MGMT 3370 Test 2

____ is the emotional reaction that can occur when disagreements become personal rather than professional. a. Organizational disharmony b. Norm disruption c. A-type conflict d. Emotive empowerment e. C-type conflict

A-type conflict

_____ is defined as the purchase of a company by another company. a. Acquisition b. Differentiation c. Recovery d. Downsizing e. Diversification

Acquisition

The _____ is a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share. This strategy helps them to decide how to invest corporate funds. a. portfolio management matrix b. SWOT matrix c. BCG matrix d. Maslow grid e. investment matrix

BCG matrix

_____ is the measure of the intensity of competitive behavior between companies in an industry. a. Competitive barrier b. Character of the rivalry c. Character of culture d. Process gain e. Anti-competitiveness

Character of the rivalry

_____ are the central companies in a strategic group. a. Secondary firms b. Cash cows c. Dogs d. Core firms e. Question marks

Core firms

_____ are defined as workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged. a. Creative work environments b. Bureaucratic work teams c. Centralized work environments d. Hierarchical work stations e. Homogeneous work environments

Creative work environments

____ is the process of choosing a solution from available alternatives. a. Decision making b. Divesting c. Deskilling d. Self-dealing e. Environmental scanning

Decision making

Which of the following is a characteristic of discontinuous change? a. Design competition b. Innovative reciprocity c. Synergy d. Entropy e. Incremental change

Design competition

Which of the following is NOT a part of the experiential approach to innovation? a. Hands-on experience to reduce uncertainty b. Design lockout c. Multifunctional teams d. Design iterations e. Testing

Design lockout

_____ is the rivalry between two companies that offer similar products and services, acknowledge each other as rivals, and act and react to each other's strategic actions. a. Character of the rivalry b. Distinctive competence c. Competitive inertia d. Direct competition e. Differentiation

Direct competition

_____ is a method in which a company builds a new business or buys an existing business in a foreign country. a. Strategic alliance b. Direct foreign investment c. Joint venture d. Direct exporting e. Global new venture

Direct foreign investment

____ is the phase of a technology cycle characterized by technological substitution and design competition. a. Technological lockout b. Technological adaptation c. Change substitution d. The technological growth stage e. Discontinuous change

Discontinuous change

Which of the following is the first step in management by objectives? a. Centralizing decision making power b. Reviewing progress towards goal achievement c. Preparing worker schedules d. Discussing possible goals e. Developing operational plans

Discussing possible goals

_____ is a strategy for reducing risk by buying a variety of items so that the failure of one stock or one business does not doom the entire portfolio. a. Recovery b. Acquisition c. Strategic dissonance d. Differentiation e. Diversification

Diversification

____ occurs when a company sells domestically produced products to customers in foreign countries. a. Direct foreign investment b. Licensing c. Franchising d. Exporting e. Cooperative contract

Exporting

Which of the following represents the correct sequence of the phase model of globalization? a. Exporting; wholly owned affiliates; cooperative contracts; strategic alliances b. Exporting; job ventures; strategic alliances; direct investment c. Exporting; cooperative contracts; strategic alliances; wholly owned affiliates d. Exporting; strategic alliances; cooperative contracts; wholly owned affiliates e. Exporting; direct investment; strategic alliances; job ventures

Exporting; cooperative contracts; strategic alliances; wholly owned affiliates

_____ strategies typically work in market niches that competitors have overlooked or have difficulty serving. a. Mass production b. Entropy c. Focus d. Deskilling e. Unrelated diversification

Focus

_____ are two kinds of cooperative contracts. a. Direct exporting and indirect exporting b. Franchising and licensing c. Licensing and joint ventures d. Joint ventures and strategies alliances e. Direct investment and indirect investment

Franchising and licensing

Which of the following is an accepted method for tracking progress toward goal achievement? a. Gathering and providing performance feedback b. Data warehousing and data mining c. Using micromanagement techniques d. Setting response and stimulus goals e. Practicing planner detachment

Gathering and providing performance feedback

Which of the following is an example of a common approach to corporate-level strategy? a. Positioning strategies b. Focus strategies c. ROI strategies d. Adaptive strategies e. Grand strategies

Grand strategies

Which of the following is an advantage of planning? a. It encourages people to work harder for extended periods. b. It allows organizations to adapt to change quickly. c. It fixes all organizational problems. d. It creates a suitable environment for change. e. It fosters flexibility in the organization.

It encourages people to work harder for extended periods.

Which of the following is true about planning? a. It fixes all organizational problems. b. It helps managers create task strategies. c. It decreases persistence toward goals. d. It quickens needed adaptation. e. It reduces effort from employees and managers.

It helps managers create task strategies.

Which of the following statements about resistance to change is true? a. It increases when employees are educated about the need for change. b. It is minimal in conditions of certainty. c. It is caused by misunderstanding and distrust. d. It increases when change efforts receive significant managerial support. e. It increases when those affected by the change participate in its planning and implementation.

It is caused by misunderstanding and distrust.

Which of the following is true of global business? a. It is the setting up of another factory in the parent country. b. It is the buying and selling of goods and services within the states of a country. c. It is the buying and selling of goods and services among different states of a country. d. It is the setting up of a factory in a country other than the parent country. e. It is the buying and selling of goods and services by people from different countries.

It is the buying and selling of goods and services by people from different countries.

Who among the following is responsible for developing operational plans? a. Top managers b. Middle managers c. Lower-level managers d. Board of directors e. Shareholders

Lower-level managers

Which of the following is a characteristic of the inaction stage of organizational decline? a. Key managers fail to recognize the internal or external changes that will harm their organizations. b. Cutbacks and layoffs will have reduced the level of talent among employees. c. The company is dissolved through bankruptcy proceedings or by selling assets in order to pay suppliers, banks, and creditors. d. Management announce belt-tightening plans designed to cut costs, increase efficiency, and restore profits. e. Managers wrongly assume that they can easily correct the problems, so they don't feel the situation is urgent.

Managers wrongly assume that they can easily correct the problems, so they don't feel the situation is urgent.

Who among the following is responsible for the creation of tactical plans? a. Middle managers b. Top managers c. Lower-level managers d. Facilities team e. Team leaders

Middle managers

_____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country. a. National diversity b. Cultural nationalization c. National mindset d. Cultural diversity e. National culture

National culture

_____ planning allows companies to maintain flexibility by making small simultaneous investments in many alternative plans. a. Action-based b. Operational c. Strategic d. Options-based e. Functional

Options-based

Which of the following is NOT one of the components of creative work environments? a. Challenging work b. Freedom c. Organizational encouragement d. Organizational impediments e. Supervisory encouragement

Organizational impediments

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? a. Bargaining power of buyers b. Organizational synergy c. Character of the rivalry d. Threat of substitute products e. Bargaining power of suppliers

Organizational synergy

____ are types of standing plans. a. MBO guidelines b. Policies and procedures c. Targeted plans d. Long-term tactical strategies e. Transformational plans

Policies and procedures

_____ is associated with the risk of major changes in governmental regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events. a. Power distance b. Political uncertainty c. Policy uncertainty d. Short-term orientation e. Individualism

Political uncertainty

____ is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. a. Rational decision making b. Problem identification c. Keystoning d. Benchmarking e. Multivariable selection

Rational decision making

_____ consists of the strategic actions that a company takes to return to a growth strategy. a. Stability b. Recovery c. Differentiation d. Portfolio e. Focus

Recovery

______ are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem. a. Grand strategies b. Distinctive competencies c. Resources d. Strategic stances e. Competitive advantages

Resources

Which of the following is the most specific type of standing plan? a. Rules and regulations b. MBO plans c. Budgets d. Procedures e. Policies

Rules and regulations

Nearly all technology cycles follow the typical _____ pattern of innovation. a. contingency b. W-curve c. lockout d. bell-shaped e. S-curve

S-curve

____ occurs when managers choose an alternative that is good enough, rather than the best possible alternative. a. Alternating b. Budgeting c. Optimizing d. Satisficing e. Maximizing

Satisficing

_____ is a discrepancy between a company's intended strategy and the strategic actions managers take when actually implementing that strategy. a. Competitive inertia b. Strategic dissonance c. Competitive dissonance d. Differentiation discrepancy e. Cstomer inertia

Strategic dissonance

Which of the following should be a key issue for a company once it decides to go global? a. Recruit additional employees for the company. b. Train employees to handle business abroad. c. Determine the number of employees to be trained to handle responsibilities. d. Strike the right balance between global consistency and local adaptation. e. Determine the number of factories to be built in foreign countries.

Strike the right balance between global consistency and local adaptation.

_____ are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies in special industries. a. Quotas b. Subsidies c. Voluntary export restraints d. Tariffs e. Cooperative contracts

Subsidies

_____ plans specify how a company will use resources, budgets, and people to accomplish specific goals within its mission. a. Single-use b. Operational c. Strategic d. Tactical e. Visionary

Tactical

_____ occurs when customers purchase new technologies to replace older technologies. a. Organizational synergy b. Technological substitution c. Entropy d. Transition management e. Incremental environmental change

Technological substitution

_____ is defined as the knowledge, tools, and techniques used to transform inputs into outputs. a. Creativity b. Synergy c. Deskilling d. Entropy e. Technology

Technology

Which of the following is a common factor of global new ventures? a. The development and communication of a company's global vision from inception by the founders. b. The use of local adaptation strategy c. The ability to respond quickly and efficiently to any changes in the external environment d. The development of cultural specific implementation policies e. A mechanistic organizational culture

The development and communication of a company's global vision from inception by the founders.

Which of the following is an example of core capabilities of an organization? a. The popularity of products and services sold by the organization b. The organization's customer share. c. The organization's overhead costs. d. The organization's skill in maintaining large inventories effectively. e. The organization's balance sheet.

The organization's skill in maintaining large inventories effectively.

_____ is the most important factor in determining the success or failure of an international assignment. a. The similarity of a foreign language to an expatriate's native language b. The willingness of an expatriate's spouse and family to adjust to a foreign culture c. The amount of language training provided to an expatriate d. The willingness of an expatriate to accept a foreign assignment e. The amount of cross-cultural training provided to an expatriate

The willingness of an expatriate's spouse and family to adjust to a foreign culture

Clive Motor Company solely owns and operates manufacturing plants in Brazil, Chile, Germany and India. Which of the following methods for conducting global business has Clive Motor Company used in this example? a. Cooperative contract b. Wholly owned affiliate c. Strategic franchise d. Strategic alliance e. Joint venture

Wholly owned affiliate

An industry-level strategy that is best suited to changes in the organization's external environment is a(n)_____ strategy. a. growth b. diversification c. positioning d. differentiation e. adaptive

adaptive

When the first cell phone was released, only a few people could afford to buy it. Over the years, mobile manufacturers improved the phone designs and features and also reduced their cost to make them more affordable. This signaled the shift to the _____ stage of the technology cycle. a. dominant design b. discontinuous change c. incremental change d. technological continuity e. technological discontinuity

incremental change

A(n) _____ strategy is a corporate strategy that addresses the question "How should we compete in this line of business?" a. SBU-level b. operations-level c. industry-level d. firm-level e. niche-specific

industry-level

Organizational _____ is the successful implementation of creative ideas in organizations. a. innovation b. deployment c. change d. development e. creativity

innovation

Over the long run, the best way for a company to sustain competitive advantage is to create _____ year after year. a. entropies b. slack resources c. innovation streams d. cognitive dissonances e. innovation maps

innovation streams

Global business: a. only involves companies with more than 50 employees. b. is the buying and selling of goods and services to people from different countries. c. is unregulated. d. is the setting up of a factory in a country other than the parent country. e. includes any sale of goods and services.

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

A technology can become a dominant design if: a. it is the most expensive technology in the market. b. it solves a practical problem. c. it resembles an old technology. d. it is extensively used by a small number of people. e. it is not considered as a market standard.

it solves a practical problem.

A _____ is a strategic alliance in which two existing companies collaborate to form a third, independent company. a. wholly owned affiliate b. cooperative contract c. global new venture d. franchise e. joint venture

joint venture

An expatriate is someone who _____. a. claims dual citizenship b. is unhappy with his or her present residence c. believes strongly in nationalization d. desires to be employed in a country other than his or her own country e. lives and works outside his or her own country

lives and works outside his or her own country

The last step in effective planning is to _____. a. track progress toward goal achievement b. develop long-term action plans c. maintain flexibility in planning d. acculturate the employees e. develop goal commitment

maintain flexibility in planning

Resource similarity and _____ are factors that determine the extent to which firms will be in direct competition with each other. a. market commonality b. resource quality c. product differentiation d. customer autonomy e. related diversification

market commonality

According to the S.M.A.R.T. guidelines, goals should be ____. a. measurable b. rational c. nonspecific d. broad e. actionable

measurable

Budgets are a type of ____ plans. a. actionable b. strategic c. policy d. tactical e. operational

operational

When companies don't anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival, it results in _____. a. resistance to change b. design competition c. organizational decline d. discontinuous change e. generational change

organizational decline

A(n) _____ is a brief, two-sentence statement of a company's purpose for existing. a. budget b. organizational mission c. action plan d. policy e. standing plan

organizational mission

Most companies have used the _____ to successfully enter foreign markets. a. ripple method b. guerrilla approach c. market echo approach d. phase model of globalization e. global new venture technique

phase model of globalization

The first step in the compression approach to innovation is _____. a. supplier involvement b. overlapping of the individual steps c. planning d. granting autonomy e. creating multifunctional teams

planning

A ____ exists when there is a gap between a desired state (what managers want) and an existing state (the situation that the managers are facing). a. minimum threshold b. service gap c. condition of certainty d. benchmark e. problem

problem

A company that is seeking to grow by taking risks and looking for innovations is best characterized as a(n) _____. a. innovator b. analyzer c. reactor d. prospector e. defender

prospector

A _____ resource is a resource that is not controlled or possessed by many competing firms. a. substitutable b. rare c. perfectly imitable d. capital e. slack

rare

The ____ is a type of operational plan that saves managers time because it is created once and then used repeatedly to handle frequently recurring events. a. forecast b. budget c. options-based plan d. single-use plan e. standing plan

standing plan

A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. These methods are _____. a. visionary plans b. action plans c. tactical plans d. single-use plans e. standing plans

standing plans

Top management is responsible for developing ____. a. tactical plans b. appraisal reports c. worker schedules d. strategic plans e. operational plans

strategic plans

Management by objectives (MBO) is a management technique often used to develop and carry out. a. standing plans b. tactical plans c. visionary plans d. single-use plans e. operational plans

tactical plans

A(n) _____ is a direct tax on imported goods. a. tariff b. trade roadblock c. nontariff barrier d. import subsidy e. boycott quota

tariff

The two general kinds of trade barriers are _____. a. tariff barriers and nontariff barriers b. voluntary and involuntary barriers c. government import standards and industry import standards d. nationalistic and geocentric barriers e. qualitative and quantitative barriers

tariff barriers and nontariff barriers

The phases of a technology cycle within an innovation stream begins with: a. technological discontinuity. b. incremental change. c. discontinuous change. d. design iteration. e. dominant design.

technological discontinuity.

The strategy-making process begins with: a. the assessment of the need for strategic change. b. the evaluation of alternatives. c. satisficing. d. a situation analysis. e. the finalization of strategic alternatives.

the assessment of the need for strategic change.

The term _____ is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations. a. power distance b. short-term/long-term orientation c. political uncertainty d. masculinity e. uncertainty avoidance

uncertainty avoidance

The three steps in the basic process of managing organizational change outlined by Kurt Lewin are ____. a. change definition, change motivation, and change b. organizational change, departmental change, and individual change c. synthesizing, motivating, and rewarding d. unfreezing, change intervention, and refreezing e. change control, change mobilization, and change acceptance

unfreezing, change intervention, and refreezing

The _____ approach to innovation assumes that innovation is occurring within a highly uncertain environment. a. compression b. generational change c. technological disruption d. technological substitution e. experiential

experiential

According to Hofstede's research on cultural dimensions, _____ cultures emphasize the importance of relationships, modesty, caring for the weak, and quality of life. a. feminine b. masculine c. individualistic d. economic-based e. relationship-oriented

feminine

Hofstede's research has shown that there are _____. a. five consistent dimensions of cultural differences across countries b. direct relationships existing between type of infrastructures and growth potential c. no cultural differences among nations in which Spanish is the national language d. four factors upon which a company should base its decision to globalize e. two distinct methods for dealing with cultural differences--adaptation and continuation

five consistent dimensions of cultural differences across countries

The purpose of a _____ strategy is to increase profits, revenues, market share, or the number of places (stores, offices, locations) in which the company does business. a. growth b. retrenchment c. recovery d. divestment e. niche

growth

Groupthink occurs in ____. a. newly formed groups whose members were arbitrarily selected and who are assigned to make programmed decisions b. groups in which members have dissimilar backgrounds c. highly cohesive groups where there is a great deal of pressure to agree with each other d. groups whose members are elected to serve as figureheads e. standing committees whose members are under no pressure to agree

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

According to social psychologist Kurt Lewin, _____ lead to differences in the form, quality, or condition of an organization over time. a. generational changes b. change forces c. inertia forces d. resistance forces e. freezing forces

change forces

Organizations can achieve a _____ by using their resources to provide greater value for customers than competitors can. a. competitive advantage b. distinctive competence c. strategic dissonance d. strategic reference point e. competitive inertia

competitive advantage

It is appropriate to use a(n) _____ approach to manage innovation in more certain environments, in which the goals are lower costs and incremental improvements in the performance and function of an existing technological design. a. prototypical b. reinforcement c. experiential d. compression e. milestones

compression

The _____ approach to managing innovation assumes that innovation is a predictable process made up of a series of steps and that reducing the time it takes to complete those steps can speed up innovation. a. milestones b. generational c. dialectical d. prototypical e. compression

compression

A(n) _____ is an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country. a. strategic alliance b. joint venture c. free-trade agreement d. exporting agreement e. cooperative contract

cooperative contract

A technology _____ begins with the birth of a new technology and ends when that technology reaches its limits and dies as it is replaced by a newer, substantially better technology. a. process b. hierarchy c. lockout d. continuum e. cycle

cycle

In _____, the old technology and several different new technologies fight to establish a new technological standard or dominant design. a. design substitution b. design competition c. technological lockout d. incremental change e. modular management

design competition

The most important factor in an attractive business climate is the _____. a. high political risks b. presence of established markets c. limited infrastructure d. easy access to growing markets e. high competition among companies

easy access to growing markets

The General Agreement on Tariffs and Trade (GATT): a. eliminated government subsidies. b. eliminated tariffs in ten specific industries. c. imposed tariffs on all countries. d. replaced the United Nations court system. e. operated in a fashion similar to the Chamber of Commerce.

eliminated tariffs in ten specific industries.

Organizational development _____. a. takes a short-range approach to change b. creates change by coercing workers and managers to change ideas, beliefs, and behaviors c. assumes that top management support is only optional for change d. emphasizes employee participation in diagnosing, solving, and evaluating problems e. emphasizes resistance forces

emphasizes employee participation in diagnosing, solving, and evaluating problems

The most popular approach to increasing goal commitment is ____. a. assigning goals to workers b. assigning unattainable goals c. encouraging workers' participation in goal setting d. getting top management's support e. management by mentoring

encouraging workers' participation in goal setting

The research on diversification in portfolio management indicates that the best approach is probably _____. a. related differentiation b. divestiture c. related diversification d. unrelated diversification e. repositioning

related diversification

Managing global joint ventures can be difficult because they: a. can only be used by large companies that already have an international presence. b. represent a merging of four cultures. c. increase the number of tariffs that have to be paid. d. use local consistency in marketing. e. help companies to allow nontariff barriers to entry.

represent a merging of four cultures.

In the context of the strategic reference point theory, the _____ strategy aims to protect an existing competitive advantage. a. risk-extension b. divesting c. risk-avoiding d. risk-seeking e. deskilling

risk-avoiding

A _____ is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment. a. firm-level strategy b. competitive deskilling c. situational analysis d. market audit e. differentiation analysis

situational analysis

Companies often choose a _____ strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth. a. stability b. pioneering c. growth d. retrenchment e. portfolio

stability