Exam 2 Study Guide- Business Management

Tactical goals are set by:

middle managers

Delta Corp. introduced a new set of policies, giving its employees more flexibility in work timings. This decision was made in response to complaints from employees about fatigue. Which step of the rational decision-making process is illustrated in the scenario?

implementing an alternative

​Which of the following illustrates a programmed decision?

A cafe owner buys a hundred cartons of coffee every month

​_____ is an innate belief about something without conscious consideration.

intuition

Which of the following statements is true about the decision-making process?

It requires that the nature of a particular situation be defined

_____ is the extent to which a decision maker is willing to gamble when making a decision.

Risk propensity

Which of the following will be considered as an organizational strength in the context of SWOT analysis?

Surplus capital

The process of choosing one alternative from among a set of alternatives is called _____

decision making

An organization that pursues a(n) _____ strategy seeks to stand out among competitors through the quality (broadly defined) of its products or services.

differentiation

Which of the following strategies will help companies succeed during the growth stage of a product cycle?

focusing on creating product differentiation

Christine, a teacher, notices that the performances of her students at class tests have been declining. While attempting to find a solution to the problem, she thinks of three choices: rewarding students who get good grades, holding class tests more often, or punishing students when they perform poorly in the tests. Which step of the rational decision-making process is Christine in?

identifying alternatives

An alternative should be eliminated during evaluation if:

it has several unaffordable consequences

An organization's _____ is a statement of its fundamental, unique purpose that sets a business apart from other firms of its type and identifies the scope of the business's operations in product and market terms.

mission

​Decisions made by top managers involving strategy, such as signing mergers or making acquisitions, are examples of _____ decisions.

non programmed

Goals set for and by line-managers are called _____ goals.

operational

A _____ is the most general form of standing plan that specifies the organization's general response to a designated problem or situation.

policy

Relish has a chain of outlets that sells baked products. Relish requires all its employees to complete a month's training before they could work in the kitchen. This is an example of a:

policy

In the context of the GE Business Screen, a determinant of an organization's competitive position is:

product quality

A(n) _____ decision is a decision that is relatively structured or recurs with some frequency (or both).

programmed

The _____ is the component of a strategy that specifies the range of markets in which an organization will compete.

scope

When decision making is under a condition of uncertainty:

the alternatives are not known

Which of the following statements is true about strategic goals?

they focus on broad and general issues

Managers are most prone to error in a condition of _____.

uncertainty

Which of the following will help a company achieve an overall cost leadership?

using simple inexpensive product packaging