Figure 12-3

question 25

Multiple Choice

Figure 12-3. Grey Inc.has many divisions that are evaluated on the basis of ROI.One division,Centra,makes boxes.A second division,Mantra,makes chocolates and needs 80,000 boxes per year.Centra incurs the following costs for one box:
Centra has capacity to make 700,000 boxes per year.Mantra currently buys its boxes from an outside supplier for $1.80 each (the same price that Centra receives) .
Refer to Figure 12-3.Assume that Grey Inc.allows division managers to negotiate transfer price.Centra is producing 600,000 boxes.If Centra and Mantra agree to transfer boxes,what is the ceiling of the bargaining range and which division sets it?

• A)$1.48; Centra
• B)$1.35; Centra
• C)$1.80; Mantra
• D)$1.35; Mantra
• E)$1.80; Centra

Identify cultural dimensions, such as power distance, individualism vs collectivism, and their impact on organizational behavior.

Understand the steps for managing cultural differences in the workplace.

Recognize the effects of low-assertion vs high-assertion cultures on communication and teamwork.

Understand the concept of cultural intelligence and its components.

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Definitions:

System of Authority

The organized and structured arrangement of power within a society, where rules and decisions are made.

Ideal Types

A concept developed by Max Weber, referring to an analytical framework that defines the purest version of a social phenomenon, without the influence of external factors.

Max Weber

A German sociologist, philosopher, and political economist known for his theories on the rationalization of society and his analysis of the structure of authority.

Theorist

An individual who formulates theories or hypotheses in a specific field of study, making contributions to academic and practical knowledge.