(MGT3200) EXAM ONE Review
At what level of the management pyramid are line managers located?
A) 1st-line B) Middle C) Top D) All of the above, line manager are located at all levels of the management pyramid E) Line managers are located at 1st line and middle only
In the business portfolio matrix approach to strategy formulation, if a business has a low share of a low growth market, then its business-level strategy should be ________.
A) A growth strategy B) A divestment strategy C) A retrenchment strategy D) A stable growth strategy E) Either a retrenchment or divestment strategy depending on the profitability of the business
Johnny Blaze is a production manager at Ferrara Fire Apparatus in Holden, Louisiana. He oversees the manufacturing of custom built, heavy duty fire trucks at the plant. Johnny Blaze is __________.
A) A line manager B) A 1st-line manager C) A functional manager D) All of the above
According to the textbook, resources are a source of competitive advantage only when they:
A) Are difficult to imitate B) Are readily available C) Involve technology D) Are expensive
According to the textbook, which of the following statement is true concerning the relationship between social responsibility and organizational financial performance?
A) As an organization's social responsibility efforts increase, organizational financial performance decreases B) As an organization's social responsibility efforts increase, organizational financial performance increases. C) An organization that emphasizes social responsibility is no more or no less likely to be profitable than an organization that does not emphasize social responsibility. D) None of the above is true concerning the relationship between social responsibility and organizational performance
In the future, companies who want to enter the electric vehicle market will face a significant barrier to entry. The barrier will be that the electric vehicle manufacturers already in the marketplace will have locked in long-term contracts from a variety precious metals and minerals necessary to make batteries. These precious metals and materials will become even more scarce and expensive. Which of the following barriers to entry into market does this scenario best illustrates.
A) Brand loyalty B) Government regulations C) Cost advantages D) Capital Requirements
Which of the following characteristics of an open system is synonymous with teamwork?
A) Buffering the technical core B) Equifinality C) Role differentiation and specialization D) Negative entropy E) Synergy
If an organization has a high share of a low growth market, it will be classified as a __________ in the Business Portfolio Matrix Approach to strategy formulation.
A) Cash cow B) Dog C) New Venture D) Star
In phase 5 of the planning process: evaluating results, which function of management is relied upon the most?
A) Controlling B) Staffing C) Leading D) Organizing E) Planning
An organization that is attempting to prove legitimacy is focused primarily on which component of the external environment?
A) Customer component B) Governmental component C) Societal component D) Supplier component E) Economic component
Which phase of the planning process is most directly and negatively affected when the manager engages in the "shoot the messenger" syndrome?
A) Developing premises B) Implementing a course of action C) Decision making D) Evaluating results E) Establishing objectives
According to the open system characteristics of equifinality, which of Porter's generic strategies is the best?
A) Differentiation B) Overall Cost Leadership C) Focus D) Any of the three generic strategies could be the best according to the open system characteristic of equifinality
Bosch manufactures dishwashing machines that offer large capacity, spot-free cleaning performance, quiet operation and the highest reliability in the industry. Bosch dishwashers are offered to consumers at a higher price than most dishwashers on the market. Which of Porter's marketing strategies is Bosch utilizing in this example?
A) Differentiation B) Prospector C) Focus D) Overall Cost Leadership
Which of the following components of a well-thought out strategy is most like the concept of competitive advantage?
A) Distinctive competence B) Resource deployment C) Scope D) Synergy
Burrow Sports, a sporting goods manufacturer based in Athens, Ohio, received $2 million grant from the United States Government Paycheck Protection Program (PPP) to help it continue its operations and keep its workers fully employed during the COVID 19-pandemic. This grant along with the company's excellent leadership and operation efficiency allowed the company to realize record setting profits for the fiscal years of 2020 and 2021. Joey Burrow, the company's CEO, decided to return the $2 million grant to the US government even though these grants were forgiven by the government and did not require the companies who received them to repay the grants. According to the textbook, this action taken by Burrow Sports is an example of _________ social responsibility
A) Ethical B) Legal C) Political D) Philanthropic E) Economic
Which of the following is a barrier to entry into a marketplace/industry?
A) High start up costs B) Brand loyalty of customers C) Government regulations such as patents D) Distribution channels to market are tied up E) All of the above are barriers to entry
According to the textbook, creating supplies of excess resources in case of unpredictable needs is called _______.
A) Hoarding B) Buffering C) Smoothing D) Complimenting
Which of the following activities does a successful manager in Luthans Real Manager Study spend the majority of her time on?
A) Human resource management B) Traditional management activities of planning and decision-making C) Communication D) Networking
J. C Penney is a brick and mortar retailer who has seen its share of the retail market shrink dramatically over the last several years. At the same time, J.C Penny in an effort to retrench has closed hundreds of its stores and has significantly reduced staff. Even with the cost-cutting measures, J.C. Penny is still losing sales/customers. From the facts presented, J.C. Penny's effectiveness ____________ and efficiency ___________.
A) Is decreasing, is increasing B) Is increasing, is increasing C) Is decreasing, is decreasing D) is increasing, is decreasing
Which of the following is NOT true concerning a defender strategy in the Adaptation Model of Strategy?
A) It has an efficient production process B) It has fewer rules and regulations and cost controls than a prospector strategy C) Its business level strategy is stable growth D) It works best in an external environment that has a slow rate of change
Which of the following is NOT true concerning the prospector strategy in the Adaptation model?
A) It has fewer rules and regulations and cost controls than a defender strategy B) It has flexible production process C) Its motto is "to make money you need to spend money" D) It works best in a dynamic environment E) Its business level strategy is stable growth
Which of the following is true concerning the economy?
A) It indirectly affects business by affecting demand for products/services B) Managers prefer rapid expansion of the economy to create growth opportunities C) A declining economy can force some companies to adopt growth strategies D) All of the above are true concerning the economy
Which of the following is NOT true concerning the economy?
A) It indirectly affects business by affecting demand for products/services B) Managers prefer rapid growth in the economy C) A declining economy can force some companies to adopt retrenchment strategies D) An expanding economy can create growth opportunities for existing companies as well as new companies E) Consume confidence in the economy can lead to a self-fulfilling prophecy (for example, if consumers thank there will be a recession, then they will create a recession by saving their money rather than spending it)
Which of the following is not true concerning environmental scanning?
A) It provides the foundation for strategic planning B) It's one of the most important responsibilities of middle management C) It's an information gathering process D) Its outcome is the clear identification of threats and opportunities in the environment
Which of the following is NOT true concerning contingency planning?
A) It's a reactive approach to planning B) It works best in a stable environment C) Every plan developed in contingency planned will eventually by implemented D) All of the above are not true concerning contingency planning
According to the article "Avoid Pricing Yourself Short", the best companies offer:
A) Lowest prices B) Best quality C) Best service D) All three simultaneously E) Only 2 out of the 3 (price, quality, service)
Which of the following organizational subsystems deals directly with the organization's 2 major environmental dependencies?
A) Managerial B) Maintenance C) Boundary-spanning D) Production E) Adaptive
Hydra Company's sales and profits are plummeting. The Board of Directors of Hydra has determined that the company is in a steep decline and needs a new strategic direction to revitalize its sales and profits. As such, the Board has decided to bring in Diana Prince as Hydra's new CEO who will execute a turnaround strategy for the company. This is an example of which characteristics of an open system?
A) Negative entropy B) Synergy C) Equifinality D) Role differentiation and specialization
Which of the following would a top manager exclude from her corporate strategy, according to the Business Portfolio Matrix Approach?
A) New Ventures B) Stars C) Cash Cows D) Dogs that are profitable E) None of the above would be excluded from the corporate strategy
Which of the following would a top manager exclude from his corporate strategy, according to the Business Portfolio Matrix Approach?
A) New Ventures B) Stars C) Cash Cows D) Dogs that are profitable E) None of the above would be excluded from the corporate strategy
Which function of management is performed by a middle manager?
A) Planning B) Organizing C) Leading D) Controlling E) All of the above are performed by a middle manager
Which of the following is true according to Gresham's Law of Planning?
A) Planning failure is created by misplaced priorities B) Planning gets neglected because managers don't understand the value of planning C) Planning problems overshadow day-to-day problems at work D) All of the above are true
Which of the following does NOT occur when a new entrant enters the marketplace?
A) Prices tend to be forced down B) Power of the customer decreases C) Rivalry among organization increases D) Product supply increases E) Resources costs of companies already in the marketplace increase
When human resource analytics (the use of statistics) allows a business to identity those applicants for a job who will be most productive in that job, the use of human resource analytics in hiring is a ______ innovation that focuses on ______ .
A) Product, efficiency B) Process, efficiency C) Product, effectiveness D) Process, effectiveness
Which organizational subsystem is equally focused on the internal environment of the organization and the external environment?
A) Production B) Maintenance C) Adaptive D) Boundary spanning E) Managerial
Which function of management does a top manager spend the most time on?
A) Staffing B) Planning C) Leading D) Organizing E) Controlling
Which skill is more important to a general manager than a functional manager?
A) Technical B) Human C) Conceptual D) All the skills above are more important to a general manager than a function manager
How much more does it cost to find a new customer than to keep an old one, according to total quality management experts?
A) Ten times as much B) Two times as much C) Three times as much D) Five times as much
Roadrunner Products is the only manufacturer of a patented leakproof valve for industrial applications. ACME construction wants to include valves from Roadrunner in a project big for a potential customer because the valves fit the customer's needs perfectly. However, Roadrunner charges very high prices for its valves and it will not give ACME a price break because their valves are in such high demand from other construction companies. ACME is concerned that this could cause them to miss out on the project due to their project bid being more expensive. This situation is indicative of:
A) The high power of customers B) The high power of suppliers C) High rivalry among organizations D) The threat of substitution
Which of the following is NOT true concerning customers?
A) The lowest level of customer service is accuracy, according to Buckingham and Coffman B) The highest level of customer service is advice, according to Buckingham and Coffman C) Having happy employees will lead to having happy customers D) The cyclical nature of the transformation process demonstrates that customers are more important than suppliers E) One of the ways to provide superior customer service is to make it easy for the customer to complain
Which manager identified in Luthans Real Manager Study needs to learn to train their replacement if they want to be promoted?
A) The successful manager B) The effective and successful manager C) The leader manager D) The effective manager
Which of the following is NOT true concerning political action committees (PACs)
A) They are a way for a company to influence the governmental component of the environment B) There is a $10,000 limit on indirect contributions from a PAC C) The limit on direct contributions from a PAC are $5,000 per candidate/per campaign D) They are compromised of employees and shareholders of the company
Which of the following is NOT true concerning substitutes?
A) They're typically the result of a technological innovation B) When they're first introduced, they're typically offered at a lower price than similar products/services C) They may lead to product/service obsolescence D) Battling against a substitute product/services typically involves price competition and aggressive markets E) They increase the power of the customer
Which of the following is true concerning of the economy?
A) it indirectly affects business by affecting demand for products/services B) managers prefer moderate, steady growth of the economy. C) a declining economy can force some companies to adopt retrenchment strategies. D) all of the above are true concerning the economy
The purpose of the management process is to
A) organize the various functions in a logical manner B) ensure that all employees are working together effectively C) Develop organizational goals and make logical decisions D) Achieve organizational goals efficiently E) Make sure things go as planned
The basic dilemma in planning is between ____________
Commitment and flexibility
