Module 2- Business Management
In the context of direct competition, _________ is defined as the degree to which two companies have overlapping products, services, or customers in multiple markets.
Market Commonality
_________ is creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures.
Related diversification
Which of the following is a difference between a line function and a staff function?
A line function contributes directly to selling a company's products, whereas a staff function does not contribute directly to selling a company's products but instead supports line activities.
Which of the following is the first step of a strategy-making process?
Assessing the need for strategic change
_____ is the location of most authority at the upper levels of an organization.
Centralization of authority
The cultural difference of _________ is the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations.
uncertainty avoidance
In the context of organizational decline, which of the following is true of the crisis stage?
Companies lack the resources to fully change how they run their businesses.
A _____ is a type of operational plan that saves managers time because once the plan is created, it can be used repeatedly to handle frequently recurring events.
standing plan
_________ is a measure of the intensity of competitive behavior among companies in an industry.
character of the rivalry
_________ is the positioning strategy of providing products or services sufficiently different from competitors' offerings that customers are willing to pay a premium cost for the extra value or performance that it provides.
differentiation
According to portfolio strategy, the more businesses in which a corporation competes, the larger its overall chances of failing.
false
Purchasing power 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.
false
Sanfase, a technology company in Rockbourne, manufactures microprocessors for computers. Its product is a lot more powerful than its competitors. This scenario is an example of competitive inertia.
false
When conducting global business, companies should attempt to identify the two types of political risk that are political uncertainty and economic uncertainty.
false
A virtual organization is an organization that outsources noncore business activities to outside companies, suppliers, specialists, or consultants.
false
Danielle is a receptionist at Stanlam Corp. In addition to her daily tasks, Courtney, Danielle's boss, asks her to prepare financial statements for a few small companies Stanlam owns. This is an example of job rotation.
false
The primary advantage of matrix departmentalization is that a high level of coordination is not required.
false
Westburn Inc., a fast food restaurant in the state of Beachden, starts its chain of restaurants in the state of Valcoast. It changes its menu for the customers in Valcoast. This scenario is an example of _________.
local adaptation
The last step in effective planning is to _____.
maintain flexibility in planning
_____ are responsible for the creation of tactical plans.
middle managers
_________ are companies that have a small share of a fast-growing market.
question marks
_____ are specific limits on the number or volume of imported products.
quotas
In the context of managing resistance to change, _________ is the process used to get workers and managers to change their behaviors and work practices.
refreezing
_____ is a process wherein each decision criterion is compared directly with every other criterion.
relative comparisons
A _________ is a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources directly.
simple matrix
In the context of the job characteristics model, _________ is the number of different activities performed in a job.
skill variety
Which of the following is a decision-making method in which members of a panel of experts respond to questions and to each other until an agreement is reached on how a specific issue should be handled?
Delphi technique
A(n) _________ is someone who lives and works outside his or her native country.
Expatriate
A strategic group is a task force within a company that analyzes the company's own weaknesses to determine how competitors could exploit them for competitive advantage.
False
According to the World Trade Organization, voluntary export restraints are legit and cannot be questioned.
False
Organizational development takes a short-range approach to change.
False
The compression approach to innovation is an approach to innovation that assumes a highly uncertain environment and uses intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding.
False
_________ is choosing a goal and developing a method or strategy to achieve that goal.
Planning
The North American Free Trade Agreement (NAFTA) is a regional trade agreement between the United States, Canada, and Mexico.
True
The General Electric workout is a special kind of results-driven change.
True
During a discussion about the budget for a project, the discussion gets personal between two managers of Trion LLC. They digress from the topic and start venting their anger on each other. In this scenario, the managers have _____ conflict.
a- type
ZeCola is a beverage manufacturer. It presents WYB, a zero-calorie drink to compete with We Fresh's Shire, a low-calorie drink. When WYB is released in the market, We Fresh cuts down the price on Shire to match WYB's price. This scenario is an example of a(n) _____.
attack
_________ are the standards used to guide judgments and decisions.
decision criteria
_________ is a competition between old and new technologies to establish a new technological standard or dominant design.
design competition
_________ is a cycle of repetition in which a company tests a prototype of a new product or service, improves on the design, and then builds and tests the improved product or service prototype.
design iteration
_________ is a strategy that focuses on increasing profits, revenues, market share, or the number of places in which a company does business.
growth strategy
_________ planning allows companies to maintain flexibility by making small, simultaneous investments in many alternative plans.
options- based
Omega Corp. has a goal of increasing its production and reducing its overhead costs. To achieve this goal, the company has developed four alternate action plans. Its idea is to monitor how these plans work and then invest more in the plan that shows maximum results. This type of planning that allows for flexibility is known as _____.
options- based planning
A _____ is a gap between a desired state and an existing state.
problem
_____ are standing plans that indicate the specific steps that should be taken in response to a particular event.
procedures
The most common _____ is a joint venture, which occurs when two existing companies collaborate to form a third company.
strategic alliance
The _________ is a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame.
strategic objective
Top management is responsible for developing _____.
strategic plans
A situational analysis is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment.
true
In a decentralized organization, workers closest to problems are authorized to make the decisions necessary to solve the problems on their own.
true
The threat of new entrants is a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry.
true
Two factors that help companies determine the growth potential of foreign markets are purchasing power and foreign competitors.
true
Once a strategic objective has been accomplished, a new one should be chosen.
true
Planning encourages persistence even when there may be little chance of short-term success.
true
The nominal group technique improves group decision making by decreasing a-type conflict.
true
Crimsom Corp., an electronics manufacturer in Mallowdeer, plans to enter a foreign market. It wants to establish its new office in Ostview. Which of the following is a qualitative factor that Crimsom Corp. should consider while choosing the new office location?
Company strategy
_____ are workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged.
Creative work environments
_____ can help reduce uncertainty about how to act and decrease misunderstandings between expatriates and their families and locals.
Cross-cultural training
Which of the following is the last step of a strategy-making process?
Experiential approach is used to establish a new dominant design, whereas compression approach is usExperiential approach is used to establish a new dominant design, whereas compression approach is used to improve the function of the existing dominant design.ed to improve the function of the existing dominant design.
_____ is a technique in which trainees are placed in an ethnic neighborhood for three to four hours to talk to residents about cultural differences.
Field simulation training
_____ is a change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology.
Generational change
Which of the following trade barriers is established to protect the health and safety of citizens?
Government import standards
Which of the following is the most important factor in determining the success and failure of an international assignment?
How well an expatriate's spouse and family adjust to the foreign culture
In the context of task interdependence, in _____, different jobs or groups work together in a back-and-forth manner to complete an intraorganizational process.
In the context of task interdependence, in _____, different jobs or groups work together in a back-and-forth manner to complete an intraorganizational process.
_____ is the degree to which societies believe that individuals should be self-sufficient.
Individualism
Which of the following statements is true of the World Trade Organization?
It ensures that trade flows as predictably and freely as possible.
Which of the following best defines a SWOT analysis?
It is an assessment of both the internal and external environment of an organization.
Which of the following best defines delegation of authority?
It is the assignment of direct responsibility to a subordinate to complete tasks for which a manager is normally responsible.
Which of the following best defines an interorganizational process?
It is the collection of activities that take place among organizations to transform inputs into outputs that customers value.
In the context of the job characteristics model, which of the following best defines autonomy?
It is the degree to which a job gives workers the discretion, freedom, and independence to decide how and when to accomplish the work.
Which of the following best defines cost leadership?
It is the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can so that a firm can offer the product or service at the lowest price in the industry.
Which of the following is true of job specialization?
It occurs when a job composed of a small part of a larger task or process.
Which of the following is a core capability of a company that determines how efficiently inputs can be turned into outputs?
Problem-solving processes
_____ is solving problems by consistently applying the same rules, procedures, and processes.
Standardization
In the context of organizational decline, which of the following is true of the dissolution stage?
The company is dissolved through bankruptcy proceedings.
Which of the following is true of design competition?
The older technology usually improves significantly in response to the competitive threat from the new technologies.
Which of the following is an error that managers make in the refreezing phase?
They declare victory too soon.
Which of the following is an advantage of joint ventures?
They help companies avoid tariff and nontariff barriers to entry.
In the context of adaptive strategies, which of the following best describes prospectors?
They seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market.
Tom is an editor for the sports column at Mailing Daily. Chloe, Tom's manager, asks him to handle the essay column along with the sports column. Which of the following job redesign techniques is used by Chloe?
Tom is an editor for the sports column at Mailing Daily. Chloe, Tom's manager, asks him to handle the essay column along with the sports column. Which of the following job redesign techniques is used by Chloe?
_____ is a management principle that workers should report to just one boss.
Unity of command
In the context of portfolio strategy, _____ is the purchase of a company by another company.
acquisition
In the context of organizational development, the purpose of small-group interventions is to:
assess how a group functions and help it work more effectively to accomplish its goals.
In the context of organizational development, the purpose of large-system interventions is to:
change the character and performance of an organization, business unit, or department.
Political uncertainty is the risk associated with:
changes in law.
Ziff Corp. was a leading electronics firm for about three decades. As the competition changed, its product innovation stopped. The managers at Ziff Corp. are well aware of the strategies that lead to their company's success and they continue to follow the old strategies. This scenario is an example of _____.
competitive inertia
In the context of cross-cultural training, the practice of adapting to cultural differences is called:
cultural simulation.
A drawback of planning is that:
it causes detachment, which leads planners to plan for things they do not understand.
In an organization, organizational encouragement of creativity occurs when:
management encourages risk taking and new ideas.
Bridget's Gifts, a greetings and gifts store in Janville, has four departments: flowers and soft toys, cards and e-cards, metal collectibles, and photo albums and scrapbooks. These departments are responsible for producing their own products. This scenario is an example of _____.
product departmentalization
Daniel has started a small shoe manufacturing company. He does not want the best equipment at the moment, so he is using equipment that is good enough to work with. In this scenario, Daniel is _____.
satisficing
