MGMT 310 Exam 1

Which continent has the highest concentration of trade (i.e., trade among countries within a particular region)?

Europe

Which of the following is the first step in the stakeholder mapping process?

Map all stakeholder relationships of the firm.

Imagine that in your meeting with company executives, they tell you not to worry about the potential security problem because fixing it right now would cost too much, and notifying customers would result in a loss of business. If you decide to ignore this matter, which of the following rationales most closely matches yours in this situation?

My managers want me to help the company meet its economic responsibilities, and it's my job to follow orders.

When managers create a firm's strategy, they must consider which of the following elements? Check all that apply.

The position their firm will take in the marketplace

Which of the following actions is more likely to be taken by a manager rather than a leader?

Working with a group of people to accomplish a desired goal in an efficient manner

The stakeholder view of the firm does all of the following except:

aims to produce the highest possible stock market valuation of the firm's assets.

Strategic CSR refers to corporate social responsibility activities that:

are directly related to the business objectives of a company

internal control 1. assess goals 2. assess internal resources 3. assess employee capabilities 4.?

assess culture

A ____________entails how a company will position itself among competitors.

business-level strategy

General Electric is a company that used________ to acquire and hold companies in the aerospace, consumer appliances, entertainment, financial services, health care, media, power generation, sensors, transportation, and water technology industries.

conglomeration

When a business grows through unrelated diversification, acquiring companies in different industries, it is called __________.

conglomeration

Which of the following is likely to be the biggest ethical problem you face in your new job?

consumer privacy

________refer to a business's duty to make a profit and increase shareholder value.

economic responsibilities

Ayesha, who manages a coffee shop, faces a(an) __________dilemma when deciding whether to incur additional expense by providing customers with recycling and composting options for their waste.

environmental

The study of______ shows the overall relationship between what people believe and how they act.

ethics

Fyllor Inc., a manufacturer of office equipment such as fax machines and printers, regularly imports component parts and then assembles them to make finished products. A recent increase in the import duty on component parts has led to an increase in the price of the firm's products, and this in turn has led to a drop in sales. In this scenario, the drop in sales for Fyllor Inc. can be attributed to its:

general environment

_____ refers to the integration and interdependence of economic, technological, sociocultural, and political systems across diverse geographic regions.

gloabalization

A(n) _____ strategy attempts to provide a standardized product to all markets without taking into consideration the local tastes and responsiveness of the regions in which the product is being sold.

global

Which of the following statements is true of Kantianism?

it assumes that motives are important when judging moral action

A firm's task environment includes:

its competitors, suppliers, and customers

In a(n) _____, two firms come together to form a new company in a market.

joint venture

_______is the notion that rules should be clearly stated, consistently obeyed, and impartially enforced.

procedural justice

Forecasting the likely result that might occur when several events and stakeholders are linked together is known as:

scenario building

_______ focuses on how jobs, work, and incentive schemes could be designed to improve productivity using industrial engineering methods.

scientific management

The following diagram illustrates Kohlberg's stages of moral development. stage 5

social contracts and individual rights

external control 1.industry analysis 2.customer analysis 3.competitor analysis 4. ?

supplier analysis

is the most complex of all of the international strategies because it involves determining different strategic approaches for different products. This necessitates organizational learning across all parts of the company as well as an understanding of how to create products efficiently and still respond to local needs.

transational strategy

The following diagram illustrates Kohlberg's stages of moral development. stage 6

universal principles

As CEO, I have to think about the interests of a large number of stakeholders. While a few individuals may be concerned about Facebook's privacy policies, far more people benefit from those same policies because they don't have to see a bunch of ads that aren't relevant to them.

utilitarianism

_______is an ethical philosophy claiming that morality's primary function is to develop virtuous character.

virtue ethics

A manager who says, "I want to increase our department's earnings by 4% next quarter," is stating

An objective

According to Weber, which of the following is a feature of an ideal bureaucracy?

Clear differentiation of tasks and responsibilities among individuals

Which of the following statements is true of the theory of comparative advantage?

Countries should specialize in producing goods with the lowest opportunity cost of production.

Which of the following is the last step in the four-step process to implementing CSR?

Create a social dimension to the value proposition.

Which of the following is not a problem caused by bribery?

Decrease in compensation for those who use it

Cadmia, a small island nation, recently revised its income-tax law. The new law sought to increase taxes on wealthy corporations and citizens with higher incomes. Surprisingly, everyone responded positively to the tax revision as they believed that it will decrease inequality in the nation. In this scenario, the people of Cadmia have demonstrated support for:

Disruptive Justice

In order to evaluate the external fit of a strategy, a firm must ask which of the following questions?

Does the strategy fit with the environmental landscape?

All of the following statements about GATT are true except:

GATT remained in place and did not have a successor.

Which of the following is a shortcoming of utilitarianism?

It leads to a tyranny of the majority and a failure to respect minorities.

Which of the following responses best represents reasoning from the POSTconventional level?

No. In general, you shouldn't lie to your folks. Sometimes you can lie about little things such as parties in order to spare them the gory details. This, however, is huge.

POSTconventional

People focus on developing a personal code of ethics to be universally applied.

The following diagram illustrates Kohlberg's stages of moral development. (PREconventional)

People focus on the personal consequences of their actions. What happens to them as individuals determines what kind of behaviors are right or wrong.

Conventional

People focus on the social implications of their behavior.

Which of the following is a disadvantage of franchising?

The franchisor may lack the ability to enforce a guideline

Which of the following statements about strategy development is false?

The inputs to the emergent aspects of strategy development are top-down.

When creating a strategic plan, what is the primary purpose of analyzing the company's internal and external environments?

To understand how the company can satisfy the needs of its major stakeholders

The mission of a firm provides:

a description of the activities that a firm performs for its customers.

Nestlé Foods makes more than 200 different brands of Nescafé, its instant coffee. Each geographic region drinks a slightly different version of coffee, necessitating the use of ___________for coffee sales

a multinational strategy

The most favored nation principle, agreed upon by GATT members, meant that:

a tariff rate granted to one member of GATT would be extended to all members.

A firm's strategic choices and leadership approaches need to

adapt and change to retain their relevance.

because managers are concentrating on how to sell one item, SPSS. They are not looking at all of IBM's businesses in this example.

business-level strategy

because managers are only discussing changes to one product, the Bluetooth wireless speaker.

business-level strategy

Responsive firms are characterized by all the following behaviors except:

businesses maximize their profit within the limits of the law.

David is developing a strategy for his company that sells tour packages. He discovers that if his tours include rooms in no-frills hotels and provide only limited time with a guide at the destination, instead giving tour members brochures that suggest self-guided walking tours and popular tourist destinations they can find on their own, he can sell his packages for up to 25% less than his major competitors do. He plans to market his tours with inexpensive late-night infomercials. which component of strategy is this?

choosing a set of activities

Ryan is the manager of Home Repairs Inc., a company that provides a wide range of repair and maintenance services. He claims that Home Repairs is the only company that sends technicians to a client's place for repair work within an hour of the client's call to the company. His company offers its services at very affordable prices. Home Repairs distinguishes itself from other companies by providing discounts for people who sign up for memberships. This scenario describes the company's:

core competencies

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, vice president of sales and marketing. Suppose that Joe and Debra were considering whether Theo Chocolate should start selling other items, such as locally made baked goods, along with their chocolates. This would be a___________ strategic decision.

corporate-level decision

because Chobani decided to enter a new type of business after looking at the business environment and the company's resources. The hope is that having stores that are dedicated to Chobani sales will increase the attractiveness of Chobani to a wide variety of consumers.

corporate-level strategy

because the company is making a major decision about what industries it wants to be in. Adding space heaters to its current vacuum cleaners will change the nature of the business.

corporate-level strategy

A cloud data storage company develops a proprietary system of hardware and software, trains its systems analysts on the technology, and develops redundant backup and monitoring processes to ensure the integrity of customer data. which component of strategy is this?

creating fit

Cindy was called in for interview at a women's fashion magazine for the post of editor. During the interview, the interviewer told Cindy that the work environment of the organization was very vibrant, and that although employees worked long hours, they also regularly enjoyed themselves at employer-sponsored dinner parties and weekend trips. In this case, the interviewer was telling Cindy about the _____ of the organization.

culture

The internal environment includes all of the following except:

customers

Sally is the manager of Grubb It, a fast-food outlet. She is looking out for trends or events that could turn out to be a problem for the outlet in the future. She believes that the outlet's close proximity to a school could pose a problem, because of a growing concern over childhood obesity. In this scenario, Sally is involved in:

environmental scanning

The following diagram illustrates Kohlberg's stages of moral development. stage 2

individualism and exchange

combine elements of multinational and global strategies. Project research and design tends to be done in a central location, but then local manufacturers produce and distribute products. Because product design is standardized, it makes it hard to adapt products locally, and because manufacturing is carried out in many locations, it is hard to achieve economies of scale.

international system

The following diagram illustrates Kohlberg's stages of moral development. stage 3

interpersonal relationships

I understand that some people who use Facebook would like more privacy, but my company makes money by selling users' information. If the ability to profit from personal information were taken away, how would the company and all our stakeholders be compensated for the service we provide?

justice

I've built a social media platform that millions of people want to use, and I'm very proud of that. In fact, many entrepreneurs look at me as a role model. I also value and respect every Facebook user. Because I care about people and want them to enjoy my company's service, my decisions are ethical.

kantianism

A contractual arrangement whereby a firm allows another firm to use its technology without permitting the use of a common brand name is known as:

licensing

NAFTA does not

maintain any restrictions on agricultural products

According to the economist Milton Friedman, the goal of a business is to:

make profit

strategy formulation-->strategy implementation 1. select industries in which to compete 2. Define core competencies and unique activities 3. create fit among activities 4.?

make trade-offs

The _________ saw the firm as a mechanism for converting raw materials into products to sell to customers.

managerial view

Dreyfus manages a hair and beauty salon. To best position the salon to serve its neighborhood, he decides to hire only stylists trained in the care of African American hair and skin and stock only products aimed at African Americans. which component of strategy is this?

managing trade-offs

The following diagram illustrates Kohlberg's stages of moral development. stage 4

mantaining social order

To build contextual intelligence, a manager should not:

map stakeholder relationships

Nathan works at GoDrive Rentals, a car rental company. His job involves motivating and developing the company's sales teams as well as working with senior executives in developing and refining the company's marketing and sales strategies. From the given description, it can be concluded that Nathan is most likely a(n):

middle-level manager.

Because managers are willing to let local subsidiaries make all of the corporate decisions, Plantronics should use a multinational approach in this situation. Multinational organizations distribute products made by different regional producers under the assumption that each producer will be able to create the best product for the people in its area

multinational strategy

The following diagram illustrates Kohlberg's stages of moral development. stage 1

obedience and punishment

is likely to say, "I made the right decision for the right reason, and that's why my action was ethical."

virtue ethics

VUCA is an acronym for ___________that captures the context in which today's organizations compete.

volatile, uncertain, complex, and ambiguous

Moral dilemmas faced by businesses include all of the following except:

water pollution is a problem that challenges business and society.

The release of evidence of illegal or immoral conduct by a member of an organization to executives in the company or regulating agencies outside the company is known as:

whistle-blowing