Principles of Management Test 2

uncertainty avoidance

Characterized by people's intolerance for uncertainty and ambiguity and resulting support for beliefs that promise certainty and conformity.

merger

Combination of two or more companies into a single firm

global mindset

The ability to appreciate and influence individuals, groups, organizations, and systems that represent different social, cultural, political, institutional, intellectual, and psychological characteristics.

power distance

The degree to which people accept inequality in power among institutions, organizations, and people.

False

The general environment affects organizations directly

True

The international dimension of the general environment includes events originating in foreign countries, as well as new opportunities for U. S. companies in other countries.

Ethnocentrism

The natural tendency among people to regard their own culture as superior to others.

a) $1,500

The term bottom of the pyramid refers to the more than 4 billion people who earn less than US _______ a year. a. $1,500 b. $2,500 c. $3,500 d. $5,000 e. $10,000

global outsourcing

also called offshoring, means engaging in the international division of labor so that work activities can be done in countries with the cheapest sources of labor and supplies

joint venture

an organization shares costs and risks with another firm in a foreign country to build a facility, develop new products, or set up a sales and distribution network

multinational corporation

an organization that receives more than 25 percent of its total sales revenues from operations outside the parent company's home country and has a number of distinctive managerial characteristics

adaptability culture

characterized by values that support the company's ability to interpret and translate signals from the environment into new behavior responses

competitors

companies in the same industry that sell similar products or services to customers

long term orientation vs short term orientation

connects issues and/or challenges of the past with those of the current and future

culture leaders

define and articulate important values that are tied to a clear and compelling mission, which they communicate widely and uphold through their actions

strategic issues

events or forces either inside or outside an organization that are likely to alter its ability to achieve its objectives

external organizational environment

includes all outside elements that affect the organization

legal-political dimension

includes government regulations at the local, state, and federal levels, as well as political activities designed to influence company behavior

boundary spanning

links to and coordinates the organization with key elements in the external environment

high performance culture

managers emphasize both values and business results

international dimension

of the external environment represents events originating in foreign countries as well as opportunities for U.S. companies in other countries

technological dimension

of the general environment includes scientific and technological advances in society

low-context culture

people use communication primarily to exchange facts and information

high-context culture

people use communication to build personal relationships

suppliers

provide the raw materials the organization uses to produce its output

Political Risk

refers to a company's risk of loss of assets, earning power, or managerial control due to politically based events or actions by host governments

Globalization

refers to the extent to which trade and investments, information, ideas, and political cooperation flow between countries

sociocultural dimension

represents the demographic characteristics, norms, customs, and values of the general population

economic dimension

represents the general economic health of the country or region in which the organization operates

labor market

represents the people available for hire by the organization

implicit communication

sending and receiving unspoken cues such as tone of voice or body language as well as spoken words

cultural intelligence (CQ)

the ability to use reasoning and observation to interpret culturally unfamiliar situations and know how to respond appropriately. The 3 aspects are cognitive, emotional, and physical CQ

task environment

the environment containing elements that can have an immediate impact on organizational success. elements include competition, customers, suppliers, and labor market

internal environment

the events and trends inside an organization that affect management, employees, and organizational culture

euro

the single European currency, which replaced the currencies of 19 EU member nations.

customers

those who purchase an organization's goods and/or services

supply chain

a network of multiple businesses and individuals that are connected through the flow of products or services

organizational ecosystem

a system formed by the interaction of a community of organizations and their environment

c) competitors

. Which of the following is not a part of an organization's general environment? a. Technological factors b. Economic factors c. Competitors d. Legal-political factors e. Sociocultural factors

Masculinity

A cultural preference for achievement, heroism, assertiveness, work centrality, and material success.

feminity

A cultural preference for relationships, cooperation, group decision making, and quality of life.

a) competitive intelligence

A growing area of boundary spanning is ___________, which refers to activities to get as much information as possible about one's rival. a. competitive intelligence b. informational intelligence c. business intelligence d. big data analytics e. artificial intelligence

Exporting

A market entry strategy in which a company maintains production facilities within its home country and transfers products for sale in foreign countries.

true

A multinational corporation is managed as an integrated worldwide business system.

Individualism

A preference for a loosely knit social framework in which individuals are expected to take care of themselves.

Collectivism

A preference for a tightly knit social framework in which individuals look after one another and organizations protect their members' interests.

achievement culture

A results-oriented culture that values competitiveness, personal initiative, and achievement.

political instability

Events such as riots, revolutions, or government upheavals that can affect the operations of an international company.

natural dimension

Includes all elements that occur naturally on Earth, including plants, animals, rocks, and natural resources such as air, water, and climate.

a) exporting

Many companies first get involved internationally by using which of the following approaches? a. Exporting b. Offshoring c. Joint venture d. Acquisition e. Outsourcing

d) slogan

McDonald's "I'm lovin' it" is an example of a: a. ceremony. b. symbol. c. ritual. d. slogan. e. political activity.

True

McDonalds, Burger King, and Taco Bell are competitors since all three sell fast food to individuals.

involvement culture

a culture that places high value on meeting the needs of employees and values cooperation and equality

false

Partnerships represent a lower level of involvement in international trade than does exporting and outsourcing.

consistency culture

values and rewards a methodical, rational, orderly way of doing things