BUS 195 ch.4

Metaphors are A) several rites connected together. B) shorthand of words used to capture a vision or to reinforce old or new values. C) narratives based on true events. D) fictional stories. E) any objects, acts, events, qualities, or relations used to convey meaning.

B) shorthand of words used to capture a vision or to reinforce old or new values.

Synergy A) is the 2 + 2 = 5 effect. B) can result in powerful competitive advantages. C) can be developed by an organization through planning. D) exists when everyone pulls together as a team that knows what it wants to achieve. E) all of the above

E) all of the above

Allocating resources is one of the five basic activities (functions) performed by managers.

False

Financial ratios are not applicable to nonprofit organizations.

False

In most industries, only minor costs of producing a product or service are incurred within operations, so production and operations does not have great value as a competitive weapon in a company's overall strategy.

False

Most producers today sell their goods directly to consumers.

False

Opportunities are a firm's distinctive competencies that cannot be easily matched or imitated by competitors.

False

Organizing is the cornerstone of effective strategy formulation.

False

Research and Development (R&D) Management is focused on managing inputs, transformations, and outputs that vary across industries and markets.

False

Successful strategy formulation generally rests upon the ability of an organization to sell some product or service.

False

Technology ties all business functions together and provides the basis for all managerial decisions.

False

Test marketing is used more frequently by industrial companies than consumer goods companies.

False

The management function of organizing is included in human resource management.

False

The total assets turnover ratio is calculated by dividing sales by fixed assets.

False

While interesting, organizational culture does not significantly affect business decisions.

False

If total fixed costs are $10,000, variable costs per unit are $5, and the price per unit is $15, what is the breakeven quantity? A) 500 B) 667 C) 1,000 D) 2,000 E) 5,000

C) 1,000

________ exemplifies the complexity of relationships among the functional areas of business. A) Government auditing B) External auditing C) Financial ratio analysis D) Environmental scanning E) Distribution strategy

C) Financial ratio analysis

Which is NOT one of the four common approaches to determine R&D budget allocations? A) Finance as many project proposals as possible. B) Budget for R&D about what competitors spend. C) Use a percentage-of-costs method. D) Decide how many successful new products are needed and work backwards to estimate the required R&D investment. E) Use a percentage-of-sales method.

C) Use a percentage-of-costs method.

Staffing involves all of these activities EXCEPT A) recruiting employees. B) rewarding employees. C) analyzing customers. D) managing union relations. E) training and developing employees.

C) analyzing customers.

Distribution includes A) customer analysis. B) pricing. C) warehousing. D) advertising. E) test marketing.

C) warehousing.

A limitation of financial ratios is the fact that they are based on accounting data.

True

A ritual is a standardized set of behaviors used to manage anxieties.

True

According to William King, a task force of managers from different units of the organization should be charged with determining the 20 most important strengths and weaknesses that should influence the future of the organization.

True

Activity ratios measure how effectively a firm is using its resources.

True

An organization's culture compares to an individual's personality in the sense that no two organizations have the same culture and no two individuals have the same personality.

True

Benchmarking is an analytical tool used to determine whether a firm's value chain activities are competitive compared to rivals.

True

Cultural products include values, beliefs, stories, and language.

True

During the 2015 Super Bowl, a 30-second advertisement cost over $4 million.

True

Four common approaches to determine R&D budget allocations are: 1) finance as many project proposals as possible; 2) use a percentage-of-sales method; 3) budget for R&D about what competitors spend; or 4) decide how many successful new products are needed and work backwards to estimate the required R&D investment.

True

Marketing research is the systematic gathering, recording and analyzing, of data about problems relating to the marketing of goods and services.

True

The Internal Factor Evaluation Matrix should use a total of 20 internal factors.

True

The basic premise of the research-based view is that the mix, type, amount, and nature of a firm's internal resources should be considered first and foremost in devising strategies that can lead to sustainable competitive advantage.

True

The idea that paying dividends results in a higher stock price is a myth.

True

The purpose of organizing is to achieve coordinated effort by defining task and authority relationships.

True

There are seven basic functions of marketing: customer analysis, selling products and services, product and service planning, pricing, distribution, marketing research, and opportunity analysis.

True

Value chain analysis can enable a firm to better identify its own strengths and weaknesses especially as compared to competitors' value chain analyses and their own data over time.

True

What marketing function includes test marketing? A) Selling products and services B) Pricing C) Customer analysis D) Product and service planning E) Distribution

D) Product and service planning

________ management deals with inputs, transformations, and outputs that vary across industries and markets. A) Marketing B) Financial C) Research and development D) Production and operations E) Information systems

D) Production and operations

The ________ decision is the allocation and reallocation of capital and resources to projects, products, assets, and divisions of an organization. A) investment B) dividend C) financing D) restructuring E) benchmark

A) investment

Pricing is one of the basic functions of A) marketing. B) finance/accounting. C) management information systems. D) production/operations. E) research and development.

A) marketing.

All of the following are basic functions of marketing EXCEPT A) value chain analysis. B) customer analysis. C) product and service planning. D) pricing. E) distribution.

A) value chain analysis.

Life-directing attitudes that serve as behavioral guidelines are called A) values. B) rites. C) beliefs. D) metaphors. E) legends.

A) values.

A pattern of behavior developed by an organization as it learns to cope with its problems of external adaptation and internal integration, and that has worked well enough to be considered valid and to be taught to new members as the correct way to perceive, think, and feel is called A) dysfunctional behavior. B) groupthink. C) behavior modification. D) organizational culture. E) internal audit effect.

D) organizational culture.

A standardized set of behaviors used to manage anxieties is called a A) folktale. B) rite. C) metaphor. D) ritual. E) value.

D) ritual.

What category of ratios measures how effectively a firm can maintain its economic position in the growth of the economy and industry? A) Profitability B) Liquidity C) Leverage D) Revenue Growth E) Growth

E) Growth

Which ratio is calculated by dividing profits before interest and taxes by total interest charges? A) Inventory turnover B) Fixed assets turnover C) Total assets turnover D) Debt-to-equity ratio E) Times-interest-earned ratio

E) Times-interest-earned ratio

An effective information management system ________ information in such a way that it answers important operating and strategic questions. A) collects B) codes C) stores D) synthesizes E) all of the above

E) all of the above

What category of ratios measures a firm's ability to meet its short-term obligations? A) Profitability B) Liquidity C) Leverage D) Activity E) Growth

B) Liquidity

Which function of management is concerned with span of control and chain of command? A) Planning B) Organizing C) Controlling D) Staffing E) Motivating

B) Organizing

What is the essential bridge between the present and the future that increases the likelihood of achieving desired results? A) Motivating B) Planning C) Controlling D) Staffing E) Organizing

B) Planning

The process whereby a firm determines the costs associated with organizational activities from purchasing raw materials to manufacturing products to marketing those products is called A) The Resource-Based Approach. B) Value Chain Analysis. C) Strategic Cost Analysis. D) The Internal Factor Evaluation Matrix. E) Cost-Benefit Analysis.

B) Value Chain Analysis.

A firm's strengths that cannot be easily matched or imitated by competitors are called A) internal audits. B) distinctive competencies. C) external audits. D) interrelated properties. E) internal properties.

B) distinctive competencies.

Which of the following does the text call an up-front investment in success? A) Planning B) Organizing C) Motivating D) Staffing E) Controlling

A) Planning

The IFE Matrix should be ________ in multidivisional firms. A) constructed for each autonomous division B) all-inclusive C) constructed only for the major divisions D) developed before the EFE Matrix E) revised monthly

A) constructed for each autonomous division

Organizational resources include all of the following EXCEPT A) employee training. B) firm structure. C) planning processes. D) information systems. E) copyrights.

A) employee training.

________ is a commonly used approach to determine R&D budget allocations. A) Financing as many project proposals as possible B) Using a percentage-of-sales method C) Budgeting for R&D about what competitors spend D) Deciding how many successful new products are needed and working backward to estimate the required R&D investment E) All of the above

E) All of the above