BMGT 3310 EXAM 2 Review
45. In the context of planning from top to bottom, the top management is responsible for developing _____. a. standing plans b. tactical plans c. operational plans d. strategic plans
d. strategic plans
43. _____ is defined as the determination to achieve an objective. a. Goal setting b. Satisficing c. Groupthink d. Goal commitment
d. Goal commitment
49. Which of the following is a disadvantage of electronic brainstorming? a. It creates evaluation apprehension. b. Ideas do not remain anonymous. c. Outgoing individuals can find it difficult to express themselves in writing. d. It causes production blocking when one has to wait to present an idea.
d. It causes production blocking when one has to wait to present an idea
21. The team leaders in the production department at Virginiastalk, an automobile manufacturer, follow standing plans that specify the detailed steps they are expected to follow when an export order gets canceled. Given this information, the standing plans in this scenario can be referred to as _____. a. Artifacts b. Prototypes c. Heuristics d. Procedures
d. Procedures
29. In the context of group decision making, which of the following is a difference between the nominal group technique (NGT) and the Delphi technique? a. Unlike the NGT, the Delphi technique requires all panel members to gather together in one place. b. Unlike the Delphi technique, the NGT produces better decisions than the devil's advocacy and dialectical inquiry approaches. c. Unlike the Delphi technique, the NGT increases a-type conflicts. d. Unlike the NGT, the Delphi technique involves creating a series of open-ended questions for group members.
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31. Which of the following is the first step in the process of management by objectives? a. Collectively selecting goals b. Discussing possible goals c. Jointly developing tactical plans d. Reviewing progress regularly
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11. SkyScape, a company that manufactures computer processors, launched a new product called ChipOne. This launch was a countermove against another product launched by GreenChip, SkyScape's competitor. Which of the following strategies was used by SkyScape to defend its market share? a. A response strategy b. An amalgamation strategy c. A recovery strategy d. An acquisition strategy
a. A response strategy
41. _____ is a competitive advantage that other companies have tried unsuccessfully to duplicate and have, for the moment, stopped trying to duplicate. a. Sustainable competitive advantage b. Comparative advantage c. Revealed competitive advantage d. Core competency advantage
a. Sustainable competitive advantage
42. _____ refers to the emotional reactions that can occur when disagreements become personal rather than professional. a. A-type conflict b. C-type conflict c. Channel conflict d. A cognitive conflict
a. A-type conflict
1. Edgar, the production manager at a textile factory, has noticed a decline in the production capacity of the factory. He wants to understand the reason behind this trend and make a decision on how to resolve the issue. In the context of rational decision making, which of the following is the first step that Edgar should ideally take? a. Identifying and defining the problem b. Computing the optimal decision c. Generating alternative courses of action d. Identifying decision criteria
a. Identifying and defining the problem
47. Which of the following statements is true of direct competition? a. It is determined by market commonality and resource similarity. b. It encourages the production of perfectly imitable resources. c. It uses cost leadership to produce a specialized product for limited customers. d. It minimizes the effects of industry competition.
a. It is determined by market commonality and resource similarity.
37. Which of the following best defines a distinctive competence? a. It is what a company can make, do, or perform better than its competitors. b. It is creating or acquiring companies in completely unrelated businesses. c. It is the extent to which a competitor has similar amounts and kinds of resources. d. It is the competitive move designed to reduce a rival's market share or profits.
a. It is what a company can make, do, or perform better than its competitors.
19. At a canning factory, employees are strictly instructed to wear a uniform while working around the canning machines. Which of the following kinds of standing plans is exemplified in this scenario? a. Rules and regulations b. Norms c. Policies d. Purpose statements
a. Rules and regulations
41. _____ are defined as a cushion of extra resources that can be used with options-based planning to adapt to unanticipated changes, problems, or opportunities. a. Slack resources b. Strategic groups c. Secondary firms d. Standing plans
a. Slack resources
33. _____ are used by managers to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage. a. Strategic reference points b. Retrenchment strategies c. Process maps d. Strategic business units
a. Strategic reference points
38. In the context of Porter's five industry forces, the threat of new entrants can be defined as: a. a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry. b. a measure of the intensity of competitive behavior among companies in an industry. c. a measure of the ease with which customers can find substitutes for an industry's products or services. d. a measure of the influence that customers have on the firm's prices.
a. a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry.
3. The chief financial officer of Benjampt, a manufacturing company, disagrees with the rest of the senior managers about the renewal of the company's manufacturing license. They have conflicting interests because of their different career experiences. However, they are willing to weigh their opinions and arrive at the best possible solution. In this scenario, the conflict among the senior members best exemplifies _____. a. a-type conflict b. affective conflict c. c-type conflict d. channel conflict
a. a-type conflict
4. The marketing managers of Point Inc. are having a conflict over how they can improve the marketing strategies of their company. The managers are disagreeing on the views presented by each other based on their experiences and knowledge. In this scenario, the managers are engaging in _____. a. a-type conflict b. a personal conflict c. c-type conflict d. channel conflict
a. a-type conflict
18. Henncom, a company that manufactures computer spare parts, runs its operations in a small office. Owing to the increase in the demand for its products, the company needs to hire more employees. Instead of opting for the temporary solution of reducing each employee's workspace to accommodate more employees, Carl, the operations manager, decides to go with the optimal solution of shifting the company to larger premises. In this scenario, Carl is most likely _____. a. maximizing b. counterconditioning c. overregularizing d. satisficing
a. maximizing
38. A _____ is a type of operational plan that saves managers' time because once the plan is created, it can be used repeatedly to handle frequently recurring events. a. standing plan b. budget plan c. single-use plan d. tactical plan
a. standing plan
Pagent, a company that manufactures watches, introduces a new range of watches with a safety application programmed into it. This application is designed especially for women and helps them alert people in case of danger. In the context of innovation streams, which of the following concepts does this scenario best illustrate? a. A technological discontinuity b. Technological lockout c. Technological singularity d. A technological barrier
a. A technological discontinuity
Curtab, a company that manufactures digital watches, implements marketing strategies to attempt to eliminate analog watches from the market and thereby increase the market share of the company. To counter this, analog watch manufacturers introduce new advertising campaigns. In the context of innovation streams, which of the following concepts does this scenario best illustrate? a. Design competition b. Technological lockout c. Technological substitution d. Design iteration
a. Design competition
Elotrik, a company that manufactures and supplies epilators, implements a marketing strategy to popularize its epilators and replace razors in the market. To counter this and stay in the market, the razor manufacturers introduce new offers and discounts. In the context of innovation streams, which of the following concepts does this scenario best illustrate? a. Design competition b. Technological lockout c. Technological substitution d. Design iteration
a. Design competition
Mozbert is a company that manufactures and supplies wireless headsets. It started an online advertising campaign that explains the advantages and ease of using wireless headsets over wired headsets. As a mitigation plan, Beloway, a wired headset manufacturer, launched new offers and discounts to retain its customers. In the context of innovation streams, which of the following concepts does this scenario best illustrate? a. Design competition b. Technological lockout c. Technological substitution d. Design iteration
a. Design competition
13. Jameson&Dawson has four strategic business units (SBUs)—agriculture, automobiles, advertising, and accommodations. The agriculture industry is a rapidly growing industry, and Jameson&Dawson's SBU holds majority of the market share in the industry. Hence, the company earns large profits from its agriculture unit and invests majority of its funds in it. In the context of the BCG matrix, which of the following categories of SBUs best describes the agriculture unit? a. Stars b. Cash cows c. Question marks d. Dogs
a. Stars
25. Bennyson Corp. has five strategic business units (SBUs)—information technology, construction, education, consumer products, and energy. Its energy unit has a large market share in the industry and generates the majority of its profits. Bennyson is also considering investing more funds into the unit as the industry has been rapidly growing. In the context of the BCG matrix, which of the following categories of SBUs best describes the energy unit? a. Stars b. Cash cows c. Question marks d. Dogs
a. Stars
9. Jem Dons has three strategic business units (SBUs)—smartphones, healthcare, and accounting. Its smartphone unit is its most profitable unit and is the current market leader in the rapidly growing industry. In the context of the BCG matrix, which of the following categories of SBUs best describes the smartphones unit? a. Stars b. Cash cows c. Question marks d. Dogs
a. Stars
Cinebravos, a television manufacturer in Ashtemston, observes that its customers have stopped purchasing its CRT television sets and that they have begun purchasing its LED and LCD television sets. It hence stops manufacturing CRT television sets entirely. In the context of innovation streams, which of the following concepts does this scenario best illustrate? a. Technological substitution b. Technological lockout c. Technological singularity d. Technological determinism
a. Technological substitution
To compete with other organizations in the industry and to boost employee morale, Mangosanta, a fashion designing company, installs touchscreen sketching boards on the walls of meeting rooms. These sketches are automatically mailed to all the participants once the meeting is completed. This scenario best illustrates _____. a. organizational innovation b. corporate entropy c. reverse engineering d. agile development
a. organizational innovation
39. According to the Boston Consulting Group (BCG) matrix, _____ are companies that have a small share of a fast-growing market. a. question marks b. cash cows c. stars d. dogs
a. question marks
45. A(n) _____ is a countermove, prompted by a rival's attack, that is designed to defend or improve a company's market share or profit. a. response b. attack c. recovery d. acquisition
a. response
10. Sarah, the cofounder of a start-up company that sells sports goods, prepares a purpose statement for the company. In the purpose statement, she clarifies how the company will deal with its competitors and provide services to its customers. In this scenario, Sarah has most likely contributed to developing the company's _____. a. strategic plan b. single-use plan c. tactical plan d. operational plan
a. strategic plan
36. Which of the following is the first step of a strategy-making process? a. Conducting situational analysis b. Assessing the need for strategic change c. Choosing strategic alternatives d. Evaluating strategic alternatives
b. Assessing the need for strategic change
1. In the context of the Boston Consulting Group (BCG) matrix, which of the following is a similarity between stars and question marks? a. Both have large shares in their respective markets. b. Both have shares of a fast-growing market. c. Both have small shares in their respective markets. d. Both have shares of a slow-growing market.
b. Both have shares of a fast-growing market.
43. _____ is a measure of the intensity of competitive behavior among companies in an industry. a. Bargaining power of firms b. Character of the rivalry c. Threat of new entrants d. Threat of substitute products
b. Character of the rivalry
8. Cajemp Inc. is a real estate developer that has been in the market for several years. Most real estate developers are now constructing their projects using concrete blocks as they are more durable and easier to lay out when compared to traditional brick and mortar. Cajemp, however, has been reluctant to use concrete blocks because its brick and mortar houses have been selling well so far. They will continue to sell the same even if new competitors and better products enter the market. Which of the following concepts is illustrated in this scenario? a. Strategic dissonance b. Competitive inertia c. Competitive advantage d. Strategic alliance
b. Competitive inertia
14. Claire is a manager at an information technology (IT) firm. She notices a consistent drop in the productivity of her employees. She is not able to find the reason behind this drop. In the context of rational decision making, which of the following steps should Claire take first? a. Computing the optimal decision b. Defining the problem c. Generating alternative courses of action d. Identifying decision criteria
b. Defining the problem
47. In the context of using groups to improve decision making, which of the following is true of the nominal group technique (NGT)? a. It forces decision makers to state the assumptions of a proposed solution and then generate a solution that is the opposite of the proposed solution. b. It closes with a second quiet time in which group members independently rank the ideas presented. c. It involves a panel of experts who respond to questions and to each other until they reach agreement on an issue. d. It is known to conclude in hostility, anger, and resentment among the participating group members.
b. It closes with a second quiet time in which group members independently rank the ideas presented.
39. _____ are standing plans that indicate the specific steps that should be taken in response to a particular event. a. Policies b. Procedures c. Single-use plans d. Options-based plans
b. Procedures
44. _____ is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions. a. Options-based planning b. Rational decision making c. Benchmarking d. Profiling
b. Rational decision making
34. Which of the following is one of the five industry forces identified by Harvard professor Michael Porter? a. The threat of planned obsolescence b. The threat of new entrants c. The threat of competitive inertia d. The threat of strategic dissonance
b. The threat of new entrants
50. In the context of adaptive strategies, which of the following best describes prospectors? a. They seek moderate, steady growth by offering a limited range of products and services to a well-defined set of customers. b. They seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market. c. They try to simultaneously minimize risk and maximize profits by following or imitating the proven successes of firms. d. They develop and follow a single strategy for extensive periods of time, irrespective of any changes taking place in the industry.
b. They seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market.
12. During a discussion about the budget for a project, the discussion gets personal between two managers of Trion LLC. They digress from the topic and start venting their anger on each other. In this scenario, the managers have _____. a. an ethical conflict b. a-type conflict c. c-type conflict d. an intellectual conflict
b. a-type conflict
10. Bob's Assembly is a hardware manufacturer. It specializes in builders' hardware for doors, cabinets, windows, and bathrooms. Bob's Assembly products are economical and more durable than 95% of its competitors' products. This scenario illustrates the concept of _____. a. core capability b. distinctive competence c. competitive inertia d. strategic dissonance
b. distinctive competence
50. The most popular approach to increase goal commitment is to: a. minimize employee involvement in planning. b. encourage employee participation while setting goals. c. ask the top management to assign goals. d. develop less challenging goals.
b. encourage employee participation while setting goals.
2. Tots County manufactures clothing and apparel exclusively for children in the age group of one to six years. In this scenario, the company is most likely using a(n) _____. a. diversification strategy b. focus strategy c. divestment strategy d. adaptive strategy
b. focus strategy
13. Omega Corp. has a goal of increasing its production and reducing its overhead costs. To achieve this goal, the company has developed four alternate action plans. Its idea is to monitor how these plans work and then invest more in the plan that shows maximum results. This type of planning that allows for flexibility is known as _____. a. reverse planning b. options-based planning c. time-based planning d. traditional planning
b. options-based planning
30. Woolplank is an apparel company that specializes in woolen clothes. It heavily invested in five sheep farms last year. This year, it plans to buy the most profitable sheep farm out of the five. In this scenario, Woolplank is most likely using _____. a. reverse planning b. options-based planning c. time-based planning d. rigid planning
b. options-based planning
7. Plastbolt, a company that manufactures and supplies plastic bottles, wants to acquire a smaller company. It plans to invest in two smaller plastic manufacturing companies and buy the one that it finds yields better returns. In this scenario, Plastbolt is most likely using _____. a. reverse planning b. options-based planning ? c. time-based planning d. rigid planning
b. options-based planning ?
22. PeoplePapers, a greeting cards manufacturing company, has retail stores in most parts of the country. It hires its employees from the best universities around the world and uses the best equipment in its manufacturing processes. In this scenario, the organization's processes, its employees, and its equipment are examples of its_____. a. reserves b. resources c. variable costs d. overheads
b. resources
28. The production team members of Agrimotor, an agricultural machinery manufacturer, are expected to follow standing plans when any of the machinery used for production stops functioning. These standing plans describe what they should and should not do. They also detail how to deal with the situation. Given this information, the standing plans in this scenario can best be referred to as _____. a. purpose statements b. rules and regulations c. principles and rationales d. recommendation forms
b. rules and regulations
5. Lee, the chief financial officer of a bank, prepares a plan with a detailed estimate of the company's fixed long-term expenditures. This plan will be presented at the Annual General Meeting every year. In this scenario, Lee has most likely prepared a _____. a. impromptu plan b. standing plan c. tactical plan d. single-use plan
b. standing plan
29. SweetCream is an ice cream manufacturer. It sells Guilt-Free, a zero-calorie ice cream, which competes with FlavorBell's MooSweet, a low-calorie ice cream. FlavorBell reduces MooSweet's prices to match Guilt-Free's prices. Identify the strategic move that is most likely being implemented by FlavorBell in this scenario. a. Rejoinder b. Attack c. Recovery d. Acquisition
b. Attack
28. Break Technologies has five strategic business units (SBUs)—computers, refrigerators, washing machines, air conditioners, and televisions. Its computers unit is quite profitable in spite of operating in a slow-growing market, and it is profitable enough to provide funds for the operation of the other business units as well. In the context of the BCG matrix, which of the following categories of SBUs best describes the computers unit? a. Stars b. Cash cows c. Question marks d. Dogs
b. Cash Cows
Gamapro, a company that manufactures gaming devices, has launched a new gaming console along with a new set of games for the new version of the console. However, the games designed for the previous versions of the consoles can also be used on the new console because of backward compatibility. Which of the following concepts does this scenario best illustrate? a. Unfreezing b. Generational change c. Refreezing d. Technological lockout
b. Generational change
Cleanreef, a chain of stores that provides dry-cleaning services, has been the market leader in the country of Gregoramas for the past 20 years. None of its rivals have been able to match Cleanreef's technology, logistics, and pricing. In the context of innovation streams, Cleanreef most likely has a _____. a. fixed working capital b. distinctive competence c. fiduciary responsibility d. matrix organization structure
b. distinctive competence
35. _____ are defined as the standards used to guide judgments and decisions. a. Standing plans b. Purpose statements c. Decision criteria d. Judgement liens
c. Decision criteria
18. Winston Corp. manufactures and sells toy cars. These toy cars are perfect imitational miniature versions of real cars. Inspired by the success of Winston Corp., Neil Danon, a plastic ware manufacturer in Orowella also started manufacturing toy cars. Which of the following adaptive strategies is used by Neil Danon? a. Defenders adaptive strategy b. Prospectors adaptive strategy c. Analyzers adaptive strategy d. Reactors adaptive strategy
c. Analyzers adaptive strategy
46. Which of the following is the last step of a strategy-making process? a. Conducting situational analysis b. Assessing the need for strategic change c. Choosing strategic alternatives d. Evaluating strategic alternatives
c. Choosing strategic alternatives
8. Jim is the operations manager of a car manufacturing company in the United States. He wants to set up production plants in three other countries by the end of the current year. After he has set this goal, which of the following is the next step he should ideally take in order to achieve this goal? a. Determine the profits the production plants will make b. Track progress toward goal achievement c. Develop commitment to the goal d. Reward hard working employees for their work
c. Develop commitment to the goal
35. _____ consists of the strategic actions that a company takes after retrenchment to return to a growth strategy. a. Downsizing b. Competitive inertia c. Recovery d. Strategic dissonance
c. Recovery
5. Cardwire Inc. has decided to lower the price of all its products to keep up with its competitors. To achieve this, the company needed to lower its overall costs. However, the procurement department at Cardwire has been spending twice its allotted budget to buy raw materials. Which of the following best illustrates the situation at Cardwire? a. Competitive inertia b. Job deskilling c. Strategic dissonance d. Price fixing
c. Strategic dissonance
40. _____ is a decision-making method in which members of a panel of experts respond to questions and to each other until reaching agreement on an issue. a. Dialectical inquiry b. The nominal group technique c. The Delphi technique d. The devil's advocacy approach
c. The Delphi technique
16. TinkTV, PopoNet, and Kreti Broadcast are merging together to form a large television network called Tale Broadcast. This was done in an attempt to increase profitability by combining the customers and services owned by the three companies. Which of the following grand strategies does the given scenario best exemplify? a. The stability strategy b. The retrenchment strategy c. The growth strategy d. The acquisition strategy
c. The growth strategy
24. Ren's Cakes, a bakery, is extremely successful and is always full of customers in the location it is currently set up in. It wants to increase its profitability, and it believes that opening up more bakeries in the country will be the best way to go about it. Which of the following grand strategies is Ren's Cakes planning to use in this scenario? a. The stability strategy b. The retrenchment strategy c. The growth strategy d. The acquisition strategy
c. The growth strategy
7. Arboral Inc., an auto manufacturing company, has been extremely successful in its home country. In an attempt to increase its profitability, it has opened up new manufacturing plants and showrooms in three more countries. Which of the following grand strategies was used by Arboral in this scenario? a. The stability strategy b. The retrenchment strategy c. The growth strategy d. The acquisition strategy
c. The growth strategy
26. Serrano, a clothing and apparel company, suffered major losses when one of its warehouses was destroyed in a fire mishap. In an attempt to make up for these losses, it had to sell one of its product lines to a rival company. Which of the following grand strategies was used by Serrano in this scenario? a. The stability strategy b. The growth strategy c. The retrenchment strategy d. The acquisition strategy
c. The retrenchment strategy
48. Which of the following statements is true of analyzers? a. They are the first to bring innovative new products to market. b. They do not follow a consistent strategy. c. They are a blend of the defender and prospector strategies. d. They react to changes in their external environment after they occur.
c. They are a blend of the defender and prospector strategies.
24. Todd's manager rejected his leave application because project deadlines were getting closer. Todd considered this a personal offence and got into an argument with his manager. In this scenario, the disagreements between Todd and his manager can best be classified as _____. a. c-type conflict b. cognitive conflict c. a-type conflict d. constructive conflict
c. a-type conflict
4. Klivinich is a manufacturer of oral hygiene products. In addition to manufacturing and selling oral hygiene products, Klivinich also focuses on educating its customers on oral hygiene and dental problems. All its employees are trained to answer questions and help customers with oral hygiene and dental problems. This has helped Klivinich _____. a. produce low-cost products b. procure rare resources c. achieve a competitive advantage d. form a strategic alliance
c. achieve a competitive advantage
25. The senior managers of Clockence, a clock manufacturing company, have a disagreement about the quantity of inventory to be allotted to each production team. Each of them views the problem differently, but they are willing to discuss it and arrive at the best possible solution. In this scenario, the conflict among the senior managers at Clockence best exemplifies _____. a. a-type conflict b. affective conflict c. c-type conflict d. channel conflict
c. c-type conflict
9. The senior accountants at Spicedam have a disagreement with each other about the calculation of the company's annual budget because of their different industry experiences. However, they are willing to have a rational discussion and arrive at the optimal solution. In this scenario, the conflict among the senior accountants at Spicedam best exemplifies _____. a. a-type conflict b. affective conflict c. c-type conflict d. channel conflict
c. c-type conflict
20. FasterRides Inc. has introduced a new bike in the market. Majority of its profits come from the sale of bikes. The company is recognized worldwide for its ability to design and produce bikes with superior handling, smooth transmission, powerful brakes, and other premium features that its competitors are lacking. This ability to produce superior quality bikes is the company's _____. a. strategic reference point b. strategic alternative c. distinctive competence d. competitive resonance
c. distinctive competence
6. Operop Inc., a technology company in Brookeep, manufactures digital cameras. Its cameras have the highest pixel density, multiple zoom options, and a variety of picture effects that none of its competitors can match up to. This ability of producing superior quality cameras is the company's _____. a. strategic reference point b. strategic alternative c. distinctive competence d. competitive resonance
c. distinctive competence
23. Floyd, the chief finance officer of a company that sells rubber sheets, prepares an estimate that helps in calculating the rates of Cost, Insurance and Freight (CIF) and Free on Board (FOB) contracts. This pricing estimate is used every time the company gets an export order. In this scenario, Floyd has most likely prepared a _____. a. single-use plan b. tactical plan c. standing plan d. impromptu plan
c. standing plan
32. An organization's _____ is defined as a more specific goal than the organization's purpose that unifies company-wide efforts, stretches and challenges the organization, and possesses a finish line and a time frame. a. vision statement b. single-use plan c. strategic objective d. mission statement
c. strategic objective
22. Kyle, the human resources manager of an electrical company, is preparing an estimate of the recruitment requirements, training overheads, and induction expenditure for the next six months to present to the chief human resources officer of the company. In this scenario, Kyle is most likely creating a(n) _____. a. strategic plan b. single-use plan c. tactical plan d. operational plan
c. tactical plan
23. Kensei Corp. has three strategic business units (SBUs)—pharmaceutical, publishing, and consulting. Its pharmaceutical unit is relatively new in the sector and does not have a large market share. The pharmaceutical sector is a fast-growing sector, and companies with a large market share in the sector have been earning large profits. In the context of the BCG matrix, which of the following categories of SBUs best describes the pharmaceutical unit? a. Stars b. Cash cows c. Question marks d. Dogs
c. Question Marks
To attract the right customers, Wedroom, a wedding planning firm, has its office redecorated in various wedding themes. It also has smart sensors in its workspaces that sense temperature and brightness and adjust to the environment accordingly. This scenario best illustrates _____. a. reverse engineering b. corporate entropy c. organizational innovation d. agile development
c. organizational innovation
Sun Technologies, a cell phone manufacturing company, decided to change the operating system of its phones to eliminate the problems faced by the users while using the current operating system. Before implementing the change, the marketing team of the company started creating advertisements that informed the users about the benefits of the new system in an attempt to make them believe that the change is for the better. In the given scenario, Sun Technologies is in the _____ phase of organizational change. a. refreezing b. coercion c. unfreezing d. change intervention
c. unfreezing
6. The managers of Danestump, a hardware manufacturing company, are expected to follow standing plans before approving long leaves applied by their subordinates. The standing plans detail the specific steps to be followed when approving such leaves. Given this information, the standing plans in this scenario can be referred to as _____. a. Artifacts b. Heuristics c. Prototypes d. Procedures
d. Procedures
37. _____ occurs when a group member must wait to share an idea because another member is presenting an idea to the group. a. Dialectal inquiry b. Groupthink c. Satisficing d. Production blocking
d. Production blocking
44. _____ is creating or acquiring companies that share similar products, manufacturing, marketing, technology, or cultures. a. Product positioning b. Retrenchment c. Competitive inertia d. Related diversification
d. Related diversification
34. In the context of operational plans, which among the following is the most specific type of standing plans? a. Policies b. Procedures c. Single-use plans d. Rules and regulations
d. Rules and regulations
27. Betty runs a boutique. She buys semi-automatic sewing machines for her tailors because she cannot afford the fully automatic ones. This scenario best illustrates the concept of _____. a. Maximizing b. counterconditioning c. overregularizing d. Satisficing
d. Satisficing
46. Which of the following statements is true of electronic brainstorming? a. One of the disadvantages of electronic brainstorming over face-to-face brainstorming is production blocking. b. A disadvantage of electronic brainstorming is evaluation apprehension. c. It does not allow ideas that are shared to remain anonymous. d. Studies show that electronic brainstorming is much more productive than face-to-face brainstorming.
d. Studies show that electronic brainstorming is much more productive than face-to-face brainstorming.
12. Ziff Corp. was a leading electronics firm for about three decades. As new competitors entered the industry, Ziff Corp's market share dropped. The managers at Ziff Corp. refuse to change any of their strategies, as they believe that their existing strategies will help them become one of the market leaders as they did in the past. This scenario is an example of _____. a. distinctive competence b. strategic dissonance c. strategic uncertainty d. competitive inertia
d. competitive inertia
15. Lancencus, a software company, plans to double its workforce in the next 10 years. To achieve this goal, the human resources manager of the company sets a target to increase the company workforce by 20% each year. In this scenario, Lancencus's plan to double its workforce in the next 10 years is an example of a _____. a. recurrent goal b. productivity goal c. operative goal d. distal goal
d. distal goal
26. Autowizic Inc., an automobile manufacturing company, plans to move its operations to a different city by the end of the year. It sets a target of moving one department by the end of each month, so that all the departments can be moved within a year. In this scenario, Autowizic's plan of moving its operations to a different city by the end of the year is an example of a _____. a. provisional goal b. foundational goal c. proximal goal d. distal goal
d. distal goal
33. In the context of brainstorming, _____ is the fear of what others will think of one's ideas. a. dialectal inquiry b. cognitive conflict c. production blocking d. evaluation apprehension
d. evaluation apprehension
42. In the context of direct competition, _____ is defined as the degree to which two companies have overlapping products, services, or customers in multiple markets. a. related product diversification b. resource similarity c. market inertia d. market commonality
d. market commonality
14. FreeSpirit is a global consumer products company. It manufactures a number of new products ranging from personal care to food and beverages. Its products are sold all across the world, and it continuously keeps searching for new markets to sell its products. It has also doubled its investment to market its products, and it invests heavily in social media and other advertisement mediums. In the context of adaptive strategies, FreeSpirit is most likely to be categorized as a(n) _____. a. reactor b. analyzer c. cost leader d. prospector
d. prospector
16. Shoerls, a footwear manufacturing company, had been purchasing its raw materials from Douglem. When Douglem increased the prices of its products, the production managers at Shoerls decided to purchase the raw materials from a different supplier that they believed would be a good-enough alternative. This scenario best illustrates the concept of _____. a. counterconditioning b. overregularizing c. Maximizing d. satisficing
d. satisficing
17. In the context of sustainable competitive advantage, unlike rare resources, nonsubstitutable resources cannot be: a. used by firms to improve their effectiveness. b. controlled or possessed by many competing firms. c. replaced by other resources to produce similar value. d. used to sustain a competitive advantage.
d. used to sustain a competitive advantage.
40. In the context of grand strategies, the _____ of a company focuses on increasing profits, revenues, market share, or the number of places in which the company does business. a. retrenchment strategy b. stability strategy c. downsizing strategy d. growth strategy
d. growth strategy
11. Jimmy is the sales manager of, Packaday, a packaging and shipping company. He has created a plan that will increase Packaday's customer base by 2.5 percent in the next two months. In this scenario, Jimmy has set a _____. a. recurrent goal b. passive goal c. visionary goal d. proximal goal
d. proximal goal
Brandack is a leading manufacturer of storage devices. During a span of every five years, it produces one high-performance storage device. At the beginning of the five-year period, the device's performance improvement is slow. However, the improvement becomes rapid over time, and toward the end of the five-year period, it gradually begins to drop. In the context of technology cycles, this scenario best illustrates _____. a. a compression approach to innovation b. resistance to change c. technological lockout d. the S-curve pattern of innovation
d. the S-curve pattern of innovation
Musccanic Inc., a company that manufactures microprocessors, updates the technology used in its microprocessors once every four years. A study conducted by the R&D team of the company revealed that the microprocessors' growth rate is initially slow, then becomes rapid, and eventually becomes slow again toward the end of the four-year cycle. In the context of technology cycles, this scenario best illustrates _____. a. a compression approach to innovation b. resistance to change c. technological lockout d. the S-curve pattern of innovation
d. the S-curve pattern of innovation
When Dalemend Inc. started manufacturing gaming consoles, it had difficulties with performance growth. Over time, the consoles began performing well, and the company's growth rate became rapid. However, after this period of rapid growth, the performance growth rate began to drop again. In the context of technology cycles, this scenario best illustrates _____. a. a compression approach to innovation b. resistance to change c. technological lockout d. the S-curve pattern of innovation
d. the S-curve pattern of innovation
