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.

Accepted Answer

These are examples of organizational controls, specifically financial or administrative controls, not interpersonal controls.

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.

Accepted Answer

This statement describes a specific action that Walmart plans to take in the next six months as part of its operation. Therefore, it is an example of an operational plan.

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.

Accepted Answer

An analyzer is a company that balances between maintaining stability in its existing operations and exploring new opportunities cautiously. Hershey Corporation's approach of careful expansion and protection of its existing business operations fits this description, making it an analyzer.

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.

Accepted Answer

The word "owners" in the sentence indicates a focus on shareholders, making D the best choice as it specifically mentions "shareholder" as an option.

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 _____.

Accepted Answer

This statement outlines the purpose and goals of Starbucks and is a clear example of a mission statement. It describes the company's focus on individual connections and community engagement through coffee.

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.

Accepted Answer

The law referred to is the Community Reinvestment Act (CRA), not the Community Development Act (CDA). The CRA requires banks to be evaluated on their community reinvestment efforts, but it does not use the grading system "excellent," "satisfactory," or "unsatisfactory." Instead, banks are rated as "Outstanding," "Satisfactory," "Needs to Improve," or "Substantial Noncompliance."

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.

Accepted Answer

The statement accurately describes the stakeholder model of strategy formulation.

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".

Accepted Answer

The answer of CEOs who rise internally within the company,...

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.

Accepted Answer

Organizational culture can be an effective control mechanism when the workforce fully accepts and embraces the norms and values of that culture. When employees understand and uphold the culture, they are more likely to work towards the same goals and behave in ways that align with the organization's values. This creates a sense of consistency and unity within the organization, which can serve as a powerful control mechanism.

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.

Accepted Answer

Starbucks Corporation takes a stakeholder approach toward strategy formulation, meaning it considers the impact of its business decisions not only on its shareholders but also on its customers, employees, suppliers, and communities where it operates.

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.

Accepted Answer

The goal of getting $0.10 profit for each pound of processed pork sold is a clear output control and measurement. It sets a specific target for the company and allows them to measure their success in achieving this goal.

Question 12

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

Accepted Answer

Organizational change is often most effective when driven by top-level leadership, as they have the authority and vision to implement and sustain change across the organization. Middle-level managers play a crucial role in facilitating and supporting the change process, but they typically do not initiate it.

Question 13

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

Accepted Answer

Six Sigma is a methodology aimed at improving business processes by reducing defects and errors. It is not specific to any particular country or region and does not relate to global corporate social responsibility standards.

Question 14

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

Accepted Answer

The answer of It is predicted that by 2014, at...

Question 15

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

Accepted Answer

Target Corporation is often recognized for its innovative market strategies and strategic implementation, focusing on customer experience, product differentiation, and digital transformation.

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.

Accepted Answer

This is an example of a strategic plan, as it outlines long-term goals and the direction of the company over a period of years, rather than focusing on day-to-day operations.

Question 17

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

Accepted Answer

In 2009, Google Corporation was indeed 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 _____.

Accepted Answer

The statement describes Wal-Mart's mission, which is the purpose or reason for the organization's existence. It is not a vision statement (which outlines future aspirations), a business plan (which details strategies and tactics for achieving goals), a flow chart (which depicts processes and procedures), or a strategy chart (which outlines specific strategies for achieving goals).

Question 19

In _______ strategy, global businesses define their overall goals.

Accepted Answer

Formulating strategy involves defining the overall goals of a business, analyzing the internal and external environment, and identifying appropriate courses of action to achieve those goals. Controlling involves monitoring and adjusting performance to ensure the strategy is being implemented effectively. Implementing involves executing the chosen strategy, organizing involves arranging resources and personnel to carry out the strategy, and directing involves leading and motivating employees to effectively carry out the strategy.

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.

Accepted Answer

Absorptive capacity refers to the ability of an organization to identify, assimilate, and apply knowledge from external sources. In this case, TTI's ability to communicate and transfer knowledge between its operations in the United States and Ghana suggests that it has a high absorptive capacity.

Quiz 9: Control of Global Business