According to the Abdallah and Keller Study on Performance Evaluation

question 20

Multiple Choice

According to the Abdallah and Keller study on performance evaluation systems of MNEs,

• A) budgets were equally important as a measure of foreign subsidiary and foreign subsidiary management performance.
• B) ROI is no longer an important technique of evaluating performance.
• C) Companies tend to evaluate foreign subsidiary performance but not performance of foreign management.
• D) foreign currency is not a critical element in performance evaluation of MNEs due to widespread use of the current rate method.

Understand the importance of strategy formulation and strategic planning in organizational performance and its adaptation to dynamic environments.

Grasp the interrelation among different performance determinants and their collective impact on organizational effectiveness.

Acknowledge the trends and advantages of shared power and executive teamwork in top management.

Realize the theoretical perspectives on leadership and their application in organizational contexts.

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Definitions:

Competitive Price-Searcher Market

A market structure where firms have some power to set prices because their products are differentiated, but must consider the prices of competitors.

Losses

The negative financial result from business activities when costs exceed revenues.

Market Message

A communication or signal sent through the movement in prices, volumes, or other market indicators that reflects the collective actions and sentiments of market participants.

Entrepreneurial Process

A sequence of steps starting from ideation to the creation and management of a new business venture.