MKTG 449 exam 3

Galaxy Toys Inc., a toy manufacturing company, encourages its employees to enjoy their work by taking on additional responsibilities or switching jobs with each other. It allows its employees immense flexibility in charting their own career path within the organization. Chris has worked at Galaxy Toys for eight years, but has never had a boss or supervised an employee. Which of the following is most likely true in this scenario? A) Galaxy Toys' organizational culture is governed by codified rules. B) Galaxy Toys Inc. has a high degree of centralization. C) Galaxy Toys Inc. is a mechanistic organization. D) Galaxy Toys Inc. has a flat organizational structure.

Galaxy Toys Inc. has a flat organizational structure

Which of the following is an advantage offered by a functional structure? A) It allows for a higher degree of specialization and deeper domain expertise. B) It allows for an efficient top-down communication chain and thus relies on a relatively tall structure. C) It facilitates a lower level of specialization. D) It facilitates a lower division of labor, which is linked to higher productivity.

It allows for a higher degree of specialization and deeper domain expertise

One of Waterfall Apparel's core values is to provide unbeatable customer service, a commitment introduced to the company by its founder more than 10 years ago. This value is expressed in the company's "True to You" campaign, which promises a no-questions-asked returns policy and an offer to stitch the customer's initials onto any item for free using a patented sewing technique, two features that are not offered by any of Waterfall's competitors. Although the campaign has resulted in a 10 percent decline in profits, Waterfall has decided to continue to pursue its founder's vision to reward customers and maintain employees' sense of purpose. Why does Waterfall's culture, exemplified by the "True to You" campaign, fail to support a competitive advantage? A) It is not a rare resource. B) Waterfall lacks founder imprinting. C) It does not increase economic value creation for the firm. D) The culture is not difficult to imitate.

It does not increase economic value creation for the firm

A firm's ________ determines how the work efforts of individuals and teams are orchestrated and how resources are distributed. A) control B) norm C) culture D) structure

structure

Telescopic Inc., a web development firm, is headed by Rob Dennis, the CEO. Each functional department of the company—marketing, finance, and HR—has a president who reports to the CEO directly. Each department has various managers who manage teams. The managers report to the presidents, and the team leads report to the managers. Finally, the employees at the lowest level report to their team leads. It is rare for a lower-level employee to interact with the CEO of the company. In this scenario, Telescopic Inc. can be said to have a(n) _____________-. A) tall hierarchical structure. B) organic organizational structure. C) decentralized organizational structure. D) flat hierarchical structure.

tall hierarchical structure

Which of the following is true of the codes of conduct of an organization? A) They detail how the organization expects an employee to behave and to represent the company in business dealings. B) They are a guide to determine what is lawful and what is unlawful. C) They are a reiteration of the laws pertaining to business dealings in a corporate environment. D) They help the board of directors and the CEO implement shareholder capitalism.

They detail how the organization expects an employee to behave and to represent the company in business dealings

Three months ago, Darren became a board member at Runswell, a publicly traded company. Two weeks ago, the board members discovered that Runswell's CEO is facing a lawsuit from a family member who accuses the CEO of theft. Based on what you have read, to what ethical standard should Darren and the other board members hold the CEO? A) They should hold her to the same ethical standards that they would expect of any Runswell employee—no more, no less. B) They must hold her to the highest ethical standards because the leaders of publicly traded companies must withstand intense public scrutiny. C) The board members must wait until the lawsuit results in a settlement or a guilty verdict. D) If the board members are able to determine that the CEO is not a "bad apple," then they should give her their full support.

They must hold her to the highest ethical standards because the leaders of publicly traded companies must withstand intense public scrutiny

W. L. Gore & Associates is organized in such a way that it has no formal job titles, job descriptions, or chains of command. This implies that it has __________. A) a top-down management style. B) a decentralized structure. C) organizational inertia. D) a formalized structure.

a decentralized structure

Barrett is the ethics officer at Exton Corp., a publicly traded company. She wants to make sure that on-the-job consumption at Exton stays within legal and ethical bounds. Which action should she and the Exton board of directors take? A) Do nothing. On-the-job consumption is a necessary part of hiring and retaining key executives. B) Set strict limits on what executives can spend on office redecoration or work-related celebrations. C) Forbid high-cost items such as executive office decoration, but permit lavish parties and celebrations because they are essential for morale. D) Permit on-the-job consumption but cancel executive bonuses.

Set strict limits on what executives can spend on office redecoration or work-related celebrations

ValueHealth is a successful drug manufacturer. Because the pharmaceutical industry features a high rate of change and the threat of disruption is high, ValueHealth should ____________. A) attempt to implement an unstructured organization. B) be prepared to restructure as the landscape changes. C) stick with the structure that brought it success no matter what happens. D) switch to whichever structure is most common in the industry.

be prepared to restructure as the landscape changes

One way to foster ethical behavior in employees is to ___________. A) avoid codifying organizational culture. B) align the vision statement of the organization with its informal culture. C) view clients as counter parties to transactions. D) create a control system that encourages desired values.

create a control system that encourages desired values

A mortgage-loan officer persuades unsuspecting consumers to sign up for exotic mortgages, such as "option ARMs." These mortgages offer borrowers the choice to pay less than the required interest, which is then added to the principal while the interest rate can adjust upward. Because of this setup, many borrowers are unable to repay the mortgage once the interest rates go up. Which of the following phrases best describes this scenario? A) ethical but not legal B) legal but not ethical C) neither legal nor ethical D) legal and ethical

legal but not ethical

Ethics is _________________. A) impossible to codify into law. B) the minimum acceptable standard in business practice. C) not synonymous with law. D) universal and cannot differ between cultures.

not synonymous with law

Which of the following is an unintended side effect of a high degree of specialization in an organization? A) decreased trade-off between breadth and depth of knowledge B) reduced employee satisfaction due to repetition of tasks C) decreased opportunities for the division of labor D) reduced productivity

reduce employee satisfaction due to repetition of tasks

InSeason Inc. started a chain of organic supermarkets that had initial success. The managers achieved a mastery of the firm's current environment, thereby filling a need in the market. However, InSeason defined and measured it success by financial metrics, with a focus on short-term performance. As a result, the firm put in place metrics and systems to accommodate and manage increasing firm size due to continued success. As a result of this tightly coupled system, InSeason developed a _________. A) innovative approach. B) holacratic system. C) significant value gap. D) resistance to change.

resistance to change