Deck 7: Entry Strategies in Global Business

Question 1

A financial budget is a perfect example of an output control.

Answer 1

False

Question 2

Companies that are _____ take a middle ground between being prospectors and defenders.

A) neutrals
B) maintainers
C) reactors
D) analyzers
E) coordinators

Answer 2

D

Question 3

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

A) interpersonal
B) intrapersonal
C) bureaucratic
D) output
E) input

Answer 3

A

Question 4

Tacit knowledge is easier to communicate than explicit knowledge.

Question 5

Hershey Corporation has expanded and extended its business by developing new products and increasing global reach,but has done so in a very careful manner,avoiding undue risks and protecting its existing business operations.For this reason,it would fall into the category of an analyzer.

Question 6

A lamp manufacturing company has a written,ten-step process that describes how to put together its best-selling table lamp.This is an example of _____.

A) tacit knowledge
B) explicit knowledge
C) absorptive capacity
D) working capacity
E) stored capacity

Question 7

The president of a small company makes a point to touch base with every employee each day; this is an example of an interpersonal control.

Question 8

Organizational change in a business is almost always most effective when pushed from the bottom by the company's rank-and-file employees.

Question 9

When R&D discoveries in the United States operations of Anadarko Petroleum Corporation can easily be communicated to and accepted by its operations in Ghana,it is an example of Anadarko's absorptive capacity.

Question 10

Smithfield Foods Company,the world's largest pork producer,has set the clear organizational goal of getting 10 cents profit for each pound of its processed pork products that is sold.This is an example of an output control and measurement.

Question 11

Organizational culture can be a very effective control mechanism for an organization,particularly when the norms of a given business's culture are fully accepted by that organization's workforce.

Question 12

An organizational initiative that aims to limit defects or problems to 3.4 per million is a(n)

A) absorptive capacity.
B) bureaucratic control.
C) growth measurement.
D) interpersonal control.
E) Six Sigma initiative.

Question 13

The plan for ABC International to build and open a textile manufacturing plant in China within the next two-and-one-half years would be an example of an operational plan.

Question 14

CEOs who rise internally within the company,but who have followed a nontraditional path to the executive suite, (e.g.,,Nancy McKinstry,the CEO of Dutch publishing company Wolters Kluwer NV)are referred to as "outside-insiders."

Question 15

A key output metric for some global businesses is market share,or the percentage of the business in a certain market that is captured by a product or service the organization provides.

Question 16

Target Corporation is often accused of being a defender in terms of its market strategies and strategic implementation.

Question 17

The stakeholder model of strategy formulation believes businesses exist to benefit not just their shareholders,but also all the various groups that have a meaningful stake in their operations.Such groups,for example,might include a company's employees,customers,and the community where it operates.

Question 18

For global companies that take more of a "shareholder" approach to strategy formation,corporate social responsibility (CSR)ir probably the most important output control of all.

Question 19

Walmart deciding to buy more apparel products from lower-priced Chinese manufacturers (rather than from somewhat more expensive apparel manufacturers in the United States)during the next six months is an example of an operational plan.

Question 20

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.

A) reactionary
B) standing
C) strategic
D) tactical
E) operational

Question 21

An operational plan is

A) less than one year.
B) one to three years.
C) three to five years.
D) five to seven years.
E) seven to ten years.

Question 22

Organizational_____ involves implementation of a different business or cultural path for an organization.

A) culture
B) change
C) rightsizing
D) control
E) downsizing

Question 23

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 _____.

A) tacit knowledge
B) explicit knowledge
C) absorptive capacity
D) working capacity
E) stored capacity

Question 24

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.

A) interpersonal
B) intrapersonal
C) bureaucratic
D) output
E) input

Question 25

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

A) The ability of organizations to recognize,assimilate,and apply new knowledge is down is called absorptive capacity.
B) Knowledge that is codifiable and easy to communicate or write down is called explicit knowledge.
C) Traditionally,making necessary transformations of tacit knowledge into explicit knowledge has presented major challenges for global businesses.
D) New technologies such as the Internet have aided global businesses absorptive capacity.
E) Absorptive capacity refers to systems of rules and regulations promulgated within a global business.

Question 26

The large oil exploration company,Anadarko Petroleum Corporation,takes a(n)______ toward strategy formulation,placing a very clear emphasis in strategy formulation upon how its business decisions will help deliver and ongoing and competitive rate of return to its owners.

A) supplier
B) environmental
C) global
D) shareholder
E) stakeholder

Question 27

Starbucks Corporation takes more of a _____ approach toward strategy formulation.

A) customer-based
B) stakeholder
C) profit-oriented
D) shareholder
E) utilitarian

Question 28

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.

A) defender
B) prospector
C) reactor
D) analyzer
E) coordinator

Question 29

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.

A) defender
B) prospector
C) reactor
D) analyzer
E) coordinator

Question 30

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?

A) Profits
B) Employee turnover
C) Growth
D) Productivity
E) Market share

Question 31

"In everything we do,we're driven by a common mission: saving people money so they can live better." This is an example of Wal-Mart's _____.

A) vision statement
B) mission statement
C) business plan
D) flow chart
E) strategy chart

Question 32

Knowledge that is codifiable and easy to communicate or write down is called _____ knowledge.

A) tacit
B) explicit
C) absorptive
D) working
E) stored

Question 33

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.

A) intentional
B) equipped
C) strategic
D) tactical
E) operational

Question 34

If Dunkin Donuts (DD)were to follow the actions of Starbucks and copy all of their strategies and pricing,DD could be described as a(n)_____.

A) defender
B) prospector
C) reactor
D) analyzer
E) coordinator

Question 35

For generations there has been a norm of "highest quality in journalism" at the New York Times newspaper.In this context,the newspaper's reporters don't require close supervision to do great journalistic work.This is an example of the organizational _____ at the New York Times.

A) culture
B) background
C) traditions
D) customs
E) mores

Question 36

Determining whether to adopt a shareholder or stakeholder orientation is a major ______ for a business.

A) strategic goal formulation
B) operational plan
C) bureaucratic control
D) tactical plan
E) Six Sigma initiative

Question 37

In the banking industry,a particular bank's efficiency ratio 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?

A) Profits
B) Quality control
C) Growth
D) Productivity
E) Market share

Question 38

ABC Manufacturing focuses on implementing a basic market strategy of concentrating upon existing operations and protecting their home turf.ABC can be described as a _____.

A) defender
B) prospector
C) reactor
D) analyzer
E) coordinator

Question 39

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

A) strategy formulation
B) mission statement
C) annual budget
D) prospectus
E) code of ethics

Question 40

_____controls involve establishing specific goals given metrics and then measuring to what extent these goals are being achieved at certain time intervals.

A) Interpersonal
B) Intrapersonal
C) Organic
D) Output
E) Input

Question 41

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

A) employees; customers
B) customers; employees
C) shareholders; stakeholders
D) employees; shareholders
E) stakeholders; shareholders

Question 42

Scenario - Blackford Industries,Inc.
Blackford Industries,Inc.was established in 2004 by Jeanna and Sean Blackford.The company produces a wide array of restaurant equipment and supplies for restaurant owners throughout the United States.This company has grown substantially year after year since its inception.It attributes its success to having extensive knowledge of the industry it serves.Both owners have advanced culinary degrees from prestigious colleges and feel they understand the needs of their clients thoroughly.
Blackford Industries,Inc.is led by clearly defined guidelines established by its owners.The company's philosophy is one of caring for and about each customer.Blackford is known for treating each of its employees as if they were members of their family.Its business practices are honest and trustworthy.The company demonstrates its high level of integrity with each of its business dealings.
Sean and Jeanna are currently considering expanding their business into the European marketplace as this market is fairly unexplored by competitors with American restaurant supplies.They see the vast potential of this market and are aware of the challenges such a decision presents to them.The decision about the company's international expansion will be made by the end of this year.
One of the remarkable actions of Blackford Industries,Inc.is the treatment of its employees like family.Additionally,the fair and honest way this company conducts its business transactions and the way it respects and treats its customers is most likely a reflection of which one of the following?

A) Corporate strategy
B) Organizational culture
C) Organizational change
D) Government mandates
E) Organizational stakeholder's credo

Question 43

Scenario - Blackford Industries,Inc.
Blackford Industries,Inc.was established in 2004 by Jeanna and Sean Blackford.The company produces a wide array of restaurant equipment and supplies for restaurant owners throughout the United States.This company has grown substantially year after year since its inception.It attributes its success to having extensive knowledge of the industry it serves.Both owners have advanced culinary degrees from prestigious colleges and feel they understand the needs of their clients thoroughly.
Blackford Industries,Inc.is led by clearly defined guidelines established by its owners.The company's philosophy is one of caring for and about each customer.Blackford is known for treating each of its employees as if they were members of their family.Its business practices are honest and trustworthy.The company demonstrates its high level of integrity with each of its business dealings.
Sean and Jeanna are currently considering expanding their business into the European marketplace as this market is fairly unexplored by competitors with American restaurant supplies.They see the vast potential of this market and are aware of the challenges such a decision presents to them.The decision about the company's international expansion will be made by the end of this year.
According to Professors Raymond Miles and Charles Snow,under which of their classifications would Blackford Industries,Inc.must likely fall?

A) Reactors
B) Protectionists
C) Prospectors
D) Defenders
E) Challengers

Question 44

Scenario - Keegan Enterprises
Keegan Enterprises is owned by Stanley Keegan of Wichita,Kansas.Stanley started Keegan Enterprises in 1990 and has watched his company grow to become the second largest producer of van trailers in the world.Keegan Enterprises earned $60 million in profit last year and currently has over 17,000 workers around the globe.
In order to achieve its stated mission and goals,Keegan Enterprises has implemented several changes to its business strategy over the past few years.While accomplishing the necessary changes has not been easy or without challenge,Keegan Enterprises appears to be stronger and more unified today than ever before.Stanley Keegan is looking forward to facing future challenges and watching the forward growth of his business.He would like to see his company in the number one spot as the world's largest producer of van trailers in the world.
Keegan Enterprises acknowledges it has undertaken changes within the company's strategy.This organizational change can involve the implementation of a different business or cultural path for the organization.Which one of the following is least likely to be true regarding Keegan's organizational change?

A) Organizational change is often met with considerable resistance
B) The most accepted organizational change is led by top management
C) At times organizational change is better accepted if initiated by an outsider of the company
D) Organizational change indicates a company is in serious financial distress
E) Organizational change can involve both the business strategy and the culture of the company

Question 45

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

A) employee turnover
B) quality control
C) maturity
D) efficiency
E) market share
Enter the appropriate word(s)to complete the statement.

Question 46

Organizations that have a basic strategic implementation involveing extending their success through global expansion,and finding new market opportunities are referred to as _______.

Question 47

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

A) customers
B) executives
C) suppliers
D) employees
E) owners

Question 48

_______ are one to three year plans formulated for implementing strategic goals.

Question 49

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

A) defenders
B) prospectors
C) reactors
D) analyzers
E) coordinators

Question 50

Knowledge that is informal in nature and difficult to communicate is known as _____ knowledge.

Question 51

Corporate ______ responsibility is an important output control for many companies intent on "giving back" to their communities.

Question 52

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.

A) defender
B) prospector
C) reactor
D) analyzer
E) coordinator

Question 53

Scenario - Blackford Industries,Inc.
Blackford Industries,Inc.was established in 2004 by Jeanna and Sean Blackford.The company produces a wide array of restaurant equipment and supplies for restaurant owners throughout the United States.This company has grown substantially year after year since its inception.It attributes its success to having extensive knowledge of the industry it serves.Both owners have advanced culinary degrees from prestigious colleges and feel they understand the needs of their clients thoroughly.
Blackford Industries,Inc.is led by clearly defined guidelines established by its owners.The company's philosophy is one of caring for and about each customer.Blackford is known for treating each of its employees as if they were members of their family.Its business practices are honest and trustworthy.The company demonstrates its high level of integrity with each of its business dealings.
Sean and Jeanna are currently considering expanding their business into the European marketplace as this market is fairly unexplored by competitors with American restaurant supplies.They see the vast potential of this market and are aware of the challenges such a decision presents to them.The decision about the company's international expansion will be made by the end of this year.
Blackford Industries,Inc.realizes that each decision it makes affects may stakeholders of the company.Of the following,which one is least likely to be considered a stakeholder of the company?

A) The board members of the competitors
B) The community the business is located in
C) The customers of the business
D) The employees of the business
E) The suppliers of the business

Question 54

Goals relating to profits,growth,productivity,and market share are all types of ______ controls.

Question 55

________ refers to the ability of organizations to recognize,assimilate and apply new knowledge.

Question 56

In meeting its strategic goals,Keegan Enterprises plans to buy trailer hitches manufactured in Croatia over the next six months.This business idea is best identified as which one of the following?

A) An operational plan
B) A business strategy
C) A demonstration of organizational change
D) A reactor formulation
E) A tactical plan

Question 57

_________ involves implementation of a different business or cultural path for an organization.

Question 58

_________ are organizations that have a strategic implementation involving responding to strategic actions initiated by competitors.

Question 59

The _______ model of strategy formulation operates from the premise that the key strategic purpose of a business is to maximize financial returns for its owners.

Question 60

Systems of rules and regulations promulgated within a global business are called ______ controls.

Question 61

Scenario - Blackford Industries,Inc.
Blackford Industries,Inc.was established in 2004 by Jeanna and Sean Blackford.The company produces a wide array of restaurant equipment and supplies for restaurant owners throughout the United States.This company has grown substantially year after year since its inception.It attributes its success to having extensive knowledge of the industry it serves.Both owners have advanced culinary degrees from prestigious colleges and feel they understand the needs of their clients thoroughly.
Blackford Industries,Inc.is led by clearly defined guidelines established by its owners.The company's philosophy is one of caring for and about each customer.Blackford is known for treating each of its employees as if they were members of their family.Its business practices are honest and trustworthy.The company demonstrates its high level of integrity with each of its business dealings.
Sean and Jeanna are currently considering expanding their business into the European marketplace as this market is fairly unexplored by competitors with American restaurant supplies.They see the vast potential of this market and are aware of the challenges such a decision presents to them.The decision about the company's international expansion will be made by the end of this year.
If Keegan Enterprises was characterized as an analyzer by Miles and Snow,which one of the following would not be true of this company?

A) Companies that use the analyzer strategy take steps to extend their markets while avoiding excessive risk
B) Companies that use the analyzer strategy defend existing operations while taking steps to extend their markets
C) Companies recognized as analyzers take a middle ground between being prospectors and defenders
D) Companies using an analyzer strategy take extensive risks to expand into global markets
E) Strategic implementation using an analyzer strategy can be impeded by legal,technological,and political challenges