Management Process - Exam 1
What are the strategies that can be used to minimize or adapt to the political risk inherent to global business?
Control, avoidance, and cooperative strategies
The______strategy of minimizing or adapting to the political risk inherent to global business makes use of joint ventures and collaborative contracts
Cooperation
In any organization, the____ are the less visible, internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs.
Core capabilities
Specialized Bicycle Components, Inc. introduced the first major production mountain bike in 1980. Since then, the company has maintained a technological leadership in the production of bike and bike accessories and an organizational culture that encourages innovation. Technological leadership, as well as its organizational culture, are the company's_______.
Core capabilities
Imagine Dow Chemical is conducting a situational analysis. According to its sales, Dow is the second largest chemical company in the world. BASF is the largest. Both companies use a similar strategy. Within Dow's situational analysis, BASF would be classified as a_______.
Core firms
_____forces support the status quo
Resistance
Covisint is an e-commerce venture involving many car manufacturers that allows carmakers access to online auctions for buying component parts and materials. Because the idea of such a Web site was a new concept, the prototype site was built and tested, then revised and rebuilt for further testing before the Web site was ever offered to customers. The management concept of______ was used to develop Covisint.
Design iteration
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
When incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version,_______is said to have occurred
Generational change
Which of the following is one of the sources of resistance to change?
Self-interest
Unverferth Manufacturing makes agricultural equipment. It used finite element analysis (FEA) software to speed up the design cycle for its 12-row sub-soiler. Which aspect of the compression approach to innovation would the use of this software apply?
Shortening the time of individual steps
The development of the DVD player was a source of had once been
Technological discontinuity
The three steps in the basic process of managing organizational change outlined by Kurt Lewin are
Unfreezing, change intervention, refreezing
Starbucks, the operator of Starbucks coffeehouses, also markets a line of compilation CDs and other non-coffee items. The making and marketing of the CDs and other non-coffee products would be an example of__________
Unrelated diversification
The acronym GATT stands for the
General Agreement on Tariffs and Trade
Clorox Corporation controls 60 percent of the bleach market. Imagine you are an entrepreneur who was considering developing and marketing a new brand of bleach. Which of Michael Porter's industry forces should you be most concerned about?
Character of rivalry
An ad for a major brand of clothes washer reads, "Since our humble beginnings back in 1950, we have been dedicated to building machines with superior cleaning power, reliability, and style." This manufacturer is more than likely using which kind of positioning strategy?
Differentiation
_____is a method of investment in which a company builds a new business or buys an existing business in a foreign country
Direct foreign investment
A(n) is a resource that is impossible or extremely costly or difficult for other firms to duplicate
Imperfectly imitable
The General Agreement on Tariffs and Trade (GATT)
Does all of these
In terms of Hofstede's cultural differences, the people who are described as happygolucky and are people who are comfortable with an unstructured life and deal well with sudden changes. In terms of Hofstede's cultural differences, these people have a
Low degree of uncertainty avoidance
Companies need to excel at managing______in order to successfully manage innovation streams.
Sources of innovation
The goals of the compression approach to innovation are
Speed, lower costs, and incremental change of dominant design
Companies often choose a________ strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth
Stability
Kodak is a company associated with photography. The development of the digital camera forced Kodak into the innovation stream because the new imaging process was a(n)
Technological discontinuity
The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the
World Trade Organization
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
Fran Wilson Creative Cosmetics is a medium-sized U.S. company that sells 1.5 million tubes of its lipstick annually in Japan. It has no physical presence within the country beyond the fact its products are sold there. Fran Wilson Creative Cosmetics uses_____to reach the Japanese market
Exporting
When the bargaining power of suppliers and buyers is high, companies in the industry will_____
Find it more difficult to be profitable
_____are both examples of cooperative contracts
Franchising and licensing
Which of the following is an example of a common approach to corporate-level strategy?
Grand strategies
According to Hofstede, when people in a culture are oriented to the present and seek immediate gratification, that culture is described as
Having a short-term orientation
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
Titleist has been manufacturing golf balls for several years, but each year it comes out with new golf ball designs. Titleist's development of the new Pro VI golf ball with a solid core designed to benefit players with high swing speeds is one example of how the manufacturer survives through
Incremental change
Organizational_______is the successful implementation of creative ideas in organizations
Innovation
Organizational development
Is a philosophy and collection of planned change interventions
The signing of the_____created a regional trading zone in Europe
Maastricht Treaty
Resource similarity and 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
______is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of people from a particular country
National culture
All global new ventures share two common factors. One is the bringing of a good or service to several different foreign markets at the same time. The other is
None of these
The Japanese government decreed that Japanese snow was different from all others and required that all snow equipment marketed in the country be made in Japan for safety reasons. The elimination of non-Japanese companies from the market is an example of how______can influence global business.
Policy uncertainty
Starbucks is expanding its global operations into South America in spite of the real probability of civil wars and terrorist activities in many of the continent's nations. As Starbucks expands into South America, it must deal with
Political uncertainty
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
Which of the following factors helps a company determine the growth potential of a foreign market
Purchasing power
Which of the following is a trend that has allowed companies to skip the phase model when going global?
Quick, reliable air travel
To protect its farmers, Japan put limitations on the amount of mushrooms and leeks that could be imported into Japan from China. This limitation is an example of a(n)
Quota
Russia imposed limits on how much poultry, beef, and pork could be imported into the nation from the European Union (EU) in retaliation to limits the EU placed on how much grain Russia could export. What type of nontariff barrier did Russia use to control the amount of poultry, beef, and port it imported from the EU?
Quotas
A(n) _______ resource is a resource that is not controlled or possessed by many competing firms.
Rare
An organization which is a _____ in terms of its adaptive strategy would NOT follow a consistent strategy.
Reactor
The purpose of pre-departure language and cross-cultural training is to
Reduce the uncertainty for those becoming expatriates
From a competitive standpoint,_______ means that the strategic actions your company takes can probably be matched by your direct competitors
Resource similarity
An Internet strategy enabled Nestlé USA to change its way of doing business and allowed the company to change its staid, risk-averse culture; from buying raw materials to processing purchase orders to marketing the roughly 2,000 products that make up its nearly 200 brands. Employees worked to "Make e-business the way we do business." Nestlé USA used______change to reinvent the company.
Results-driven
The purpose of multifunctional teams is to
Speed innovation through early identification of new ideas or problems that would typically not have been generated until much later
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
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 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
Which of the following is NOT one of the basic methods for managing resistance to change?
Change simulation
An organization is experiencing______ when it is reluctant to change strategies or competitive practices that have been successful in the past
Competitive inertia
The highly fragmented chemical industry in Europe has experienced decreasing profits in an industry reluctance to change the way it conducts business, especially in how it competes against lower-priced U.S. imports. This is an example of .
Competitive inertia
While_______ is a problem strongly associated with top managers,________ is a problem more likely to be associated with middle and lower-level managers.
Competitive inertia; strategic dissonance
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 primary disadvantage of using wholly owned affiliates as the means of entering a foreign market is
Costs
Which of the following is a component of a creative work environment that encourages creativity?
All of these
In the typical S-curve pattern of innovation, small amounts of effort will result in significant increases in performance_________
At the midpoint of the cycle
Uganda is one of only two countries in the world that produce a mineral required in the manufacturing of cellular phones. A company which mines that rare mineral decided to not invest in the country due to a bloody civil war resulting from a change in rulers. The mining company used a(n)
Avoidance strategy
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
A(n)_______is the individual who is formally in charge of guiding a change effort
Change agent
Which of the following statements about portfolio strategy is true?
Dysfunctional consequences can occur when companies are categorized
Organizational development
Is accurately described by all of these
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
The purpose of a______strategy is to turn around very poor company performance by shrinking the size or scope of the business
Retrenchment
The_____strategy is analogous to pruning flowers
Retrenchment/recovery
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?
Risk can be reduced through related diversification (creating or acquiring companies in related businesses)
According to strategic reference point theory, managers have two basic strategic alternatives. They are________________
Risk-avoiding strategy and risk-seeking strategy
The use of milestones in the experiential approach to innovation______
Shortens the innovation process
The two general kinds of trade barriers are
Tariff and nontariff barriers
An industry-level strategy that is best suited to changes in the organization's external environment is a(n)
Adaptive
A situational analysis for a manufacturer of pet food might reveal which of the following facts______.
All of these
Which of the following factors should be considered when choosing an office/manufacturing location in the Brazilian market for a U.S. company that operates cinemas and wants to open a chain of movie theatres there?
All of these
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 an organizational impediment to creativity in a work environment?
All of these
Which of the following statements describes an advantage of the results-driven change approach to managing change?
All of these were cited as advantages of the results-driven change approach.
A country or region that has an attractive business climate for companies that want to go global has
An effective but cost-efficient place to build an office or manufacturing site
Among companies who use the adaptive strategies,______blend the strategies used by_____
Analyzers; defenders and prospectors
Downsizing has thinned the ranks of hospital personnel. Hospital employees were adamantly resisting any more change. What method could hospital administrators use to manage this resistance?
Any or all of these
The first step in the strategy-making process is to .
Assess the need for strategic change
In the typical S-curve pattern of innovation, increased effort (i.e., money, research, and development) brings only small improvements in technological performance when performance limits of the technology are reached_________
At the end of the cycle
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
BCG matrix
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
According to social psychologist Kurt Lewin, _____ lead to differences in the form, quality, or condition of an organization over time, while _____ support the status quo, or the existing state of conditions in an organization
Change forces; resistance forces
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. During the organizational change, having this vision was especially important during the_______stage
Change intervention
_____is the measure of the intensity of competitive behavior between companies in an industry
Character of the rivalry
Which of the following methods for managing resistance to change should only be used as a last resort or under crisis conditions?
Coercion
Hohner is a company that manufactures and markets harmonicas, a product with a steady demand rate. It is so successful at what it does that the company controls 85 percent of the world's harmonica industry. In terms of the adaptive strategies, Hohner would most likely be categorized as a(n)
Defender
Kodak is a company associated with photography. The company has recognized that digital photography is a threat to the future growth of the company. Therefore, the company has decided to become a market leader in digital imaging while still providing customer support for people still using film cameras. The existence of both technologies is an example of
Design competition
When resistance to change is based on insufficient, incorrect, or misleading information, managers should use as an approach to manage resistance
Education and communication
There are eight general steps for organizational development intervention. The first step is
Entry
Hewlett-Packard is currently exploring new products and markets through the development of digital imaging products in its plants in India, South Africa, and the United States. To jump-start this innovative process, Hewlett- Packard can_____ across all of its plants around the world
Establish creative work environments
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
The_________ approach to innovation assumes that innovation is occurring within a highly uncertain environment and that the key to fast product innovation is to use intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding.
Experiential
_____occurs when a company sells domestically produced products to customers in foreign countries.
Exporting
Which of the following represents the correct sequence for the phase model of globalization?
Exporting; cooperative contracts; strategic alliances; wholly-owned affiliates
When Clorox Corporation, the manufacturer of bleach and bleach-based cleaning products, acquired Kingsford Charcoal and Prime Choice brand steak sauce; it was an example of
External growth
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
Which of the following organizations are most directly in competition with each other?
FedEx and UPS
According to Hofstede's research on cultural dimensions cultures emphasize the importance of relationships, modesty, caring for the weak, and quality of life
Feminine
Hofstede's research has shown that there are
Five consistent dimensions of cultural differences across countries
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
The positioning strategies identified by Michael Porter are_______
Focus, cost leadership, and differentiation
Protectionism is the use of trade barriers to protect local companies and their workers from
Foreign competition
A multinational company that acts with_______has offices, manufacturing plants, and distribution facilities in different countries all which run based on the same rules, guidelines, policies, and procedures
Global consistency
In a multinational firm, managers at company headquarters typically prefer an emphasis on simplifies decisions
Global consistency
New companies with sales, employees, and financing in different countries that are found with an active global strategy are called
Global new ventures
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
Government import standard
The Japanese government has proclaimed that its snow is different from that found in any other region of the world and as a result ensures that all snow skis marketed for sale in Japan must be manufactured in Japan. This is an example of a(n)
Government import standard
A_________ strategy is a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use
Grand
The two major approaches to corporate-level strategy are_______
Grand strategies and the portfolio strategy
Which of the following is NOT one of the components of creative work environments?
Group compensation
Companies can achieve growth mainly by
Growing internally through direct expansion or creating new businesses
McDonald's uses a______ strategy (a kind of grand strategy) as it increases its profits in France by offering uniquely French products such as Croque McDo, the McDonald's version of a popular French grilled sandwich
Growth
A news article on Latin America read, "Mexico is the closest Latin America gets to the U.S. both geographically and culturally." According to Hofstede, this means the Mexican culture
Has a masculine orientation
As direct competitors, UPS and FedEx would have_____
High degree of market commonality
The evidence clearly shows that international assignment. is the most important factor in determining the success or failure of an
How well an expatriate's spouse and family adjust to the foreign culture
A(n)_____strategy is a corporate strategy that addresses the question "How should we compete in this industry?"
Industry-level
Which of the following is NOT a part of the experiential approach to innovation?
Initiative conversations
Patterns of innovation over time that can create sustainable competitive advantage are called
Innovation streams
German chip manufacturer Infineon AG has joined with Motorola Inc. and Agere Systems Inc. to establish a new company to develop and license chip designs for cellphones. These three companies have created a
Joint venture
In Canada, two automobile companies have entered into a to create CAMI Automotive. One firm's management runs the plant, which makes the other's cars. The agreement gives one access to the other's dealers to sell its brand of vehicles
Joint venture
Robert Mondavi Wineries entered into an agreement with Baron Philippe de Rothschild, owner of Boreaux'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
Joint venture
_____is a strategic alliance in which two existing companies collaborate to form a third, independent company.
Joint venture
A technology cycle occurs whenever there are major advances or changes in the_______in a field or discipline
Knowledge, tools, and techniques
Sodima is a French cooperative that owns the name, the trade secrets, and the patents on Yoplait yogurt. General Mills pays Sodima for the right to sell Yoplait yogurt in the United States. This is an example of
Licensing
An expatriate is someone who
Lives and works outside of his or her own country
Under conditions of advantage_________ , a competitive attack by the stronger rival is more likely to produce sustained competitive
Low resource similarity
Which of the following countries has the largest direct foreign investment in the United States?
Netherlands
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
Which of the following statements about the strategic reference point theory is true?
None of these statements about the Strategic Reference Point Theory is true.
According to the text, valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are resources.
Nonsubstitutable
When making travel plans, many tourists have selected Thomas Cook, a British tour operation, because they perceive that no other tour company can duplicate the customer service and satisfaction that Thomas Cook has provided over its years of operation. Thomas Cook has apparently created a sustainable competitive advantage by using resources.
Nonsubstitutable
A________is a nontax method of increasing the cost or reducing the volume of imported goods
Nontariff barrier
The Japanese government has proclaimed that its snow is different from that found in any other region of the world. As a result, all snow skis marketed in Japan must be manufactured in Japan. This is an example of a(n)
Nontariff barrier
The________is a regional trade agreement that liberalizes trade between countries more than any other such agreement
North American Free Trade Agreement
Which of the following approaches is aimed at changing large systems, small groups, or individuals?
Organizational development
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
When Gregg Steiner became the vice president for Cleveland-based Pinxav, he knew the diaper-rash product manufacturer's sales were declining. At a trade show Steiner was pitching the product to some new mothers who had never heard of it. The mothers weren't convinced that they should part with their money for a new-to-them product. The inspired Steiner said, "If you're not happy with the product, I will not only give you your money back, I'll buy you our competitors' product. I'll buy you whatever other brand you want." Suddenly the women were interested, and they all plunked down their money. None of the women ever took Steiner up on his offer. So Steiner decided to make it part of his business practice. This new guarantee was an example of
Organizational innovation
In a situational analysis, a strategic group is a group of_______ that top managers choose for comparing, evaluating, and benchmarking their company's strategic threats and opportunities.
Other firms within an industry
Historically, most companies have used the_______to successfully enter foreign markets
Phase model of globalization
The first step in the compression approach to innovation is
Planning
What are the two types of political risk that affect companies conducting global business?
Political uncertainty and policy uncertainty
Cost leadership, differentiation, and focus are the three types of______ strategies discussed in the text
Positioning
According to Harvard professor Michael Porter, five industry forces (character of rivalry, threat of new entrants, threat of substitute products or services, bargaining power of suppliers, and the bargaining power of buyers) determine an industry's overall attractiveness and its_______
Potential for long-term profitability
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
A cosmetics company that is considering entering the South American market would be especially interested in the discretionary income within that region. In other words, which of the following would be a determining factor in its global strategy?
Purchasing power
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
As Malta got ready for its admittance into the European Union (EU), all taxes on the importation of goods manufactured in Malta were eliminated. Malta was preparing to become part of a(n)
Regional trading zone
Deutsche Bank became the world's largest bank through mergers with Bankers Trust, a transatlantic banking operation. Since both banking companies had similar core capabilities, this would be classified as an example of
Related diversification
The research on diversification in portfolio management indicates that the best approach is probably_____
Related diversification
Which of the following statements about resistance to change is true?
Resistance to change will always occur; it is inevitable
The General Electric workout is a special kind of
Results-driven change
If successful, which strategy is often followed by a growth strategy?
Retrenchment
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. What type of a grand strategy was ICI using?
Retrenchment
Significant cost reductions, layoffs of employees, closing of poorly performing stores, offices, or manufacturing plants, or closing or selling entire lines of products or services would be characteristic of a__________ strategy
Retrenchment
Nearly all technology cycles follow the typical_____ pattern of innovation
S-curve
When doing an analysis of strategic groups to assess external environmental threats and opportunities, firms______ are firms that use related but somewhat different strategies than_____
Secondary; core
A___________ also called a SWOT analysis for strengths, weaknesses, opportunities, and threats, is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment.
Situational analysis
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?
Situational analysis
Companies that are following a________ strategy would be most likely to try to improve the way in which they sell the same goods or services to the same customers
Stability
Specialized Bicycle Components, Inc. introduced the first major production mountain bike in 1980. Two-thirds of its profits come from the sale of mountain bikes. Specialized bikes have a large share of a fast-growing market. According to the BCG matrix, specialized mountain bikes would be classified as_____
Stars
An organization is experiencing_____ when there is a discrepancy between upper management's intended strategy and the strategy actually implemented by the lower levels of management.
Strategic dissonance
For companies whose main products will not be seen by consumers and whose skills lie in productivity anonymity, a_____could be to create a brand image to create a distinctive competence.
Strategic reference point
_____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
______are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries
Subsidies
Top-Flite manufactures Strata golf balls and prices these balls at about three times what ordinary golf balls cost. The Strata ball sells exceptionally well because customers perceive its patented three-layer construction to improve handling and increase distance. The patent on these golf balls gives Top-Flite a(n) .
Sustainable competitive advantage
In 2000, the United States imposed a tax on all steel imports in an effort to protect about 5,000 jobs. This tax is an example of a(n)
Tariff
______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
In terms of innovation streams, what occurred when customers purchased flat-screen computer monitors to replace the older, bulkier monitors.
Technological substitution
The purchase of new technologies to replace older ones is an example of
Technological substitution
________is the knowledge, tools, and techniques used to transform inputs into outputs
Technology
Global business is defined as
The buying and selling of goods and services to people from different countries
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?
Several Arab countries boycott Coca-Cola products because the soft-drink company maintains product distributors in Israel. This boycott is an example of
Trade barrier
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 this 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
When Clorox Corporation, a manufacturer of bleach and bleach-based cleaning products, acquired Kingsford Charcoal and Prime Choice brand steak sauce; it was an example of______
Unrelated diversification
Which of the adaptive strategies tends to result in the poorest performance?
Reactors
In the typical S-curve pattern of innovation, increased effort (i.e., money, research and development) brings only small improvements in technological performance ________
At both the beginning and end of the cycle
_____is used to assess how well managers and their families are likely to adjust to foreign cultures
Adaptibility screening
An Internet strategy enabled Nestlé USA to change its way of doing business and allowed the company to change its staid, risk-averse culture; from buying raw materials to processing purchase orders to marketing the roughly 2,000 products that make up its nearly 200 brands. Employees worked to "Make e-business the way we do business." In terms of organizational development, the process described here is primarily a(n)_____intervention
Large system
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
Ford Motor Company owns and operates a $1.9 billion manufacturing plant in Brazil. What method for organizing for global business has Ford used in this example?
Wholly owned affiliate
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
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
NTL is the largest cable company in the United Kingdom. The company has recently declared bankruptcy and needs to engage in restructuring in order to give it more flexibility and allow it to raise capital. Since it has identified the need for strategic change, what would be the organization's next step in this strategy-making process?
Conducting a situation analysis
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
______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
Cooperative contract
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
When The Home Depot opened stores in Canada, it ran a series of ads featuring an animated hammer that showed that the U.S.-based home improvement store had the lowest prices. According to Michael Porter, which of the following positioning strategies did The Home Depot adopt to deal with existing Canadian stores that sold similar products?
Cost leadership
Aveda is a manufacturer and marketer of cosmetics, perfumes, hair-care, and skin-care products. To differentiate its products from other similar brands, Aveda focuses on educating its customers on general skin and hair care. Its salespeople are trained to answer questions and help customers find solutions. Aveda has used customer education and employee training to
Create a competitive advantage
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
The Green Giant consumer products company learned that it could not use their Jolly Green Giant character in parts of Asia where a green hat worn by a man signifies that he has an unfaithful wife. This is an example of a(n)_____that influenced global marketing.
Cultural difference
Starbucks is a chain that is rapidly expanding its global operation. As it expanded into South America, its research showed that Chileans on average drink only 150 cups of coffee annually, and people in Argentina only drink about half that amount. An average citizen of the United States drinks 345 cups annually. These differences in annual coffee consumption most likely reflect
Cultural differences
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
Cycle
According to John Kotter, which of the following actions will adversely influence refreezing efforts?
Declaring victory too soon
Unverferth Manufacturing has been a manufacturer and supplier of innovative agricultural equipment since 1948. Recently it began developing a new 12-row 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______to produce the best possible tiller before introducing it to the market.
Design iteration
What is the first step for managing innovation during discontinuous change?
Design iteration
Kodak is a company associated with photography. The company has recognized that digital photography is a threat to the future growth of the company's film business. Therefore, the company has decided to become a market leader in digital imaging. As Kodak tried to compete in this new innovation stream, it entered
Discontinuous change
When a U.S. automaker learned that it took longer than any other U.S. car manufacturer to assemble a vehicle, it purchased newer, more flexible manufacturing systems to replace its older ones. Which stage of the technology cycle did it enter?
Discontinuous change
_____is the phase of a technology cycle characterized by technological substitution and design competition
Discontinuous change
Specialized Bicycle Components, Inc. introduced the first major production mountain bike in 1980. Two-thirds of its profits come from the sale of mountain bikes. It is recognized worldwide for its ability to design and produce superior mountain bikes. This ability is its____.
Distinctive competence
While______are tangible,_____are not.
Distinctive competencies; core capabilities
The use of milestones in the experiential approach to innovation______
Does all of these
The auto industry has been perfecting the internal combustion engine (ICE) for some 120 years. The Partnership for a New Generation of Vehicles (PNGV), a cooperative program between the Big Three and the U.S. government to replace ICEs with electric engines, has been operating since 1993. The internal combustion engine (ICE) is an example of
Dominant design
A country or region that has an attractive business climate for companies that want to go global has found an
Easy access to growing markets
The most important factor used by a globalizing company for determining if a country or a region has an attractive business climate is
Easy access to growing markets