Management Ch. 5 + 6

What is meant by focus?

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

You are the president of Henry Motor Corp., and you see the great potential markets in Eastern Europe for personal transportation. Your plan is to purchase an old Soviet tank plant and convert it into an auto factory. The Russian government welcomes your plan, which is an example of

A direct investment

What term describes a group of firms or nations that agree to act as a monopoly and not compete with each other?

Cartel

You are the international marketing manager for Checker Burger, Inc., producer of a popular soy burger. There is an excellent market for your burgers in the republic of East Slabovia, a producer of high-quality brandy. The only problem is that East Slaboviar currency is not accepted on the international currency exchange. What can you do to help your trade?

Barter burgers for brandy

Which of the following refers to the initial stage of the product life cycle when the product is introduced?

Birth

What name is given to a business strategy in which the strategic business unit offers a unique good or service to a customer at a premium price?

Differentation

What term describes the purchase of overseas production and marketing facilities, in which a company may control the facilities outright, or it may be the majority stockholder in the company that controls the facilities?

Direct investment

What term describes what a firm does well relative to its competitors?

Distinctive competence

Which of the following characteristics relates to the North American Free Trade Agreement (NAFTA)?

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 manufactured products among the three countries

Which of the following refers to an economic and political union of 28 member nations that are located primarily in Europe?

European Union (EU)

What name is given to the ratio at which one nation's currency can be exchanged for another nation's currency or for gold?

Exchange rate

When a company produces a high-tech, expensive bicycle aimed at serious and affluent bike enthusiasts, it is using the business-level strategy called

Focus

If Peru wants to purchase machine parts from a German company but lacks German marks, it will probably go to which of the following institutions to borrow the marks?

IMF

_____ of a plan is where the organization goes from the "thinking" mode to the "doing" mode.

Implementation

According to Hofstede's cultural dimensions theory, _____ tend to be self-reliant and place a high level of importance on freedom and ambition, while _____ place more value on the team than the individual.

Individualists; collectivists

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

Licensing

What term describes a trade arrangement in which one company--the licensor--allows another company--the licensee--to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee, or royalty?

Licensing

"Improving people's lives by providing gas and electric services in a sustainable way -- affordable, reliable and clean" is an example of

Mission statement

Which of the following characteristics relates to dumping?

Occurs when a country or business firm sells products at less than what it costs to produce them

What term describes an international economic organization comprised of 30 countries that accept the basic principles of free-market economies and representative democracy, and that recommend and promote policies to improve the well-being of consumers and societies across the world?

Organization of Economic Cooperation and Development (OECD)

If it wants to reduce the dollars flowing out of the country, the United States can limit the number of garments being imported from China and Vietnam by imposing a

Quota

Most businesspeople engaged in international trade underestimate the importance of

Social and cultural differences

The agreement between Japan's Sony Corporation and the Swedish telecommunication company Ericsson to make mobile phones is an example of a

Strategic alliance

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

Strength

Which of the following characteristics relates to the product life cycle?

The cycle of birth, growth, maturity, and decline of a product

What is meant by corporate strategy?

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

What is an embargo?

The suspension of trade in a particular product by the government

Which of the following refers to the acquisition of goods in one country and the selling of them to buyers in another country?

Trading company

The ______ loans money to countries throughout the world for reconstruction and development, and also makes loans to poorer countries for infrastructure and social services purposes.

World Bank

In SWOT analysis, an environmental circumstance that is potentially beneficial for the firm is called

an oportunity

What is meant by decline?

b. The product life cycle stage marked by decreases in the product's market share

When Reebok has some of its athletic shoes produced by a Korean company, but the Reebok name still appears on the shoes, this illustrates

contract maufacturing

The first step in strategic planning is

determining the mission and strategic goals.

Your saltwater taffy, which you produce right next to the Pacific Ocean in Orchard Park, Oregon, has a national reputation. You sell all you can make, and people drive hundreds of miles to your shop to buy it. You have a

distinctive competence

You sell Gourmet Mushrooms (GMs) at $100 an ounce. You have a secret source of supply, jealously guarded. Your GMs are better than your competitors' mushrooms, and only the very wealthiest Americans buy them. You are using the business strategy called

focus

When Weseeyu, Inc., of Rochester, New York, sells contact lenses to people in Moscow, Russia, the company

is exporting the lens

At even the largest and most affluent corporation, the strategic management process begins with

limited resources

What name is given to the product life cycle stage when the product's market share either slows or has growth?

maturity

The purpose of a strategy is to

take advantage of what the organization does well, or hopes to do well

What term describes a business-level strategy aimed at achieving the overall lowest cost structure in an industry?

Cost leadership

When a nation pays for imports with its own goods, it is using:

Countertrade Agreement

What name is given to the sale of goods and services to foreign markets?

Exporting

What name is given to the final result that a firm wishes to achieve?

Goal

What are strategic goals?

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

What term is used to describe the product life cycle stage characterized by dramatic increases in the product's market share?

Growth

When a product has been on the market for many years, such as the automobile, and its growth is slow at best, what stage of the product life cycle is it said to be in?

Maturity

Which of the following refers to a set of activities intended to achieve goals, whether for an entire organization, department, or an individual?

Plan

Which of the following characteristics relates to a business-level strategy?

Plans that are intended to achieve operational goals

What is meant by importing?

Purchase of goods and services from foreign source