Question 1

A financial budget is a perfect example of an output control.

Accepted Answer

A financial budget is an example of a financial control, specifically a type of planning tool, rather than an output control. Output controls focus on measuring results such as productivity or product quality after tasks are completed.

Question 2

Companies that are _____ take a middle ground between being prospectors and defenders.

Accepted Answer

Analyzers take a middle ground between being prospectors and defenders as they balance innovation and stability. They imitate the successful practices of competitors while also investing in their own research and development.

Question 3

Former General Electric CEO Jack Welch was well known for regularly meeting one-on-one with all senior managers and business unit heads.Welch was practicing _____ control.

Accepted Answer

Interpersonal control involves direct interaction between a manager and subordinates, which is what Welch was doing by regularly meeting with senior managers and business unit heads. Intrapersonal control refers to self-regulation, bureaucratic control refers to control through rules and procedures, and output and input control focus on measuring results and inputs rather than direct interaction.

Question 4

Tacit knowledge is easier to communicate than explicit knowledge.

Accepted Answer

Tacit knowledge is knowledge that is difficult to articulate or transfer to another person, whereas explicit knowledge refers to information that can be easily communicated and written down. Therefore, explicit knowledge is easier to communicate than tacit knowledge.

Question 5

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

The statement mentions that Hershey Corporation has expanded and extended its business in a careful manner, avoiding undue risks, which aligns with the characteristics of an analyzer type of organization.

Question 6

A lamp manufacturing company has a written,ten-step process that describes how to put together its best-selling table lamp.This is an example of _____.

Accepted Answer

The written, ten-step process is an explicit knowledge, as it can be written down and documented.

Question 7

The president of a small company makes a point to touch base with every employee each day; this is an example of an interpersonal control.

Accepted Answer

This is an example of interpersonal control as the president is utilizing personal communication to monitor and regulate employee behavior.

Question 8

Organizational change in a business is almost always most effective when pushed from the bottom by the company's rank-and-file employees.

Accepted Answer

Organizational change is often more effective when it is supported and pushed by top management, as they have the authority and resources to implement changes across the entire organization. Bottom-up change can contribute to innovation and adaptability but may face challenges in implementation without top-level support.

Question 9

When R&D discoveries in the United States operations of Anadarko Petroleum Corporation can easily be communicated to and accepted by its operations in Ghana,it is an example of Anadarko's absorptive capacity.

Accepted Answer

Anadarko Petroleum Corporation's ability to easily communicate and apply R&D discoveries from its United States operations to its operations in Ghana demonstrates its absorptive capacity.

Question 10

Smithfield Foods Company,the world's largest pork producer,has set the clear organizational goal of getting 10 cents profit for each pound of its processed pork products that is sold.This is an example of an output control and measurement.

Accepted Answer

The goal of getting 10 cents profit for each pound of processed pork products sold is a clear output goal that can be measured to see if it is being achieved. This is an example of output control and measurement where the focus is on the results or outputs of the organization's activities.

Question 11

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

When the workforce fully accepts and internalizes the norms and values of the organizational culture, it can become a powerful control mechanism that shapes employee behavior, decision-making, and ultimately, the success of the organization.

Question 12

An organizational initiative that aims to limit defects or problems to 3.4 per million is a(n)

Accepted Answer

The initiative described is Six Sigma, a quality management approach aimed at limiting defects or problems to 3.4 per million opportunities. Six Sigma is based on statistical analysis and aims to reduce variability and improve quality in organizational processes.

Question 13

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 14

CEOs who rise internally within the company,but who have followed a nontraditional path to the executive suite, (e.g.,,Nancy McKinstry,the CEO of Dutch publishing company Wolters Kluwer NV)are referred to as "outside-insiders."

Accepted Answer

CEOs who rise internally within the company, regardless of their path, are considered insiders. "Outside-insiders" typically refers to those who have external experience but are hired internally.

Question 15

A key output metric for some global businesses is market share,or the percentage of the business in a certain market that is captured by a product or service the organization provides.

Accepted Answer

Market share is a commonly used output metric for global businesses, as it helps to evaluate the performance of a product or service within a specific market.

Question 16

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 17

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, which emphasizes the importance of considering the interests of all groups that have a stake in a company's operations, not just shareholders.

Question 18

For global companies that take more of a "shareholder" approach to strategy formation,corporate social responsibility (CSR)ir probably the most important output control of all.

Accepted Answer

For global companies that prioritize shareholder value, other output control measures, such as financial performance metrics, may be more important than CSR.

Question 19

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 is an example of an operational plan because it is a specific action that Walmart will take in the next six months to achieve a broader goal or objective. The decision to buy from lower-priced Chinese manufacturers is a tactical choice that aligns with Walmart's strategic goal of lowering costs and offering competitive pricing to customers.

Question 20

A(n)_____ plan for Best Buy might be to build and open 50 new stores in the United States and Canada within the next two-and-one-half years.

Accepted Answer

The answer of A(n)_____ plan for Best Buy might be...

Quiz 7: Entry Strategies in Global Business