Management Final Comp Exas 2010

Front 1

conceptual skills

Back 1

the ability to see the organization as a whole, understand how the different parts affect each other, and recognize how the company fits into or is affected by its environment

Front 2

controlling

Back 2

monitoring progress toward goal achievement and taking corrective action when needed

Front 3

disseminator role

Back 3

the informational role managers play when they share information with others in their departments or companies

Front 4

disturbance handler role

Back 4

the decisional role managers play when they respond to severe problems that demand immediate action

Front 5

effectiveness

Back 5

accomplishing tasks that help fulfill organizational objectives

Front 6

efficiency

Back 6

getting work done with a minimum of effort, expense, or waste

Front 7

entrepreneur role

Back 7

the decisional role managers play when they adapt themselves, their subordinates, and their units to change

Front 8

figurehead role

Back 8

the interpersonal role managers play when they perform ceremonial duties

Front 9

first-line managers

Back 9

managers who train and supervise the performance of nonmanagerial employees who are directly responsible for producing the company’s products or services

Front 10

human skills

Back 10

the ability to work well with others

Front 11

leader role

Back 11

the interpersonal role managers play when they motivate and encourage workers to accomplish organizational objectives

Front 12

leading

Back 12

inspiring and motivating workers to work hard to achieve organizational goals

Front 13

liaison role

Back 13

the interpersonal role managers play when they deal with people outside their units

Front 14

management

Back 14

getting work done through others

Front 15

middle managers

Back 15

managers responsible for setting objectives consistent with top management’s goals and for planning and implementing subunit strategies for achieving these objectives

Front 16

monitor role

Back 16

the informational role managers play when they scan their environment for information

Front 17

motivation to manage

Back 17

an assessment of how enthusiastic employees are about managing the work of others

Front 18

negotiator role

Back 18

the decisional role managers play when they negotiate schedules, projects, goals, outcomes, resources, and employee raises

Front 19

organizing

Back 19

deciding where decisions will be made, who will do what jobs and tasks, and who will work for whom

Front 20

planning (management functions)

Back 20

determining organizational goals and a means for achieving them

Front 21

resource allocator role

Back 21

the decisional role managers play when they decide who gets what resources

Front 22

spokesperson role

Back 22

the informational role managers play when they share information with people outside their departments or companies

Front 23

team leaders

Back 23

managers responsible for facilitating team activities toward accomplishing a goal

Front 24

technical skills

Back 24

the specialized procedures, techniques, and knowledge required to get the job done

Front 25

top managers

Back 25

executives responsible for the overall direction of the organization

Front 26

bureaucracy

Back 26

the exercise of control on the basis of knowledge, expertise, or experience

Front 27

closed systems

Back 27

systems that can sustain themselves without interacting with their environments

Front 28

contingency approach

Back 28

holds that there are no universal management theories and that the most effective management theory or idea depends on the kinds of problems or situations that managers are facing at a particular time and place

Front 29

gantt chart

Back 29

a graphic chart that shows which tasks must be completed at which times in order to complete a project or task

Front 30

integrative conflict resolution

Back 30

an approach to dealing with conflict in which both parties deal with the conflict by indicating their preferences and then working together to find an alternative that meets the needs of both

Front 31

motion study

Back 31

breaking each task or job into its separate motions and then eliminating those that are unnecessary or repetitive

Front 32

open systems

Back 32

systems that can sustain themselves only by interacting with their environments, on which they depend for their survival

Front 33

organization

Back 33

a system of consciously coordinated activities or forces created by two or more people

Front 34

rate buster

Back 34

a group member whose work pace is significantly faster than the normal pace in his or her group

Front 35

scientific management

Back 35

thoroughly studying and testing different work methods to identify the best, most efficient way to complete a job

Front 36

soldiering

Back 36

when workers deliberately slow their pace or restrict their work outputs

Front 37

subsystems

Back 37

smaller systems that operate within the context of a larger system

Front 38

synergy

Back 38

when two or more subsystems working together can produce more than they can working apart

Front 39

system

Back 39

a set of interrelated elements or parts that function as a whole

Front 40

time study

Back 40

timing how long it takes good workers to complete each part of their jobs

Front 41

advocacy groups

Back 41

groups of concerned citizens who band together to try to influence the business practices of specific industries, businesses, and professions

Front 42

behavioral addition

Back 42

the process of having managers and employees perform new behaviors that are central to and symbolic of the new organizational culture that a company wants to create

Front 43

behavioral substitution

Back 43

the process of having managers and employees perform new behaviors central to the new organizational culture in place of behaviors that were central to the old organizational culture

Front 44

business confidence indices

Back 44

indices that show managers’ level of confidence about future business growth

Front 45

buyer dependence

Back 45

the degree to which a supplier relies on a buyer because of the importance of that buyer to the supplier and the difficulty of finding other buyers for its products

Front 46

cognitive maps

Back 46

graphic depictions of how managers believe environmental factors relate to possible organizational actions

Front 47

company vision

Back 47

a business’s purpose or reason for existing

Front 48

competitive analysis

Back 48

a process for monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses

Front 49

competitors

Back 49

companies in the same industry that sell similar products or services to customers

Front 50

complex environment

Back 50

an environment with many environmental factors

Front 51

consistent organizational cultures

Back 51

when a company actively defines and teaches organizational values, beliefs, and attitudes

Front 52

dynamic environment

Back 52

an environment in which the rate of change is fast

Front 53

environmental change

Back 53

the rate at which a company’s general and specific environments change

Front 54

environmental complexity

Back 54

the number of external factors in the environment that affect organizations

Front 55

environmental scanning

Back 55

searching the environment for important events or issues that might affect an organization

Front 56

external environments

Back 56

all events outside a company that have the potential to influence or affect it

Front 57

general environment

Back 57

the economic, technological, sociocultural, and political trends that indirectly affect all organizations

Front 58

industry regulation

Back 58

regulations and rules that govern the business practices and procedures of specific industries, businesses, and professions

Front 59

internal environment

Back 59

the events and trends inside an organization that affect management, employees, and organizational culture

Front 60

media advocacy

Back 60

an advocacy group tactic that involves framing issues as public issues; exposing questionable, exploitative, or unethical practices; and forcing media coverage by buying media time or creating controversy that is likely to receive extensive news coverage

Front 61

opportunistic behavior

Back 61

a transaction in which one party in the relationship benefits at the expense of the other

Front 62

organizational culture

Back 62

the values, beliefs, and attitudes shared by members of the organization

Front 63

organizational heroes

Back 63

people celebrated for their qualities and achievements within an organization

Front 64

organizational stories

Back 64

stories told by members to make sense of events and changes in an organization and to emphasize culturally consistent assumptions, decisions, and actions

Front 65

product boycott

Back 65

an advocacy group tactic that involves protesting a company’s actions by convincing consumers not to purchase its product or service

Front 66

public communications

Back 66

an advocacy group tactic that relies on voluntary participation by the news media and the advertising industry to get the advocacy group’s message out

Front 67

punctuated equilibrium theory

Back 67

a theory according to which companies go through long, simple periods of stability (equilibrium), followed by short periods of dynamic, fundamental change (revolution), and ending with a return to stability (new equilibrium)

Front 68

relationship behavior

Back 68

mutually beneficial, long-term exchanges between buyers and suppliers

Front 69

resource scarcity

Back 69

the abundance or shortage of critical organizational resources in an organization’s external environment

Front 70

simple environment

Back 70

an environment with few environmental factors

Front 71

specific environment

Back 71

the customers, competitors, suppliers, industry regulations, and advocacy groups that are unique to an industry and directly affect how a company does business

Front 72

stable environment

Back 72

an environment in which the rate of change is slow

Front 73

supplier dependence

Back 73

the degree to which a company relies on a supplier because of the importance of the supplier’s product to the company and the difficulty of finding other sources of that product

Front 74

suppliers

Back 74

companies that provide material, human, financial, and informational resources to other companies

Front 75

technology

Back 75

the knowledge, tools, and techniques used to transform input into output

Front 76

uncertainty

Back 76

extent to which managers can understand or predict which environmental changes and trends will affect their businesses

Front 77

visible artifacts

Back 77

visible signs of an organization’s culture, such as the office design and layout, company dress code, and company benefits and perks, like stock options, personal parking spaces, or the private company dining room

Front 78

accommodative strategy

Back 78

a social responsiveness strategy in which a company accepts responsibility for a problem and does all that society expects to solve that problem

Front 79

concentration of effect

Back 79

the total harm or benefit that an act produces on the average person

Front 80

conventional level of moral development

Back 80

the second level of moral development in which people make decisions that conform to societal expectations

Front 81

defensive strategy

Back 81

a social responsiveness strategy in which a company admits responsibility for a problem but does the least required to meet societal expectations

Front 82

discretionary responsibility

Back 82

the expectation that a company will voluntarily serve a social role beyond its economic, legal, and ethical responsibilities

Front 83

economic responsibility

Back 83

the expectation that a company will make a profit by producing a valued product or service

Front 84

employee shrinkage

Back 84

employee theft of company merchandise

Front 85

ethical behavior

Back 85

behavior that conforms to a society’s accepted principles of right and wrong

Front 86

ethical intensity

Back 86

the degree of concern people have about an ethical issue

Front 87

ethical responsibility

Back 87

a company’s social responsibility not to violate accepted principles of right and wrong when conducting its business

Front 88

ethics

Back 88

the set of moral principles or values that defines right and wrong for a person or group

Front 89

legal responsibility

Back 89

a company’s social responsibility to obey society’s laws and regulations

Front 90

magnitude of consequences

Back 90

the total harm or benefit derived from an ethical decision

Front 91

overt integrity test

Back 91

a written test that estimates job applicants’ honesty by directly asking them what they think or feel about theft or about punishment of unethical behaviors

Front 92

personal aggression

Back 92

hostile or aggressive behavior toward others

Front 93

personality-based integrity test

Back 93

a written test that indirectly estimates job applicants’ honesty by measuring psychological traits, such as dependability and conscientiousness

Front 94

political deviance

Back 94

using one’s influence to harm others in the company

Front 95

postconventional level of moral development

Back 95

the third level of moral development in which people make decisions based on internalized principles

Front 96

preconventional level of moral development

Back 96

the first level of moral development in which people make decisions based on selfish reasons

Front 97

primary stakeholder

Back 97

any group on which an organization relies for its long term survival

Front 98

principle of distributive justice

Back 98

an ethical principle that holds that you should never take any action that harms the least fortunate among us: the poor, the uneducated, the unemployed

Front 99

principle of government requirements

Back 99

an ethical principle that holds that you should never take any action that violates the law, for the law represents the minimal moral standard

Front 100

principle of individual rights

Back 100

an ethical principle that holds that you should never take any action that infringes on others’ agreed-upon rights

Front 101

principle of long-term self-interest

Back 101

an ethical principle that holds that you should never take any action that is not in your or your organization’s long-term self-interest

Front 102

principle of personal virtue

Back 102

an ethical principle that holds that you should never do anything that is not honest, open, and truthful and that you would not be glad to see reported in the newspapers or on TV

Front 103

principle of religious injunctions

Back 103

an ethical principle that holds that you should never take any action that is not kind and that does not build a sense of community

Front 104

principle of utilitarian benefits

Back 104

an ethical principle that holds that you should never take any action that does not result in greater good for society

Front 105

proactive strategy

Back 105

a social responsiveness strategy in which a company anticipates responsibility for a problem before it occurs and does more than society expects to address the problem

Front 106

probability of effect

Back 106

the chance that something will happen and then harm others

Front 107

production deviance

Back 107

unethical behavior that hurts the quality and quantity of work produced

Front 108

property deviance

Back 108

unethical behavior that hurts the quality and quantity of work produced

Front 109

proximity of effect

Back 109

the social, psychological, cultural, or physical distance between a decision maker and those affected by his or her decisions

Front 110

reactive strategy

Back 110

a social responsiveness strategy in which a company does less than society expects

Front 111

secondary stakeholder

Back 111

any group that can influence or be influenced by a company and can affect public perceptions about its socially responsible behavior

Front 112

shareholder model

Back 112

a view of social responsibility that holds that an organization’s overriding goal should be to maximize profit for the benefit of shareholders

Front 113

social consensus

Back 113

agreement on whether behavior is bad or good

Front 114

social responsibility

Back 114

a business’s obligation to pursue policies, make decisions, and take actions that benefit society

Front 115

social responsiveness

Back 115

refers to a company’s strategy for responding to stakeholders’ economic, legal, ethical, or discretionary expectations concerning social responsibility

Front 116

stakeholder model

Back 116

a theory of corporate responsibility that holds that management’s most important responsibility, long-term survival, is achieved by satisfying the interests of multiple corporate stakeholders

Front 117

stakeholders

Back 117

persons or groups with a “stake” or legitimate interest in a company’s actions

Front 118

temporal immediacy

Back 118

the time between an act and the consequences the act produces

Front 119

whistleblowing

Back 119

reporting others’ ethics violations to management or legal authorities

Front 120

workplace deviance

Back 120

unethical behavior that violates organizational norms about right and wrong

Front 121

A-type conflict (affective conflict)

Back 121

disagreement that focuses on individuals or personal issues

Front 122

absolute comparisons

Back 122

a process in which each decision criterion is compared to a standard or ranked on its own merits

Front 123

action plan

Back 123

the specific steps, people, and resources needed to accomplish a goal

Front 124

brainstorming

Back 124

a decision-making method in which group members build on each others’ ideas to generate as many alternative solutions as possible

Front 125

budgeting

Back 125

quantitative planning through which managers decide how to allocate available money to best accomplish company goals

Front 126

C-type confict (cognitive conflict)

Back 126

disagreement that focuses on problem- and issue-related differences of opinion

Front 127

decision criteria

Back 127

the standards used to guide judgments and decisions

Front 128

decision making

Back 128

the process of choosing a solution from available alternatives

Front 129

delphi technique

Back 129

a decision-making method in which members of a panel of experts respond to questions and to each other until reaching agreement on an issue

Front 130

devil’s advocacy

Back 130

a decision-making method in which an individual or a subgroup is assigned the role of a critic

Front 131

distal goals

Back 131

long-term or primary goals

Front 132

electronic brainstorming

Back 132

a decision-making method in which group members use computers to build on each others’ ideas and generate many alternative solutions

Front 133

evaluation apprehension

Back 133

fear of what others will think of your ideas

Front 134

goal commitment

Back 134

the determination to achieve a goal

Front 135

groupthink

Back 135

a barrier to good decision making caused by pressure within a group for members to agree with each other

Front 136

management by objectives (MBO)

Back 136

a four-step process in which managers and employees discuss and select goals, develop tactical plans, and meet regularly to review progress toward goal accomplishment

Front 137

maximizing

Back 137

choosing the best Alternative

Front 138

mission

Back 138

a statement of a company’s overall goal that unifies company-wide efforts toward its vision, stretches and challenges the organization, and possesses a finish line and a time frame

Front 139

nominal group technique

Back 139

a decision-making method that begins and ends by having group members quietly write down and evaluate ideas to be shared with the group

Front 140

operational plans

Back 140

day-to-day plans, developed and implemented by lower-level managers, for producing or delivering the organization’s products and services over a 30-day to six-month period

Front 141

options-based planning

Back 141

maintaining flexibility by making small, simultaneous investments in many alternative plans

Front 142

planning

Back 142

choosing a goal and developing a strategy to achieve that goal

Front 143

policy

Back 143

a standing plan that indicates the general course of action that should be taken in response to a particular event or situation

Front 144

problem

Back 144

a gap between a desired state and an existing state

Front 145

procedure

Back 145

a standing plan that indicates the specific steps that should be taken in response to a particular event

Front 146

production blocking

Back 146

a disadvantage of face-to-face brainstorming in which a group member must wait to share an idea because another member is presenting an idea

Front 147

proximal goals

Back 147

short-term goals or Subgoals

Front 148

rational decision making

Back 148

a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions

Front 149

relative comparisons

Back 149

a process in which each criterion is compared directly to every other criterion

Front 150

rules and regulations

Back 150

standing plans that describe how a particular action should be performed or what must happen or not happen in response to a particular event

Front 151

S.M.A.R.T. goals

Back 151

goals that are specific, measurable, attainable, realistic, and timely

Front 152

satisficing

Back 152

choosing a “good enough” Alternative

Front 153

single-use plans

Back 153

plans
that cover unique,one-time-only events

Front 154

slack resources

Back 154

a cushion of extra resources that can be used with options-based planning to adapt to unanticipated change, problems, or opportunities

Front 155

standing plans

Back 155

plans used repeatedly to handle frequently recurring events

Front 156

strategic plans

Back 156

overall company plans that clarify how the company will serve customers and position itself against competitors over the next two to five years

Front 157

tactical plans

Back 157

plans created and implemented by middle managers that specify how the company will use resources, budgets, and people over the next six months to two years to accomplish specific goals within its mission

Front 158

vision

Back 158

a statement of a company’s purpose or reason for existing

Front 159

acquisition

Back 159

the purchase of a company by another company

Front 160

analyzers

Back 160

those who adopt an adaptive strategy that seeks to minimize risk and maximize profits by following or imitating the proven successes of prospectors

Front 161

attack

Back 161

a competitive move designed to reduce a rival’s market share or profits

Front 162

bargaining power of buyers

Back 162

a measure of the influence that customers have on a firm’s prices

Front 163

bargaining power of suppliers

Back 163

a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs

Front 164

BCG matrix

Back 164

a portfolio strategy, developed by the Boston Consulting Group, that categorizes a corporation’s businesses by growth rate and relative market share, and helps managers decide how to invest corporate funds

Front 165

cash cow

Back 165

a company with a large share of a slow-growing market

Front 166

character of the rivalry

Back 166

a measure of the intensity of competitive behavior between companies in an industry

Front 167

competitive advantage

Back 167

providing greater value for customers than competitors can

Front 168

competitive inertia

Back 168

a reluctance to change strategies or competitive practices that have been successful in the past

Front 169

core capabilities

Back 169

the internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs

Front 170

core firms

Back 170

the central companies in a strategic Group

Front 171

corporate-level strategy

Back 171

the overall organizational strategy that addresses the question “What business or businesses are we in or should we be in?”

Front 172

cost leadership

Back 172

the positioning strategy of producing a product or service of acceptable quality at consistently lower production costs than competitors can, so that the firm can offer the product or service at the lowest price in the industry

Front 173

defenders

Back 173

those who adopt an adaptive strategy aimed at defending strategic positions by seeking moderate, steady growth and by offering a limited range of high-quality products and services to a well-defined set of customers

Front 174

differentiation

Back 174

the positioning strategy of providing a product or service that is sufficiently different from competitors’ offerings that customers are willing to pay a premium price for it

Front 175

direct competition

Back 175

the rivalry between two companies that offer similar products and services, acknowledge each other as rivals, and act and react to each other’s strategic actions

Front 176

distinctive competence

Back 176

what a company can make, do, or perform better than its competitors

Front 177

diversification

Back 177

a strategy for reducing risk by owning a variety of items (stocks or, in the case of a corporation, types of businesses) so that the failure of one stock or one business does not doom the entire portfolio

Front 178

dog

Back 178

a company with a small share of a slow-growing market

Front 179

firm-level strategy

Back 179

a corporate strategy that addresses the question “How should we compete against a particular firm?”

Front 180

focus strategy

Back 180

the positioning strategy of using cost leadership or differentiation to produce a specialized product or service for a limited, specially targeted group of customers in a particular geographic region or market segment

Front 181

grand strategy

Back 181

a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use

Front 182

growth strategy

Back 182

a strategy that focuses on increasing profits, revenues, market share, or the number of places in which the company does business

Front 183

imperfectly imitable resources

Back 183

resources that are impossible or extremely costly or difficult for other firms to duplicate

Front 184

industry-level strategy

Back 184

a corporate strategy that addresses the question “How should we compete in this industry?”

Front 185

market commonality

Back 185

the degree to which two companies have overlapping products, services, or customers in multiple markets

Front 186

nonsubstitutable resource

Back 186

a resource that produces value or competitive advantage and has no equivalent substitutes or replacements

Front 187

portfolio strategy

Back 187

a corporate-level strategy that minimizes risk by diversifying investment among various businesses or product lines

Front 188

prospectors

Back 188

those who adopt an adaptive strategy that seeks fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market

Front 189

question mark

Back 189

a company with a small share of a fast-growing market

Front 190

rare resources

Back 190

resources that are not controlled or possessed by many competing firms

Front 191

reactors

Back 191

those who take an adaptive strategy of not following a consistent strategy, but instead reacting to changes in the external environment after they occur

Front 192

recovery

Back 192

the strategic actions taken after retrenchment to return to a growth strategy

Front 193

related diversification

Back 193

creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures

Front 194

resource similarity

Back 194

the extent to which a competitor has similar amounts and kinds of resources

Front 195

resources

Back 195

the assets, capabilities, processes, information, and knowledge that an organization uses to improve its effectiveness and efficiency, create and sustain competitive advantage, and fulfill a need or solve a problem

Front 196

response

Back 196

a competitive countermove, prompted by a rival’s attack, to defend or improve a company’s market share or profit

Front 197

retrenchment strategy

Back 197

a strategy that focuses on turning around very poor company performance by shrinking the size or scope of the business

Front 198

secondary firms

Back 198

firms in a strategic group that follow strategies related to but somewhat different from those of core firms

Front 199

situational (SWOT) analysis

Back 199

an assessment of the strengths and weaknesses in an organization’s internal environment and the opportunities and threats in its external environment

Front 200

stability strategy

Back 200

a strategy that focuses on improving the way in which the company sells the same products or services to the same customers

Front 201

star

Back 201

a company with a large share of a fast-growing Market

Front 202

strategic dissonance

Back 202

a discrepancy between a company’s intended strategy and the strategic actions managers take when implementing that strategy

Front 203

strategic group

Back 203

a group of companies within an industry that top managers choose to compare, evaluate, and benchmark strategic threats and opportunities

Front 204

strategic reference points

Back 204

the strategic targets managers use to measure whether a firm has developed the core competencies it needs to achieve a sustainable competitive advantage

Front 205

sustainable competitive advantage

Back 205

a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate

Front 206

threat of new entrants

Back 206

a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry

Front 207

threat of substitute products or services

Back 207

a measure of the ease with which customers can find substitutes for an industry’s products or services

Front 208

unrelated diversification

Back 208

creating or acquiring companies in completely unrelated businesses

Front 209

valuable resource

Back 209

a resource that allows companies to improve efficiency and effectiveness

Front 210

change agent

Back 210

the person formally in charge of guiding a change effort

Front 211

change forces

Back 211

forces that produce differences in the form, quality, or condition of an organization over time

Front 212

change intervention

Back 212

the process used to get workers and managers to change their behavior and work practices

Front 213

coercion

Back 213

using formal power and authority to force others to change

Front 214

compression approach to innovation

Back 214

an approach to innovation that assumes that incremental innovation can be planned using a series of steps and that compressing those steps can speed innovation

Front 215

creative work environments

Back 215

workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged

Front 216

creativity

Back 216

the production of novel and useful ideas

Front 217

design competition

Back 217

competition between old and new technologies to establish a new technological standard or dominant design

Front 218

design iteration

Back 218

a cycle of repetition in which a company tests a prototype of a new product or service, improves on that design, and then builds and tests the improved prototype

Front 219

discontinuous change

Back 219

the phase of a technology cycle characterized by technological substitution and design competition

Front 220

dominant design

Back 220

a new technological design or process that becomes the accepted market standard

Front 221

experiential approach to innovation

Back 221

an approach to innovation that assumes a highly uncertain environment and uses intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding

Front 222

flow

Back 222

a psychological state of effortlessness, in which you become completely absorbed in what you’re doing and time seems to pass quickly

Front 223

General Electric workout

Back 223

a three-day meeting in which managers and employees from different levels and parts of an organization quickly generate and act on solutions to specific business problems

Front 224

generational change

Back 224

change based on incremental improvements to a dominant technological design such that the improved technology is fully backward compatible with the older technology

Front 225

incremental change

Back 225

the phase of a technology cycle in which companies innovate by lowering costs and improving the functioning and performance of the dominant technological design

Front 226

innovation streams

Back 226

patterns of innovation over time that can create sustainable competitive advantage

Front 227

milestones

Back 227

formal project review points used to assess progress and performance

Front 228

multifunctional teams

Back 228

work teams composed of people from different departments

Front 229

organizational change

Back 229

a difference in the form, quality, or condition of an organization over time

Front 230

organizational decline

Back 230

a large decrease in organizational performance that occurs when companies don’t anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival

Front 231

organizational development

Back 231

a philosophy and collection of planned change interventions designed to improve an organization’s long-term health and performance

Front 232

organizational innovation

Back 232

the successful implementation of creative ideas in organizations

Front 233

product prototype

Back 233

a full-scale, working model that is being tested for design, function, and reliability

Front 234

refreezing

Back 234

supporting and reinforcing new changes so that they stick

Front 235

resistance forces

Back 235

forces that support the existing state of conditions in organizations

Front 236

resistance to change

Back 236

opposition to change resulting from self-interest, misunderstanding and distrust, or a general intolerance for change

Front 237

results-driven change

Back 237

change created quickly by focusing on the measurement and improvement of results

Front 238

S-curve pattern of innovation

Back 238

a pattern of technological innovation characterized by slow initial progress, then rapid progress, and then slow progress again as a technology matures and reaches its limits

Front 239

technological discontinuity

Back 239

a scientific advance or a unique combination of existing technologies creates a significant breakthrough in performance or function

Front 240

technological lockout

Back 240

when a new dominant design (i.e., a significantly better technology) prevents a company from competitively selling its products or makes it difficult to do so

Front 241

technological substitution

Back 241

the purchase of new technologies to replace older ones

Front 242

technology cycle

Back 242

a cycle that begins with the birth of a new technology and ends when that technology reaches its limits and is replaced by a newer, substantially better technology

Front 243

testing

Back 243

the systematic comparison of different product designs or design iterations

Front 244

unfreezing

Back 244

getting the people affected by change to believe that change is needed

Front 245

Asia-Pacific Economic Cooperation (APEC)

Back 245

a regional trade agreement between Australia, Canada, Chile, the People’s Republic of China, Hong Kong, Japan, Mexico, New Zealand, Papua New Guinea, Peru, Russia, South Korea, Taiwan, the United States, and all members of ASEAN, except Cambodia, Lao PDR, and Myanmar

Front 246

Association of Southeast Asian Nations (ASEAN)

Back 246

a regional trade agreement between Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam

Front 247

Central America Free Trade Agreement (CAFTA)

Back 247

a regional trade agreement between Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States

Front 248

cooperative contract

Back 248

an agreement in which a foreign business owner pays a company a fee for the right to conduct that business in his or her country

Front 249

customs classification

Back 249

a classification assigned to imported products by government officials that affects the size of the tariff and imposition of import quotas

Front 250

direct foreign investment

Back 250

a method of investment in which a company builds a new business or buys an existing business in a foreign country

Front 251

expatriate

Back 251

someone who lives and works outside his or her native country

Front 252

exporting

Back 252

selling domestically produced products to customers in foreign countries

Front 253

franchise

Back 253

a collection of networked firms in which the manufacturer or marketer of a product or service, the franchisor, licenses the entire business to another person or organization, the franchisee

Front 254

General Agreement on Tariffs and Trade (GATT)

Back 254

a worldwide trade agreement that reduced and eliminated tariffs, limited government subsidies, and established protections for intellectual property

Front 255

global business

Back 255

the buying and selling of goods and services by people from different countries

Front 256

global consistency

Back 256

when a multinational company has offices, manufacturing plants, and distribution facilities in different countries and runs them all using the same rules, guidelines, policies, and procedures

Front 257

global new ventures

Back 257

new companies that are founded with an active global strategy and have sales, employees, and financing in different countries

Front 258

government import standard

Back 258

a standard ostensibly established to protect the health and safety of citizens but, in reality, often used to restrict imports

Front 259

joint venture

Back 259

a strategic alliance in which two existing companies collaborate to form a third, independent company

Front 260

licensing

Back 260

an agreement in which a domestic company, the licensor, receives royalty payments for allowing another company, the licensee, to produce the licensor’s product, sell its service, or use its brand name in a specified foreign market

Front 261

local adaptation

Back 261

when a multinational company modifies its rules, guidelines, policies, and procedures to adapt to differences in foreign customers, governments, and regulatory agencies

Front 262

Maastricht Treaty of Europe

Back 262

a regional trade agreement between most European countries

Front 263

multinational corporation

Back 263

a corporation that owns businesses in two or more countries

Front 264

national culture

Back 264

the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country

Front 265

nontariff barriers

Back 265

nontax methods of increasing the cost or reducing the volume of imported goods

Front 266

North American Free Trade Agreement (NAFTA)

Back 266

a regional trade agreement between the United States, Canada, and Mexico

Front 267

policy uncertainty

Back 267

the risk associated with changes in laws and government policies that directly affect the way foreign companies conduct business

Front 268

political uncertainty

Back 268

the risk of major changes in political regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events

Front 269

protectionism

Back 269

a government’s use of trade barriers to shield domestic companies and their workers from foreign competition

Front 270

purchasing power

Back 270

a comparison of the relative cost of a standard set of goods and services in different countries

Front 271

quota

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a limit on the number or volume of imported products

Front 272

regional trading zones

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areas in which tariff and nontariff barriers on trade between countries are reduced or eliminated

Front 273

strategic alliance

Back 273

an agreement in which companies combine key resources, costs, risk, technology, and people

Front 274

subsidies

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government loans, grants, and tax deferments given to domestic companies to protect them from foreign competition

Front 275

tariff

Back 275

a direct tax on imported goods

Front 276

trade barriers

Back 276

government-imposed regulations that increase the cost and restrict the number of imported goods

Front 277

Union of South American Nations (USAN)

Back 277

a regional trade agreement between Argentina, Brazil, Paraguay, Uruguay, Venezuela, Bolivia, Colombia, Ecuador, Peru, Guyana, Suriname, and Chile

Front 278

voluntary export restraints

Back 278

voluntarily imposed limits on the number or volume of products exported to a particular country

Front 279

wholly owned affiliates

Back 279

foreign offices, facilities, and manufacturing plants that are 100 percent owned by the parent company

Front 280

World Trade Organization (WTO)

Back 280

as the successor to GATT, the only international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably, and freely as possible.