Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Management Policy > Exam 2 - Chapter 4-8 > Flashcards

Exam 2 - Chapter 4-8 Flashcards

1
Q

Among the Rationale for international expansion is to “work patents” in other countries. This means?

A

Producing and or selling your product in the foreign country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

One of the marketing conditions which might influence a company’s choice as to where to pursue an overseas expansion might be homologation requirements. An example of this would be?

A

adjusting your product to local voltages

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The advantages of entering an international marketing via licensing include which of the following?

A

Little or no capital exposure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Offsetting your exchange rate risk by purchasing a financial instrument which guarantees limits on your exchange rate exposure is called?

A

Hedging

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Host government policies can often influence companies to locate there via incentives. What is any one incentive which a foreign government or province might use?

A

Have a tax free zone for manufacturing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Remittable funds represent?

A

The amount of profit you can take out of a country

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

One of the reasons to enter a strategic alliance or JV in a new country is to gain access to distribution. In this case, your partner may help you?

A

By filling out your product line

By helping you to get access to distributors and retailers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Dumping is variously described as?

A

Selling a product in a foreign market at a price which is below the price in your home market
Selling a product below your fully allocated cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Accusations of dumping are adjudicated by?

A

WTO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is any one reason you might decide to not enter into a foreign market?

A

Country destabilizing, demographics don’t make sense for your business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

In many situations, it is wise to disperse manufacturing and assembly operations to various sites in order, for example to minimize distribution costs by getting closer to the customer. What is any reason for centralizing manufacturing operations?

A

Shipping air containers around the country, provides a lower cost to build plants close to another

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

If investing in a foreign market, you need to protect a proprietary manufacturing process or formula, you might decide to enter a foreign market by this type of FDI

A

Green field site

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What would be an example of leveraging a strong brand as a means of achieving diversification?

A

Miracle Whip expanded into other business - Salad dressings, to Mayonnaise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Decisions about diversification should always be evaluated and measured primarily by virtue of their effect on?

A

Shareholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

The most popular approach to diversifying a business is by?

A

Acquisition

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

If I were in the business of making shoes, what is any business i might choose to move into by virtue of extending my existing business or skills?

A

Apparel business, belts, socks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

In the BCG Analysis, businesses which start out as a ______(having a small relative share in a fast growing industry) may, through investment, improve their relative share position and become ________. As the industry matures, they may become ________ and as technological and other forces cause obsolescence they may eventually drift into the end of their life cycle as

A

Question Mark, Star, Cash Cow, Dog

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Achievement of cost savings by virtue of the reduction in unit costs accompanying the total size of the production operations?

A

Economy of Scope, Value Chain economics

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

The multi-business strategy in which elements of the corporation may share a common customer base or a common distribution scheme would be called?

A

Related diversification

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

The characteristics of an unrelated diversification strategy would include which of the following?

A

Targets for acquisitions would include bargains or undercapitalized business, There is generally no business to business strategy,

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

The popular evaluation schemes for corporate strategy in multi-business enterprises are based on which two of the following?

A

Business unit competitive strength, industry attractiveness

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

In a leveraged buyout?

A

The company becomes a private entity, The company usually takes on a high debt load

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

A proceeding in which the assets of a company are sold off and the company is closed down is referred to as?

A

Chapter 7 Bankruptcy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

If a tender offer is made directly to the shareholders of a publicly-held company, this is an indication of which of the following?

A

A hostile takeover effort

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

A spinoff is sometimes undertaken in order to unlock the value in the stock. What does that mean?

A

The share prices of the constituent parts of the company will trade at a higher combined price than the original company shares

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

In your instructors view, the most critical strategic decision made by a management team involve:

A

The employment of available cash flow for investment in new or existing businesses or ventures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Which of the following are drivers of unethical behavior, according to the text and the discussion in class?

A

Pressure from investors to meeting earnings targets, Pressure in behalf of the employees to achieve bonus or stock option targets, Desire for personal wealth

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

According to the text’s discussion of the costs of unethical strategies, examples of the lowest visible costs would be which of the following?

A

Hits to the stock price, potential lawsuits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

According to the instructors comments in class, the most serious cost of an EEOC complaint might well be?

A

The effort expended in defending the complaint by HR and other personnel

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

If we sat that what is ethical is governed primarily by the stands of the local culture in which we are operating, we are following which of these concepts?

A

Ethical relativism

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Businesses usually embrace social responsibility initiatives?

A

Out of self-interest

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

Peter Drucker believed that social responsibility?

A

Was not a proper role for business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

Support for the local United ay would be an example of?

A

Social Responsibility

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What is any one positive value of socially responsible behavior on the part of a company?

A

The local economic impact for a community, empowered workers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Which of the following are characteristics of corporate environmental sustainability programs?

A

Can be a competitive advantage, Usually linked to the business itself or the interests of employees, the ultimate goal is a closed system

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

When a company first starts up, the proprietor may handle sales, while another individual manages the manufacturing and service part of the business. This would be described as _____ Organization

A

Functional

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

A large multi-SBU company which could be characterized as related diversification would like to have an organizational structure which was most like which of the following?

A

Matrix

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

Where mistakes can be critical and tight control is necessary, the span of control forward favored by most organizations is?

A

Vertical, with each boss having just two or three reporting subordinates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

According to your instructor, the best organizational structure is?

A

There is no best structure

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

In Frederick Herzberg’s Two-Factor Theory of Organizational Behavior, which of the following would be considered maintenance factors

A

Day car services, office size, vacation benefits, merit increases in pay

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

The most important element in allocating resources is?

A

Assessing the risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

A program which proceeds from the observation that everyone has a customer or customers, inside or outside the organization, is?

A

TQM

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Policies and Procedures?

A

Provide strategic guidance for company direction, Are for recurring situations

44
Q

Which of the following are among the guidelines for monetary incentives?

A

Make the incentive a major part of the compensation package, Ensure objectivity to the extent possible, Tie incentives to results(not effort)

45
Q

Alignment schemes are intended to align the interests of?

A

Management and Shareholders

46
Q

Profit Sharing?

A

A right based on the achievement of a threshold earnings level for the company

47
Q

Performance Stock Options?

A

A right based on achievement of a company goal plus the passage of time

48
Q

Banked Bonuses?

A

A right based on sustained performance over time

49
Q

Phantom Stock/Options?

A

A right based on a calculation of earnings and price/earnings ratio for an industry

50
Q

Which of the following are tests of alignment techniques?

A

Has an impact on employee behavior

51
Q

When we sat that a corporate culture is insular, we mean that?

A

It believes that the only good ideas come from within the organization

52
Q

In Your instructors view, the hardest part of encouraging creativity in an organization is?

A

Learning to tolerate failure of creative initatives

53
Q

One of the elements discussed as part of staying informed was development of information without evaluation skill. What does that mean?

A

Knowing if something is right or wrong just at a quick glance, being aware of surroundings

54
Q

What did Richard Cory Do?

A

Put a bullet through his head?

55
Q

The only president of the US who also served as chief justice of the supreme court?

A

William Howard Taft

56
Q

Top line?

A

Revenue

57
Q

Bottom line?

A

Net Income

58
Q

Market Cap?

A

Price per share * Outstanding shares

59
Q

ROE?

A

Most frequently used by shareholders

60
Q

EBITA?

A

Money you make out of basic business before considering accounting affects

61
Q

P/E?

A

Still used in investment community of what the investors confidence in management might be.

62
Q

Inventory Resources: Physical?

A

Physical: Location, equipment, ownership of mines, buildings, distribution, warehouses, trucks, containers, roll-on roll off facilities

63
Q

Inventory Resources: Human?

A

Sales force

64
Q

Inventory Resources: Organizational?

A

Support primary functions of business(customer service is strong,

65
Q

Inventory Resources: intangible?

A

patents, trademarks, intellectual property

66
Q

Inventory Resources: Alliances?

A

Alliances: resources that you have by virtue of your alliances

67
Q

Competitive advantage - Valuable?

A

In the marketplace

68
Q

Competitive advantage - Rare?

A

Is it unique capability o resources(always compare to competitors)

69
Q

Competitive advantage - Hard to Copy or imitate?

A

capital investment, patent estate, reputation built over time

70
Q

Measurement of internal resources is always against who?

A

Always compare against competitors

71
Q

SWOT External Factors?

A

Look at external factors and ask which of these create opportunities. Technology changes, maybe focus on e-commerce…. Changes in demographics(old people in US and Europe), Social changes(people becoming more mobile-south and west), economic factors(buildup of people along the coast in china of GDP of $20,000).

72
Q

SWOT Internal Factors?

A

Internal factors: always just compared to competitors. these are difficult because people don’t like to admit failure.

73
Q

Porters Primary Activities?

A

Primary: operations, marketing

74
Q

Porters Secondary Activities?

A

Secondary: HR, R&D

75
Q

What is Benchmarking?

A

Best practice in any industry to relate to benchmark

76
Q

Industry Value Chain?

A

look at the entire value chain. Distributor to sales to marketing. Each steps adds value from raw material supply to customer purchase

77
Q

Supplier Dis-advantage?

A

Pressure via multiple sources/put someone in business, Back integrate, Partner with supplier/utilize JIT delivery

78
Q

Low Cost Provider?

A

Everything looks alike, commodities… etc

79
Q

Differentiation?

A

Allows for a larger margin and or an enhanced market share. Basis of the differentiation can be anything the customer values(service, selection, prestige)

80
Q

Niche?

A

Hazards, gets too big… attracts flies.

81
Q

Multiple strategies?

A

Offering a number of things at different price points to everyone. ?Ball Park, Airlines.

82
Q

Best cost provider?

A

Find a niche in the market, target is best example. A bit better of a situation

83
Q

Stuck in the middle danger?

A

Try to become a differentiated product, add costs. Advertising, quality… Will the customer give you the higher cost that you deserve

84
Q

Strategic Alliance?

A

Expedite development of new products or technologies, Improve costs, security of supply or distribution

85
Q

Mergers?

A

Financial Synergy, Sales Synergy

86
Q

Market entry JV?

A

get into a market by using a company that knows the law, customers

87
Q

Free standing JV?

A
  • Each partner brings something to the game. Complementary skills, salesforce & technology.
88
Q

Critical Mass?

A

Companies have to combine for Pharmacy, $250 million minimum to be in business for R & D

89
Q

Problems in mergers in acquisitions?

A

: management, competition, over promising to wall street

90
Q

Reasons for Vertical Integration?

A

You can’t get to market or your getting gouged by your supplier.

91
Q

Recognition of offensive strategies?

A

Leapfrogging to next generation technology, going after rival’s most profitable market

92
Q

Defensive Strategies?

A

New products, product improvements, brand extensions

93
Q

Blue ocean strategy?

A

coming up with something where there is no competitive offering. Examples include FedEx and eBay

94
Q

First mover has advantage of?

A

pioneering image

95
Q

Fast Follower?

A

no money to convert practices, take advantage of what the first mover makes

96
Q

Factors which influence the speed of market development?

A

Is new infrastructure required, will buyers need to adopt new habits or suffer switching costs

97
Q

Rationale for international expansion?

A

Access to new customers, increased volume(economies of scale)

98
Q

Factors which influence choice of geography?

A

Do we have cultural confluence: easy to put this product into this culture because its not strange for them.
GDP, demographics, income, density, cost in particular country, exchange rates, remittable funds risks, host government policies,

99
Q

Licensing?

A
  • no guts no glory, give people right to use technology and you take royalty payment
100
Q

Franchising?

A

have a supply agreement, and you get a franchise fee

101
Q

Exporting?

A

Least risky is exporting

102
Q

FDI

A

Usually done with acquisitions

103
Q

Local vs. Global Marketing and Management choices?

A

Always prefer global arrangement because its cheaper, share ideas among different managements…. Sold through such different ways you have to use distributors

104
Q

Centralize Manufacturing?

A

Centralize - cost you less, or because the cost of the item to manufacture is 90% of it. Waste treatment plant

105
Q

De-centralize?

A
  • Customers are spread out, cost of transporting something is more valuable then the manufacturing
106
Q

Concept of patient money?

A

Several years in a country before you start making money.

107
Q

Reasons to diversify?

A

Opportunity for synergy costs or growth in sales? Allocate resources

Management Policy (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions