Chapters 3-6 Management
Apple introduced its Homepod to the home sound system market that had been previously dominated by Sonos.
Threat of new entrants
Consumers are drinking less diet soda in favor of things like flavored zero calorie water and fresh juices.
Threat of substitute products or services
Believe that their native country, culture, language, and behavior are superior to all others
ethnocentric managers
Expresses the company's worldview
Values
If Uber compares its performance in Canada to the performance of Lyft, it would be
benchmarking
Apple, a company with a strong product line, has strong bargaining power of __________.
buyers
Cameron doesn't mention that his friend hasn't had financial success with her own roaming food truck.
check accuracy of past judgements
Which of Porter's four competitive strategies is IKEA primarily embracing?
cost leadership
After the recent recession, the company sold off vacant buildings.
defensive
When Samir hears an idea that he strongly opposes during a department meeting, he usually keeps quiet about it. He doesn't want to upset the positive atmosphere among his colleagues
engage in lateral thinking
Purchasing Aetna allows CVS to move into a new line of business. This is also known as
diversification
Based on the case, which of the following has not resulted from the McCloskeys's planning and strategic management processes?
higher employee satisfaction
If an organization such as Uber, with a controversial past when it comes to kindness and fairness, decides to enter a new country, it would most likely be met with the most resistance from a country high in
humane orientation
The degree to which individuals are encouraged to be altruistic, caring, kind, generous, and fair
humane orientation
A limit on the numbers of a product that can be imported
import quotas
Uber's expansion on the innovation front depends on its self-driving cars plan. The implementation of this plan would be the responsibility of which of the following managers?
product-line
Risky new ventures of which some will take off, others will not
question marks
Startups in the Internet industry are often considered to be
question marks
When the group is discussing planting a mole at Blue Diamond in order to gather insider information, Hugo speaks up and says this strategy gives him a bad feeling in his gut.
red
In 2018, Novartis, a Swiss multinational pharmaceutical company, acquired Avexis, a clinical-stage gene therapy company.
related diversification
After recent expansion, the company wants to avoid growing too quickly.
stability
If Logan's plans will take a couple years to complete, they are most likely ______.
strategic
The firm's resource is not controlled by just a few firms, in other words, several competing firms exist.
the firm will be equally competitive
Julius asks lots of questions when another team member suggests using a new brand of hidden camera during the operation. He wants to be sure he understands all the ways that the new brand may be better than the one that Spectre has been using in all its previous intelligence gathering operations.
yellow
The extent to which a society expects people to be confrontational and competitive as opposed to tender and modest
Assertiveness
Illuminates the organization's attitude toward its employees
Mission
Outlines the organization's customer base
Mission
The R&D program at the company produces world-class products.
Strengths
Her department plans to introduce 10 revolutionary new lures to the company's already exciting lineup of products over the next two years.
Tactical Planning
Uber's initial public offering (IPO) ambitions represent a ________ strategy, and its interest in developing Uber Air can be considered a(n) ________ strategy.
growth; innovation
During Michael and Norio's meeting, Michael keeps reminding Norio how busy he is, and they are interrupted by someone who says that Michael's next appointment was waiting. This shows that Michael's time orientation is ______.
monochronic
Uber's high growth rate and high market share in the United States would categorize it as a ________ on the BCG matrix.
star
Dalton Skot is the CEO and president of a midsize fishing lure production company. The company has been very successful since its founding five years ago. Dalton has stated that his company makes professional-quality products that are accessible to the recreational angler. A recent article in a popular business magazine quoted him as saying, "The company wants to provide a chance for every person to reach his or her highest fishing potential without sacrificing their retirement savings to do it." The company has worked to keep control of the business in the family. The vice president of operations, Cooper Skot, is Dalton's brother, and the new product development manager is his sister, Sloan Skot. Dalton and Cooper have big plans to grow the company by 50 percent over the next five years. Sloan says her department plans to introduce 10 revolutionary new lures to the company's already exciting lineup of products over the next two years. Some of her special project managers have the designs complete now and are working to streamline the production tools to maximize efficiencies and thus bring costs down. It looks like the company has done some serious planning to support its "tall tale" of success.
.....
"Enjuba exists to better represent the quality and handiwork of the African people through fair trade that benefits the producers, customers, and society at large."
Establish the mission, vision, and values statements
Unchanging; As applicable in 100 years as it is today
Values
Question 1: Organizations and their managers have many more constituent groups to be concerned with than just stockholders. Stakeholders are those people whose interests are potentially affected by an organization's activities, and they may be internal or external to the firm. This activity is important because it is critical for managers to be aware of who their stakeholders are. The goal of this exercise is to challenge your ability to identify where specific stakeholder groups fit into the organization's environment.
...
Which of the following represents the most complete SMART goal for the electric yachts?
Dunamis Motors will sell five electric yachts by the end of the calendar year
Part of the orientation program at Riverside involves new hires reading a series of scenarios and describing how they would deal with them. As a group, the new hires discuss their choices and the related ethical implications.
Instituting Ethics codes and training programs
The extent to which individuals are encouraged and rewarded for loyalty to the group as opposed to pursuing individual goals
Institutional collectivism
Which of the following trading blocs would most directly assist Uber and other American organizations who wish to do business in Mexico?
NAFTA
The degree to which a society's members expect power to be unequally shared
Power Distance
Riverview has a policy that allows employees to report unethical behavior in the company anonymously, without fear of exposure or repercussion.
Rewarding ethical behavior, protecting whistle blowers
One of Uber's new norms under CEO Khosrowshahi is "We do the right thing. Period." Which of the following would have the least impact in assisting Khosrowshahi in living up to this norm? When answering, keep in mind that Uber is currently a private company.
Sarbanes-Oxley Act of 2002
Employees at Riverview go through an extensive background check prior to their employment to make sure there aren't surprises down the road.
Screening Prospective Employees
CEO Khosrowshahi's strategic goal is for Uber to raise funds via an Initial Public Offering (IPO) in 2019. Which of the following would be an example of an operational goal in support of this?
Settling a self-driving car trade secrets lawsuit with Waymo
The McCloskeys developed an ultra-filtration process for a new milk drink. Based on the case and VRIO framework, which of the following is surely true?
The McCloskeys have at least a temporary competitive advantage
The extent to which a society relies on social norms and procedures to alleviate the unpredictability of future events
Uncertainty avoidance
When analyzing the ethical implications of a proposed action, one should weigh the effects of the decision on shareholders versus the effect on
all choices are correct *customers *employees *community *environment
After Michael and Norio initially met, they met again three days later. Between the two meetings, Norio met with other companies and has decided to move forward with them. Norio does not directly tell Michael he is declining to work with him; rather, he wants to keep a good relationship going between the two organizations. Norio's behavior is most closely tied to which of the GLOBE project's nine cultural dimensions?
assertiveness
Based on the ethical decision-making tree, what question is Jason asking in trying to make a decision on the BesTel deal?
does a deal maximize shareholder value?
Nela proposes a potential prototype of an electric yacht to be done in the next year. Which of the following is an example of an operational goal and accompanying action plan for this proposal?
operational goal- develop a prototype in the next 12 months; action plan- modify land batter for water by september
Nela attempts to walk Logan through the development, manufacturing, and sales process for the potential new electric yachts. What type of planning is she trying to do?
strategic
The McCloskeys started Fair Oaks with a plan to see how the farm could convert 430,000 gallons of daily manure into a sustainable asset. This is known as
strategic planning
Assume Khosrowshahi decides to implement policies that he believes will do the greatest good for the greatest number of shareholders. Which of the approaches to deciding ethical dilemmas would this align with?
utilitarian
Gina argues that following procedure is not going to work in this case and that sidestepping the rules will serve the greater good. What approach is Gina taking in this ethical dilemma?
utilitarian
Starbucks is opening a location in China every 15 hours, and just opened its largest location in the world in Shanghai. Which method of international expansion is Starbucks utilizing?
wholly-owned subsidiaries
To grow the company by 50% over the next five years
Strategic planning
Cameron really wants to win this argument and prove Taye wrong.
Pause and seek feedback
This plan gives a general idea of how to respond to a designated situation.
Policy
Based on Carroll's social responsibility pyramid, Uber's "Greyball" may not have made it past which of the following stages?
making a profit
Everett holds strongly to her argument because of her personal experience with stationary and roaming food trucks.
question your beliefs
This plan outlines a set response to particular problems or circumstances.
Procedure
This plan encompasses a wide range of activities or projects.
Program
This type of plan is smaller in scope and less complex.
Project
Luxury fashion brand Coach, Inc. acquired Kate Spade New York—another luxury fashion and lifestyle brand—in 2017.
Related diversification
Goals should be unambiguous and not vague. Dylan tells his interns that he would like for them complete their data entry work more efficiently.
Specific
he United States does not export any materials to North Korea that may help North Korea bolster its nuclear program.
embargoes and sanctions
A complete ban on trade with another country or a prohibition on trading specific types of products, services, or technology to another country
embargos and sanctions
Internal Stakeholders
employees, owners, board of directors
The extent to which a society encourages investment in the future, as by planning and saving
future orientation
The extent to which a society should minimize gender discrimination and role inequalities
gender egalitarianism
Based on the case, Uber's primary overseas expansion struggle has to do with which of the following culture areas?
law and political stability
Imagine you are a Starbucks executive traveling to China from the company's U.S. headquarters. You are going to Beijing to negotiate a commercial real estate deal. Based on what you know about high and low context differences between the United States and China, what should you avoid doing?
quickly getting down to business
Which of the following general environment forces most likely had the most profound effect on Blue Bell's decision making during the recall, especially when they first learned of issues in South Carolina?
sociocultural
Being an ethical person and having integrity are partly rooted in stable personal characteristics, meaning that some people have an easier time doing the right thing than others. However, it is possible to develop your levels of integrity and ethical behavior. This activity is important because it highlights the activities you can partake in to facilitate a habit of showing integrity, ethicality, and concern for the greater good. The goal of this exercise is to challenge your knowledge of the different ways to focus on the greater good and be more ethical.
1. Will started a carpooling group at work. He and three work friends take turns driving the group to and from the office every day. They are able to take advantage of the HOV lane on the freeway, they're all saving gas money, and there are three fewer vehicles on the road each day. -Reduce your carbon footprint 2. Dani arrives at her office at 7:00 am and leaves the building at 5:00 pm. During that time, she only leaves her desk for short restroom breaks. During the winter months, she often doesn't see the sun for days at a time. -Spend time in nature 3. Barbara asked to be moved to a different work area after she noticed the colleagues sitting around her spent a lot of time discussing the ways they were inflating their work hours on monthly time sheets. -Avoid people who lack integrity 4. Cyril finds a way to get some physical activity several times a week, even if it's just working in his yard, doing house chores, or walking his dogs. -Increase your level of exercise 5. Each week, Kia tries to thank one person in her office for something they've done that she's grateful for. -Foster positive emotions in yourself and others 6. Aliyah likes to say "yes" to everything, even when she knows she won't be able to deliver on what she's committing to. -fulfill your promises and keep appointments 7. Gabriel often binge watches TV shows or plays on his phone until 1 or 2 am. This makes it difficult for him to wake up at 6:30 am for work, and he's often groggy and moody during the workday. -get the proper amount of sleep 8. Jasmine watches an episode of the Netflix documentary series Dirty Money every so often to remind herself about how different ethical disasters can start in organizations. -expand your awareness of social realities 9. Tomas is a good employee, but his closest work friends spend about half of their day playing jokes on coworkers instead of doing their jobs and he often can't help but sit back and enjoy their antics. -avoid people who lack integrity 10. Malik started a blog called "things I hate about my job." Every week he posts an anecdote about something that annoys him at work or someone he doesn't like working with. -foster positive emotions in yourself and others 11. Petra buys a bottle of water from the vending machine at her office every day. When she finishes drinking her water, she throws the bottles in the trash can. -reduce carbon footprint 12. Josie works so much that she barely has time to eat, much less go to a gym or get 10,000 steps a day. -increase your level of exercise 13. Lin makes a calendar at the beginning of each week that includes meetings, appointments, and time blocked out to focus on his own projects -fulfill your promises and keep appointments 14. Mario takes a 10-minute work break every couple of hours and sits on the bench outside of his building. On rainy days, he stands by a window and watches the rain fall, focusing on to the sounds it makes against the ground and building. 15. Anderson doesn't read the news, doesn't watch any TV except for fictional series, and has stopped checking his social media because he thinks that seeing what's going on in the world is too depressing. -expand your awareness of social realities 16. Mackenzie has started going to sleep at 10pm every single night and finds that she's now consistently getting 7-8 hours of sleep. -get the proper amount of sleep
Costco currently has locations in Australia and in South Korea. Which of the following trading blocs would reduce tariffs and other trade barriers between the United States, Australia, and South Korea?
APEC
Walmart demanded that all its vendors cut their prices by 15 percent.
Bargaining Power of suppliers
Paz has been an attorney for ten years and decides she can stop attending annual continuing education seminars now that she knows everything there is to know about her job.
Broaden your task and functional knowledge
Which of the following would be an effective SMART goal for Domino's wedding registry?
Each Domino's location will cater at least six weddings by the end of next year
The extent to which people should take pride in being members of their family, circle of close friends, and their work organization
In-group collectivism
Bill and Vance must consistently review the market offering against their original plan to ensure that their product is unique and being produced and marketed effectively.
Maintain strategic control
Goals should somehow be linked to the organization's mission. Quinn's company is very customer-focused. She wants her customer service staff to decrease the time it takes to resolve a customer complaint by 10%.
Result Oriented
This plan designates a specific required action.
Rule
This plan is used for activities that are not likely to be repeated again.
Single-Use
This plan is best for activities that occur over and over again.
Standing
Goals should include a clear time frame for completion. In early September, Lars tells his team they have until December 1st to devise a new cost reduction plan.
Target Dates
Inspires enthusiasm and encourages commitment
Vision
Is appropriate for the times and for the organization
Vision
Is easily understood and well-articulated
Vision
Dunkin' Donuts is mentioned as a company that pursues a cost leadership strategy. Which one of the following companies also uses a cost leadership strategy?
Walmart
Bill and Vance complete an assessment of the market.
assess the current reality
IKEA's product development process is based on extensive market research. Which step of the strategic-management process is most closely related to this development process?
assess the current reality
When Domino's listens to what customers want, to gauge their likes and dislikes as well as new products they might be craving, Domino's is engaging in which stage of the planning and strategic management process (Figure 5.1)?
assess the current reality
Hamil is going on an international business trip to Ireland and wants to know more about what business customs are like there. He researches online to find out about customs surrounding things like leadership, negotiations, meals, and conversational etiquette.
become aware of the context
Ernst pays close attention to the group's dynamic during the intensive meeting. If the group is operating on limited information about Blue Diamond, he ensures someone gathers facts; when he thinks feelings, novel approaches, or unpopular opinions about the intelligence gathering operation aren't being shared enough, he encourages people to share them.
blue
IKEA is strategically positioning itself based on which of the following customer needs?
broad needs, many customers
Domino's introduced salads at one-third of its stores to test their performance before rolling them out to all stores. The launch of salads at these select stores represents which step of the planning/control cycle (Figure 5.5)?
carry out the plan
Have good market share, but slow growth; income can be used for other winners or potential winners
cash cows
Briley is taking a course to learn some basic Hindi in order to prepare for an upcoming business trip to India.
choose something basic
Tripp has started dining weekly at a local Vietnamese restaurant and conversing with the owners before he engages in an important business transaction with a group of Vietnamese clients.
choose something basic
Dollar Tree sells all items for $1 and caters to middle-class customers.
cost-focus
The goal of this strategy is to keep the costs, and therefore prices of a product or service low and target a wide market.
cost-leadership
Waffle House has over 2,000 locations, keeps a simple menu that rarely changes (and hence spends little on R&D to develop new menu items), and most customers' tickets are around $7 or $8. Waffle House appeals to a broad range of consumers, including truck drivers, business travelers, college students, and families.
cost-leadership
External Stakeholders - the task environment
customers, competitors, suppliers, distributors, allies, unions, lenders, governments, interest groups, media
The recent expansion has been successful, but we don't want to spread ourselves too thin.
defensive
Starbucks serves premium quality coffee beverages and food items and has over 28,000 locations across the globe. The company also offers bottled versions of some of its products in grocery stores and has a branded liqueur through its partnership with Jim Beam.
differentiation
Which strategy requires a high level of understanding of what consumers value?
differentiation
The goal of this strategy is to offer unique products or services of superior value to a wide target market.
differentiation strategy
Uber has created new product lines aimed at growing revenue, such as establishing Uber Air, which would function as an air taxi. This strategy is known as
diversification
The least desired spot in the BCG matrix is that of a
dog
Currently, the companies Kodak and Google are examples of _____ and _____ positions, respectively.
dog; star
Slow growth, not much market share—should get rid of these
dogs
Based on the case, how far up Carroll's global social responsibility pyramid (Figure 3.3) did Blue Bell get?
economic responsibility
Melia often purposefully plays the devil's advocate during work meetings because she thinks it's important to help her team avoid potentially costly decisions.
engage in lateral thinking
Former-CEO Kalanick's question of "What kind of brand do we want to be?" represents which stage of the strategic management process?
establish the mission and vision and values
Which of the following is not a reason why Uber has been able to rapidly expand overseas?
ethnocentrism
The firm's resource is valuable, rare, and costly to imitate.
firm will have sustained a competitive advantage
The firm's resource is not particularly costly for other firms to imitate.
firm will have sustained a temporary advantage
A resort company caters to couples without children. Vacationers are guaranteed that they will not be annoyed by loud and disruptive children. This company is using which of the following strategies?
focused-differentiation
Afterglow Cosmetics sells cosmetics that are manufactured in a gluten-free facility, and all of its products are certified gluten-free. Afterglow cosmetics prices are in line with other high-end cosmetics brands.
focused-differentiation
Max is looking to expand his American custom tie manufacturing business in Dallas, Texas, overseas. He has found an organization in Brussels, Belgium, that is willing to partner with him and split the capital requirements. Max and his Belgian partners will be creating a new company that manufactures custom European-style ties. What method of global expansion is Max utilizing?
franchising
Accept that there are differences and similarities between home and foreign personnel and practices and that they should use whatever techniques are most effective.
geocentric managers
Dave Seminsky's ability to open Sumarian Coffee in Shanghai can be attributed to which of the following?
globalization
CVS' purchase of Aetna represents what type of fundamental strategy?
growth
The research and development department and the marketing department make some alterations to a current product with the intention of attracting new customers.
growth
In Mexico people tend to rely on situational cues, such as a handshake, for meaning when communicating with others. If a manager from one of Costco's U.S. locations is traveling to one of Mexico's warehouses, she should be aware that Mexico has a(n) _______ culture.
high-context
At the beginning of the conversation, Norio wants to discuss sushi with Michael, but Michael is more interested in getting the contract signed. Based on what you've learned about global management, it seems Michael was not cognizant of Norio coming from a ______.
high-context culture
Uber's employees are part of ______, while government regulators are part of ______.
internal stakeholders; task environment
Costco has started its operations in China through an e-commerce partnership with Alibaba. Which method of expanding internationally does this exhibit?
joint ventures
Which of the following should be the first consideration when facing an ethical dilemma?
legality of action
Jayma plans to travel to Indonesia, a predominantly Muslim country, on business. She tries to notice the behaviors of her Muslim friends toward one another and sees that men greet men warmly and affectionately, and women greet women in the same fashion, but neither touches or hugs members of the opposite sex. She assumes this is because Muslim men do not respect women. She fails to realize that abstaining from physical contact with members of the opposite sex is one of the ways Muslims show respect for their spouses.
listen and observe
Liam notices that some colleagues from specific countries tend to run behind schedule. At first, he thinks they are being disrespectful of others' time. But he pays close attention and discerns these workers tend to be late for meetings when they are still engaged in deep conversation with individuals in their previous meetings. Rather than focus on time, he realizes they are driven by their relational interactions.
listen and observe
If a proposed action does not _____ shareholder value we should refrain from doing it.
maximize
Companies in industries where there is little cost, including time or money, necessary to enter the marketplace are most vulnerable to the threat of
new entrants
Although the U.S. manager and Asian guest are having a face-to-face meeting to discuss the pending deal, the U.S. manager is unaware of the important messages sent outside of the spoken word. These messages include eye contact, facial expressions, body movements and gestures, use of time and interpersonal space, and touch and are known as _________.
nonverbal communication
The 21-day process used to break down the manure into "compost-like material while releasing biogas, which is captured in pipes" is part of a(n)
operating plan
Once Domino's decided to offer salads, it partnered with Ready Pac Foods to offer each Domino's pizza location prepackaged salads. What type of planning would each location be doing in anticipation of receiving the prepackaged salads?
operational planning
Our product is targeted to young professionals under 35 years of age. That group is growing.
opportunities
The extent to which society encourages and rewards its members for performance improvement and excellence
performance orientation
On Amazon, the average product's cost changes every ten minutes based on data the company collects including rivals' prices.
rivalry among competitors
Rosalie blocks out an hour of her work day each Friday to think quietly about what transpired that week at work.
set aside time to reflect
Tripp sets aside time for work-related reflection each week. He usually spends the time organizing his to-do list for the upcoming week.
set aside time to reflect
The phenomenon that more people are willing to pay premium prices for food grown without pesticides or synthetic fertilizers is a ________ force.
sociocultural
The research and development department and the production department do a great job when we ramp up production, but the customer service department takes time to catch up.
stability
A(n) ________ is the most desired position within the BCG matrix.
star
The United States recently raised taxes on all imported solar panels in order to attempt to make U.S.-made solar panels more competitive
tariffs
The company uses a fair amount of short-term debt financed through the bank. Economic projections indicate that interest rates may rise in the future and credit will be more difficult to obtain
threats
There have been several up and coming companies that are beginning to enter our market space.
threats
Rex is participating in a job rotation program at his new workplace which gives him the chance to get to know as many aspects of the company as possible.
understand the business
Clorox Company, best known for bleach and cleaning products, purchased Burt's Bees, best known for its natural beauty and personal care products, in 2007.
unrelated diversification
In the 1930s, Mars Incorporated (maker of Snickers and other popular candies) purchased Chappell Brothers canned dog food company. Much of Mars' business today comes from pet food brands such as Whiskas and Pedigree. In 2017, Mars acquired VCA, a company that owns hundreds of dog day care facilities and animal hospitals, to add to its Mars Petcare portfolio.
unrelated diversification
What is the primary reason why coffee shops are flocking to China?
It's a new market
"Greyball," Uber's tool to evade legal authorities attempting to crack down on the company for violating local laws, most significantly affects which general environment force?
political-legal
Uber joined forces with Toyota, with the Japanese automaker agreeing to invest in Uber and to explore how the two companies might do ridesharing collaboration. Which method of international expansion does this specific relationship represent?
joint venture
Which of the following is a risk associated with importing goods?
possibly investing a large sum of money to purchase goods not immediately in your possession
Amy, the daughter of Amy's owners, believes that happiness does not come from money...she says it comes from meaning and purpose. Based on this statement, which element of the triple bottom line would Amy be least concerned with?
profit
Drexel is traveling to Italy and wonders what type of outfits would be most appropriate for business meetings. She finds a book about doing business in Italy and reads recommendations regarding dress. She decides to pack her more trendy and stylish pieces.
Become aware of the context
When reviewing the performance evaluation procedures at Riverview, it was discovered that when salespeople lose a bid because they will not offer kickbacks, it is noted in their performance evaluations and those sales are excluded so that the salesperson's evaluation is not negatively impacted.
Creating a strong ethical climate
Assume Costco is opening a location in Kenya and believes that native Kenyan managers best understand native personnel and practices, so the home office leaves them alone. What type of management would Costco be practicing?
Polycentric
Pamela, based in New Jersey, is opening an online storefront that sells a wide variety of goods. In order to save money and time on website design, Pamela has contracted with some individuals in Argentina to create her website. This is an example of
outsourcing
If a social audit was done on Blue Bell during the recall crisis, which area of the triple bottom line would most likely receive a low measurement based on what we know in the case?
people
Take the view that native managers in the foreign offices best understand native personnel and practices, and so the home office should leave them alone.
poly centric managers
If Jason did not want to support Gina's plan solely because of the unpleasant consequences associated with approving a deal absent shareholder consent, he would be on the ______ level of Kohlberg's theory.
preconventional
Henry is proposing to change the manufacturing process at his organization's cement production plant in order to reduce carbon emissions. This change will cause additional expenses for the organization but will make the plant more environmentally friendly. Which of the following questions is Henry analyzing?
would it be ethical not to take action?
Organizations today are held to very high ethical and social responsibility standards through both governmental regulation and public opinion. This activity is important because it is critical for managers to be familiar with the notion of corporate social responsibility. The goal of this exercise is to test your knowledge of Carroll's Corporate Social Responsibility Pyramid. Beckmart, a global retail chain, recently decided to look at its philosophy and practice of corporate social responsibility. As such, Janaya, the company's CEO, asked for a report on the socially responsible activities of her various managers. The results of some of that report follow.
Laila always allows her employees to take time off for charity events. She feels it is important to "give back." -philanthropic responsibility Although the ad that was sent out was wrong, Orlando felt it was important for the stores in his territory to honor the pricing - even though they were losing a little money on each sale. - ethical responsibility As part of her job, Taylor ensures that income is reported properly. Not reporting income during the right period could result in fines. -legal responsibility Asher is diligent at controlling costs in his area. He is always mindful of profitability. -economic responsibility
The employees who work for us are highly skilled and leaders in their field.
strengths
If you don't like the price of something at your local store, you can probably find it online with two-day shipping at a lower price.
Bargaining power of buyers
His company makes professional-quality products that are accessible to the recreational angler.
mission statement
Word is that a new highway is being built in the next couple of years, making it easier to transport our products from the factory.
opportunities
Taye presents specific data from the small business development association's research that strongly favor stationary food trucks.
question your beliefs
Which of Porter's forces is influenced by the other four?
rivalry among competitors
Based on the BCG matrix, IKEA would most likely be labeled a
star
High growth rate, high market share—a definite keeper
stars
Assume Amy's wants to do the greatest good for the greatest number of people. Based on this, which approach to resolving ethical dilemmas would the company most likely employ?
utilitarian
In April 2015, Blue Bell laid off 37% of its 3,900 employees while also furloughing 1,400 more. If the justification was that a "cost-benefit" analysis shows the company's bottom line will be improved in the short run, which approach to deciding ethical dilemmas has been utilized?
utilitarian
Fast fashion retail giant, Zara is able to get designs from the catwalk to the retail store at incredible speeds. Zara can do this because it has acquired most of its supply chain, including designers, manufacturers, and distributors.
vertical integration
The company wants to provide a chance for every person to reach his or her highest fishing potential without sacrificing their retirement savings to do it.
vision statement
Assume Gina goes over Jason's head and upper management approves the deal without the shareholders' approval. If Jason believes this is organizational misconduct and reports it to the public, he would be known as a(n)
whistle-blower
Goals should challenge us but should also be doable. Bethany tries to motivate her personal training clients by telling them she wants them to increase the weight they are lifting by 500%!
Attainable
Idris makes a commitment to have coffee with one person he doesn't know well at his organization each week so that he can learn about their history with the company.
Broaden your task and functional knowledge
Everett remembers that even with her years of experience, her intuition hasn't always led her in the right direction.
Check Accuracy of past judgements and predictions
Articulates the geographical locations where the company competes
Mission
Describes the image the organization wants to project
Mission
Is intended to guide all of the actions in the organization
Values
Limits itself to a small number that employees can recall when making decisions
Values
Reflects high ideals
Vision
In developing its future strategy, CVS is focusing on Amazon, which is expanding into the healthcare business. What stage of the strategic management process does this represent?
assess the current reality
Uber does not own its fleet of cars; rather, it relies on contracted drivers. These drivers represent which competitive force in Uber's environment?
bargaining power of suppliers
Anya raises concerns with every idea the team discusses. She thinks it's important that the team considers potential logistical, legal, and ethical downsides to their strategies before it's too late to change them.
black
Assume Uber planned to cut losses by 40 percent by withdrawing from countries like China and Singapore. A year has now passed since they have withdrawn, and the company determines that losses have actually increased. Which step in the planning/control cycle does Uber need to now execute?
control the direction
CVS' purchase of Aetna is a ________ level strategy.
corporate
Redbox is an example of a company with a __________ strategy.
cost-focus
The goal of this strategy is to keep the costs and prices of a product or service low and target a narrow market.
cost-focus
The goal of this strategy is to offer unique products or services of superior value to a narrow target market
focused-differentiation
Xenia suggests that the group use drones—a novel method of intelligence gathering that they have never considered using in their previous operations.
green
The top managers are considering a merger.
growth
The firm's resource does not allow it to exploit an opportunity or neutralize a threat.
the firm will have a competitive disadvantage
For domestic or regional airlines or routes, there is always the option of taking a car, bus or train. This describes which of Porter's Five Competing Forces?
threat of substitution
Assume you are completing a SWOT analysis for CVS. Amazon's entrance into the healthcare business would fall under which part of the analysis?
threats
Dahlia is a recent college graduate at her first architectural job. She's just getting started financially and decides not to join her field's major professional association because she thinks it's not worth the annual fee.
understand the business
Based on Carroll's global corporate social responsibility pyramid, Amy's is fulfilling which of its responsibilities?
economic, legal, ethical, philanthropic
Which of the following is viewed as the riskiest and most costly form of international expansion?
wholly-owned subsidiaries
External Stakeholders - the general environment
economic forces technological forces sociocultural forces political-legal forces international forces
The United States only allows a certain amount of aluminum sheet to come into the country from China
import quotas
A customs duty or tax levied mainly on imports
tariffs
Management does not provide a big budget to support the world-class staff that work for the company.
weaknesses
The equipment the company owns is last generation and does not have the latest technology
weaknesses
If Costco plans on continued success in Japan, whose citizens tend to take pride in being members of their family, circle of close friends, and their work organization, the warehouse club should focus on the _______________ cultural dimension.
in-group collectivism
After meeting with Norio twice, Michael believes that Norio is not behaving professionally, since he did not discuss the contract in detail and commit to negotiation. By dismissing Norio's cultural norms, Michael is exhibiting ______ behavior.
ethnocentric
Question 3: Organizations are under increasing pressure to do the right thing and serve the public good, and there are a multitude of ways that organizations can be ethical and socially responsible. Although organizations should always consider ways to do this, these decisions often come at a financial cost and thus create dilemmas for organizational decision makers. This activity is important because it highlights the ways that being socially responsible is beneficial for organizations. The goal of this exercise is to challenge your knowledge of research findings on how being ethical and socially responsible pays off for organizations.
Interpersonal Relationships: Companies with effective ethics and compliance cultures find their employees are less likely to retaliate against one another. Customers: Consumers want to spend more money with companies that are socially responsible. Employees: Workers may be happier and less likely to leave when their company is socially responsible. Revenue: Investors are increasingly seeking socially responsible companies to put their money into. Profits: Socially responsible companies generate significantly higher 5-year returns on invested capital. Stock Price: An ethical scandal can cause a company's valuation to plummet.
Goals should be quantifiable in some way. Tiana tells her auto salespeople that she expects them to close at least three new car sales per month.
Measurable
Project managers have the designs complete now and are working to streamline the production tools to maximize efficiencies and thus bring costs down.
Operational Planning
Everett pauses to reflect on the data Taye presented and on whether his disagreement with her view is valid.
Pause and Seek Feedback
Based on what you know about the types of plans, self-driving cars would be an example of which of the following?
program
Cameron reminds herself to speak calmly and use relaxed body language
Watch for communication blocks
Taye calls Everett's point "stupid" during their discussion.
Watch for communication blocks
Business
What amount should we invest in employee development? What sum will we allocate toward facility expansion? How much should we set aside for new product development?
Corporate
What business are we in? What products and services shall we offer? Which joint ventures and/or acquisitions should we pursue?
Functional
Whats the best way to integrate our departments latest innovation with older versions of the product? How should our division market our new program? How should we structure compensation for those working on our teams new initiative?
Vesper keeps her laptop close by during the meeting so that she can answer the team's questions about Blue Diamond's history and operations as they arise.
White
Assume that China imports a significant amount of coffee beans from Vietnam. Which trading bloc would reduce trade barriers between China and Vietnam?
ASEAN
Bill and Vance intend to put their plan into place and implement it by overcoming any market resistance.
Execute the strategies
Bill and Vance need to develop a one- to five-year strategy that communicates Enjuba's general goals as well as how the goals will be achieved.
Formulate corporate, business, and functional strategies
Which of the following parts of the planning/control cycle would allow Dunamis to ensure that Logan's plan is successful after it's been implemented?
comparing the results with the plan
Question 2: Ethics are the standards of right and wrong that influence behavior, and ethical behavior is the accepted or "right" way to behave according to those standards. Managers will often have to choose between courses of action that will promote either economic performance or social performance. In today's marketplace, organizations are under tighter and tighter scrutiny when it comes to ethics. This activity is important because it is critical for managers to be familiar with and understand ethics and how to promote ethical behavior in the workplace. Riverview Manufacturing, as part of an ongoing continuous improvement process, recently completed an ethics audit to determine if there were potential ethical lapses within its organization. While they did not find any glaring problems or issues, they did discover some issues that need to be addressed as well as some best practices that need to be recognized.
....
Ethical dilemmas occur when there's a choice between two alternatives and it's not clear which alternative is the "right" option. Ethical dilemmas can occur when two of our own values conflict, when one of our values conflicts with one of the organization's values, or when two of the organization's values conflict (e.g., financial success vs. social responsibility). This activity is important because ethical dilemmas are common and are difficult to resolve, and knowing the different approaches for resolving them can help you to resolve ethical dilemmas you run up against in the workplace. The goal of this exercise is to challenge your knowledge of the four approaches to resolving ethical dilemmas.
1. The most ethical decision is that which best upholds impartial standards of fairness and equity: Justice Approach 2. The most ethical decision is that which yields the greatest good for the greatest number of people.: Utilitarian Approach 3. The most ethical decision is that which will result in your own best long-term interests: Individual Approach 4. The most ethical decision is that which is most respectful of the fundamental rights of all human beings: Moral-Rights Approach 5. A manufacturing company decides to continue using a chemical that is leaching into the local water supply and potentially causing health problems in those who drink it because the local population is only about 2,000 people, and the company is producing low-cost, lightweight, collapsible tents for 50,000 homeless children: Utilitarian Approach 6.Company policy requires managers to penalize employees earning less than a "Satisfactory" rating on their annual performance review by denying them their annual 2 percent salary raise. A manager applies the penalty to each employee with less than a "Satisfactory," even if she knows that for some employees, the raise would really help their financial situation. Justice Approach 7. A bank's retirement fund manager decides to increase the bank's 401K match from 5 percent to 8 percent, meaning the bank will now match employees' contributions up to 8 percent of their salary. This is a smart long-term decision for the manager because he earns a yearly bonus based on the percentage of their salary that his employees contribute to the retirement fund. Individual Approach 8.A company's chief Human Resources officer decides that even though it will save the company approximately $1 million dollars, cutting employees' medical insurance is not the right decision because of how it would ultimately affect employees' health. Moral-Rights Approach
In 2018, Boeing aerospace company announced its plans to buy KLX, a company that distributes aerospace fasteners and consumables.
vertical integration