mgt 4435, exam 2
Which of the following purchasing strategies does a strategic manager at a company use when he or she orders a particular part from several vendors? A. Multiple sourcing B. Parallel sourcing C. Outsourcing D. Sole sourcing E. Offshoring
A. Multiple sourcing
All of the following are true statements about strategy implementation EXCEPT ________. A. an organization that formulates a strategy should never implement the strategy in the organization B. although implementation is often considered only after strategy has been formulated, strategic implementation is a key part of strategic management C. strategy formulation and strategy implementation should thus be considered as two sides of the same coin D. strategy implementation is the process that occurs when objectives, strategies, and policies are put into action through the development of programs and tactics, budgets, and procedures in an organization E. strategy implementation is the sum total of the activities and choices required for the activities and choices required to execution a strategic plan in an organization
A. an organization that formulates a strategy should never implement the strategy in the organization
A(n) ________ usually occurs in the organization's current market position as a tactic that is used to shield itself against an attack by a rival organization in the marketplace. A. defensive tactic B. encirclement C. offensive tactic D. frontal assault E. first mover
A. defensive tactic
All of the following are true statements about downsizing strategies EXCEPT ________. A. downsizing might result in more, rather than less, productivity B. downsizing can seriously damage the learning capacity of organizations because creativity drops and it becomes difficult to retain high-performing employees C. downsizing is a result of a retrenchment strategy D. an organization that implements a successful downsizing strategy experiences strategic reorientation, not only the reduction of employees in the workplace E. downsizing refers to the planned elimination of positions or jobs in an organization
A. downsizing might result in more, rather than less, productivity
All of the following are forms of synergy that occur in an organization EXCEPT ________. A. old business creation B. shared tangible resources C. coordinated strategies D. shared know-how E. pooled negotiating power
A. old business creation
The amount of money an organization can generate before the cost of finances and taxes in an organization is ______________? A. operating cash flow B. economic value added (EVA) C. free cash flow D. shareholder value E. cost of capital
A. operating cash flow
The third and final phase of matrix development involves a true _______________________. A. dual-authority structure B. Product-area structure C. Virtual organization D. temporary cross-functional task force E. Geographic-area structure
A. dual-authority structure
________ systems empower cross-functional teams to constantly strive to improve production processes; whereas in ________ systems parts are grouped into manufacturing families to produce a wide variety of mass-produced items. A. Continuous improvement; mass production B. Continuous improvement; flexible manufacturing C. Flexible manufacturing; mass production D. Connected line batch flow; mass production E. Mass production; flexible manufacturing
B. Continuous improvement; flexible manufacturing
_______________ is a guideline for proper control that results in goal displacement when performance outcomes are not optimum? A. Control should involve only the minimum amount of information needed to give a reliable picture of events. B. Emphasize the reward of meeting or exceeding standards rather than punishment for failing to meet standards. C. Controls should aim at pinpointing exceptions. D. Use long-term and short-term controls E. Controls should be timely so that corrective action can be taken before it is too late.
B. Emphasize the reward of meeting or exceeding standards rather than punishment for failing to meet standards.
________ strategy addresses the issue of whether a company or business unit should hire a large number of low-skilled employees for low pay to perform repetitive jobs. A. Purchasing B. Human resource management C. Information technology D. Logistics E. Operations
B. Human resource management
______________ is a steering control that is a retailer's cost of goods sold divided by the average value of its inventories? A. Return on investment (ROI) B. Inventory turnover ratio C. Return on equity D. Economic value added (EVA) E. Customer satisfaction
B. Inventory turnover ratio
________ occurs when there is a flow of excess revenue in a highly leveraged organization that resolves problems and conflicts between departments and divisions. A. Hostile acquisition B. Organizational slack C. Concentration D. Diversification E. Acquisition
B. Organizational slack
Which of the following steps in the benchmarking process can the strategic manager identify the area or process that has the potential to gain a competitive advantage in the marketplace? A. Step V: Develop tactical programs to close performance gaps in the organization. B. Step I: Identify the area or process to be examined at the organization. C. Step II: Find behavioral and output measures of the area or process and use that data to obtain measurements. D. Step IV: Calculate the differences among the organization's performance measurements and compare those differences of the primary competitors and determine why the differences exist. E. Step III: Select an accessible set of competitors and primary competitors against which to benchmark.
B. Step I: Identify the area or process to be examined at the organization.
Which of the following strategies is used to emphasize and improve the operations in an organization, and it is an appropriate strategy when problems are pervasive but not yet critical? A. Retrenchment strategy B. Turnaround strategy C. No-change strategy D. Captive company E. Profit strategy
B. Turnaround strategy
Which of the following is the philosophy that can be traced back to Plato, Aristotle, and Hegel that involves the combination of the two conflicting views, called "thesis" and "antithesis," into a synthesis? A. internal consistency B. dialectical inquiry C. success D. mutual exclusivity E. internal completeness
B. dialectical inquiry
All of the following are true about logistics strategies EXCEPT ________. A. to gain logistical synergies from business units, strategic managers at corporations began to centralize logistics in the headquarters group B. logistics strategy is the strategy employed to analyze corporate and business-level financial options in organizations that compete in the marketplace today C. a strategic manager can form centralized logistic groups that contain specialists in different transportation modes D. a strategic manager outsources logistics to reduce costs and improve delivery time E. the trends related to a logistics strategy include centralization, outsourcing, and the use of the Internet
B. logistics strategy is the strategy employed to analyze corporate and business-level financial options in organizations that compete in the marketplace today
Strategic managers can use ________ because it forces suppliers to constantly compete for the business of important buyers. A. offshoring B. multiple sourcing C. sole sourcing D. outsourcing E. parallel sourcing
B. multiple sourcing
The amount of money an organization can generate before the cost of finances and taxes in an organization is ______________? A. economic value added (EVA) B. operating cash flow C. cost of capital D. free cash flow E. shareholder value
B. operating cash flow
In a ________, a senior manager can view each individual product line and business unit as a series of investments in an organization. A. turnaround strategy B. portfolio analysis C. captive company strategy D. sell-out strategy E. profit strategy
B. portfolio analysis
All of the following are international entry options an organization can implement to achieve horizontal growth EXCEPT ________. A. exporting B. profit strategy C. licensing D. franchising E. joint ventures
B. profit strategy
A strategic manager who implements ________ employs the just-in-time (JIT) concept that has a concept of parts that are purchased arrive at the plant just when the manager needs them rather than an excess of inventories at the organization. A. parallel sourcing B. sole sourcing C. outsourcing D. offshoring E. multiple sourcing
B. sole sourcing
All of the following are true statements about growth strategies EXCEPT ________. A. growth is a popular strategy because larger businesses can survive longer compared to a smaller business because the larger businesses have an abundance of financial resources B. U.S.-based organizations always succeed when they implement horizontal growth strategies to enter international markets C. growth strategies can enhance sales, assets, and profits in an organization D. an organization that experiences growth can offer more opportunities for advancement, promotion, and unique or fun employment opportunities E. an organization that implements a growth strategy to increase sales takes advantage of the experience curve to increase profits and reduce the per-unit costs of products sold in the marketplace
B. U.S.-based organizations always succeed when they implement horizontal growth strategies to enter international markets
Which of the following is referred to as a key to the effective management of change? A. Deculturation B. Communication C. Separation D. Integration E. Assimilation
B. Communication
Which of the following choices is the second phase of a turnaround strategy that implements a program to stabilize the now-leaner organization? A. Pause/proceed-with-caution strategy B. Consolidation C. No-change strategy D. Captive company strategy E. Profit strategy
B. Consolidation
In which of the following downsizing guidelines should a manager consider other staffing alternatives because the organization cannot transfer employees and there are no other employment positions available to offer employees in the workplace? A. Plan for long-run efficiencies. B. Develop value-added jobs to balance out job elimination. C. Invest in the remaining employees. D. Communicate the reasons for actions. E. Eliminate unnecessary work instead of making across-the-board cuts.
B. Develop value-added jobs to balance out job elimination.
Which of the following traits is important when staffing managerial positions at MNCs regardless of their country of origin or host country assignment? A. Staffing B. International orientation C. Downsizing D. Executive succession E. Job rotation
B. International orientation
Which of the following downsizing guidelines is useful when the organization understands that employees perform different job functions after it downsizes and the organization drafts new job specifications, employee standards, appraisal techniques, and compensation packages. A. Eliminate unnecessary work instead of making across-the-board cuts. B. Invest in the remaining employees. C. Communicate the reasons for actions. D. Plan for long-run efficiencies. E. Contract out work that others can do cheaper.
B. Invest in the remaining employees.
Which of the following new job design techniques permits an employee to perform a variety of jobs in the workplace? A. Job enlargement B. Job rotation C. Job characteristic D. Job enrichment E. Job design
B. Job rotation
Which of the following terms describes an industry that occurs when each country's industry is a separate entity compared to the same industry in another country? A. Job rotation B. Multidomestic C. Global D. Vertical organization E. Job enlargement
B. Multidomestic
In which stage of the organizational life cycle is the popular strategy horizontal and vertical growth? A. Stage V: Death B. Stage II: Growth C. Stage III: Maturity D. Stage IV: Decline E. Stage I: Birth
B. Stage II: Growth
In which step of the Six Sigma process does the organization seek to discover the exact current performance of a production line or manufacturing process in the organization? A. Step V: Establish B. Step II: Measure C. Step III: Analyze D. Step IV: Improve E. Step I: Define
B. Step II: Measure
In which step of the Six Sigma process does an organization investigate the process to determine what is wrong with the production or the manufacturing process? A. Step V: Establish B. Step III: Analyze C. Step I: Define D. Step II: Measure E. Step IV: Improve
B. Step III: Analyze
The strategic manager identifies the area or process that has the potential to gain a competitive advantage in the marketplace in __________________ of the benchmark process. A. Step I: Identify the area or process the organization seeks to examine. B. Step IV: Calculate the differences among the organization's performance measurements to compare those differences in an organization against the performance of the primary competitors in the marketplace to determine where and why those differences exist between organizations in the marketplace. C. Step II: Find behavioral and output measures of the area or process and use that data to obtain measurements. D. Step III: Select an accessible set of competitors and primary competitor against which to benchmark. E. Step V: Develop tactical programs to close performance gaps in the organization.
B. Step IV: Calculate the differences among the organization's performance measurements to compare those differences in an organization against the performance of the primary competitors in the marketplace to determine where and why those differences exist between organizations in the marketplace.
A virtual organization is composed of ___________________________________. A. dependence and interdependence B. collaborations linked by constantly changing networks C. cells which can operate on their own D. units which can interact with other cells E. self-managing teams and business units
B. collaborations linked by constantly changing networks
All of the following are true statements about retrenchment strategies EXCEPT ________. A. training is also important when implementing a retrenchment strategy B. effective downsizing strategies do not include investing in the employees that remain after a layoff or termination order C. successful downsizing means that an organization has to invest in its remaining employees D. if a corporation adopts a retrenchment strategy, however, a large number of individuals and groups lose their jobs E. all managers should specify the criteria an organization uses when it makes personnel decisions in an organization
B. effective downsizing strategies do not include investing in the employees that remain after a layoff or termination order
All of the following problems occur when an organization implements a strategic change EXCEPT ________. A. activities were ineffectively coordinated B. involved employees had sufficient capabilities to perform a job function C. unanticipated major problems arose D. uncontrollable external environmental factors created problems E. lower-level employees were inadequately trained
B. involved employees had sufficient capabilities to perform a job function
________ occurs when two organizations exchange stock to create one new organization in the marketplace. A. Concentration B. Diversification C. A merger D. Organizational slack E. An acquisition
C. A merger
Which of the following strategies does an organization use when the organization forfeits its independence in exchange for security? A. Divestment B. Pause/proceed with caution strategy C. Captive company strategy D. Sell-out strategy E. No-change strategy
C. Captive company strategy
Which of the following is a control that focuses on the actual performance results in an organization? A. Enterprise risk management (ERM) B. Activity-based costing (ABC) C. Output controls D. Input control E. Behavior
C. Output controls
Which of the following strategies is a labor-cost reduction strategy an organization can use to purchase resources from outsiders through long-term contracts instead of producing the resources in house? A. Licensing B. Synergy C. Outsourcing D. Franchising E. Exporting
C. Outsourcing
___________ is known as a technology that uses electronic tags to improve supply chain efficiency in the workplace? A. ISO 9000 Standard Series B. Enterprise resource planning (ERP) C. Radio frequency identification (RFID) D. Enterprise risk management E. Economic value added (EVA)
C. Radio frequency identification (RFID)
________ are market leaders that are typically at or nearing the peak of their product life cycle in a BCG Growth-Share Matrix. A. Exclamation marks B. Cash cows C. Stars D. Dogs E. Question marks
C. Stars
A(n) ________ strategy is a good method that can specify that a supplier or distributor cannot maintain similar relationships with a competitive organization in the marketplace. A. green-field development B. joint venture C. exclusive contract D. captive company E. vertical growth
C. exclusive contract
The amount of money a new owner can take out of the firm without harming the business is ____________? A. market value added (MVA) B. shareholder value C. free cash flow D. cost of capital E. input
C. free cash flow
A ________ is a corporate strategy that cuts across business unit boundaries to build synergy in an organization. A. corporate parenting B. multipoint competition C. horizontal strategy D. vertical growth strategy E. center of excellence
C. horizontal strategy
________ occurs when an organization does not produce any of its key superiors, but instead it purchases most of its necessities from outside suppliers that it partially controls. A. Forward integration B. Backward integration C. Quasi-integration D. Full integration E. Taper integration
C. Quasi-integration
Which of the following strategies is a useful strategy when a manager can offer his or her shareholders competitive prices and the employees can keep their jobs when the organization sells itself to a competitor in the marketplace? A. Pause/proceed-with-caution B. Liquidation C. Sell-out strategy D. Bankruptcy E. Portfolio analysis
C. Sell-out strategy
Which of the following downsizing guidelines is useful when the organization explains why it plans to downsize operations and what the goal of a downsize strategy is in an organization? A. Invest in the remaining employees. B. Plan for long-run efficiencies. C. Communicate the reasons for actions. D. Eliminate unnecessary work instead of making across-the-board cuts. E. Contract out work that others can do cheaper.
C. Communicate the reasons for actions.
Which of the following represents the first company to manufacture and sell a new product or service in the marketplace? A. Offensive tactic B. Program C. First mover D. Late mover E. Defensive tactic
C. First mover
________ occurs when a strategic manager develops a strategy to expand the organization's operations into other geographic locations. A. Vertical integration B. Full integration C. Horizontal growth D. Taper integration E. Quasi-integration
C. Horizontal growth
Some of the methods used to attack a competitor's position include all of the following EXCEPT ___________________. A. Flanking maneuver B. Bypass attack C. Increased retaliation D. Raise structural barriers E. Encirclement
C. Increased retaliation
Which of the following emphasizes program usage to ensure employees align interests and attitudes with new strategies in an organization? A. Turnaround specialist B. Professional liquidator C. Leading D. Dynamic industry expert E. Staffing
C. Leading
Which of the following is an alternative to a bankruptcy strategy, and an organization seeks to terminate the business operations in an organization and distribute the cash out of the assets it sells to its shareholders? A. Sell-out B. Consolidation C. Liquidation D. Divestment E. Cycle of decline
C. Liquidation
In which essential ingredient of TQM has a focus on empowerment because it provides the employees a wide latitude on their journey to achieve organizational goals? A. Continuous improvement of products and services B. Accurate measurement of every critical variable in a company's operations C. New work relationships based on trust and teamwork D. An intense focus on customer satisfaction E. Internal as well as external customers
C. New work relationships based on trust and teamwork
All of the following are true statements about communication in an international expansion scenario EXCEPT ________. A. communication is the key to the effective management of change in the workplace B. in countries similar to Thailand that have high levels of power distance, the managers believe that communication should go out of the top and into the bottom of an organization C. Thai managers feel that 360-degree performance appraisals are a positive contribution because the communication in Thailand goes from the top to the bottom of an organization D. in a country that has a high level of uncertainty avoidance, such as Switzerland and Austria, communication should be clear and explicit, and based on facts E. in low-uncertainty-avoidance countries such as Greece or Russia, individuals and groups are not accustomed to structure in communication and they prefer open-ended meetings in the workplace
C. Thai managers feel that 360-degree performance appraisals are a positive contribution because the communication in Thailand goes from the top to the bottom of an organization
The MBO process does not involve ________________________. A. developing an action plan of activities needed to achieve the objectives B. setting individual objectives that help organizational ones C. an intense focus on customer satisfaction objectives D. Periodically reviewing performance as it relates to the objectives. E. establishing and communicating organizational objectives
C. an intense focus on customer satisfaction objectives
All of the following are true statements about leveraged buyout (LBO) EXCEPT ________. A. management of the leveraged buyout (LBO) is under tremendous pressure to keep the highly leveraged company profitable B. the huge amount of debt on the acquired company books might actually cause its eventual decline by focusing management's attention on short-term matters C. the acquired company pays for its own acquisition D. financial performance of a typical leveraged buyout (LBO) usually rises above the industry average in the fourth year after the leveraged buyout (LBO) E. the debt is paid with money generated from the acquired company's operations or by sales of its assets
D. financial performance of a typical leveraged buyout (LBO) usually rises above the industry average in the fourth year after the leveraged buyout (LBO)
A(n) ________ strategy is the approach a functional area takes to achieve corporate and business unit objectives and strategies by maximizing resource productivity. A. financial B. operations C. R&D D. functional E. marketing
D. functional
A strategic manager implements a(n) ________ strategy to gain a competitive advantage in the marketplace when he or she focuses on the flow of products into and out of the manufacturing process. A. purchasing B. R&D C. operations D. logistics E. financial
D. logistics
In an operation strategy, a strategic manager can use ________ in ever-changing environments because it requires that people, processes, units, and technology reconfigure themselves to give customers exactly what they want, when they want it. A. modular manufacturing B. continuous improvement system C. mass production D. mass customization E. mass merchandisers
D. mass customization
In ________, preassembled subassemblies are delivered as needed to a company's assembly line workers. A. dedicated transfer lines B. continuous improvement C. mass production D. modular manufacturing E. mass customization
D. modular manufacturing
A strategic manager can use all of the following to enhance an operation strategy EXCEPT ________. A. computer numerically controlled systems B. automatically guided vehicles C. flexible manufacturing systems D. open innovation strategy E. CAD/CAM
D. open innovation strategy
All of the following are true statements about outsourcing EXCEPT ________. A. there are many pros and cons to outsourcing with managers increasingly focusing on non-strategically critical parts of the business as categories for outsourcing. B. outsourcing is purchasing a product or service externally that had been previously provided internally. C. outsourcing is the reverse of vertical integration. D. outsourcing is an activity or a function assigned to a wholly owned company or an independent provider in another country. E. outsourcing is becoming an increasingly important part of the strategic decision-making discussion.
D. outsourcing is an activity or a function assigned to a wholly owned company or an independent provider in another country.
In which essential ingredient in TQM is to focus on how the organization can please the consumer? A. Accurate measurement of every critical variable in a company's operations B. Continuous improvement of products and services C. Internal as well as external customers D. An intense focus on customer satisfaction E. New work relationships based on trust and teamwork
D. An intense focus on customer satisfaction
Which of the following provides managers a unique interview to accommodate the specific employment needs to find a suitable employee to fill a position at a large organization? A. Power distance B. Optimum culture C. Integration D. Assessment center E. Long-term orientation
D. Assessment center
Which of the following is an offensive method an organization can implement when it initiates small, intermittent assaults on competitors in different market segments in the external environment? A. Lower attacks B. Increase expected retaliation C. Raise structural barriers D. Guerrilla warfare E. Defensive tactics
D. Guerrilla warfare
Which of the following techniques encourage participative decision making through shared goal setting at all organizational levels and bases its performance assessments on stated objectives? A. Individual-collectivism (I-C) B. Long-term orientation C. Total quality management (TQM) D. Management by objective (MBO) E. Power distance (PD)
D. Management by objective (MBO)
Which of the following describes how an organization grows, develops, and declines in the marketplace? A. Network structure B. Matrix structure C. Geographic-area structure D. Organizational life cycle E. Product-group structure
D. Organizational life cycle
Which of the following downsizing guidelines represents why the organization should NOT simply eliminate all expenses when it implements a downsizing strategy but instead explains why the organization should continue to hire, grow, and develop operations when the organization downsizes its operations? A. Invest in the remaining employees. B. Contract out work that others can do cheaper. C. Eliminate unnecessary work instead of making across-the-board cuts. D. Plan for long-run efficiencies. E. Communicate the reasons for actions.
D. Plan for long-run efficiencies.
In which stage of the organizational life cycle is the likely structure functional management? A. Stage V: Death B. Stage III: Maturity C. Stage I: Birth D. Stage II: Growth E. Stage IV: Decline
D. Stage II: Growth
In ________________________, the organization develops strategies to change existing endeavors to enhance the organizational performance in the workplace? A. Step III: Select an accessible set of competitors and primary competitors against which to benchmark. B. Step II: Find behavioral and output measures of the area or process and use that data to obtain measurements. C. Step I: Identify the area or process to be examined at the organization. D. Step V: Develop tactical programs to close performance gaps in the organization. E. Step IV: Calculate the differences among the organizational performance measurements and compare those differences of the primary competitors and determine why the differences exist.
D. Step V: Develop tactical programs to close performance gaps in the organization.
The manufacturing facility compute costs for its operations based on historical data in the ___________ center? A. expense B. profit C. revenue D. standard cost E. investment
D. standard cost
Which of the following responsibility centers are profits NOT considered because sales departments have very limited influence over the cost of products? A. Expense center B. Standard cost center C. Investment center D. Revenue center E. Profit center
D.Revenue center
A(n) ________ occurs when one company purchases 100% of another company in the marketplace. A. directional strategy B. merger C. strategic alliance D. retrenchment strategy E. acquisition
E. acquisition
All of the following errors are examples of outsourcing errors that a strategic manager strives to avoid when an outsourcing strategy is an optimum solution EXCEPT ________. A. companies failed to establish a balance of power in the relationship B. the vendor was not trustworthy or the vendor lacks state-of-the-art processes C. an error occurs in an outsourcing strategy when a strategic manager fails to keep core activities in-house D. qualified managers fail to manage the outsourced activity in the marketplace E. an error occurs in an outsourcing strategy when a strategic manager plans a viable exit strategy
E. an error occurs in an outsourcing strategy when a strategic manager plans a viable exit strategy
The responsibility center where the performance in an organization is measured in terms of the difference between revenues and expenditures is the ___________ center? A. expense B. standard cost C. investment D. revenue E. profit
E. profit
A new product pioneer can use ________ to create an opportunity to "skim the cream" from the top of the demand curve with high prices. A. dynamic pricing B. penetration pricing C. brand extension D. leveraged buyout E. skim pricing
E. skim pricing
All the following are correct statements about sole sourcing EXCEPT ________. A. a limitation of sole sourcing occurs when a supplier is unable to deliver a part and the purchaser has no alternative but to delay production of a product B. the limitations of sole sourcing have led to the development of parallel sourcing C. sole sourcing reduces transaction costs and builds quality when the purchaser and supplier work together as partners rather than as adversaries D. a strategic manager who implements a sole sourcing strategy experiences more companies that have longer relationships with fewer suppliers involved in a transaction E. sole sourcing, in practice, utilizes two different vendors to supply two particular products
E. sole sourcing, in practice, utilizes two different vendors to supply two particular products
Which of the following is useful because its purpose can reveal what can occur, by whom, the specific time frame, and expected results of a strategy in an organization? A. Contingency plan B. Deculturation C. Assimilation D. Integration E. Action plan
E. Action plan
In which essential element of TQM does the organization focus on monitoring the operations on a consistent basis to enhance products and services in the workplace? A. New work relationships based on trust and teamwork B. An intense focus on customer satisfaction C. Internal as well as external customers D. Accurate measurement of every critical variable in a company's operations E. Continuous improvement of products and services
E. Continuous improvement of products and services
Which of the following downsizing guidelines is useful to an organization that chooses to implement an outsourcing strategy rather than a vertical integration strategy in the workplace? A. Plan for long-run efficiencies. B. Communicate the reasons for actions. C. Invest in the remaining employees. D. Eliminate unnecessary work instead of making across-the-board cuts. E. Contract out work that others can do cheaper.
E. Contract out work that others can do cheaper.
The guideline for proper control where an organization should monitor 20% of the factors that determine 80% of the results in the workplace is ____________________________? A. Long-term and short-term controls should be used. B. Controls should aim at pinpointing exceptions. C. Controls should monitor only meaningful activities and results, regardless of measurement difficulty. D. Controls should be timely so that corrective action can be taken before it is too late. E. Control should involve only the minimum amount of information needed to give a reliable picture of events.
E. Control should involve only the minimum amount of information needed to give a reliable picture of events.
Which of the following guidelines for proper control involve activities or results that the organization did not include in a predetermined range that cause the organization to take action? A. Controls should be timely so that corrective action can be taken before it is too late. B. Controls should monitor only meaningful activities and results, regardless of measurement difficulty. C. Long-term and short-term controls should be used. D. Control should involve only the minimum amount of information needed to give a reliable picture of events. E. Controls should aim at pinpointing exceptions.
E. Controls should aim at pinpointing exceptions.
Which of the following guidelines an organization uses to downsize operations is useful when the organization should stop functions that fail to add value in an organization? A. Plan for long-run efficiencies. B. Invest in the remaining employees. C. Communicate the reasons for actions. D. Contract out work that others can do cheaper. E. Eliminate unnecessary work instead of making across-the-board cuts.
E. Eliminate unnecessary work instead of making across-the-board cuts.
Which of the following offensive methods does an organization implement when the organization mimics a competitor's pricing, promotion, and distribution channel strategies to gain a competitive advantage in an industry? A. Bypass attack B. Encirclement C. Raise structural barriers D. Flanking maneuver E. Frontal assault
E. Frontal assault
Which of the following is the redesign of a business process to increase profitability, improve service, and manage time in an organization? A. Synergy B. Job rotation C. Job enrichment D. Product-group structure E. Reengineering
E. Reengineering
In which stage of the organizational life cycle is the dismemberment of structure? A. Stage II: Growth B. Stage IV: Decline C. Stage I: Birth D. Stage III: Maturity E. Stage V: Death
E. Stage V: Death
Which of the following is NOT a long-term reversal in organizational growth known as a "stall point category"? A. Premium position backfires B. Break-down in innovation management C. Short-run talent and capabilities D. Core business abandoned E. Strategic implementation
E. Strategic implementation
All of the following are forms of synergy that occur in an organization EXCEPT ________. A. pooled negotiating power B. new business creation C. shared know-how D. shared tangible resources E. individualized strategies
E. individualized strategies
The _________ center measures performance in terms of the difference between its resources and its products in the workplace? A. revenue B. standard cost C. expense D. profit E. investment
E. investment
Which of the following promotes centralized-decision making and enables a company to introduce and manage similar products around the world? A. Product-group structure B. Job design C. Reengineering D. Network organization E. Geographic-area structure
E. Geographic-area structure
Which of the following methods in an organization excludes developmental expenses as a separate expense from the current operational expenses? A. Behavior substitution B. Long-term evaluation method C. Weighted-factor method D. Suboptimization E. Strategic-funds method
E. Strategic-funds method
Tailored to match measurements with rewards, the _____________ measures and rewards the performance of top SBUs managers when performance factors vary in the individual SBUs in an organization? A. suboptimization B. behavior substitution C. strategic-funds method D. long-term evaluation method E. weighted-factor method
E. weighted-factor method
________ is the outsourcing of an activity or a function to a wholly owned company or an independent provider in another country. A. Parallel sourcing B. Multiple sourcing C. Onsourcing D. Offshoring E. Sole sourcing
D. Offshoring
Which of the following strategies refers to an organization that intentionally produces less than half of its own incidentals, and it purchases the remaining incidentals from outside suppliers in the marketplace? A. Taper integration B. Forward integration C. Backward integration D. Quasi-integration E. Full integration
A. Taper integration
All of the following are a category type in the BCG Growth-Share Matrix EXCEPT ________. A. exclamation marks B. dog C. cash cows D. stars E. question marks
A. exclamation marks
A(n) ________ strategy is a strategy to avoid that occurs when a strategic manager imitates the strategy of a competitor in the marketplace; whereas a strategic manager that implements ________ strategy achieves success when he or she pioneers a successful product and continues to search for another super product that will ensure the growth and prosperity in the organization. A. follow the leader; hit another home run B. arms race; do everything C. do everything; losing hand D. hit another homerun; follow the leader E. losing hand; follow the leader
A. follow the leader; hit another home run
A(n) ________ strategy is the orientation in a corporate directional strategy that expands the company's activities in an organization. A. growth B. parenting C. synergy D. stability E. retrenchment
A. growth
In a(n) ________ strategy, strategic managers can capture a larger share of an existing market for current products through market saturation or market penetration; whereas a strategic manager uses a(n) ________ strategy to develop new products for existing markets. A. market development; product development B. product development; market development C. functional; market development D. financial; R&D E. operations; financial
A. market development; product development
In ________, large, multi-business corporations compete against other large multi-business firms in a number of markets. A. multipoint competition B. vertical growth C. corporate parenting D. portfolio analysis E. horizontal strategy
A. multipoint competition
A firm that uses alliances and connections with corporate, government, academic labs, and consumers to develop new products and processes uses ________, a newer approach to R&D. A. open innovation B. dedicated transfer lines C. technology scouts D. operations strategy E. technical follower
A. open innovation
__________________ is the method an organization can use to allocate indirect and fixed costs to products that it bases from value-added activities in the workplace? A. Activity-based costing (ABC) B. Enterprise resource planning (ERP) software C. Short-term orientation D. Benchmarking E. Traditional cost accounting
A. Activity-based costing (ABC)
Tailored to match measurements with rewards, the __________ compensates managers when the objectives are set over multiple years in the workplace? A. long-term evaluation method B. strategic-funds method C. weighted-factor method D. suboptimization E. behavior substitution
A. long-term evaluation method
In which essential ingredient of TQM can the organization quantify operational functions and ensure that employees can interpret the data? A. Accurate measurement of every critical variable in a company's operations B. An intense focus on customer satisfaction C. Internal as well as external customers D. New work relationships based on trust and teamwork E. Continuous improvement of products and services
A. Accurate measurement of every critical variable in a company's operations
_____________________ is a guideline for proper control used to help an organization achieve cooperation between divisions when the organization implements a form of qualitative or quantitative measures? A. Controls should monitor only meaningful activities and results, regardless of measurement difficulty B. Control should involve only the minimum amount of information needed to give a reliable picture of events C. Use long-term and short-term controls D. Controls should be timely so that corrective action can be taken before it is too late E. Controls should aim at pinpointing exceptions
A. Controls should monitor only meaningful activities and results, regardless of measurement difficulty
Instead of a continual and extensive resource-expensive attack on a competitor, a firm or business may choose to "hit and run." This tactic is referred to as _________________. A. Guerrilla warfare B. Encirclement C. Raise structural barriers D. Bypass attack E. Flanking maneuver
A. Guerrilla warfare
Which of the following is NOT an advantage of portfolio analysis? A. Portfolio analysis does not have real limitations that cause companies to reduce their use of this approach in the marketplace. B. Portfolio analysis contains a graphic depiction that facilitates communication. C. Portfolio analysis can determine whether the organization has cash-flow availability to use in expansion and growth scenarios. D. Portfolio analysis simulates the use of externally oriented data to supplement management's judgment in a scenario. E. Portfolio analysis encourages top managers to evaluate each of the organization's business units on an individual basis.
A. Portfolio analysis does not have real limitations that cause companies to reduce their use of this approach in the marketplace.
Which of the following focuses on the selection and use of employees in an organization? A. Staffing B. Integration manager C. Executive succession D. Leading E. Assessment center
A. Staffing
_____________________ in the benchmarking process the organization implements new endeavors and compares performance to primary competitors in the marketplace? A. Step VI: Implement the programs and then compare the resulting new measurements with those results of primary competitors in the marketplace. B. Step II: Find behavioral and output measures of the area or process and use that data to obtain measurements. C. Step III: Select an accessible set of competitors and primary competitors against which to benchmark. D. Step V: Develop tactical programs to close performance gaps in the organization. E. Step IV: Calculate the differences among the organization's performance measurements and compare those differences of the primary competitor and determine why the differences exist.
A. Step VI: Implement the programs and then compare the resulting new measurements with those results of primary competitors in the marketplace.
All of the following are true about strategies to hire and train employees EXCEPT ________. A. a new strategy or policy never relates to new human resource management priorities and different uses of personnel in the workplace B. an organization might discover that it needs to hire different individuals and groups or retrain current employees to meet organizational goals and objectives C. training is important when an organization implements a retrenchment strategy D. employee selection and training are important to the success of a new strategy in an organization E. training is an important consideration in a differentiation strategy that emphasizes quality or customer service in an organization
A. a new strategy or policy never relates to new human resource management priorities and different uses of personnel in the workplace
Executive managers who implement succession plans utilize best practices that include all of the following EXCEPT ________. A. executive characteristics never influence strategic outcomes at an organization B. executive managers can provide financial incentives to motivate employees C. executive managers compare the inter nal candidates in a succession plan to an outside candidate to ensure the candidates contain pertinent skills and abilities D. executive managers look outside the organization to recruit a new CEO candidate only if there are no internal candidates to fill the position internally E. encouraging boards to help the CEO create a succession plan
A. executive characteristics never influence strategic outcomes at an organization
In the __________ center resources are measured in dollars without consideration to the service and product costs? A. expense B. investment C. profit D. revenue E. standard cost
A. expense
Which of the following occurs when an organization forfeits control of the organization to a court in return for a predetermined settlement? A. Consolidation B. Bankruptcy C. Sell-out D. Contraction E. Liquidation
B. Bankruptcy
In which step of the Six Sigma process does an organization develop controls to monitor and eliminate defects that occur on the production line? A. Step III: Analyze B. Step V: Establish C. Step I: Define D. Step II: Measure E. Step IV: Improve
B. Step V: Establish
Which of the following guidelines for proper control should an organization use to monitor or measure the steering control factors that influence performance in the organization? A. Control should involve only the minimum amount of information needed to give a reliable picture of events. B. Long-term and short-term controls should be used. C. Controls should be timely so that corrective action can be taken before it is too late. D. Controls should monitor only meaningful activities and results, regardless of measurement difficulty. E. Controls should aim at pinpointing exceptions.
C. Controls should be timely so that corrective action can be taken before it is too late.
The result of dividing net income before taxes by the total amount invested in the organization is ______________? A. return on equity (ROE) B. economic value added (EVA) C. return on investment (ROI) D. enterprise risk management (ERM) E. earnings per share (EPS)
C. return on investment (ROI)
Which of the following strategies can a strategic manager use to form closer relationships with both the customers and suppliers through sophisticated extranets in an organization? A. Operations strategy B. Purchasing strategy C. Human resource management strategy D. Information technology strategy E. Logistics strategy
D. Information technology strategy
Strategic managers evaluate strategic alternatives to ensure they meet all of the following criteria EXCEPT ________. A. completeness B. mutual exclusivity C. success D. developing policies E. internal consistency
D. developing policies
The action plan to develop a new advertising program should include all of the following EXCEPT ________________. A. Dates to begin and end each action B. Specific actions to be taken for making the program operational C. Expected financial and physical consequences for each action D. Select a program to implement a particular strategy E. Contingency plans
D. Select a program to implement a particular strategy
What is the initial effort to quickly "stop the bleeding" with a general across-the-board cutback in size and costs in a turnaround strategy? A. Consolidation B. Sell-out strategy C. Divestment D. Bankruptcy E. Contraction
E. Contraction
Which of the following is the strategy that is used to represent an organization that has multiple business lines and chooses to sell off a division that has low growth potential? A. Liquidation B. Captive company strategy C. Pause/proceed-with-caution D. No-change strategy E. Divestment
E. Divestment
________ reduces transaction costs and builds quality because the purchaser and supplier work together as partners; whereas in a(n) ________, two suppliers are the sole suppliers of two different parts. A. Offshoring; multiple sourcing B. Outsourcing; multiple sourcing C. Multiple sourcing; offshoring D. Outsourcing; offshoring E. Sole sourcing; parallel sourcing
E. Sole sourcing; parallel sourcing
______________ occurs when an organization reviews each responsibility center or functional unit as a separate entity from the organization? A. Strategic-funds method B. Behavior substitution C. Long-term evaluation method D. Weighted-factor method E. Suboptimization
E. Suboptimization
Which of the following represents an organization that eliminates its in-house business functions and outsources many business activities in the organization? A. Procedure B. Product-area structure C. Cellular organization D. Geographic-area structure E. Virtual organization
E. Virtual organization
TQM's essential ingredients include all of the following EXCEPT ___________________. A. accurate measurement of every critical variable in a company's operations B. continuous improvement of products and services C. new work relationships based on trust and teamwork D. an intense focus on customer satisfaction E. establishing and communicating organizational objectives
E. establishing and communicating organizational objectives