MGMT 3302 Exam 2 Hartsell

According to Hofstede's research on cultural dimensions, ____ cultures emphasize the importance of relationships, modesty, caring for the weak, and quality of life.

feminine

Glassmaker AFG Industries positions itself as the primary supplier of glass used in microwave doors, shower doors, and patio tables. What type of a positioning strategy does the glass manufacturer use?

focus

The positioning strategy that is always paired with one of the other two positioning strategies to produce a specialized product or service is ____.

focus

Protectionism is the use of trade barriers to protect local companies and their workers from ____.

foreign competition

Which of the following types of global organization is most likely to suffer problems associated with being culture bound?

franchising

Backward compatibility is an important consideration for software users who are using an accounting program to facilitate their tax preparation and who want to use a newer version that has greater capacity. Therefore, many software manufacturers engage in ____.

generational change

Companies can achieve growth mainly by ____.

growing internally through direct expansion or creating new businesses

Groupthink occurs in ____.

highly cohesive groups where there is a great deal of pressure to agree with each other

The evidence clearly shows that ____ is the most important factor in determining the success or failure of an international assignment.

how well an expatriate's spouse and family adjust to the foreign culture

The European Union encourages companies to abandon national boundaries and offer the same products to all of the member countries. Allianz, Germany's largest insurance group, is considering converting from a German company to a European company. If it makes this decision rationally, it will first ____.

identify problems arising from tax and regulatory issues

A(n) ____ is a resource that is impossible or extremely costly or difficult for other firms to duplicate.

imperfectly imitable

Which of the following must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?

imperfectly imitable resources

During the ____ phase of a technology cycle, companies innovate by lowering the cost and improving the functioning and performance of the dominant design.

incremental change

Which of the following is NOT a part of the experiential approach to innovation?

initiative conversations

Companies in the chemical industry are struggling to attract the most talented college graduates. One of the biggest challenges facing these companies is attracting new talent to organizations with an "old economy" image. A situational analysis would term this challenge a(n) ____.

internal weakness

A technology cycle occurs whenever there are major advances or changes in the ____ in a field or discipline.

knowledge, tools, and techniques

An expatriate is someone who ____.

lives and works outside of his or her own country

Under conditions of ____, a competitive attack by the stronger rival is more likely to produce sustained competitive advantage.

low resource similarity

Who is primarily responsible for developing operational plans?

lower-level managers

Resource similarity and ____ are factors that determine the extent to which firms will be in direct competition with each other.

market commonality

Nestlé is a company headquartered in Switzerland with manufacturing plants in Columbia, Australia, Canada, Egypt, Kenya, and more than 90 other nations. Nestlé is an example of a ____.

multinational corporation

Deutsche Bank is the largest bank in the world. Would this give it a sustainable competitive advantage?

no, because size is not a criteria for sustainable competitive advantage

According to the text, valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are ____ resources.

nonsubstitutable

Budgets are an example of ____ planning.

operational

The basic purpose of ____ planning is to leave commitments open by maintaining slack resources.

options-based planning

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 ____.

organizational innovation

Historically, most companies have used the ____ to successfully enter foreign markets.

phase model of globalization

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?

planning

The first step in the compression approach to innovation is ____.

planning

Uganda is one of only two countries in the world that produce a mineral required in the manufacturing of cellular phones. Several mining companies recently moved their operations out of the region due to a bloody civil war resulting from a change in rulers. This is an example of how ____ can influence global business.

political uncertainty

Cost leadership, differentiation, and focus are the three types of ____ strategies discussed in the text.

positioning

Because of slowing sales, Arm & Hammer started promoting innovative uses for its baking soda. By searching for new market opportunities, the manufacturer of Arm & Hammer is using which type of adaptive strategy?

prospecting

Which of the following is a trend that has allowed companies to skip the phase model when going global?

quick, reliable air travel

An organization which is a ____ in terms of its adaptive strategy would NOT follow a consistent strategy.

reactor

In an attempt to stop declining profitability, ICI, a British chemical company, deleted petrochemical products from its production and concentrated on specialty chemicals, a less capital-intensive, less cyclical business. If ICI is successful in making the needed changes, it will more than likely implement a ____ strategy.

recovery

The research on diversification in portfolio management indicates that the best approach is probably ____.

related diversification

From a competitive standpoint, ____ means that the strategic actions your company takes can probably be matched by your direct competitors.

resource similarity

Which of the following is one of the sources of resistance to change?

self-interest

The use of milestones in the experiential approach to innovation ____.

shortens the innovation process

What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufacturer?

single-use plan

The goals of the compression approach to innovation are ____.

speed, lower costs, and incremental change of dominant design

A department store is experiencing greater than usual losses due to theft and management wants it stopped. Middle management decided to hire a security company to study the problem and develop the best plan for dealing with it. Middle management have implemented a(n) ____ plan.

tactical

An Australian manufacturer of surfboards wants to increase awareness of its brand in the U.S. market. A ____ plan to accomplish this objective might be to host a series of surfboard competitions in California .

tactical

When done correctly, management by objectives (MBO) is an extremely effective method for ____.

tactical planning

A(n) ____ is a direct tax on imported goods designed to make it more expensive to buy those goods, instituted in hopes of reducing the volume of those imported goods in a given country.

tariff

As Malta got ready for its admittance into the European Union (EU), the EU removed all taxes on the importation of goods manufactured in Malta. In other words, the EU abolished ____ for Malta-manufactured merchandise.

tariffs

In order from beginning to end, the phases of a technology cycle within an innovation stream consist of ____.

technological discontinuity, discontinuous change, dominant design, and incremental change

An innovation stream moves from one technology cycle to another through the process of ____.

technological substitution

Discontinuous change in an innovation stream is characterized by ____.

technological substitution

All global new ventures share two common factors. One is that the company founders successfully develop and communicate the company's global vision from the start. The other is ____.

the bringing of a good or service to several different foreign markets at the same time

Global business is defined as____.

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

The term ____ is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.

uncertainty avoidance

When a merger of South Carolina-based Springs Industries with the Brazilian textile producer Coteminas was announced, the CEO of Springs was quoted as saying, "It is unclear what effect this move will have on our employees though no immediate layoffs are planned. There may be some in the future." In the ____ stage of the organizational change, the CEO should use empathy and communicate specific details of the merger.

unfreezing

Which of the following is one of the three steps in the basic process of managing organizational change outlined by Kurt Lewin?

unfreezing

The three steps in the basic process of managing organizational change outlined by Kurt Lewin are ____.

unfreezing, change intervention, and refreezing

Ernst & Young, an international accounting and management consulting company, entered Hungary first by establishing a joint venture with a local firm. Ernst & Young later acquired the company with which it had the alliance. As a result Ernst & Young then had a(n) ____ in Hungary.

wholly owned affiliate

A situational analysis for a manufacturer of pet food might reveal which of the following facts____.

A SWOT analysis might reveal all of the listed issues.

The ____ is a decision-making method in which a panel of experts responds to questions and to each other until an agreement is reached on how a specific issue should be handled.

Delphi technique

The acronym GATT stands for the ____.

General Agreement on Tariffs and Trade

The signing of the ____ created a regional trading zone in Europe.

Maastricht Treaty

According to the S.M.A.R.T. guidelines, goals should be ____.

Measurable

____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of people from a particular country.

National culture

____ planning keeps options open by making small, simultaneous investments in many alternative plans.

Options-based

The Japanese government continues to use the high tariffs to make sure local farmers can earn a living. The tariff on rice is an example of ____.

Protectionism

____ 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.

Strategic reference points

Which of the following statements is true about how the portfolio strategy can be used to help managers acquire companies that fit well with the rest of their corporate portfolio?

The most significant advantage of the portfolio strategy is the ability to categorize businesses as stars, exclamation points, question marks, and dogs.

One of the major questions that a company must typically answer about its future, once it has decided to go global is ____.

To what extent should the company standardize or adapt business procedures?

Which of the following is one of the six steps in the rational decision-making process?

Weight the criteria

The European Union (EU) bans the importation of hormone-fed U.S. beef and bioengineered corn and soybeans on safety grounds. This ban is so consumers in the EU will buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of ____.

a government import standard

Robert Mondavi Wineries entered into an agreement with Baron Philippe de Rothschild, owner of Bordeaux's First Growth chateau, to produce a top quality wine in California. The two companies working together to create a new product is an example of ____.

a joint venture

When McDonald's entered into an agreement with a French entrepreneur who wanted to own and operate a McDonald's fast-food restaurant in Paris, McDonald's saw the new restaurant as an opportunity. Unfortunately, the restaurant in Paris was not maintained at the cleanliness standards prescribed by McDonald's (but acceptable to the cleanliness standards of the French). McDonald's brought legal action to have the restaurant closed. This example illustrates ____.

a problem with franchising in different cultures

Which of the following is a mechanism used to examine external threats and opportunities facing a firm as well as its internal strengths and weaknesses?

a situational analysis

The ____ approach to decision-making is a method in which an individual or a subgroup is assigned the role of a critic.

devil's advocacy

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.

distal; proximal

While ____ are tangible, ____ are not.

distinctive competencies; core capabilities

When resistance to change is based on insufficient, incorrect, or misleading information, managers should use ____ as an approach to manage resistance.

education and communication

The most popular approach to increasing goal commitment is ____.

encouraging workers' participation in goal setting

There are eight general steps for organizational development intervention. The first step is ____.

entry

As a company that manufactures janitorial cleaning supplies tries to develop more environmentally -friendly products that can clean as well as its current ones, the company's manager must select among alternatives derived from oranges, parsley, lemon, or a combination of these ingredients. This is the ____ step in the rational decision-making model.

evaluate each alternative

Which of the following is NOT one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability?

existing complementary products

Unverferth Manufacturing has been a manufacturer and supplier of innovative agricultural equipment since 1948. Recently it began developing a new 12-row strip-till subsoiler, which prepares 10-inch-wide seed beds spaced 40 inches apart. Before introducing the new tiller to the market, Unverferth developed and tested nearly three-dozen product prototypes. Unverferth used the ____ approach to innovation.

experiential

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 ____.

external growth

The nominal group technique improves group decision making by ____.

decreasing a-type conflict

When Coca-Cola discovered it had an unauthorized bottler selling Coke in the Colombian jungle, it used the rational decision making process to find a solution. What do you know about the stage in which Coke evaluated its possible courses of action?

Coke found this stage to be the most time-consuming of all the stages.

An industry-level strategy that is best suited to changes in the organization's external environment is a(n)____.

adaptive

Which of the following forms of organizing a global business help companies to avoid tariff and nontariff barriers to entry of a given foreign market?

all of these

Which of the following is a component of a creative work environment that encourages creativity?

all of these

Among companies who use the adaptive strategies, ____ blend the strategies used by ____.

analyzers; defenders and prospectors

When significant improvements in performance can ONLY be gained through radical new designs or new performance-enhancing materials, it is likely that a company is ____ in the S-curve pattern of innovation.

at the end of the innovation cycle

According to Michael Porter, five industry forces determine an industry's overall attractiveness and potential for long-term profitability. Which of the following is one of those forces Porter identified?

bargaining power of suppliers

Planning works best when the goals and action plans at the ____ of the organization support the goals and action plans at the ____ of the organization.

bottom and middle; top

Tom Valerio was the point man on a major push to reinvent CIGNA Property & Casualty. His vision for CIGNA was to become a top-quartile, specialist property and casualty company. It was a radical proposition. Valerio was a(n) ____.

change agent

Planning is ultimately based upon ____.

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

ARI is a leading provider of sales and profit-building technology services for equipment dealers. When Unverferth Manufacturing, a supplier of agricultural equipment, wanted to change the way it supplied information it contacted ARI. ARI presented the manufacturer with a solution that allowed it to replace its paper catalogs with online catalogs. As a result, Unverferth was able to eliminate costly paper catalogs and gain the ability to provide up-to-the-minute information to its dealers. This incremental change that was aided by supplier involvement was an example of the ____ approach to innovation.

compression

It is appropriate to use a(n) ____ approach to manage innovation in more certain environments during periods of incremental change, in which the goals are lower costs and incremental improvements in the performance and function of the existing technological design.

compression

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.

compression

A firm using a ____ strategy to prevent or reduce political risks will lobby foreign governments or international trade agencies to change laws, regulations, or trade barriers that hurt their business in that country.

control

The ____ strategy of minimizing or adapting to the political risk inherent to global business makes use of joint ventures and collaborative contracts.

cooperation

The term ____ refers to the overall organizational strategy that addresses the question "What business or businesses are we in or should we be in?"

corporate-level strategy

Kodak is a company associated with photography and has decided to become a market leader in digital imaging. Kodak can encourage the development of a culture where workers perceive that new ideas are welcomed by offering challenging work and supervisory encouragement. In other words, the company can create a(n) ____.

creative work environment

____ are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged.

creative work environments