BUS275 Test

The term bottom of the pyramid refers to the more than 4 billion people who earn less than US _______ a year.

$1,500

Merger:

Combination of two or more companies into a single firm

A growing area of boundary spanning is ___________, which refers to activities to get as much information as possible about one's rival.

Competitiveness intelligence

Which of the following is not a part of an organization's general environment?

Competitors

A multinational corporation is managed as an integrated worldwide business system.

True

Mcdonald's, Burger King, and Taco Bell are competitors since all three sell fast food to individuals.

True

Joint venture:

an agreement between two or more companies to share a business project

Symbol

anything that stands for or represents something else

Adaptability culture

characterized by values that support the company's ability to interpret and translate signals from the environment into new behavior responses

Uncertainty avoidance

comfort level with uncertainty and ambiguity

Competitors

companies in the same industry that sell similar products or services to customers

Economic dimension:

economic health of the country/region in which the organization operates

Global outsourcing

engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies❖ Also called offshoring

Strategic issues:

events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives

Political instability

events such as riots, revolutions, civil disorders, and frequent changes in government

Do many companies first get involved internationally by using one of the following approaches?

exporting

Partnerships represent a lower level of involvement in international trade than exporting and outsourcing.

false

Hero

figure who exemplifies the deeds, character, and attributes of a strong corporate culture

Legal-political dimension

government regulations at local, state, and federal levels, as well as political activities

Long-term orientation

greater concern for the future and highly values thrift and perseverance

Political risk

he risk of loss of assets, earningpower, or managerial control due topolitical events or actions by hostgovernments

Sociocultural dimension:

includes demographic characteristics, norms, customs, and values of a population within which the organization operates

Task environment:

includes entities that directly affect a firm on a constant basis and include competitors, suppliers, and customers

Boundary spanning:

links to and coordinates the organization with key elements in the external environment

Short-term orientation

more concerned with the past and the present and places a high value on tradition and meeting social obligations

Story:

narrative based on true events that is repeated and shared among organizational employees

Ethnocentrism

natural tendency of people to regard their own culture as superior and to downgrade or dismiss other cultural values

Supply chain:

network of multiple businesses and individuals that are connected through the flow of products or services

Technological dimension:

of the general environment includes scientific and technological advances in society

Suppliers

people and organizations that provide the raw materials that the organization uses to produce its output

High-context culture

people are sensitive to circumstances surrounding social exchanges

Labor market:

people in the environment who can be hired to work for the organization

Implicit communication

people send and receive unspoken cues, such as tone of voice or body language, in addition to the explicit spoken words when talking with others

Low-context culture

people use communication primarily to exchange facts and information; meaning is derived primarily from words

Slogan

phrase or sentence that succinctly expresses a key corporate value

Ceremony:

planned activity at a special event that is conducted for the benefit of an audience

Collectivism

preference for a tightly knit social framework in which individuals look after one another and organizations protect their members' interests

Masculinity

preference for achievement, heroism, assertiveness, work centrality (with resultant high stress), and material success

Multinational corporation

receives more than 25% of its total sales revenues from operations outside parent's home country

Achievement culture

results-oriented culture that values competitiveness, aggressiveness, personal initiative, cost cutting, and willingness to work long and hard to achieve results

McDonald's "I'm lovin' it" is an example of a:

slogan

Exporting

strategy in which the corporation maintains its production facilities within the home nation and transfers its products for sale in foreign countries

Internal environment:

the conditions and forces within an organization

General environment:

the economic, technological, sociocultural, and political/legal trends that indirectly affect all organizations

Globalization

the extent to which trade and investments, information, social and cultural ideas, and political cooperation flow between countries

International management:

the management of business operations conducted in more than one country

Corporate culture:

the shared experiences, stories, beliefs, and norms that characterize an organization

Customers

those who pay to use an organization's goods or services

Cultural leader:

a leader who actively uses signals and symbols to influence corporate culture

Cultural intelligence (CQ)

a person's ability to use reasoning and observation skills to interpret unfamiliar gestures and situations and devise appropriate behavioral responses

Global mind-set

ability of managers to appreciate and influence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, and psychological characteristics

Power distance

acceptance of inequality in power among institutions, organizations, and people

Involvement culture

a culture that places high value on meeting the needs of employees and values cooperation and equality

The general environment affects organizations directly.

False

The international dimension of the general environment includes events originating in foreign countries, as well as new opportunities for U. S. companies in other countries

False

Organizational ecosystem:

Formed by the interaction among a community of organizations in the environment

Hofstede's value dimensions

Four dimensions of national value systems that influence organizational and employee working relationships

Natural dimension:

Includes all elements that occur naturally on Earth, including plants, animals, rocks, and natural resources such as air, water, and climate.

Bottom of the pyramid (BOP)

Proposes that corporations can alleviate poverty and other social ills, as well as make significant profits, by selling to the world's poor.

Individualism

value for a loosely knit social framework in which individuals are expected to take care of themselves

Consistency culture

values following the rules and thriftiness and rewards a methodical, rational, orderly way of doing things

Femininity

values relationships, cooperation, group decision making, and quality of life