Organizational Culture and Sustainability Quiz
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Questions and Answers

Which of the following factors is LEAST likely to contribute to a strong organizational culture?

  • A clear articulation of cultural values and beliefs
  • The age of the organization
  • A small size of the organization
  • A high rate of employee turnover (correct)
  • Which of these is NOT typically considered a benefit of a strong organizational culture?

  • Increased cohesiveness among employees
  • Reduced employee turnover
  • Improved performance
  • Enhanced ability to adapt to change (correct)
  • Which scenario is MOST likely to experience difficulties due to a strong existing culture?

  • A non-profit organization with a strong commitment to its mission
  • A family-owned business with a long history of success
  • A start-up company with a rapidly evolving market (correct)
  • A large corporation with a well-defined set of values
  • Which of these is NOT a characteristic of a strong organizational culture?

    <p>A high degree of employee autonomy (D)</p> Signup and view all the answers

    Which of these is a potential disadvantage of a strong organizational culture?

    <p>Reduced ability to merge with other organizations (D)</p> Signup and view all the answers

    What is the main trigger that initiates the institutionalization process for mainstreaming sustainability?

    <p>The implementation of a new legislative requirement for sustainability (A)</p> Signup and view all the answers

    Which of these strategies DOES NOT fall under the category of 'Explore Common Ground'?

    <p>Use social skills to persuade stakeholders (D)</p> Signup and view all the answers

    Which of these strategies directly addresses the 'Build Capacity' stage of mainstreaming sustainability?

    <p>Offer resources and training to help stakeholders implement sustainable practices (D)</p> Signup and view all the answers

    What is the main objective of 'Framing the Issue' in the context of mainstreaming sustainability?

    <p>Presenting sustainability as an appealing opportunity for stakeholders to contribute to a better society (B)</p> Signup and view all the answers

    Which of the following is NOT a common trigger for the institutionalization of sustainable business practices?

    <p>A successful internal initiative demonstrating the benefits of sustainable practices (A)</p> Signup and view all the answers

    Which of the following is an example of a 'Soft Power' strategy for mainstreaming sustainability?

    <p>Utilizing social skills and persuasion to build support for sustainability initiatives (B)</p> Signup and view all the answers

    What is the key objective of the 'Creative Incentive Systems' stage of mainstreaming sustainability?

    <p>Designing a system that rewards stakeholders for their participation in sustainable practices (B)</p> Signup and view all the answers

    Which of the following is NOT a key element of 'Exploring Common Ground' in the context of mainstreaming sustainability?

    <p>Identifying and addressing the concerns and risks from stakeholders with opposing views (A)</p> Signup and view all the answers

    What does theorisation primarily focus on?

    <p>Connecting business practices to management theories (C)</p> Signup and view all the answers

    Which of the following actions is most likely to hinder the maintenance of sustainable business?

    <p>Disregarding feedback on sustainability efforts (C)</p> Signup and view all the answers

    Which statement best defines business ethics in relation to societal beliefs?

    <p>They reflect the overall social consensus on right and wrong. (C)</p> Signup and view all the answers

    What is a potential consequence of corporate scandals linked to top management?

    <p>Significant damage to the company's reputation (C)</p> Signup and view all the answers

    Why might ethical codes in businesses, such as that of Volkswagen, fail to prevent unethical behavior?

    <p>Top management does not adhere to them consistently. (D)</p> Signup and view all the answers

    What is the primary advantage of a wholly owned subsidiary compared to franchising?

    <p>Higher returns and higher risk (A)</p> Signup and view all the answers

    Which statement accurately describes the liability of foreignness?

    <p>It stems from a lack of knowledge about local customs (B)</p> Signup and view all the answers

    Which international structure is best suited for achieving economies of scale?

    <p>Transnational structure (A)</p> Signup and view all the answers

    What is a primary driver for sustainable business activities?

    <p>Instrumental motives such as cost reduction (C)</p> Signup and view all the answers

    Which of the following describes the relational motive in sustainable business?

    <p>Maintaining good relations with stakeholders (A)</p> Signup and view all the answers

    In the context of sustainable business, what is meant by 'planetary boundaries'?

    <p>Environmental limits that should not be breached (B)</p> Signup and view all the answers

    What motivates companies to engage in activities for maintaining legitimacy?

    <p>Social responsibility (C)</p> Signup and view all the answers

    What is an example of a moral motive for businesses?

    <p>Creating a better world (B)</p> Signup and view all the answers

    What concept encompasses the potential benefits of lower costs of capital for sustainable businesses?

    <p>Instrumental motive (D)</p> Signup and view all the answers

    Which aspect is contingent on stakeholder salience?

    <p>Type of organization (A)</p> Signup and view all the answers

    Which organizational structure is best suited for a company that prioritizes adaptation to local preferences and high adaptability, while potentially facing inefficiency concerns?

    <p>Multi-domestic structure (A)</p> Signup and view all the answers

    Which of the following statements accurately describes the Transnational Structure?

    <p>Strives to balance global efficiency with local responsiveness. (D)</p> Signup and view all the answers

    Which of the following is NOT a characteristic of the Uppsala Model?

    <p>Centralized decision-making is prevalent in early stages of internationalization. (D)</p> Signup and view all the answers

    A company that seeks to reduce costs by leveraging economies of scale and standardizing its products across different markets would likely benefit most from which organizational structure?

    <p>Transnational structure (D)</p> Signup and view all the answers

    Which of the following is a potential weakness associated with the Export/International Division structure?

    <p>Limited ability to adapt to local market conditions. (A)</p> Signup and view all the answers

    Which of the following statements regarding the globalization process is most accurate?

    <p>Globalization has contributed to increased interconnectedness and interdependence among nations. (C)</p> Signup and view all the answers

    Which of the following is NOT considered a driver of internationalization for companies?

    <p>Environmental regulation (A)</p> Signup and view all the answers

    Which of the following entry modes into international markets involves the highest level of risk and potential for return?

    <p>Wholly owned subsidiary (A)</p> Signup and view all the answers

    What is meant by international factor market differences?

    <p>Variation in costs across countries (B)</p> Signup and view all the answers

    What are the primary motives for internationalization according to economic logic?

    <p>Cost saving, market access, competition (C)</p> Signup and view all the answers

    What does the term 'liability of foreigners' refer to?

    <p>Challenges faced due to unfamiliarity with local norms (A)</p> Signup and view all the answers

    Which strategy is associated with 'greenfield expansion'?

    <p>Starting a new operation from scratch (B)</p> Signup and view all the answers

    What does the term 'staging' involve in the context of internationalization?

    <p>The sequence and timing of entering foreign markets (A)</p> Signup and view all the answers

    What is a key differentiator in overcoming the liability of foreigners?

    <p>Operational excellence through low-cost production (D)</p> Signup and view all the answers

    Which of the following is NOT a vehicle for entering international markets?

    <p>Collaborative consumption (C)</p> Signup and view all the answers

    Which of the following describes a joint venture?

    <p>Collaboration with a local partner for shared equity (C)</p> Signup and view all the answers

    How can competition impact internationalization strategies?

    <p>It can shape the timing and method of market entry. (D)</p> Signup and view all the answers

    What is the main focus of location-specific practices in internationalization?

    <p>Aligning business practices with local market conditions (A)</p> Signup and view all the answers

    What can be an effect of neoliberalism shifting into protectionism?

    <p>Heightened barriers to foreign trade (B)</p> Signup and view all the answers

    Which of the following best describes the 'CAGE framework'?

    <p>A framework analyzing cultural, administrative, geographic, and economic distances (C)</p> Signup and view all the answers

    What is a primary goal of internationalization related to market access?

    <p>To enhance sales in foreign markets with similar needs (B)</p> Signup and view all the answers

    What does the term 'economic distance' encompass in market analysis?

    <p>Differences in market size and consumer wealth (B)</p> Signup and view all the answers

    Flashcards

    Wholly Owned Subsidiary

    A business owned entirely by one corporation, leading to higher returns and risks compared to franchising.

    Liability of Foreignness

    Challenges faced by foreign businesses due to unfamiliarity with the host country.

    Drivers of Sustainable Businesses

    Factors motivating businesses to adopt sustainable practices: instrumental, relational, moral, and legal motives.

    Instrumental Motive

    A business case approach to sustainability that focuses on profit and market expansion.

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    Relational Motive

    The social case for sustainability focusing on relations with stakeholders and legitimacy.

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    Moral Motive

    The normative case for sustainability driven by a sense of duty and higher values.

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    Legal Motive

    Compliance with regulations to avoid fines and legal issues in sustainability.

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    Stakeholder

    Individuals or groups that have an interest in the business's activities and outcomes.

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    Stakeholder Salience

    The importance of a stakeholder contingent on organization type, environment, and issue relevance.

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    Engaging Stakeholders

    The process of involving stakeholders, which should be voluntary and not forced.

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    Uppsala Model

    A theory of internationalization emphasizing gradual market expansion.

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    Export Division Structure

    An organizational layout primarily oriented around exporting activities.

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    Multi-Domestic Structure

    A decentralized organizational model tailored to local markets.

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    Transnational Structure

    A hybrid organization model balancing central and local needs.

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    International Adaptation

    The ability of a firm to change its products/services for different markets.

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    Cost Saving Driver

    A reason for internationalization focused on reducing operational costs.

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    Licensing Risks and Returns

    A method of international entry with specific financial risk dynamics.

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    Joint Venture Dynamics

    Combining resources of two businesses for shared risks and returns.

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    Theorisation

    Recognizing the broader applicability of specific actions or events.

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    Sustainable business practices

    Business actions integrating sustainability into daily operations.

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    Business ethics

    Beliefs regarding right and wrong specifically in business contexts.

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    Green fines

    Fines utilized for research and development in sustainability.

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    Corporate scandals

    Unethical actions by management leading to reputational damage.

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    International PESTLE

    A framework analyzing Political, Economic, Social, Technological, Ecological, and Legal factors in international contexts.

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    Neoliberalism

    An economic model emphasizing free-market principles, often challenged by emerging protectionism.

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    Cultural Distance

    Differences in values, beliefs, and behaviors between cultures that impact international business.

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    Cost Saving in Internationalization

    The motive for international expansion by reducing costs through accessing cheaper resources.

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    Market Access

    The ability to sell goods or services in foreign markets, increasing sales potential.

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    Joint Venture

    An equity alliance where two or more parties create a new business entity together.

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    Franchising

    A business model allowing one party to use another's trademark or trade name to sell products/services.

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    Trade Discouragement

    Government actions such as tariffs that limit international trade.

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    Economic Distance

    The disparities in economic conditions between countries affecting business decisions.

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    Operational Excellence

    A strategy focused on a company's ability to deliver products/services efficiently.

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    Technological Superiority

    A competitive advantage derived from advanced technology or innovations.

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    Greenfield Expansion

    The creation of a new, wholly owned subsidiary from the ground up in a foreign country.

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    Administrative Distance

    The difference in governance, policies, and customs that affects business operations between countries.

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    Common Ground

    Finding shared interests to connect with stakeholders.

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    Tailored Strategy

    Adjusting your approach based on stakeholder interests.

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    Frame the Issue

    Presenting a topic in a way that appeals to stakeholders.

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    Soft Power

    Using influence and persuasion rather than force.

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    Creative Incentive Systems

    Designing rewards that motivate participation in initiatives.

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    Building Capacity

    Providing stakeholders with necessary resources to act.

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    Mainstreaming

    Integrating sustainable practices into everyday operations.

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    Institutionalization

    Making sustainable practices widely accepted and lasting.

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    Strong culture

    Core values that are intensely held and widely shared within an organization.

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    Influence of culture

    Strong culture significantly affects members' behaviors and increases cohesiveness.

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    Factors influencing culture strength

    Culture strength is influenced by organization size, age, turnover rate, and clarity of values.

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    Weak culture consequences

    Weak cultures may result in higher turnover and lower performance.

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    Strong culture barriers

    Strong cultures can hinder change, diversity, and organizational mergers or acquisitions.

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    Study Notes

    Introduction to Management (Chapter 1)

    • Management is the art of getting things done through people.
    • Managers coordinate and oversee the work of their subordinates to achieve organizational goals.
    • First-line managers coordinate non-managerial employees directly involved in production or service.
    • Middle managers are between top managers and first-line managers, translating strategy into action.
    • Top managers make broad organizational decisions and establish strategies.
    • Organizations are deliberate arrangements of people working towards a shared purpose, including a structure.
    • Management involves coordinating and overseeing others to ensure efficient and effective completion of activities.
    • Efficiency means getting the most output from the least input (doing things right).
    • Effectiveness means doing the right things to achieve a goal (doing the right things).
    • Managerial roles are specific actions or behaviors expected of managers.
    • Management is universal, necessary in all organizations, regardless of size or type.
    • Managers are critical to organizational performance in complex, uncertain times.

    What is Management? (Chapter 1)

    • Poor management involves poor people skills, lack of safety strategies, poor organization, leadership, communication, control, decisions, motivation and safety culture.
    • Managers are responsible for planning, organizing, leading, and controlling.
    • These functions are not sequential, they overlap and are interdependent.
    • Business units are based on market segments.
    • Departments are based on functions.
    • The Porter's value chain explains activities in companies add immediate value to what is being sold.

    Activities in Companies (Chapter 1)

    • Skills required by managers include: conceptual (analyzing complex situations), interpersonal (working with groups), technical (job-specific knowledge).
    • Stressors for starting managers include bad work-life balance, different relationships with peers, high responsibility, increased workload, and being caught up in the middle.
    • Emotional intelligence is crucial for managers (self-awareness, self-management, social awareness, relationship management).
    • Managerial challenges include technology, social media, ethics, and political uncertainty.
    • Organizations can improve by dealing with organizational politics.

    Important Types of Organizations (Chapter 1)

    • Different business models such as small businesses (less structure), nonprofits (less tangible value), and the importance of accountability.

    Questions & Answers (Chapter 1)

    • Questions and answers related to managerial roles and responsibilities in different business situations are presented.
    • Example tasks from the questions include the following situations: If you are quickly painting the wrong wall.
    • The basic management functions.
    • The management function when describing employees.

    Looking Forward Thinking Backward (Chapter 2)

    • Classical management theory emphasizes specialization and efficiency, drawing on concepts like division of labor (Adam Smith).

    • Scientific management (Frederick Taylor) sought to optimize worker activities to improve productivity through task specialization and standardization.

    • General management principles (Henri Fayol) focused on management functions like planning, organizing, commanding, coordinating, and controlling in larger industrial settings.

    • Bureaucracy (Max Weber).

    • The behavioral approach emphasized the importance of human relations in organizations.

    -Mary Parker Follett: going human by focusing on conflict resolution and collaboration between people.

    • Hawthorne Studies (Elton Mayo): highlighted the importance of social relations and factors beyond money/task to motivate employees.

    -Chester Barnard: importance of cooperation.

    • Contemporary Approaches highlight the need for a contingency approach to management, considering environmental factors and technology (Edwards Deming, Pfeffer and Salancik, and the institutional approach).

    • Contingency approach to management is that there is no one set way to do things but different approaches are appropriate for different situations.

    • Management theories of various eras reflect the specific developments and challenges.

    Mapping External Influences (Chapter 3) and Structuring Organizations (Chapter 11)

    • External environment factors like PESTLE (political, economic, social, technological, legal, environmental) can profoundly influence organizations.

    • Environmental uncertainty is characterized by rates of change and complexity. Stable vs. Dynamic environments.

    • General environment factors are beyond company influence; task environment factors are directly influenced

    • Factors defining the organizational structure: Centralization: High centralization means concentration of decision making at the top, vs Decentralization: dispersion of decision making. -Formalization: Prescribed way of behavior is used. -Different Organizational Configurations (simple structure, machine bureaucracy, professional bureaucracy, divisionalized form, adhocracy).

    • Factors determining ethical and unethical behavior in organizations.

    • Different types of decisions(structured, unstructured, operational, strategical).

    • Decision making models (rational, bounded rationalitity, heuristics,cognitive biases).

    Effective Strategies (Chapter 9) in Organizational Settings.

    • An organization's strategy is the integrated plan for competing; including arenas for competition, vehicles for competition, staging for competition, economic logic for competition and differentiation
    • Different levels of strategy include corporate strategy (how a large company makes its goals), Business Unit level strategy (how a business unit within the larger organization makes its goals).

    Managing Sustainably (Chapter 6)

    • Corporate Social Responsibility is a holistic concept where business activities interrelate with ecosystems and stakeholders, for achieving goals both economically viable and stakeholder friendly with planetary boundaries.
    • Identifying Stakeholder salience is contingent upon type of organization, external environment.
    • Engaging/handling stakeholders to achieve a company's mission- includes a stakeholder engagement process.

    Managing Ethically (Chapter 6)

    • Business ethics deals with the fundamental beliefs about what is right and wrong in business.
    • Ethical dilemmas can involve conflict, choices between conflicting values, and difficult situations.
    • Understanding ethical decision making criteria (Utilitarian—what is best for the most, Moral rights—respect for fundamental rights, Justice—fairness and impartiality).
    • Identify individuals, and stakeholders interest. Ethical behaviour is contingent upon the decision making process and its structure.

    Internationalization (Chapter 4)

    • Internationalization strategies that use economic logic are Cost saving, Market expansion, Cultural differences, and Government practices).
    • Understand the Cage Framework.
    • Understanding different Types of Organizational Structure.
    • Understanding different forms of International Entry strategies.

    Leadership (Chapter 17)

    • Leadership is a process of influencing individuals or groups to achieve goals.
    • Leadership is about influencing people, vs. management which is about compliance
    • Effective leaders possess multiple leadership styles, considering contingency models.
    • Early leadership theories like trait theories, and implicit leadership theory. Contemporary theories like LMX, Path Goal, and Situational Leadership.
    • Various leadership styles (autocratic, laissez-faire, democratic, Achievement oriented, Country club, Task oriented).

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    Description

    Test your knowledge on the characteristics and implications of strong organizational cultures, as well as the strategies for mainstreaming sustainability. This quiz covers various aspects including benefits, disadvantages, and the process of institutionalizing sustainable practices within organizations.

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