MAN 4600 – Chapter 5 – Flashcards
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Samsung outsources the majority of its production processes.
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FALSE
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Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.
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TRUE
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An ethnocentric predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.
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FALSE
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A company with a geocentric predisposition tries to integrate a global systems approach to decision making.
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TRUE
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A firm with an ethnocentric predisposition may find it difficult to implement a geocentric strategy, because it is unaccustomed to using global integration.
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TRUE
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Renault made a number of strategic decisions that dramatically changed the way it did business, such as building a factory in Brazil to produce its successful Megane sedan.
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TRUE
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The difficulty of managing global organizations, as in the case of some local subsidiaries that want more decentralization and others that want less is one of the factors helping to facilitate the need for MNCs to develop unique strategies for different cultures.
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TRUE
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Advertising in the United States should be indirect and subtle, emphasizing group references, shared responsibility and interpersonal trust.
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FALSE
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The cultural differences of Samsung and Apple highlight how, within the same industry, two companies can achieve similar levels of success despite opposing strategies.
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TRUE
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In some cases, both the product and the marketing message are similar worldwide; this is particularly true for high-end products.
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TRUE
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Manufacturing internally has given Apple the ability to maintain oversight of its employee's wages and hours, allowing the company to largely avoid public relations nightmares and accusations of human rights violations.
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FALSE
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In America, authority is diffused throughout the bureaucratic system and personal responsibility is hard to pin down.
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TRUE
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When internationalization began to gain momentum, there was a hope that many of the procedures and strategies that worked so well at home could be adopted overseas without modification.
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TRUE
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In Japan, compensation levels are determined by using skill, ability, and performance.
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FALSE
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In Japan, people often are hired based on what they can do for the firm in the short run, because many of them eventually will quit or be downsized.
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FALSE
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In Japan, unions are regarded as adversaries of management; in the United States, unions and managers are seen as partners.
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FALSE
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Many U.S. and European multinationals find that doing business in the PRC can be a long, grueling process that often results in failure.
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TRUE
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A major cultural difference between the PRC and many Western countries is the issue of time.
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TRUE
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Russians view contracts as binding only if they continue to be mutually beneficial.
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TRUE
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Americans may admire or be fascinated with people who disagree with them; in contrast, the French are more attracted to those who agree with them.
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FALSE
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Four distinct predispositions, which help determine the specific steps an MNC will follow, are:
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Ethnocentric, polycentric, regiocentric and geocentric
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A company with a(n) _____ predisposition allows the values and interests of the parent company to guide the strategic decisions.
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Ethnocentric
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Firms with a _____ predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.
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Polycentric
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A(n) _____ predisposition leads a firm to try to blend its own interests with those of its subsidiaries on a regional basis.
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Regiocentric
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The companies constituting 50 percent of the global market share in the smartphone industry are:
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Apple and Samsung
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Research reveals that far from addressing regional differentiation issues, many MNCs are committed to a(n) _____, which is a belief that one worldwide approach to doing business is the key to both efficiency and effectiveness.
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Globalization imperative
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Which of the following correctly matches a firm's predisposition with its strategy?
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Polycentric-national responsiveness
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Which of the following correctly matches a firm's predisposition with its culture?
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Geocentric-global
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An MNC with an ethnocentric predisposition:
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Takes back its profits to its home country
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Which of the following is likely to be the strategic predisposition of a company that has a "top-down" system of governance?
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Ethnocentric
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All of the following factors facilitate the need for international firms to develop unique strategies for different cultures except:
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A continual demand by local customers for global products and in the case of globally recognized products such as McDonald's hamburgers and Sony televisions
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Advertising in _____ is predominantly emotional, dramatic and symbolic.
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France
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Which of the following countries prefer advertising that is factual and rational?
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Germany
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The typical broad, self-deprecating _____ commercial amuses by mocking both the advertiser and consumer.
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British
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In which of the following countries are spots viewed as cultural events and reviewed as if they were literature or films?
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France
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According to the text, value can be added to the marketing approach by carefully tailoring the advertising message to the particular culture. Therefore, advertising in China should:
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Emphasize group references and interpersonal trust
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_____ is the tendency to view the world through one's own eyes and perspectives.
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Parochialism
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_____ can be a difficult problem for many international managers, who often come from advanced economies and believe that their state-of-the-art knowledge is more than adequate to handle the challenges of doing business in less developed countries.
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Parochialism
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If businesspeople in ______ commit themselves to a date in the future and fail to show up, they feel no guilt or concern because they believe they have no control over time in the first place.
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Arab countries
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Unlike Apple, Samsung:
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Offers a wide array of products at multiple price points
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If a U.S. manager acted the same way with a British manager as he/she does with a Chinese manager, the U.S. manager will be exhibiting a behavioral process referred to as:
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Simplification
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In regard to the cultural dimension, "What is the person's relationship to other people?" the dominant characteristic for American managers is:
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Individualist
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In regard to the cultural dimension, "What is the conception of space?" the dominant characteristic for American managers is:
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Private
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Malaysia has what is called a _____.
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High-context culture
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The United States has what is called a _____.
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Low-context culture
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All of the following are characteristics of the Malaysian culture except:
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Relationships between people are relatively short-lived and individuals tend to not feel a deep personal involvement with each other
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All of the following are characteristics of low-context cultures except:
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Insiders and outsiders are easily distinguishable and outsiders typically do not gain entrance to the inner group
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Which of the following does not pertain to similarities in managerial activities in the United States and Korea?
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As organizational size increased, commitment proportionally increased
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The five criteria in the acronym HAIRL stands for:
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Helicopter, analysis, imagination, reality and leadership
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Identify the country in which Shell's operating company prioritized the HAIRL appraisal system by putting Leadership at the top of the list and Helicopter at the bottom.
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Germany
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In Great Britain, Ireland, and the United States, managers value their individualism and are motivated by all of the following opportunities except:
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Profit-sharing plans
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Which of the following selections accurately reflects recruitment and selection processes in Japan?
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Prepare for a long process; ensure that your firm is "here to stay"; and develop trusting relationship with recruits
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Which of the following selections accurately reflects recruitment and selection processes in Mexico?
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Use of expatriates sparingly; recruit home country nationals at U.S. colleges
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Which of the following selections accurately reflects labor relations in China?
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Tap large pool of labor cities; lax labor laws may become more stringent
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Which of the following selections accurately reflects labor relations in Germany?
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Be prepared for high wages and short work week; expect high productivity from unionized workers
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Which of the following selections accurately reflects compensation practices in China?
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Use technical training as reward; recognize egalitarian values; and use "more work more pay" with caution
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The People's Republic of China had a long tradition of isolation until Deng Xiaoping opened his country to the world in:
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1979
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Experienced travelers report that the primary criterion for doing business in China is:
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Technical competence
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In China, the term guanxi means:
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Good connections
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In practice, guanxi resembles:
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Nepotism
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Which of the following are behavioral practices that affect doing business in China?
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The Chinese are proud of their economic accomplishments and want to share these feelings with outsiders
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Which of the following is a traditional behavior of Chinese businesspeople?
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The Chinese place values and principles above money and expediency
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_____ like exclusive arrangements and often negotiate with just one firm at a time.
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Russians
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The word namaste means "greetings to you" in:
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India
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When doing business in India, all of the following behaviors are appropriate except:
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Being "fashionably late" for meetings
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Many in the United States believe that it is more difficult to get along with the _____ than with other Europeans.
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French
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In _____, one's social class is very important and these classes include the aristocracy, the upper bourgeoisie, the upper-middle bourgeoisie, the middle, the lower middle and the lower.
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France
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Identify an incorrect statement about doing business in Arab countries.
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The person in charge of a group has the right to take credit for the group's efforts
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Most French organizations tend to be
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Highly centralized and have rigid structures
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An important cultural contrast between Arabs and Americans is that of emotion and logic. Arabs often act based on _____; in contrast, those in an Anglo culture are taught to act on _____.
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Emotion; logic
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Describe the differences between the four strategic dispositions. What is the principle advantage of each disposition?
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In the ethnocentric predisposition, a nationalistic philosophy of management is adopted, whereby the values and interests of the parent company guide the strategic decisions. The primary advantages are economies of scale and a unified global image. The polycentric predisposition is a philosophy of management whereby strategic decisions are tailored to suit the cultures of the countries where the MNC operates. The primary advantage is local responsiveness and enhanced customer loyalty in each market. The regiocentric predisposition is similar, except for the fact that the firm tries to blend its own interests with those of its subsidiaries on a regional basis. This approach combines the benefits of cultural adaptation with some potential for economies of scale. The geocentric predisposition philosophy attempts to integrate a global systems approach to decision making. Although the most complex, this approach is most effective in integrating globalization and national responsiveness.
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Describe the difference between parochialism and simplification.
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Parochialism is the tendency to view the world through one's own eyes and perspectives. This can be a difficult problem for many international managers, who often come from advanced economies and believe that their state-of-the-art knowledge is more than adequate to handle the challenges of doing business in less developed countries. In addition, many of these managers have a parochial point of view fostered by their background. Simplification is the process of exhibiting the same orientation toward different cultural groups. For example, the way in which a U.S. manager interacts with a British manager is the same way in which he or she behaves when doing business with an Asian executive. Moreover, this orientation reflects one's basic culture.
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What guidelines should MNCs must be aware of while doing business in China?
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Outsiders doing business in China must be aware that Chinese people will typically argue that they have the guanxi to get a job done, when in reality they may or may not have the necessary connections. When dealing with the Chinese, one must realize they are a collective society in which people pride themselves on being members of a group. This is in sharp contrast to the situation in the United States and other Western countries, where individualism is highly prized. The Chinese place values and principles above money and expediency. In negotiations, reciprocity is important. If the Chinese give concessions, they expect some in return. Additionally, it is common to find them slowing down negotiations to take advantage of Westerners desiring to conclude arrangements as quickly as possible. The objective of this tactic is to extract further concessions
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What guidelines have to be followed by MNCs in order to tap the potential business opportunities in Russia?
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MNCs have to build personal relationships with partners in Russia, where business laws and contracts do have much relevance. Because the rules of business have changed so much in recent years, it pays to have a local Russian consultant working with the company. In order to get something done in Russia, it often takes months of waiting. Those who are in a hurry to make a quick deal are often sorely disappointed. In dealing effectively with Russian partners, it is helpful to get information about the company, its management hierarchy, and how it typically does business. This information helps ensure the chances for good relations because it gives the Western partner a basis for establishing a meaningful relationship.
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Discuss the cultural highlights to be kept in mind regarding the French while doing business in France.
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Many in the United States believe that it is more difficult to get along with the French than with other Europeans. This feeling probably reflects the French culture, which is markedly different from that in the United States. In France, one's social class is very important. Social interactions are affected by class stereotypes, and, during their lifetime, most French people do not encounter much change in social status. The French are accustomed to conflict and during negotiations accept that some positions are irreconcilable and must be accepted as such. Americans, on the other hand, believe that conflicts can be resolved and that, if both parties make an extra effort and have a spirit of compromise, there will be no irreconcilable differences. Moreover, the French often determine a person's trustworthiness based on his or her firsthand evaluation of the individual's character. Most French organizations tend to be highly centralized and have rigid structures. As a result, it usually takes longer to carry out decisions. Because this arrangement is quite different from the more decentralized, flattened organizations in the United States, both middle and lower-level U.S. expatriate managers who work in French subsidiaries often find bureaucratic red tape a source of considerable frustration.
