Management Exam 2

________ designates how work units are going to optimize resources and make contributions over the next two years.

Tactical planning

Once her team's goals were set, Alyssa asked each team member to come up with a(n) ________ to reach the goals.

action plan

To decide how much an insurance policy should cost a customer, underwriters use ________, such as historical industry trends and loan characteristics, to predict risk levels.

data analytics

When Bedisa is analyzing underlying causes, she is engaged in

diagnosis.

Zahra, the human resources manager, has significant experience handling ethical issues in the workplace. Over the years she has received extensive training in matters of workplace ethics. Due to Zahra's legal background (she is a member of the state bar association), the management of her company rely on Zahra to assist them with legal issues, especially with ethical dilemmas. Her organization should appoint Zahra as the

ethics officer.

A real estate development company is considering a deal to develop 1,000 condominium units. This deal largely rests on a __________ that the city's population will grow by 23% over the next decade.

forecast

Georgie's Orchards, a firm that grows, processes, and cans peaches, uses a ________ structure that separates workers based on their tasks or special skills.

functional

Terrence's team is very close and tends to agree on most decisions with little discussion. Terrence should be concerned about

groupthink.

The chain of command is also known as the

hierarchy of authority.

Which models of decision making describe how managers actually make decisions?

nonrational

According to the BCG matrix, stars are

organizations with high growth and high market share which are definite keepers.

A hierarchy culture has an internal focus; it values ________ over flexibility.

stability and control

A business plan is a tool used by the federal government to determine how to strengthen the business sector through macroeconomics and microeconomics.

False

A local university is facing some tough decisions, so they are using the decision tree, which contains individuals, websites, and organizations that specialize in handling sensitive and difficult decisions.

False

Flora's Fruit + Fresh is one of several local stores where customers can purchase locally grown fruits and vegetables. Each week, Flora also offers workshops in her store on topics such as canning, healthy eating, and growing a garden, which no other local store does. By offering these unique workshops, Flora is engaging in strategic positioning.

True

Research shows that most managers vary between two or three decision-making styles, and that decision-making styles vary across occupations, job level, and countries.

True

Strategic management is the method by which managers from all organizational levels work together to set organizational goals and then formulate and implement plans to meet the goals and advance the organization's purpose.

True

When managers and employees within the same department are brought together in cross- functional teams to solve particular problems, their company is using a team-based design.

True

Willow, the youngest owner of a family-owned restaurant, wants to make sure her company's culture is embedded. In a recent tradeshow workshop, she learned that she can do this by having company rites and rituals, continuing to tell stories about company legends, and being a role model to her employees.

True

Which level of strategy is concerned with how much to spend on marketing or whether to expand facilities?

business

A corporate culture is defined as the set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.

True

All 78 locations of Moviely Cinemas has a poster in the lobby that reads, "We want to become the epicenter for family entertainment that highlights creative talents and inspires the next generation of film legends." This is the vision statement for Moviely.

True

During a management workshop, Ishaan, the HR manager, spoke about making decisions related to firing an employee. He said, "I have several rules of thumb that I use to make a decision. First, I ask if it's legal and then if it's ethical." He then laid out several other steps he uses in the decision-making process related to firing. Ishaan's "rules of thumb" are also known as heuristics.

True

Farrah, a regional manager for an HVAC equipment retailer, received an e-mail from the CEO outlining the new goal of decreasing company costs over the next three years. This is an example of a strategic goal.

True

The toughest challenges to overcome with artificial intelligence are

implementation, data issues, and cost.

A financial services company with insurance, investments, mortgages, and banking divisions is best characterized as having a

product structure.

The key reasons that an organization should adopt planning and strategic management are to

provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage.

Maritime Industries is a federal contractor that makes navigation equipment for naval ships. Maritime Industries rarely focuses on the external environment and is very rigid due to the structured contracts that drive most of its business. Because the products Maritime Industries sells need little improvement and there is virtually no competition, Maritime Industries takes few risks. Maritime Industries is an example of an adhocracy culture.

False

Some large publishers have stopped publishing children's books because they are expensive to produce and distribute. This is an example of an offensive strategy.

False

The IT network that allows for the movement of organizational information within that company is known as the organizational structure.

False

The executives of Great Lakes Medical Center are writing a statement that explains their organization's core purpose. Great Lakes Medical Center is at the strategic formulation step in strategic management.

False

To reduce the escalation of commitment, Marlee, the CEO, allows herself to be very influenced by the way a problem with her team is presented to her.

False

The logistics manager for a trucking company told her employees that "85% of deliveries should arrive within 45 minutes of their scheduled arrival times." This is an example of a

SMART goal.

Emilio and Dylan are studying the strengths and weaknesses of their construction business, Construction Concepts, as well as researching the opportunities and threats in the external environment. They are conducting a

SWOT analysis.

After the manager and employee work together to set the employee's objectives, what is the next step of MBO?

The employee should develop an action plan for meeting the objectives.

As the CEO of a mid-size airline, Karyn knows that most commercial airplanes are manufactured by either Airbus or Boeing. To mitigate the ________ of the airline industry, Karyn explores options for her company to manufacture its own airplanes.

bargaining power of suppliers

Crystal Coast is an all-inclusive beachside resort. It offers lodging, six restaurants, dancing, snorkeling, parasailing, and spa treatments. On the resort grounds, Crystal Coast also has a dive center, jet skis, and a water park. All of these amenities are only available to customers staying at Crystal Coast. Crystal Coast's strategic position emerges from

broad needs, few customers.

Once implemented, managers need ________ to keep strategic plans on track.

control systems

Victoria, a shift manager in a shoe factory, directly supervises 40 employees on her shift. The 40 workers who report directly to Victoria represent her

span of control.

A ________ expresses what the organization should become and where it wants to go strategically.

vision statement