BUS 134-70 - TEST 2 - Chapters 4 through 7

____ are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged. a. Creative work environments b. Innovative societies c. Participative work teams d. Empathetic work stations e. Homogeneous work environments

a. Creative work environments

The acronym GATT stands for the ____. a. General Agreement on Tariffs and Trade b. Global Arrangement for Trade and Taxes c. Global Agreement on Temporal Trade d. Governing Agreement on Trade and Transactions e. Government Aid of Trade and Transactions

a. General Agreement on Tariffs and Trade

Nearly all technology cycles follow the typical ____ pattern of innovation. a. S-curve b. bell-shaped c. W-curve d. V-shaped e. U-curve

a. S-curve

The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the ____. a. World Trade Organization b. Asian Free Trade Arrangement c. Maastricht Treaty of Europe d. Mercosur e. North American Free Trade Agreement

a. World Trade Organization

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? a. planning b. motivating c. research and development d. optimizing e. marketing

a. planning

Management by objectives (MBO) is a management technique often used to develop and carry out ____. a. tactical plans b. standing plans c. hierarchical plans d. operational plans e. single-use plans

a. tactical plans

Which of the following organizations are most directly in competition with each other? a. an independent bookstore and a library b. FedEx and UPS c. a local flower shop and a grocery store that sells flowers d. HBO and UPN television network e. Kmart and Gap

b. FedEx and UPS

____ are the targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage. a. Strategic monitors b. Strategic reference points c. Imperfectly imitable resources d. Differentiation targets e. Strategic focus points

b. Strategic reference points

____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries. a. Cooperative contracts b. Subsidies c. Tariffs d. Quotas e. Voluntary export restraints

b. Subsidies

Protectionism is the use of trade barriers to protect local companies and their workers from ____. a. all of these b. foreign competition c. patent violations d. international unions e. trademark infringements

b. foreign competition

The last step in effective planning is to ____. a. track progress toward goal achievement b. maintain flexibility in planning c. develop goal commitment d. develop long-term action plans e. acculturate the employees

b. maintain flexibility in planning

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 ____. a. the use of local adaptation strategy b. none of these c. the ability to respond quickly and efficiently to any changes in the external environment d. the development of culturally-specific implementation policies e. a mechanistic organizational culture

b. none of these

A(n) ____ resource is a resource that is not controlled or possessed by many competing firms. a. strategically dissonant b. rare c. permanent d. imperfectly imitable e. nonsubstitutable

b. rare

According to strategic reference point theory, managers have two basic strategic alternatives. They are ____. a. none of these b. risk-avoiding strategy and risk-seeking strategy c. risk-maintenance strategy and conflict-avoidance strategy d. frontal attack strategy and guerilla strategy e. risk-avoiding strategy and pioneering strategy

b. risk-avoiding strategy and risk-seeking strategy

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 ____. a. related differentiation b. unrelated diversification c. an integrated acquisition d. related diversification e. competency acquisition

b. unrelated diversification

____ is the phase of a technology cycle characterized by technological substitution and design competition. a. The era of dominant design b. Technological adaptation c. Discontinuous change d. Change substitution e. The technological growth stage

c. Discontinuous change

____ is used to assess how well managers and their families are likely to adjust to foreign cultures. a. sociocultural analysis b. sensitivity screening c. adaptability screening d. cultural awareness screening e. sociocultural diagnostics

c. adaptability screening

The use of ____ in planning produces a false sense of certainty and is often cited as one of the major pitfalls of planning. a. benchmarking b. tactics c. assumptions d. detachment e. commitmen

c. assumptions

Planning is ultimately based upon ____. a. how a planner deals with bounded rationality b. the relationship between organizational line and staff personnel c. choosing a goal and developing a method or strategy to achieve that goal d. whether the mission statement is internally or externally oriented e. the personality type of the individual engaged in planning

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

What is the first step for managing innovation during discontinuous change? a. supplier involvement b. the establishment of a dominant design c. design iteration d. process duplication e. budgeting

c. design iteration

When Coca-Cola acquired a water-treatment and bottling plant so it could produce and market Dasani brand bottled water, it was an example of ____. a. niche marketing b. a repositioning strategy c. external growth d. internal growth e. a retrenchment strategy

c. external growth

Which of the following is NOT a part of the experiential approach to innovation? a. testing b. multifunctional teams c. initiative conversations d. design iterations e. hands-on experience to reduce uncertainty

c. initiative conversations

Organizational ____ is the successful implementation of creative ideas in organizations. a. deployment b. creativity c. innovation d. change e. development

c. innovation

Patterns of innovation over time that can create sustainable competitive advantage are called ____. a. results-driven change b. organization development c. innovation streams d. innovation maps e. cyclical inventions

c. innovation streams

_______ 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. distinctive competencies b. strategic stances c. resources d. competitive advantages e. grand strategies

c. resources

Which of the following is one of the sources of resistance to change? a. a dynamic organizational culture b. multifunctional teams c. self-interest d. sustainable status quo e. discontinuous innovation

c. self-interest

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. a. firm-level strategy b. market audit c. situational analysis d. differentiation analysis e. competitive advantage

c. situational analysis

The development of the DVD player was a source of ____ to companies in the movie industry just as VHS tapes had once been. a. planned shrinkage b. creativity reengineering c. technological discontinuity d. technological replacement e. a sustainable competitive advantage

c. technological discontinuity

____ is a method of investment in which a company builds a new business or buys an existing business in a foreign country. a. Direct exporting b. A global new venture c. A strategic alliance d. Direct foreign investment e. A joint venture

d. Direct foreign investment

Which of the following is NOT one of the characteristics of S.M.A.R.T. goals? a. Realistic b. Measurable c. Attainable d. Synergistic e. Timely

d. Synergistic

____ plans are plans that specify how a company will use resources, budgets, and people to accomplish specific goals within its mission. a. Dialectical b. Strategic c. Operational d. Tactical e. Single-use

d. Tactical

____ 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. a. Planning staff b. An action team c. A change agent d. Top management e. Middle management

d. Top management

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. a. strategic alliance b. direct investment c. joint venture d. cooperative contract e. exporting agreement

d. cooperative contract

In any organization, the ____ are the less visible, internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs. a. imperfectly imitable resources b. distinctive competencies c. valuable resources d. core capabilities e. sources of innovation

d. core capabilities

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. a. operational; tactical b. tactical; strategic c. proximal; distal d. distal; proximal e. operational; strategic

d. distal; proximal

Which of the following is a commonly used method for increasing goal commitment? a. keeping goals private b. all of these c. setting ethical goals d. encouraging worker participation in goal setting e. using ombudsman to set goals

d. encouraging worker participation in goal setting

Which of the following is an example of a common approach to corporate-level strategy? a. ROI strategies b. positioning strategies c. adaptive strategies d. grand strategies e. attacking strategies

d. grand strategies

The basic purpose of ____ planning is to leave commitments open by maintaining slack resources. a. traditional planning b. learning-based planning c. operant planning d. options-based planning e. the establishment of planning windows

d. options-based planning

The two general kinds of trade barriers are ____. a. qualitative and quantitative barriers b. government import standards and industry import standards c. nationalistic and geocentric barriers d. tariff barriers and nontariff barriers e. voluntary and involuntary barriers

d. tariff barriers and nontariff barriers

Global business is defined as____. a. only involves companies with more than 50 employees b. includes any sale of goods and services c. refers to sales made to people from different cultures, different regions, and different nations d. the buying and selling of goods and services to people from different countries e. is unregulated

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

When Clorox Corporation, a manufacturer of bleach and bleach-based cleaning products, acquired Kingsford Charcoal and Prime Choice brand steak sauce; it was an example of ____. a. competency acquisition b. an integrated acquisition c. related diversification d. unrelated diversification e. related differentiation

d. unrelated diversification

____ occurs when a company sells domestically produced products to customers in foreign countries. a. Franchising b. Direct foreign investment c. A joint venture d. Licensing e. Exporting

e. Exporting

____ forces support the status quo. a. Autonomous b. Generational c. Dialectical d. Experiential e. Resistance

e. Resistance

The first step in the strategy-making process is to ____. a. create a strategic budget b. evaluate the impact of changes on the internal environment c. choose strategic alternatives d. conduct a situation analysis e. assess the need for strategic change

e. assess the need for strategic change

The ____ approach to managing innovation assumes that innovation is a predictable process made up of a series of steps and that compressing the time it takes to complete those steps can speed up innovation. a. milestones b. generational c. prototypical d. dialectical e. compression

e. compression

One of the benefits of planning is how it ____. a. reduces employee turnover b. encourages people to work faster c. encourages people to try a variety of different ways to do others' jobs d. eliminates all discriminatory practices e. does none of these

e. does none of these

A ____ is a nontax method of increasing the cost or reducing the volume of imported goods. a. trade roadblock b. risk-aversive boycott c. subsidy quota d. tariff e. nontariff barrier

e. nontariff barrier

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 ____. a. corporate synergy b. organizational networking c. reverse engineering d. assembly networking e. organizational innovation

e. organizational innovation

The purpose of a ____ strategy is to turn around very poor company performance by shrinking the size or scope of the business. a. growth b. maturity c. repositioning d. stability e. retrenchment

e. retrenchment

Companies need to excel at managing ____ in order to successfully manage innovation streams. a. environmental design issues b. behavioral formality c. reciprocity d. innovation during synergistic change e. the sources of innovation

e. the sources of innovation