Management Notes

Reference Notes for Management

Which of the following is an accurate interpretation of the overall competitive strength scores

Looking for the answer to the question below related to Management? Which of the following is an accurate interpretation of the overall competitive strength scores  Options: A. High scores signal a strong competitive position and possession of a competitive advantage over companies with lower scores. B. High scores indicate that a company is a power-user … Read more

Identifying the strategic issues and problems a company faces and compiling a worry list

Looking for the answer to the question below related to Management? Identifying the strategic issues and problems a company faces and compiling a worry list  Options: A. without a precise fix on what problems/issues a company confronts, managers cannot know what the industry’s key success factors are. B. the “worry list” sets the management agenda … Read more

An entrepreneur is best described as

An entrepreneur is best described as

An entrepreneur is best described as

 Options:

A. someone who works inside an existing organization and sees a new product opportunity
B. a type of intrapreneur
C. a type of research assistant
D. someone who takes risks to try to create a new enterprise
E. someone who develops a new enterprise without risks

The Correct Answer Is:

D. someone who takes risks to try to create a new enterprise

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Guides the justice approach to deciding ethical dilemmas.

Guides the justice approach to deciding ethical dilemmas.

Guides the justice approach to deciding ethical dilemmas.

 Options:

A. The individual’s best long-term interest
B. Respect for impartial standards of fairness and equity
C. Respect for society and the environment
D. Increasing profits and workplace diversity
E. Respect for the fundamental rights of human beings

The Correct Answer Is:

B. Respect for impartial standards of fairness and equity

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A much-used and potent managerial tool for determining whether a company performs

A much-used and potent managerial tool for determining whether a company performs

A much-used and potent managerial tool for determining whether a company performs

 Options:

A. competitive strength analysis.
B. activity-based costing.
C. resource cost mapping.
D. SWOT analysis.
E. benchmarking.

The Correct Answer Is:

  • E. benchmarking.

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Multinational organizations can shop from country to country and cut costs through

Title: Cost-Cutting Strategies for Multinational Organizations Introduction: Multinational organizations operate across different countries, which presents them with unique opportunities to optimize their costs. This is achieved through various means, including lower wage scales, reduced indirect costs, less stringent regulations, and favorable tax and tariff policies. In this discussion, we will delve into each option and explain why "E. all of the above" is the correct answer. A. Lower Wage Scales: One of the primary advantages for multinational organizations is the ability to tap into regions with lower wage scales. In some countries, labor costs are significantly lower than in others due to differences in living standards, currency values, and economic development. By establishing operations in countries with lower wage scales, multinationals can benefit from cost-effective labor while maintaining or even enhancing productivity. This is a crucial factor in cost-cutting strategies, as labor expenses often constitute a significant portion of a company's overall expenditures. B. Lower Indirect Costs: Indirect costs encompass a wide range of expenses that are not directly tied to production but are essential for a company's operations. These may include rent, utilities, transportation, and administrative overheads. Multinational organizations have the flexibility to choose locations where these indirect costs are lower. For instance, setting up operations in regions with affordable real estate, lower energy costs, and efficient transportation networks can substantially reduce these expenses. By strategically selecting locations, multinationals can optimize their overall cost structure. C. Less Stringent Regulations: Regulations and compliance requirements vary significantly from country to country. Some nations have more stringent labor, environmental, and safety regulations, which can lead to higher operational costs. Multinational organizations often seek out jurisdictions with business-friendly regulatory environments. By operating in countries with less stringent regulations, companies can streamline their processes, reduce compliance costs, and potentially avoid costly fines and penalties. This flexibility contributes to overall cost reduction. D. Lower Taxes and Tariffs: Taxation policies and tariff rates vary widely across different countries. Some nations offer favorable tax incentives and reduced tariff rates for businesses, encouraging foreign investment. Multinational organizations can strategically choose locations with lower tax burdens, benefiting from tax breaks, deductions, and exemptions. Additionally, favorable trade agreements and treaties can further reduce import/export duties, bolstering cost-efficiency in global operations. This financial advantage can significantly impact a company's bottom line. Why Other Options are Not Correct: A. Higher Wage Scales: Choosing locations with higher wage scales would counteract the cost-cutting efforts of multinational organizations. It would lead to increased labor expenses, undermining the goal of reducing operational costs. B. Higher Indirect Costs: Opting for locations with higher indirect costs would likewise be counterintuitive. This would escalate expenses related to rent, utilities, and other overheads, negating the cost-saving potential of international operations. C. Stringent Regulations: Operating in countries with more stringent regulations can lead to increased compliance costs and potential legal liabilities. This would not align with the goal of cost-cutting, as it would raise operational expenses. D. Higher Taxes and Tariffs: Selecting locations with higher taxes and tariffs would add unnecessary financial burdens for multinational organizations. It would diminish the cost-saving advantages that can be gained through strategic global expansion. Conclusion: In conclusion, multinational organizations have the unique ability to shop from country to country and implement a range of strategies to cut costs. These strategies include leveraging lower wage scales, reducing indirect costs, operating in regions with less stringent regulations, and benefiting from favorable tax and tariff policies. By strategically selecting locations that offer these advantages, multinational organizations can optimize their cost structures and enhance their competitive edge in the global market. This comprehensive approach to cost-cutting is essential for long-term success in today's highly competitive business environment

Multinational organizations can shop from country to country and cut costs through

 Options:

A. lower wage scales.
B. lower indirect costs.
C. less stringent regulations.
D. lower taxes and tariffs.
E. all of the above.

The Correct Answer Is:

E. all of the above.

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Firms with few competitive resources are more likely

Firms with few competitive resources are more likely

Firms with few competitive resources are more likely

 Options:

A. not respond to competitive actions.
B. respond quickly to competitive actions.
C. delay responding to competitive actions.
D. respond to strategic actions, but not to tactical actions.

The Correct Answer Is:

C. delay responding to competitive actions.

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Companies can improve the triple bottom line with sustainability by minimizing what four things

Companies can improve the triple bottom line with sustainability by minimizing what four things

Companies can improve the triple bottom line with sustainability by minimizing what four things

 Options:

A. raw material, energy, water, and waste
B. raw material, transport, manufacture, and disposal
C. people, planet, profit, and pollution
D. pollution, carbon footprint, profit, and people
E. lawsuits, advertisements, coupons, and layoffs

The Correct Answer Is:

A. raw material, energy, water, and waste

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Which choice below best describes the counter seasonal product demand option?

Which choice below best describes the counter seasonal product demand option?

Which choice below best describes the counter seasonal product demand option?

 Options:

A. producing such products as lawnmowers and sunglasses during the winter
B. developing a mix of products that smoothes out their demands
C. lowering prices when demand is slack
D. using subcontractors only when demand is excessive
E. the breaking of the aggregate plan into finer levels of detail

The Correct Answer Is:

B. developing a mix of products that smoothes out their demands

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A greenfield venture in a foreign market is one

Looking for the answer to the question below related to Management? A greenfield venture in a foreign market is one  Options: A. where the company creates a wholly owned subsidiary business by setting up all aspects of the operation upon entering the market from the ground up. B. where foreign facilities and marketing strategies are … Read more

Which sourcing strategy is particularly common when the products being sourced are commodities

Which sourcing strategy is particularly common when the products being sourced are commodities

Which sourcing strategy is particularly common when the products being sourced are commodities

 Options:

A. few suppliers
B. many suppliers
C. keiretsu
D. vertical integration
E. virtual companies

The Correct Answer Is:

  • B. many suppliers

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Which of the following phrases best describes product focus

Which of the following phrases best describes product focus

Which of the following phrases best describes product focus

 Options:

A. low volume, high variety
B. Finished goods are usually made to order.
C. Processes are designed to perform a wide variety of activities.
D. high fixed costs, low variable costs
E. high inventory

The Correct Answer Is:

D. high fixed costs, low variable costs

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