Manangement Midterm Chapter 2
Legislation that gives preference to domestic producers is known as ____ legislation.
"buy national"
When Continental Airlines took employees outside the headquarters building in Houston to watch the firm's old policy manuals be set on fire by corporate managers, the company was trying to
"revitalize its culture" and "shock employees into changing their behavior."
strategic partner
(Strategically) An organization working together with one or more other organizations in a joint venture or similar arrangement
Which of the following actions represents an attempt to manage social responsibility by means of "ethical compliance"?
Creating a committee to write a code of conduct or review proposals concerning selection and promotion
Google's Droid and Apple's iPhone are best described as
competitors
Skype impacts the number of people who fly. This is an example of ____ to the airline industry.
competitors
All of the following are included in the task environment of organizations...
competitors, customers, regulators, suppliers NOT THE ECONOMY
The task environment includes all of the following
competitors, regulators, customers, and strategic allies NOT TECHNOLOGY
strategic alliance
cooperative arrangement between two or more firms for mutual gain
For a church, the congregation would be considered the
customer
For a private college, parents may be considered part of the ____ dimension of the task environment.
customer
The maquiladoras concept is a fairly recent approach to:
direct investment
Volkswagen built a factory in Mexico to manufacture cars for sale in North America. For Volkswagen this is an example of
direct investment
In Asia, consumers have historically had an aversion to debt. However, in recent years credit card use has grown significantly, supported by aggressive marketing and governments in the region that see it as a means to fuel economic growth. This is an example of the ____ dimension.
economic
Which of the following is part of the internal environment of organizations?
employees
When Disney and IBM refuse to advertise on websites that have no posted privacy policies, they are acting as
ethical leaders and privacy advocates.
Japanese steel producers voluntarily limit the amount of steel they export to the US. This is an example of a(n)
export restraint agreement.
When a locally new restaurant fears new competition from Applebee's, it is experiencing a change in its...
external environment
whistleblowing
he disclosure, by an employee, of illegal or unethical conduct on the part of others within the organization
France charges taxes on American fruits and vegetables that are sold in France. This is
import tariff
A(n) ____ strategy requires little initial investment, is heavily regulated, and provides little opportunity to modify products for local conditions.
importing/ exporting
Wine produced in California and sold in France is an example of
importing/exporting.
Your school's code of ethics includes the statement: "We do not cheat or tolerate those who do." You witness a classmate cheating, and decide to report it. Your action is
legal and ethical.
The NFL and Reebok footwear have a(n) ____ whereby Reebok makes footwear with NFL logos on it and pays a fee for each item sold.
licensing agreement
The ____ environment of a business that manufactures top-of-the-line cabinets includes computer- assisted design software that helps to convert wood and people's ideas into lovely, functional cabinets.
technological
importing
Bringing a good, service, or capital into the home country from abroad
board of directors
Governing body that is elected by a corporation's stockholders and charged with overseeing the general management of the firm to ensure that it is being run in a way that best serves the stockholders' interests
supplier
An organization that provides resources for other organizations
Sony is the first consumer electronics maker with a Google feature built into its TV sets. Sony and Google are an example of a(n)
strategic partner
Initially, Apple and AT&T had an agreement that allowed iPhones to only operate on AT&T networks. The two companies were
strategic partners.
When Charmed by Claire, a gift shop, purchases packaging materials from S. Walter Packaging Corp., S. Walter is acting as a ____ for the store.
supplier
tariff
tax collected on goods shipped across national boundaries
World Trade Organization (WTO
An organization, which currently includes 140 member nations and 32 observer countries, that requires members to open their markets to international trade and to follow WTO rules
In 2007, the EU had ____ countries.
27
regulator
A body that has the potential to control, legislate, or otherwise influence the organization's policies and practices
Which of the following is an element in an organization's internal environment?
A campus of facilities
code of ethics
A formal, written statement of the values and ethical standards that guide a firm's action
interest group
A group organized by its members to attempt to influence organizations
Sarbanes-Oxley Act of 2002
A law that requires CEOs and CFOs to vouch personally for the truthfulness and fairness of their firms' financial disclosures and imposes tough new measures to deter and punish corporate and accounting fraud and corruption
quota
A limit on the number or value of goods that can be traded
economic community
A set of countries that agree to markedly reduce or eliminate trade barriers among member nations (a formalized market system)
joint venture
A special type of strategic alliance in which the partners share in the ownership of an operation on an equity basis
General Agreement on Tariffs and Trade (GATT)
A trade agreement intended to promote international trade by reducing trade barriers and making it easier for all nations to compete in international markets
export restraint agreements
Accords reached by governments in which countries voluntarily limit the volume or value of goods they export to or import from one another
regulatory agency
An agency created by the government to regulate business activities
North American Free Trade Agreement (NAFTA)
An agreement between the United States, Canada, and Mexico to promote trade with one another
licensing
An arrangement whereby one company allows another company to use its brand name, trademark, technology, patent, copyright, or other assets in exchange for a royalty based on sales
ethics
An individual's personal beliefs about whether a behavior, action, or decision is right or wrong
competitor
An organization that competes with other organizations for resources
philanthropic giving
Awarding funds or gifts to charities or other worthy causes
ethical behavior
Behavior that conforms to generally accepted social norms
unethical behavior
Behavior that does not conform to generally accepted social norms
The Sarbanes-Oxley Act requires the ____ to vouch for the truthfulness and fairness of a firm's financial disclosures
CEO and CFO
Investors were worried about the stock market when unemployment was 10%, companies were slow to invest, and government debt was still increasing. These are aspects of which environment?
Economic
All of the following are competitors of GM EXCEPT
Edmunds'
Workers who purchase company stock have which dual roles in the internal environment?
Employee, owner
external environment
Everything outside an organization's boundaries that might affect it
Which of the following is NOT one of the alternative international strategies?
Lateral investment
maquiladoras
Light assembly plants that are built in northern Mexico close to the U.S. border and are given special tax breaks by the Mexican government
exporting
Making a product in the firm's domestic marketplace and selling it in another country
Which of the following statements can be used to explain the growth of international business?
Many countries in Europe and Asia were devastated after World War II and had to be rebuilt.
Which of the following represents an economic community?
North American Free Trade Agreement (NAFTA)
Which of the following is a true statement?
Organization culture shapes the behavior of employees, and thus impacts organizational effectiveness
Which of the following is part of the task environment for Wal-Mart Corporation?
Procter and Gamble (supplies Tide and many other products to Wal-Mart stores)
task environment
Specific organizations or groups that affect the organization
managerial ethics
Standards of behavior that guide individual managers in their work
Which of the following statements does NOT describe a characteristic of an organization's external environment?
The boundary between organization and its environment is quite specific and clearly defined
internal environment
The conditions and forces within an organization
ethical compliance
The extent to which an organization and its members follow basic ethical standards of behavior
legal compliance
The extent to which an organization complies with local, state, federal, and international laws
European Union (EU)
The first and most important international market system
political-legal dimension
The government regulation of business and the relationship between business and government
technological dimension
The methods available for converting resources into products or services
economic dimension
The overall health and vitality of the economic system in which the organization operates
social responsibility
The set of obligations that an organization has to protect and enhance the societal context in which it functions
organizational culture
The set of values, beliefs, behaviors, customs, and attitudes that helps the organization's members understand what it stands for, how it does things, and what it considers important
direct investment
When a firm builds or purchases operating facilities or subsidiaries in a different country from the one where it has its headquarters
owner
Whoever can claim property rights to an organization
customer
Whoever pays money to acquire an organization's products or services
General Mills and Nestlé established Cereal Partners Worldwide to better compete with Kellogg in Europe. This is an example of
a joint venture
When Sikorsky and Boeing agreed to produce a new helicopter for the Department of Defense, it was an example of
a strategic alliance
Which of the following could be considered a "customer"?
a. A college cafeteria b. A local hospital c. A retailer such as Target d. Your family ALL OF THESE
Under U.S. law, it is illegal for a U.S. firm operating in a foreign country to pay bribes to get what it needs. Natives of some of those same countries consider the payment of bribes to be perfectly acceptable. Which of the following influences may account for this difference?
a. Cultural differences b. Family influences c. Religious influences d. Value systems ALL OF THESE
For a company such as Johnson & Johnson that makes personal care products, medications, and medical supplies, which of the following would be considered as customers?
a. Hospitals b. Pharmacies c. Families d. Doctors ALL OF THESE
Which of the following is an example of an owner of a business?
a. Individual investors who buy stock in that business b. Partners c. People who have legal property rights to that business d. Individuals who finance and start up a new business' ALL OF THESE
Which of the following would you observe if you wanted to determine an organization's culture?
a. The physical appearance of the organization's facilities b. The level of formality or informality in communication c. Employees' dress and demeanor d. The types of stories workers tell about their job experiences ALL OF THESE
Potential outcomes of licensing agreements are
a. increased profits. b. prolonged profitability. c. inflexibility. d. franchising. ALL OF THESE
Managing organizational culture is likely to become more difficult when
a. the firm has recently undergone a merger. b. management has no clear idea of the desired culture. c. the firm has recently suffered from poor performance. ALL OF THESE
U.S. cola producers "voluntarily" limit the number of beverages that they export to India each year. This is an example of
an export restraint agreement.
Corporate governance is primarily the responsibility of the
board of directors.
New finance regulations plan to give shareholders the right to vote on executive compensation when executives leave the company. This will decrease the power of
board of directors.
All of the following are common arguments against social responsibility for organizations EXCEPT
business creates problems and should therefore help solve them.
general environment
mensions and forces in an organization's surroundings that determines its overall context
iPhone users filed class action lawsuits against Apple and AT&T stating that their exclusive agreement decreased competition and drove up prices. This is part of the ____ dimension of the general environment.
political-legal
The US Commerce Department has limited the amount of textiles that can be imported from China. This is an example of a(n)
quota
When NYC's Board of Health informed restaurants that they may not use trans fat in cooking and baking, the Board was acting as a ____ for restaurants.
regulator
An organization's obligation to protect and enhance the society in which it operates is called
social responsibility
Burger King operates restaurants around the world on U. S. military bases. The agreement between Burger King and the Department of Defense is a(n) ____.
strategic alliance