FM361 FINAL

Globalization of business first requires agreements between

countries, like the United States Mexico Canada Agreement

What is an example of a measure for the internal analysis area of the balanced scorecard?

customer satisfaction with speed of service

Myers-Briggs Type Indicator classifies personalities into 16 types. the test is

not supported by statistical testing

When talking about personality traits, the acronym OCEAN stands for

openness, conscientiousness, extraversion, agreeableness, and neuroticism

Not all players in an industry will be in direct competition with your organization. The first step in competitor analysis is to decide who your competitor is. For example,

Ford and Porsche both make cars, but Ford does not compete with Porsche

If you stop and take the time to ask yourself if you are being realistic about your skills, perceptions, and judgements, you are more likely to avoid which bias?

overconfidence bias

The practice of predictive analytics should be disciplined. that is, not only should guesses be made about the likelihood of future outcomes based on present trends, but also those predictions should be supported by

parallels from past experience

The general environment analysis is composed of broad societal dimensions influencing the industry or firms within it. The acronym for these dimensions is

PESTEL

is defined as the degree to which the abilities, knowledge, skills, and other characteristics of a person match the job demands.

Person-job fit

Jax manages a team of ten telemarketers. The composition of his team is as follows: three people are brand new; five have been at the company for two years; two have been there five years and are top sales earners. With his new members, Jax provides daily direction and support. His top earners run with the goals that they set, planning how to reach them on their own and reporting back to Jax when they reach their targets. The other five team members Jax coaches and trains every two months. What leadership style is Jax implementing with his team?

Situational leadership

Management creates performance measures to see how the company is doing. Profit and revenue are typical measures. When management includes broader strategic measures such as quality, customer retention, and learning, then they have created

a balanced scorecard

Without a planned allocation of resources, there is the risk of spending too much money in one or a few areas, thereby not having enough for other areas. The plan governing spending is often called

a budget

The GLOBE project identified differences in national culture. These nine dimensions include

power distance, uncertainty avoidance, and performance orientation

one of the advantages of ___________ is that it breaks down the decision into multiple steps and multiple criteria, so that people can discover where their differences lie, not just disagree. The weights and evaluations do not need to be objectively measurable in order to foster a productive discussion.

rational decision making

An employee's job satisfaction is strongly influenced by the

relationships the employee has with coworkers and managers

The first step in the strategy process includes

to define the vision, mission, and values statements of the organization

In 2017, the CEO of Netflix hired you as a strategic consultant to investigate music sales. What would you include as part of your VRIO analysis for Netflix?

Netflix's name is a valuable resource. Widely recognizable, the brand recognition could be leveraged to capture a portion of the streaming music market.

Perception has a tendency to be biased because of the contrast between our focus of attention and the unnoticed aspects of the environment. In a work setting, this can be problematic for managers because:

a manager with a preconceived idea focuses on seeing evidence to support their preconceived perception instead of seeing what is actually there

Mike's trading desk uses a delta-hedging strategy to reduce risk, which means they may need to adjust positions after larger rate market movements. Generally, traders arrive early, between 7 and 8 a.m., well ahead of economic announcements scheduled at 8:30 a.m. This isn't a formal rule. New traders gradually see the benefit and adjust their arrival time. This is an example of

a normative control

Facebook needs a catchy slogan for its value statement. One bland statement is "Facebook is a social utility that connects you with the people around you." Which seems to best express Facebook's added value to customers?

"Be Connected. Be Discovered. Be on Facebook."

The financial crisis of 2008 demonstrated the flaw in a bottom-up detailed approach to calculating risk. There are too many individual judgments that can be biased. Banks and bank regulators instead use a rule of thumb that bank capital should be 8-10 percent of the balance sheet. That is, managers rely on

a heuristic

A shoe manufacturer has created a decision tree with costs of different marketing strategies and the two possible outcomes from each strategy. What other data does the company need to include in the decision tree to calculate the expected values for each choice?

the probability of each outcome

In a group, the sum of knowledge, skills creativity, and expertise will always be greater than that of any individual member. If this greater resource base can be properly accessed and harnessed,

the result should be a greater number of more diverse and higher-quality solution ideas

A global company uses a transnational strategy when it

combines the efficiency of international operations with local adaptation

What traits have strong relations with leadership?

Drive, Desire to Lead, and Integrity

Perceptions of organizational justice affect employee attitudes toward the company. In general, employees want

a workplace characterized by fairness, where everyone is treated with equal respect and given equal opportunities

College basketball players make many quick decisions in the course of a game. They do not stop to analyze the alternatives, weigh criteria, or calculate optimal solutions. They have trained to develop

an intuitive decision style

Ngozi is a new manager at Vallee Manufacturing and she found that the company has added $1 million in debt recently to their account. This debt total is troubling to Ngozi, and she's been hired to help reset the business. What should she do first?

calculate appropriate ratios and compare them to other manufacturing companies

A company required every employee to wear their employee badge all day and use it to enter the building, and also to use the break room and bathroom. When company policies were changed surrounding use of various facilities, it was discovered that the company had collected individuals' habit data in a chart. It identified by name, how long each employee used the various facilities and when this did not sit well with employees, and word got out to the press, who put negative social pressure on the company. This example illustrates what cost of a control for that organization?

damage to company culture and reputation

In employee-focused leadership, the leader's focus is on

developing employees and inspiring them to follow the vision the leader has provided

Management is about successfully administering the many complex details involved in a business's operations. Leadership is about

establishing a direction and influencing others to follow

Doctors and specialists disagree about whether to treat patients who show low but not dangerously low thyroid hormone levels. That is, the standard of care for subclinical hypothyroidism is poorly defined. The opportunity here is to improve the profession's understanding with experiments and

evidence-based decision making

E-commerce includes online and smartphone sales. The younger the shopper, the more likely he or she is to conduct "business" using a smartphone. E-commerce refers to

exchanges or transactions that occur electronically

When employees have learned the basics of a foreign culture, the next step is to visit a neighborhood of the same ethnic background as the destination or, if the trainees are already in-country, then they move out to the "real world." Depending upon the conditions, a family may move into temporary housing so that they can meet their neighbors, shop for food, locate transportation, and just explore the area. To finish the exercise, trainees compare notes and share experiences with others. This process is called

field simulation training

Michael Porter defined classified competitive strategies based on a grid of price strategy and target markets. Redbox, a major DVD rental company, uses vending machines placed outside grocery stores and other retail outlets to rent DVDs for $1. There are ways to view movies even cheaper, such as through the flat-fee streaming video subscriptions offered by Netflix. But among firms that rent actual DVDs, Redbox offers unparalleled levels of low price and high convenience. What is Redbox's strategy in this grid?

focused low cost

Groups tend to avoid critical evaluation of ideas that the group favors, which increases the risk of the group making flawed decisions. This is the definition of

groupthink

Professor Claris does not give any tests in her class. She believes education should be an adventure, knowledge for its own sake, not a hurdle to jump. All students receive an "A" in her course. The students are happy, but the dean and the accreditation board are not. They would say:

if performance is not measured we cannot know whether standards have been met

An ________ is a method for a company to assess its market position relative to its competitors.

industry analysis

Altec Electronica Chihuahua is a Mexican producer of electronic products. The company's fragile electronics replacement parts were often damaged as they moved to customers. Altec designed a reusable packaging that protected the parts. Altec expects to see

lower product returns

The benefits of a healthy culture and atmosphere within an organization are significant. A healthy environment results in

more productive employees

The airlines are dependent on a very unstable international commodity, oil. Prices were over $140 per barrel in 2008 and fell to $30 per barrel in early 2016. Southwest Airlines scored a coup in 2007-2008 by hedging most of it fuel costs at $51 per barrel. Wars in the Middle East and hurricanes in Houston, Texas, affect the price of fuel. International supply chains mean

more risk of disruptions to supplies

Amazon relies on FedEx, UPS, the USPS, and others to deliver packages to consumers. These delivery companies are Amazon's

supply chain

Managers determine what the various parts of the organization must do for the organization to be successful in the near future (one year or less). To manage implementation of short-term plans, management needs

tactical controls

To improve quality, companies need to purchase new software and equipment, hire and train employees, conduct studies, and consult with experts. These activities add to

the cost of doing business

Exporting can be a way to test market demand for a product. Many companies turn to agents and/or distributors to represent them in foreign markets. This approach minimizes

the costs of participating overseas

Franklin Delano Roosevelt (FDR) and Martin Luther King Jr. were __________ leaders because they inspired others with a new vision of how society could be and led the changes to reach their goals.

transformational

A standardization strategy is used when a global company

treats the whole world as one market with little meaningful variation

Warren Buffett, the leader of Berkshire Hathaway, has devoted fans outside of the firm. Berkshire Hathaway's annual shareholders meeting has become a "pilgrimage" for people who believe in capitalism. Buffett exemplifies

truthfulness, optimism, and what many consider the "honest" way to achieve investing success.

Stable life goals that express what is most important to a person are:

values

An autocratic leader makes decisions

without significant employee involvement in the process

An example of a proactive feed-forward control is

Taking your car in for regular oil changes and maintenance checks.

Fiber optic cable laid in the late 1990s and early 2000s has connected the world in astonishing ways. Through the internet, travelers can stay in touch with their home country at almost no expense. It also means information businesses, like software companies,

compete in a global arena

Warren Buffett, a famous investor, has some guiding rules. One is "invest within your circle of competence," meaning if you don't understand the business, don't invest. He sold positions in Freddie Mac because he did not understand or like financial derivatives. He called derivatives "weapons of mass destruction." In the context of strategy, financial firms that use derivatives are

complex

Kira's office needs to agree on a new copier purchase. The group discusses the alternatives and all concerns. The group generally agrees on the recommendation. What method have they used to make a decision?

consensus

Employee attitude surveys are only beneficial if

the results of those surveys actually lead to substantial action and change.

The cell phone is one of the great innovations of recent decades. Yet the innovation has not come from any one place. The list of manufacturers includes Samsung, Apple, Lenovo, LG, Sony, Nokia, BlackBerry, and Xiaomi These manufacturers operate in South Korea, the United States, China, Japan, Canada and Finland The major parts suppliers are in over 20 countries. When your business competes on a global scale, it is more important than ever

to adapt and innovate

What is SWOT used for?

to analyze a business situation

Scale efficiencies are the cost advantages that enterprises obtain as fixed costs are spread out over more units of output. But some companies sacrifice scale efficiencies for responsiveness to local conditions. In these companies, country managers understand local laws, customs, and tastes and can decide how to meet them and increase sales. This global strategy is called

multi domestic

is the process through which an organization influences its members and subunits to act in ways that lead to the realization of organizational goals and objectives.

organizational control

The chief executive of Goldman Sachs, Lloyd Blankfein, said in 2009 that banks serve a social purpose and are "doing God's work. We help companies to grow by helping them to raise capital. Companies that grow create wealth. This, in turn, allows people to have jobs that create more growth and more wealth. It's a virtuous cycle." On the other hand, Goldman Sachs earned around $12 billion and would hand out more than $16 billion in year-end bonuses. The average employee earned $500,000 for the year. Despite the rhetoric, Blankfein's leadership was probably

transactional