MGMT- Exam 2

Which of the following statements about resistance to change is true? a. Overt resistance is less important to an organization than is covert resistance. b. Resistance has emotional, cognitive, and behavioral components. c. Detecting resistance is straightforward as long as organizations use impersonal media to communicate changes. d. Resistance to change will always occur: it is inevitable.

Resistance to change will always occur; it is inevitable.

Which of the following is NOT one of the rules for effective brainstorming? a. Use other members' ideas to come up with more ideas. b. Criticism is not allowed. c. All ideas are acceptable. d. The more ideas, the better. e. Select an open-minded group leader.

Select an open-minded group leader.

Which of the following countries is the largest abroad direct foreign investment of the United States?

United Kingdom

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

e. Rules and regulations

Planning is ultimately based upon ____. a. the relationship between organizational line and staff personnel b. the personality type of the individual engaged in planning c. whether the mission statement is internally or externally oriented d. how a planner deals with bounded rationality e. choosing a goal and developing a method or strategy to achieve that goal

e. choosing a goal and developing a method or strategy to achieve that goal

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? a. focus b. stability c. retrenchment d. diversification e. differentiation

e. differentiation

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? a. technological adaptation b. the era of dominant design c. the technological growth stage d. change substitution e. discontinuous change

e. discontinuous change

Which of the following is NOT a part of the experiential approach to innovation? a. hands-on experience to reduce uncertainty b. testing c. multifunctional teams d. design iterations e. initiative conversations

e. initiative conversations

What are the two types of political risk that affect companies conducting global business?

political uncertainty and policy uncertainty

Which of the following is a trend that has allowed companies to skip the phase model when going global?

quick, reliable air travel

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? a. retrenchment b. stability c. growth d. maturity e. cutback

retrenchment

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

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

Which of the following is NOT one of the characteristics of S.M.A.R.T. goals? a. Synergistic b. Realistic c. Attainable d. Measurable e. Timely

a. Synergistic

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? a. all of these b. tariff and nontariff barriers c. exchange rates d. the strategy of the movie theatre chain e.work force quality

a. all of these

What is the first step for managing innovation during discontinuous change? a. design iteration b. budgeting c. the establishment of a dominant design d. supplier involvement e. process duplication

a. design iteration

Which of the following is a commonly used method for increasing goal commitment? a. encouraging worker participation in goal setting b. keeping goals private c. setting etheical goals d. using a top manager to set goals e. all of these

a. encouraging worker participation in goal setting

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? a.quotas b.subsidies c.boycotts d.customs classifications e.duties

a. quotas

If successful, which strategy is often followed by a growth strategy? a. retrenchment b. stability c. portfolio d. focus e. differentiation

a. retrenchment

What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufacturer? a. single-use plan b. contingency plan c. scenario plan d. standing plan

a. single-use plan

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

b. Grand strategies

In the typical S-curve pattern of innovation, small amounts of effort will result in significant increases in performance ________________. a. during the growth stage of the cycle b. at the midpoint of the cycle c. only at the end of the cycle d. throughout the cycle e. only at the beginning of the cycle

b. at the midpoint of the cycle

According to John Kotter, which of the following actions will adversely influence refreezing efforts? a. removing obstacles to the company's new vision b. declaring victory too soon c. sharing a vision d. creating a powerful enough guiding coalition

b. declaring victory too soon

Which of the following is NOT one of the components of creative work environments? a. challenging work b. group compensation c. freedom d. supervisory encouragement e. organizational encouragement

b. group compensation

Which of the following must be met if a firm's resources are to be used to achieve a sustainable competitive advantage? a. differentiation b. imperfectly imitable resources c. related diversification d. unrelated diversification e. a matrix organizational structure

b. imperfectly imitable resources

Deutsche Bank is the largest bank in the world. Would this give it a sustainable competitive advantage? a. Yes, because size would make its operations synergistic. b. No, because size is not a criteria for sustainable competitive advantage. c. Yes, because large institutions make more effective use of resources. d. No, because large organizations are always targeted for anti-trust activities.

b. no, because size is not a criteria for sustainable competitive advantage.

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)____. a. tariff b. nontariff barrier c. import boycott d. industry subsidy e. industry nationalization

b. nontariff barrier

In case of a fire, most organizations have a series of actions that must take place beginning with notifying the fire department and include evacuating buildings. What kind of a standing plan is described in this example? a. rules and regulations b. procedures c. policy d. organizational norm e. security governance

b. procedures

Which of the adaptive strategies tends to result in the poorest performance? a. nichie marketers b. reactors c. prospectors d. analyzers e. defenders

b. reactors

The acronym GATT stands for the ____. a. General Association for Trade and Tariffs. b. General Agreement on Tariffs and Trade. c. General Accounting for Tariff and Trade. d. General Association on Technology and Trade.

c. General Agreement on Tariffs and Trade

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

c. innovation

Who is responsible for the creation of tactical plans? a. team leaders b. lower-level managers c. middle managers d. top managers

c. middle managers

Which of the following is a disadvantage of face-to-face brainstorming that is overcome by electronic brainstorming? a. negative valence b. delegation errors c. production blocking d. assimilation blocking e. group norm evaluation

c. production blocking

Several Arab countries boycott Coca-Cola products because the soft-drink company maintains product distributors in Israel. This boycott is an example of ____. a. geocentrism b. nationalism c. nationalization d. a trade barrier e. acculturation

d. a trade barrier

Which of the following methods for managing resistance to change should only be used as a last resort or under crisis conditions? a. mentoring b. arbitration c. negotiation d. coercion

d. coercion

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. a. portfolio b. growth c. divesting d. grand

d. grand

How does a company benefit from planning? a. increased use of groupthink b. more compliance with organizational culture c. less solidified group cohesion d. intensified effort, persistence, direction, and creation of task strategies e. the ability to make greater use of devil's advocacy

d. intensified effort, persistence, direction, and creation of task strategies

Which of the following is one of the three steps in the basic process of managing organizational change outlined by Kurt Lewin? a. change definition b. change mentoring c. organizational dialogue d. unfreezing e. incremental change

d. unfreezing

The General Agreement on Tariffs and Trade (GATT) _____________________________ a. eliminate protectionism b. get countries trading freely among themselves c. does all of these

does all of these

Which of the following statements about the strategic reference point theory is true? a. The theory does not consider risk factors. b. The theory is deterministic. c. The theory may lead to bureaucratic management. d. This theory recommends that managers do not change strategic reference points. e. None of these statements about the Strategic Reference Point Theory is true.

e. None of these statements about the Strategic Reference Point Theory is true.