Question: Explain the importance of management, and identify

> Wooden musical instruments have been carved by hand for hundreds of years. Why wouldn’t Kiesel want to continue this tradition?

> Watch some of the video on Kiesel’s YouTube channel at www.youtube.com/user/carvinguitars. How might this information help convince potential buyers to consider Kiesel or Carvin guitars?

> Discuss the strategic choices that must be considered before entering international markets. (1) If a multidomestic approach gives local managers the most flexibility for responding to local market conditions, why wouldn’t every international company use

> If Kiesel experienced an increase in orders from its website over a period of two weeks, should it expand its production capacity to make sure it can handle increased demand in the future? Why or why not?

> How could Cemex use Shift to recruit new employees?

> Should Cemex open Shift up to business partners and customers, in addition to employees? Why or why not? If it did, what factors would the company have to consider first?

> Why might it be difficult to implement a system like Shift in a well-established company such as Cemex?

> How does low employee turnover contribute to the distinct and positive corporate culture at Wegmans?

> Would the Wegmans approach work for a car dealer? A bookstore? A manufacturer of industrial goods? Explain your answers.

> Wegmans has always been managed by members of the Wegman family. Do you think the company could continue its winning ways if the next generation doesn’t want to take over, forcing the company to hire someone from outside the family as CEO? Explain your a

> Would opening their own retail stores be a risky decision for Sister Sky? How would this change the company’s business model?

> Should Simeon and TurningRobe consider lowering their ingredient costs by switching to petroleum-based ingredients or stopping their use of pure distilled water? Why or why not?

> Which of the qualities of successful entrepreneurs have Simeon and TurningRobe demonstrated?

> Define the major forms of international business activity. (1) Can a company successfully export to other countries without having staff and facilities in those countries? Why or why not? (2) Why does so much foreign direct investment take place between

> Assume you’re a Cisco executive leading the effort to acquire a small software company. The company is interested because it needs more resources to keep growing, but the founders are leaning toward an offer of a 50/50 merger with another small software

> Would a hostile takeover be a good move for Cisco, given its approach to acquisitions? Why or why not?

> In today’s global economy, why do you suppose Cisco puts so much emphasis on the location of potential acquisition targets?

> Is it ethical for NGOs to put pressure on just one company in an industry when they are trying to effect change across the entire industry, given that responding to that pressure is likely to cost that one company more than its competitors?

> How does Mark Parker’s phrase “sustainable business” relate to sustainable manufacturing?

> This chapter covers three factors that influence ethical decisions: cultural differences, knowledge, and organizational behavior. How have these factors shaped Nike’s CSR actions over the past two decades?

> H&M’s growth, including its international expansion, is entirely self-funded (meaning it doesn’t borrow money to launch new stores). How might this influence to company’s decision-making and expansion efforts?

> Would H&M have been able to succeed with its consistent global strategy in the days before mass media and digital communications? Explain your answer.

> Some companies play up their home-country roots as they expand internationally, such as the way BMW and Mercedes emphasize their German engineering. Should H&M promote some aspect of its “Swedishness?” Why or why not?

> Apple is famously secretive about the details of upcoming product launches, leaving consumers and industry insiders to speculate on the features and functions of new models. What effect might this have on demand?

> Discuss the importance of understanding cultural and legal differences in the global business environment. (1) What steps could you take to help someone from another country adapt to U.S. business culture? (2) How can you convey respect for another perso

> Define reinforcement theory, and differentiate between positive and negative reinforcement. (1) Is demoting an employee for failing to finish a project an attempt at negative reinforcement or punishment? Why? (2) In what ways is reinforcement theory simi

> Describe the job characteristics model, and explain how it helps predict motivation and performance. (1) Can the job characteristics model be used to motivate employees in such positions as janitors or security guards in a factory? How? (2) Is modifying

> Identify the strengths and weaknesses of goal-setting theory. (1) Why is collaboration between employee and manager essential to goal setting in MBO? (2) How can overly narrow goals and overly challenging goals contribute to ethical lapses?

> Explain why many consider expectancy theory to be the best current explanation of employee motivation. What steps could managers take to alleviate the self-doubt employees often feel when they join a company or move into a new position?

> Define motivation, and identify the classical motivation theories. (1) How could a manager tap into the drive to defend as a way to help rally employees? (2) Could Herzberg’s hygiene factors help explain the significant problem of employee theft and embe

> Define quality, explain the challenges of quality and product complexity, and identify four major tools and strategies for ensuring product quality. (1) How significant is the role of software in product quality today? (2) How can process simplicity

> Explain the unique challenges of service delivery. (1) How can technology help some service businesses address the challenge of scalability? (2) If customers are paying for a service, why should they ever have to share in the responsibility of ensuring q

> Identify the major planning decisions in production and operations management. (1) Why is it essential to identify tasks in the critical path of a project? (2) How does mass customization help a company balance productivity and customer satisfaction?

> Define supply chain management, and explain its strategic importance. (1) Why can’t companies just stockpile huge inventories of all the parts and materials they need rather than carefully manage supply from one day to the next? (2) Why would a company i

> Describe the value chain and value web concepts, and discuss the controversy over offshoring. Do U.S. companies have an obligation to keep jobs in the United States? Why or why not?

> Identify the major organizations that facilitate international trade and the major trading blocs around the world. (1) Why do trade disputes sometimes take years to resolve? (2) If a country currently benefits from high tariffs on imports, why might it c

> Explain the systems perspective, and identify seven principles of systems thinking that can improve your skills as a manager. (1) Why are leverage points in a system so critical to understand? (2) Why should a manager in marketing care about systems in t

> Explain the concept of an unstructured organization, and identify the major benefits and challenges of taking this approach. (1) “Unstructured” organization is something of a contradiction in terms; are such companies still “organized” if they have no pe

> Review the five stages of team development, and explain why conflict can arise in team settings. (1) How can a team leader know when to step in when conflict arises and when to step back and let the issue work itself out? (2) What are the risks of not gi

> Highlight the advantages and disadvantages of working in teams, and list the characteristics of effective teams. (1) Is groupthink similar to peer pressure? Why or why not? (2) Is supporting a group decision you don’t completely agree with always a case

> Explain how a team differs from a group, and describe the six most common forms of teams. (1) How might the work of a task force or committee disrupt the normal chain of command in an organization? (2) Should new hires with no business experience be assi

> Define four major types of organization structure. (1) Should The Container Store use the same organization structure in each of its stores around the country? Why or why not? (2) Why does a matrix structure create potential problems in the chain of comm

> Explain the major decisions needed to design an organization structure. (1) What are the risks of a poorly designed organization structure? (2) How does a flat structure change the responsibilities of individual managers?

> Identify and explain four important types of managerial skills. (1) Why is trust a vital aspect of a manager’s interpersonal skills? (2) What are the risks of poorly defining problems or opportunities prior to making decisions?

> Describe the controlling function, and explain the four steps in the control cycle. (1) Why is it important to meet the needs of internal customers? (2) Is lowering performance standards in response to a failure to meet those standards necessarily a sign

> Describe the leading function, leadership style, and organizational culture. (1) Are management and leadership the same thing? If not, why not? (2) Can a single individual be an autocratic, a democratic, and a laissez-faire leader? Why or why not?

> Discuss the nature of conflicts in global business, including free trade and government interventions into international trade. (1) What would happen to U.S. workers if all trade intervention suddenly disappeared? (2) What would be the effect on U.S. con

> Describe the organizing function, and differentiate among top, middle, and first-line management. (1) Why might a manager need to deemphasize skills honed in previous positions as he or she rises through the organizational hierarchy? (2) Would top manage

> Describe the planning function, and outline the strategic planning process. (1) Would Boeing and Old Navy develop strategic plans over the same time horizon? Why or why not? (2) How does the vision statement guide the planning process?

> Explain the advantages and disadvantages of franchising. (1) Why might a business owner with a successful concept decide to sell franchises rather than expanding the company under his or her own control? (2) Why might someone with strong entrepreneurial

> Discuss the principal sources of small-business private financing. (1) Would a profitable small business with only moderate growth potential be a good candidate for venture capitalist funding? Why or why not? (2) Why would angel investors help finance co

> Identify the major causes of business failures, and identify sources of advice and support for struggling business owners. (1) Why would a state or local government invest taxpayer dollars in a business incubator? (2) Can you think of any risks of gettin

> Explain the importance of planning a new business, and outline the key elements in a business plan. (1) Why is it important to identify critical risks and problems in a business plan? (2) Many experts suggest that you write the business plan yourself, ra

> List the most common reasons people start their own companies, and identify the common traits of successful entrepreneurs. (1) Would someone who excels at independent entrepreneurship automatically excel at an intrapreneurial effort? Why or why not? (2)

> Highlight the contributions small businesses make to the U.S. economy. (1) Why do you think many companies grow more risk-averse as they grow larger? (2) If they wanted to, could large businesses take the place of small businesses in the U.S. economy? F

> Define strategic alliances and joint ventures, and explain why companies would choose these options over a merger or acquisition. Why are an increasing number of companies now considering joint ventures rather than mergers and acquisitions?

> Explain why nations trade, and describe how international trade is measured. (1) Would it be wise for an advertising agency to open offices in Europe and Asia to service a single multinational client? Why or why not? (2) If IBM invests $40 million in a j

> Identify the potential advantages of pursuing mergers and acquisitions as a growth strategy, along with the potential difficulties and risks. (1) If you were on the board of directors at a company and the CEO proposed a merger with a top competitor, what

> Explain the concept of corporate governance, and identify the three groups responsible for ensuring good governance. (1) Why are some shareholder activists pressuring corporations to increase the number of board seats held by women and minorities? (2) Wh

> Define corporation, and explain the four advantages and six disadvantages of this ownership model. (1) Why is the LLC structure recommended for most small companies that aren’t sole proprietorships? (2) How can the demands of the stock market affect mana

> Identify four fundamental consumer rights and the responsibility of business to respect them. Is there a point at which responsibility for product safety shifts from the seller to the buyer? Explain your answer.

> Discuss what it means to practice good business ethics, and highlight three factors that influence ethical decision making. (1) If you go to work tomorrow morning and your boss asks you to do something you consider unethical, what factors will you take i

> Identify the two major sets of economic forces that triggered the meltdown of 2008 and sent the economy into a global recession. (1) Can financial bubbles be avoided? After all, they involve lots of human emotion triumphing over logic. Explain your answe

> Identify the major types of commercial banks, and outline the impact of banking deregulation over the past three decades. (1) Why might credit unions want to promote themselves as not being banks in the popular usage of the term? (2) Would a credit uni

> Distinguish investment banks from commercial banks, and identify the three major types of investment banks. (1) Could efforts to avoid conflicts of interest lead an investment bank to provide poor service to a client? Explain your answer. (2) With the

> Explain the major functions of the Federal Reserve System, and identify other key federal financial institutions. (1) Why does the Fed want to avoid an “overheating” economy? (2) Why is the Fed’s discount window considered the “lender of last resort” for

> List the four financial functions of money and define two key measures of the money supply. (1) What might happen if people lose trust in their country’s currency? (2) Why couldn’t you buy your groceries using an amount of gold of equal value to the cost

> Identify the major ways of measuring economic activity. (1) Why would anyone bother to monitor lagging indicators? (2) Why is GDP considered a more accurate measure of a country’s economic health than GNP?

> Describe four major steps required to become an investor. (1) If you want to buy a particular stock but are worried that demand from investors could push the price to an unreasonably high level before your order is executed, which type of order would you

> Describe the four major types of financial markets. (1) What is the difference between the primary market and the secondary market? (2) Why do individual investors participate in the stock and bond markets but not in the money market?

> Define derivative, and identify the major types of derivatives. (1) Why would a lender make loans that are so risky that it would consider credit default swaps to protect itself from default? (2) Would options and futures be a wise investment for someone

> Define mutual fund, and explain the advantages and disadvantages of this popular investment vehicle. (1) How might the constant scrutiny and demand for consistent results affect the long-term performance of a mutual fund? (2) If many funds don’t outperfo

> Explain the three key variables that distinguish bonds, compare the advantages and disadvantages of owning bonds, and list the major types of bonds. (1) Why do bonds offer lower average rates of return than stocks? (2) If a company’s newest product flops

> Distinguish between common and preferred stock, and explain the difference between market value and intrinsic value. (1) Assuming both can be calculated with reasonable accuracy, does book value or intrinsic value give a more accurate assessment of a com

> Describe the two options for equity financing, and explain how companies prepare an initial public offering. (1) High-tech firms tend to dominate IPO filings year after year; why do you suppose this is so? (2) Why does the volume of IPOs tend to track th

> Identify the major categories of long-term debt financing. (1) How could rates of technological change affect a company’s decision about whether to buy or lease equipment, vehicles, and other assets? (2) Why would lenders want to see that a business alre

> Identify the major categories of short-term debt financing. (1) How does getting a secured loan using accounts receivable as collateral differ from factoring? (2) Why would any seller offer trade financing, since it ties up working capital without genera

> Compare the advantages and disadvantages of debt and equity financing, and explain the two major considerations in choosing from financing alternatives. (1) What factors might lead a company to gain additional funds through debt financing rather than thr

> Identify four macroeconomic issues that are essential to understanding the behavior of the economy. (1) Are colleges and universities an example of pure competition or monopolistic competition? Why? (2) Are monopolies always harmful to consumers? Why or

> Explain the concept of adding value in a business, and identify the major types of business. (1) What inputs does a musical group use to create its outputs? (2) Can not-for-profit organizations benefit from practices used by for-profit companies? Why or

> The three finalists for an award are A, B, and C. They are rated by two judges. Each judge assigns the ratings 1 for best, 2 for intermediate, and 3 for worst. Let X denote the total score for finalist A (the sum of the ratings received from the two ju

> For a standard normal variable, Z, find (a) P(Z < .73) (b) P(Z < -.73) (c) P(Z > 1.42) (d) P(Z > -1.42) (e) P(-1.4 < Z < 2.57) (f) P( .07 < Z < .70 ) (g) P(-1.65 < Z < -.45) (h) P(|Z| < 1.96)

> Determine the following probabilities from the curve f ( x) diagrammed in Exercise 6.1 (a). (a) P( 0 (b) P(l.8 (c) P(.4 (d) P[ X = 1] Data from Exercise 6.1: Which of the functions sketched below could be a probability density function for a continuous

> Identify the z values in the following diagrams of the standard normal distribution (interpolate, as needed)

> Identify the z values in the following diagrams of the standard normal distribution (interpolate, as needed).

> Find the area under the standard normal curve over the interval (a) z = -.44 to z = .44 (b) z = -1.33 to z = 1.33 (c) z = .40 to z = 2.03 (d) z = 1.405 to z = 2.306 (interpolate)

> Find the area under the standard normal curve over the interval (a) z = - .85 to z = .85 (b) z = -1.15 to z = 1.15 (c) z = .58 to z = 2.03 (d) z = -.845 to z = 1.366 (interpolate) (e) Check all of your answers using software.

> Find the area under the standard normal curve to the right of (a) z = .63 (b) z = 2.63 (c) z = -1.23 (d) z = 1.635 (interpolate)

> Find the area under the standard normal curve to the right of (a) z = 1.27 (b) z = .54 (c) z = -1 .63 ( d) z = -1.325 (interpolate)

> Find the area under the standard normal curve to the left of (a) z = 1.63 (b) z = 1.07 (c) z = -1.07 (d) z = -1.55

> Find the area under the standard normal curve to the left of (a) z = 1.37 (b) z = .34 (c) z = -1.61 (d) z = -2.53

> Faced with a tight deadline on two major projects, you decide to hire two of the five available persons to help complete the work. They have 2, 3, 5, 3, and 2 years experience, respectively. Since their references are very similar, you decide to select t

> Two pieces of wood need to be glued together. After applying glue to both pieces, they must be clamped to obtain the best results. The required clamping time in any application is a random variable. Find the standardized variable Z, for the clamping time

> Males 20 to 29 years old have a mean height of 69.4 inches with a standard deviation of 3.5 inches. Females 20 to 29 years old have a mean h eight of 64.1 inches with a standard deviation of 3.1 inches. (a) Find the standardized variable for the heights

> Which of the functions sketched below could be a probability density function for a continuous random variable? Why or why not?

> According to a recent Federal Trade Commission Report, about .13% of the persons in the 20-29 year old age group filed identity theft complaints. From a random sample of n = 600 persons 20-29 years old, let X denote the number who filed an identity theft

> Records over several years show that the probability is .00003 that a car will have a flat tire while driving through a long tunnel. About 16,000 cars use the tunnel each week. Determine the probability that 2 or more cars will have a flat next week (a)

> For health reasons, homes need to be inspected for radon gas that decays and produces alpha particles. One device counts the number of alpha particles that hit its detector. To a good approximation, in one area, the count for the next week follows a Pois

> A Poisson distribution with m = 2.5 governs the yearly number of tornado touchdowns in a central area of the state. Find the probabilities P [ X ≤ 1 ] and P [ X ≥ 1 ] .

> A Poisson distribution with m = 1.2 governs the number of fireflies that flash in a l O second period during an August evening in the yard. Determine the probability that: (a) 2 fireflies flash. (b) Less than or equal 3 flash . (c) 6 fireflies flash in