MANA 1301 Exam 3

Former General Electric CEO Jack Welch was well known for regularly meeting one-on-one with all senior managers and business unit head. Welch was practicing ____ control

Interpersonal

U.S. Corporations have been pouring investments into China to build manufacturing facilities to produce goods for the local and export markets. Since economists expect the Chinese yuan to appreciate against the dollar in the future, the forthcoming Chinese yuan profits of U.S. MNEs when converted to U.S. dollars will be high. This is an example of U.S. companies cutting costs by ____

Reacting to exchange rate movements

Which of the following is NOT true about licensing?

It involves slightly more risk to the licensee than licensor.

In the banking industry, a particular bank's efficiency ration is a closely monitored metric. If one bank can achieve a profit of $2 million per year with 90 employees, and another bank needs to employ 200 employees to achieve the same level of profits, the first bank's employees are more efficient than the second. Which of the following output controls and measurement is the banking industry using?

Productivity

Limited Clothing Inc. has a corporate headquarters with three divisions: North American Division, European Division, and Asia Division. Limited Clothing Inc. has a ____ structure.

Geographical region

Coca-Cola has built 43 bottling plants and two concentrate manufacturing plants with three separate partners in China since 1979. This is an example of a(n) ____

International joint venture

A(n) ____ plan for Best Buy might be to build and open 50 new stores in the United States and Canada within the next two-and-one-half years.

Tactical

To make sure it has enough employees on hand during the busy holiday season, Target plans to hire thousands of temporary, seasonal help for the final three months of the calendar year. This is an example of a(n) _____ plan.

Operational

At IBM, there are five divisions: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. IBM utilizes a _____ structure.

Product

Altria Group, Inc., may feel that the importance of "fiscal discipline" in its stated mission mandates that it reduce its operations and concentrate upon making its existing U.S.-based Marlboro operations as efficient and profitable as possible. In short, Altria will be most concerned with maintaining its existing strategic position. This is an example of Miles and Snows' _____ typology.

Defender

CEMEX has three divisions: (1) North America; (2) South America and the Caribbean; and (3) Europe, Asia, and the Middle East. CEMEX has a _____ structure.

Geographical Region

Brazil is one of the world's lowest cost producers of ethanol and soybeans. Japanese corporations have heavily invested in Brazil to lease large tracts of land to grow soybeans for export to Japan, where they are used to derive products such as soy sauce and chicken feed. These Japanese companies are cutting costs by _____.

Minimizing factor input costs

Of the following, which is NOT listed in the text as a purpose of organizational structure?

It allows the members of an organization to develop a cohesive company culture

Which of the following is NOT true about franchising?

in franchising, the parent firm assumes relatively less risk than with licensing.

Anadarko Petroleum Corporation may decide that the best long-term way to implement its strategic goal of providing financial returns to its shareholders could be to explore for oil in other parts of the world where it has not yet explored, such as Africa. This is an example of Miles and Snows' _____ typology.

Prospector

At ExxonMobil, divisions include Upstream, Downstream, and Chemical. The Upstream division includes exploration, development, production, and gas and power marketing. The Downstream division includes refining and supply, fuels and marketing, and lubricants. ExxonMobil utilizes a _____ structure.

Product

Typewriters are in the _____ stage of the product life cycle.

Decline

A top salesperson "just knows how to sell" but has a difficult time communicating how she does it. Her ability to sell is an example of _____.

Tacit Knowledge

A global business is organized into four groups: Manufacturing, Research and Development, Finance, and Sales. This company uses a(n) ______ structure.

Functional

Lenovo, the Chinese computer manufacturer, is a corporation where it is difficult to identify one country as the home country. Lenovo can be described as a _____ corporation.

Stateless

The Coca-Cola company has operations in more than 140 countries and generates more that 55 percent of its profits from its overseas operations. Coca-Cola's annual profits are, therefore, more stable than those of a firm that focuses upon the U.S. market alone. Coca-Cola is engaging in _____.

Diversification

Hershey Corporation has assiduously expanded and extended its business by developing new products and increasing global reach, but it has done so in a very careful manner, avoiding undue risks and protecting its existing business operations. This is an example of Miles and Snows' _____ typology.

Analyzer

A rule that all employees in the organization (including the CEO) must fly coach when they travel on commercial airlines represents a consistent _____ control within an organization.

Bureaucratic

Of the following, which is NOT true of mergers and acquisitions?

Mergers and acquisitions are relatively low-risk

Las Vegas hotelier MGM Mirage recently spent $8.5 billion on a new resort that adds almost 5,000 new rooms to a market that some argue is already saturated. Which of the following output controls and measurement is MGM Mirage using?

Growth

Some companies are global and so well integrated into the countries where they have a presence, that it is difficult, if not impossible, to identify one country as the home country for these corporations. such companies are called _____.

Stateless

An agreement between two or more firms that do not involve the creation of a separate entity with joint ownership and in which the firms stand to gain revenues and maximize profits through cooperation for a given period of time is called a(n) _____.

Strategic alliance

The ultimate objective of most joint ventures is _____.

Using joint production and sales distribution networks to increase revenue

Organizations that have basic strategic implementations involving extending their success through global expansions and finding new market opportunities are called _____.

Prospectors

The so-called BRIC countries consist of: _____.

Brazil, Russia, India, and China

C.K. Prahalad would say that Chinese computer manufacturer Lenovo is in which stage of globalization?

Fourth

A(n) ______ is a tool that people use to coordinate their actions to obtain something they seek or value.

Organization

While many major corporations have a global presence, stateless corporations are different because they _____.

Attempt to transcend nationality altogether

A challenge faced by strategic alliances is that

Any member could prematurely quit the alliance

According to the text, ConocoPhillips placed their ethics office in which part of the organization structure?

Audit and finance department

A company following a shareholder model of strategy formulation would be MOST focused on its ______.

Owners

According to the text, which of the following entry strategies has the highest degree of risk?

Wholly-owned foreign subsidiary

An area structure is one where an organization:

Groups products into separate divisions according to the needs of the different geographical regions the company serves

Of the following, which is NOT true about knowledge management and systems?

Absorptive capacity refers to systems of rules and regulations promulgated within a global business

While ______ are the owners of the given business, ______ are individuals or groups that have a vested interest in the business.

Shareholders: stakeholders

A market structure is also sometimes called ______ structure.

Customer

Of the following, which is NOT an advantage of the functional structure?

It ensures that organizations will engage in socially responsible efforts

Of the following, which is NOT an emerging-market?

Australia

One output control measure frequently used by global businesses is productivity or ______.

Efficiency

General Electric, Microsoft, Sony, Toyota, and BMW are examples of _____.

Multinational enterprises

The initial step toward globalization is ______.

Exporting

A basic problem of the _____ structure is it is difficult to determine the responsibility and authority relationships between the functional and divisional managers.

Matrix

According to C.K. Prahalad, a global firm is in the third stage of globalization when it _____.

Sets us operations in other countries

In a(n) _______, a global business explains why it exists and what it plans to accomplish.

Mission Statements

All of the following are advantages of the matrix structure EXCEPT that it _____.

Rarely allows employees the chance to acquire functional skills