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MGMT 370 EXAM 2
MGMT 370 EXAM 2
29
Management
Undergraduate 3
03/03/2012

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Cards

Term
What is culture shock?
Definition
The disorientaiton and stress associated with being in a foreign environment
Term
Why do firms choose to pursue a global strategy?
Definition

Pressure to reduce costs

Universal need

Presence of competitors

Term
What are the 4 or 5 modes of market entry in overseas markets?
Definition

Franchising

Licensing

Exporting

Joint Venture

Wholly Owned Subsidiary

Term
What are the advantages/disadvantage of Franchising?
Definition

A: Lower development costs, Lower political risk

 

D: Loss of control over quality

Term
What are the advantages/disadvantages of Licensing?
Definition

A: Lower development costs, Lower political risk

 

D: Loss of control over technology

Term
What are the advantages/disadvantages of Exporting?
Definition

A: Consistent with pure global strategy, Scale economies

 

D: No low-costs sites, high transportation costs, tariff barriers

Term
What are the advantages/disadvantages of a Joint Venture?
Definition

A: Local knowledge, Share costs and risk, May be the only option

 

D: Loss of control over technology, Conflict between partners

Term
What are the advantages/disadvantages of a Wholly Owned Subsidiary?
Definition

A: Maintains control over technology, Maintains control over operations

 

D: High cost, High risk

Term
What is Franchising?
Definition

When the company sells limited rights to use its brand name to franchisees in return for a lump-sum payment and a share of the franchisee's profits

 

-Primarily used for service companies

 

i.e. McDonald's, Auntie Anne's

Term
What is Exporting?
Definition
When a company manufactures a product in one location and then exports it to other nations
Term
What is Licensing?
Definition
When a licensee buys the rights to manufacture a company's product in its own country for a negotiated fee (typically royalities per units sold)
Term
What is a Joint Venture?
Definition
A contractual agreement that joins two parties in order to run a business. All parties share profits & losses of enterprise.
Term
What is a Wholly Owned Subsidiary?
Definition
An independent company owned by the parent corporation, most costly and risky
Term
What is an expatriates?
Definition
Parent-company nationals who are sent to work at a foreign subsidiary
Term
What is an inpatriate?
Definition
A foreign national brought in to work at the parent company
Term
What are some of the differences in business practices across cultures?
Definition
Meetings, Workaholic schedules, E-mail, Fast-trackers, Feedback
Term
What contributes to effective management of culture shock?
Definition
Being sensitive to surroundings, including social nroms/customs, and being readily able to adjust their behavior to such circumstances
Term

An organizational chart shows _________.

 

Span of control is ___________.

Definition

who reports to whom.

 

the number of individuals who report to a manger.

Term
Differentiation  =
Definition

Specialization

Division of Labor

Term
Integration = 
Definition

Coordination

Collaboration

Communication

Term
A succesful organization is both...
Definition
differntiated AND integrated
Term
Current trends show that more organizations are...(flat/horizontal OR tall/vertical)?
Definition
FLAT/HORIZONTAL
Term
Centralized vs. Decentralized
Definition

Centralized = Upper management makes most decisions, little delegation, often vertical

 

Decentralized = Authoirty is delegated throughout organization, often horizontal

Term
What is a mechanistic organization?
Definition
Form that seeks to maximize internal efficiency
Term
What is organic structure?
Definition
An organizational form that emphasizes flexibility
Term
What is Total Quality Management?
Definition
Supports customer satisfaction through high-quality goods and services
Term
What is ISO 9001?
Definition
Quality standards to improve total quality in all businesses for the benefit of producers/consumers, developed by Internationl Organization for Standardization
Term
What is just-in-time?
Definition
"Pull" system where products are only made when needed
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