EXAM 2- BUS 3010

True or false: Technology is the combination of tools, machines, computers, skills, information and knowledge that managers use in the design, production, and distribution of goods and services.

true

True or false: The free-trade doctrine was designed to encourage each country to make the best use of global resources.

true

Principal corporate-level strategies include: (Choose all that apply.)

diversification. concentration on a single industry. international expansion. vertical integration.

The global environment impacts how organizations shape their behavior as a result of: (Choose all that apply.)

-a set of forces outside of the organization's boundaries. -international laws and demands that impact United States laws and demands on managers and employees.

Indicate the order of the six steps of decision making, with the first step at the top.

1. recognize the need for a decision 2. generate alternatives 3. assess alternatives 4. choose among alternatives 5. implement the chosen alternative 6. learn from feedback

What is it called when top management decides the industries and national markets in which their organization plans to compete?

A corporate-level strategy

What are some of the characteristics that societies with achievement orientation value most?

Assertiveness, performance, and success

Match the quality of an effective plan on the left with the definition on the right.

Choicehave only one guiding planhave only one guiding plan Continuity matches Choicebuild and refine previous plans on an ongoing basisbuild and refine previous plans on an ongoing basis Accuracy matches Choicecollect and use all available informationcollect and use all available information Flexibility matches Choicealter or change plans when necessaryalter or change plans when necessary

Which of the following are barriers to entry in the airline industry? (Choose all that apply.)

Cost of purchasing replacement parts that are required for aircraft maintenance Regulations that impact domestic vs international airline ownership Dependence on oil and OPEC's influence on fuel prices

Within the task environment, who is it that purchases the goods and services produced by companies? (Choose all that apply.)

Global companies Individuals Groups

When a potential competitor is considering entering the task environment, how does it impact existing organizations?

It becomes a potential rival and threat to profitability.

How do managers typically distinguish time horizons?

Long-term plans, intermediate-term plans, and short-term plans

What pressures feed the sociocultural forces that lead to concern for diversity and relationships between people and groups?

Social structure and national culture

What are economies of scale?

The cost advantages associated with large operations

What must take place once the supplies have been delivered?

The supplier must receive payment and the manager must check that the supplies delivered are as they should be.

Those national cultures that value assertiveness and competition have a(n) ______ orientation.

achievment

An approach that explains why decision making is inherently uncertain and risky and why managers usually make satisfactory, rather than optimum decisions, defines the ______ model.

administrative

Demographic forces result from changes in or changing attitudes towards the characteristics of a population. These characteristics include: (Choose all that apply.)

age, gender, ethnic origin, race

Decision making is part of ______ tasks that managers perform.

all

Some societies are willing to tolerate uncertainty and risk, while others are less accepting of such risks. The amount of tolerance is called uncertainty ______.

avoidance

Potential competitors may have a difficult time entering the task environment because of the factors that make it difficult and costly, which are known as ______.

barriers to entry

The advantage of licensing is that the licenser does not have to ______ in a foreign country.

bear the development costs associated with opening up

In order to be a global organization, what types of organizations need to set up facilities around the world?

both large and small organizations

______ rationality is the term coined by March and Simon to describe the cognitive limitations that constrain the ability of people to interpret, process, and act on information.

bounded

What is the term used to describe the situation in which the number of alternatives a manager must identify is so great and the amount of information so vast that it is difficult for the manager to even come close to evaluating it all before making a decision?

bounded rationality

The ______ decision-making model is said to be a prescriptive approach to decision making.

classical

The view that people should put group goals ahead of individual goals is known as

collectivism

Organizations that are not in a task environment, but could enter if they chose to, are known as potential ______.

competitors

When there is more than one organization producing comparable products for the same customer base, these organizations are ______.

competitors

Individuals and groups that buy the goods and services an organization produces are known as ______.

customers

A basic part of every task that managers perform is ______.

decision making

Managers can use ______ to regulate all routine organizational activities, thus making them programmed decisions.

decision rules

Changes in specific characteristics that define populations such as age, gender, and sexual orientation are all examples of ____ forces

demographic

At what point in their lives do children begin to learn their national culture?

early age

What type of forces would be at play if there were a major, sustained dip in the United States' stock market?

economic

What economic forces affect the general health and well-being of a country or region? (Choose all that apply.)

economic growth, interest rates, unemployment rates, inflation

True or false: Collectivism only exists in communist countries.

false

The model that helps managers focus on the most important competitive forces in the external environment is the ______.

five forces model

The ______ doctrine was predicated on the belief that countries had to agree to specialize in the goods and services that made the best use of their resources; as a result, they would be able to produce these goods most efficiently and offer the best value to customers.

free trade

The set of forces that causes nations to become interdependent is

globalization

What are the general and specific forces that create the competitive environment that connects and integrates economic, political, and social systems across countries, cultures and regions?

globalization

In order to compete in the 21st century, companies must compete

globally

The five forces model identifies the factors as major threats because they affect ______.

how much profit competitors within the same industry can expect to earn

The classical decision making model is based on the assumption that the decision maker can ______.

identify and evaluate all possible alternatives and their consequences

Not ______ a decision is the same as not making a decision at all.

implementing or executing

A company engaged in ______ sells products at home that are made abroad.

importing

Technological advances have had a major impact on globalization by ______ the speed and ease of communication.

increasing

A worldview that values individual goals and achievement over group goals is ______.

individualism

Lakisha has chosen and implemented her decision to hire more staff. Her next step will be to ______.

learn from feedback

The administrative model of decision making explains why: (Choose all that apply.)

managers usually make satisfactory, rather than optimum, decisions. decision making is inherently uncertain and risky.

A corporate-level strategy is a plan of action that involves choosing in which industries and countries a company should invest its resources to achieve its: (Choose all that apply.)

mission. goals.

______ shape(s) individual behavior by specifying appropriate and inappropriate behavior and interaction with others.

national culture

A worldview that values quality of life and personal friendships is known as ______.

nurturing orientation

An office environment where an organization and its managers value the quality of life of its employees and promote warm, personal relationships is an example of a(n) ______.

nurturing orientation

Economic, technological, sociocultural, demographic, political, and legal forces in the general environment often have important effects on forces in the task environment that determine an organization's ability to ______.

obtain resources

When a new administration takes office, what forces can impact companies around the world?

political and legal forces

How would Geert Hofstede characterize valuing an individual from a high social strata over one from a middle class background, both with the same education and training?

power distance

The acceptance within societies of the inequalities in social status, power, and wealth due to peoples' physical and intellectual capabilities is referred to as ______.

power distance

______ decision making is a routine, virtually automatic decision-making process that follows established rules or guidelines.

programmed

CAFTA and NAFTA are examples of ___ trade agreements.

regional

When a company decides to enter a new industry to gain a competitive advantage within one or more of the company's existing divisions, this is called ______.

related diversification

As a result of falling trade barriers, managers view the global environment as open—that is, as an environment in which companies are free to _____ whichever companies and countries they choose.

sell goods and services to buy goods and services from

A society's social structure or a country's national culture feed the pressures of ______ forces that are concerned with diversity in society or within an organization.

sociocultural

When the same situation occurs repeatedly, ______ plans are used.

standing

The CEO and top managers use ______ to communicate to their managers and other employees a compelling vision of what they want the organization to accomplish.

strategic leadership

When the CEO and other top managers communicate their vision for the company to the rest of the managerial staff, this is referred to as ______.

strategic leadership

Who provides organizations with the input resources it needs to produce goods and services?

suppliers

The ______ environment is affected by forces in the general environment, including economic, technological, socioeconomic, etc.

task

Managers use ____ to design and produce goods and services with the help of equipment, specific skills, and knowledge.

technology

In order to eliminate tariffs between the United States and Central America, ______ was created.

the CAFTA

Fayol stated that effective plans should have four essential qualities, including ______.

unity, continuity, accuracy, and flexibility

Societies that are low on uncertainty avoidance tend to ______.

value diversity and tolerate differences in personal actions and beliefs

One of the building blocks of national culture and of society's core beliefs about individual freedom, justice, democracy and truth is its ______.

values

Society's beliefs in what is good and right represent society's

values

A manager of a medical durable equipment company decides to establish an operation in a foreign country independent of any local direct involvement. This manager is creating a ______.

wholly owned foreign subsidiary

Production operations established in a foreign country independent of any local direct involvement is a ______.

wholly owned foreign subsidiary