Test bank for principles of management international edition 12th edition by cassidy

CHAPTER Management’s Changing Environment: Globalization and Technology CHAPTER OBJECTIVES • Summarize the demographics of the new American workforce • Explain why America’s education and workplace readiness situation is a crisis • Define the term managing diversity, and explain why it is particularly important today • Discuss how the changing political-legal environment is affecting the practice of management • Discuss why business cycles and the global economy are vital economic considerations for modern managers • Describe the three-step innovation process, and define the term intrapreneur OPENING CASE The Changing Workplace: Looking Forward to the 2020 Workplace Employees in the 2020 workplace will use social media to communicate, connect and collaborate with one another around the world To be successful in this virtual work environment employees will need to develop a new mindset to thrive that incorporates the following abilities: • Social participation • Thinking globally • Ubiquitous learning • Thinking big, acting fast, and constantly improving • Cross-cultural power Ask your students what other abilities they would add to the list How prepared are they to thrive in this new workplace? LECTURE OUTLINE Present and future managers need to be aware of how things are changing in the world around them The general environment of management includes social, political-legal, economic, and technological dimensions Changes in each of these areas present managers with unique opportunities and challenges Forward thinking managers who see the big picture and can handle change will have a competitive advantage This chapter is designed to help students see the big picture and be better prepared to management constant change I THE SOCIAL ENVIRONMENT A Demographics of the New Workforce • Demographics are statistical profiles of population characteristics © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy Chapter 2: Management’s Changing Environment: Globalization and Technology • Figure 2.1 shows selected demographic shifts reshaping the U.S workforce from 2008-2018 • The U.S workforce is getting larger, increasingly female, more racially and ethnically diverse, and older 21 B America’s Education and Workplace Skills Crisis • “There’s a mismatch between what people can and what the economy needs them to do.” • American kids are not receiving the world-class education needed to compete in the global labor market • Data: 1/3 of 4th graders are proficient or better in reading, only 69% of high school students earn a diploma, we have a STEM crisis, the U.S ranks 12th with 40.4% of adults age25-34 with an associate degree or higher – Canada is #1 with 55.8% • Needed: On-the-Job Remedial Education in basic reading, writing, and math; English language instruction, general technical skills training and new hire readiness training C Myths About Older Workers • The U.S workforce is getting older, both demographically and because people are deciding either not to retire or to retire later • Older Americans tend to have a negative image in America’s youth-oriented culture • There are five stubborn myths about older workers, all of which have been proved inaccurate by research: A Myth: Older workers are less productive than the average worker B Myth: The costs of employee benefits outweigh any possible gain from hiring older workers C Myth: Older workers are prone to frequent absences because of age-related infirmities and above-average rates of sickness D Myth: Older workers have an unacceptably high rate of accidents at work E Myth: Older workers are unwilling to learn new jobs and inflexible about the hours they will work • Enlightened employers view older workers as an underutilized and valuable resource • Companies need to take proactive training steps to be all employees are treated fairly • Older workers need to their part to become more tech savvy and comfortable working with younger teammates © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy 22 Chapter 2: Management’s Changing Environment: Globalization and Technology Annotation 3a The Inequality Dilemma Questions: Where you stand on the debate over “You deserve only what you earn from working” versus “Everyone is entitled to a fair share of the wealth?” This is a personal opinion question that is quite likely to spark lively class discussion Encourage students to consider various perspectives including how a person who works hard for a company for many years and ends up without a job because the company goes out of business With unemployment rates averaging over 9% this person is quite likely to have a tough time finding another job Should they receive unemployment benefits and essentially get paid for staying home? Or should they live off what they’ve saved and suffer the consequences (poverty, homelessness) if they run out of money? What are the day-to-day management implications of growing income and wealth inequality in the U.S.? The wider the wage gap gets the harder it becomes for management Employees have become frustrated with pay cuts, furlough days, and reductions in staff that leave the remaining workers with more to in less time for less money Combine this reality with the extraordinary rise in executive compensation and you have a recipe for distrust and poor morale If not addressed, these negative factors can become toxic and truly poison a work environment leading to a costly decline in efficiency and effectiveness A Nagging Inequalities in the Workplace A Under the Glass Ceiling • Fifty-one percent of managers and professionals in the United States are now women • On average, professional women earn 77 cents compared to one male dollar • Women still don’t have access to the jobs at the top of the managerial ladder due to the glass ceiling, a term popularized in the 1980s to describe a barrier so subtle that it is transparent, yet so strong that it prevents women and minorities from moving up in the management hierarchy • In 2010, just percent of the Fortune 500 companies were headed by women However, this is not unique to the U.S in Canada only percent of their 500 largest companies have female CEOs and of the 100 biggest companies on the London Stock Exchange only are lead by female CEOs • One result of this is that many of the sharpest female executives are leaving the corporate ranks to start their own businesses, siphoning off this talent from larger corporations B Continuing Pressure for Equal Opportunity • Racial inequality in the workplace is underscored by the fact that the unemployment rate for African Americans is generally twice as high as that for whites during both good and bad economic times © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy Chapter 2: Management’s Changing Environment: Globalization and Technology 23 • Currently, women, African Americans, Hispanics, Native Americans, the physically challenged, and other minorities are overrepresented both in low-level, low-paying jobs and in unemployment lines • EEO and affirmative action are discussed in Chapter C Part-Timer Promises and Problems • Contingent workers are a category that includes a diverse array of part-timers, temporary workers, one-call employees, and independent contractors Also referred to as “just-in-time” or “flexible” workers, these people not have a long-term implicit contract with an employer • This group is appealing to employers because they are less expensive (being paid lower salaries and often enjoying no benefits) and because they can be let go in tough times without the repercussions of layoffs • The downside is that members of this group may have lower levels of job involvement • There is concern that growth in this area may lead to a permanent underclass of employees characterized by lower pay and lack of benefits VALUING DIVERSITY Another Crack in the Glass Ceiling Question: From both practical business and ethical standpoints, why is it important to get more women working in computer science? The technology field is one of the fastest growing job markets in the U.S and around the world We need women in computer science to be sure U.S companies have enough workers prepared in technology fields to remain competitive in the global economy There is also concern that the existing wage gap will become even larger than it is now Finally, as you will learn in subsequent chapters, a diverse team is usually far more efficient, effective, creative and innovative D Managing Diversity The United States is becoming ever more racially and ethnically diverse • Population figures from 2008 show that 12.5 percent were born outside the U.S • America is gradually becoming a country of minorities By 2050, whites are projected to represent 53 percent of the population, blacks 13.2 percent, Asians 8.9 percent, and Hispanics 24.3 percent • With a population growth rate seven times greater than that of any other group, Hispanics/Latinos passed African Americans in 2003 to become the country’s largest minority • An estimated 12 million undocumented people are living in the U.S illegally, with half from Mexico © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy 24 Chapter 2: Management’s Changing Environment: Globalization and Technology • Progressive organizations are taking steps to better accommodate and more fully utilize America’s more diverse workforce • Managing diversity is the process of creating an organizational culture that enables all employees, including women and minorities, to realize their full potential E More than EEO • Managing diversity builds on equal employment opportunity (EEO) and affirmative action programs (discussed in Chapter 6) • Comprehensive diversity programs are needed to create more flexible organizations where everyone has a fair chance to succeed • Diversity programs are both ethical and practical—a nation cannot waste any of its human potential and remain globally competitive F Promising Beginnings A number of diversity programs are in use today, including: • Teaching English as a second language • Creating mentor programs • Providing immigration assistance • Fostering the development of support groups for minorities • Training minorities for managerial positions • Training managers to value and skillfully manage diversity • Encouraging employees to contribute to and attend cultural celebrations and events in the community • Creating, publicizing and enforcing discrimination & harassment policies The scope of managing diversity is limited only by management’s depth of commitment and imagination Ask your students what extra steps they think a company, their executives and employees can take to broaden their knowledge and embrace diversity in the workplace II THE POLITICAL-LEGAL ENVIRONMENT Politics is the art (or science) of public influence and control The political system tries to balance competing interests in a generally acceptable manner Two key pressure points for managers in this area are the politicization of management and increased personal legal accountability A The Politicization of Management Today’s managers often find themselves embroiled in issues with clearly political overtones • Issues management (IM) is defined as the ongoing organizational process of identifying, evaluating, and responding to relevant and important social and political issues o IM serves as an early warning system for potential environmental issues It also serves as a firm’s coordinating and integrating force o IM is more important than ever with immediate access to social media malicious news can spread fast © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy Chapter 2: Management’s Changing Environment: Globalization and Technology o • 25 IM’s main contribution to management is its emphasis on systematic preparedness for social and political action General Political Responses The three general political responses for management are plotted on a continuum in Figure 2.2 o The middle of the continuum is managers who are politically inactive, or neutral They simply watch and wait • o Managers on the extreme left of the continuum actively defend the status quo o Managers on the right end try to improve performance and avoid attacks by identifying and responding constructively to emerging political-legal issues o In recent years, more managers are becoming proactive about political issues Specific Political Strategies There are four major strategies that managers can employ: B C o Campaign financing—unions, companies and political action committees (PACs) contribute to a candidate’s campaign or party for political influence o Lobbying o Coalition building o Indirect lobbying—including grassroots lobbying and advocacy advertising, the controversial practice of promoting a point of view along with a product or service Increased Personal Legal Accountability • Managers who make illegal decisions stand a good chance of being held personally accountable in a court of law • SarbOx (Sarbanes-Oxley Act) implemented in 2002 to increase accountability and impose stiffer penalties, including felony charges and prison time for securities fraud, to deter fraud • Managers are also being held personally responsible for the illegal actions of their companies Political-Legal Implications for Management Managers will be forced to become more politically astute, whether they like it or not On the legal side, managers are working to curb the skyrocketing costs of litigation • In a survey of large-company CEOs, 24 percent said litigation costs were their primary economic concern • One approach to address this problem is a legal audit, which is a review of all aspects of a firm’s operations to pinpoint possible liabilities and other legal problems • Alternative dispute resolution, which involves allowing a neutral third party to review the dispute and resolve the problem without going to court, is also helping to cut courtroom expenses © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy 26 Chapter 2: Management’s Changing Environment: Globalization and Technology III THE ECONOMIC ENVIRONMENT There is a close relationship between economics and management Economics is the study of how scarce resources are used to create wealth and how that wealth is distributed There are three aspects of the economic environment that deserve special attention for managers: jobs, business cycles, and the global economy A The Job Outlook in Today’s Service Economy, Where Education Matters • According to the U.S Bureau of Labor Statistics, the service economy is expected to generate 14.5 million new jobs between 2008 and 2018 With employment in management, business, and financial occupations projected to increase 11% by 2018 • Fields expected to experience job growth include scientific & technical, healthcare, finance, insurance, and construction • The traditional notion of the service sector as a low-wage haven is no longer valid • Education and networking skills are essential in getting a high-paying job today Annotation 3b Back to the Opening Case Questions: Do you have the 2020 mind-set described in the opening case? This is a personal opinion question that will require some self reflection Consider asking students to review each element listed and provide an example that demonstrates their 2020 abilities What are your main strengths and areas needing improvement to work effectively in the 2020 workplace? Continue with the results from the previous question to prepare an action plan for improving\learning skills and gaining knowledge necessary to be successful For students who have difficulty identifying their strengths recommend they read StrengthsFinder 2.0 or StrengthsQuest and complete the survey B Coping with Business Cycles The business cycle is the up-and-down movement of an economy’s ability to generate wealth; it has a predictable structure but variable timing • Cycle-sensitive decisions that depend on the ebb and flow of the business cycle (Figure 2.3) include ordering inventory, borrowing funds, increasing staff, and spending capital for land, equipment, and energy Timing is everything when it comes to making good cycle-sensitive decisions • Benefiting from Economic Forecasts Economic forecasting has come under fire lately for some widely publicized bad calls To help address this issue, a pair of widely respected forecasting experts recommend a consensus approach—surveying a wide variety of economic forecasts, factoring in track records, and taking an average or consensus © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy Chapter 2: Management’s Changing Environment: Globalization and Technology 27 BEST PRACTICES How Patricia Tate Took the Gamble out Her Tribe’s Casino Business Question: Why is it so hard for most managers to make decisions out of sync with the general business cycle? Use Patricia Tate along with stories from the recent recession as examples The key to success is anticipating rather than reacting to changes in market conditions The trick is to stay slightly ahead of the pack which ultimately can lead to a more effective and efficient organization Patricia Tate demonstrate this by building a resort during a down economy which allowed her to hire the best-quality labor and get the best prices on materials while the construction industry was slow and therefore heavily discounting Managers find it difficult to make decisions out of sync because they are often unpopular and may appear to be illogical at first glance Frequently managers are basing decisions on forecasts rather than reacting Most people want data or proof to support why a particular decision is a good idea Thus, decisions, particularly those that appear illogical or involve downsizing or cost containment efforts are often met with resistance as they are not popular with employees Managers really earn their pay during these difficult times C The Challenge of a Global Economy The global economy is impacting just about everyone both at home and at work A Single Global Marketplace • The new global economy must be viewed as the world moving from trade among countries to a single economy, one marketplace • The North American Free Trade Agreement (NAFTA), the 27-nation European Union, and the 153-nation World Trade Organization (WTO) represent steps toward that single global marketplace • The size of the global economy has expanded dramatically as a consequence of political and economic changes Globalization Is Personal It affects where we work, how much we’re paid, what we buy, and how much we pay Two personal aspects of the global economy are • Working for a foreign-owned company • Meeting world standards— o Global economic trends – higher quality, lower wages o Companies need to balance quality and costs to be globally competitive © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy 28 Chapter 2: Management’s Changing Environment: Globalization and Technology Annotation 3c A Global Brand Quiz Brand Home country Survey Results* Nokia Finland 4.4% (53.6% incorrectly said Japan) Lego Denmark 8.4% Samsung Korea 9.8% Ericson Sweden 9.9% Adidas Germany 12.2% *(1,000 students surveyed, the results indicate the percentage who answered correctly) Questions: When you buy something is a product’s country of origin more or less important than price and value? Personal opinion question, however, encourage students to consider the following: until the 1960s, most people owned a few changes of clothes – maybe enough to wear for a week without a repeat Then inexpensive clothing came along, courtesy of international trade, and closets went from feet long to the size of small bedrooms, complete with built-in furniture A household had one radio, and later one TV Then electronics started to come in from other countries at much lower prices, and most homes have at least as many televisions as there are people We eat grapes in the winter and bananas all year long International trade has changed almost every aspect of how we live What implications does your answer to the previous question have for the global economy and for the U.S economy? Two global economic trends are for quality standards to go up while wages go down However, we still worry today about lead paint, because toys imported from China have been discovered to carry dangerous levels of the stuff Given this, how to you feel about having your vitamins made in China? People are worried about jobs going overseas Does this affect your buying decisions? Are you willing to give up your luxuries in exchange for keeping those manufacturing jobs in the United States? Will U.S government agencies enforcing quality standards give you a greater sense of confidence and feeling of safety when buying products made in the USA? IV THE TECHNOLOGICAL ENVIRONMENT • Some people blame technology for environmental destruction and cultural fragmentation Others view technology as the key to economic and social progress • Table 2.1 shows technologies that are likely to affect our lives significantly in the future • Technology is defined as all the tools and ideas available for extending the natural physical and mental reach of humankind • Technology is facilitating the evolution of the industrial age into the information age, just as it once enabled the agricultural age to evolve into the industrial age • Organizations that use appropriate information technologies to get the right information to the right people at the right time will enjoy a competitive advantage © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy Chapter 2: Management’s Changing Environment: Globalization and Technology 29 • There are two aspects of technology that have important implications for managers: the innovation process and intrapreneurship A The Innovation Process The innovation process is defined as the systematic development and practical application of a new idea • A Three-Step Process o Conceptualization o Product technology, development of a working prototype o Production technology, involving the development of a profitable production process Green Management: Toward Sustainability Here Comes Biodegradable Plastic For Discussion: Relative to the three-step innovation process in Figure 2.4, what challenges lie ahead for Metabolix? Clearly, Metabolix has a good idea so they have advanced through the “Concept” step Next they must develop a working prototype – sounds like they have achieved this too Now, all that is left is the Production Technology step where they develop an efficient and effective production process where they can be profitable However, this is a much greater challenge than it may first appear Keep in mind that it takes 20 to 25 good ideas to result in one successful product They will need to define this new market to attract customers if they are going to be profitable with their new biodegradable plastic Consider the remaining questions which are all student opinion oriented Have students share their responses with the class to spark a lively discussion B • Innovation lag is the time it takes for a new idea to be translated into satisfied demand The trend is toward shorter innovation lags • Shortening innovation lag should be a high priority for modern managers Two sound management practices, goal setting and empowerment, create the sense of urgency necessary for speedier innovation • Concurrent engineering, or parallel design, is a team approach to product design Research, design, finance, and marketing specialists work together on new products from the beginning of the design process Promoting Innovation Through Intrapreneurship © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy 30 Chapter 2: Management’s Changing Environment: Globalization and Technology An intrapreneur is an employee who takes personal “hands-on responsibility” for pushing any type of innovative idea, product, or process through the organization • Today’s large companies need to foster a supportive climate for intrapreneurs if they want to maintain a competitive edge • An organization can foster intrapreneurship if it o Focuses on results and teamwork o Rewards innovation and risk taking o Tolerates and learns from mistakes o Remains flexible and change-oriented © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy Chapter 2: Management’s Changing Environment: Globalization and Technology 31 END OF CHAPTER FEATURES • Terms to Understand – encourage students to make use of the flashcards available on the student website Also, suggest they visit the Manager’s Toolkit section on the website for tips and suggestions for aspiring managers • Action Learning Exercise –Crystal Ball Gazing Have students predict the probability of occurrence for the ten items listed using the to 100 % scale Then have students respond to the questions for consideration at the end, and discuss the results in class Most of these are personal opinion questions However, a guided dialogue back to chapter content can be achieved, particularly with question – ask students to incorporate the three step innovation process into their response Consider a team\group assignment where each group adopts a different prediction and presents a management briefing on how we (managers) should prepare for the anticipated change • Ethics Exercise – Do The Right Thing, Should An Employer Tell a Muslim Woman Not to Wear a Head Scarf? The discussion questions and statements are quite likely to spark great debate within the class As they consider the question, “should there be any exceptions to dress codes?” Many will argue that the employee worked in the stockroom and therefore it shouldn’t matter what she wears Others will argue that managers must uniformly enforce the dress code or risk the perception of favoritism Encourage them to write a dress code policy for a clothing retailer that they think is professional, enforceable, fair, and without the potential for accusations of discrimination Another point students are likely to bring up is the fact the employee has a choice in where she works if she does not like the dress code she can find another job Consider the uniform servers must wear at Hooters restaurant Or the uniforms military personnel are required to wear (many women complain they are very masculine and not flattering) One key point to mention to students is that managers and employers should be sure to share the dress code during the recruitment and hiring process rather than waiting for a code violation to introduce the policy • Managers-In-Action Video Case Study – evo – Borderless Marketplace evo - A Borderless Marketplace Length: minutes and 58 seconds Topics: Global economy, political impact, trade agreements, taxes, duties, tariffs, technology, international business, partnerships, strategic planning, and resource management Company Background From the evo website January 6, 2011 http://www.evo.com/ evo explores the collaboration between culture and sport by seamlessly joining art, music, streetwear, skateboarding, snowboarding, skiing and wakeboarding Our aim is to bring all things relevant to the urban, action sports lifestyle into one creative space Whether it is on the website, on the phone or in our store, our aim is to make all who come into contact with evo feel welcome and excited about their experience © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy 32 Chapter 2: Management’s Changing Environment: Globalization and Technology evo's retail space in Seattle is more than just a store, it's our headquarters and the home of 80+ dedicated team members Since the website launched in 2001, after lots of coffee, countless late nights, 100's of powder days, and early morning sessions on the lake, we are still focused on being a great retailer and asset to the community Passion for building community is a driving force; both on a national level and locally in Seattle We are excited about the opportunity to become community anchors in urban settings with diverse groups of people who share common interests Music events, movie premiers, art exhibitions, benefits to help children in need, partnerships and simply providing a great place in a central location are all ways that we work to build and strengthen community It is no mistake that our location is a venue, art gallery, and retail space all wrapped into one Website post on July 23, 2010 from Bryce Phillips: Time flies We launched the site almost 10 years ago and have gone through a tremendous amount of change as a company I often refer to the run up until 2008 as "Childhood" We ran full speed ahead, made some crazy decisions, and built a brand and a company - often with brute force We threw parties, worked 24 hour days and while reckless at times, and somehow made it through the years of hyper growth and organizational change Nearly two years ago today, we lost a close friend and central figure at evo and jumped overnight into "Adolescence" We never experienced the fun/awkward part of this stage as we found ourselves in the middle of a very tumultuous time 2008-2009 happened so fast with the passing of Christine, the opening of a distribution center, and the crash of the economy that the extent of the damage left behind - more appropriately carried forward was almost impossible to comprehend It was all about survival as we watched many in our industry and out in the broader world, cease to exist There's no sugar-coating the experience We lost and laid off friends, moved backwards financially, and had to dig deep in order to dance through a time when we'd be stretched as thin as we possibly could be This time would test us as well as the fabric that we had worked so hard to weave since growing from employees to 80 over the previous years Just about a year ago, as we moved into the second half of adolescence, we cut costs, put a plan in place, and executed it with discipline day in, day out There are endless stories that come to my mind, many of which may never be told, as we moved through the fundraising process, worked with the Board of Directors and investors and tried to juggle a hundred balls, all while growing 80% over the two year period My heart often raced knowing all that was at stake while also remembering what evo meant to the community, employees and industry and how immense the opportunity was for us as long as we successfully navigated what were some very rough waters An extraordinary amount of credit needs to go to every person at evo who put forward their best effort and made last year a success Everyone felt the pressure and watched as many businesses out there couldn’t sustain Moreover, we continued to focus on our customer and to make sure all of the touch-points that work together to differentiate the evo brand were still in place We have a long list of events, partnerships, new relationships, and acknowledgements that support that commitment We were able to rally with our community and friends and raised money for the tragedy in Haiti We also partnered with Chihuly and © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy Chapter 2: Management’s Changing Environment: Globalization and Technology 33 K2 to benefit Big Brothers Big Sisters raising over $10,000 for at risk youth evo's transition into what will be the next phase directly parallels the lives of many of us that work here, some of whom have been here from the start People are getting married, having kids, and buying houses While childhood was fun and we learned a lot along the way, we are all moving into the next chapter of our lives As the company moves into what will surely be a new era, it’s very clear that we are verging on an exciting run How appropriate that our name evo is rooted in the word “evolution”, speaking to the fact that we are always changing, progressing, moving forward It speaks to the importance of keeping a focus on the ever-changing culture and it also speaks to the sports and products that we are passionate about Change is inevitable, but when it’s rooted solidly in our values and core purpose, we know that the future is bright While daunting, it’s also what keeps each of us engaged, enthusiastic and committed to a better future 2001-2010 has defined evo so far, as will the years ahead We will continue to set all sights on strengthening our community with great care for all with whom we come in contact going far beyond the simple transaction When it’s all said and done, it always comes down to the people and I want to express how thankful I am to all of our customers, employees and partners We have all worked very hard to set the stage for a bright future and we can’t wait for what’s to come Cheers, Bryce Phillips Synopsis of Video “evo explores the collaboration between culture and sport by seamlessly joining art, music, streetwear, skateboarding, snowboarding, skiing and wakeboarding” this quote from the evo website describes this Seattle, Washington based business perfectly The only element it leaves out is the growing company’s international component In this video, Bryce Phillips discusses his strategies to compete in what he describes as a global environment and borderless marketplace He shares his plans for growth, expansion and diversification, all in the context of the global marketplace Phillips also mentions some of the challenges he faces operating in the global economy There are financial, political and technological challenges that create another layer of complexity The video begins with a chance encounter in Japan where he meets Evo customers from around the World Consider having students visit the Evo website to learn more about their mission, values, and commitment to social responsibility © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy 34 Chapter 2: Management’s Changing Environment: Globalization and Technology Previewing Questions Why is it important for managers to understand business cycles and the global economy? Today, the global economy impacts just about everyone Managers need to understand business cycles to remain competitive By anticipating and forecasting, managers can make timely decisions about hiring, purchasing & inventory, as well as financing Each of these factors can be influenced by what is happening around the world from labor issues to financial crisis What impact does the global economy have on companies and their labor force? The global economy has created a great deal more pressure on companies and how they manage human resources The fact that outsourcing and offshoring are not limited to manufacturing creates threats and opportunities Companies seeking to lower their labor costs in either the service sector or manufacturing may move jobs overseas However, experts caution that quality standards, although improving, may not be up to par in some industries How does a borderless marketplace (economic globalization) affect you personally? Personal opinion question Students are likely to realize that most of the clothes they are wearing were manufactured overseas, however, many were probably designed here in the U.S Everyone should realize that with a borderless marketplace comes greater access to a wider variety of products and services However, buyers need to be cautious about the quality and be sure they are transacting with a credible business over a secure internet commerce site Postviewing Questions Although only about 5% of evo’s sales are shipped outside the U.S., the international component of their business impacts its management team If you were the manager of evo’s customer service team what factors would you consider in setting your employees up for success? International business is a small percentage of sales yet it is the most complex demanding the greatest amount of human interaction Therefore it would be beneficial to train a core team of customer service reps who will be designated to handle international sales The brands that can be shipped outside the U.S are limited by dealer agreements If evo were to violate one of these agreements it could jeopardize the dealer relationship so it is essential that everyone in the company know the brand restrictions including the folks working in packing\shipping The policies, laws and procedures related to taxes, duties, and shipping are complex and the training can be limited to a smaller group who will be responsible for handling these calls In addition, if financially feasible, try to send employees to experience another country’s culture first hand They will return with fresh ideas and will be better prepared to work with international customers How has technology helped evo grow and what challenges has it created? © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy Chapter 2: Management’s Changing Environment: Globalization and Technology 35 Having an online presence has allowed evo to become a global business with customers from around the world shopping their website It also creates challenges as they are not always able to sell their products to all of these customers In addition, due to time differences around the world evo is unable to provide customer service representatives during “daytime shopping hours” in other countries as evo is not open 24 hours a day days a week What you think Bryce Phillip meant when he said, “Everything we are doing is connected globally?” Everything we buy, sell or invest in is connected globally Particularly in evo’s business where so many of their customers also travel around the world – as evidence by the story from the hotel lobby Another good example he gave was of the shirts made in Bali but sold in Nordstroms His statement reinforces what we have learned in this chapter – the global marketplace impacts just about everyone Is the statement above true for all U.S based companies or just company’s like evo? Explain why or why not Although his statement clearly impacts companies like evo that have a global marketplace, it is also true for most organizations as more and more of the products and services we purchase come from the global marketplace The U.S trade deficit currently reflects a trend where we are importing more than we export However, as companies like evo expand and trade agreements are formed, more U.S based companies will enter this market space CLOSING CASE: SOLUTION How Wal-Mart Won Chicago For discussion: Demographics is a significant part of Wal-Mart’s strategy A small percentage of their stores are located in big cities Most are located in the suburbs where land is cheaper, unions are less powerful, and people need jobs Elected officials (particularly the mayor) along with lobbyists and a powerful union who were all anti “big box” created a major road block for Wal-Mart However, The recession was a major factor in opening the doors to Chicago Because of the high unemployment rate there are higher levels of poverty The union was willing to negotiate because they had members who needed work The politicians were willing to negotiate because the unemployed were also living in poverty Wal-Mart was willing to negotiate because they wanted to place a supercenter where it knew there would be great market potential Wal-Mart could have handled the situation better by approaching the stakeholders with the final incentive package including wages that are higher than minimum wage early in the process rather than after time consuming and emotionally charged battles with the union and elected officials Personal opinion Have students divide in teams Assign each team to represent a different stakeholder group (community members, unemployed, employed, unions, elected officials, Wal-Mart) Have them present a persuasive position related to Wal© 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy 36 Chapter 2: Management’s Changing Environment: Globalization and Technology Mart Consensus building may be difficult but this will be good practice for future managers INSTRUCTIONAL TIPS Discuss the five myths about older workers Ask your students whether any of them are true Does the research evidence affect their opinions? What myths they think exist in people’s perceptions of younger workers? Ask them to compare their attitudes toward older workers to others’ attitudes toward themselves Does this perspective make a difference to them? Assuming that females are well represented in your class, a general discussion of the male-versusfemale pay and status inequities that are documented in Chapter can be a lively way of eliciting comments about important issues The significance of innovation lag can be highlighted in class by having students identify potentially valuable but currently underdeveloped ideas they have heard or read about, such as hydrogenpowered cars, roof-top solar cells for electric power generation, two-way television, personal robots, cancer vaccines, and genetically engineered “super” crops and animals The significance of the impact of innovation lag on our lives can also be illustrated by using medical research as an example Innovations under study today may provide an AIDS vaccine or a cure for cancer People are living who used to die, thanks to the medical innovations already in place This is an example of a case where reducing innovation lag is literally a life-and-death issue ADDITIONAL DISCUSSION/ESSAY QUESTIONS Why is managing diversity still important today, and what major barriers are organizational diversity programs likely to encounter? Why has management become politicized? What options are open to management when it comes to being politically proactive? What can management to prepare for the increasingly global marketplace? What are the steps in the innovation process? What is innovation lag, and what can management to reverse it? Discussion Starter: Sustainability Sustainability is often narrowly defined as being “Green” or environmentally friendly In fact, sustainability encompasses the environment, the economy, and society As a manager you will likely be encouraged to implement sustainable business practices For Discussion: Do you see sustainability as an enduring concept or just a passing fad? Explain What can you personally to promote sustainability? What best practices business managers need to follow to achieve sustainability? As someone who is inheriting the earth’s future, what you think of how things have been handled in the past? What changes would you like to see on a global level to deal with this problem? © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy Chapter 2: Management’s Changing Environment: Globalization and Technology 37 BONUS VIDEOS BIZFLIX VIDEO CASES FROM THE TEXTBOOK WEBSITE Discussion Questions and Guide Chapter Video Case: Charlie Wilson’s War VIDEO CASE SYNOPSIS Democratic Congressman Charlie Wilson (Tom Hanks) from East Texas lives a reckless life that includes heavy drinking and chasing attractive women The film focuses on Wilson’s involvement in the Afghanistan rebellion against the Soviet troop invasion in the 1980s Wilson becomes the unlikely champion of the Afghan cause through his role in two major congressional committees that deal with foreign policy and covert operations Houston socialite Joanne Herring (Julia Roberts) strongly urges the intervention CIA agent Gust Avrakotos (Philip Seymour Hoffman) helps with some details This sequence appears early in the film after a scene showing the characters drinking and partying in a hot tub It opens with a shot of the Capitol Building Congressman Charlie Wilson talks to his assistant Bonnie (Amy Adams) while walking to chambers for a vote The sequence ends after Wilson enters the chambers VIDEO CASE DISCUSSION QUESTIONS AND SUGGESTED ANSWERS Of the various types of environments that managers may be involved in, which is most prominent in this video? The film deals primarily with the political-legal environment, as opposed to the social environment, the economic environment, or the technological environment Students should understand that both politics and the law hold a great deal of influence over the way business is conducted, and that many of the issues of concern to business managers will be identified, evaluated, and possibly resolved through political and legal channels Discuss how the Bonnie character is representative of women in the workplace Although there are many women in prominent positions within the U.S government, Bonnie is an assistant to a Congressman, which, according to statistics, is representative of the fact that most working women still occupy lower level positions Students should be able to demonstrate their understanding of this “glass ceiling,” as well as an understanding of the pay gap between men and women At one point in the film clip, Wilson says he is “on the other side” of ethics What does he mean by this? Discuss the significance of this statement Wilson is clearly surprised that he is being assigned to the ethics committee From this, we can surmise that he is not known for ethical conduct, and is perhaps even somewhat proud of his reputation Students will have differing opinions about whether this is acceptable in a © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy 38 Chapter 2: Management’s Changing Environment: Globalization and Technology politician, which can extend to their attitudes toward the value and importance of ethical conduct among businesspeople BONUS LECTURE Change Leaps Change in civilization over the years has been both gradual and sudden Many of the most significant changes have occurred relatively quickly, with a scientific discovery, invention, or other shift Certain discoveries or inventions over the years have created dramatic shifts in the way people live, learn, work, and play Some are from so long ago that we take them completely for granted; others are recent enough that you or your parents may remember experiencing them A few of the most significant follow Several of these may not seem to have much to with business, but they Business, after all, is the tool we use to exchange things of value As you review these, consider what “business” was like before and after the changes • The shift to farming and domesticated animals as a food source Before that, people survived by hunting and gathering This led to a nomadic existence, with only oral traditions, and a minimum of material goods Most of people’s time was spent in survival activities • The development of the movable-type printing press Written words were suddenly not just the property of a wealthy, educated few Books became available, then plentiful Literacy changed from a rare situation to an expected one Communication was expanded from the perspective of both time and distance Learning began to be valued by a much broader base of the population • The invention of the assembly-line approach to production Before this, most products were expensively custom built or homemade Assembly lines produced goods that most people could afford Economies shifted from agrarian to industrial, and home-built products such as clothes and furniture were purchased ready-made instead This started the consumer age • The invention of the silicon microchip This led to a cheap and easy source for information storage and retrieval, launching our information age You probably own a PC that is more powerful than the computers that put people on the moon in the 1960s In this new millennium, who knows what leaps we will make that will forever change the face of our world Every one of those listed above had an impact on society and consequently on business For Discussion The following are some leaps that could occur during this millennium For each, consider the impact on society and on business Who will benefit and who will be hurt, at least in the short run? The development of a cheap source of energy that is virtually unlimited, yet small enough to fit in a pocket The development of a “transporter,” similar to the one used on “Star Trek,” that could ship both goods and people across the street or around the world cheaply and instantaneously The development of special memory chips that could be implanted in the human brain, designed to impart specific skills and knowledge without the need to “learn” in the standard way The development of an easily accessible information source, available virtually free simultaneously to anyone in the world, that allows both information dissemination and simultaneous © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy Chapter 2: Management’s Changing Environment: Globalization and Technology 39 communication with anyone who has the proper equipment (Wait! That one is already taking shape on the Internet! How will it change our future?) BONUS ACTIVITY COOPERATIVE LEARNING TOOL: INSTRUCTOR NOTES Family Issues in the Workplace Despite advances in the perception of working women, one area that has not been gender-neutralized is the role of working women with regard to family and home care Many working mothers are still expected to provide the same level of support at home as mothers from a generation ago who didn’t work outside the home The following exercise is designed to test how gender-neutral the attitudes of your students actually are when it comes to work/family balance issues To administer the test, distribute form F to all your students After they respond, calculate mean scores for the entire class and for male and female respondents The lower the score, the more gender-neutral the attitudes of the respondents Chances are that the scores of the women in the class will be lower than the men’s scores To illustrate that even students who consider themselves liberal may not be totally gender-neutral, distribute form M of the test, and compare the changes in students’ scores from those for form F To stress any generational changes, students may be encouraged to give these tests (form F first, then form M) to their parents or other older adults, to compare the answers to theirs You may want to experiment with giving form M first, to see whether there is any difference in the answers or in the discussions as a result of the change © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy 40 Chapter 2: Management’s Changing Environment: Globalization and Technology FAMILY ISSUES IN THE WORKPLACE (FORM F) For each of the following questions, indicate your level of agreement, using the scoring system shown below Totally disagree Disagree somewhat Neither agree nor disagree Agree somewhat Totally agree In order for a woman to have both a career and a family, she will have to compromise in one area or another It is not reasonable to ask a woman with small children to take a promotion that would involve a lot of travel Many women would prefer to stay home and raise their children if they could afford to Companies should provide a separate “mommy track” for women who are working mothers to help them more effectively balance work and family life and in recognition that they will not be able to contribute as much to the organization while their children are small Working mothers should receive special consideration in the workplace because of additional family responsibilities at home Paid maternity leave should be at least an optional benefit for all working women TOTAL SCORE: © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy Chapter 2: Management’s Changing Environment: Globalization and Technology 41 FAMILY ISSUES IN THE WORKPLACE (FORM M) For each of the following questions, indicate your level of agreement, using the scoring system shown below Totally disagree Disagree somewhat Neither agree nor disagree Agree somewhat Totally agree In order for a man to have both a career and a family, he will have to compromise in one area or another It is not reasonable to ask a man with small children to take a promotion that would involve a lot of travel Many men would prefer to stay home and raise their children if they could afford to Companies should provide a separate “daddy track” for men who are working fathers to help them more effectively balance work and family life and in recognition that they will not be able to contribute as much to the organization while their children are small Working fathers should receive special consideration in the workplace because of additional family responsibilities at home Paid paternity leave should be at least an optional benefit for all working men TOTAL SCORE: © 2013 Cengage Learning All Rights Reserved This edition is intended for use outside of the U.S only, with content that may be different from the U.S Edition May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p/Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy ... duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p /Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy 22 Chapter... duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p /Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy Chapter 2:... duplicated, or posted to a publicly accessible website, in whole or in part From https://testbankgo.eu/p /Test-Bank-for-Principles-of-Management-International-Edition-12th-Edition-by-Cassidy 24 Chapter