MGMT Test 3
Fung Kim Ping is a toymaker who lives in Guangdong, China. She makes soft, squishy light-up ducks that delight her clients, including visitors from other countries. One of Kim Ping's best clients is Abdel Errihani, a businessman who owns several large toy stores in Morocco. Abdel is trying to persuade Kim Ping to develop an international business, starting in Marrakesh. Kim Ping is considering several strategies for going global, and she asks you for help in evaluating the pros and cons of each approach. First, Kim Ping wants to know how firms normally transition from being domestic to being global. Suppose Kim Ping and Abdel decide to set up a joint venture. Working together, the two companies will build a new, independent manufacturing facility in Morocco. What problems might Kim Ping and Abdel encounter with their joint venture? Check all that apply.
-Kim Ping and Abdel may find themselves engaged in a power struggle as they determine how to run the new business. --Because Kim Ping and Abdel must share their profits from the new venture, the profit available for each of them may be less.
Which of the following is an advantage of unity of command?
It prevents the confusion that might arise when an employee receives conflicting commands from two different bosses.
Which company has high femininity?
The fishermen in the small salmon fishing cooperative of Kodiak Island, off the coast of Alaska, routinely help each other by sharing information on where fish are biting, providing each other with materials for boat repairs, and sharing the profits from their catches. In addition, they donated almost 13,000 pounds of salmon to a nearby village with a 25% unemployment rate.
In the context of organizational environments, which of the following is true of mechanistic organizations?
They are characterized by specialized jobs and responsibilities.
Which of the following is an error that managers make in the refreezing phase?
They declare victory too soon.
Which of the following is an advantage of virtual organizations?
They let companies share costs and are fast and flexible.
____________ is a regional trade agreement between Argentina, Brazil, Paraguay, Uruguay, and eight other countries.
UNASUR
Cisco Systems uses a differentiation strategy. They offer their customers the latest in routers and switches. Cisco products may cost a bit more, but customers believe they are worth every penny. Cisco Systems will be more effective if it has ------------ structure.
an organic
Because employees simply switch from one specialized job to another, ---------- allows companies to retain the economic benefits of specialized work.
job rotation
Stephanie is a receptionist at Violetcoast Corp. Over a period of six months, Stephanie has done a variety of jobs, such as data entry and preparing financial statements, along with her daily work. This scenario is an example of _____.
job rotation
Companies adopting a(n) __________ approach are likely to have different products, policies, and procedures for operations in different countries
local adaptation
Companies use technology cycles and innovation streams for which of the following purposes? Check all that apply.
to respond to enviromental change to create enviromental advantage to protect from stratigic threats
Kim Ping is considering several strategies for going global, and she asks you for help in evaluating the pros and cons of each approach. First, Kim Ping wants to know how firms normally transition from being domestic to being global. Identify the order in which the following phases typically occur during globalization. Phase Order Strategic alliances ______3___ Exporting ____1_____ Wholly owned affiliates _____4____ Cooperative contracts ____2_____
3-1-4-2
Negotiation
A cab company manager wants his employees to change their work shifts so that they work 6 hours per day, 6 days per week. The cab drivers, who are currently working 9 hours per day, 4 days per week, are not happy with the idea. Eventually, after much bargaining, the manager and employees agree that the drivers will work 7 hours and 12 minutes per day, 5 days per week.
Participation -
A company has a large open-office space in which different types of employees are scattered almost at random throughout the building. The sales employees decide that they would like to sit together, so they invite the editors, content developers, user experience coordinators, and computer programmers to work with them on developing a new seating chart for the office.
Which of the following is a difference between a line function and a staff function?
A line function contributes directly to selling a company's products, whereas a staff function does not contribute directly to selling a company's products but instead supports line activities.
Top-management support -
A manager who wants to make a process change involving several different departments appeal to his boss, asking her to star in a video in which she outlines the reasons the change will be good for everyone.
Education and communication -
A new manager is trying to get his company to switch from installing conventional wood fencing to installing concrete freeway barriers. The manager's first step is to set up meetings with all employees to outline changes in the marketplace and show how much more money the company and employees can earn with the new product.
imagine you are a well-known management scholar who is looking at how different companies fit into countries that vary on Hofstede's dimensions of national cultures. Your friend, an organizational sociologist, found five choice examples for your work: one company that will fit in with high power distance, another that will fit with high uncertainty avoidance, a third that will fit with high collectivism, a fourth that will fit with high femininity, and a fifth that will fit with a long-term orientation. Unfortunately, one of your graduate students dropped the file folders containing this research, and now you are faced with a stack of random examples, including some that meet your needs and some that don't. Today, you are trying to figure out which companies would fit best into the following three cultures. Use your knowledge of Hofstede's dimensions of national cultures to answer the following questions. Which company has high individualism?
At Arguello Industries, competition among salespeople is fierce. Everyone wants to get the Superior Salesperson award, which is given to the employee who closes the most deals during the fiscal year. Last year, one employee canceled another employee's orders just to win the award.
Crimsom Corp., an electronics manufacturer in Mallowdeer, plans to enter a foreign market. It wants to establish its new office in Ostview. Which of the following is a qualitative factor that Crimsom Corp. should consider while choosing the new office location?
Company strategy
Endoscopic surgery will become the _____________ when most physicians prefer it to older, more invasive surgical procedures.
Dominate Design
Select the correct critical psychological states (positions A in the following diagram) that individuals experience in response to job design.
Experienced meaningfulness of the work
Select the correct critical psychological states (position B in the following diagram) that individuals experience in response to job design.
Experienced responsibilities for outcomes of the work
Which of the following is a difference between experiential approach to innovation and compression approach to innovation?
Experiential approach is used to establish a new dominant design, whereas compression approach is used to improve the function of the existing dominant design.
Example- The student who knows almost immediately how well he or she did on a test is high on this dimension, but the employee who hasn't talked to his or her boss for a year is probably low.
Feedback
Which of the following is the most important factor in determining the success and failure of an international assignment?
How well an expatriate's spouse and family adjust to the foreign culture
Which of the following is an advantage of matrix departmentalization?
It allows companies to manage in an efficient manner large, complex tasks.
Which of the following statements is true of functional departmentalization?
It allows work to be done by highly qualified specialists.
Which of the following is an advantage of geographic departmentalization?
It can reduce costs by locating unique organizational resources closer to customers.
Which of the following statements is true of resistance to change?
It decreases when change efforts receive significant managerial support.
Which of the following is an advantage of decentralization?
It develops employee capabilities throughout a company and leads to faster decision making and more satisfied customers and employees.
Which of the following statements is true of the World Trade Organization?
It ensures that trade flows as predictably and freely as possible.
Which of the following statements is true of global consistency?
It simplifies decisions for managers at company headquarters.
Tom is an editor for the sports column at Mailing Daily. Chloe, Tom's manager, asks him to handle the essay column along with the sports column. Which of the following job redesign techniques is used by Chloe?
Job enlargement
Jason is an employee at Manisch Burger and Meals. He is assigned the task of serving soft drinks to customers ordering meals with potato fries, a burger, and a roll. Which of the following best illustrates Jason's job design?
Job specialization
Select the correct critical psychological states (C in the following diagram) that individuals experience in response to job design.
Knowledge of the actual results of the work activities
Which company has high uncertainty avoidance?
Last week, Swanita approached her boss in tears. "But I've been sitting at the same desk for 20 years!" she exclaimed. "How will I be able to do my work if you put me all the way across the office from the people I'm supposed to support?"
Which of the following trends has allowed companies to skip the phase model of globalization when going global?
Low-cost communication technologies make it easier to communicate with global customers.
Example- A person in a one-man band who plays guitar, drums, and harmonica is higher on this dimension than a musician who plays only the piano.
Skill variety
Which of the following is a disadvantage of modular organizations?
They are characterized by a loss of control that occurs when key business activities are outsourced to other companies.
In the context of organizational development, the purpose of small-group interventions is to:
assess how a group functions and help it work more effectively to accomplish its goals.
Environmental change requires organizational ____________ , if the company is to be a success.
change
Identify the stage of organizational decline for the example given below. Example- A barcode scanning device manufacturer tried several times to update its products, but each of the attempts failed, leaving the company weaker and weaker in the process. Now, unless something remarkable happens, the company is facing bankruptcy. Decline Stage
crisis
Technological substitution occurs when:
customers purchase new products to replace older technologies.
Aldhurst Corp., a software manufacturing firm in the state of Lochmount, bought Fairden Corp., a software manufacturing firm in the state of Vertholt. This scenario is an example of
direct foreign investment
When Yum! Foods purchased the Little Sheep Group Ltd. (a chain of Chinese hot pot restaurants), it used ____________ to increase the globalization of its business.
direct foreign investment
Identify the stage of organizational decline for each example in the following table. Example- A financial services firm decides to downsize in order to save money rather than understanding the need to create new products for a changing demographic. Decline Stage-
faulty action
McDonald's, Subway Sandwich Shops, 7-Eleven stores, and Dunkin' Donuts are all examples of _______________ operations, in which an individual purchases a license to run an entire business in a particular location.
franchise
Example- An automobile dealership that has always had success with homemade advertisements finds it difficult to switch to a professional advertising agency, despite the fact that consumers are becoming more sophisticated. Decline Stage-
inaction
Westburn Inc., a fast food restaurant in the state of Beachden, starts its chain of restaurants in the state of Valcoast. It changes its menu for the customers in Valcoast. This scenario is an example of
local adaptation
If companies focus too much on local adaptation, they run the risk of:
losing the cost effectiveness and productivity that result from using standardized rules and procedures throughout the world.
In an organization, organizational encouragement of creativity occurs when:
management encourages risk taking and new ideas.
Quotas and voluntary export restraints are _____________ that limit the amount of goods flowing between countries.
nontariff barriers
Identify the mistakes managers typically make in the unfreezing part of the change management process. Check all that apply.
not creating a strong enough coalition lacking a vision not establishing a great enough sense of urgency
Bridget's Gifts, a greetings and gifts store in Janville, has four departments: flowers and soft toys, cards and e-cards, metal collectibles, and photo albums and scrapbooks. These departments are responsible for producing their own products. This scenario is an example of _____.
product departmentalization
KelHouse Corp. specializes in mobile computing devices. It has developed a working model of a cell phone charger that can charge the battery of a cell phone in less than 15 minutes. This model is being tested for design, function, and reliability. In the context of the experiential approach to innovation, the working model is a(n) _____.
product prototype
According to Lewin, the third step in behavioral change is
refreezing
The Maastricht Treaty, NAFTA, and ASEAN are all examples of treaties that created ________________ where tariff and nontariff barriers to trade are reduced or eliminated.
regional trading zones
The U.S. government provides _____________ in the form of low-cost loans and income supplements to many U.S. agribusinesses, including the producers of wheat, corn, cotton, and milk.
subsidies