Jairo Tobon

BUAD 455

Answers for Chapter 9-12 Quizzes

1. A relatively quick way to move into an international area is through _______________________.

E. Acquisitions

2. A good way to minimize risk and experiment with a specific product is _________________.
B. Exporting

3. The green-field development is a recommended method for international entry when a

________________________

E. Company does not want to purchase another company’s problems along with its assets

4. Coined by Peter Drucker, the term "production sharing" is commonly referred to as

_______________________.

E. Outsourcing

5. What is the difference between licensing and franchising?

A. Licensing firm grants rights to another firm in the host country to produce and/or sell a

product

6. All of the following statements describe what a multinational corporation (MNC) is EXCEPT:
D. MNC is a company that engages in any combination of activities from

exporting/importing to full-scale manufacturing, in foreign countries

7. Key drivers for strategic fit between international strategic alliance partners include all of the
following EXCEPT ________.

D. Partners must be mutually independent for achieving clear and realistic objectives

8. In which stage of international development can the organization establish its own sales company
to control marketing and to eliminate the middlemen in the organization?

C. Stage II

9. In which stage of international development is the organization primarily a domestic company that
exports its products through local distributors and dealers in a foreign country?
 B. Stage I

10. In which stage of international development can the organization now establish its manufacturing
facilities, sales offices, and service offices in a key country?

B. Stage IV

11. In which stage of international development does the organization typically establish a local

operating division or company in the host country?

C. Stage II

12. In which stage of international development is the organization a global industry that
denationalizes its operations when it establishes operations in a key country(s)?

C. Stage V

13. All of the following assessments are correct statements about the stages of international
development EXCEPT ________.

A. An international company always follows the five steps of international development to

initiate the export process out of a country

14. What happens at Stage 2 during the process of international development?

C. Success at the earlier stage leads to establishment of a sales company with offices in

the foreign countries

15. Facts that should be considered before implementing strategy for international employment
includes all of the following EXCEPT that ___________________.

A. Of those employees who stayed for the duration of their assignment performed better

than expected

16. One of the common mistakes resulting in early returning home of the expatriated employees is
________________.

B. Failing to educate the person about the customs and values in other countries

17. A set of recommendations to improve the entire expatriation process include all of the following
EXCEPT_______________________.

B. Assigning sponsors and mentors in home country and not in new country

18. Stealth expatriates are those managers or workers who are _______________________.
 A. Cross-Border commuters who go on many business trips and temporary assignments

around the world

19. One of the fastest growing MNCs in the recent years who tries to hire managers with local
experience is________________.

B. Uber

20. The three most widely used techniques for international performance evaluation are
___________________________.

D. ROI, historical comparisons, and budget analyses

21. ROI can cause problems when it is applied to international operations due to all of the following
reasons EXCEPT ___________________________.

E. Stealth Expatriates

22. To deal with different accounting systems throughout the world, the London-based International
Accounting Standards developed the ________________________.

D. International Financial Reporting Standards (IFRS)

23. The three common categories of standards for products and services are
_________________________.

D. Safety/environmental, energy efficiency, and testing procedures

24. Existing standards for products and services are drafted by different bodies for different countries.
All of the following identify correctly the bodies and countries EXCEPT

_________________________.

A. IEC in the United States

25. All of the following statements related to a global MNC are correct EXCEPT _______________.
D. A global MNC needs loose controls over its foreign units

CHAPTER 10

1. Which of the following is NOT a long-term reversal in organizational growth known as a "stall

pointcategory"?

E. Strategic Implementation

2. All of the following are true statements about strategy implementation EXCEPT ________.
 B. An organization that formulates a strategy should never implement the strategy in the

organization

3. All of the following problems occur when an organization implements a strategic change EXCEPT

________.

C. Involved employees had sufficient capabilities to perform a job function

4. Which of the following represents the first company to manufacture and sell a new product or

service in the marketplace?

E. First Mover

5. A(n) ________ usually occurs in the organization's current market position as a tactic that is used

to shield itself against an attack by a rival organization in the marketplace.

E. Defensive Tactic

6. Which of the following offensive methods does an organization implement when the organization

mimics a competitor's pricing, promotion, and distribution channel strategies to gain a

competitive advantage in an industry?

D. Frontal Assault

7. Some of the methods used to attack a competitor's position include all of the following EXCEPT

___________________.

D. Increased retaliation

8. Which of the following is an offensive method an organization can implement when it initiates

small, intermittent assaults on competitors in different market segments in the external

environment?

C. Guerrilla Warfare

9. Instead of a continual and extensive resource-expensive attack on a competitor, a firm or

business may choose to "hit and run." This tactic is referred to as _________________.

E. Guerrilla Warfare

10. All of the following are forms of synergy that occur in an organization EXCEPT ________.

A. Old Business Creation

11. All of the following are forms of synergy that occur in an organization EXCEPT ________.
 E. Individualized Strategies

12. In which stage of the organizational life cycle is the popular strategy horizontal and vertical

growth?

D. Stage II: Growth

13. In which stage of the organizational life cycle is the likely structure functional management?

D. Stage II: Growth

14. In which stage of the organizational life cycle is the dismemberment of structure?

B. Stage V: Death

15. Which of the following describes how an organization grows, develops, and declines in the

marketplace?

D. Organizational Life Cycle

16. A virtual organization is composed of ___________________________________.

B. Collaborations linked by constantly changing networks

17. Which of the following represents an organization that eliminates its in-house business functions

and outsources many business activities in the organization?

A. Virtual Organization

18. The third and final phase of matrix development involves a true _______________________.

B. Dual Authority Structure

19. Which of the following is the redesign of a business process to increase profitability, improve

service, and manage time in an organization?

A. Reengineering

20. In which step of the Six Sigma process does an organization investigate the process to determine

what is wrong with the production or the manufacturing process?

E. Step III: Analyze

21. In which step of the Six Sigma process does an organization develop controls to monitor and

eliminate defects that occur on the production line?

E. Step V: Establish
22. In which step of the Six Sigma process does the organization seek to discover the exact current

performance of a production line or manufacturing process in the organization?

D. Step II: Measure

23. Which of the following new job design techniques permits an employee to perform a variety of

jobs in theworkplace?

D. Job Rotation

24. Which of the following terms describes an industry that occurs when each country's industry is a

separate entity compared to the same industry in another country?

A. Multidomestic

25. Which of the following promotes centralized-decision making and enables a company to introduce

and manage similar products around the world?

D. Product-Group Structure

CHAPTER 11

1. Which of the following emphasizes program usage to ensure employees align interests and

attitudes with new strategies in an organization?

A. Leading

2. Which of the following focuses on the selection and use of employees in an organization?

A. Staffing

3. All of the following are true about strategies to hire and train employees EXCEPT ________.

E. A new strategy or policy never relates to new human resource management priorities

and different uses of personnel in the workplace

4. Which of the following traits is important when staffing managerial positions at MNCs regardless

of their country of origin or host country assignment?

B. International Orientation

5. All of the following are true statements about retrenchment strategies EXCEPT ________.

E. Effective downsizing strategies do not include investing in the employees that remain

after a layoff or termination order

6. Executive managers who implement succession plans utilize best practices that include all of the

following EXCEPT ________.

A. Executive characteristics never influence strategic outcomes at an organization

7. Which of the following provides managers a unique interview to accommodate the specific

employment needs to find a suitable employee to fill a position at a large organization?

C. Assessment Center

8. All of the following are true statements about downsizing strategies EXCEPT ________.

E. Downsizing might result in more, rather than less, productivity

9. Which of the following downsizing guidelines is useful when the organization explains why it plans

to downsize operations and what the goal of a downsize strategy is in an organization?

A. Communicate the reasons for actions

10. Which of the following downsizing guidelines represents why the organization should NOT simply

eliminate all expenses when it implements a downsizing strategy but instead explains why the

organization should continue to hire, grow, and develop operations when the organization

downsizes its operations?

C. Plan for long-run efficiencies

11. Which of the following guidelines an organization uses to downsize operations is useful when the

organization should stop functions that fail to add value in an organization?

A. Eliminate unnecessary work instead of making across-the-board cuts

12. Which of the following downsizing guidelines is useful to an organization that chooses to

implement an outsourcing strategy rather than a vertical integration strategy in the workplace?

D. Contract out work that others can do cheaper

13. Which of the following downsizing guidelines is useful when the organization understands that

employees perform different job functions after it downsizes and the organization drafts new job

specifications, employee standards, appraisal techniques, and compensation packages.

A. Invest in the remaining employees

14. In which of the following downsizing guidelines should a manager consider other staffing

alternatives because the organization cannot transfer employees and there are no other

employment positions available to offer employees in the workplace?

A. Develop value-added jobs to balance out job elimination

15. All of the following are true statements about communication in an international expansion

scenario EXCEPT ________.

D. Thai managers feel that 360-performance appraisals are a positive contribution because

the communication in Thailand goes from the top to the bottom of an organization

16. Which of the following is referred to as a key to the effective management of change?

B. Communication

17. Which of the following is useful because its purpose can reveal what can occur, by whom, the

specific time frame, and expected results of a strategy in an organization?

A. Action Plan

18. Which of the following techniques encourage participative decision making through shared goal

setting at all organizational levels and bases its performance assessments on stated objectives?

D. Management by Objective (MBO)

19. In which essential ingredient of TQM has a focus on empowerment because it provides the

employees a wide latitude on their journey to achieve organizational goals?

B. New Work Relationships based on trust and teamwork

20. In which essential ingredient in TQM is to focus on how the organization can please the

consumer?

B. An intense focus on customer satisfaction

21. In which essential ingredient of TQM can the organization quantify operational functions and

ensure that employees can interpret the data?

C. Accurate measurement of every critical variable in a company’s operations

22. In which essential element of TQM does the organization focus on monitoring the operations on a

consistent basis to enhance products and services in the workplace?

D. Continuous improvement of products and services

23. The action plan to develop a new advertising program should include all of the following EXCEPT

________________.

D. Select a program to implement a particular strategy

24. The MBO process does not involve ________________________.

D. An intense focus on customer satisfaction objectives

25. TQM's essential ingredients include all of the following EXCEPT ___________________.

E. Establishing and communicating organizational objectives

CHAPTER 12

1. The amount of money a new owner can take out of the firm without harming the business is

____________?

E. Free Cash Flow

2. The amount of money an organization can generate before the cost of finances and taxes in an

organization is ______________?

E. Operating Cash Flow

3. ______________ is a steering control that is a retailer's cost of goods sold divided by the

average value of its inventories?

B. Inventory Turnover Ratio

4. __________________ is the method an organization can use to allocate indirect and fixed costs

to products that it bases from value-added activities in the workplace?

B. Activity Based Costing (ABC)

5. The result of dividing net income before taxes by the total amount invested in the organization is

______________?

B. Return on Investment

6. Which of the following is a control that focuses on the actual performance results in an

organization?

A. Output Controls

7. Which of the following responsibility centers are profits NOT considered because sales

departments have very limited influence over the cost of products?

 B. Revenue Center

8. The manufacturing facility compute costs for its operations based on historical data in the

___________ center?

B. Standard Cost

9. In the __________ center resources are measured in dollars without consideration to the service

and product costs?

A. Expense

10. The responsibility center where the performance in an organization is measured in terms of the

difference between revenues and expenditures is the ___________ center?

E. Profit

11. The _________ center measures performance in terms of the difference between its resources

and its products in the workplace?

D. Investment

12. Which of the following steps in the benchmarking process can the strategic manager identify the

area or process that has the potential to gain a competitive advantage in the marketplace?

D. Step I: Identify the area or process to be examined at the organization

13. In ________________________, the organization develops strategies to change existing

endeavors to enhance the organizational performance in the workplace?

C. Step V: Develop tactical programs to close performance gaps in the organization

14. The strategic manager identifies the area or process that has the potential to gain a competitive

advantage in the marketplace in __________________ of the benchmark process.

B. Step IV: Calculate the differences among the organization’s performance measurements

to compare those differences in an organization against the performance of primary

competitors in the marketplace to determine where and why those differences exist

between organizations in the marketplace

15. _____________________ in the benchmarking process the organization implements new

endeavors and compares performance to primary competitors in the marketplace?

 B. Step VI: Implement the programs and then compare the resulting new measurements

with those results of primary competitors in the marketplace.

16. ___________ is known as a technology that uses electronic tags to improve supply chain

efficiency in theworkplace?

B. Radio Frequency Identification (RFID)

17. Tailored to match measurements with rewards, the __________ compensates managers when

the objectives are set over multiple years in the workplace?

A. Long-Term Evaluation Method

18. Tailored to match measurements with rewards, the _____________ measures and rewards the

performance of top SBUs managers when performance factors vary in the individual SBUs in an

organization?

A. Weighed Factor Method

19. Which of the following methods in an organization excludes developmental expenses as a

separate expense from the current operational expenses?

A. Strategic-Funds Method

20. ______________ occurs when an organization reviews each responsibility center or functional

unit as a separate entity from the organization?

B. Suboptimization

21. _____________________ is a guideline for proper control used to help an organization achieve

cooperation between divisions when the organization implements a form of qualitative or

quantitativemeasures?

B. Controls should monitor only meaningful activities and results, regardless of

measurement difficulty

22. Which of the following guidelines for proper control should an organization use to monitor or

measure the steering control factors that influence performance in the organization?

C. Controls should be timely so that corrective action can be taken before it is too late

23. The guideline for proper control where an organization should monitor 20% of the factors that

determine80% of the results in the workplace is ____________________________?

 C. Control should involve only the minimum amount of information needed to give a

reliable picture of events

24. Which of the following guidelines for proper control involve activities or results that the

organization did not include in a predetermined range that cause the organization to take action?

D. Controls should aim at pinpointing exceptions

25. _______________ is a guideline for proper control that results in goal displacement when

performance outcomes are not optimum?

C. Emphasize the reward of meeting or exceeding standards rather than punishment for

failing to meet standards