MGT 304 part 2

A(n) ________ attitude is the view that employees in the host country know the best practices for running their operations.

polycentric

A country where people look to the future and value thrift and persistence is

have a long-term orientation

Christopher, who is based in the United States has been offered a chance to work in Thailand. He finds that in this society people are expected to look after others in their family (or organization) and protect them when they are in trouble. This society tends to support ________.

collectivism

Operating Within the Environment (Scenario)

The environment places constraints on the behavior of managers. Suppose you are the manager of a real estate office trying to maximize profits. You attempt to understand the forces within your organization’s environment.

The area in which your office operates has been relatively stable in terms of land prices and demand. However, you have noticed that demand for housing in the area usually spikes in summer. Which of the following best describes your business environment?

stable and simple

Which of the following is a characteristic found in spiritual organizations?

tolerance towards mistakes and openness with customers and employees

When an organization acquires products made abroad and sells them domestically, it indulges in ________.

importing

A(n) ________ attitude is characterized by parochialism.

ethnocentric

The term ________ refers to repetitive sequences of activities that express and reinforce the important values and goals of the organization

corporate rituals

Changing Organizational Culture (Scenario)

Mary has been asked by the company president to change the organizational culture to reflect the company’s new organizational goals. As executive vice president, she certainly understands the goals, but is really not sure that she understands what to do about the culture.

Mary also found out that in order to build a strong new culture, she should do all but which of the following?

encourage a high turnover rate among employees

Which of the following factors is a demographic component of an organization’s external environment?

geographic location

The current dominant assumption in management theory suggests that ________.

managers are directly responsible for an organization’s success or failure

Business Expansion Plan (Scenario)

As business expansion director, Shana’s goal is to scout for potential locations and provide input on how her company should proceed with its planned expansion to Europe. There are many options, which include maintaining the company’s head office in the United States and sending over company representatives when necessary or establishing a separate operations facilities abroad and hiring locals as managers.

If Shana’s company decides to open another company in France but centralizes its management in the United States, it would be considered a ________.

global company

Which of the following statements highlights the shared aspect of culture?

Even though individuals may have different backgrounds or work at different organizational levels, they tend to describe the organization’s culture in similar terms

Adam has been hired by an organization that has a partnership with a foreign company. Both the partners share resources and knowledge while developing new products. Adam’s organization has formed a ________.

strategic alliance

Which of the following most accurately reflects the difference between strong cultures and weak cultures?

Company values are more deeply held and widely shared in strong cultures than in weak cultures.

D&B Designs has been in the landscape design business in Pleasantville for the past twenty years. As the "first mover" in the market, the company has built a strong market share over the years and is the best-known firm in the area. The company strength increased steadily, and now stands at fifty employees. Which of the following, if true, would make the company’s business environment more uncertain

Zoning laws in the area change as each new city council comes into power.

The single European Union currency is called the ________.

euro

According to the text, which of the following is a typical definition of a multinational corporation?

It is a company that maintains operations in multiple countries

How many members does The African Union have?

53

Software Entrepreneurial Venture (Scenario)

Theodore and James have formed an entrepreneurial venture to develop software for banks and other financial institutions. Their company is growing, and in exploring future opportunities decides to initiate international operations.

The international operations of their firm continues to grow. Theodore and James have realized that decentralized management using foreign nationals to run operations in the host countries works best. Their firm has developed into a ________ organization

multidomestic

Corporate Takeover (Scenario)

Todd works for SeaLan Tech, an environmental consulting firm that has just been purchased by Zerex, Inc., a biomedical research organization. Based on his early encounters with the new upper management from Zerex, Todd feels that SeaLan is a "lower-key, friendlier" organization. He is concerned that the new company will eliminate SeaLan’s old culture, and he does not like the prospects.

If you were talking with Todd and asked him what the term culture meant, he would reply that it is ________.

the shared values and practices of the firm

Which of the following is a feature of a multidomestic corporation?

has a decentralized management

Which of the following is the basic difference between multidomestic corporations and global companies?

Multidomestic corporations decentralize management to the local country, while global companies centralize management in the home country.

A ________ economy is one in which resources are primarily owned and controlled by the private sector.

free market

A global company reflects the ________.

ethnocentric attitude

The ________ view of management is consistent with the stereotypical picture of the take-charge business executive who can overcome any obstacle in carrying out the organization’s objectives

omnipotent

Operating Within the Environment (Scenario)

The environment places constraints on the behavior of managers. Suppose you are the manager of a real estate office trying to maximize profits. You attempt to understand the forces within your organization’s environment.

If the mortgage interest rates increase, this would be an example of changing ________ in your external environment.

economic conditions

Cultural Training (Scenario)

Jane wants to expand her career opportunities in the international operations of a company. She is 19 years old and currently attends a university. She has only lived in her home country and has never traveled to any foreign country.

Jane joins an international student association in order to better understand the views of students from other countries. She is trying to become more ________ in her attitude

geocentric

Which of the following types of global organizations reflects the geocentric attitude?
Answer

transnational organization

Internal constraints that influence managers’ decisions and actions come from ________.

the culture of the organization

The World Trade Organization evolved from which of the following?

General Agreement on Tariffs and Trade

Which of the following statements is true of dynamic and complex environment?

A high need for sophisticated knowledge of components exists in such environments

Which of the following is a criticism of spiritual organizational cultures?

incompatibility between profits and spirituality

The Global Leadership and Organizational Behavior Effectiveness program’s ________ dimension is similar to Hofstede’s achievement-nurturing dimension

assertiveness

Why does the U.S. Federal Reserve’s announcement of a far-reaching mortgage-bond buying program raise business concerns over the new monetary policy

It threatens to weaken the dollar against foreign currencies

Operating Within the Environment (Scenario)

The environment places constraints on the behavior of managers. Suppose you are the manager of a real estate office trying to maximize profits. You attempt to understand the forces within your organization’s environment.

Imagine that the town to which your office caters sees a sudden spurt in popularity. There has been a lot of construction activity in the area and a number of properties are being developed. The number of customers has increased, and so have your competitors. In this situation, what should you do to reduce environmental uncertainty?

Acquire or merge with one or more of your competitors

Software Entrepreneurial Venture (Scenario)

Theodore and James have formed an entrepreneurial venture to develop software for banks and other financial institutions. Their company is growing, and in exploring future opportunities decides to initiate international operations.

Theodore and James decide to enter into an agreement with a firm in Europe allowing them to use the rights to their software, brand name, and software specifications in return for a lump sum payment. The firm is a service organization that plans to use the software to assist its customers. Their agreement is a(n) ________.

franchise agreement

According to Swedish researcher Goran Ekvall, which of the following is a characteristic found in an innovative culture?

freedom for employees to express opinions

Which of the following are the two dimensions of environmental uncertainty?

degree of change and degree of complexity

Monolingualism is one sign that a nation suffers from ________.

parochialism

The omnipotent view of management states that ________.

managers are directly responsible for an organization’s success or failure

Bill Sanderson, a manager in a manufacturing firm in New York has a tendency to view the world only through his U.S.-based perspective. What can be deduced about his attitude?

He has a parochialistic attitude.

Which of the following factors is an economic component of an organization’s external environment?

disposable income

Which of the following is most likely to have a highly spiritual organizational culture?

a company with high tolerance of employee expression

What is the primary reason that the intensifying economic crisis in Europe threatens to impact the decisions of global managers in the United States and throughout the world?

The euro zone is a larger economic unit than the United States or China and is a major source of world demand for goods and services.

A company whose managers focus on results, rather than how results are achieved, most likely possesses a high degree of ________.

outcome orientation

Which of the following is an example of a corporate ritual?

Companies hosting annual parties to commemorate employee contributions and reward outstanding performance.

According to the symbolic view, managers have a(n) ________ effect on substantive organizational outcomes.

limited

The grassroots slogan of the Occupy movement, "We are the 99%", refers to ________.

the sensitivities surrounding severe income disparities, particularly in the United States

A country that is assertive, believes in acquiring money and goods, and is competitive in nature is said to ________.

be achievement oriented

Which of the following people management benefits arises from workplace diversity

better use of employee talent

Discrimination refers to ________.

someone acting out their prejudicial attitudes toward people who are the targets of their prejudice

Which of the following is the best description of the provisions of the Civil Rights Act, Title VII?

prohibiting discrimination based on race, color, religion, national origin, or gender

Freedom of association and the effective recognition of the right to collective bargaining are the Global Compact principles in the area of ________.

labor standards

Which of the following racial groups have been the focus of most race and ethnographic studies of workplace diversity in the United States?

African Americans and Whites

Under the concept of social obligation, the organization does what is required by the ________.

law

The Environmental Study (Scenario)

You have just been challenged by your supervisor to study and report your findings on approaches that organizations use when dealing with the environment and when pursuing the goal of going green. Your boss tells you to study the four major approaches, differentiate among them, and report to him in a week.

What approach deals with an organization responding to the environment because of the preferences of its customers?

market approach

Which of the following statements is true of the findings of studies on race and ethnicity in the workplace?

African Americans generally do worse than Whites in decisions related to the workplace.

Which of the following is an example of workplace discrimination in the form of exclusion?

Many women in finance claim they are assigned to marginal job roles or are given light workloads that don’t lead to promotion.

At the ________ level of moral development, ethical decisions rely on maintaining expected standards and living up to the expectations of others.

conventional

What positive perception do employers typically have of older employees?

strong work ethic

Which of the following benefits of workplace diversity is categorized as strategic

potential to improve market share

John Doe is employed with the IT department in Abel and Associates, that provides financial consultancy services to several wealthy investors. He is approached by a shady investor who offers attractive incentives for stealing some sensitive information regarding the investment patterns of one of the clients of the company. Which of the following statements best reflects John’s thoughts if he is at the principled level of moral development?

By stealing from another person, I will be in violation of the moral standards I’ve come to expect of myself.

Which of the following arguments on social responsibility states that businesses should address social problems before they become serious and costly to correct?

superiority of prevention over cures

In the ________ approach of going green, organizations respond to the environmental preferences of customers.

market

Which of the following is NOT a way for management to reduce unethical behavior?

monitor employee telephone calls

Which of the following examples reflects a socially responsible action by an organization?

Apple has eliminated lead-lined glass monitors from its product line and pioneered reduced-sized packaging that leverages recyclable materials.

Which of the following statements is true of the changing trends in U.S. workplaces?

Organizations must recognize that they can’t expect employees to assimilate into the organization by adopting similar attitudes and values.

Which of the following managerial styles is traditionally considered to be feminine?

inclusive

Managers who consider the impact of their organization on the natural environment are said to be practicing ________.

green management

Groups made up of employees connected by some common dimension of diversity are known as ________.

employee resource groups

Social obligation is the obligation of a business to meet its ________.

economic and legal responsibilities

________ is the biological heritage (including physical characteristics such as one’s skin color and associated traits) that people use to identify themselves.

Race

Ang Li emigrated from Hong Kong to study business at the Tri-Valley University in California. However, he has found it rather hard to move up in his managerial career at his workplace especially when compared to how his fellow graduate from Tri-Valley, American-born Adam Watson, has managed to become the regional manager of sales in the company. This suggests the presence of ________ in Li’s organization.

a glass ceiling

In the ________ approach of going green, an organization works to meet the environmental demands
of its employees, suppliers, or community

stakeholder

Jeff is an employee with the accounting department at a major shipping service provider in Texas. Soon after he joined following his graduation, his company developed corporate programs to help improve self-confidence and qualifications of diverse employees so they could "fit in." During which period of time did Jeff start working for his employers?

early 1980s

Summing Up Social Responsibility (Scenario)

Max Proffit, director of research and development for National Products Company, that is into producing hiking gears has learned that a new material has been developed in his department that appears to make the ropes and slings more durable. He has discussed this development with his two assistants, Susie Merriweather and Moe Gaines, and Rush Onward, vice president of product development. Susie has stated her opposition to the use of the new material because its durability has not yet been tested and has not been certified by the company’s third-party testing laboratory. Moe argues that the initial tests that their R&D department completed indicate minimal problems with durability. Rush states that in several meetings he has recently attended, the company president had repeatedly emphasized the need to increase earnings per share. Rush tells Max that a decision has to be made within the week about the new material’s use by the Company.

Susie’s opposition to the use of the new uncertified material is an indication that she ________.

has an internal locus of control

Which of the following statements is true of gender diversity in workplaces?

No consistent male-female differences exist in problem-solving ability, analytical skills, competitive drive, motivation, sociability, or learning ability

A U.S. business that provides on-site childcare facilities for employees is ________.

being socially responsive

The Environmental Study (Scenario)

You have just been challenged by your supervisor to study and report your findings on approaches that organizations use when dealing with the environment and when pursuing the goal of going green. Your boss tells you to study the four major approaches, differentiate among them, and report to him in a week.

Under what approach is the organization driven to look for ways to respect and preserve the earth and its natural resources?

activist approach

________ refers to the social traits that are shared by a human population

Ethnicity

Trends observed in the shifting world population indicate that people aged 65 or more will soon outnumber those aged 5 or less. Also, the world’s population aged over 80 is expected to more than double by the year 2040. Which of the following is a likely implication of such population trends?

dwindling labor supply

Employees who raise ethical concerns or issues in an organization are known as ________.

whistle-blowers

In the United States a company that meets federal pollution control standards and does not discriminate in hiring, promotion, and pay is generally meeting its ________.

social obligation

________ is a document created by the United Nations outlining principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption.

The Global Compact

________ measures the strength of a person’s convictions.

Ego strength

Amanda works as a technical support executive at ColoWare Systems. Which of the following factors, if true, could trigger certain stereotypes about Amanda among her co-workers, though not necessarily reflecting the way they feel or think about her?

Amanda has a Swedish mother and an African American father

At the ________ level of moral development, a person’s choice between right or wrong is based on personal consequences from outside sources, such as physical punishment, reward, or exchange of favors

preconventional

Two Opposing Views of Social Responsibility (Scenario)

The board of directors of Acme Generating Corporation is meeting to consider the construction of a new electricity generation facility somewhere along the Muspetan River basin. The city of Muspetan has a high Air Pollution Index and the increasing amount of garbage is adding to the city’s woes. Director Appleton would like the facility to be a coal-burning plant located in a remote area because the cost involved is moderate. Director Witworth wants a nuclear plant because this will not add to the city’s already serious pollution problem, while taking care of its electricity requirements. Director Jossleman wants a plant that uses combustible fuels collected from the city’s garbage. He wants the plant to be located near the downtown government area so that the steam could be used for heating the government buildings after it has passed through the generating turbines.

Director Jossleman is being mostly ________.

socially responsive

The most outspoken advocate of the classical view of social responsibility is economist and Nobel laureate ________.

Milton Friedman

Ethics Training (Scenario)

You are an employee of a very large company, Behemoth Inc. Several employees routinely have lunch at a local restaurant where most drink alcoholic beverages before returning to work. In addition to this inappropriate behavior, several male coworkers call female employees "babes" and freely use racial slurs. There have been many complaints and the company has decided to use these issues as ethical training examples.

How can managers identify the ethically questionable applicants even before they became part of the workforce?

by asking the candidates to go through interviews, tests, and background checks

In which of the following stages of moral development do individuals value rights of others and upholding absolute values and rights regardless of the majority’s opinion?

principled stage

Which of the following demographic characteristics reflects surface-level diversity?

ethnicity

The Environmental Study (Scenario)

You have just been challenged by your supervisor to study and report your findings on approaches that organizations use when dealing with the environment and when pursuing the goal of going green. Your boss tells you to study the four major approaches, differentiate among them, and report to him in a week.

Under what approach do organizations exhibit little environmental sensitivity, and simply obey laws, rules and regulations?

legal approach

Which of the following correctly reflects the characteristics of the current U.S. population?

The median age of the U.S. population has risen significantly over the last decade.

Which of the following managerial styles is traditionally considered to be masculine?

leading by example

In which of the following approaches of going green does the organization exhibit the least environmental sensitivity?

light green approach

According to the ________ argument on social responsibility, businesses should be socially responsible because responsible actions are the right thing to do.

ethical obligation

When a firm advertises that it only uses recycled paper products it is ________.

being socially responsive

Summing Up Social Responsibility (Scenario)

Max Proffit, director of research and development for National Products Company, that is into producing hiking gears has learned that a new material has been developed in his department that appears to make the ropes and slings more durable. He has discussed this development with his two assistants, Susie Merriweather and Moe Gaines, and Rush Onward, vice president of product development. Susie has stated her opposition to the use of the new material because its durability has not yet been tested and has not been certified by the company’s third-party testing laboratory. Moe argues that the initial tests that their R&D department completed indicate minimal problems with durability. Rush states that in several meetings he has recently attended, the company president had repeatedly emphasized the need to increase earnings per share. Rush tells Max that a decision has to be made within the week about the new material’s use by the Company.

Moe Gaines’s support of using the new uncertified material is an indication that he ________.

has a weak ego strength

Which of the following is true regarding reduction of employee stress?

In order to reduce stress, managers should make sure that the employee’s abilities match the job requirements.

According to Kurt Lewin, which of the following is a stage in the change process?

unfreezing

________ actively and enthusiastically support new ideas, build support, overcome resistance, and ensure that innovations are implemented.

Idea champions

When problems are ________, managers must rely on ________ in order to develop unique solutions.

unstructured; nonprogrammed decision making

Which of the following is a favorable condition that will facilitate a cultural change?

a dramatic crisis occurs

Which of the following is important in effectively implementing the chosen alternative in the decision-making process?

allowing those impacted by the outcome to participate in the process

Which of the following best describes the psychological orientation of an individual making a "maximax" choice?

optimist

Which of the following techniques for reducing resistance to change assumes that much of the resistance lies in misinformation?

education and communication

Which of the following is a cultural variable that supports innovation?

acceptance of ambiguity

According to Kurt Lewin, increasing the driving forces is a means of ________.

unfreezing

After identifying the decision criteria that are important or relevant to resolving a problem, the next step in the decision-making process is ________.

allocating weights to the criteria

The manager of an apparel store estimates how much to order for the current spring season based on last spring’s sales figures. The store manager is operating under which of the following decision-making conditions?

risk

Unstructured problems ________.

are accompanied by ambiguous or incomplete information

Changes in work processes, methods, and equipment are a part of ________ changes

technological

An effective decision-making process ________.

focuses on matters of importance

________ involves distorting facts to make the change appear more attractive.

Manipulation and co-optation

Which of the following is an example of a variable that fosters innovation?

organic structure

The ________ thinking style is characterized by a preference for internal sources of information and processing this information with internal insights, feelings, and hunches to guide decisions and actions

nonlinear

In intuitive decision making, managers ________.

use data from their subconscious mind to help make their decisions

A(n) ________ is the existence of a discrepancy between an existing and a desired state of affairs .

problem

Which of the following is an example of a psychological symptom of stress?

irritability

Which of the following techniques for reducing resistance to change includes employee counseling, therapy, new skills training, or a short paid leave of absence.

facilitation and support

________ is the adverse reaction people have to excessive pressure placed on them from extraordinary demands, constraints, or opportunities

Stress

An innovative culture is likely to have ________.

tolerance of conflict

Creativity is most essential in which of the following steps of the decision-making process?

developing alternatives

For ________, there must be uncertainty over the outcome, and the outcome must be important.

potential stress to become actual stress

It is assumed that a rational decision maker ________.

is fully objective and logical

New Ideas (Scenario)

Although New Ideas, Inc., has been in business for 30 years, the company and its employees seemingly have been in a constant state of change. Louis Snyder has been President of New Ideas, Inc. for the last 15 years. During these 15 years, he has had to change the strategic focus of the company three times. The employees have started becoming vocal about the decrease in their bonus checks and their desire for increased profits. It seems as though his competition is always introducing new products into the market and his company’s niche products have to be constantly changed in order to keep up with the competition. Moreover, the government has been active in passing new legislation to increase the control of the product packaging and product contents. The technology used to manufacture the products has also been continually changed to make the process more efficient.

Mr. Snyder has had to change the strategic focus of the company three times. The change in strategic focus of the New Ideas, Inc., is a(n) ________.

internal force of change

________ is the process of taking a creative idea and turning it into a useful product or work method.

innovation

The Practice (Scenario)

Kelly Rae works for an ophthalmologist’s office where she has been employed as a technician for approximately one year. Kelly has been promoted to the position of clinic coordinator where she is responsible for ensuring operational efficiency and effectiveness by managing and training other technicians, overseeing the doctor’s schedules, and coordinating activities between the scheduling desk, the technicians, the insurance office, and the optical shop. Upon her promotion she was given a mandate by the doctors to "clean house" in an effort to make fundamental changes to enhance productivity.

The two doctors at the practice have very different work habits. Each has his own team of technicians who are used to the doctors’ preferences and are comfortable with their routines; they basically do the same thing every day. When Kelly suggested that they train all of the technicians to work with both doctors, this led to significant resistance from all of the parties involved. The technicians were concerned that they would no longer be able to perform their usual daily tasks. Their resistance came from their ________.

fear that they would be forced out of their habits

Fred Fryer’s Donuts (Scenario)

Since the integration of two new stores in Littleville, U.S., Fred Fryer’s Donuts, Inc., has recognized that there is a need for reengineering the entire organization. The main need is to install new state-of-the-art kitchen equipment in the seven remaining stores, and then dispose of all old equipment to a salvage dealer or else incur a loss. The employees will have to be trained to operate the new computer programmed equipment. Fred is setting up the main store as a training store. Employees from the other stores will train at the main store for five days while their respective store’s equipment is being converted. The regular employees from the main store have the responsibility of instructing the classes or overseeing the installation of the new equipment and testing its operation before that store’s employees return from training. The organization is also replacing the old employee reporting system. Ordering of materials will now be done by an intranet. Fred has promised that no one will lose his or her job because of the organizational changes. He estimates that when the employees get to the computer programming training, as many as 10 percent of the current employees will resign or retire. He also thinks that opening a new store in Nowhere, will absorb the excess employees.

The installation of the new equipment at Fred Fryer’s Donuts, Inc., is an example of ________.

technological change

________ refers to the ability to combine ideas in a unique way or to make unusual associations between ideas.

Creativity

Max is planning on going away to college next year and is currently trying to figure out which colleges he should apply to. He would like to major in English Literature at an accredited liberal arts college, but is also looking for a university that offers financial aid. In terms of the decision-making process, these represent Max’s ________.

decision criteria

The Government Job (Scenario)

Colin was getting accustomed to his surroundings in a state government job. His efforts at getting people to accept change had met with little resistance due to his and the new director’s efforts as well as the hard work of his subordinates. But now the hard part really started-actually managing the change. What techniques could he and his agency’s new director employ to most effectively implement changes that would result in increased productivity in his department? He considered changing three aspects of his agency: the structure, the technology, and the people.

If the new agency director decided to remove layers in the agency and increase the span of managerial control, this would be considered changing the ________.

structural components

Falling interest rates are an example of what external force?

economic change

How can managers increase the likelihood of making change happen successfully?

They should give individual employees a role in the change process.

Amanda, a single parent, is looking for a new job. Considering that she has two school-going children, she is particularly keen on finding an employer who can provide her with alternative work arrangements such as flexible work hours and telecommuting. In terms of the decision-making process, these represent Amanda’s ________.

decision criteria

If an individual knows the price of three similar cars at different dealerships, he is operating under which of the following decision-making conditions?

certainty

Managing Your Career (Scenario)

Michelle has a new job and is learning to perform the tasks assigned to her. Different situations demand different decision-making processes.

Michelle eventually finds a problem that has no cut-and-dry solution. The problem is unique and is unlikely to occur again. This problem is ________ in nature.

nonprogrammed

Which of the following is NOT a valid assumption about rationality?

The decision maker accepts a solution that is good enough.

In the decision-making process, while ________, the decision maker puts the decision into action by conveying it to those affected by it and getting their commitment to it.

implementing an alternative

Is the Picture Clear? (Scenario)

Sharon was the regional manager of a large cable television company. She faced many problems and decisions daily, such as how to price each market, whom to hire, what kind of technology to purchase, and how to handle the increasing customer complaints. She needed some help sorting these issues out.

When a customer calls and requests a refund for a partial month’s usage of the cable service, the fact that such situations are routine and most likely have a standard response would make the response a(n) ________ decision.

programmed

Design thinking suggests that managers should look at problem identification collaboratively and integratively with the goal of ________.

gaining a deep understanding of the situation

Changes in eating habits are a ________ symptom of stress.

behavioral

New Ideas (Scenario)

Although New Ideas, Inc., has been in business for 30 years, the company and its employees seemingly have been in a constant state of change. Louis Snyder has been President of New Ideas, Inc. for the last 15 years. During these 15 years, he has had to change the strategic focus of the company three times. The employees have started becoming vocal about the decrease in their bonus checks and their desire for increased profits. It seems as though his competition is always introducing new products into the market and his company’s niche products have to be constantly changed in order to keep up with the competition. Moreover, the government has been active in passing new legislation to increase the control of the product packaging and product contents. The technology used to manufacture the products has also been continually changed to make the process more efficient.

When the employees express their concern about their bonus checks, which of the following types of forces of change is constraining Mr. Snyder?

internal force of change

Most idea champions ________.

have extremely high self-confidence

Lewin’s theory is consistent with ________ theory of organizational change.

calm waters

The Government Job (Scenario)

Colin was getting accustomed to his surroundings in a state government job. His efforts at getting people to accept change had met with little resistance due to his and the new director’s efforts as well as the hard work of his subordinates. But now the hard part really started-actually managing the change. What techniques could he and his agency’s new director employ to most effectively implement changes that would result in increased productivity in his department? He considered changing three aspects of his agency: the structure, the technology, and the people.

If the agency director decided to shift away from a functional to a product structure, this would be considered changing the ________.

structural design

When supermarkets and other retailers use scanners that provide instant inventory information, they are adopting ________ changes.

technological

Managing Your Career (Scenario)

Michelle has a new job and is learning to perform the tasks assigned to her. Different situations demand different decision-making processes.

Michelle finds a company directive that specifically restricts her from taking certain actions. This is a(n) ________.

rule

In an organization, the single independent businesses which formulate their own competitive strategies are known as ________.

strategic business units

How can managers effectively plan when the external environment is continually changing?

They should be ready to change directions if environmental conditions warrant.

In ________, the organization gains control of its outputs by becoming its own distributor.

forward vertical integration

________ plans are plans that are clearly defined and leave no room for interpretation.

Specific

Defining the organizational mission forces managers to identify ________.

what the organization is in business to do

Megabyte Center, S.A. (Scenario)

Your old friend, Ariel Eskenazi, is the owner and general manager of Megabyte Center, a computer reseller and systems integrator located in Panama City, Panama. Since leaving IBM to start a business in his home country, Ariel’s company has steadily grown, due in large part to the business partnerships he has established over the years with large foreign computer and software firms, such as Goldstar and Microsoft. These relationships have helped his company win considerable market share in Panama, as well as in other parts of Latin America. However, since the 1999 turnover of the Panama Canal to the Panamanian government, there has been a huge influx of foreign capital into Panama. For example, several large Asian firms have made Panama a beachhead for their American operations. Tourism is on the rise, with over a score of new hotels built in the metropolitan area alone over the past three years. As a result, demand for Megabyte’s products and services has increased markedly, but so has the level and diversity of its competition. While Megabyte’s customer base has remained fairly loyal, many longtime customers are beginning to demand price concessions and enhanced service levels in return for their continued business. Additionally, Ariel has learned recently that several of his former suppliers and business partners are considering establishing local sales offices of their own in Panama City. Ariel knows you are very knowledgeable about competitive strategy and calls you asking for advice.

With all the changes occurring in the computer reseller market, you advise him to stay with his present course until the market calms down. You are recommending that Ariel use a ________ strategy

stability

Most company’s goals can be classified as either ________ or ________.

strategic; financial

The major value-creating capabilities of the organization are known as its ________.

core competencies

An organization that initially brings a product innovation to the market is known as the ________.

first mover

When a company combines with firms in different and dissimilar industries, it indulges in ________.

unrelated diversification

In ________, goals set by top managers flow down through the organization and become subgoals for each organizational area.

traditional goal setting

________ is the ability to anticipate, envision, maintain flexibility, think strategically, and work with others in the organization to initiate changes that will create a viable and valuable future for the organization

Strategic leadership

Powerballs (Scenario)

Colleen invested a dollar in the Powerball Lottery and won $60 million. Subsequently, she decides to start her own business selling lawn mowers.

A business broker hears that Colleen is interested in purchasing a business and approaches her with an offer to sell her a company that owns a patent on a new roofing product and who installs this new roofing in the southwestern United States. If she buys this firm, she will be using a(n) ________ strategy.

unrelated diversification

What are the three main types of corporate strategies?

growth, stability, and renewal

________ involves the theft of proprietary materials or trade secrets by any means.

Corporate espionage

Un Taco Pequeno (Scenario)

Imagine that you are the president of Taco Rocket, a new and successful chain of 100 Mexican fast-food restaurants in the United States. The success you have experienced in the last five years has you thinking of what to do with the business next. Should you expand the business at the current rate or open new and different restaurants?

Because of the good profits and a fear of growing too fast, you decide to keep Taco Rocket in the same business and do not change the menu. You hope to retain the same market share and return-on-investment record. This is considered a ________ strategy.

stability

Megabyte Center, S.A. (Scenario)

Your old friend, Ariel Eskenazi, is the owner and general manager of Megabyte Center, a computer reseller and systems integrator located in Panama City, Panama. Since leaving IBM to start a business in his home country, Ariel’s company has steadily grown, due in large part to the business partnerships he has established over the years with large foreign computer and software firms, such as Goldstar and Microsoft. These relationships have helped his company win considerable market share in Panama, as well as in other parts of Latin America. However, since the 1999 turnover of the Panama Canal to the Panamanian government, there has been a huge influx of foreign capital into Panama. For example, several large Asian firms have made Panama a beachhead for their American operations. Tourism is on the rise, with over a score of new hotels built in the metropolitan area alone over the past three years. As a result, demand for Megabyte’s products and services has increased markedly, but so has the level and diversity of its competition. While Megabyte’s customer base has remained fairly loyal, many longtime customers are beginning to demand price concessions and enhanced service levels in return for their continued business. Additionally, Ariel has learned recently that several of his former suppliers and business partners are considering establishing local sales offices of their own in Panama City. Ariel knows you are very knowledgeable about competitive strategy and calls you asking for advice.

Ariel is considering forgoing the retail side of his business entirely. Instead, he will redirect his resources toward reselling hardware and software and providing systems integration services to the Latin American governmental and industrial sectors. Such a move would be most representative of which one of the following strategies?

focus

The first four steps of the strategic management process describe the strategic ________ that must take place in an organization.

planning

Which of the following statements is true regarding an organization’s goals?

Using a single goal such as profit may result in unethical behaviors by employees

________ is the ability to recognize major external changes, to quickly commit resources, and to recognize when a strategic decision is not working

Strategic flexibility

When formal planning fails to lead to higher performance, which of the following is most likely to be the reason for the failure?

Constraints of the external environment

Lower-level managers are responsible for ________ strategies.

functional

The combined external and internal analyses are called ________.

SWOT analysis

El Taco Grande (Scenario)

As the original owner of Taco Rocket, you have seen your business holdings grow substantially over the last 10 years. The number of stores you own and franchise has grown by 200 percent and you own a number of companies in related and unrelated areas.

Your oldest holding, Taco Rocket, has not grown much in recent years, but due to low debt, it generates a huge amount of cash. According to BCG, Taco Rocket would be considered a ________.

cash cow

How can a cost leader use e-business to reduce costs?

It could use Web-based inventory control systems that reduce storage costs.

Which of the following is true of competitor intelligence as a means of environmental scanning?

Competitor intelligence is ethical if competitor-related information is collected from sources accessible and available to the public.

A ________ strategy determines what businesses a company is in or wants to be in, and what it wants to do with those businesses

corporate

The ________ Act makes it a crime in the United States to engage in stealth of a trade secret.

Economic Espionage

A problem associated with traditional goal setting is that ________.

clarity is lost as the goals make their way down from the top of the organization to lower levels

SWOT Analysis (Scenario)

As a process of self-examination during her senior year of college, Casey decides to develop a SWOT analysis of her prospects relative to getting a job.

Casey majored in marketing and really enjoyed studying market research as a subject. Through research on the Internet and in the university library, she discovers that this industry appears to have significant positive external trends. She interprets this as a(n) ________.

opportunity

In the BCG matrix, a ________ has a low anticipated

dog

Short-term plans are those covering ________ or less.

one year

________ involves defining the organization’s goals, establishing strategies for achieving those goals, and developing plans to integrate and coordinate work activities.

Planning

How can an organization develop strategic flexibility?

It should have multiple alternatives when making strategic decisions

Kiva Systems, manufacturer of robots used in flexible automation systems, demonstrates the power of ________ by "teaching" its robots to dispose of used cardboard and to assist in gift wrapping for e-commerce warehouse fulfillment.

design thinking

What is a strategic disadvantage of being a first mover?

risk of competitors imitating innovations

SWOT Analysis (Scenario)

As a process of self-examination during her senior year of college, Casey decides to develop a SWOT analysis of her prospects relative to getting a job.

Casey realizes that she has a personal characteristic that suggests she is not comfortable interacting with strangers. She interprets this as a(n) ________ if she is to get a job as a salesperson

weakness

What plans are preferable when uncertainty is high in the business environment?

directional plans

Goals are different from plans because

goals are desired outcomes, and plans describe how those outcomes will be accomplished

________ should be sold off or liquidated as they have low market share and low growth potential

Dogs

Nike, Inc. is a sportswear and equipment manufacturer that serves a multitude of sports disciplines. Which of the following statements from Nike would be the best example of a strategic goal?

accelerating growth through focused execution

Managers should "milk" cash cows for as much as they can, limit any new investment in them, and use the large amounts of cash generated to invest in ________ and ________.

stars; question marks

Which of the following is an assumption associated with traditional goal setting?

Top managers know what is best because they see the "big picture."

________ refers to gathering information about competitors that allows managers to anticipate competitors’ actions rather than merely react to them.

Competitor intelligence

Which of the following statements is true of traditional goal setting?

Managers at each level define goals and apply their own interpretations and biases as they make them more specific.

Computer peripherals provider Ascent plans to enter a new market in another country. Which of the following represents a threat for Ascent?

Ascent will have to plan its entry carefully as the laws in the country do not favor foreign businesses

Top executives are mainly involved in ________ planning.

strategic

A firm that is "stuck in the middle" cannot develop ________.

a cost or differentiation advantage

The third step in strategic management process is related to the analysis of the ________.

internal environment

Long-term plans are defined as those with a time frame beyond ________.

three years