Question 1

McDonald's has closed many of its locations in Latin America.

Accepted Answer

McDonald's has indeed closed many of its locations in Latin America over the years due to various reasons including market performance, economic conditions, and strategic business decisions.

Question 2

McDonald's had to close a number of its restaurants in Latin America because of an emerging health-consciousness of its local customers.

Accepted Answer

McDonald's closures in Latin America were primarily due to economic reasons and franchise issues, not directly because of an emerging health-consciousness among its customers.

Question 3

Contingent workers are typically hired to fill the lowest skill level jobs.

Accepted Answer

Contingent workers can be hired for a variety of roles ranging from low-skill jobs to highly specialized, high-skill positions depending on the needs of the organization.

Question 4

The degree to which influence and control are unequally distributed among individuals and institutions within a particular culture is the measure of its power distance.

Accepted Answer

Power distance is a concept in cultural dimensions theory by Geert Hofstede, which describes how the distribution of power is perceived by individuals in different societies. A high power distance indicates that a culture accepts unequal distribution of power, while a low power distance suggests a preference for equality and participatory decision-making.

Question 5

The degree to which members of a society strive to maintain ambiguity, risk, and the indefiniteness of the future is the measure if its uncertainty avoidance.

Accepted Answer

The answer of The degree to which members of a...

Question 6

The number of employees needed for starting a pharmaceutical company is an example of the capital requirements for an industry.

Accepted Answer

Capital requirements refer to the financial resources needed for a business, such as funds for equipment or facilities, not the number of employees.

Question 7

A joint venture is different from an alliance.

Accepted Answer

The answer of A joint venture is different from an...

Question 8

Motorola and IBM have formed an alliance to manufacture memory chips in China. This alliance is also referred to as a joint venture.

Accepted Answer

A joint venture is a strategic alliance where two or more parties, usually businesses, form a partnership to share markets, intellectual property, assets, knowledge, and, of course, profits. Motorola and IBM forming an alliance to manufacture memory chips in China fits the definition of a joint venture, as they would be pooling resources for a common business goal.

Question 9

Technology is making it possible for Jeep to keep track of much higher parts inventories at the factory so that customers can have more optional equipment choices.

Accepted Answer

The answer of Technology is making it possible for Jeep...

Question 10

According to the "Preview" about the fast-food industry, both opportunities and competition are increasing. Which of the following is not one of the current interests of customers?

Accepted Answer

The current interests of customers in the fast-food industry include healthy cuisine, ethnic foods, and better value, but better service, while important, is not highlighted as a specific current interest in the context provided.

Question 11

Fast-food customers are seeking all of the following new menu items except:

Accepted Answer

Fast-food customers are generally not seeking Chinese food as a new menu item, as it is not typically associated with fast-food chains.

Question 12

A contingent worker is __________.

Accepted Answer

A contingent worker is typically someone who is not a permanent employee but is hired on a temporary basis, which includes independent contractors, freelancers, and consultants.

Question 13

The shared characteristics and values that distinguish the members of one group of people from those of another is __________.

Accepted Answer

Culture is defined as the shared characteristics, values, and norms that distinguish one group of people from another, making it the correct answer.

Question 14

One of the most crucial principles used and evaluated by managers is the notion of economies of scale. This refers to __________.

Accepted Answer

Economies of scale refer to the cost advantage experienced by a firm when it increases its level of output. The advantage arises due to the inverse relationship between per-unit fixed costs and the quantity produced. The greater the quantity of output produced, the lower the per-unit fixed cost. Businesses can achieve economies of scale when they increase production and reduce costs, which happens because costs are spread over a larger number of goods.

Question 15

Food suppliers to large companies, such as Burger King, often give discounts that are not extended to smaller customers. This either directly or indirectly affects the factor of __________ that serves as a barrier to entry.

Accepted Answer

Economy of scale refers to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale. Large companies like Burger King can negotiate better prices due to their large orders, which smaller competitors cannot match, thus creating a barrier to entry.

Question 16

According to Jean Birch, vice president of operations for Taco Bell, the cost of opening a new restaurant is close to __________ dollars.

Accepted Answer

The cost of opening a new Taco Bell restaurant is close to $1 million, according to Jean Birch, the vice president of operations for Taco Bell. This figure accounts for various expenses such as real estate, construction, equipment, and initial operating capital.

Question 17

Patents on a popular drug should ______________.

Accepted Answer

Patents on a popular drug give the patent holder exclusive rights to produce and sell the drug, which increases the supplier strength of basic ingredients because the supplier is in a position to negotiate better terms due to the high demand for these ingredients from the patent holder.

Question 18

KFC faces numerous problems in its attempt to operate in China. These problems include __________.

Accepted Answer

The answer of KFC faces numerous problems in its attempt...

Question 19

All of the following are associated with KFC's strategy for differentiating itself in China except __________.

Accepted Answer

KFC's strategy for differentiating itself in China focuses on appealing to various customer segments such as kids with combo meals, promoting an American/international lifestyle, and ensuring consistency in food quality. Administrative management principles, while important for any business, are not specifically highlighted as a differentiation strategy in KFC's approach in China.

Question 20

What is the number of state and local associations and organizations occasionally lobbying Washington decision makers?

Accepted Answer

The answer of What is the number of state and...

Quiz 3: Environmental Forces