MGT-103 Exam 2
The difference between small business owners and entrepreneurs is that small business owners:
Assume the risk of the business
In PESTEL, factors are characterized as opportunities or threats.
False
A global strategy is based on the assumption that the world is extremely interconnected, and that patters of consumption and product are fairly homogeneous worldwide.
True
_______ change is unintentional and is usually the result of informal organizing.
unplanned change
_ refers to factors that prevent new firms from successfully competing in the industry.
barriers to entry
Businesses close down for many reasons. Which of the following is NOT a typical reason for a business failure?
Expenses were lower than the owner expected.
A diffuse organization concentrates resources in only a one or very few locations, or only a few individuals are authorized to make decisions about the use of resources.
False
A firm's internal environment contains elements that can impact the firm but are generally beyond its direct control.
False
A geographic structure describes an organization that has multiple reporting lines of authority.
False
A strong rivalry in an industry increases the profit potential for all firms because consumers have many firms from which to purchase products or services and can make at least part of their purchasing decisions based on price.
False
Compare to Hofstede, the onty two cultural dimensions unique to the GLOBE project are performance orientation and future orientation
False
Entrepreneurs, as a general group, dislike risk taking.
False
In deficit-based change, leaders assume that employees will change if they can be inspired to aim for greater degrees of excellence in their work.
False
Internal factors are things in the global environment that may impact a firm's operations or success, examples are a rise in interest rates, or a natural disaster.
False
Organizational design refers to the constant shifts that occur within an organizational system.
False
Research finds that while education is necessary for job placement, it plays no role in socializing individuals into expected norms in their society.
False
The DHL Global Connected Index, which tracks the flow capital, information, trade, and human resources, indicates that the degree of globalization continues to decline.
False
The two sources of debt financing are angel investors and venture capitalists.
False
Threats offer positive potential, however sometimes a firm is not equipped to take advantage of them which is why considering the entire SWOT is important before deciding what to do.
False
Transformational change refers to small refinements in current organizational practices or routines that do not challenge, but rather build on or improve, existing aspects and practices within the organization.
False
The World Trade Organization's most important functions are all of these EXCEPT:
Financing the infrastructure development project in less developed countries
The movement of people from their home country to other countries is refers to:
Immigration
The movement of people from their home country to other countries refers to:
Immigration
Which of the following model of change proposed the sequence of "Unfreeze, Move, Refreeze"?
Lewin's Change Model
A firms's _environment contains elements that can impact the firm but are generally beyond its direct control. These elements are characteristics of the world at large and are factors that all businesses must content with, regardless of the industry they are in or type of business they are.
Macro
ABC Products has a highly vertical organizational structure that is designed to generate a high degree of standardization and control. ABC Products can be described to have which of these structures?
Mechanistic
When Allison Logue found out her children were allergic to corn, she started looking for sweets and starches that were corn-free and was dismayed to find very few such products on the market. As a result, she has started her own small business to produce and market corn-free desserts. It is a small market, and Logue plans to keep her business small. Logue is an example of a(n):
Micropreneur
Which term describes a system for accomplishing and connecting activities that occur within a work organization?
Organizational Structure
_ is a tool that reminds managers to look at several distinct categories in the macro environment.
PESTEL
When Sally assesses the external competitive environment facing her firm, she labels anything that would make it harder for her firm to be successful as a(n):
Threats
Which of the following describe the government policies through which countries agree to eliminate cross-border barriers to trade and to promote global integration?
Trade Agreement
A firm's weaknesses are simply gaps in capabilities, and those gaps do not always have to filled within the firm.
True
A firms's resources and capacities are the unique skills and assets it possesses.
True
A global strategy is based on the assumption that the world is extremely interconnected, and that patterns of consumption and product are fairly homogeneous worldwide.
True
An advantage of a small manufaturing firm over a large manufacturer is the speed with which new produets ean be introduced to the marketplace
True
An organization with a horizontal structure is also known as a flat organization because it often features only a few levels of organizational hierarchy.
True
Because tariffs are usually passed along to the consumer in the form of higher prices, imposing tariffs on imported goods gives domestic companies a price advantage and protects them from foreign competition.
True
Culture change, among the most difficult kinds of changes to create within an organizational system, often involves reshaping and re-imagining the core identity of the organization.
True
Demographics includes facts about income, education levels, age groups, and the ethnic and racial composition of a population.
True
Entrepreneurs are people with vision, drive, and creativity, who are willing to take the risk of starting and managing a business to make a profit
True
Entrepreneurs are typically innovators who start companies to pursue their ideas for a new product or service.
True
More than half of small businesses have between one and four employees
True
Planned change is an intentional activity or set of intentional activities that are designed to create movement or end
True
Strategic planning and implementation is perhaps the most common type of organization-level change.
True
The informal organization is energent, meaning that it is formed through the common conversations and relationships that often naturally occur as people interact with one another in their day-to-day relationships.
True
When researchers examined the ongoing assumptions that all residents of a given country will behave according to broad cultural norms, they found that 80% of variation in cultural values is actually within countries.
True
A firms is the progression of activities it undertakes to create a product or service that consumers will pay for.
Value chain
A firms _ environment includes components inside the firm and outside the firm.
competitive
In the retail industry, ABC tries to add value to their products and services so they can attract customers who are willing to pay a higher price. ABC can be described as utilizing which of the following strategy?
differentiation strategy
James is the owner of a small toy manufacturifig company. James primarily focuses on buying and selling products using the internet. Which of the following best describes James' business practic?
E-commerce
Which of the following defines those markets in non-developed countries that present tremendous potential for multinationals?
Emerging markets
Which of the following is NOT an activity of the strategic management process?
Establish compensation for performance
_ Factors are characteristics of the firm itself.
Internal
In which structure does an organization have multiple reporting lines of authority for employees?
Matrix Structure
Which of the following represents the first step in the planning process?
Set goals
The degree to which people are organized into subunits according to their expertise is referred to as:
Specialization
Which of the following represents a kind of change that is necessary for an organization to achieve the focus it needs to make needed transfer missions and work it does feel to stay competitive in the current or larger organization, larger market environments or societal environment?
Strategic Change
A firm's decision on how to serve customers and compete against rivals is called
Strategic positioning
ABC Products is good at marketing its sports products. This describes ABC's:
Strengths
At _ stage of the organizational life cycle, the organization expands, and the hierarchy deepens, now with multiple layers of employees. Lower-level managers are given greater responsibility and managers for significant areas of responsibility are
Sustained Success
_ is mid-level planning that consists of broad ideas of what the company should do to pursue its mission.
Tactical planning
Exporting is one of the easiest ways to go international.
True
The mission statement takes the why of a vision statement and gives a broad description of how the firm will try to make its vision a reality
True
The most common use of a business plan is to persuade lenders and investors to finance the venture.
True
The strategic management process is the set of activities that firm managers undertake in order to try to put their firms in the best possible position to complete successfully in the marketplace
True
The strategy cycle is a process managers use to achieve an advantage in the marketplace, and the measurement and evaluation stage tells managers whether the advantage is being achieved.
True
To achieve a competitive advantage over rivals in the industry, the successful cost leader tightly controls costs throughout its value chain activities
True
To react to change more easily and develop products consumers want, managers and consultants engage in environmental scanning.
True
The first step in starting your own business is:
self-assessment
Which of the following SWOT factors are internal to the firm?
strengths and weaknesses
Which of the following represents the changes in the overall formal relationships, or the architecture of relationships, within an organization?
structural change
Which of the following leadership profiles describes the degree to which the leader can inspire and motivate others, according to the GLOBE project?
Charismatic
Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hanson used _ financing
Debt
When a company decides to shrink its operations to reduce costs in order to survive, it is deploying a _ strategy.
Defensive
When BA Products managers assume that BA employees will change if they know they will otherwise face negative consequences, it refers to which of the following?
Deficit-based change
Which of the following is not an activity of strategic management process?
Establish compensation for performance
Multipreneurs are businesspeople who have tried a succession of entrepreneurial start-ups without finding an area in which they could be successful.
False
Strategy and goals statements together are the first building blocks in defining why a firm exists and in developing a plan to accomplish what the firm wants to accomplish.
False
The first step in starting your own business is the creation of a unique marketing idea.
False
The top managers in organizations prefer to deal with the steps of strategic management one at a time to be able to provide the necessary attention to details.
False
The worldwide phenomenon whereby the countries of the world are becoming more interconnected and where trade barriers are disappearing refers to:
Globalization
A _ is something that a firm is trying to accomplish.
Goal
XY Products has a horizontal organizational structure with many individuals across the company empowered to make organizational decisions. XY Products can be described to have which of these structures?
Organic
ABC Products is interested in identifying what technoiogical opportunities exists for their business. ABC should use which of the following strategic analysis tools?
PESTEL
A. _is a decision to carry out a particular action in order to achieve a specific goal.
Plan
According to the GLOBE project, countries in the Latin American cluster tend to be more collective, have high power distance, and ha high uncertainty avoidance.
True
culture tells people who they are, which behaviors are appropriate, and which are not acceptable in any society.
True
_ is at the core of most business failures.
inadequate planning
All of the following are characteristics of an entrepreneurial personality EXCEPT:
the willingness to be a follower rather than a leader
Which of the following is the final step of strategic management process?
Measure and evaluate performance
Which of these is a general description of how the firm will try to accomplish the firm's vision?
Mission Statement
_ is (are) the big-picture goals for the company.
Strategic objectives
A plan includes decisions about when and how actions should be accomplished and what resources will be required to complete the company
Strategic planning
A business-level strategy is the framework a firm uses to organize this activities, and it is developed by the firm's top managers.
True
A entrepreneur is a person who opens and manages his or her own business.
True
Which of these is an expression of what a business's founders want that business to accomplish?
Vision Statement
While a firm's _______ is a general statement about its values, a firm's ______ is more specific.
Vision statement; mission statement
The mission statement takes the _ of a vision statement and gives a broad description of _ the firm will try to make its vision a reality
Why; How
Which of these is a general description of how the firm will try to accomplish the firm's vision?
mission statement
A _ strategy is a strategy for a company to maintain its current income, market share, or geographic reach.
stability
Which term describes the set of activities that firm managers undertake in order to try to put their firms in the best possible position to compete successfully in the marketplace
strategic management process
Garden Tools. Inc. (GTI) offers customers Its product or service at a lower price than its rivals can. GTI can be described as utilizing which of the following strategies?
Cost-leadership strategy
Which term defines the collective programming of the mind which distinguishes the member of one group or category of people from another?
Culture
Which of the following represents one of the most difficult kinds of change to create within an organization?
Culture Change
includes facts about income, education levels, age groups, and the ethnic and racial composition of a population.
Demographics
In the _ phase of the organizational life cycle, the organization is usually very small and agile, focusing on new products and services. The founders typically focus on a variety of responsibilities, and they often share frequent and informal communication with all employees in the new company.
Entrepreneurship
Navin Jain sold stock to investors in order to finance Sparkart, LLC, a company that markets software to track how many times music is played and shared among peers. Jain used _ financing.
Equity
Which of the following SWOT factors are external to the firm?
opportunities and threats
Which of the following leadership profile describe degree to which the leader is self-centered and uses a face-saving approach?
self-protective
Which of the following describe the degree to which social benefits are unequally distributed and those patterns are perpetuated for life?
social stratification
Which term describes the process that firms use to study and understand the many different layers and aspects of their competitive environment?
strategic analysis
Who provides the start-up financing for the majority of new small businesses?
the business owner and his or her family and friends
Andy Yocum was looking to start a small business so he could be his own boss. While golfing one day, he saw prime advertising space on the flags on the course. He has decided to call his new venture Invision Golf Group, Inc. What should he include in his business plan?
All of the above
When leaders assume that employees will change if they can be inspired to aim for greater degrees of excellence in their work, it represents which one of these?
Abundance-based Change
Which of the following is based on the assumption that the world is extremely interconnected, and that patterns of consumption and pradaction are fairiy bomogeneous worldwide?
A global strategy
Which of the following strategy is one in which the company decides that it makes sense to organize its functional activities, such as marketing, finance, etc. around geographical regions that play a critical role in terms of:
A regional strategy
Michael Bronner made a fortune in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise, Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. Entrepreneur Bronner would more than likely have which of the following characteristics?
All of the above
_ are individual investors or groups of experienced investors who provide funding for start-up businesses.
Angel Investors
Kathy Elliott has decided that she will start an internet company to sell reliable used cars to customers nationwide. She has decided to use the sole proprietorship business format. Elliott's next step is to write a formal _ before she applies for a business loan
Business Plan
Which of the following leadership profiles describe the degree to which the leader can inspire and motivate others, according to the GLOBE project?
Charismatic
Once Arnold Patel had decided he wanted to quit working as a Web designer for a large advertising agency and go into some kind of business for himself. he did a self-assessment. which indicated that he had an entrepreneurial spirit. His next step will be to:
find the idea for his business
Which of the following describes an officially defined set of relationships, responsibilities, and connections that exist across an organization?
formal organization
