Deck 9: Control of Global Business

Question 1

Rules that all employees in the organization must fly coach when they travel on commercial airlines or a rule that employees can spend no more than $50 per person for a business-related company-reimbursed dinner are examples of interpersonal controls.

Answer 1

False

Question 2

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.

Answer 2

True

Question 3

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.

Answer 3

True

Question 4

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 5

"To inspire and nurture the human spirit - one person, one cup, one neighborhood at a time." This is an example of Starbucks's _____.

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

Question 6

In a United States banking law called the Community Development Act (CDA), all banks in the U.S. receive annual grades ("excellent," "satisfactory," or "unsatisfactory")from federal banking regulators based on their community reinvestment and CSR activities.

Question 7

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 8

CEOs who rise internally within the company, but who have followed a non-traditional path to the executive suite, (for example, the former CEO of General Electric Corporation, Jack Welch)are referred to as "outsiders-insiders".

Question 9

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 10

Starbucks Corporation takes a(n)______ approach toward strategy formulation, because it places considerable emphasis upon how its business decisions affect its customers and the neighborhoods and communities where it does business.

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

Question 11

Smithfield Foods Company, the world's largest pork producer, has set the clear organizational goal of getting $0.10 profit for each pound of its processed pork products (like Armour smoked bacon)that is sold. This is an example output controls and measurements.

Question 12

Many times, organizational change in a business is most effective when pushed from the top by the company's middle-level managers.

Question 13

Six Sigma refers to global corporate social responsibility standards for companies operating in the six most industrialized countries.

Question 14

It is predicted that by 2014, at least_____ percent of books being sold will be digital "e-books."

A) 10-15
B) 20-25
C) 35-40
D) 55-60
E) 70-75

Question 15

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

Question 16

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 17

In 2009, Google Corporation was the subject of various U.S. Department of Justice and Federal Trade Commission antitrust investigations.

Question 18

"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 19

In _______ strategy, global businesses define their overall goals.

A) formulating
B) controlling
C) implementing
D) organizing
E) directing

Question 20

When R&D discoveries in the United States operations of Toddler Toys, Inc. (TTI)can easily be communicated to and accepted by its operations in Ghana, it is an example of TTI's absorptive capacity.

Question 21

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 22

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

A) culture
B) change
C) adjustment
D) modification
E) alteration

Question 23

_____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 24

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 25

Smithfield Foods Company, the world's largest pork-producer, has set the clear organizational goal of getting $0.10 profit for each of its processed pork products that is sold. Which of the following output controls and measurement is Smithfield Foods Company using?

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

Question 26

A special cake recipe from a family member that calls for "a pinch of this" and "pinch of that" is an example of _____.

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

Question 27

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

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

Question 28

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 29

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 30

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 31

To achieve its longer-term "low price" strategic objectives, Wal-Mart could have a plan to buy more apparel products from lower-priced Chinese manufacturers during the next six months. This is an example of a(n)_____ plan.

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

Question 32

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 33

Michael Dell, the founder of Dell Corporation, interacted directly with every single employee during the early days of the company. Michael was practicing _____ control.

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

Question 34

A(n)_____ plan for Wal-Mart might be to build and open a textile manufacturing plant in China within the next two-and-one-half years.

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

Question 35

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 36

Toyota Motor Company has frequently sent hundreds of workers hired at a plant it is opening in a new country to Japan for months of training in the special "Toyota way" of auto manufacturing. This is an example of _____.

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

Question 37

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 38

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 39

Smithfield Foods CEO Larry Pope says his focus upon what happens with the company's Chinese operations is on "five or ten years" from now. Smithfield may be willing to lose some money with respect to its unprocessed pork sales in China in order to gain a toe-hold in that country's huge pork market. Which of the following output controls and measurement is Larry Pope using?

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

Question 40

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 41

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

Question 42

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

Question 43

_______ are very short-term (less than one year)plans formulated for implementing strategic goals.

Question 44

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 45

A ________ is a written statement of why a company exists and what it plans to accomplish.

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

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

Question 48

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

Question 49

The ______ model of strategy formulation model that believes that businesses exist to benefit not just their shareholders, but also all the various groups such as employees and customers that have a meaningful stake in their operation.

Question 50

___________ involves executives engaging in personal contact with subordinates as a way of managing an organization

Question 51

__________ involve establishing specific goals on given metrics and then measuring to what extent these goals have been achieved at certain time intervals.

Question 52

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

Question 53

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

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

Question 54

________ are organizations that implement a basic market strategy of concentrating upon existing operations and defending their home turf.

Question 55

Mission statements of a company should

A) ouline why the company exists and what it strives to accomplish.
B) define the role government will play in their business.
C) explore what it wants to become in the future.
D) identify its competitors.
E) specify the compensation the employees will receive.

Question 56

_________ are organizations that take a middle ground between being prospectors and defenders.

Question 57

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

Question 58

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 59

The percentage of the business in a certain market that is captured by a product or service that the organization provides refers to its ______.

A) employee turnover
B) quality control
C) maturity
D) efficiency
E) market share

Question 60

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

Question 61

Differentiate between explicit and tacit knowledge. Explain the role these play in the coordination of strategy implementation for global businesses.

Question 62

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 63

Describe how global companies can utilize the various types of control systems.

Question 64

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.
In meeting its strategic goals, Keegan Enterprises plans to open operations in the Middle Eastern country of Kuwait within two years. 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 65

Identify and briefly describe the impediments to the coordination of strategy implementation for global businesses.

Question 66

_______ refers to the personality of a given organization, its shared norms and values.

Question 67

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 68

Differentiate between the shareholder and stakeholder model of strategy formulation.

Question 69

Define organizational culture and explain the role it plays in controlling organizational activities.

Question 70

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.
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

Question 71

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) Company culture
C) Organizational change
D) Government mandates
E) Organizational stakeholder's credo

Question 72

Describe the importance of mission in an organization's strategy making process.

Question 73

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 74

Describe Miles' and Snow's four basic types of longer-term strategic implementation for global businesses. Provide an example of each.

Question 75

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