Midterm Review

Chapter4
International management- pursuing organizational objectives in international & cross-cultural settings.
Internationalization process: licensing, exporting, local warehousing & selling, local assembly & packaging, joint ventures, direct foreign investments.
Global company- a multinational organization centrally managed from a specific country.
Transnational company- a futuristic model of a global, decentralized network with no distinct national identity.

Cultural intelligence- ability to intercept & act in appropriate ways in unfamiliar cultural surroundings.

Ethnocentric, polycentric & geocentric attitudes- assumption that the home country's personnel & ways of doing things are best; assumption that the managers in the host country knows best how to run their own operations; world-oriented view that draws on the best talent from around the globe respectively.
Culture- the values, beliefs and symbols that foster patterned behavior of a population.
High & Low context-context cultures- body language/nonverbal; verbal respectively.
Individualistic cultures- cultures that emphasize individual rights, roles & achievements.
Collectivist cultures- cultures that emphasize duty & loyalty to collective goals & achievements.
Monochronic & polychronic time-Comparative management- concept of time as a straight line broken into standard units(everyone on the same clock); time as flexible, elastic respectively.


Culture shock- negative feelings brought on by an expectations-reality mismatch.
Cross-culture training- guided experience that helps people live & work successfully in foreign cultures.






Chapter5
Corporate social responsibility- idea that business has social obligations above and beyond making a profit.
Caroll's Global CSR Pyramid:economic responsibility(profits), legal responsibility(obey law), ethical responsibility(be ethical), philanthropy(be a good global citizen).
The role of business in society: classical economic (solely to make profits for shareholders) and socioeconomic models (bigger responsibility).
Stakeholder audit- identifying all parties that might be affected by the organization.
Iron law of responsibility- those who do not use power in a socially responsible way will eventually lose it.
Reactive social responsibility-denying responsibility & resisting change.
Defensive social responsibility-resisting additional responsibilities with legal & public relations tactics.
Accommodative social responsibility strategy- assuming additional responsibilities in response to pressure.
Proactive social responsibility-taking the initiative with new programs that serve as models for the industry
Altruism-unselfish devotion to the interests of others.
Enlightened self-interest-business ultimately helping itself by helping to solve societal problems.
Corporate philanthropy- charitable donation of company resources.
Ethics-study of moral obligation involving right vs. wrong.
Values-abstract ideals that shape one's thinking & behavior.
Instrumental value-enduring belief in a certain way of behaving.
Terminal value-enduring belief in the attainment of a certain end-state.
Amoral managers-managers who are neither moral nor immoral, but ethically lazy.

Ethical advocate-ethics specialist who plays a role in top-management decision making.
Whistle blowing-reporting perceived unethical organizational practices to outside authorities.







Chapter6
Planning-coping with uncertainty by formulating courses of action to achieve specified results.
State uncertainty-unpredictable environment.
Effect uncertainty-unpredictable impacts of environmental change.
Response uncertainty-unpredictable consequences of decisions.
Organization response to uncertainty: defenders, prospectors, analyzers, reactors.
Plan-objective +action statement.
Mission statement is the focal point for the entire planning process.
Strategic planning-long terms goals(1-10yrs)
Intermediate planning-contributions of subunits with allocated resources(6mths-2yrs)
Operational planning-how specific tasks can be achieved with available resources(1wk-1yr)
Planning horizon-elapsed time between planning and execution.
Objective-commitment to achieve a measurable result within a specified period.
80/20 principle-minor causes, inputs, eeforts tend to produce majority results, outputs, rewards (Pareto analysis- Jospeh Duran).
Management by objectives (MBO)-comprehensive management system based on measurable & participatively set objecives.
MBO cycle:setting objectives, developing action plans, periodic review, performance appraisal.
Project-a temporary endeavor undertaken to achieve a particulat aim (conceptualization>planning>execution>termination).
Roles of prject managers: implementer, entrepreneur, politician, friend, marketer, coach.
Guidelines: projects are schedule-driven and result-oriented; big picture & little details are equally importany; project planning is necessary; managers know the motivational power of a deadline.
Gantt chart-graph scheduling technique used in production operations.
Program evaluation & review technique (PERT)-graphical sequencing & scheduling tool for complex projects.
Critical path-most time consuming route through a PERT network.
Break-even point-
Fixed & variable costs-
Contribution margin- selling price per unit minus variable cost per unit.


Chapter7
Strategic management- seeking a competitively superior organization-environment fit.
Strategy-integrated, externally oriented perception of how to achieve the organization's mission. Synergy-concept that the whole is greater than the sum of it parts (1+1=3)
Differentiation-buyer perceives unique and superior value in a product.
Business ecosystem-economic community of organizations and all their stakeholders.
Grand strategy-how an organization's mission will be accomplished.
Situational analysis-finding an organization's niche by performing SWOT analysis
Strategic management process: formulation of grand strategy->formulation of strategic plans->implementation of strategic plans-> strategic control.
Capability profile-identifying the organization's strengths & weaknesses.
Reengineering-redesigning of the entire business cycle for greater strategic speed.
Strategic implementation & control:
Forecasts-predictions, projections, or estimates of future situations.
Types of forecasts: event outcome (outcome of highly probable future events); event timing (when a given outcome will occur); time series (estimates future values in a statistical sequence).
Forecasting techniques: informed judgment, scenario analysis, surveys & trend analysis.
Scenario analysis- prepearing written descriptions of eually likely future situations.
Longitude & Cross-sectional scenarios- describes how the future will evolve from the present and how future situations at a given point in time respectively.
Trend analysis- hypothetical extentsion of a past series of events into the future.