OrgChem- Chap17 1 Chapter 17 Aromatic Substitution Reactions.
Chap17 GM6e TIF
Transcript of Chap17 GM6e TIF
-
8/21/2019 Chap17 GM6e TIF
1/21
Global Marketing, 6e(Keegan/Green)
Chapter 17 Leadership, Organization, and Corporate Social Responsibility
1) Unilever Group Chief Executive Patrick Cescau wanted to reconnect the company with its
heritage of sustainability and concern for the environment !his and other values reflect
Unilever"s philosophy of #doing well by doing good#$nswer% !&UE
'iff% ( Page &ef% 1*
() 'uring his years as chief executive of GE+ ,ack -elch discovered that many employees
resisted his ideas about the need to globali.e the company
$nswer% !&UE
'iff% ( Page &ef% 1/
0) $t companies with a global orientation+ the best person for top executive positions is generally
considered to be a person born in the headuarters country
$nswer% 2$34E'iff% ( Page &ef% 1/
$$C45% &eflective !hinking
6) $lthough PepsiCo is faced with weak demand in the United 4tates+ the snack7and7beverage
giant depends on its fast7growing international division$nswer% !&UE
'iff% ( Page &ef% 18
$$C45% &eflective !hinking
) $ccording to 9amel and Prahalad+ the most successful business leaders are those who view
their organi.ations as a #portfolio of businesses#$nswer% 2$34E'iff% ( Page &ef% (:
$$C45% &eflective !hinking
*) $ccording to 9amel and Prahalad+ the most successful business leaders are those who view
their organi.ations as a #portfolio of competencies#
$nswer% !&UE
'iff% ( Page &ef% (:$$C45% &eflective !hinking
;) $ 5ra.ilian+ Carlos Ghosn+ and executive in the company+ was reuired to move aggressivelyto cut costs and make drastic changes in
-
8/21/2019 Chap17 GM6e TIF
2/21
/) PepsiCo"s fast growing international division reported snack sales to be particularly strong in
?exico and &ussia
$nswer% !&UE'iff% ( Page &ef% 18
$$C45% &eflective !hinking
8) Even companies with years of experience competing around the globe find it necessary to
ad@ust their organi.ational designs in response to environmental change$nswer% !&UE
'iff% ( Page &ef% ((
$$C45% &eflective !hinking
1:) nc
-
8/21/2019 Chap17 GM6e TIF
3/21
1*) nc
-
8/21/2019 Chap17 GM6e TIF
4/21
(6) #5uild to inventory to reduce unit costs# and #inspect at end of process# are two assumptions
associated with traditional approaches to automobile manufacturing
$nswer% !&UE'iff% ( Page &ef% 0170(
$$C45% &eflective !hinking
() #?inimi.e inventory to cut costs and waste# and #inspect to prevent defective production#
are two assumptions associated with lean production in automobile manufacturing
$nswer% !&UE'iff% ( Page &ef% 0170(
$$C45% &eflective !hinking
(*) !oyota Production system A!P4)+ as the ,apanese company"s manufacturing methods are
known+ achieves efficiencies by following a lean production system
$nswer% !&UE'iff% ( Page &ef% 0170(
$$C45% &eflective !hinking
(;) !he differences between lean producers and U4 mass producers in the way they deal with
their respective dealers+ distributors+ and customers are as dramatic as the differences in the way
they deal with their suppliers
$nswer% !&UE'iff% 0 Page &ef% 0170(
$$C45% &eflective !hinking
(/) !he U4 mass producers focus on short7term income and return on investment+ whereas
,apanese see the process in terms of the long7term perspective
$nswer% !&UE'iff% 0 Page &ef% 0170(
$$C45% &eflective !hinking
(8) Bnce a ,apanese dealership gets a customer+ it is absolutely determined to hang on to that
customer for life
$nswer% !&UE
'iff% 0 Page &ef% 00706$$C45% &eflective !hinking
0:) !oday"s chief executive must have good understanding and responding to the concerns andinterests of a variety of stakeholders
$nswer% !&UE
'iff% ( Page &ef% 070*$$C45% &eflective !hinking
01) $ stakeholder is any group or individual that is affected by+ or takes an interest in+ the
policies and practices adopted by an organi.ation$nswer% !&UE
'iff% ( Page &ef% 070*
$$C45% &eflective !hinking6
Copyright = (:11 Pearson Education+ >nc
-
8/21/2019 Chap17 GM6e TIF
5/21
0() Primary stockholders include top management+ employees+ customers+ media+ and persons
holding stock in the company
$nswer% 2$34E'iff% 1 Page &ef% 070*
$$C45% &eflective !hinking
00) >n developing countries+ globali.ation"s opponents accuse companies of placing intellectual
property rights ahead of human rights
$nswer% !&UE'iff% ( Page &ef% 0*
$$C45% &eflective !hinking
06) Corporate social responsibility AC4&) refers to a company"s obligation to pursue goals and
policies that are in a company"s best interest
$nswer% 2$34E'iff% ( Page &ef% 0*70;
$$C45% &eflective !hinking
0) !imberland Company unveiled a #nutritional label# on its footwear boxes as a means of
communicating its corporate social responsibility commitment to consumers
$nswer% !&UE
'iff% ( Page &ef% 0;$$C45% &eflective !hinking
0*) $ multinational firm must rely on individual country managers to address Corporate 4ocial&esponsibility AC4&) issues on an ad hocbasis
$nswer% !&UE
'iff% ( Page &ef% 0;70/$$C45% &eflective !hinking
0;) $s retail gasoline prices soared in the United 4tates following the devastation of 9urricaneatrina+ 5P+ &oyal 'utch 4hell+ and other companies were accused of gouging
$nswer% !&UE
'iff% ( Page &ef% 08
$$C45% &eflective !hinking
0/) $ccording to one study in (::6+ CEBs in the United 4tates were paid 601 times more than
the average worker$nswer% !&UE
'iff% ( Page &ef% 08
08) 'espite the fact that 4tarbucks is widely admired for forward7thinking management policies+
Global Exchange pressed the company to further demonstrate its commitment to social
responsibility by selling 2air !rade coffee
$nswer% !&UE'iff% ( Page &ef% 08
$$C45% $nalytic 4kills
Copyright = (:11 Pearson Education+ >nc
-
8/21/2019 Chap17 GM6e TIF
6/21
6:) Bne of the Corporate 4ocial &esponsibility AC4&) initiatives by >E$"s primary carpet
supplier in >ndia is to monitor subcontractors to ensure that they do not employ children
$nswer% !&UE'iff% ( Page &ef% 6:
$$C45% &eflective !hinking
61) $ccording to Carly 2lorina+ former CEB of 9ewlett7Packard+ leadership is about%
$) hierarchy
5) titleC) status
') connecting
E) bragging
$nswer% ''iff% ( Page &ef% 1;71/
$$C45% &eflective !hinking
6() >n addition to #selling# their visions+ top management at both -hirlpool and GE face the
formidable task of building%$) their company stature
5) physical layout and design
C) a cadre of globally oriented managers
') a cadre of loyal customersE) access to distribution channels
$nswer% C
'iff% ( Page &ef% 1/$$C45% &eflective !hinking
60) -hich of the following is trueD$) !he number of ,apanese businesspersons fluent in English working in the U4 exceeds the
number of $merican businesspersons fluent in ,apanese working in ,apan
5) !he number of $merican businesspersons fluent in ,apanese working in ,apan exceeds thenumber of ,apanese businesspersons fluent in English working in the U4
C) !he number of ,apanese businesspersons working in the U4 who are fluent in English is
about eual to the number of $merican businesspersons working in ,apan who are fluent in
,apanese') 2ewer than 1+::: ,apanese businesspersons working in the U4 are fluent in English
$nswer% $
'iff% ( Page &ef% 1/718$$C45% ?ulticultural and 'iversity
*Copyright = (:11 Pearson Education+ >nc
-
8/21/2019 Chap17 GM6e TIF
7/21
66) !he ability to speak foreign languages is one difference between managers born and raised in
the United 4tates and those born and raised elsewhere -hich is true and reflects the earlier
statementD$) !here are (:: million Chinese children studying English
5) !here are (6 million $merican children studying Chinese
C) !here are (:: million >ndian children studying Chinese') Chinese managers study English as much as Chinese
E) !here are eual numbers of $merican and Chinese children studying English
$nswer% $'iff% ( Page &ef% 1/718
$$C45% ?ulticultural and 'iversity
6) ?ar@orie 4cardino is chief executive of%$) nc
-
8/21/2019 Chap17 GM6e TIF
8/21
6/) 2red 9assan+ a native of Pakistan+ is chief executive of%
$)
-
8/21/2019 Chap17 GM6e TIF
9/21
() -hich of the following is the best organi.ation structure for global marketingD
$) international division structure
5) matrixC) geographic structure
') worldwide product division structure
E) !here is no single #best# structure for global marketing$nswer% E
'iff% ( Page &ef% ((7(0
$$C45% $nalytic 4kills
0) >n today"s dynamic global competitive environment+ organi.ations need to develop new
forms of%
$) ethnocentrism and myopia5) flexibility+ efficiency+ and responsiveness
C) export department structure
') self7reference criterion
E) geographic structure$nswer% 5
'iff% ( Page &ef% ((7(0$$C45% &eflective !hinking
6) -hich global marketing expert recommends an organi.ation design based on a #globalsuperstructure# that views the world in terms of 0: regionsD
$) Paul rugman
5) enichi Bhmae
C) !om Peters') ?ichael Porter
E) a.uo >namori
$nswer% ''iff% ( Page &ef% ((7(0
$$C45% &eflective !hinking
) $s a company"s initial international business involvement becomes too much for a single
manager or export department to handle+ the next step is typically to establish aAn)%
$) matrix structure5) international division structure
C) geographic structure
') worldwide product division structureE) regional management center
$nswer% 5
'iff% ( Page &ef% (67(*$$C45% &eflective !hinking
8Copyright = (:11 Pearson Education+ >nc
-
8/21/2019 Chap17 GM6e TIF
10/21
*) -hich of the following does notcontribute to the establishment of an international divisionD
$) top management commitment that @ustifies an organi.ational unit headed by a senior manager
5) complexity of international operations reuires unit with authority to make its own decisionsC) ?anagement recogni.es the need for internal specialists
') ?anagement lacks desire to scan the globe for opportunities and threats
E) Pressure to assemble a staff that will take the responsibility to coordinate$nswer% '
'iff% ( Page &ef% (67(*
$$C45% &eflective !hinking
;) $ company with headuarters in the United 4tates and operational units in the taly+ and 4pain would be well advised to consider establishing aAn)%
$) matrix structure5) international division structure
C) geographic structure
') worldwide product division structure
E) regional management center$nswer% E
'iff% ( Page &ef% (*$$C45% &eflective !hinking
/) $ company with headuarters in Europe and operational units in Canada+ the United 4tates+and ?exico would be well advised to consider establishing aAn)%
$) matrix structure
5) international division structure
C) geographic structure') worldwide product division structure
E) regional management center
$nswer% E'iff% ( Page &ef% (*
$$C45% &eflective !hinking
8) !he advantages that a regional management center can offer a company includes all of the
following except%
$) pan7regional decision making5) coordinated regional planning
C) considerable cost saving
') coordinated controlE) coordinated decision making
$nswer% C
'iff% ( Page &ef% (*$$C45% &eflective !hinking
1:Copyright = (:11 Pearson Education+ >nc
-
8/21/2019 Chap17 GM6e TIF
11/21
*:) Bne of the potential drawbacks of a regional management center is that%
$) pan7regional coordination efforts can suffer
5) the cost can be prohibitiveC) the company may lose its #insider# advantage
') regional management may take a one7sided approach when implementing corporate
ob@ectivesE) lack of coordinated decision making
$nswer% 5
'iff% ( Page &ef% (*$$C45% &eflective !hinking
*1) Under the geographical and product division structures+ for the company with 2rench origins+
2rance is%$) the headuarter country market
5) simply another geographic market
C) European market
') divisional marketE) product market
$nswer% 5'iff% ( Page &ef% (*7(;
$$C45% &eflective !hinking
*() !he organi.ation design in which an employee reports to both a country manager and a
functional manager is aAn)%
$) matrix structure
5) international division structureC) geographic structure
') worldwide product division structure
E) regional management center$nswer% $
'iff% ( Page &ef% (/70:
$$C45% &eflective !hinking
*0) -hich form of organi.ation design is capable of integrating geographic knowledge+ product
knowledge+ functional competencies+ and customer knowledgeD$) matrix structure
5) international division structure
C) geographic structure') worldwide product division structure
E) regional management center
$nswer% $'iff% ( Page &ef% (/70:
$$C45% &eflective !hinking
11Copyright = (:11 Pearson Education+ >nc
-
8/21/2019 Chap17 GM6e TIF
12/21
*6) 5oeing has reorgani.ed its commercial transport design and manufacturing engineers from
functional lines into a matrix organi.ation !his new design is expected to all but one of the
following benefits%$) lower costs and uicken updates
5) facilitate problem solving
C) unite engineering and manufacturing processes') provide customer contacts
E) enhance product consistency
$nswer% ''iff% ( Page &ef% (/70:
$$C45% &eflective !hinking
*) 9aving established that the matrix is appropriate+ management can expect the matrix tointegrate the following competency on a worldwide basis
$) geographic knowledge
5) product knowledge and know7how
C) functional competence in finance+ production and marketing') knowledge of customer or industry and its needs
E) all of the above are competencies$nswer% 5
'iff% ( Page &ef% (/70:
$$C45% &eflective !hinking
**) -hich global company has dissolved its matrix structure in order to achieve #greater speed
and efficiency by further focusing and flattening the organi.ationD#
$) -hirlpool5) 3evi 4trauss
C) Pearson P3C
') $55E) Gillette
$nswer% '
'iff% ( Page &ef% (8$$C45% &eflective !hinking
*;) !he key to successful matrix management is ensuring that managers are able to%$) adopt a matrix design
5) adhere to matrix structure
C) maintain technical systems') resolve conflicts and achieve integration
E) preserve existing organi.ational culture
$nswer% ''iff% ( Page &ef% (8
$$C45% &eflective !hinking
1(Copyright = (:11 Pearson Education+ >nc
-
8/21/2019 Chap17 GM6e TIF
13/21
*/) -hich of the following does notbelong in a list of traditional assumptions about automobile
manufacturingD
$) maximi.e machine utili.ation5) fixed set up times
C) build to inventory to reduce unit cost
') outsource from supplier specialistsE) inspection at the end of the process
$nswer% '
'iff% ( Page &ef% 01$$C45% &eflective !hinking
*8) -hich of the following are traditional assumptions about automobile manufacturingD
$) maximi.e machine utili.ation5) fixed set up times
C) build to inventory to reduce unit cost
') maximi.e backwards integration
E) all of the above$nswer% E
'iff% ( Page &ef% 01$$C45% &eflective !hinking
;:) -hich of the following assumptions does notbelong in a list of characteristics of leanproductionD
$) labor is more costly than machines
5) set up time can be reduced
C) minimi.e inventory to cut costs+ waste') maximi.e backwards integration
E) inspection to prevent defective production
$nswer% ''iff% ( Page &ef% 01
$$C45% &eflective !hinking
;1) >n contrast to the lean producers+ U4 mass producers typically maintain operations that
involve all of the following except%
$) less mechani.ation
5) greater labor direct contentC) divide employees with no overlap
') limited uality control
E) employee teamwork$nswer% E
'iff% 0 Page &ef% 0(
$$C45% &eflective !hinking
10Copyright = (:11 Pearson Education+ >nc
-
8/21/2019 Chap17 GM6e TIF
14/21
;() Concepts such as #assembler value chains# and #downstream value chains# are associated
with%
$) lean production5) the matrix structure
C) polycentric organi.ational designs
') the global marketing auditE) traditional assembly designs
$nswer% $
'iff% ( Page &ef% 0(706$$C45% &eflective !hinking
;0) -hich of the following does not describe the !oyota Production 4ystem A!P4)D
$) @idoka5) "@ust7in7time"
C) fixed setup time
') built7in uality
E) visuali.ing problems$nswer% C
'iff% ( Page &ef% 0($$C45% &eflective !hinking
;6) Primary stakeholders include all of the following except%$) top management
5) employees
C) media
') suppliersE) customers
$nswer% C
'iff% ( Page &ef% 070*$$C45% &eflective !hinking
;) 4econdary shareholders include all of the following except%$) media
5) employees
C) local community groups
') nongovernmental organi.ationsE) general business community
$nswer% 5
'iff% ( Page &ef% 070*$$C45% &eflective !hinking
16Copyright = (:11 Pearson Education+ >nc
-
8/21/2019 Chap17 GM6e TIF
15/21
;*) >n developing countries+ globali.ation"s opponents accuse companies of%
$) undermining local cultures
5) placing intellectual property rights ahead of human rightsC) promoting unhealthy diets and unsafe food technologies
') pursuing unsustainable consumption
E) all of the above$nswer% E
'iff% ( Page &ef% 0*
$$C45% &eflective !hinking
;;) >n a socially responsible firm+ employees perform all of the following except%
$) conduct business in an ethical manner5) pursue goals and policies that are in society"s best interest
C) guided by moral principles
') distinguish between right and wrongE) develop their own core ideologies on moral principles
$nswer% E
'iff% ( Page &ef% 0*70;$$C45% &eflective !hinking
;/) !he universal concerns for global companies established by the United
-
8/21/2019 Chap17 GM6e TIF
16/21
/:) !he !imberland Company is best known for its popular hiking boots and work boots >t is a
global mission7centered company !imberland unveiled a sort of #nutritional label# on its
footwear boxes as a means of%$) showing the strength of work boots
5) to promote the health benefit of walking
C) to communicate its C4& commitment') showing the uality of materials used
E) to communicate the popularity of hiking boots
$nswer% C'iff% ( Page &ef% 0;
$$C45% Ethical &easoning
/1) 9ow important is the nationality of the top management position holder in global businessesD
$nswer% ?any globally minded companies reali.e that the best person for a top management @ob
or board position is not necessarily someone born in the home country !he ability to speakforeign languages is one difference between managers born and raised in the United 4tates and
those born and raised elsewhere !here are many examples of executives who were from other
than the country where the business is located $lexander !rotman was born in England andspeaks English+ 2rench+ and German 9oward 4tringer is the chief executive at 4ony Generally
speaking+ however+ ,apanese companies have been reluctant to place non7,apanese nationals in
top positions 2or years+ only 4ony+ ?a.da+ and ?itsubishi had foreigners on their boards >n
?arch 1888 the 2rench company &enault 4$ bought a stake in
-
8/21/2019 Chap17 GM6e TIF
17/21
/0) -hat are &egional ?anagement CentersD -hat are the advantages of having such centers in
the management of global businessesD
$nswer% -hen business is conducted in a single region that is characteri.ed by similarities ineconomic+ social+ geographical+ and political conditions+ there is both @ustification and need for a
management center !hus+ another stage of organi.ational evolution is the emergence of an area
or regional headuarters as a management layer between the country organi.ation and theinternational division headuarters !he increasing importance of the EU as a regional market
has prompted a number of companies to change their organi.ational structures by setting up
regional headuarters there $ regional center typically coordinates decisions on pricing+sourcing+ and other matters Executives at the regional center also participate in the planning and
control of each country"s operations with an eye toward applying country knowledge on a
regional basis and optimally utili.ing corporate resources on a regional basis &egional
management can offer a company several advantages 2irst+ many regional managers agree thatan on7the7scene regional management unit makes sense where there is a real need for
coordinated+ pan7regional decision making Coordinated regional planning and control are
becoming necessary as the national subsidiary continues to lose its relevance as an independent
operating unit &egional management can probably achieve the best balance of geographical+product+ and functional considerations reuired to implement corporate ob@ectives effectively 5y
shifting operations and decision making to the region+ the company is better able to maintain aninsider advantage !he ma@or disadvantage of a regional center is its cost
'iff% ( Page &ef% (*
$$C45% &eflective !hinking
/6) ?c'onald"s organi.ational design integrates the international division and geographical
structures 9ow does the geographical and product division structure work in a global contextD
$nswer% $s a company becomes more global+ management freuently faces the dilemma ofwhether to organi.e by geography or by product lines !he geographical structure involves the
assignment of operational responsibility for geographic areas of the world to line managers !he
corporate headuarters retains responsibility for world7wide planning and control+ and each areaof the world including the #home# or base market is organi.ationally eual 2or the
company with 2rench origins+ for example+ 2rance is simply another geographic market under
the organi.ational arrangement !his structure is most common in companies with closely relatedproduct lines that are sold in similar end7use markets around the world 2or example+ the ma@or
international oil companies utili.e the geographical structure ?c'onald"s U4 is organi.ed into
five geographical operating divisions and ?c'onald"s >nternational has four -hen an
organi.ation assigns regional or worldwide product responsibility to its product divisions+manufacturing standardi.ation can result in significant economies Bne potential disadvantage of
the product approach is that local input from individual country managers may be ignored with
the result that products will not be sufficiently tailored to local markets'iff% ( Page &ef% (*7(;
$$C45% &eflective !hinking
1;Copyright = (:11 Pearson Education+ >nc
-
8/21/2019 Chap17 GM6e TIF
18/21
/) $t -hirlpool+ na matrix+ influence is based on technical competence and interpersonal sensitivity+ not on formal
authority >n a matrix culture+ managers recogni.e the absolute need to resolve issues and choices
at the lowest possible level and do not rely on higher authority $n important task of the currentday top management is to eliminate a one7dimensional approach to decisions and encourage the
development of multiple management perspectives and an organi.ation that will sense and
respond to a complex and fast7changing world
'iff% ( Page &ef% (/70:$$C45% &eflective !hinking
/*) $fter establishing that the organi.ational matrix is appropriate for a business+ what should
management expect as to the integration of basic competencies on a worldwide basisD$nswer% !here are four basic competencies on a worldwide basis that a manager can expect the
matrix to integrate once it is established that it is appropriate for the organi.ation !hese are% A1)geographic knowledge this is an understanding of the basic economic+ social+ cultural+
political+ and governmental market and competitive dimensions of a country is essentialF A()
product knowledge and know7how product managers with a worldwide responsibility canachieve this level of competence on a global basis $nother way of achieving global product
competence is simply to duplicate product management organi.ations in domestic and
international divisions+ achieving high competence in both organi.ational unitsF A0) functional
competence in such fields as finance+ production+ and especially+ marketing corporatefunctional staff with worldwide responsibility contributes toward the development of functional
competence on a global basisF A6) a knowledge of the customer or industry and its needs
certain large and extremely sophisticated global companies have staff with a responsibility forserving industries on a global basis to assist the line managers in the country organi.ations in
their efforts to penetrate specific customer markets Under this arrangement+ instead of
designating national organi.ations or product divisions as profit centers+ both are responsible forprofitability
'iff% ( Page &ef% (/70:
$$C45% &eflective !hinking
1/Copyright = (:11 Pearson Education+ >nc
-
8/21/2019 Chap17 GM6e TIF
19/21
/;) -hat is a matrix organi.ationD 'escribe giving examples
$nswer% >n the fully developed large7scale global company+ product or business+ function+ area+
and customer know7how are simultaneously focused on the organi.ation"s worldwide marketingob@ectives !his type of total competence is a matrix organi.ation ?anagement"s task in the
matrix organi.ation is to achieve an organi.ational balance that brings together different
perspectives and skills to accomplish the organi.ation"s ob@ectives >n 188/+ both Gillette andEricsson announced plans to reorgani.e into matrix organi.ations Ericsson"s matrix is focused
on three customer segments% network operators+ private consumers+ and commercial enterprises
Gillette"s new structure separates product7line management from geographical sales andmarketing responsibility 3ikewise+ 5oeing has reorgani.ed its commercial transport design and
manufacturing engineers into a matrix organi.ation !his is built around five platform or aircraft
model7specific groups !he new design is expected to lower costs and uicken updates and
problem solving >t will also unite essential design+ engineering+ and manufacturing processesbetween 5oeing"s commercial transport factories and component plants+ enhancing product
consistency !he matrix form of organi.ation is well7suited to global companies because it can be
used to establish a multiple7command structure that gives eual emphasis to functional and
geographical departments 2our considerations are suggested regarding the matrix organi.ationaldesign 2irst+ the matrix is appropriate when the market is demanding and dynamic 4econd+
employees must accept higher levels of ambiguity and understand that policy manuals cannotcover every eventuality !hird+ in country markets where the command7and7control model
persists+ it is best to overlay matrices on only small portions of the workforce 2inally+
management must be able to clearly state what each axis of the matrix can and cannot do'iff% ( Page &ef% (/
$$C45% &eflective !hinking
//) -hat are the assumptions about mass production compared to !oyota Production systemD$nswer% Under the traditional assumptions related to mass production there are five ma@or
differences% A1) maximi.e machine utili.ationF A() fixed setup timesF A0) build to inventory to
reduce unit costF A6) inspect at end of process and A) maximi.e backwards integration Bn theother hand+ in the !oyota Production 4ystem these five assumptions are% A1) labor is more costly
than machinesF A() can reduce setup timeF A0) minimi.e inventory to cut costs and wasteF A6)
inspect to prevent defective production and A) outsource from supplier specialists !hesedifferences are remarkable !o achieve these gains at !oyota+ production experts !aiichi Bhno
and 4higeo 4hingo challenged above7listed traditional assumptions associated with automobile
manufacturing !hey made changes to operations within the auto company itself such as
reducing setup times for machinery !heir innovations have been widely embraced in theindustry as a result+ individual producers" value chains have been modified+ and interfaces
between producers and suppliers have been optimi.ed to create more effective and efficient value
systems'iff% ( Page &ef% 0170(
$$C45% $nalytic 4kills
18Copyright = (:11 Pearson Education+ >nc
-
8/21/2019 Chap17 GM6e TIF
20/21
/8) $ @oke among the ,apanese says that the only way to escape from the salesperson is to leave
the country Explain this statement highlighting the differences between lean producers and U4
mass producers$nswer% !he primary difference between lean producers and U4 mass producers is in the way
they do business deals with their respective dealers+ distributors+ and customers U4 mass
producers follow the basic industry model and maintain an #arm"s7length# relationship withdealers that is often characteri.ed by a lack of cooperation and even open hostility !here is often
no sharing of information because there is no incentive to do so $ll parties try to keep
information about what they really want from the others !he manufacturer uses incentives andother schemes to persuade the dealers to accept the unpopular models !he dealer then has the
problem of persuading customers to buy the unpopular models !he production process portion
of the value chain is also broken !hus+ there is a compounding of problems all along the way
between manufacturer and dealer !his is very different than what the lean producer businesspractices are >n ,apan+ where lean producers are predominant+ the dealer"s employees are true
product specialists !hey know everything about their products $ customer deals with one
person in the dealership+ and that person takes care of everything from the initial contact through
eventual trade7in and replacement and all the problems !he linkages between dealers+ marketingdivisions+ and product development teams are totally optimi.ed Bnce a ,apanese dealership gets
a customer+ it is absolutely determined to hang on to that customer for life !he differencebetween U4 mass producers and the ,apanese lean producers reflect their fundamental
differences in business ob@ectives !he U4 producers focus on short7term income and return on
investment !oday"s sale is a discrete event that is not connected to upstream activities in thevalue chain and has no value in tomorrow"s activities !he ,apanese see the process in terms of
the long7term perspective !here are two ma@or goals of the sales process !he first is to
maximi.e the income stream from each customer over time and the second is to use the linkage
with the production processes to reduce production and inventory costs and to maximi.e uality+and therefore+ differentiation
'iff% ( Page &ef% 00706
$$C45% &eflective !hinking
(:Copyright = (:11 Pearson Education+ >nc
-
8/21/2019 Chap17 GM6e TIF
21/21
8:) 3eaders of global companies are facing the resistance to globali.ation in many countries
9ow should the executives handle the situationD
$nswer% !oday"s executives must be a proactive steward of the reputation and social standing ofa company he or she is leading !his reuires an understanding of the concerns as well as timely
responding to the concerns and interests of a variety of stakeholders &esistance to globali.ation
is one of the prominent restraints on the growth of global business and global marketing !heantiglobali.ation movement takes a variety of forms and finds expression in various ways >n
developed countries+ the movement"s concerns and agenda include cultural imperialism 2or
example+ the 2rench backlash against ?c'onald"sF the loss of @obs due to offshoring andoutsourcing+ such as in the furniture industry in the United 4tatesF and a distrust of global
institutions as seen by anti7-!B protests in various countries Bn the other hand+ in developing
countries+ globali.ation"s opponents accuse companies of undermining local cultures+ placing
intellectual property rights ahead of human rights+ promoting unhealthy diets and unsafe foodtechnologies+ and pursuing unsustainable consumption Environmental degradation and labor
exploitation are also key issues $ company"s reputation can very uickly get tarnished if
activists target its policies and practices !hus+ the leaders of global companies must practice
corporate social responsibility AC4&) C4& is a company"s obligation to pursue goals andpolicies that are in society"s best interests >n a socially responsible firm+ employees conduct
business in an ethical manner !hey are guided by moral principles that enable them todistinguish between right and wrong $t many companies+ a formal statement or code of ethics
summari.es core ideologies+ corporate values+ and expectations GE+ 5oeing+ and United
!echnologies Corporation are some of the $merican companies offering training programs thatspecifically address ethics issues $t some companies their ethics statement is known as their
credo 2or the global company with operations in multiple markets+ the issue of C4& becomes
complicated and executives have to take into account factors prevalent in each market into
consideration'iff% ( Page &ef% 0761
$$C45% Ethical &easoning
(1