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Management
Q:
Virtuallyall larger businesses in the United States use a(n) _____ strategy.
a. related-diversification
b. single-product
c. divestiture
d. unrelated diversification
e. single-service
Q:
An organization that pursues a single-product strategy:
a. clusters relayed products in a single strategic business unit.
b. manufactures a range of products that are related to each other in some way.
c. uses a single marketing strategy for all its products.
d. operates in a single geographic market.
e. creates a separate business unit for each product it sells.
Q:
_____ describes thenumber of different businesses that an organization is engaged in and the extent towhich these businesses are related to one another.
a. Entropy
b. Diversification
c. Divestiture
d. Competency
e. Economy of scale
Q:
During the maturity stage of a product life cycle:
a. demand is maximum.
b. companies must sacrifice product quality.
c. sales are the highest.
d. demand comes to a halt.
e. product differentiation concerns are still important.
Q:
During the growth stage of a product life cycle, companies should focus on:
a. creating product differentiation.
b. increasing overhead costs.
c. sacrificing product quality.
d. using anti-competitive strategies.
e. divesting.
Q:
Which of the following strategies will help companies succeed during the growth stage of a product cycle?
a. Increasing overhead costs
b. Focusing on developing new products or services
c. Sacrificing product quality
d. Focusing on creating product differentiation
e. Increasing product prices significantly
Q:
Strategies to slow the entry of competitors are important if an organization is entering an industry during the _____ stage of the product life cycle.
a. growth
b. introduction
c. decline
d. maturity
e. recovery
Q:
Which of the following strategies can help companies during the maturity stage of a product life cycle?
a. Manufacturing products in small quantities intermittently than in bulk
b. Drastically increasing product prices
c. Focusing on keeping costs low
d. Sacrificing the quality of products
e. Focusing more on strategiesto slow the entry of competitors
Q:
Which of the following strategies can help companies survive during the decline stage of the product life cycle?
a. Increasing production costs
b. Manufacturing the products frequently and in smaller quantities
c. Avoiding differentiation strategies
d. Developing new products or services
e. Focusing onstrategies to slow the entry of competitors
Q:
During the decline stage of the product life cycle:
a. demand peaks.
b. new competitors enter the industry.
c. sales drop.
d. managers need tofocus their efforts on "getting the product out the door" without sacrificing quality.
e. managers must increase production costs.
Q:
In the maturity stage of the product life cycle,:
a. the demand is extremely high.
b. product sales rapidly increase.
c. compeition is at its peak.
d. managers need tofocus their efforts on "getting the product out the door" without sacrificing quality.
e. the number of newfirms producing the product begins to decline.
Q:
During the maturity stage of the product life cycle,:
a. most companies start hiring more employees.
b. managers need tofocus their efforts on "getting product the out the door" without sacrificing quality.
c. the sales volume is the highest.
d. more competitors enter the industry.
e. the overall demand growth for a product begins to slow down.
Q:
During the growth stage of the product life cycle,:
a. most companies downsize.
b. the demand is the lowest.
c. competitors start exiting the industry.
d. more firms begin producing the product.
e. sales rapidly decline.
Q:
During the introduction phase of the product life cycle _____.
a. companies must sacrifice product quality
b. most companies tend to downsize
c. demand may be very high
d. competition is at its peak
e. sales volume is the highest
Q:
Supertech Inc. is a large firm that manufactures gadgets and mobile phones. The company sells a line of inexpensive mobile phones exclusively targeted at youth and teenagers in Selenasia. Which of the following strategies is illustrated in the scenario?
a. Differentiation strategy
b. Focus strategy
c. Restraint of trade strategy
d. Anti-competitive strategy
e. Divesting strategy
Q:
A firm pursuing a(n) _____ strategy concentrates on a specific regional market, productline, or group of buyers.
a. overall cost leadership
b. divesting
c. restraint of trade
d. anti-competitive
e. focus
Q:
Which of the following will help a company achieve an overall cost leadership?
a. Manufacturing customized products in small quantities
b. Increasing after-purchase services
c. Using simple inexpensive product packaging
d. Selling products at very high prices
e. Increasing overhead costs
Q:
Alpha Inc. is a large shoe manufacturer that caters to a large customer base. In addition to the high volume of shoes it manufactures, the company sells simple-designed sneakers for low prices. Many customers buy Alpha shoes because they are durable and inexpensive. Which of the following strategies is illustrated in the scenario?
a. Overall cost leadership strategy
b. Market diversification strategy
c. Differentiation strategy
d. Divesting strategy
e. Market development strategy
Q:
Which of the following is most closely associated with an overall cost leadership strategy?
a. Manufacturing highly-customized products
b. Manufacturing products in bulk
c. Providing highly efficient customer service that is better than any other competitor
d. Selling products at high prices
e. Using expensive raw materials
Q:
Match the following numbered items with the most accurate response letter, regarding the advantages of approaches to internationalization.A response may be used once, more than once, or not at all.a. Importing or exportingb. Licensingc. Strategic alliancesd. Direct InvestmentSmall cash outlay
Q:
Match the following numbered items with the most accurate response letter, regarding the advantages of approaches to internationalization.A response may be used once, more than once, or not at all.a. Importing or exportingb. Licensingc. Strategic alliancesd. Direct InvestmentQuick market entry
Q:
Match the following numbered items with the most accurate response letter, regarding the advantages of approaches to internationalization.A response may be used once, more than once, or not at all.a. Importing or exportingb. Licensingc. Strategic alliancesd. Direct InvestmentExtended profitability
Q:
Match the following numbered items with the most accurate response letter, regarding the advantages of approaches to internationalization.A response may be used once, more than once, or not at all.a. Importing or exportingb. Licensingc. Strategic alliancesd. Direct InvestmentExisting infrastructure
Q:
Match the following numbered items with the most accurate response letter.A response may be used once, more than once, or not at all.a. General environmentb. Internal environmentc. Task environmentCustomers
Q:
Match the following numbered items with the most accurate response letter.A response may be used once, more than once, or not at all.a. General environmentb. Internal environmentc. Task environmentEmployees
Q:
Match the following numbered items with the most accurate response letter.A response may be used once, more than once, or not at all.a. General environmentb. Internal environmentc. Task environmentCompetitors
Q:
Match the following numbered items with the most accurate response letter.A response may be used once, more than once, or not at all.a. General environmentb. Internal environmentc. Task environmentPolitical-legal trends
Q:
Match the following numbered items with the most accurate response letter.A response may be used once, more than once, or not at all.a. General environmentb. Internal environmentc. Task environmentOwners
Q:
What is organizational culture? Discuss the importance, determinants, and management of organization culture.
Q:
Define whistle-blowing and briefly describe the problems that employees who elect to be whistle-blowers may encounter.
Q:
Define the internal environment of an organization, and describe its four major elements.
Q:
_____ is the set of values, beliefs, behaviors, customs, and attitudes that helps the organization's members understand what it stands for, how it does things, and what it considers important.
Q:
_____ occurs when a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country.
Q:
_____ is an arrangement whereby a firm allows another company to use its brand name, trademark, technology, patent, copyright, or other assets.
Q:
An employee who discloses illegal or unethical conduct by others within the organization is called a(n) _____.
Q:
_____ is an organization's set of social obligations to protect and enhance the social context in which it operates.
Q:
A written statement of what values and ethical standards guide a firm's actions is known as its _____.
Q:
Standards of behavior that guide individual managers in their work are called _____.
Q:
The term _____ refers to behavior that conforms to generally accepted social norms.
Q:
An organization's _____ are other organizations that compete with it for resources.
Q:
The _____ of the general environment is made up of the methods available for converting resources into products or services.
Q:
Which of the following is true of organizational culture?
a. Managers are advised to maintain an organization's culture even if it has become dysfunctional.
b. Corporate success and shared experiences have limited effect on organizational culture.
c. Organizational culture is always consistent throughout each of the divisions of an organization.
d. An organization's culture is not necessarily be affected by the growth of rival factions within the organization.
e. Organizational culture can be maintained by rewarding people whose behaviors are consistent with the existing culture.
Q:
Which of the following is true of the World Trade Organization (WTO)?
a. The WTO establishes impartial procedures for resolving trade disputes among its members.
b. The WTO requires members to limit their markets in international trade.
c. The WTO replaced the GATT and dismissed its mission.
d. The WTO focuses too narrowly on human rights and the environment.
e. The WTO promotes trade flows by encouraging nations to adopt preferential and flexible trade policies.
Q:
_____ is the set of values, beliefs, behaviors, customs, and attitudes that helps the organization's members understand what it stands for, how it does things, and what it considers important.
a. Workplace diversity
b. Working class culture
c. Organizational culture
d. Ethnography
e. Business diversity
Q:
The _____ replaced the General Agreement on Tariffs and Trade (GATT) and absorbed its mission in 1995.
a. European Union (EU)
b. International Trade Centre (ITC)
c. World Trade Organization (WTO)
d. United Nations Conference on Trade and Development (UNCTAD)
e. Global System of Trade Preferences among Developing Countries (GSTP)
Q:
The _____ is a trade agreement intended to promote international trade by reducing trade barriers and making it easier for all nations to compete in international markets.
a. Agreement on the Application of Sanitary and Phytosanitary Measures (SPS)
b. Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS)
c. North American Free Trade Agreement (NAFTA)
d. General Agreement on Tariffs and Trade (GATT)
e. Agreement on Technical Barriers to Trade (TBT)
Q:
Unicorn designs Inc., a software company, requires its employees to wear a specific color every day of the week. The colors for the weekdays are presently orange, red, green, yellow, and blue, respectively. The colors are changed from time to time and the employees are informed about it. The colors should be visible and could be on anything, like scarves, bags, ties, or socks. According to the management, the color coding system makes the company a vibrant and fun place to work. This decision of the management affects the _____.
a. company's economic dimension
b. task environment
c. technological dimension
d. organizational culture
e. political"legal atmosphere
Q:
Which of the following determines an organization's culture?
a. The extended benefits provided by an organization
b. The level of formality or informality in communication within an organization
c. The regulations for work performance set by an organization
d. The strategic partners of an organization
e. The products and services available for the functioning of an organization
Q:
An international _____ is a set of countries that agree to markedly reduce or eliminate trade barriers among member nations.
a. commonwealth
b. trade bloc
c. economic community
d. customs union
e. free trade area
Q:
Which of the following is an agreement among the United States, Canada, and Mexico to promote trade with one another?
a. North American Free Trade Agreement
b. North Atlantic Treaty Organization
c. General Agreement on Tariffs and Trade
d. Transatlantic Free Trade Agreement
e. World Trade Organization
Q:
Whichof the followingstatements about the European Union is true?
a. It dictates the internal organizational culture.
b. It is a union of observer countries that monitor the open markets to ensure that WTO rules are followed.
c. It is the strategic alliance between a European company and an American company.
d. It a form of labor union across Europe.
e. It is an economic community.
Q:
_____ gives preference to domestic producers through content or price restrictions.
a. "Buy national" legislation
b. "Go local" strategy
c. Federal acquisition regulation
d. Trade agreements legislation
e. "Ban maquiladoras" policy
Q:
_____ are, in effect, export quotas.
a. Export restraint agreements
b. Export licensing agreements
c. Service-level agreements
d. Export tariffs
e. Strategic alliance agreements
Q:
In international trade, the _____ amount is typically designed to ensure that domestic competitors will be able to maintain a certain market share.
a. benefaction
b. royalty
c. tariff
d. quota
e. minimum hourly wage
Q:
A(n) _____ is a tax collected on goods shipped across national boundaries.
a. quota
b. tariff
c. allowance
d. remuneration
e. commission
Q:
A(n) _____ is a limit on the number or value of goods that can be traded.
a. royalty
b. tariff
c. quota
d. threshold
e. allowance
Q:
An American company is in a joint venture with an overseas Asian company. The U.S. managers are particular about time management and appointments for conference calls and meetings. However, their overseas Asian counterparts are not conditioned the same way and don"t necessarily adhere to schedules. This variation in time management is an aspect of their _____ environment.
a. legal
b. cultural
c. technological
d. political
e. economic
Q:
Which of the following statements about organizational cultureis true?
a. Organizational culture shapes the behavior of employees, and thus impacts organizational effectiveness.
b. Organizational culture of an overseas franchisee is always the same as the culture of the nation in which the organization's headquarters are located.
c. Organizational culture will necessarilybe the same throughout an organization's subunits.
d. Organizational culture refers to the cultural and artistic charities that an organization supports.
e. Organizational culture is frequently and easily changed by most organizations.
Q:
The government of Westeriahas made it mandatory that all local publishers must use paper made in Westeria itself. This restriction imposed by Westeria on its publishers is a form of:
a. "ban maquiladoras" policy.
b. import tariff.
c. export restraint agreement.
d. "go global" strategy.
e. "buy national" legislation.
Q:
Almonds United Inc.,a company that produces almonds, is based in California, United States. Almonds United ensures that most of its produce is sold in the local market and not more than 20 percent is sold in the Indian markets each year. This is in accordancewith the U.S. government's voluntary limit on trade with India. Almonds United is following the _____ exercised by the U.S. government.
a. franchising agreement
b. direct investment
c. strategic alliance
d. licensing agreement
e. export restraint agreement
Q:
Accords reached bygovernments inwhich countries voluntarily limit the volume or value of goods they export to or import from one another are known as _____.
a. service-level agreements
b. licensing agreements
c. export restraint agreements
d. strategic alliance agreements
e. operational-level agreements
Q:
The French government charges a 25 percent tax on all American fruits and vegetables that are sold in France. This tax collected by French authorities is a(n) _____.
a. direct investment
b. license
c. export tariff
d. import tariff
e. strategic alliance
Q:
Which of the followingstatements about cultural environment is true?
a. An employee's cultural environment is personal, therefore, does not affect his profession.
b. In international business, cultural factors always cause problems for managers.
c. Cultural differences between countries can have a direct impact on business practice.
d. Difficulties can arise when there is complete overlap between a manager's home culture and the culture of the country in which business is to be conducted.
e. Subtle cultural differences between countries do not have a major impact on business activities.
Q:
The _____ of an organization includes all the values, symbols, beliefs, and language that guide behavior.
a. task environment
b. general environment
c. physical work environment
d. regulatory environment
e. cultural environment
Q:
_____ are light assembly plants built in Northern Mexico close to the U.S. border.
a. Industrial estates
b. Company towns
c. Hawthorne mills
d. Maquiladoras
e. Armories
Q:
In a(n) _____, two or more firms share equal ownership of a new enterprise.
a. direct investment
b. technology transfer
c. joint venture
d. interest group
e. economic community
Q:
Sam's Big Bites, an American chain of burger stands, operates on all military bases in the United States.The agreement between Sam's Big Bites and the Department of Defense is a(n) _____.
a. maquiladora.
b. licensing agreement
c. exporting agreement
d. importing agreement
e. strategic alliance
Q:
Basco Electric Inc., an American company, has two factories in Mexico near the U.S. border. Basco gets special concessions from the Mexican government as it provides employment to the local population. The factories are an example of:
a. licensing agreements.
b. franchisees.
c. leases.
d. imports
e. maquiladoras.
Q:
As an internationalization strategy, the typical use of maquiladoras by U.S. firms is a form of _____.
a. strategic alliance
b. licensing agreement
c. direct investment
d. joint venture
e. franchising
Q:
Which of the following approaches to internationalization of business has the disadvantage of shared ownership?
a. Importing
b. Licensing
c. Exporting
d. Joint ventures
e. Direct investment
Q:
Which of the following is an advantage of direct investment?
a. New infrastructure
b. Simplicity
c. Enhanced control
d. Greater political support
e. Greater certainty
Q:
Once a licensing agreement is agreed to, the licensee pays a(n) _____ in return.
a. interest
b. royalty
c. remuneration
d. tariff
e. reward
Q:
Making a product in the firm's domestic marketplace and selling it in another country is known as _____.
a. direct investment
b. exporting
c. joint venture
d. competing
e. franchising
Q:
An advantage of importing and exporting is:
a. shared ownership.
b. the lack of government restrictions.
c. low transportation costs.
d. the lack of tariffs and taxes.
e. small cash outlay.
Q:
Whichof the following is true of quotas in trade?
a. It isused most commonly to restrict trade.
b. It isused to encourage strategic alliance.
c. It isused to increase domestic competition.
d. It isthe tax breaks given by the host government.
e. It isa form of tax collected on imported goods.
Q:
A potential disadvantage of licensing agreements is:
a. decreased profits.
b. limited profitability.
c. inflexibility.
d. home production costs.
e. excessive transportation costs.
Q:
Atlantia is acompany that manufactures dishwashers in Germany. Its products are sold in the United States. Which of the following statements is most accurate?
a. Atlantia is exporting its products to the United States.
b. Atlantia has a license agreement with the United States.
c. Atlantia is importing its products from the United States.
d. Atlantia wholly owns subsidiaries of the firm in the United States.
e. Atlantia is outsourcing to the United States.
Q:
A(n) _____ strategy requires little small cash outlay, is heavily regulated by government, and does not require modification to products for local conditions and is the easiest approach to internationalization.
a. importing
b. licensing
c. joint venture
d. direct investment
e. offshoring
Q:
Which of the following is an advantage of licensing as an approach to internationalization?
a. Lack of competition
b. Extended profitability
c. Lesser uncertainty
d. Flexibility
e. Shared ownership
Q:
_____ is an employee's disclosure of illegal or unethical conduct by others within the organization.
a. Lobbying
b. Influence peddling
c. Whistle-blowing
d. Source criticizing
e. Reconnaissance