BUS 305 Quiz
Quiz 3 Principles of Management!
BUS 305_90
Instructions:
The first thing you are to do is to place your name and student ID at the top of your
paper. When you submit your quiz please use the following document format: First name_Last
name_course number_Fall 2013. You are to upload your quiz to the iLearn file folder created by
our TA. While I do enjoy your emails, please do not email me your quiz.
This quiz covers concepts, principles, theories, and applications discussed in chapters 3,
5, and 6. It also covers discussion topics from our forum. Take a moment to read classmate’s
responses. If I responded to a student’s forum post, then take a moment to read it. I have tried to
expand on a student’s post by providing an additional perspective. You may use your available
resources to respond to quiz questions. If you use a source remember to cite your sources. You
may not use the Internet “wiki” as a source to support your position on an issue. Please do not
plagiarize your answers or cut & past from another source. I am interested in your original
thoughts, analysis, and synthesis.
Please remember to use APA formatting when writing. Title and table of content pages
are not required; however, pagination, paragraph formatting, spelling, grammar, spacing, and
references (if used) are some of the important items that count. You may use this document to
respond or submit a separate quiz document.
Definitions (please be complete. Do not, repeat do not define the word with the word. Use
complete sentences, and do not give examples).
1. What is globalization
o Globalization is expansion of a company worldwide through ideas, finances,
investments, and culture.
2. Define BRIC
o Brazil, Russia, India, and China (BRIC) are the four countries that are emerging
as important providers of goods and services to other nations in the world.
3. Define GATT, NAFTA, and WTO.
o The General Agreement on Tariffs and Trade, GATT, are the basic guidelines for
fair international trade to make sure that lesser-developed countries can
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BUS 305 Quiz
participate in international trade, there is no discrimination, and there are specific
procedures to follow.
o The World Trade Organization, WTO, is a global establishment that monitors all
international trade and has legal power to settle differences, and enforce all rules
and regulations on international trade.
o The National American Free Trade Agreement, is an agreement between the U.S,
Canada, and Mexico to limit taxes and trade restrictions on imports to make
exporting between North America more desirable.
4. What is strategy?
o A strategy is a thought process to develop a personal plan of actions to achieve a
goal.
5. What is a plan?
o A plan is a set of tasks made in advance used to complete a task or accomplish a
goal.
6. Define Competitive Advantage
o Competitive Advantage is a factor within a business that distinguishes it from its
competition giving them the upper-hand to succeed.
7. What is a decision?
o A decision is a final choice between multiple options, or a conclusion made after
evaluating all options, ideas, and concerns.
8. What is risk?
o A risk is the possible negative consequence or threat to come after a decision has
been made.
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BUS 305 Quiz
Concepts, Principles, & Theories
1.If no one can know the future with certainty, then how would you plan for an uncertain
future as a key vice president of the company?
There is no way to predict the future or know what the future technology holds. This
makes planning for the future difficult. As a key vice president of a company I would plan for an
uncertain future by being open-minded and adaptable to change. People and things change
constantly and nothing will stay the same forever. By accepting this, I would have already
planned for the future. Businesses have to constantly adapt to change. A business cannot be stuck
on and focused on one way of operation and expect to be on top in the future.
2. Describe the stages of globalization
Globalization is the “extent to which trade and investments, information, social and
cultural ideas, and political cooperation flow between countries” (Daft & Marcic, 2013). For a
company to continue to grow and expand once it has reached its limits in the domestic market, it
needs to go through four stages of globalization. These include domestic, international,
multinational, and global.
In the domestic stage, a company sticks to where it originated and limits its market to the
nation where it developed. At this point a company is not concerned with going international and
pays little attention to outside culture. In the international stage of a company they realize to
continue to grow and achieve their goals, they need to export their goods internationally. At this
point a company is very concerned with other cultures, and “product design, marketing, and
advertising is adapted to local needs and values for each country” (Cengage, 2013). In the
multinational stage, a company locates manufacturing plants and marketing facilities in key
foreign countries. A company will now adopt a multinational orientation and try to standardize
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BUS 305 Quiz
their product design and marketing worldwide. The last stage for a company is the global stage.
At this stage, a company is now global and will expand to “whatever country will offer the best
opportunities at the lowest cost” (Cengage, 2013). The culture of the company will depend on
the specific location of each current global market.
References
Cengage. (2013). Cengage Learning. Retrieved November 14, 2013, from Stages of
Globalization: http://www.swlearning.com/management/now/tutorials/om_ov4_inter.htm
Daft, R., & Marcic, D. (2013). Understanding Management (8th Edition ed.). Mason, Ohio,
USA: South-Western.
2. (Part A) If most plans fail, then why do we plan? (Part B) Why is planning more
important than plans?
3.What are the competitive strategies?
For a company to differentiate itself and be known in the competitive business world, it
needs to have a competitive advantage. According to the text, Understanding Management, by
R. Daft and D. Marcic, Michael E. Porter suggests that there are three strategies for a company to
be competitive. These strategies are differentiation, cost leadership, and focus.
Differentiation is having a product or service more desirable and different than
competitor’s product. Cost leadership deals with pricing of the product and cost to make the
product to have lower sticker price. A company will need to have the right listing price while still
being able to make a profit, and have a cost incentive for buyers over their competition. The last
strategy a company can use to stay competitive is to have focus. With the focus strategy, a
company sticks to a particular niche market and caters to its needs, wants, and demands.
4.What are the strategies for entering a global market?
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BUS 305 Quiz
5.What is and why do we use Porter Models?
A Porter Model is a guide for formulating business- level strategies for competition based
on Michael E. Porter’s theories. We use a Porter Model to help identify the five competitive
forces that occur in a company’s environment and use them to our advantage. We also use Porter
Models because they are widely accepted throughout the business world.
6. Contrast and compare R. Daft’s (textbook & PPT slides 12 & 13 and P. Drucker’s (see
iLearn PPT on Decisions & Decision Making) approaches to decision making.
According to P. Drucker, decision making “is a task of the executive. Only executives
make company decisions” (Willis, 2013). According to R. Daft, anyone can make a decision and
the process starts with the recognition of a decision requirement (Daft R. , 2013). Both Daft and
Drucker approach making a decision through systematic processes.
Application of Principles and Concepts
Each company has strengths and weaknesses to deal with in order to support their future
growth plans. As a consultant you are called into a Board of Directors meeting to help them
decide on issues of globalization and increasing their competitive advantage. Sharing your
thinking in thoughtful well constructed paragraphs the management issues regarding
globalization, competitive advantage, and how they should make this decision using our
principles of management. Remember to support your position. Please keep your response to
less than 2 pages (and remember APA formatting rules).
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