MGMT 493 Chapter 5

According to the text, which one of the following is NOT descriptive of a corporation's culture? A) A corporation's culture is a collection of beliefs, expectations, and values learned and shared by the corporation's members and transmitted from one generation of employees to another. B) Corporate cultures are only temporary and can be easily changed. C) Culture gives a company a sense of identity. D) The culture reflects the company's values. E) Cultures have a powerful influence on the behavior of managers and can strongly affect a corporation's ability to shift its strategic direction.

Corporate cultures are only temporary and can be easily changed

Which of the following is a function of corporate culture? A) It encourages a laissez faire set of attitudes. B) It encourages flexibility and thus constant change. C) It conveys a sense of identity for employees. D) It generates creative approaches to new situations. E) It focuses employee commitment on their own careers.

It conveys a sense of identity for employees

Which one of the following best describes a conglomerate structure? A) Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources. B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities. C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades. D) Employees have two or more superiors, a project manager and a functional manager. E) This is most appropriate for large corporations with many product lines in several unrelated industries; unrelatedness prevents any attempt at gaining synergy among the divisions.

This is most appropriate for large corporations with many product lines in several unrelated industries; unrelatedness prevents any attempt at gaining synergy among the divisions.

An example of the promotion variable of the marketing mix is A) advertising. B) discounts. C) location. D) services. E) quality.

advertising

Which of the following statements is true concerning a corporate reputation? A) It is a widely held perception of a company by the general public. B) A good corporate reputation can be a strategic resource. C) There is a positive relationship between corporate reputation and financial performance. D) Reputation tends to be long-lasting and hard for others to duplicate. E) all of the above

all of the above

Which of the following statements is true concerning clusters? A) The desire to build or upgrade a core competency is one reason why entrepreneurial and other fast-growing firms often tend to locate close to their competitors. B) Clusters are geographic concentrations of interconnected companies and industries. C) An example of a cluster in the United States is California's Silicon Valley. D) According to Porter, clusters provide access to employees, suppliers, specialized information, and complementary products. E) all of the above

all of the above

When examining the corporate value chain of a particular product or service, which one of the following is NOT one of the PRIMARY activities that usually occur? A) operations B) inbound and outbound logistics C) auditing and accounting D) marketing and sales E) customer service

auditing and accounting

A corporation's ability to exploit its resources is referred to as its A) resources. B) capabilities. C) core competencies. D) critical success factors. E) key performance factors.

capabilities

The part of an industry's value chain that is most important to a company and the point where its greatest expertise and capabilities lie is called the company's A) functional crossroads. B) center of gravity. C) dynamic equilibrium. D) R&D intensity. E) economy of scope.

center of gravity

The term that describes putting once isolated specialists together to work and compare notes in a collective product design effort is called A) simultaneous strategy. B) participatory planning. C) jointly designed objectives. D) concurrent engineering. E) cooperative design.

concurrent engineering

Human resource departments have found that to reduce employee dissatisfaction and unionization efforts, they must A) significantly increase their wage rates. B) shorten the work week to allow for more leisure time. C) offer a wider variety of benefits and attractive enticements. D) guarantee their workers lifetime jobs. E) consider the quality of work life in the design of jobs.

consider the quality of work life in the design of jobs

An automobile assembly line is an example of which approach to manufacturing? A) continuous system B) debt capacity C) sequential processing D) job shop E) intermittent system

continuous system

FedEx's application of information technology to all its operations is an example of A) resources. B) distinctive competencies. C) core competencies. D) critical success factors. E) key performance factors.

core competencies

In order to move more quickly through a product's development stage and have people from each discipline get involved in projects early on, companies are using A) virtual work teams. B) cross-functional work teams. C) advisory committees. D) task forces. E) continuous engineering.

cross-functional work teams

The breadth of an organization's culture is also known as A) cultural intensity. B) cultural diversification. C) cultural integration. D) cultural strategy. E) cultural prerogative.

cultural integration

The business model used by IBM to make money not selling IBM products, but by selling its expertise to improve their customers operations is the A) profit pyramid model. B) advertising model. C) customer solutions model. D) efficiency model. E) entrepreneurial model.

customer solutions model

The PRIMARY task of the manager of information systems is to A) prevent unlawful usage of the information from the system. B) make sure the information contained in the system is up-to-date and accurate. C) monitor the input of information into the information system. D) design and manage the flow of information in a corporation to improve productivity and decision making. E) ensure that only those who have authorized permission have access to the information system.

design and manage the flow of information in a corporation to improve productivity and decision making

According to the text, the primary task of the operations manager is to A) make sure all the products or services are producing maximum revenue. B) develop and operate a system that will produce the required number of products or services with a certain quality, at a given cost, within an allotted time. C) make sure the process has a high quality control. D) ensure that the process is manufactured or delivered as efficiently as possible. E) interface with the other functional departments to coordinate their operations in avoiding duplication of effort.

develop and operate a system that will produce the required number of products or services with a certain quality, at a given cost, within an allotted time

When a company's core competencies are superior to those of competitors, these are known as A) resources. B) distinctive competencies. C) core competencies. D) critical success factors. E) key performance factors.

distinctive competencies

The rate at which a firm's underlying resources and capabilities depreciate or become obsolete is called A) replicability. B) transparency. C) imitability. D) durability. E) transferability.

durability

Which of the following is NOT one of the four question areas Barney proposes in his VRIO framework used to evaluate a firm's key resources? A) organization B) durability C) rareness D) value E) imitability

durability

When the value chains of two separate products or services share activities, such as the same marketing channels, in order to reduce costs, this is an example of A) economies of scope. B) economies of scale. C) economies of integration. D) economies of learning. E) outsourcing.

economies of scope

Flexible manufacturing emphasizes A) high-volume output of mass produced products. B) the cost advantages of an intermittent system with the customer-oriented advantages of a continuous system. C) the learning curve is longer since technology is automated. D) economies of scope over economies of scale. E) economies of scale over economies of scope

economies of scope over economies of scale

Which of the following describes a typical functional structure? A) Employees tend to be specialists in the business functions important to that industry such as manufacturing, marketing, finance, and human resources. B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as specialists attempting to gain synergy among divisional activities. C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades. D) Employees have two or more superiors, a project manager and a functional manager. E) This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as specialists but with no attempt at gaining synergy among the divisions.

employees tend to be specialists in the business functions important to that industry such as manufacturing, marketing, finance, and human resources

When scientists concentrate on quality control and the development of design specifications and improved production equipment, it is referred to as A) basic R&D. B) product R&D. C) engineering R&D. D) life cycle R&D. E) R&D mix.

engineering R&D

The second step in value chain analysis is to A) identify the legal ramifications and responsibilities of their product or service. B) examine the linkages among the product's or service's value chain. C) confirm that all variables have been included and taken into consideration. D) ensure that quality management is adequately addressed. E) examine the potential synergies among the corporation's product or business units.

examine the linkages among the product's or service's value chain

Knowledge that can be easily articulated and communicated is known as A) tacit knowledge. B) explicit knowledge. C) imitable knowledge. D) transferable knowledge. E) durable knowledge.

explicit knowledge

On the continuum of resource sustainability, where would streaming movies be placed? A) slow-cycle resources B) sustainable resources C) standard-cycle resources D) fast-cycle resources E) down-cycle resources

fast-cycle resources

The ratio of total debt to total assets is known as A) budgeting leverage. B) capital finance. C) capital budgeting. D) financial leverage. E) financial budgeting.

financial leverage

As compared to a firm with low financial leverage, a firm with a high amount of financial leverage in an expanding market should have A) lower profits. B) higher profits. C) higher earnings per share. D) lower earnings per share. E) higher sales revenue.

higher earnings per share

The mix in the workplace of people from different races, cultures, and backgrounds is referred to as A) demographics. B) human diversity. C) quality of work life. D) globalization. E) internationalizatio

human diversity

The rate at which a firm's underlying resources, capabilities, or core competencies can be duplicated by others is called A) replicability. B) transparency. C) imitability. D) durability. E) transferability.

imitability

Which one of the following is NOT one of the four methods to improve the corporation's quality of work life? A) improve the work environment B) introduce participative problem-solving C) improve the responsiveness of management D) introduce innovative reward systems E) restructuring work

improve the responsiveness of management

What is the attribute of corporate culture that is the degree to which members of a unit accept the norms, values, or other culture content associated with the unit? A) integration B) strength C) intensity D) coordination E) unity

intensity

What are the two distinct attributes of corporate culture? A) differentiation and integration B) durability and imitability C) concern for people and concern for task D) intensity and integration E) amount of complexity and tolerance of change

intensity and integration

Which of the following terms best describes a system in which items are normally processed sequentially, but the work and sequence of the process vary? A) continuous system B) debt capacity C) chronological processing D) operating leverage E) intermittent system

intermittent system

Those critical strengths and weaknesses that are likely to determine if a firm will be able to take advantage of opportunities while avoiding threats are called A) SWOT. B) competitive forces. C) internal strategic factors. D) quality accounting. E) factor analysis.

internal strategic factors

Which one of the following is NOT descriptive of the experience/learning curve? A) It is very useful because it is consistent for all organizations within a particular industry. B) It is used to estimate the production cost of a product produced by newly introduced techniques or processes. C) The experience curve varies by industry and is based on many variables. D) The concept was first applied in the airframe industry. E) It shows that production costs decline by some fixed percentage as production in units doubles.

it is very useful because it is consistent for all organizations within a particular industry

Which of the following is NOT a function of corporate culture? A) conveys a sense of identity for employees B) adds to the stability of the organization as a social system C) helps generate employee commitment to something greater than themselves D) keeps people guessing about what to do next E) serves as a frame of reference for employees to use as a guide for appropriate behavior

keeps people guessing about what to do next

Through market research, corporations can target their various products or services so that management can discover what niches to seek or develop, and how to minimize competitive pressure. This is descriptive of A) marketing position. B) product life cycle. C) market segmentation. D) marketing mix. E) marketing leverage.

market segmentation

Which of the following is NOT a support activity of the value chain? A) procurement B) technology development C) human resource management D) marketing and sales E) strategic planning

marketing and sales

The particular combination of product, place, promotion, and price is called A) marketing position. B) product life cycle. C) market segmentation. D) marketing mix. E) marketing leverage.

marketing mix

The proposition that silicon chips double in complexity every 18 months is referred to as A) Ohm's Law. B) Moore's Law. C) Porter's Five Forces Model. D) Mintzberg's Rule. E) Keynesian's Theory.

moore's law

The business model used by HP in selling printers and printer cartridges is the A) profit pyramid model. B) advertising model. C) customer solutions model. D) efficiency model. E) multi-component system/installed base model.

multi-compoent system/installed base model

The impact of a specific change in sales volume on net operating income is referred to as the A) continuous system. B) chronological processing. C) debt capacity. D) operating leverage. E) intermittent system.

operating leverage

According to Barney's VRIO framework, the firm's exploitation of a competency pertains to A) value. B) rareness. C) imitability. D) organization. E) durability.

organization

A graph showing time plotted against the dollar sales of a product as it moves from introduction through growth and maturity to decline is called the A) marketing position. B) product life cycle. C) market segmentation. D) marketing mix. E) marketing leverage.

product life cycle

Which of the following is NOT a primary activity of the value chain? A) raw materials handling B) installation C) repair D) purchasing E) warehousing

purchasing

The ability of competitors to use duplicated resources and capabilities to imitate the other firm's success is called A) imitability. B) durability. C) transferability. D) transparency. E) replicability.

replicability

In Christensen's book, The Innovator's Dilemma, he explains that managers remain with certain technologies based on A) return of investment. B) net present value. C) cost reduction. D) total operating expenses. E) time spent during technology implementation.

return of investment

When a company takes apart a competitor's product in order to find out how it works, this process is known as A) durability. B) replicability. C) reverse engineering. D) transparency. E) transferability.

reverse engineering

Knowledge that is not easily communicated because it is deeply rooted in employee experience or in a corporation's culture is called A) tacit knowledge. B) explicit knowledge. C) imitable knowledge. D) transferable knowledge. E) durable knowledge.

tacit knowledge

________ is more valuable because it can provide companies with a sustainable competitive advantage that is harder for competitors to imitate. A) Tacit knowledge B) Explicit knowledge C) Imitable knowledge D) Transferable knowledge E) Durable knowledge

tacit knowledge

Which of the following is NOT a responsibility of a research and development manager? A) choosing among alternative new technologies to use within the corporation B) developing methods of embodying the new technology in new products and processes C) deploying resources so that the new technology can be successfully implemented D) taking the design and operationalizing the plan into mass production E) suggesting and implementing a corporation's technological strategy in light of its corporate objectives and policies

taking the design and operationalizing the plan into mass production

The displacement of one technology by another, as shown by two S-shaped curves on a graph, is referred to as A) economies of scope versus operating leverage. B) technology transfer. C) the R&D mix. D) technological discontinuity. E) a disjunctive learning or experience curve.

technological discontunuity

The process of taking a new technology from the laboratory to the marketplace is called A) economies of scope versus operating leverage. B) the R&D mix. C) technological competence. D) technological transfer. E) technology discontinuity.

technological transfer

Strategic managers must be concerned with human resource management because A) dealing with people is their primary job. B) quality of work life is more important than strategic management. C) the best strategies are meaningless if employees do not have the skills to carry them out or if jobs cannot be designed to accommodate the available workers. D) workers are more likely to go on strike if management attempts to cross them. E) they must be aware of the possibility and potential of unionism.

the best strategies are meaningless if employees do not have the skills to carry them out or if jobs cannot be designed to accommodate the available workers

The concept that suggests that unit production costs decline by some fixed percent each time the total accumulated volume of production in units doubles is referred to as A) the experience curve. B) the R&D mix. C) technological competence. D) economy of scale. E) economy of scope.

the experience curve

Which one of the following best describes a divisional structure? A) Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources. B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities. C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades. D) Employees have two or more superiors, a project manager and a functional manager. E) This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions.

this is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities

Which of the following best describes a simple structure? A) Work is divided into subunits on the basis of such functions as manufacturing, marketing, finance, and human resources. B) This is most appropriate for large corporations with many product lines in several related industries, with employees acting as functional specialists attempting to gain synergy among divisional activities. C) This is most appropriate for small, entrepreneur-dominated companies with one or two product lines that operate in a small niche market, with employees acting as jack-of-all trades. D) Employees have two or more superiors, a project manager and a functional manager. E) This is most appropriate for large corporations with many product lines in several unrelated industries, with employees acting as functional specialists but with no attempt at gaining synergy among the divisions.

this is most appropriate for small, entrepreneur-dominated companies with one or two product liens that operate in small niche market, with employees acting as jack-of-all trades

The speed with which other firms can understand the relationship of resources and capabilities supporting a successful firm's strategy is called A) imitability. B) reverse engineering. C) transferability. D) transparency. E) durability.

transparency

When a company determines that a competency provides a competitive advantage, Barney refers to this issue as A) value. B) rareness. C) imitability. D) organization. E) durability.

value

A linked set of value-creating activities beginning with basic materials provided by suppliers and ending with distributors getting the final product into the hands of the ultimate consumer is called a A) value chain. B) continuum of sustainability. C) strategic capability. D) fully integrated activity set. E) strategic group.

value chain