p.1
Challenges of Globalization for Managers
What is the main theme of Chapter 4?
Managing in the Global Environment.
p.1
Importance of Perception in Management
What does the phrase 'Because learning changes everything' imply?
The importance of continuous learning in management.
p.5
Forces in the Global Environment
What is the primary focus of Figure 4.1?
Forces in the Global Environment.
p.18
Forces in the Global Environment
What are Political and Legal Forces in the General Environment?
Outcomes of changes in laws and regulations.
p.10
Role of Suppliers in the Task Environment
Who are considered customers in the task environment?
Individuals and groups that buy the goods and services produced by an organization.
p.12
Competitive Dynamics and Barriers to Entry
What are barriers to entry?
Factors that make it difficult and costly for an organization to enter a particular task environment or industry.
p.6
Forces in the Global Environment
What is the Task Environment?
A set of forces and conditions that originate with suppliers, distributors, customers, and competitors, affecting an organization’s ability to obtain inputs and dispose of outputs.
p.7
Role of Suppliers in the Task Environment
How do changes in suppliers affect managers?
They produce opportunities and threats that managers must respond to.
p.16
Impact of National Cultures on Management
How do sociocultural forces impact management?
They influence organizational behavior and decision-making based on societal values and norms.
p.7
Role of Suppliers in the Task Environment
What can a supplier's bargaining position be?
It may be either strong or weak.
p.13
Competitive Dynamics and Barriers to Entry
What is the focus of Figure 4.2?
Competition and Barriers to Entry.
p.4
Global Task vs. General Environment
What defines global organizations?
Organizations that operate in more than one country.
p.11
Competitive Dynamics and Barriers to Entry
Who are potential competitors?
Organizations that are not currently in a task environment but could enter if they choose.
p.7
Role of Suppliers in the Task Environment
What is the role of suppliers in the task environment?
They provide an organization with the input resources needed to produce goods and services.
p.12
Competitive Dynamics and Barriers to Entry
What are economies of scale?
Cost advantages associated with large operations.
p.12
Competitive Dynamics and Barriers to Entry
How does brand loyalty affect competition?
It creates a preference for the products of existing organizations, making it harder for new entrants.
p.6
Forces in the Global Environment
What does the General Environment encompass?
Global, economic, technological, socio-cultural, demographic, political, and legal forces that affect an organization and its task environment.
p.6
Forces in the Global Environment
How do the General Environment and Task Environment differ?
The Task Environment focuses on specific forces affecting daily operations, while the General Environment includes broader global forces.
p.21
Global Outsourcing Strategies
How have declining trade barriers changed the way managers operate?
They now allow managers to both buy and sell goods and services globally.
p.18
Forces in the Global Environment
What is one outcome of deregulation of industries?
Changes in laws and regulations affecting business operations.
What are sociocultural forces?
Pressures emanating from the social structure of a country or society or from the national culture.
What does social structure refer to?
The traditional system of relationships established between people and groups in a society.
p.12
Competitive Dynamics and Barriers to Entry
What role do government regulations play in market entry?
They can act as a barrier to entry at both the industry and country level.
What are technological forces?
Outcomes of changes in the technology that managers use to design, produce, or distribute goods and services.
p.19
Forces in the Global Environment
What is political capital in the context of globalization?
The influence and power that political systems and institutions have in shaping global interactions.
p.20
Global Outsourcing Strategies
What is a tariff?
A tax that a government imposes on imported or, occasionally, exported goods.
p.9
Role of Suppliers in the Task Environment
How can powerful distributors threaten an organization?
By demanding that the organization reduce the prices of its goods and services.
p.3
Challenges of Globalization for Managers
What is a key reason the global environment is becoming more open and competitive?
The process of globalization.
p.3
Challenges of Globalization for Managers
What do managers face due to globalization?
Increased opportunities, complexities, challenges, and threats.
p.14
Economic, Technological, and Sociocultural Forces
How do low unemployment rates affect consumer spending?
They give people more money to spend.
p.14
Economic, Technological, and Sociocultural Forces
What is the impact of good economic conditions?
They generally lead to increased consumer spending and economic growth.
p.2
Forces in the Global Environment
What are the main forces in the global task environment?
Competitors, suppliers, customers, and regulatory agencies.
p.22
Global Outsourcing Strategies
What access do retail businesses in Canada and the United States have due to NAFTA?
Unrestricted access to the Mexican marketplace.
p.9
Role of Suppliers in the Task Environment
What are distributors in the context of the task environment?
Organizations that help other organizations sell their goods or services to customers.
p.4
Forces in the Global Environment
What are two characteristics of the global environment?
Uncertainty and unpredictability.
p.10
Role of Suppliers in the Task Environment
Why is identifying an organization’s main customers important?
It is crucial to organizational and managerial success.
p.18
Forces in the Global Environment
What is an increased emphasis on environmental protection?
A focus on laws and regulations aimed at preserving the environment.
What is national culture?
A set of values that a society considers important and the norms of behavior that are approved or sanctioned in that society.
What is technology in the context of management?
The combination of skills and equipment that managers use in designing, producing, and distributing goods and services.
p.22
Global Outsourcing Strategies
What barriers has NAFTA removed?
Most barriers on the cross-border flow of resources.
p.19
Forces in the Global Environment
What does resource capital refer to in globalization?
The natural resources and raw materials that are essential for economic activities.
p.8
Role of Suppliers in the Task Environment
What is one opportunity managers have at a global level regarding suppliers?
To buy products from foreign suppliers or to manufacture their own products abroad.
p.11
Competitive Dynamics and Barriers to Entry
What is a common result of high rivalry among competitors?
Price competition, which can lead to falling prices and reduced customer revenues and profits.
p.4
Forces in the Global Environment
What is the global environment?
A set of global forces and conditions that operate beyond an organization’s boundaries.
p.4
Challenges of Globalization for Managers
How does the global environment affect managers?
It affects their ability to acquire and utilize resources.
p.3
Impact of National Cultures on Management
Why is it important for managers to be sensitive to national cultures?
Because national cultures differ and affect political and social systems.
p.19
Challenges of Globalization for Managers
What is globalization?
The integration and connection of economic, political, and social systems across countries, cultures, or geographical regions.
p.3
Forces in the Global Environment
What role do regional trade associations play in globalization?
They influence the political and social systems of nations.
p.19
Forces in the Global Environment
What role does human capital play in globalization?
It is one of the forces that drive globalization.
p.20
Global Outsourcing Strategies
What does the Free-Trade Doctrine propose?
That if each country specializes in the production of goods and services it can produce most efficiently, it will make the best use of global resources.
p.9
Role of Suppliers in the Task Environment
What happens if distributors become too large and powerful?
They can control customers’ access to goods and services.
p.14
Economic, Technological, and Sociocultural Forces
What are some examples of economic forces?
Interest rates, inflation, unemployment, and economic growth.
p.2
Importance of Perception in Management
Why is the ability to perceive, interpret, and respond to the organizational environment crucial for managerial success?
It enables managers to make informed decisions and adapt to changes effectively.
p.2
Global Task vs. General Environment
What is the difference between the global task environment and the global general environment?
The global task environment includes specific external factors that directly affect an organization, while the global general environment encompasses broader societal forces.
p.7
Role of Suppliers in the Task Environment
What factors can influence a supplier's bargaining position?
The nature, number, or types of suppliers.
p.2
Challenges of Globalization for Managers
What challenges do forces in the global general environment present to managers?
They include economic fluctuations, technological changes, and sociocultural shifts that can impact organizational strategy.
p.11
Competitive Dynamics and Barriers to Entry
What are competitors in the task environment?
Organizations that produce goods and services similar to a particular organization’s goods and services.
What are demographic forces?
Outcomes of changes in or changing attitudes toward the characteristics of a population, such as age, gender, ethnic origin, race, sexual orientation, or social class.
p.18
Forces in the Global Environment
What does privatization of organizations refer to?
The transfer of ownership from public to private sector.
p.10
Role of Suppliers in the Task Environment
What is essential for producing goods and services that meet customer needs?
Identifying the main customers of the organization.
p.22
Global Outsourcing Strategies
What is the primary aim of the North American Free Trade Agreement (NAFTA)?
To abolish tariffs on 99% of goods traded between Mexico, Canada, and the United States.
p.19
Forces in the Global Environment
What are the specific forces that drive globalization?
Human capital, financial capital, resource capital, and political capital.
p.19
Forces in the Global Environment
What is meant by financial capital in the context of globalization?
It refers to the funds and investments that facilitate global economic integration.
p.21
Global Outsourcing Strategies
What effect have declining trade barriers had on managers?
They have opened enormous opportunities for managers to expand the market for their goods and services.
p.8
Global Outsourcing Strategies
What is global outsourcing?
The purchase or production of inputs or final products from overseas suppliers to lower costs and improve product quality or design.
What demographic trend is most industrialized nations experiencing?
The aging of their populations.
Which characteristics are considered under demographic forces?
Age, gender, ethnic origin, race, sexual orientation, or social class.
p.7
Role of Suppliers in the Task Environment
What are some examples of inputs provided by suppliers?
Raw materials, component parts, and labor (employees).
p.3
Forces in the Global Environment
What effect do falling trade barriers have on nations?
They impact the political and social systems of nations.
p.14
Economic, Technological, and Sociocultural Forces
What is the difference between good and poor economic conditions?
Good conditions promote spending and growth, while poor conditions can lead to reduced spending and economic decline.
p.19
Challenges of Globalization for Managers
How does globalization affect nations?
Nations become increasingly interdependent and similar.
