MAN4720 Final Review Vocab Prep
21st century managing challenges
1. Deciding whether the process should be more an art or a science 2. Deciding whether strategies should be visible or hidden from stakeholders 3. Deciding whether the process should be more top-down or bottom-up in their firm
true
According to Alvin Toffler, future shock occurs when the nature, type, and speed of changes overpower an individual's or organization's ability and capacity to adapt.
foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets
All of the following are potential disadvantages to initiating, continuing, or expanding business across national borders EXCEPT
adopted or soon plan to use
Already the European Union and 113 nations including Australia, Mexico, and Canada have ________ IFRS rules.
global challenge
America's economy is becoming much less American. A world economy and monetary system are emerging. Markets are shifting rapidly and in many cases converging in tastes, trends, and prices. This is the
time
Americans place an exceptionally high priority on _____, viewing it as an asset. Many foreigners place more worth on relationships.
Israel and Japan
As of 2012 which of the following countries had a top corporate tax rate below 30 percent?
true
Before entering international markets, firms should do research to try and diminish the risk of doing business in new markets.
true
Business ethics can be defined as principles of conduct within organizations that guide decision making and behavior.
position
Competitive advantage normally is the result of superiority in resources, skills, or
true
Each year, Fortune publishes strategy-evaluation research on both the United States and other countries.
Mexico
Employers in _____ seek workers who are agreeable, respectful, and obedient, rather than innovative, creative, and independent.
over 20 million
Environmental advocacy groups now have ________ Americans as members.
13.5
Exports of goods and services from the United States account for only ___ percent of U.S. gross domestic product
increase investor scrutiny of the firm
If a firm has a bad sustainability record this will
true
In China, business relations revolve around guanxi, or personal relations.
true
In China, one should eat heartily to demonstrate enjoyment of the food.
moving environmental affairs from the staff side of the organization to the line side
In an effort to manage ecological challenges, many companies are
middle-level and lower-level managers, and even non-managers, should be involved in the strategic planning process
Increased education and diversity of the workforce at all levels are reasons why
false
It is possible to obtain insurance from the U.S. Government's OPIC to eliminate all risks associated with doing business internationally.
false
Joint ventures and partnerships between domestic and foreign firms are becoming the exception rather than the rule.
all of these
Managers and employees today must be careful not to ignore, conceal, or disregard a pollution problem or they could
5
Many African and non-African companies are launching operations in Africa due to the rapidly growing middle class and an average GDP growth of ___ percent for the continent through 2017
India
People in _____ do not like to say "no," verbally or nonverbally. Rather than disappoint you, they often will say something is not available, or will offer you the response that they think you want to hear, or will be vague with you
3, 1
Personal touching and distance norms differ around the world. Americans generally stand about ___ feet from each other when carrying on business conversations, but Arabs and Africans stand about ___ foot apart.
true
Protectionism refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people.
Chinese
The _____ rarely do business with companies or people they do not know
true
The accounting switch from GAAP to IFRS in the United States is going to result in substantial costs to businesses for fees, upgraded software systems, and training.
true
The availability, depth, and reliability of economic and marketing information in different countries vary extensively.
Mexico
The country of_____ is now (2015) the fourth largest auto exporter in the world, behind Japan, Germany, and South Korea.
germany
The percentage of persons age 65 or older exceeds 20 percent in Japan, Italy, and
foster mutual understanding and trust
The strategy-evaluation process should
mutual understanding
The strategy-evaluation process should foster
true
The underpinnings of strategic management hinge on managers gaining an understanding of competitors, markets, prices, suppliers, distributors, governments, creditors, shareholders, and customers worldwide
false
There are no countries that favor or engage in commercial whaling today.
Vietnam
Unlike another communist country, North Korea, _____ is booming for business
IKEA
What firm was mentioned in the text book as having recently opened 25 new stores in India?
Japanese
When confronted with disturbing questions or opinions, _____ managers tend to remain silent.
furniture manufacturing
Which of the following U.S. industries is NOT yet greatly challenged by foreign competitors?
product life cycles
Which of the following is NOT a reason for the increasing difficulty of evaluating strategies?
impulsive
Which of the following is NOT a typical characteristic of most Japanese managers?
Italy
Which of the following is a European country in which union membership is growing?
Milton Friedman
_____ _____ asserts that organizations have no obligation to do any more for society than is legally required.
Ralph Nader
_____ _____ proclaims that organizations have tremendous social obligations.
social policy
concerns what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups
auditing
defined by the American Accounting Association (AAA) as "a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events to ascertain the degree of correspondence between these assertions and established criteria, and communicating the results to interested users"
ISO 14000
family of standards concerns the extent to which a firm minimizes harmful effects on the environment caused by its activities and continually monitors and improves its own environmental performance
inhwa
harmony based on respect of hierarchical relationships including obedience to authority
measuring organizational performance
includes comparing expected results to actual results, investigating deviations from plans, evaluating individual performance, and examining progress being made toward meeting stated objectives
global strategy
includes designing, producing, and marketing products with global needs in mind, instead of considering individual countries alone
strategy evaluation
initiates managerial questioning of expectations and assumptions, should trigger a review of objectives and values, and should stimulate creativity in generating alternatives and formulating criteria of evaluation
bribe
is a gift bestowed to influence a recipient's conduct
ISO 14000
refers to a series of voluntary standards in the environmental field
social responsibility
refers to actions an organization takes beyond what is legally required to protect or enhance the well-being of living things
protectionism
refers to countries imposing tariffs, taxes, and regulations on firms outside the country to favor their own companies and people
sustainability
refers to the extent that an organization's operations and actions protect, mend, and preserve rather than harm or destroy the natural environment
true
"Welcome bad news" is one of six guidelines for effective strategic management offered by R. T. Lenz.
double
The World Bank says food demand across Africa will _____ between 2012 and 2020
Africa
Currencies in _____ are stabilizing and many countries are fund-raising to build modern highways, ports, and power grids
true
A rising tide of consciousness about the importance of business ethics is sweeping the United States and the rest of the world.
false
Bad ethics can derail all but the best strategic plans.
organic
Consumers are flocking to _____ products
true
Consumers expect humane treatment of animals
on a continuous basis
Strategy-evaluation activities should ideally be performed
punctuality
_____ is a valued personal trait when conducting business in the United States, but it is not revered in many of the world's societies.
the balanced scorecard approach to strategy evaluation
aims to balance longterm with short-term concerns, to balance financial with nonfinancial concerns, and to balance internal with external concerns
workplace romance
is an intimate relationship between two consenting employees
bribery
is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or other person in discharge of a public or legal duty
guanxi
personal relations
revised IFE matrix
should focus on changes in the organization's management, marketing, finance and accounting, production and operations, research and development (R&D), and management information systems (MIS) strengths and weaknesses; should indicate how effective a firm's strategies have been in response to key opportunities and threats
consonance, consistency, advantage and feasability
strategy evaluation criteria
false
Measuring organizational performance requires making changes to reposition a firm competitively for the future.
all of these
Modern organizational realities demand that employees demonstrate greater
future shock
occurs when the nature, types, and speed of changes overpower an individual's or organization's ability and capacity to adapt
international firms or multinational corporations
organizations that conduct business operations across national borders
taking corrective actions
requires making changes to competitively reposition a firm for the future
feng shui
the practice of harnessing natural forces
7 principles of admirable business ethics
1. Be trustworthy 2. Be open-minded 3. Honor commitments and obligations 4. Do not misrepresent, exaggerate, or mislead 5. Be a visibly responsible community citizen 6. Utilize your accounting practice to eliminate questionable activities 7. Do unto others as you would have them do unto you
3 critical comparisons
1. Firm's performance over different time periods 2. Comparing the firm's performance to competitors' 3. Comparing the firm's performance to industry averages
Indonesia
A Pacific archipelago comprised of thousands of islands, _____'s stock market was the top performer in 2014 among all Asian countries, and was also the top performer in five out of the last seven years in Asia.
which can translate into improved negotiating power among important groups
A firm's power and prestige in domestic markets may be significantly enhanced if it competes globally
conservation of energy
A proactive environmental policy is likely to lead to
action-oriented; information-oriented
Controls need to be ________ rather than ________.
remain a domestic competitor
In an industry that is, or is rapidly becoming global, the riskiest possible posture is to
false
In order to be considered bribery, the gift offered must be either money or a physical item.
true
Many African and non-African companies are launching operations in Africa due to the rapidly growing middle class and an average GDP growth of 5 percent for the continent through 2017.
false
Many New Zealanders, supported by Japanese, are outraged about Australia's "large-scale" whaling operations in Antarctic.
collecctivity, individualism
Many cultures around the world value modesty, team spirit, _____, and patience much more than competitiveness and _____, which are so important in the United States
create strategic advantage
More and more firms believe that ethics training and an ethics culture
true
More and more firms believe that ethics training and an ethics culture create strategic advantage.
25, 3
Recently, ___ African countries held democratic elections, whereas two decades ago only ___ African countries were considered democracies
true
Recently, the United States and China each crushed over 6 tons of elephant ivory as part of a global effort to combat elephant poaching.
false
Some strategists agree with Ralph Nader, who asserts that organizations have no obligation to do any more for society than is legally required.
true
Spoken Chinese has more in common with spoken English than with spoken Japanese or Korean.
true
Taking corrective actions, requires making changes to competitively reposition a firm for the future.
Vietnam
Telecommunications companies in _____, such as Viettel Mobile and Vietnam Mobile Telecom Services, provide the lowest data prices in the world at just over $3 per gigabyte
true
The Balanced Scorecard approach addresses the question "How satisfied are the firm's customers?"
China
The International Monetary Fund (IMF) recently reported that _____, the world's most populous country, has overtaken the United States as the world's number-one economic powerhouse.
false
The U.S. Chamber of Commerce is against the accounting switch from GAAP to IFRS, saying it will cause cross-border commerce to decline.
Vietnamese
_____ are among the most prevalent watchers of videos on smartphones in the world
Mexican
_____ employers are paternalistic, providing workers with more than a paycheck, but in return they expect allegiance.
ISO 14001
________ is a set of standards in fields such as environmental auditing, performance evaluation, and labeling, that is adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly manner.
whistle blowing
________ refers to refers to employees reporting any unethical violations they discover or see in the firm.
globalization
is a process of doing business worldwide, so strategic decisions are made based on global profitability of the firm rather than just domestic considerations
competitive advantage
normally are the result of superiority in one of three areas: resources, skills, or position
sustainability report
reveals how a firm's operations impact the natural environment discloses to shareholders information about the firm's labor practices, product sourcing, energy efficiency, environmental impact, and business ethics practices
wa
stresses group harmony and social cohesion
sexual harrasment
unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature
inversion
whenever a U.S. firm acquires a foreign firm and adopts the firm's lower tax rate or establishes a holding company in a foreign country and adopts the firm's lower tax rate
nemaswashio
whereby Japanese workers expect supervisors to alert them privately of changes rather than informing them in a meeting
advantages of doing global business
1. Firms can gain new customers for their products. 2. Foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets. 3. Foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials or cheap labor. 4. Competitors in foreign markets may not exist, or competition may be less intense than in domestic markets. 5. Foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment. 6. Joint ventures can enable firms to learn the technology, culture, and business practices of other people and to make contacts with potential customers, suppliers, creditors, and distributors in foreign countries. 7. Economies of scale can be achieved from operation in global rather than solely domestic markets. 8. A firm's power and prestige in domestic markets may be significantly enhanced if the firm competes globally.
disadvantages of doing business globally
1. Foreign operations could be seized by nationalistic factions. 2. Firms confront different and often little-understood social, cultural, demographic, environmental, political, governmental, legal, technological, economic, and competitive forces. 3. Weaknesses of competitors in foreign lands are often overestimated, and strengths are often underestimated. 4. Language, culture, and value systems differ among countries, which can create barriers to communication. 5. Gaining an understanding of regional organizations is difficult. 6. Dealing with two or more monetary systems can complicate international business operations.
6 major requiremtnets of an EMS (Environmental Management System)
1. Show commitments to prevention of pollution, continual improvement in overall environmental performance, and compliance with all applicable statutory and regulatory requirements. 2. Identify all aspects of the organization's activities, products, and services that could have a significant impact on the environment, including those that are not regulated. 3. Set performance objectives and targets for the management system that link back to three policies: (1) prevention of pollution, (2) continual improvement, and (3) compliance. 4. Meet environmental objectives that include training employees, establishing work instructions and practices, and establishing the actual metrics by which the objectives and targets will be measured. 5. Conduct an audit operation of the EMS. 6. Take corrective actions when deviations from the EMS occur.
wildlife welfare
Consumers globally are becoming increasingly intolerant of any business or nation that directly or indirectly destroys wildlife, especially endangered wildlife, such as tigers, elephants, whales, songbirds, and coral reefs. This is in association with
false
Corporate social policy should be reaffirmed or changed during strategy implementation.
true
Corrective action in strategy evaluation is necessary to keep an organization on track toward achieving stated objectives.
true
The U.S. furniture manufacturing industry is not yet greatly challenged by foreign competitors.
offers insurance to offset some risks of doing business internationally
The U.S. government's OPIC
price, quality
The _____ and _____ of a firm's products and services must be competitive on a worldwide basis, not just on a local basis
false
To enhance effectiveness, R. T. Lenz recommends keeping the strategic management process routine.
code of business ethics
To ensure that the code of ethics is read, understood, believed, and remembered, periodic ethics workshops are needed to sensitize people to workplace circumstances in which ethics issues may arise
all of these
Which of the following is a corrective action a company might take to correct unfavorable variances?
Japanese
_____ place great importance on group loyalty and consensus, a concept called Wa.
Indians
_____ prefer to do business with those whom they have established a relationship built upon mutual trust and respect. Punctuality is important. Indians generally do not trust the legal system and someone's word is often sufficient to reach an agreement
Indonesia
_____'s currency is the rupiah and its economy is one of the fastest growing in Asia, behind China and the Philippines.
environmental management system (EMS)
a community or organization is required to put in place and implement a series of practices and procedures that, when taken together, result in this
generally accepted accounting principles (GAAP)
a set of accounting standards that is used in the preparation of financial statements
ISO 14001
a set of standards adopted by thousands of firms worldwide to certify to their constituencies that they are conducting business in an environmentally friendly manner
balanced scorecard
a strategy evaluation and control technique
international financial reporting standards (IFRS)
accounting standards, issued by the IASB, that have been adopted by many countries outside of the US
contingency plans
can be defined as alternative plans that can be put into effect if certain key events do not occur as expected
business ethics
can be defined as principles of conduct within organizations that guide decision making and behavior
feasibility
can the strategy be attempted within the physical, human, and financial resources of the enterprise
successful strategies
combine patience with a willingness to promptly take corrective actions when necessary
difficulties in strategy evaluation
complex environment, difficulty predicting future, number of variables, rapid rate of obsolescence, world events, and decreasing time span
consonance
refers to the need for strategies to examine sets of trends, as well as individual trends, in evaluating strategies