MGMT Exam #2

True or False: Changes in the technological environment are always an advantage for organizations.

False Changes in the technological environment can threaten a business. They are not always an advantage to the organization.

According to Lewin, the first step in behavioral change is _________ a. unfreezing b. change intervention c. refreezing

a.

If an organization chooses to make its product or service sufficiently different from competitors' offerings that customers are willing to pay a premium price for it, they are using which type of positioning strategy? a. Differentiation b. Niche c. Focus d. Cost leadership

a. A differentiation strategy means making your product or service sufficiently different from competitors' offerings that customers are willing to pay a premium price for it. Refer to 6-4: Industry-Level Strategies.

A ______ structure is created when a company organizes activities by business areas, such as accounting, marketing, sales, operations, finance, and strategy. a. functional b. customer c. product d. matrix

a. A functional structure is created when a company organizes activities by business areas, such as accounting, marketing, sales, operations, finance, and strategy.

An advantage of a _________ organization includes the flexibility to coordinate relationships through broker agreements. a. virtual b. modular c. complex d. simple

a. An advantage of a virtual organization includes the flexibility to coordinate relationships through broker agreements.

Which preparation explores cross-cultural differences with foreign nationals located in the employee's home country? a. Field simulation b. Documentary training c. Adaptability screening d. Cultural simulation

a. Field simulation explores cross-cultural differences with foreign nationals located in the employee's home country.

Firm-level strategies answer the question: a. "How should we compete against a particular company?" b. "How should we compete in this industry?" c. "Why are we in this business?" d. "What business or businesses are we in or should we be in?"

a. Firm-level strategies answer the question "How should we compete against a particular company?" Refer to 6-5: Firm-Level Strategies.

Which control method uses observable measures of worker behaviors or outputs to assess performance and influence behaviors? a. Objective b. Concertive c. Bureaucratic d. Normative

a. The objective control method uses observable measures of worker behaviors or outputs to assess performance and influence behaviors.

What type of budgeting requires managers to justify every expenditure every year? a. Zero-based b. Product innovation c. Customer defection d. Sales-based

a. Zero-based budgeting requires managers to justify every expenditure every year.

A company's _______________ processes refer to the external collection of activities that transform inputs into outputs and create customer value. a. interorganizational b. intraorganizational c. virtual d. modular

a. A company's interorganizational processes refer to the external collection of activities that transform inputs into outputs and create customer value.

An advantage of a(n) _________ organization is the flexibility to respond to emerging customer needs through network relationships. a. virtual b. modular c. focused d. intraoganizational

a. An advantage of a virtual organization is the flexibility to respond to emerging customer needs through network relationships.

Which type of activity involves increasing the number and variety of tasks that a worker performs in a position? a. Job enlargement b. Job rotation c. Job specialization d. Job enrichment

a. Job enlargement involves increasing the number and variety of tasks that a worker performs in a position.

An advantage of__________teams is the different experience and expertise of the members. a. multifunctional b. diversity

a. Multifunctional teams are work teams composed of people from different departments. Their advantage is the different experience and expertise of the members.

Identify a way in which a company's organizational culture can be sustained. a. By recognizing and celebrating heroes b. By following industry regulations c. By ensuring high opportunistic behavior d. By writing down the cultural values

a. One way in which a company's organizational culture is sustained is by recognizing and celebrating heroes. By definition, organizational heroes are organizational people admired for their qualities and achievements within the organization.

What collective action refers to each business unit's contribution required to achieve organizational success? a. Pooled b. Empowerment c. Sequential d. Task

a. Pooled interdependence is the collective action that refers to each business unit's contribution required to achieve organizational success.

__________ are best defined as the assets, capabilities, processes, employee time, information, and knowledge that an organization uses to improve its effectiveness and efficiency. a. Resources b. Distinctive competencies c. Reserves d. Competitive advantages

a. Resources are the assets, capabilities, processes, employee time, information, and knowledge that an organization uses to improve its effectiveness and efficiency.

The dimension of _______ is present in a culture that believes individuals should focus on their own gain. a. individualism b. femininity c. long-term orientation d. uncertainty avoidance

a. The dimension of individualism is present in a culture that believes individuals should focus on their own gain.

Which of the following are examples of local adaptation? Check all that apply. a. Hiring workers based on market expectations b. Expecting all markets to sell products similarly c. Allowing retailers to promote cultural values d. Providing one warranty across all markets

a. & c. Allowing retailers to promote and hire based on cultural or market expectations are examples of local adaptation.

Which of the following are examples of global consistency? Check all that apply. a. Considering the consumer as similar across markets b. Using flexible procedures across markets c. Selling one product line across multiple markets b. Using different packaging across markets

a. & c. Selling one product across markets and treating all consumers as similar are examples of global consistency.

Which of the following are examples of local adaptation? Check all that apply. a. Asking for market input in product design b. Hosting customer service in home country c. Selling products only online across markets d. Testing products with diverse consumer groups

a. & d. Asking for market input in product design and testing products with diverse consumer groups are examples of local adaptation.

In a _______, consumers have relatively more money to spend. a. static economy b. growing economy c. shrinking economy d. stagnant economy

b In general, in a growing economy, more people are working and wages are growing, and therefore, consumers have relatively more money to spend

Which of the following is a benefit of aligning business expansion goals with a country's goals? a. Access natural resources. b. Secure foreign investment. c. Gain diverse perspectives. d. Sell to new markets.

b. A company can align its business goals for global expansion with country goals for attracting foreign investment.

Identify a true statement about opportunistic behavior. a. A low degree of buyer dependence can lead to opportunistic behavior. b. A high degree of seller dependence can lead to opportunistic behavior. c. Opportunistic behavior focuses on establishing a mutually beneficial long-term relationship between buyers and suppliers d. Opportunistic behavior focuses on evaluating the relationship between buyers and sellers in business markets

b. A high degree of buyer or seller dependence can lead to opportunistic behavior, in which one party benefits at the expense of the other.

What control term refers to the company's regulation of actions that workers perform on the job? a. Self b. Behavior c. Output d. Normative

b. Behavior control refers to the company's regulation of actions that workers perform on the job.

In the context of sustainable competitive advantage, _____ are those resources that are not controlled or possessed by many competing firms. a. nonsubstitutable resources b. rare resources c. valuable resources d. tangible resources

b. Rare resources are those resources that are not controlled or possessed by many competing firms. For sustained competitive advantage, valuable resources must also be rare resources.

If you are trying to create a new type of eye shadow, and you test and modify your creation until you have the best product you can make, you are using the_________approach to innovation. a. compression approach b. experiential approach

b. The experiential approach to innovation is appropriate in a highly uncertain environment. It requires the use of intuition, flexible options, and hands-on experience to reduce uncertainty and accelerate learning and understanding.

Which cultural dimension is present in a society that seeks to reduce potential risks associated with business? a. National culture b. Uncertainty avoidance c. Individualism d. Short-term orientation

b. Uncertainty avoidance is present in a society that seeks to reduce potential risks associated with business.

A ________ is created when specialized managers are added to the company's structure. a. customer structure b. complex matrix c. simple matrix d. functional structure

b. A complex matrix is created when specialized managers are added to the company's structure.

New versions of Microsoft Office products, such as Word and PowerPoint, allow users to read documents produced in older versions of the products. This is an example of: a. product prototypes. b. a creative work environment. c. generational change. d. design iteration.

b. A generational change occurs when incremental improvements are made to a dominant technological design such that the improved version of the technology is fully backward compatible with the older version.

A _____ is a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use. a. divesting strategy b. grand strategy c. growth strategy d. portfolio strategy

b. A grand strategy is a broad corporate-level strategic plan used to achieve strategic goals and guide the strategic alternatives that managers of individual businesses or subunits may use in deciding what businesses they should be in.

A manager who is being evaluated to determine how likely they are to adjust to cross-cultural assignments is engaged in ______. a. field simulation b. adaptability screening c. cultural simulation d. documentary training

b. A manager who is being evaluated to determine how likely they are to adjust to cross-cultural assignments is engaged in adaptability screening.

Which of the following is a pitfall of planning? a. It results in lack of direction due to monotony. b. It can impede change and prevent or slow needed adaptation. c. It adversely affects profit margins. d. It discourages the development of task strategies.

b. A pitfall of planning is that it can impeded change and prevent or slow needed adaptation. Refer to 5-1: Benefits and Pitfalls of Planning

Which of the following refers to an organization's ability to notice and respond to changes in the organization's environment? a. Prioritization b. Adaptability c. Intellectual ability d. Coordination

b. Adaptability is an organization's ability to notice and respond to changes in the organization's environment.

In any organization, _____ are the less visible, internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs. a. distinctive competencies b. core capabilities c. strategic reference points d. strategic alliances

b. Core capabilities are the less visible, internal decision-making routines, problem-solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs. Distinctive competencies cannot be sustained for long without superior core capabilities.

Which type of collective achievement requires work to be completed in steps that lead to other parts of the organization's workflow? a. Reciprocal b. Sequential c. Task d. Pooled

b. Sequential interdependence requires work to be completed in steps that lead to other parts of the organization's work.

Which type of activity does not directly involve creating or selling the company's products and services? a. Line function b. Staff function c. Centralization d. Decentralization

b. Staff function does not directly involve creating or selling the company's products and services.

______ refers to the extent to which managers can understand or predict which environmental changes and trends will affect their businesses. a. Environmental sustainability b. Environmental scarcity c. Environmental uncertainty d. Environmental complexity

c Environmental uncertainty refers to the extent to which managers can understand or predict which environmental changes and trends will affect their businesses.

A company wants to understand the risks associated with changes in government leadership. What should it consider? a. Company strategy b. Nontariff barrier c. Political uncertainty d. Policy uncertainty

c. A company should consider political uncertainty to understand the risks associated with changes in government leadership.

A ______ structure is created when a company increases its responsiveness to different market demands by locating close to customers. a. product b. matrix c. geographic d. customer

c. A geographic structure is created when a company increases its responsiveness to different market demands by locating close to customers.

What control term refers to the mechanism for gathering information about performance deficiencies as they arise? a. Accounting b. Feedforward c. Concurrent d. Feedback

c. Concurrent control refers to the mechanism for gathering information about performance deficiencies as they arise.

Which term refers to the amount by which company profits exceed the cost of capital in a given year? a. Zero-based budgeting b. Income statement c. EVA d. Financial ratios

c. EVA refers to the amount by which company profits exceed the cost of capital in a given year.

What mechanism monitors performance inputs rather than outputs to prevent or minimize performance deficiencies before they occur? a. Accounting b. Concurrent c. Feedforward d. Feedback

c. The feedforward mechanism monitors performance inputs rather than outputs to prevent or minimize performance deficiencies before they occur.

Identify a true statement about the planning process. a. The first step in the planning process is to track progress toward goal achievement. b. The planning process ends with developing effective action plans. c. The final step in developing an effective plan is to maintain flexibility. d. Effective action plans precede the development of commitment in the planning process.

c. The last step in developing an effective plan is to maintain flexibility because action plans are sometimes poorly conceived and goals sometimes turn out not to be achievable. Refer to 5-2: How to Make a Plan That Works

You have decided to start a new exercise program. When you wake up on the first morning of your program and put on your sneakers to go for a run instead of rolling over and going back to sleep, you are in the ________ part of the change process. a. unfreezing b. refreezing intervention c. change

c. When you actually change your behavior by getting up and running, you are in the change intervention stage of Lewin's model of change. Unfreezing is the first time you recognize that a change is needed, and refreezing occurs when the new behavior becomes a habit.

A company wants to understand the risks associated with changes in government leadership. What should it consider? a. Company strategy b. Nontariff barrier c. Political uncertainty d. Policy uncertainty

c. A company should consider political uncertainty to understand the risks associated with changes in government leadership.

A company should consider the quantitative factor of ________ when considering a location. a. policy uncertainty b. company strategy c. exchange rate d. political uncertainty

c. A company should consider the quantitative factor of exchange rate when considering a location.

A competitive analysis involves: a. identifying industry regulators. b. addressing customer issues before they occur. c. determining a rival firm's strengths and weaknesses. d. identifying new social trends among customers.

c. A competitive analysis is a process for monitoring the competition that involves identifying competition, anticipating their moves, and determining their strengths and weaknesses.

A manager applies ______ to maintain its value with customers. a. policy uncertainty b. nontariff barrier c. company strategy d. political uncertainty

c. A manager applies company strategy to maintain its value with customers.

What term describes the amount of information a worker receives about their job performance on a task? a. Skill variety b. Task identity c. Feedback d. Autonomy

c. Feedback describes the amount of information a worker receives about their job performance on a task.

What term refers to an activity that contributes to creating or selling the company's products and services? a. Delegation b. Standardization c. Line function d. Staff function

c. Line function refers to an activity that contributes to creating or selling the company's products and services.

The marketing and sales departments at a local newspaper had conflicting goals, which prevented both teams from being successful. Management decided to set complementary goals for both teams. This is an example of: a. freedom. b. work group encouragement. c. removal of impediments. d. organizational encouragement.

c. Removing impediments like internal conflict and power struggles, rigid management structures, and a conservative bias toward the status quo can increase creativity. Creating complementary goals and removing the conflicting goals helped the marketing and sales teams.

What concept defines customer perception that the product quality is excellent for the price offered? a. Cost b. Learning c. Value d. Innovation

c. The concept of value defines customer perception that the product quality is excellent for the price offered.

The term ________ refers to the values and beliefs of a society. a. collectivism b. short-term orientation c. national culture d. femininity

c. The term national culture refers to the values and beliefs of a society.

Identify the mistakes managers typically make in the change part of the change management process. Check all that apply. a. Not establishing a great enough sense of urgency b. Not creating a powerful enough guiding coalition c. Undercommunicating the vision by a factor of 10 d. Lacking a vision

c. & d.

According to Porter's industry forces, _____ is a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs. a. the threat of substitute products or services b. the bargaining power of buyers c. the bargaining power of suppliers d. the threat of new entrants

c. According to Porter's industry forces, bargaining power of suppliers is a measure of the influence that suppliers of parts, materials, and services to firms in an industry have on the prices of these inputs. When companies can buy parts, materials, and services from numerous suppliers, the companies will be able to bargain with the suppliers to keep prices low. Refer to 6-4

In an organization, environmental uncertainty is lowest when: a. environmental complexity is high b. resource scarcity is high c. environmental change is high d. resources are plentiful

d Environmental uncertainty is lowest when environmental change and environmental complexity are at low levels and resource scarcity is low

Which type of business is created when two companies join to create a third entity for a specific purpose? a. Wholly owned subsidiary b. Franchise c. Licensing d. Joint venture

d. A joint venture is created when two companies join to create a third entity for a specific purpose.

A _____ is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment. a. break-even analysis b. differentiation analysis c. cause and effect analysis d. situational analysis

d. A situational analysis, also called a SWOT analysis, is an assessment of the strengths and weaknesses in an organization's internal environment and the opportunities and threats in its external environment. A situational analysis can also help managers determine the need for strategic change.

_____ is a competitive move designed to reduce a rival's market share or profits. a. A resource similarity b. A response c. A market commonality d. An attack

d. An attack is a competitive move designed to reduce a rival's market share or profits. Refer to 6-5: Firm-Level Strategies.

Facilitating an event with _____ involves scenarios reflective of work, life, and social expectations of a different country. a. field simulation b. adaptability screening c. documentary training d. cultural simulation

d. Facilitating an event with cultural simulation involves scenarios reflective of work, life, and social expectations of a different country.

Which of the following trade agreements is held between Argentina, Brazil, Paraguay, and Uruguay? a. ASEAN b. CAFTA-DR c. TFTA d. MERCOSUR

d. MERCOSUR is a trade agreement between Argentina, Brazil, Paraguay, and Uruguay.

______ seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market. a. Analyzers b. Defenders c. Reactors d. Prospectors

d. Prospectors seek fast growth by searching for new market opportunities, encouraging risk taking, and being the first to bring innovative new products to market. Refer to 6-4: Industry-Level Strategies

When significant improvements in performance can only be gained through radical new designs or new performance-enhancing materials, it is likely that a company is at the _____. a. payback period b. beginning of the technology cycle c. break-even point d. end of the technology cycle

d. The S-curve pattern of innovation is a pattern of technological innovation characterized by slow initial progress, then rapid progress, and then slow progress again as a technology matures and reaches its limits. When significant improvements in performance can only be gained through radical new designs or new performance-enhancing materials, it is likely that a company is at the end of the technology cycle.

The main purpose of a retrenchment strategy is to: a.increase revenues, market share, or the number of places in which a company operates. b. continue doing what a company has been doing, just doing it better. c. minimize risk by diversifying investment among various business or product lines. d. turn around very poor company performance by shrinking the size or scope of the business.

d. The purpose of a retrenchment strategy is to turn around very poor company performance by shrinking the size or scope of the business or, if a company is in multiple businesses, by closing or shutting down different lines of the business. Refer to 6-3

What type of company is started to actively seek cross-cultural opportunities? a. Strategic alliance b. Franchise c. Exporting d. Global new venture

d. A global new venture is started to actively seek cross-cultural opportunities.

Which process involves identifying outstanding practices, processes, and standards in other companies and adapting them to a company? a. Marketing b. Selling c. Negotiating d. Benchmarking

d. Benchmarking involves identifying outstanding practices, processes, and standards in other companies and adapting them to a company

What occurs when decision making and authority are maintained at the upper levels of a company? a. Delegation b. Decentralization c. Standardization d. Centralization

d. Centralization occurs when decision making and authority are maintained at the upper levels of a company.

What control describes the regulation of workers' behaviors and decisions through work group values and beliefs? a. Self b. Bureaucratic c. Objective d. Concertive

d. Concertive control describes the regulation of workers' behaviors and decisions through work group values and beliefs.

Which trade barrier is created when a country places requirements on foreign products to protect consumers? a. Export restraint b. Quota c. Subsidy d. Import standard

d. Government import standards are requirements that are placed on imports to ensure that consumers are not harmed by their use.

Garrison Motors, Inc. developed a creative manufacturing technique that helps improve the efficiency of their production. It allows the company to produce more than one type of car from the same assembly line. In this scenario, the development of a new technique by Garrison Motors to improve its workflow efficiency is an example of _____. a. corporate entropy b. technological intermittence c. organizational architecture d. organizational innovation

d. In this scenario, the development of a new technique by Garrison Motors, Inc. to improve its workflow efficiency is an example of organizational innovation. Organizational innovation is the successful implementation of creative ideas in organizations.

What term refers to the number of activities involved in a particular job? a. Task identity b. Task significance c. Autonomy d. Skill variety

d. Skill variety refers to the number of activities involved in a particular job.

What term refers to a facility purchased by a company that wants to operate in a foreign market? a. Franchise b. Global new venture c. License d. Wholly owned subsidiary

d. When a company buys a facility to operate in a foreign market, a wholly owned subsidiary is created.