Exam 2- MGMT 3302
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.
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 statements about portfolio strategy is true?
Dysfunctional consequences can occur when companies are categorized.
The signing of the ____ created a regional trading zone in Europe.
Maastricht Treaty
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 is a possible outcome of planning?
Planning may harm individual and organizational performance.
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).
Nearly all technology cycles follow the typical ____ pattern of innovation.
S-curve
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
___ 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
One of the major questions that a company must typically answer about its future, once it has decided
To what extent should the company standardize or adapt business procedures?
Among companies who use the adaptive strategies, ____ blend the strategies used by ____.
analyzers; defenders and prospectors
The use of ____ in planning produces a false sense of certainty and is often cited as one of the major pitfalls of planning.
assumptions
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
Planning works best when the goals and action plans at the ____ of the organization support the goals and action plans at the ____ of the organization
bottom and middle; top
A(n) ____ strategy is a corporate strategy that addresses the question "How should we compete in this industry?"
industry level
Organizational ____ is the successful implementation of creative ideas in organizations.
innovation
In terms of Hofstede's cultural differences, the people who are described as happy-go-lucky 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
Under conditions of ____, a competitive attack by the stronger rival is more likely to produce sustained competitive advantage.
low resource similarity
Who is primarily responsible for developing operational plans?
lower-level managers
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
____ plans direct the behavior, efforts, and priorities of operative employees for periods ranging from one to six months.
operational
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
Historically, most companies have used the ____ to successfully enter foreign markets.
phase model of globalization
Cost leadership, differentiation, and focus are the three types of ____ strategies discussed in the text.
positioning
In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that was bottling pirated Coke in dumped bottles. The company recognized this unauthorized bottler as a(n) ____.
problem
____ are standing plans that indicate the specific steps that should be taken in response to a particular event.
procedures
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
A(n) ____ resource is a resource that is not controlled or possessed by many competing firms.
rare
op management is responsible for developing long-term ____ that make clear how the company will serve customers and position itself against competitors in the next two to five years.
strategic plans
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 advant
A department store is experiencing greater than usual losses due to theft and management wants it stopped. Middle management decided to hire a security company to study the problem and develop the best plan for dealing with it. Middle management have implemented a(n) ____ plan.
tactical
____ plans are plans that specify how a company will use resources, budgets, and people to accomplish specific goals within its mission.
tactical
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) ____.
tarriff
Companies need to excel at managing ____ in order to successfully manage innovation streams.
the sources of innovation
A sustainable competitive advantage exists for an organization when other companies have tried unsuccessfully to duplicate the advantage and ____.
those companies have, for the moment, stopped trying to duplicate the advantage
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
Which of the following is one of the six steps in the rational decision-making process?
weight the criteria
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
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 goal of a company was to reduce the expenses incurred by the sales force. A manager examining weekly expense sheets would be using which of the accepted methods for tracking progress toward goal achievement?
gathering and providing performance feedback
In the 1960s, Coca-Cola executives in Atlanta learned there was a bottler in the Colombian jungle that was bottling pirated Coke in dumped bottles. Coke decided in the ____ stage of the rational decision-making process that it had to either bring some sort of legal action against the unauthorized bottler, ignore it, or buy it.
generation of alternative courses of action
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
Which of the following is an example of a common approach to corporate-level strategy?
grand strategies
For options-based planning to work, the organization must ____.
have slack resources
One of the benefits of planning is how it ____.
- encourages people to work faster - encourages people to try a variety of different ways to do other jobs - reduces employee turnover -eliminates all discriminatory
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 ____.
a dominant design
According to the text, which of the following is a pitfall of planning?
a false sense of certainty based on faulty assumptions
As direct competitors, UPS and FedEx would have ____
a high degree of market commonality
____ is the emotional reaction that can occur when disagreements become personal rather than professional.
a-type conflict
A(n) ____ lists the specific steps, people, resources, and time period for accomplishing a goal.
action plan
____ is used to assess how well managers and their families are likely to adjust to foreign cultures.
adaptability screening
A(n) ____ is the individual who is formally in charge of guiding a change effort.
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
Which of the following methods for managing resistance to change should only be used as a last resort or under crisis conditions?
coercion
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
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
A(n) ____ 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
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
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
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
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
The ____ is a decision-making method in which a panel of experts responds to questions and to each other until an agreement is reached on how a specific issue should be handled.
delphi technique
Discontinuous change in an innovation stream is characterized by ____.
design iteration
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
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
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.
easy access to growing markets
One of the benefits of planning is how it ____.
encourages people to engage in behaviors directly related to goal accomplishment
The most popular approach to increasing goal commitment is ____.
encouraging workers' participation in goal setting
Neither Chile nor Peru has a mass-market café culture, but that fact has not stopped Starbucks from trying to determine what can be done to make its coffee houses successful in those markets. By recognizing that people in these two South American countries do not drink coffee like people in the United States and that they should change this habit, Starbucks has begun a ____ process with problem identification.
rational decision making
An organization which is a ____ in terms of its adaptive strategy would NOT follow a consistent strategy.
reactor
____ forces support the status quo.
resistance
_______ are the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, to create and sustain competitive advantage, and to fulfill a need or solve a problem.
resources
The ____ strategy is analogous to pruning flowers.
retrenchment/recovery
according to strategic reference point theory, managers have two basic strategic alternatives. They are ____.
risk-avoiding strategy and risk-seeking strategy
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 ____ firms.
secondary; core
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
What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufacturer?
single-use plan