Management Chapter 2 Exam

Big and Tall Stores serve customers who wear large sizes. Its targeted customer base indicates that the chain is using a to gain a ________ to gain a competitive advantage.

Focus strategy

Zombiesmith manufactures gaming miniatures. Its highly specialized products and targeted customer base indicates that Zombiesmith is using a(n)________ to gain a competitive advantage.

Focus strategy

What was the major stimulus to international trade following World War II?

GATT

You've decided to give the department with the most participation in the United Way campaign a pizza party. When you ask your supervisor for the funding for the pizza, what reason do you give to support your decision?

Goals motivate employees

The cultural belief that a person comes before the group

Individualism

A schedule for completing the redesign of an organization's gardens and landscape

single use plan

The plan to merge Bank of America with Merrill Lynch

single use plan

Brian was asked to analyze businesses by classifying them as stars, question marks, cash cows, or dogs. He was most likely using the________ , which helps managers determine which companies belong in their portfolios.

BCG Matrix

In which of the following countries do people laugh as a way of covering up embarrassment or displeasure?

Japan

The leadership team asks you to diagnose the aspects of the international environment with which it has struggled the most. What is your diagnosis?

Understanding the cultural environments in the respective country markets

Your SWOT analysis reveals no obvious options for growth with your current product lines. So you decide to use some retained earnings the firm has been saving and launch new product lines. After careful analysis you decide to launch two new product lines, one centered on plastic bags (such as trash bags and sandwich bags), the other a line of automobile-care products (such as soaps and waxes). Which corporate-level strategy are you pursuing?

Unrelated diversification

Assume that your SWOT analysis reveals that as your product quality has declined so too has market perceptions of your firm as a producer. Specifically, you are now seen as a relatively high-priced producer of low-quality products. Does this finding reflect a strength, a weakness, an opportunity, or a threat?

Weakness

Contingency plans aren't needed _________.

When things go as expected

Delphi Group Technique

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

When referring to a SWOT analysis, the letter T stands for ____ , and it refers to factors that are_____ to the organization.

threats; external

An affinity for change and new opportunities

uncertainty acceptance

After a company has analyzed the environments in which it operates and develops a specific plan of action, it becomes time for_________

strategy implementation

Vacasa is a vacation rental and property management company headquarted in Portland, Oregon, that has a network of over 1,100 properties across the western United States. What level of international activity best describes Vacasa?

Domestic business

You are developing a plan to ensure that employees in your department are addressed appropriately when clients are on-site. What type of plan should you create?

Rule

Noah works at a coffee shop that offers a special limited edition drink during the month of June. It is always a hassle to get his colleagues to agree on the special drink, so he started providing them with a different sample each morning starting well before June. One day, every employee agreed that the daily sample would be a good choice to use as the limited edition beverage in June.

Satisfying

After he finishes celebrating with his team, Brian Sabean, the general manager of the 2014 World Series Champion San Francisco Giants, is going to do a SWOT analysis to determine his strategy for the upcoming season. Help him figure out how he should classify the following information. Considering all of the factors listed in the preceding SWOT analysis question, what strategy would make the most sense for the Giants in the upcoming season?

Sign a free-agent outfielder to bolster the current roster and sign the young pitchers to long-term contracts.

Can we expect for deadlines to be respected?

control

What characteristic of high-potential/high-growth economies makes them of such interest to international businesses?

population size

Identify human resource constraints

Developing

Directions on how to handle employee-relations issues

Standing plan

What factors can help to ensure a successful execution of a tactical plan? Check all that apply.

The manager needs to evaluate every possible course of action in light of the goal., The manager must monitor ongoing activities derived from the plan to be sure the results are as expected., Each decision maker must have the information and resources necessary for getting the job done.

We seek to partner with farms located in the regions in which we are located.

Strategic

We will develop advertising campaigns to promote our community focus.

Tactical

What will most motivate employees of different cultural backgrounds?

lead

Respect for the right of someone to hold power

power respect

A high premium on material possessions and money

Aggressive goal behavior

In your role as project leader for the organization's involvement in the annual United Way campaign, you have planned a party to mark the end of the fundraising initiative. Thinking about the importance of developing and executing plans, answer the question posed.Which action must you take to ensure the party is implemented successfully?

Allocate the necessary time for employees who will help set up the party.

We seek to operate a chain of restaurants that prepares high-quality food on a timely basis for a reasonable price.

Board of directors

Identify whether the following activities are examples of business-level or corporate-level strategies. A company's managers ask, "Should we increase the size of our Bluetooth wireless speaker and sell it at a higher cost?"

Business level strategy

Identify whether the following activities are examples of business-level or corporate-level strategies.PepsiCo makes and sells large numbers of products, from Pepsi Cola to Lay's potato chips to Cap'n Crunch cereal. Last Tuesday, PepsiCo analyzed the sales of Near East Rice Pilaf mix. Looking at the increase in sales for foreign foods, and considering the large amount of money PepsiCo has in its coffers, managers decided to continue selling Near East Rice Pilaf and advertise it more heavily.

Business level strategy

Bill knows that he will need to have documentation in order to measure results. Therefore, he plans to require all team members to log their time at work in 15-minute increments. To overcome the barrier implied by this goal, what must Bill do?

Communicate why the goal is appropriate

When conducting a SWOT analysis, budgets, ratios, and sales reports can be used to identify:

Company strengths and weaknesses

Identify whether the following activities are examples of business-level or corporate-level strategies. A company's managers ask, "Does it make sense for our vacuum-cleaner company to buy a company that manufactures space heaters?"

Corporate level strategy

Identify whether the following activities are examples of business-level or corporate-level strategies. Tesco managers sold their Fresh & Easy U.S. grocery-store chain after looking at the returns from that division and comparing them with returns from Tesco's other divisions around the world. The analysis led managers to decide that the market couldn't deliver acceptable returns for the company, which is based in England.

Corporate level strategy

We seek to improve efficiency by implementing a new computerized payment system.

Lower

In which of the following countries is whistling considered bad luck?

Russia

What organization seeks to promote international trade for all nations?

World Trade Organization

Program

a single-use plan for a large set of activities

What is a coalition?

an informal alliance of individuals or groups formed to achieve a common goal.

Which country could best be described as a high-potential/high-growth economy?

india

Which aspect of Argentina's political/legal environment most concerns you?

the potential risk of nationalization

Assess outcomes

Executing

Types of standing plans

policy, procedure, rule

Which term best describes the economic system in Argentina?

Mixed Market

We will install new refrigeration units to maintain the freshness of our ingredients.

Operational

In the planning process, what is the role of tactical goals and plans?

Links strategy and operations

Specify the resources available

Developing

nominal group technique

A group decision-making method in which individual members meet face to face to pool their judgments in a systematic but independent fashion.

Explain why Walmart has had most of its international success by entering country markets through acquisition.

Acquiring an existing retailer in a country allowed Walmart to begin with managers who understood the local culture and the existing distribution system.

Monitor activities

Executing

Given what you know about Twitter's plans, which one of Twitter's goals listed is a strategic goal?

Increasing licensing revenue by 50%

For Twitter to achieve its mission and accomplish its strategic goals, it must also set tactical goals. Which one of the goals listed is an example of a tactical goal Twitter might set?

Launch #Twitternovela engagement campaign in Latin American markets: users can see Tweets from telenovela celebrities and create and tweet their own #twitternovela story with Vines

We seek to expand by opening restaurants along every major highway in the region.

Middle

Types of single use plans

program, project

Though Hatteras Hammocks still manufactures its hammocks by hand in North Carolina, it sells the hammocks online to buyers worldwide. What type of international business is Hatteras Hammocks involved in?

Exporting

Distribute resources to responsible parties

Executing

We seek to provide a 14% or greater annualized return of investment for our shareholders.

Top

An operational plan provides a detailed road map of the steps necessary to achieve operational goals (sometimes referred to as objectives). Although there are many specific types of operational plans, they can be broadly characterized as either single-use plans or standing plans. A program plan is an example of a______ , while a policy is an example of a_______ .

single use plan; standing plan

A rule that prohibits the use of company computers for personal communications

standing plan

Your company's events committee learned that there is a 20% chance of rain on the day of the company picnic. That also means an 80% chance of dry weather. Renting an indoor facility would require a nonrefundable payment of $1,000. The events committee is operating under a _______ as it decides whether to keep the outside location or to move the event indoors.

state of risk

A company's executive team engages in _________ when it undertakes a comprehensive and ongoing effort to address business opportunities and challenges.

strategic management

How much authority and span of control should we give our local managers in each country facility?

organizing

Groupthink occurs when a team desire for consensus overwhelms the desire for reaching the best outcome. As a team leader, which tactic can you use to minimize the potential for groupthink in your team's decision making?

Assign at least one member to play the role of devil's advocate.

In which of the following countries might you be asked your family size or income on a first meeting with a new business associate? Check all that apply.

China, Indonesia

As a team member on a team of subject matter experts in the management of engineering projects, you need to organize team discussions in a way that facilitates the ability for all of the team experts to contribute to the discussion. Which team decision-making approach will be best in ensuring input from the team experts?

Delphi group technique

There are different types of goals for different levels of the organizations. Different types of goals are set by different types of managers. Categorize the goals accordingly using the tables below.- Mission

Level 1

There are different types of goals for different levels of the organizations. Different types of goals are set by different types of managers. Categorize the goals accordingly using the tables below.- Strategic

Level 2

There are different types of goals for different levels of the organizations. Different types of goals are set by different types of managers. Categorize the goals accordingly using the tables below.- Tactical

Level 3

There are different types of goals for different levels of the organizations. Different types of goals are set by different types of managers. Categorize the goals accordingly using the tables below.- operational

Level 4

Kirin Brewery, Japan's largest producer of beer, allows the Charles Wells Brewery in England to manufacture beer to Kirin's specifications and market the beer as Kirin Beer. Kirin Brewery earns a royalty on the beer sold in England. What type of international business is this an example of?

Licensing

After you reviewed the six steps with Lynn, she asked for an example of how to identify alternatives as she decides on a college major. Which of the following is the correct example to give to Lynn?

Lynn would make a list of majors she might want to study.

While Lynn likes the structure provided by the rational decision-making process, you caution her that it has some shortcomings. Why is the rational decision-making process difficult to apply completely in many situations? Check all that apply.

Managers do not always evaluate situations rationally.Managers cannot always obtain complete and accurate information.Managers are limited by their values and unconscious beliefs.

Given that UNIQLO is in the growth stage, with demand high and little competition, which of the following would be appropriate activities to include in the company's short-term plan? Check all that apply.

Research whether supplies will be sufficient to provide necessary inputs to the manufacturing plants

Bill knows that he will need to have documentation in order to measure results. Therefore, he plans to require all team members to log their time at work in 15-minute increments. Because this is a new procedure, you want to help Bill anticipate possible concerns. Which major barrier to goal setting might occur in this situation?

Resistance to change

After he finishes celebrating with his team, Brian Sabean, the general manager of the 2014 World Series Champion San Francisco Giants, is going to do a SWOT analysis to determine his strategy for the upcoming season. Help him figure out how he should classify the following information.Which of the following factors should be classified as a strength for the team?

The Giants' starting pitchers are exceptionally strong and young and can potentially keep the Giants at the top of the league for years to come.

Based on your SWOT analysis, which of the following is likely to be a reasonable strategic option? Check all that apply.

You decide to cut costs further but spend more money on advertising and promotion so you can pursue a cost leadership strategy. You decide to reinvest in higher quality by restoring previous cuts so you can pursue a differentiation strategy.

Andre's coffee shop and three other mom-and-pop stores formed ________ to oppose plans for opening a large chain store on their street.

a coalition

The _______of decision making recognizes that people (a) often use incomplete and imperfect information, (b) are constrained by bounded rationality, and (c) tend to satisfice.

administrative model

Businesses commonly rely upon groups to make decisions because of the many advantages to group decision making. Which of the following are advantages of group decision making? Check all that apply.

better decisions usually result, acceptance of the final decision is more likely

Seattle-based Theo Chocolate makes organic and Fair Trade chocolate bars. Its management team includes Joe Whinney (the company's founder and CEO) and Debra Music (VP of Sales and Marketing). Suppose Joe and Debra were considering whether Theo Chocolate should branch out and start selling other items, such as locally made baked goods, along with their chocolates. This is a _________strategic decision. To make this decision, Joe and Debra would have to take which of the following actions? Check all that apply.

corporate level; Identify the profitability profile for different types of products., Evaluate the resources the company has available to allocate between the chocolate industry and the baked goods industry.Determine what kinds of industries Theo Chocolate should be in.

Last month, the Pilots Association held a meeting to discuss its plans for next year. Last year, the group spent more than $50,000 to develop plans for a new airport hub. The hub was criticized by airport officials, who suggested that they would not be interested in the project at any time. The group decided to continue developing their plans, because they had already invested so much in the project.

escalation

Assume that you have chosen Santa Cruz, California, for your factory. After your decision you determine that the land will cost 10% more than you estimated but decide to proceed anyway. You then learn that construction costs will be around 5% more than projected but still move ahead. Next you learn that a local labor union will almost certainly organize your workforce there and raise labor costs by 12% more than your original estimate. Nevertheless, you continue to move forward with the project. Which behavioral aspect of decision making does this most closely illustrate?

escalation of commitment

Netflix recently expanded its streaming media service to Argentina, indicating that Argentina's ____was sufficiently attractive to warrant an investment, despite other concerns.

infrastructure

Brody is an experienced manager who needs to hire a new financial analyst. There are five people who might be right for the job. When Brody meets the first applicant, he knows instantly that he doesn't like her and doesn't want her working for him. As a result, he cuts short his interview with her and moves on to the next candidate.

intuition

The economies of the United States, Japan, and Germany are all ____, in that they allow the factors of supply and demand to determine business strategy.

market economies

In the following table, identify whether each example is a programmed or nonprogrammed decision.An accounting firm is deciding whether to renew the lease at its current building or relocate to one located several blocks away. This requires considering whether the current prestigious address is worth paying higher rent, the inconvenience and expense of moving the office, and a variety of other factors. This is a:

non programmed decision

In the following table, identify whether each example is a programmed or nonprogrammed decision. You have a budget of $50,000, and you want to remodel your kitchen. Fortunately, you know a number of different contractors, but all of them have different ideas about the best way to remodel a kitchen. Your decision about which contractor to use is a:

nonprogrammed decision

Although Max Trefethan's company has creative employees with many ideas, it has no design team to build product prototypes. This probably is an ________

organizational weakness

Some aspects of UNIQLO's strategy appear to be in line with Porter's differentiation strategy, while others are more aligned with overall cost leadership. Having a large amount of relatively few products can help to increase economies of scale. This tactic is associated with_______ .

overall cost leadership

The global economy is dominated by three mature market systems, which include North America, Europe, and .

pacific asia

Should we invest in our own manufacturing facility in an emerging market?

plan

In the following table, identify whether each example is a programmed or nonprogrammed decision. For the past 5 years, you and your best friend have gone for pizza at the same restaurant every Friday night. You just received a text message saying your friend is running late and to go ahead and order the pizza. Without fail, you always get a medium pizza, half with everything on it and half vegetarian, so that is what you tell the waiter. Your decision about what to order is a:

programmed decision

In the following table, identify whether each example is a programmed or nonprogrammed decision.Ignacio arranges for new employees to have computer and phone access set up before their first day on the job. Based on the new person's job title, Ignacio communicates to the IT department what access is permitted according to the new person's job title. Ignacio's arrangements for a new employee who begins next week are a:

programmed decision

You've considered expanding your trade with Argentina by importing your award-winning blended white wine, but Argentina controls wine imports. The rationale behind trade barriers on imports is ____

protection of domestic businesses

During the first 10 months of 2014, spending-per-customer declined at UNIQLO's stores in Japan. As a result, beginning in October 2014, top management changed the focus of the company's marketing. Instead of emphasizing low prices, the company began highlighting its use of high-quality materials. Which type of strategy is UNIQLO using?

reactor