Download Management Exam Prep: Globalization, Strategy, and Cultural Dimensions and more Exams Nursing in PDF only on Docsity!
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Forces for Internationalization - correct answer ✅Globalization - tendency of firms to expand sales, manufacturing, and ownership to new markets in other countries -modern communication technology -air travel -corporate globalism Pros and Cons of gobalization - correct answer ✅Pros: -productivity grows -living standards increase -inflation is less likely (cheap) -innovation (new ideas) -access to new markets and new customers -export jobs pay more Cons: -Americans lose jobs -fear losing jobs -competition for american companies -pay cut -service and white collar job in danger Internationalization Process - 5 big options - correct answer ✅Stage 1: Exporting - selling domestically produced products to customers in foreign countries Stage 2: Cooperative contracts - 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
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Stage 3: Strategic alliances - an agreement in which companies combine key resources, costs, risks, technology, and people Stage 4: Wholly owned affiliates - foreign offices, facilities, and manufacturing plants that are 100% owned by the parent company New Global Ventures - new companies that are founded with an active global strategy and have sales, employees, and financing in different countries 2 types of cooperative contracts - correct answer ✅Licensing - an agreement in which a domestic company, the licencor, receives royalty payments for allowing another company, the licensee to produce the licencor's product, sell its service, or use its brand name in a specified foreign market Franchising - a collection of networked firms in which the manufacturer or marketer of a product or service, the franchiser, licenses the entire business to another person or organization, the franchisee Problem at Mustang Jeans - correct answer ✅deals with international business, does business the "american way", which turns off foreign business leaders -the cultural imperative -culture barriers and norms prevented american man and Japanese man from doing business together High context cultures - correct answer ✅Cultures in which nonverbal and situational messages convey meaning -relationship more important than terms
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power distance - correct answer ✅the extent to which people in a country accept that power is unequally distributed in organizations and society indulgence vs. restraint - correct answer ✅addresses the degree to which a society allows relatively free gratification of basic drives related to enjoying life and having fun vs. struct social norms that regulate and suppress gratification of needs and wants Tariff - correct answer ✅a direct tax on imported goods; increase cost of imported goods relative to that of domestic goods Non-tariff trade barriers - correct answer ✅non tax methods of increasing the cost or reducing volume of imported goods; 5 types:
- quotas - a limit on the number or volume of imported products
- voluntary export restraints - imposed limits on number or volume of products exported to a particular country; exporting country imposes
- government import standard - a standard ostensibly established to protect the health and safety of citizens but in reality is often used to restraint imports
- subsidies - government loans, grants and tax deferments given to domestic companies to protect them from foreign competition
- customs classification - assigned to imported products by government officials that affects the size of the tariff and the imposition of import quotas why do managers need to know about tariffs and trade? - correct answer ✅free trade agreements create new business opportunities, they also intensify competition and addressing that competition is the managers job
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Characteristics of attractive - correct answer ✅""me bitch"- nikole george"- anna clough Characteristics of attractive foreign business climate - correct answer ✅access to a growing market; 2 factors: -purchasing power (high is favorable) - relative cost of a standard set of goods and services in different countries -foreign competitors (determined by the number and quality of companies that already compete in foreign market) preparing for an international assignment - correct answer ✅language and cross- cultural training; 3 methods:
- documentary training - focuses on identifying specific critical differences between cultures
- cultural simulations - practice adapting to cultural differences
- field experiences - places trainees in ethnic neighborhood for 3-4 hours to talk to residents about cultural differences what is a mongrel and why is it a good thing (zachary article) - correct answer ✅a person confident in multiple cultures effective missions - correct answer ✅Briefly define the organization's purpose for stakeholders in a way that is enduring, inspirational, clear, and consistent with company values
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how to make a plan that works - correct answer ✅1. set goals
- develop commitment
- develop an effective plan
- track progress toward goal achievement
- maintain flexibility Strategic plans - correct answer ✅overall company plans that clarify how the company will serve customers and position itself against competitors over the next 2-5 years -purpose statement - statement of company's purpose or reason for existing -strategic objective - a more specific goal that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and time frame Tactical plans - correct answer ✅plans created and implemented by middle managers that directs behavior, efforts and attention over the next six months to 2 years -management by objectives - 4 step process in which managers and employees discuss and select goals, develop tactical plans and meet regularly to review progress toward goal accomplishment Organizational plans - correct answer ✅day-to-day plans, developed and implemented by lower-level managers, for producing or delivering the organization's products and services over a 30 day to 6 month period Single use plans - correct answer ✅plans that cover unique, one-time-only events
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Standing plans - correct answer ✅plans used repeatedly to handle frequently recurring events policies and procedures - correct answer ✅policies - standing plans that indicate the general course of action that should be taken in response to a particular event or situation procedures - standing plans that indicate the specific steps that should be taken in response to a particular event Rules and regulations - correct answer ✅standing plans that describe how a particular action should be performed or what must happen or not happen in response to a particular event steps in rational decision making - correct answer ✅systematic process of defining problems, evaluating alternatives & choosing optimal solutions
- define the problem
- identify decision criteria
- weigh the criteria
- generate alternative courses of action
- evaluate each alternative
- compute the optimal decision
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Portfolio strategy - correct answer ✅a corporate level strategy that minimizes risk by diversifying investment among various businesses or product lines (diversifying) BCG matrix - correct answer ✅a portfolio strategy developed by the Boston Consulting Group that categorizes a corporation's business by growth rate & relative market share & helps managers decide how to invest corporate funds grand strategy - correct answer ✅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; 3 kinds: -growth - focuses on increasing profits, revenues, market share, or the number of places in which he company does business -Stability - focuses on improving the way in which the company sells the same products or services to the same customers -retrenchment - focuses on turning around very poor company performance by shrinking the size or scope of the business Industry strategies - correct answer ✅-cost leadership - lower cost, broad target -cost focus - lower cost, narrow target -differentiation - differentiation, broad target -focused differentiation - differentiation, narrow target
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firm-level strategies (attack/response and blue ocean) - correct answer ✅- strategic moves in direct competition, goal is to attack (a competitive move designed to reduce a rival's market share or profits) -entrepreneurship, find a place where nobody is competing, niche market -starting your business in afield without competition value curves - correct answer ✅-brainstorm factors of competition -identify competitors control process - correct answer ✅Set standards --> Measure performance --> compare with standards --> identify deviations --> analyze deviations --> take corrective action characteristics of service provision - correct answer ✅1.Customers participate 2.Services are consumed immediately 3.Services are provided where and when the customer desires 4.Services tend to be labor intensive 5.Services are intangible quality in service provision (RATER) - correct answer ✅1.Reliability (most important) 2.Assurance 3.Tangibles 4.Empathy
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3 types of control - correct answer ✅Feedforward Control -monitoring inputs -anticipating and preventing problems -inputs Concurrent Control -monitoring processes -adjusting ongoing activities -productive processes and activities Feedback Control -monitoring products -learning from past mistakes -outputs methods of control - correct answer ✅1. bureaucratic control
- objective control
- normative control
- concertive control
- self-control (self management)
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bureaucratic control - correct answer ✅the use of hierarchical authority to influence employee behavior by rewarding or punishing employees for compliance or noncompliance w/ organizational policies, rules & procedures objective control - correct answer ✅the use of observable measures of worker behavior or outputs to assess performance & influence behavior -behavior control - the regulation of the behaviors and actions that workers perform on the job -output control - the regulation of workers results or outputs through rewards and incentives normative control - correct answer ✅the regulation of workers' behavior & decisions through widely shared organizational values and beliefs -very careful about who to hire -learn what they should do and not do by observing experienced employees & listening to their stories (driven by organizational culture) concertive control - correct answer ✅the regulation of workers' behavior & decisions through work group values & beliefs -shaped & negotiated by work groups -groups are autonomous self-control (self-management) - correct answer ✅a control system in which managers & workers control their own behavior by setting their own goals, monitoring their own progress & rewarding themselves for goal achievement
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-based on idea of gernerational change -5 aspects: planning, supplier involvement, shortening the time of individual steps, overlapping steps, multifunctional teams creative work environment components - correct answer ✅workplace cultures in which workers perceive that new ideas are welcomed, valued and encouraged; 6 components:
- challenging work
- organizational encouragemetn
- freedom
- lack of organizational impediments
- expertise and positive moods resistance to change - correct answer ✅opposition to change resulting from self- interest, misunderstanding & distrust & a general intolerance for change Lewin's change model - correct answer ✅unfreeze--> (driving forces overpower restraining forces) --> change --> (new restraining forces created to establish new status quo) --> freeze unfreeze--> (share reasons, empathize, communicate) --> change --> (explain, champion, opp for feedback, offer security, educate, dont rush) --> freeze errors managers make (what not to do when leading change) - correct answer ✅- not establishing a great enough urgency
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-not creating a powerful enough coalition -lacking a vision -undercommunicating the vision by a factor of 10 (managers just old 1 meeting about it) -not removing obstacles to the new vision -not systematically planning for & creating short term wins -declaring victory too soon -not anchoring changes in the corporations culture 3 Organization development interventions (and examples) - correct answer ✅a philosophy & collection of planned change interventions designed to improve an organization's long term health & performance ; 3 types: -large system interventions - to change the character and performance of an organization, business unit or department -small group interventions - focuses on assessing how a group functions and helping it work more effectively to accomplish its goals -person focused intervention - intended to increase interpersonal effectiveness by helping people become aware of their attitudes and behaviors and to acquire new skills and knowledge basic departmentalization structures - correct answer ✅subdividing work & workers into separate organizational units responsible for completing particular tasks
- functional departmentalization
- product departmentalization
- customer departmentalization
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-Advantage: helps companies respond to demands of different markets, reduce cost by locating unique organizational resources closer to customers -Disadvantage: can lead to duplication of resources, difficult to coordinate departments b/c they are so far from each other, redundancy mixed departmentalization - correct answer ✅a hybrid organizaional structure in which 2 or more forms of departmentalization (most often product & functional) are used together -Advantages: allows companies to manage in an efficient manner, large complex tasks such as R&D & marketing or carrying out complex global businesses -Disadvantage: high level of coordination needed, confusion & conflict, disagreements, misunderstandings span of control - correct answer ✅the number of people who report to a manager -narrow: create tall organizations, only managing a few people, oversight is high, low autonomy and freedom, low workload for manager -wide spans of control: create flat organizations, managing many people, very responsive to company needs and trends, cut out layers of managements, high autonomy and freedom, high workload for manager logic of contingency design - correct answer ✅-there is no single best design for all companies & situations -mechanistic vs organic -burns & stalker: must determine the degree of environmental uncertainty & adapt the organization & its subunits to that situation
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mechanistic organization - correct answer ✅an organization characterized by specialized jobs and responsibilities; precisely defined, unchanging roles; & a rigid chain of command based on centralized authority & vertical communication -very clear chain of command -vertical communication -centralized authority -low delegation -high specialization organic organization - correct answer ✅an organization characterized by broadly defined jobs & responsibilities; loosely defined, frequently changing roles; decentralized authority & horizontal communication based on task knowledge -think broadly about who you report to -lateral communication -decentralized authority -high delegation -high generalization chain of command - correct answer ✅the vertical line of authority that clarifies who reports to whom throughout the organization line/staff authority - correct answer ✅line - the right to command immediate subordinates in the chain of command staff - the right to advise, but not command, others who are not subordinates in the change of command
