of the digital camera forced Kodak into the innovation stream because the new imaging process was a(n) ____.

technological discontinuity

In order from beginning to end, the phases of a technology cycle within an innovation stream consist of ____.

technological discontinuity, discontinuous change, dominant design, and incremental change

In terms of innovation streams, what ____ occurred when customers purchased flat-screen computer monitors to replace the older, bulkier monitors.

technological substitution

The purchase of new technologies to replace older ones is an example of ___.

technological substitution

All global new ventures share two common factors. One is that the company founders successfully develop and communicate the company's global vision from the start. The other is ____.

the bringing of a good or service to several different foreign markets at the same time

Global business is defined as____.

the buying and selling of goods and services to people from different countries

Which of the following is a component of a creative work environment that encourages creativity?

the development of challenging work organizational encouragement the granting of autonomy the removal of organizational impediments all of these

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

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

____ is responsible for developing strategic plans that make clear how the company will serve customers and position itself against competitors in the next two to five years.

top management

Starbucks, the operator of Starbucks coffeehouses, also markets a line of compilation CDs and other non-coffee items. The making and marketing of the CDs and other non-coffee products would be an example of ____.

unrelated diversification

Ford Motor Company owns and operates a $1.9 billion manufacturing plant in Brazil. What method for organizing for global business has Ford used in this example?

wholly owned affiliate

Which of the following statements describes an advantage of the results-driven change approach to managing change?

All of these were cited as advantages of the results-driven change approach.

Which of the following statements about portfolio strategy is true?

Dysfunctional consequences can occur when companies are categorized.

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

Covisint is an e-commerce venture involving many car manufacturers that allows carmakers access to online auctions for buying component parts and materials. Because the idea of such a Web site was a new concept, the prototype site was built and tested, then revised and rebuilt for further testing before the Web site was ever offered to customers. The management concept of ____ was used to develop Covisint.

design iteration

Unverferth Manufacturing has been a manufacturer and supplier of innovative agricultural equipment since 1948. Recently it began developing a new 12-row subsoiler, which prepares 10-inch-wide seed beds spaced 40 inches apart. Before introducing the new tiller to the market, Unverferth developed and tested nearly three dozen product prototypes. Unverferth used ____ to produce the best possible tiller before introducing it to the market.

design iteration

An ad for a major brand of clothes washer reads, "Since our humble beginnings back in 1950, we have been dedicated to building machines with superior cleaning power, reliability, and style." This manufacturer is more than likely using which kind of positioning strategy?

differentiation

When a U.S. automaker learned that it took longer than any other U.S. car manufacturer to assemble a vehicle, it purchased newer, more flexible manufacturing systems to replace its older ones. Which stage of the technology cycle did it enter?

discontinuous change

A manufacturer of suntan lotion could set a(n) ____ goal to increase revenues by 8 percent over the next five years and a(n) ____ goal to increase sales next June in the Miami Beach area by 3 percent.

distal; proximal

While ____ are tangible, ____ are not.

distinctive competencies; core capabilities

The General Agreement on Tariffs and Trade (GATT) ____.

does all of these

Neither Chile nor Peru has a mass-market café culture, but that fact has not stopped Starbucks from trying to determine what can be done to make its coffee houses successful in those markets. By recognizing that people in these two South American countries do not drink coffee like people in the United States and that they should change this habit, Starbucks has begun a ____ process with problem identification.

rational decision making

____ is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions.

rational decision making

An organization which is a ____ in terms of its adaptive strategy would NOT follow a consistent strategy.

reactor

The research on diversification in portfolio management indicates that the best approach is probably ____.

related diversification

The General Electric workout is a special kind of ____.

results-driven change

If successful, which strategy is often followed by a growth strategy?

retrenchment

When doing an analysis of strategic groups to assess external environmental threats and opportunities, ____ firms are firms that use related but somewhat different strategies than ____ firms.

secondary; core