MGMT404 Quiz 2

What was one of the key reasons for the DaimlerChrysler merger failure?

• Differences in cultural communication styles between German and American employees
• Financial mismanagement that led to bankruptcy
• Lack of technological innovation in Chrysler’s production line
• The companies operated in completely separate markets

How did Daimler-Benz’s communication style create challenges in the merger?

• German executives favored one-way hierarchical directives, while Chrysler valued open discussion
• Chrysler executives refused to speak German, which led to misunderstandings
• Both companies used participatory discussions but had different leadership approaches
• Daimler executives preferred email communication, while Chrysler relied on written memos

How could Hofstede’s Uncertainty Avoidance dimension explain Rover-Honda’s failed collaboration?

• High uncertainty avoidance in one company led to rigid planning and resistance to flexibility
• Both companies had low uncertainty avoidance, which made them avoid risk-taking
• The collaboration failed due to different levels of indulgence vs. restraint
• The companies had the same approach to risk but different decision-making processes

According to the GLOBE study, what does the "In-group Collectivism" dimension measure?

• The degree to which individuals express pride and loyalty within groups like families and organizations

• The extent to which society values assertiveness and competition

• The preference for structured environments and clear rules

• The extent of acceptance of unequal distribution of power within organizations

How did Tim Hortons successfully adapt its business strategy in India?

• By maintaining international pricing and menu offerings across all locations
• By incorporating local flavors into its menu while keeping its coffee quality consistent
• By targeting only expatriates and high-income consumers
• By limiting store expansion to avoid market risks

Why did Tim Hortons face challenges in rapidly expanding across India?

• A lack of consumer interest in international coffee brands
• Difficulty in securing prime real estate locations and hiring trained staff
• Resistance from local competitors leading to legal restrictions
• Inability to keep up with increasing demand for online orders

In Kluckhohn & Strodtbeck’s model, which cultural orientation would support prioritizing environmental sustainability over profit?

• Mastery over nature
• Harmony with nature
• Subjugation to nature
• Individualism

How does high power distance affect communication in multinational organizations?

• Employees may feel hesitant to directly communicate with superiors
• Teams become more collaborative and encourage open discussions
• Employees feel empowered to challenge managerial decisions
• Communication becomes less hierarchical and more participatory

Why might relationship-focused cultures struggle with digital communication like email?

• The absence of non-verbal cues makes trust-building more difficult
• They rely primarily on written contracts for communication
• They do not use digital tools for business interactions
• They prioritize efficiency over relationship-building

What is a key strategy for improving cross-cultural collaboration in global teams?

• Adapting communication and leadership styles to fit different cultural expectations
• Standardizing business practices globally without cultural adaptation
• Enforcing a single corporate language to eliminate communication barriers
• Avoiding cultural training to prevent overcomplicating business interactions