condensed business revision

How is international business defined?

All commercial transactions between parties in two or more countries.

What is a key reason firms engage in international business?

To expand sales.

Name a company that engages in international business.

Volkswagen (Germany).

What is one way firms minimize risk in international business?

By diversifying suppliers across countries.

What are the modes of entry into international business?

Merchandise exports and imports, service exports and imports, licensing agreements, foreign investment.

What is a key challenge of conducting business overseas?

Social and cultural differences.

What does effective team leadership involve?

Rallying people around a compelling purpose and sharing power.

What are the four management functions?

Planning, Organizing, Leading, Controlling.

What is the definition of management according to Mary Parker Follett?

The art of getting things done through people.

What are the three types of management skills?

Conceptual skills, human skills, technical skills.

What is scientific management?

A theory focused on improving efficiency and labor productivity, introduced by Frederick Winslow Taylor.

Who introduced the bureaucratic theory?

Max Weber.

What is the purpose of establishing norms in a team?

To create shared expectations and standards for team behavior.

What is the first stage of Tuckman's Team Life Cycle Model?

Forming.

What is the significance of the storming phase in team development?

It involves confusion about tasks and conflict among team members.

What can cause team conflict?

Competition over resources, communication breakdowns, lack of trust.

What is the role of managers in facing environmental turbulence?

To see events coming that may present opportunities or threats and be prepared for them.

What is the importance of defining roles in a team?

To clarify responsibilities and expectations among team members.

What does controlling in management entail?

Monitoring activities and taking corrective action when needed.

What is the purpose of setting goals in a team?

To provide direction and a clear target for team efforts.

What is the 'norming' stage in Tuckman's model?

The stage where the team gains shared understanding of the task and forms team norms.

What is the significance of the adjourning phase in team dynamics?

It involves debriefing and learning before the team disbands.

What is a common failure in management during turbulent times?

Poor communication.

What is the role of human skills in management?

The ability to work with and through other people.

What did the Hawthorne studies reveal about worker productivity?

Productivity increased due to better treatment of employees.

What is the primary source of control according to the Hawthorne Human Relations Movement?

Control comes from the individual worker rather than authoritarian control.

What is the definition of ethics in a managerial context?

Ethics is the code of moral principles and values that govern behaviors regarding what is right or wrong.

What does Corporate Social Responsibility (CSR) entail?

CSR is the obligation of management to make decisions that enhance the welfare and interests of society as well as the organization.

What does ESG stand for and what does it measure?

ESG stands for Environmental, Social, and Governance; it measures the progress organizations make in these areas.

Who are considered stakeholders in an organization?

Stakeholders are any group within or outside the organization that has a stake in its performance, such as employees, shareholders, creditors, and partners.

What is a Code of Ethics?

A formal statement of the organization's values regarding ethics and social issues.

What is whistle-blowing?

Employee disclosure of illegal, immoral, or illegitimate practices.

What is a mission statement?

A concise declaration of a company's fundamental purpose, outlining what it does, how it does it, and why it exists.

What are the characteristics of goals in an organization?

Goals provide legitimacy, motivation, resource allocation, guides to action, rationale for decisions, and standards of performance.

What are strategic goals?

Broad statements about the organization that define the action steps the company intends to attain.

What are tactical goals?

Goals that help execute major strategic plans and are specific to parts of the company's strategy.

What are operational goals?

Results expected from departments, work groups, and individuals at lower levels of the organization.

What does SMART stand for in goal setting?

Specific, Measurable, Achievable, Relevant, Time-bound.

What are common reasons managers make bad decisions?

Influence by initial impressions, justifying past decisions, overconfidence, and not monitoring external events.

What are the four stages of crisis management?

Maintain focus, be visible, get the awful truth out, and communicate the vision for the future.

What is SWOT analysis?

Assessment of internal strengths and weaknesses and external opportunities and threats.

What does the BCG Matrix help to organize?

Businesses along two dimensions: growth and market share.

What are Porter's Five Forces?

A framework for analyzing a company's position in the industry based on competition, buyer power, supplier power, threat of substitutes, and potential new entrants.

What is the role of organizing in management?

Organizing is the deployment of organizational resources to achieve strategic goals.

What does the vertical structure of an organization refer to?

The set of formal tasks assigned to individuals and departments, including lines of authority and decision responsibility.

What is the span of management?

The number of employees reporting to a supervisor.

What factors allow for a larger span of control?

Work is stable and routine, subordinates perform similar work, are highly trained, and need little direction.

What is the team approach in organizational structure?

Teams allow organizations to delegate authority and become flexible and competitive.

What does the virtual network approach involve?

Extending collaboration beyond the organization by subcontracting functions and coordinating activities.

Why is managing change and innovation important?

It is key to success in today's dynamic environment where companies must continually innovate.

What are tactics to overcome resistance to change?

Communication, education, participation, negotiation, coercion, and top management support.

What are common forms of control in organizations?

Financial performance including sales, revenue, and profit.

What is the purpose of budgets in organizations?

To list planned and actual expenditures and highlight variances.

What is an expense budget?

A budget that outlines costs.

What does the current ratio measure?

A company's ability to cover its short-term obligations with current assets.

What is the formula for net profit margin?

Net income divided by sales.

What does the debt ratio indicate?

The amount of leverage used by a company in terms of total debt to total assets.

What are the components of attitudes in organizations?

Cognitions (thoughts), affect (emotions), and behavior (intention to act).

What personality trait is characterized by competitiveness and impatience?

Type A behavior.

What are the four components of emotional intelligence?

Self-awareness, self-management, social awareness, and relationship management.

How can stress be both positive and negative?

It can stimulate change and achievement but can also be harmful to employees and organizations.

What is the situational theory of leadership?

Success depends on whether the manager's leadership style fits the situation.

What defines ethical leadership?

Having the courage to do the right thing and strong moral beliefs.

What is the concept of motivation in management?

Arousal, direction, and persistence of behavior affecting employee productivity.

What are intrinsic rewards?

Satisfaction received from performing a particular action.

What is Maslow's Hierarchy of Needs?

A theory that states once a need is satisfied, it declines in importance and the next higher need is activated.