Management Test-2

General Agreemnet on Tariffs and Trade (GATT)

A worldwide trade agreement that reduced and eliminated tariffs, limited government subsidies, and established protections for intellectual property

Components of Creative Work Environments

-Organizational encouragement -Supervisory encouragement -Work group encouragement -Freedom -Lack of organizational impediments -Challenging work

Adaptive Strategies

Adaptive strategies: another set of industry-level strategies. Whereas the aim of positioning strategies is to minimize the effects of industry competition and build a sustainable competitive advantage, the purpose of adaptive strategies is to choose an industry-level strategy that is best suited to changes in the organization's external environment. The four kinds: Defenders: Seek moderate, steady growth by offer-ing a limited range of products and services to a well-defined set of customers. -In other words, defenders aggressively "defend" their current strategic position by doing the best job they can to hold on to customers in a particular market segment. Prospectors: Seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market. Analyzers: Are the blend of the defender and prospector strategies. They seek moderate, steady growth and limited opportunities for fast growth. Analyzers are rarely first to market with new products or services. Instead, they try to simultaneously minimize risk and maximize profits by following or imitating the proven successes of prospectors. Reactors: Reactors companies that do not follow a consistent adaptive strategy but instead react to changes in the external environment after they occur

A-type Conflict

Affective Conflict: the emotional reactions that can occur when disagreements become personal rather than professional -A-type conflict often results in hostility, anger, resentment, distrust, cynicism, and apathy -Unlike c-type conflict, a-type conflict undermines team effectiveness by preventing teams from engaging in the activities characteristic of c-type conflict that are critical to team effectiveness.

Groupthink

Groupthink: occurs in highly cohesive groups when group members feel intense pressure to agree with each other so that the group can approve a proposed solution. -Because groupthink leads to consideration of a limited number of solutions and restricts discussion of any considered solutions, it usually results in poor decisions. -Groupthink is most likely to occur under the following conditions: -The group is insulated from others with different perspectives. -The group leader begins by expressing a strong preference for a particular decision. -The group has no established procedure for systematically defining problems and exploring alternatives. -Group members have similar backgrounds and experiences."

Organizational Innovation

Organizational Innovation: The successful implementation of creative ideas in organizations

Change Tools and Techniques

Results-driven change: Supplants the emphasis on activity with a laser-like focus on quickly measuring and improving results. General electric workout: Quickly experimenting with new ideas to solve customer problems and learn from repeated tests and improvements Organizational development: A philosophy and collection of planned change interventions designed to improve an organization's long-term health and performance

SWOT Analysis

Situational Analysis (SWOT): an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment -SWOT analysis helps a company determine how to increase internal strengths and minimize internal weaknesses while maximizing external opportunities and minimizing external threats

S.M.A.R.T Goals

Specific Measurable Attainable Realistic Timely

Tariff & Non-tariff Barriers

Tariff: A direct tax on imported goods Non-Tariff Barriers: Non-tax methods of increasing the cost or reducing the volume of imported goods Types: Quotas: A limit on the number or volume of imported products Voluntary export restraints: Voluntarily imposed limits on the number or volume of products exported to a particular country Government Import Standard: A standard ostensibly established to protect the health and safety of citizens but, in reality, is often used to restrict imports Subsidies: Government loans, grants, and tax deferments given to domestic companies to protect them from foreign competition Customs classification: A classification assigned to imported products by government officials that affects the size of the tariff and the imposition of import quotas

Technology Cycle

Technology Cycle: A cycle that begins with the birth of a new technology and ends when that technology reaches its limits and is replaced by a newer, substantially better technology

Political Uncertainty

The risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events

World Trade Organization (WTO)

World trade organization (WTO): The successor to GATT; the only international organization dealing with the global rules of trade between nations; its main function is to ensure that trade flows as smoothly, predictably, and freely as possible

Policy Uncertainty

the risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business

Types of Operational Plans

•Single-use plans: Cover unique, one-time-only events •Standing plans: Used repeatedly to handle frequently recurring events -Types - Policies, procedures, and rules and regulations -save managers time because after the plans are created, they can be used repeatedly to handle frequently recurring events. •Budgeting: Managers decide how to allocate available money to best accomplish company goals

Boston Consulting Group Matrix

BCG Matrix: a portfolio strategy that managers use to categorize their corporation's businesses by growth rate and relative market share, which helps them decide how to invest corporate funds. *look at picture 6.4 Stars: Companies that have a large share of a fast-growing market. To take advantage of a star's fast-growing market and its strength in that market (large share), the corporation must invest substantially in it. The investment is usually worthwhile, however, because many stars produce sizable future profits. Question marks: companies that have a small share of a fast growing market. If the corporation invest in these companies, they may eventually become stars, but their relative weakness in the market (small share) makes investing in question marks riskier than investing in stars. Cash Cow: "companies that have a large share of a slow-growing market. Companies in this situation are often highly profitable, hence the name "cash cow." Dogs: companies that have a small share of a slow-growing market. As the name suggests, having a small share of a slow-growth market is often not profitable.

C-type Conflict

Cognitive Conflict: disagreement that focuses on problem and issue related differences of opinion -group members disagree because their different experiences and expertise lead them to view the problem and its potential solutions differently. -C-type conflict is also characterized by a willingness to examine, compare, and reconcile those differences to produce the best possible solution.

Porter's Five Industry Forces

Porter's Five Industry Forces: determine an industry's overall attractiveness and potential for long-term profitability *Look at picture 6.6 Character rivalry: a measure of the intensity of competitive behavior among companies in an industry. Threat of new entrants: a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry. -If new companies can enter the industry easily, then competition will increase, and prices and profits will fall. Threat of substitute products or services.: a measure of the ease with which customers can find substitutes for an industry's products or services. -If customers can easily find substitute products or services, the competition will be greater, and profits will be lower. If there are few or no substitutes, competition will be weaker, and profits will be higher. Bargaining power of suppliers: a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs -When companies can buy parts, materials, and services from numerous suppliers, the companies will be able to bargain with the suppliers to keep prices low. Bargaining power of buyers: a measure of the influence that customers have on a firm's prices -"f a company sells a popular product or service to multiple buyers, then the company has more power to set prices.

Proximal and Distal Goals

Proximal goals: Short-term goals or subgoals Distal goals: Long-term or primary goals