Principles of Management Exam 2 Set, Chapters 6-10
Strategic position emerges from three sources: a) (1) low-profit margin, many customers; (2) no needs, many customers; and (3) broad needs, few customers. b) (1) few needs, many customers; (2) broad needs, few customers; and (3) broad needs, many customers. c) (1) no needs, many customers; (2) broad needs, few customers; (3) broad needs, many customers. d) (1) high profits, many customers; (2) low profits, few customers; and (3) broad needs, many customers. e) (1) high-profit margin, few customers; (2) few needs, many customers; and (3) broad needs, few customers.
(1) few needs, many customers; (2) broad needs, few customers; and (3) broad needs, many customers. Explanation: Strategic position emerges from three sources: (1) few needs, many customers; (2) broad needs, few customers; (3) broad needs, many customers.
SWOT
* Also referred to as situational analysis * Includes Strengths, Weaknesses, Opportunities, and Threats
Rational / Classical Decision Making
* Explains how managers should make decisions * Assumes managers will make logical decisions that will be the optimum in furthering the organization's best interests
According to Bryan Barry, which of these are things a manager can do to keep a strategic plan on track? (select all that apply)
-Engage people -Stay focused -Keep it simple -Keep moving
What are two characteristics of strategy formulation? Choose all that apply.
-It is the basis for determining long-term goals. -It is a time-consuming process.
Corporate-level strategy: (select all that apply)
-answers questions such as "what business are we in?" and "what products and services shall we offer?" -focuses on the organization as a whole -involves senior executives in planning
What two things does the BCG matrix evaluate?
-business growth rates -market share
What are Porter's four competitive strategies?
-cost-leadership -differentiation -cost-focus -focused-differentiation
The three sources from which strategic position emerges are having:
-few needs and many customers -broad needs and few customers -broad needs and many customers
Which two of Porter's competitive strategies are appropriate when addressing a narrow market? Choose all that apply.
-focused-differentiation -cost focus
Select all of the true statements regarding unrelated diversification:
-it occurs when a company acquires another company in a completely unrelated business -companies may use it in an attempt to reduce risk
What are the three core processes of business identified by Bossidy and Charan?
-people -strategy -operations
What four characteristics are being addressed in a VRIO analysis?
-rarity -value -imitability -organization
Which of the following represent competitive forces used in Porter's model for industry analysis?
-threats of new entrants -bargaining power of buyers -bargaining power of suppliers -rivalry among competitors -threat of substitute products or services
Cons of Group Decision Making
1. A few people dominate or intimidate 2. Groupthink 3. Satisficing 4. Goal Displacement - occurs when the primary goal is subsumed by a secondary goal
7 Hindrances to Decision Making
1. Different priorities 2. Imperfect information 3. Different cognitive capacity, values, skills, habits, and unconscious reflexes 4. Time and money constraints 5. Information overload 6. Conflicting goals 7. Complexity
Strategic Management Process
1. Establish the mission and the vision, and values statement 2. Assess the current reality 3. Formulate the grand strategy 4. Implement the strategy 5. Maintain strategic control
Steps in Planning Process
1. Establish the organization's Mission & Vision Stmts 2. Formulate the Grand Strategy 3. Formulate the strategic, tactical, & operational plans 4. Control the Strategy
Pros of Group Decision Making
1. Greater pool of knowledge 2. Different perspectives 3. Intellectual Stimulation 4. Better understanding of Decision Rationale 6. Deeper commitment to the decision
4 Stages of Rational / Classical Decision Making
1. Identify the problem or opportunity 2. Think up alternative solutions 3. Evaluate alternatives & select a solution 4. Implement & evaluate the solution chosen
4 Steps to MBO
1. Managers & employees jointly set objectives for the employee 2. Managers develop action plans 3. Managers & employees periodically review the employee's performance 4. The manager makes a performance appraisal and rewards the employee accordingly
PESTEL (Environmental Scanning)
1. Political Issues 2. Economic Issues 3. Social Issues 4. Technological Issues 5. Environmental Issues 6. Legal Issues
SMART Goals
1. Specific 2. Measurable 3. Attainable 4. Results-Orientated 5. Target Dates
Porter's 4 competitive strategies
1. cost-leadership 2. differentiation 3. cost-focus 4. focused-differentiation
to keep a strategic plan on track
1. engage people 2. keep it simple 3. stay focused 4. keep moving
_______ is the arrangement of having discrete parts of a task done by different people.
A division of labor
Business Plan
A document that outlines a proposed firm's goals, the strategy for achieving them, and the standards for measuring success
________ is a control mechanism for making sure the right people do the right things at the right time.
A hierarchy of authority
Brainstorming
A technique used to help groups generate multiple ideas and alternatives for solving problems
What are some of the reasons that employees resist change?
An emotional or behavioral response to real or imagined threats to an established work routine
Controlling
Analyzing metrics during business activities to ensure completion of tasks and identify areas for improvement
The Internet has enabled consumers to "price shop" several retailers in order to find the best price for items such as appliances, electronics, and even cars. This has increased the consumer's ability to better negotiate favorable prices with retailers, demonstrating which of Porter's five competitive forces?
Bargaining power of buyers
Pacific Specialty Bikes store gets customized parts for its high-end models from a local manufacturer, Premium Supply. When the manufacturer announced a price increase, the bike store tried to switch to other local manufacturers but learned they that they wouldn't be able to meet delivery schedules. As a result, Pacific Bike chose to pay the higher prices from Premium Supply. Which of Porter's competitive forces does this demonstrate?
Bargaining power of suppliers
What does is mean to satisfice?
Because of constraints, managers don't make an exhaustive search for the best alternative. •Instead, managers seek alternatives until they find one that is satisfactory, not optimal. "good enough"
Why should you encourage Dionne to use groups to make decisions? Because groups use groupthink Because they seek decisions that are good enough Because they have a greater pool of knowledge Because groups cuts down on the variety of ideas
Because they have a greater pool of knowledge
Stores of data that are so vast that conventional database management systems cannot handle them, and very sophisticated analysis software and supercomputing-level hardware are required, are known as ____.
Big Data
Generating short-term wins in Kotter's organizational change model is one of the steps that is most like which part of Lewin's change model?
Changing
Which law created the EEOC?
Civil Rights Act (Title VII) - Prohibits discrimination on basis of race, color, religion, national origin, sex, or sexual orientation
groupthink
Cohesiveness isn't always good. When it results in groupthink, group or team members are friendly and tight-knit but unable to think "outside the box." The results of groupthink can include failure to consider new information and a loss of new ideas.
What 3 needs does self-determination theory say motivate employees?
Competence, Connection, autonomy
_______ involves gathering information about your competitors' activities so that you can anticipate their moves and react appropriately. For example, you may attend a trade show to learn what types of new products and new iPhone apps your competitors are planning to launch in the next six months. a) Environmental exploration b)Benchmarking c) Scouting d) Competitive intelligence e) MBO
Competitive Intelligence Explanation: Practicing competitive intelligence means gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately.
9 Decision Making Biases
Confirmation Bias Overconfidence Bias Representativeness Bias Availability Bias Hindsight Bias Framing Bias Anchoring and Adjustment Bias Escalation of Commitment Bias Sunk-Cost Bias
What personality trait is characterized by self-awareness, social awareness, self-management, and relationship management?
Conscientious
The president, chief financial officer, and chief operating officer of Jensen Mfg. meet annually to discuss the direction of the company including what products they will continue to offer and what new products they will introduce. Which level of strategic management does this represent?
Corporate level
Which level of strategic management focuses on the organization as a whole?
Corporate level
Which of Porter's four competitive strategies keeps the costs, and hence prices, of a product or service below those of competitors but targets only a narrow market?
Cost-focus strategy
Planning
Deciding upon business goals and the methods to achieve them
A graph of decisions and their possible consequences is a ______.
Decision Tree
Mission Statement
Describes what the group is going to do and why it is going to do that * Set up in present tense * Short, Clear, and Powerful
Rule
Designates a specific required action
Organizing
Determining the best allocation of people and resources
Which of Porter's four competitive strategies offers products or services that are of unique or superior value compared to those of competitors and that target a wide market?
Differentiation strategy
The strategy of moving into new lines of business is called _____.
Diversification
What strategy is American Tile Corp. using when it acquires a company that makes industrial cleaning products which American Tile doesn't currently offer?
Diversification
Workers who face discrimination in their jobs in the United States are best protected by ______ legislation.
EEO
Which of the following are the forces for change originating inside the organization?
Employee problems and managers' behavior
Program
Encompasses a range of projects or activities
Threats
Environment factors that hinder an organizations achieving a competitive advantage
Which theory is based on employees' perceptions of fairness in how they are rewarded for their efforts?
Equity Theory
What is the difference between enacted and espoused values?
Espoused values explicitly stated values and norms preferred by an organization. Enacted values represent the values and norms actually exhibited in the organization
Jordan plans to open a computer repair business this summer. As he plans, he writes down the long-term goals of the business so he can decide where he wants to go strategically. Which stage of the strategic management process is Jordan in?
Establish the mission, vision, and values statements
_____ is the process that helps align the last two phases of the strategic-management process: strategic implementation and strategic control.
Execution
What does expectancy, instrumentality, and valance mean?
Expectancy - will I be able to perform at the desired level of a task Instrumentality - what outcome will I receive if I perform at this level Valance - how much do I want the outcome
Which one of the Big 5 personality dimensions is the best predictor of job performance?
Extroversion, Agreeableness, emotional stability, conscientiousness, openness to experience
A local university is facing some tough decisions, so they are using the decision tree, which contains individuals, websites, and organizations that specialize in handling sensitive and difficult decisions. True or False
False
A logic manager is someone trained about matters of ethics in the workplace. True or False
False
Being aware of your decision-making style does not really help you determine your strengths and weaknesses as a decision maker, but it can help you understand when a decision needs to be made. True or False
False
Evidence-based management includes treating your organization as a finished prototype. True or False
False
To reduce the escalation of commitment, Shannon, the CEO, allows herself to be very influenced by the way a problem with her team is presented to her. True or False
False
True or false: It is common practice today for most small business owners to engage in strategic planning.
False
An offensive strategy is a grand strategy that involves reduction in the organization's efforts. For example, some large publishers are no longer publishing children's books because they are too expensive to produce and distribute, and because the profit margins are too low to justify the investment. True or False
False Explanation A defensive strategy, or a retrenchment strategy, is a grand strategy that involves reduction in the organization's efforts.
Sue and Jane Smith are writing the mission statement for their new consignment shop, Then & Now. Because they want their employees and business to grow and reach goals, Then & Now's mission statement should be positive and inspiring, pushing their organization and the workers to achieve goals that they believe are beyond its reach. True of False
False Explanation A mission statement should be positive and inspiring, and it should stretch the organization and its employees to achieve a desired future state that appears beyond its reach.
Several studies found that strategic planning does not benefit smaller companies, as they very seldom see improvements in financial performance from this type of planning. True or False
False Explanation Smaller companies (under 500 employees) account for about half of private-sector employment and two-thirds of net new jobs in recent years. One analysis of several studies found that strategic planning was appropriate not just for large firms—indeed, companies with fewer than 100 employees could benefit as well, although the improvement in financial performance was small. Nevertheless, the researchers concluded that "it may be that the small improvement in performance is not worth the effort involved in strategic planning unless a firm is in a very competitive industry where small differences in performance may affect the firm's survival potential."
Strategic positioning involves performing the same activities as rivals in a similar way, but at a lower cost. True or False
False Explanation Strategic positioning attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company. It means performing different activities from rivals, or performing similar activities in different ways.
To achieve a sustainable competitive advantage, La Grand Parfumerie (a company that develops women's perfumes and men's colognes) must benchmark its competition so that La Grand Parfumerie can produce the same products as its competition but at a lower price. True or False
False Explanation Strategy requires trade-offs in competing. Thus, a company has to choose not only what strategy to follow but what strategy not to follow. La Grand Parfumerie will not develop a competitive advantage by simply copying its competitors' products.
The organizational-management process consists of seven steps: (1) doing research, (2) establishing the mission and vision, (3) assessing the current reality, (4) formulating the grand strategy, (4) implementing the strategy, (6) maintaining strategic control, and (7) maintaining the feedback loop. True or False
False Explanation The strategic-management process has five steps, plus a feedback loop (see Figure 6.1): (1) establishing the mission and the vision, (2) assessing the current reality, (3) formulating the grand strategy, (4) implementing the strategy, and (5) maintaining strategic control and the feedback loop.
Hubris or arrogance born of past success and denial of risk and peril moving forward are associated with radical innovation. True or False?
False, Hubris or arrogance born of past success and denial of risk and peril moving forward are two of the five stages of institutional decline.
Ethics is one of the four primary areas in which organizational change is most often needed. True or False?
False, Models of change reveal four targeted areas in which change is most apt to be needed: people, technology, structure, and strategy.
Adaptive change is the introduction of a practice that is new to the organization.
False.
Organizational development managers and consultants follow a moving vehicle model.
False.
When a company improves the packaging of its product, it is introducing a radically innovative change.
False.
What are the disadvantages of group decision-making?
Few people dominate or intimidate, Satisficing - the "good enough" decision, Goal displacement - other issues may arise, Groupthink - agreeing for the sake of unanimity and thus avoid accurately assessing the decision situation
Vertical Integration
Firm expands into businesses that provide the supplies it needs to make its products or that distribute and sell its products
Operational Planning
First-line managers determine how to accomplish specific tasks with available resources within the next 1-52 weeks
Single-Use Plans
For activities not likely to be repeated in the future * Include: Program, Project
Standing Plans
For activities that occur repeatedly over time * Include: Policy, Procedure, and Rule
What kind of organizational structure groups people with similar occupational specialties together in formal groups
Functional Structure People with similar occupational specialties are put together in formal groups
Demonstrating to others how a new product will be made, how new customers will be reached, or how you'll beat your competitors is most helpful for fostering innovation in which way?
Gaining allies by communicating your vision.
What are the advantages of group decision-making?
Greater pool of knowledge, Different perspectives, Intellectual stimulation, Better understanding of decision rationale, Deeper commitment to the decision
A grand strategy that involves expansion of things like sales revenues, market share, or number of employees is known as a(n) _____ strategy.
Growth
Project
Has less scope and complexity than a program
______ consists of the activities that managers perform to plan for, attract, develop, and retain an effective workforce.
Human resource management
Tolerance for Ambiguity
Indicates the extent to which a person has a high need for structure or control in his or her life
Which of the following is not a characteristic of innovation?
Innovation can be systematized.
What are the differences between the 3 kinds of change?
Least threatening: Adaptive change Reintroduction of a familiar practice Somewhat threatening: Innovative change Introduction of a practice that is new to the organization Very threatening: Radically innovative change Involves introducing a practice that is new to the industry
What are the three levels organizational culture?
Level 1: Observable artifacts physical manifestations such as manner of dress, awards, myths and stories about the company visible behavior exhibited by managers and employees Level 2: Values Espoused values • explicitly stated values and norms preferred by an organization Enacted values • represent the values and norms actually exhibited in the organization Level 3: Basic Assumptions represent the core values of the organization's culture those taken for granted and highly resistant to change
Management by Objectives (MBO)
Management with the purpose of motivating subordinates
Which of the following is not a supertrend affecting the future of business?
Managers are thinking in terms of mass markets—mass communication, mass behavior, and mass values.
Tactical Planning
Middle managers determine what contributions their departments or similar work units can make with their given resources during the next 6-24 weeks
Which of these situations provides an external opportunity that the company may exploit to gain competitive advantage?
Monica's rare book company has weak competition.
Leading
Motivating, instructing, and supervising workers assigned to the activities
When pursuing a cost-focus strategy, a company would target a _____ market.
Narrow
What are the benefits of external recruiting?
New ideas, outside of company, less bias
observable artifacts
Observable artifacts of organizational culture are physical manifestations, such as manner of dress, awards, myths and stories about the company, rituals and ceremonies, and decorations, as well as visible behavior exhibited by managers and employees.
Which law aims to protect employee health and safety?
Occupational Safety and Health Act (OSHA)
Groupthink
Occurs when group members strive to agree for the sake of unanimity and thus avoid accurately assessing the decision situation
Consensus
Occurs when members are able to express their opinions and reach agreement to support the final decision
After completing his competitor analysis, Justin realized his company was the only one with all-natural ingredients in their pizza crust and could use this to get the pizza into more health food grocery stores. What aspect of a SWOT analysis has Justin uncovered?
Oppurtunity
What is OD and how does it work?
Organization development (OD) Set of techniques for implementing planned change to make people and organizations more effective
Policy
Outlines a general response to a designated problem or situation
Procedure
Outlines a response to particular problems or circumstances
What are some examples of forces for change that originate outside of the organization? Inside of the organization?
Outside: Age, education, skill level, gender, immigration Inside: unmet needs, job dissatisfaction, absenteeism and turnover, productivity, participation/suggestions
When a manager is so frantic to get rid of the problem that he or she can't deal with the situation realistically, this is known as ____.
Panic
What's an example of extrinsic rewards?
Pay raises and benefits, praise, trophy
3 core processes of business
People - consider who will benefit you in the future Strategy - consider how success will be accomplished Operations - consider what path will be followed
Which of the following is one of the ten leading reasons that employees resist change?
Poor timing
Which of the following is not a recommended way to manage innovation and change?
Prevent failure at all cost
Which of the following is not a recommended way to manage innovation and change?
Prevent failure at all cost.
There has recently been a social media frenzy regarding the use of "pink slime" as a beef additive, though it has been used safely for many years. Several grocery chains discontinued selling products containing it as part of what type of a response?
Reactive change
Why is the rational decision-making model not really how we make decisions?
Reality—Hindrances to Perfectly Rational Decision Making: •Complexity •Time and money constraints •Different cognitive capacity, values, skills, habits, and unconscious reflexes •Imperfect information •Information overload •Different priorities •Conflicting goals
Decision Making Styles
Reflects the combination of how an individual perceives and responds to information * Based on the idea that styles vary along 2 different dimensions: 1. Value Orientation 2. Tolerance for Ambiguity
What is organizational commitment?
Reflects the extent to which an employee identifies with an organization and is committed to its goals Research shows a significant positive relationship between organizational commitment and job satisfaction, performance, turnover, and organizational citizenship behavior
Refer to Figure 6.2. The "feedback loop" in the strategic-management process involves
Reversing actions if necessary
A(n) _____ analysis is an assessment of the strengths, weaknesses, opportunities, and threats affecting the organization.
SWOT
Dave and his partner are studying the strengths and weaknesses of their construction business, Ajax Construction, as well as researching the opportunities and threats in the external environment. Dave and his partner are conducting a: a) strength statement. b) SWOT analysis. c) synergy plan. d) contingency plan. e) forecast.
SWOT analysis Explanation: SWOT analysis, also known as a situational analysis, is a search for the strengths, weaknesses, opportunities, and threats affecting the organization.
Situational Analysis
See SWOT
When you take credit for your success but don't take the blame for your failures what bias are you experiencing?
Self-serving bias
Tactical Goals
Set by and for middle managers and focus on the actions needed to achieve strategic goals
Operational Goals
Set by or for first-line managers and are concerned with short-term matters associated with realizing tactical goals
Strategic Goals
Set by or for top managers and focus on objectives for the organization as a whole
Vision Statement
Short phrases that convey your hopes for the future * Shorter is better * Aspirating, uplifting, focused on aspiration
What five job characteristics influence employee motivation?
Skill variety, task identity, task significance, autonomy, feedback
Strengths
Skills and capacities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its missions
The obesity epidemic and the increase in related health problems in the United States would be considered what type of force for change in an organization?
Social pressures
What term describes the number of people reporting directly to a given manager?
Span of control: the number of people reporting directly to a given manager; narrow or wide
Goal
Specific commitment to achieve a measurable result within a stated period of time * Also known as an objective * Includes:Strategic, Tactical, and Operation
In which step of the strategic-management process does an organization establish the mission and vision statements?
Step one
_____ focuses on developing a comprehensive program for long-term success.
Strategic planning
______________ focus(es) on developing a comprehensive program for long-term success. a) Mission and vision statements b) Tactical plans c) A focused sigma plan d) A synergy plan e) Strategic planning
Strategic planning Explanation Feedback: Strategic planning is concerned with developing a comprehensive program for long-term success.
Which core process of business involves analyzing and understanding how success will be accomplished?
Strategy
Principle 3
Strategy involves creating "fit" among activities
Principle 1
Strategy is the creation of a unique and valuable position
Principle 2
Strategy requires trade-offs in competition
Anthony, the plant manager, was talking with another manager about Tim, the lead engineer in the corporate R & D department. Anthony remarked that "Tim is so bright, and is an expert in designing products. But like so many experts, he can't imagine what it's like to be as ignorant as the rest of us. I think at times, he cannot see things from an outsider's perspective." This is known as _____.
The Curse of Knowledge
Competitive Advantage (Sustainable)
The ability of an organization to produce goods or services more effectively than its competitors
Opportunities
The drawback's that the organization may exploit for competitive advantages
Weaknesses
The drawbacks that hinder an organization in executing strategies in pursuit of its mission
______ requires a manager to visit an earlier step in the strategic-management process in order to revise actions if necessary.
The feedback loop
Management Functions (POLC)
The set of core activities that defines the role of managers in a business environment * Include Planning, Organizing, Leading, and Controlling
What does business growth rate refer to, as used in the BCG matrix?
The speed of industry growth.
Anchoring and adjustment bias
The tendency to make decisions based on an initial figure
Availability bias
The use of information readily available from memory to make judgments
You own a small deli near campus and learn that the university is exploring whether it should open a Subway sandwich franchise in the Student Union. Which of Porter's competitive forces does this represent for you?
Threat of new entrants
Within a SWOT analysis, the letter "T" represents a company's _____.
Threats
The growing popularity of reading news online has significantly reduced the sales of print copies of US newspapers. Which of Porter's five competitive forces does this demonstrate?
Threats of substitute products or services
Strategic Planning
Top managers determine what the organization's long-term goals should be for the next 1-5 years with the resources they expect to have available
Donald, the owner of a popular restaurant, is a religious man, and he needs to make a decision on whether he will add beer and wine to his menu, based on the recommendations of his chefs and others. When confronted with a choice when making a decision, he tends to make his decisions based on his beliefs, even if evidence shows those beliefs are wrong. If his beliefs favor not serving alcohol in his café, according to the prior-hypothesis bias he would choose not to add beer and wine to his menu.
True
During a management workshop, Gerald, the HR manager, spoke about making decisions related to firing an employee. He said, "I have several rules of thumb that I use to make a decision. First, I ask if it's legal and then if it's ethical." He then laid out several other steps he uses in the decision-making process related to firing. Gerald's "rules of thumb" are also known as heuristics. True or False
True
During a management workshop, Tony, the HR manager, spoke about making decisions related to firing an employee. He said "I have several rules of thumb in which I use to make a decision. First, I ask if it's legal and then if it's ethical." He then laid out several other steps he uses in the decision-making process related to firing. Tony's rules of thumb are a strategy that he uses in this decision-making process, also known as heuristics.
True
Dynamic Apps is an organization specializing in highly specialized technology software, but it found that its original business idea is not working. Rather than failing as a company, it chose a new direction and rewrote its business plan. Dynamic Apps is an example of how managers need to think and act as if their organization is an unfinished, changeable prototype that won't be ruined by dangerous new ideas. True or False
True
Evidence-based management includes making decisions based on what actually works versus what ought to work. True or False
True
In deciding to decide, a manager agrees that he or she must decide what to do about a problem or opportunity and take effective decision-making steps.
True
Research shows that most managers have characteristics that fall into tow or three decision-making styles, and that decision-making styles vary across occupations, job level, and countries. True or False
True
Research shows that most managers have characteristics that fall into two or three decision-making styles, and that decision-making styles vary across occupations, job level, and countries.
True
Technology Specialists is an organization specializing in highly specialized technology software, but they found that their original business idea is not working. Rather than failing as a company, they chose a new direction and rewrote their business plan. Technology Specialists is an example of how managers need to think and act as if their organization is an unfinished prototype that won't be ruined by dangerous new ideas or it is impossible to change.
True
True or false: According to Bossidy and Charan, execution is the central part of any company's strategy.
True
When encouraging others to brainstorm, you should go for quantity over quality. True or False
True
A stability strategy is a grand strategy that involves little or no significant organizational change. For example, Love Forever is a jewelry store that sells only one type of item: engagement and wedding rings. The management of Love Forever does not plan to branch out into selling different types of jewelry; the company has a reputation for being the go-to store to purchase wedding rings, and it plans to maintain that strategy. True or False
True Explanation A stability strategy is a grand strategy that involves little or no significant change.
The owners of a computer repair shop want to better formulate strategies, so they are doing a SWOT analysis to understand the strengths and weaknesses within their company and the opportunities and threats of the external environment. These are some of the benefits of doing a SWOT analysis. True or False
True Explanation SWOT analysis should provide a realistic understanding of the organization in relation to its internal and external environments so that you can better formulate strategy in pursuit of the firm's mission.
Strategy implementation is putting strategic plans into effect, which means dealing with roadblocks within the organization's structure and culture and seeing if the right people and control systems are available to execute the plans. True or False
True Explanation Strategy implementation is putting strategic plans into effect. This means dealing with roadblocks within the organization's structure and culture and seeing if the right people and control systems are available to execute the plans.
Johnson's Fruit Farm is one of several stores in the county where customers can purchase locally grown fruits and vegetables. However, Mrs. Johnson also offers weekly workshops in her store on topics such as canning, healthy eating, and how to grow a garden, which no other store in the county does. By offering these unique workshops, the Johnsons are engaging in strategic positioning. True or False
True Explanation Strategic positioning means performing different activities from rivals, or performing similar activities in different ways.
OD intervention strategies may need to be adjusted when implementing them across countries.
True, OD effectiveness is affected by cross-cultural considerations. Thus, an OD intervention that worked in one country should not be blindly applied to a similar situation in another country.
A company that discovers it development costs are twice those of its competitors and reveals this to employees is using benchmarking to assist in the change process. True or False?
True, One technique used in unfreezing organizations is benchmarking, a process by which a company compares its performance with that of high-performing organizations. For example, one company discovered that its costs to develop a computer system were twice those of competitors and that the time to get a new product to market was four times longer. These data were ultimately used to unfreeze employees' attitudes and motivate people to change the organization's internal processes in order to remain competitive.
Disruptive innovation is a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.
True.
What are the steps in Lewin's Change Model?
Unfreezing- create the motivation to change Changing- New information, models, & procedures Refreezing- Support & reinforce the change
What is the difference between a structured interview and an unstructured interview?
Unstructured interviews gather information about job candidates without the use of a fixed set of questions or a systematic scoring procedure. Structured interviews involve asking each applicant the same questions and comparing their responses to a standardized set of answers.
data analytics
Used by underwriters to decide how much an insurance policy should cost a customer; they use historical industry trends and loan characteristics, to predict risk levels.
Organizational Charts
Visual representations of how a firm intends authority, responsibility, and information to flow within its formal organizational structures
Sunk-cost bias
Way of thinking in which managers add up all the money already spent on a project and conclude it is too costly to simply abandon it
Satisficing
When managers seek alternatives until they find one that is satisfactory, not optimal
Electronic Brainstorming
When members of a group come together over a computer network to generate ideas and alternatives * Sometimes called brainwriting
single-product strategy
a company makes and sells only one product within its market
Blue Ocean Strategy
a company's creating a new, uncontested market space that makes competitors irrelevant, creates new consumer value, and decreases costs
Organizational structure is
a formal system of task and reporting relationships that coordinate and motivates an organization's members so that they can work together to achieve the organization's goals.
growth strategy
a grand strategy that involves expansion - as in sales revenues, market share, number of employees, or number of customers or (for nonprofits) clients served
stability strategy
a grand strategy that involves little or no significant change
defensive strategy (retrenchment strategy)
a grand strategy that involves reduction in the organization's efforts
decision tree
a graph of decisions and their possible consequences; it is used to create a plan to reach a goal
BCG Matrix
a means of evaluating strategic business units on the basis of (1) their business growth rates and (2) their share of the market
Benchmarking
a process by which a company compares its performance with that of high-performing organizations
SWOT analysis (situational analysis)
a search for the Strengths, Weaknesses, Opportunities, and Threats affecting the organization
organization
a system of consciously coordinated activities or forces of two or more people
forecast
a vision or projection of the future
Grand Strategy
after the assessment of the current reality, explains how the organization's mission is to be accomplished
Which of the following is not true about group decision making? they take longer to make decisions the larger the group, the lower quality decision an added benefit is groupthink they're more confident about their choices than individuals
an added benefit of group decision making is groupthink
According to Chester I. Barnard's classic definition
an organization is a system of consciously coordinated activities or forces of two or more people.
4 general decision making styles
analytical, conceptual, directive, behavioral
To help with hiring decisions during peak seasons and holidays, Touching Cards uses time-series forecasts, like sales from last Valentine's Day and Christmas, to predict future sales based on patterns of historical data. They are making use of _____. a seasonal trend a trend decision diagnosis analytics
analytics
To help with hiring decisions during peak seasons and holidays, Touching Cards uses time-series forecasts, like sales from last Valentine's Day and Christmas, to predict future sales based on patterns of historical data. This defines ___.
analytics
Which of the following are not parts of compensation?
annual performance reviews
To understand your own values, you should
articulate them in writing and test them through daily decision making.
Don knows that one of the reasons people do not return to his electronics store is because of the slow service. How would a SWOT analysis classify the slow service at Don's electronic store?
as a weakness
The second step of the strategic management process involves
assessing the current reality
* strategic positioning
attempts to achieve sustainable competitive advantage by preserving what is distinctive about a company 1) Few needs, many customers 2) Broads needs, few customers 3) Broad needs, many customers
In a mechanistic organization
authority is centralized, tasks and rules are clearly specified, and employees are closely supervised
In an organic organization
authority is decentralized, there are few rules and procedures, tasks are shared, and networks of employees are encourage to cooperate and respond quickly to unexpected tasks.
Bethany wants to buy a pair of designer boots. To find the best price, she searches the Internet and compares prices among the eight sites that sell the boots. Which of Porter's five competitive forces is demonstrated in this scenario?
bargaining power of buyers
The question "What was the best idea you ever sold to a supervisor, teacher, peer, or subordinate?" would be used in which type of interview situation?
behavioral-description interview
Companies pursuing a cost-leadership strategy keep costs/prices _____ those of competitors and target a _____ market.
below; wide
Juanita feels it is important for her taxi company to continually measure itself against its best competition. She keeps track of the number of rides per hour and turnaround times for all her drivers and compares it to that of other high-performing taxi companies in the area. Juanita is using the process of _____ to compare her company with another.
benchmarking
The process by which a company compares its performance with that of other high-performing organizations is known as _______.
benchmarking
Stores of data that are so vast that conventional database management systems cannot handle them, and very sophisticated analysis software and supercomputing-level hardware are required, are known as ____. cyberage databases big data mega IT super data
big data
Instructor Services is a technology company that offers many IT services in highly populated southern Ohio. The company's services and products include computer training, support, monitoring, repair, network design, virus removal, and software upgrades. It even sells refurbished computers. The source of Instructor Services' strategic position is
broad needs and many customers.
The BCG matrix is a means of evaluating strategic business units on the basis of their
business growth rates and share of the market.
Porter's model for industry analysis
business-level strategies originate in five primary competitive forces in the firm's environment: (1) threats of new entrants, (2) bargaining power of suppliers, (3) bargaining power of buyers, (4) threats of substitute products or services, and (5) rivalry among competitors
environmental scanning
careful monitoring of an organization's internal and external environments to detect early signs of opportunities and threats that may influence the firm's plans
A __________ is a consultant with a background in behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways.
change agent
A consultant with a background in behavioral sciences who can be a catalyst in helping organizations deal with old problems in new ways is known as a(n)
change agent.
George, a chef and owner of L'Auberge, a popular restaurant, is always visiting his competitors to observe how they are doing things in their restaurants. He told one of his managers, "I eat dinner at a lot of restaurants because I want to know what is going on. I am always concerned that one of our competitors will surprise us with a new service or menu item, like ours but better." In which activity is George engaging?
competitive intelligence
Pedro, CEO of a successful IT company, is constantly reading press releases, ads, and news articles about his competition. He regularly checks information about new competitive products and visits trade shows to study his competition. Pedro is involved in
competitive intelligence.
strategic control
consists of monitoring the execution of strategy and making adjustments, if necessary
Strategic _____ involves monitoring the execution of strategy and taking corrective action when necessary.
control
The common purpose is realized through
coordinated effort, the coordination of individual efforts into a group or organization-wide effort.
Computer maker Dell tries to have the lowest prices for its computers in order to attract a large consumer group. In Porter's four competitive strategies, this would be an example of the _____ strategy.
cost-leadership
contingency planning (scenario analysis)
creation of alternative hypothetical but equally likely future conditions
Johanna has been asked by the department manager to prepare a SWOT analysis on two of the company's products. In which step of the strategic management process would a company use a SWOT analysis?
current reality assessment
The combination of how an individual perceives and responds to information is a reflection of their ____.
decision making style
A _____ is a graph of decisions and their possible consequences. decision structure corporate hierarchy resolution graph decision tree
decision tree
A corporate culture is a
defined set of shared, taken-for-granted implicit assumptions that a group holds and that determines how it perceives, thinks about, and reacts to its various environments.
Analyzing the underlying causes is the process of ____.
diagnoses
______ is the process of analyzing the underlying causes. digging analytics undermining diagnosis
diagnosis
The organizational development (OD) process has three steps: ___________, accompanied by feedback.
diagnosis, intervention, and evaluation
Smartwater is a brand of bottled water that promotes health benefits and features a tall, smooth, clear bottle not found in competitor brands. Based on this, which of Porter's competitive strategies is the company using?
differentiation
According to Harvard Business School professor Michael Porter, strategic positioning means _____ to achieve sustainable competitive advantage.
distinctive positioning
Quality Services is an organization that operates several companies that market food products, restaurant equipment, and paper and plastic products, and it even has a division that counsels restaurant owners, helping them launch new restaurants successfully. Quality Services is pursuing a _____ strategy.
diversification
Organizational weaknesses
drawbacks that hinder an organization in executing strategies in pursuit of its mission
Business growth rate, as used in the BCG matrix, is concerned with how fast the _____ is(are) growing.
entire industry
organizational threats
environmental factors that hinder an organization's achieving a competitive advantage
* Organizational opportunities
environmental factors that the organization may exploit for competitive advantage
Embedding organizational culture is
essentially a teaching process—that is, a process in which members instruct each other about the organization's preferred values, beliefs, expectations, and behaviors.
Cynthia, the human resources manager, has significant experience handling ethical issues in the workplace. Over the years she has received extensive training in matters of workplace ethics. Due to Cynthia's legal background, the management of her company rely on Cynthia to assist them with legal issues, especially with ethical dilemmas. The ideal role for Cynthia within the organization is... oversight specialist whistle-blower ombudsman officer ethics officer
ethics officer
Pat, the human resources manager, has significant experience handling ethical issues in the workplace. Over the years he has received extensive training in matters of workplace ethics, and with a legal background, the management of his company rely on Pat to assist them with legal issues, especially with ethical dilemmas. Pat is a good example of a(n) _____.
ethics officer
Global CEOs desire ___________ even more than profit growth, stimulating innovation, customer loyalty, and finding qualified employees.
excellence in execution
Espoused values are
explicitly stated values and norms preferred by an organization.
Employees resist change for all the following reasons except
faith in change agent's intentions
Employees resist change for all the following reasons except
faith in change agent's intentions.
A logic manager is someone trained about matters of ethics in the workplace.
false
A product innovation is a change in the way a product or service is conceived, manufactured, or disseminated.
false
Adaptive change is the introduction of a practice that is new to the organization.
false
After 20 years on the job, Elvira retired. For several different reasons, the company decided not to replace Elvira with someone else. This is an example of turnover for a company.
false
Arbitration is the process in which a neutral third party, a mediator, listens to both sides in a dispute, makes suggestions, and encourages them to agree on a solution.
false
Before applying for a job as a contracts analyst, Carlos read the job analysis for the available position. This document indicated that the responsible employee reviews contracts for technical accuracy and completeness, and tracks invoices against the executed contracts.
false
Being aware of your decision-making style does not really help a person determine his or her strengths and weaknesses as a decision maker, but it can help them understand when a decision needs to be made.
false
Core innovations refer to the invention of breakthrough products or services that don't exist yet and that are aimed at creating brand-new markets and customers.
false
Decision making is the process of identifying and choosing individuals who can assist with looking at alternative choices.
false
Evidence-based management is the use of facts regarding an employee, for example when theft is suspected, and using a database to assist in decision making regarding future action.
false
For Megan's end-of-year performance appraisal, her supervisor solicited feedback from three of Megan's coworkers, the manager of the customer-service department, several of Megan's clients, and even a few employees in other departments with whom she worked recently. Megan's performance appraisal is an example of an employee survey.
false
In two-tier wage contracts, veteran employees are paid less or receive fewer benefits than new employees.
false
Innovation happens in a "Eureka!" moment and it can be systematized.
false
OD intervention strategies that are successful in one country are highly likely to be successfully applied in other countries.
false
Organizational development managers and consultants follow a moving vehicle model.
false
The local university is now facing some tough decisions, so they are using the decision tree, which contains individuals, web sites, and organizations that specialize in handling sensitive and difficult decisions.
false
When a company improves the packaging of its product, it is introducing a radically innovative change.
false
According to the BCG matrix, a company will do better in a _____ market in which it has a high market share.
fast-growing
What are the three sources of a unique and valuable strategic position?
few needs, many customers; broad needs, few customers; broad needs, many customers
A local karate studio offers many services: karate lessons to young children (under age 10), judo lessons to preteens, kickboxing courses for teenagers and adults, and self-defense courses for older people. We can say that the studio has achieved _____ because the studio's activities interact and reinforce one another.
fit
A _____ is a vision or projection of the future that is made following a SWOT analysis.
forecast
Leonore's Luxury Leather Footwear Corp. conducted a SWOT analysis and determined that at least 57% of consumers would demand high-end footwear and their sales should increase by 18% in the next year. This vision of what could happen is known as a _____.
forecast
Leela's Home Decorators believes that the demand for its services will expand greatly, because a real-estate developer has just purchased 100 acres in town. The developer is planning to build 1,000 condominium units on the property. The managers of Leela's Home Decorators are making a projection for the future, also known as a a) past correction. b) trend. c) benchmark. d) forecast. e) final analysis.
forecast Explanation: A forecast is a vision or projection of the future.
Nonprofit organizations are
formed to offer services to some clients, not to make a profit (examples: hospitals, colleges).
Strategy _______ is the process of choosing among different strategies and altering them to best fit the organization's needs.
formulation
competitive intelligence
gaining information about one's competitors' activities so that you can anticipate their moves and react appropriately
Advantages of Group Decision Making
greater pool of knowledge, different perspectives, intellectual stimulation, better understanding of decision rationale, deeper commitment to the decision
innovation strategy
growing market share or profits by innovating improvements in products or services
A business that wants to reach more customers and hires more employees to get this done is focusing on a _____ strategy.
growth
3 common grand strategies
growth, stability, defensive
An adhocracy culture
has an external focus and values flexibility (attempts to create innovative products (for example, new drugs) by being adaptable, creative, and quick to respond to changes in the marketplace.) Employees are encouraged to take risks
A hierarchy culture
has an internal focus and values stability and control over flexibility.
Omar, who works as a waiter in a top restaurant in Manhattan, likes the fast pace of his work and the fact that things are always changing there. Omar can be said to... have a large need for structure have a low tolerance for ambiguity have a high task orientation have a high tolerance for ambiguity
have a high tolerance for ambiguity
Salvador, who works as a waiter in a top restaurant in Manhattan, likes the fast pace of his work and the fact that things are always changing there. Salvador can be said to _____.
have a high tolerance for ambiguity
Stars
have high growth, high market share - definite keepers
Dogs
have low growth, low market share - should be gotten rid of
Cash Cow
have slow growth but, high market shares. Income finances stars and question marks
trend analysis
hypothetical extension of a past series of events into the future
tolerance for ambiguity
indicates the extent to which a person has a high need for structure or control in his or her life
Porter's five competitive forces form a model for _____ analysis.
industry
When a grocery store chain adopts a new practice of its competitors by staying open 24 hours a day, requiring employees to work flexible schedules, it is considered a(n) ______ change.
innovative
When a grocery store chain adopts a new practice of its competitors by staying open 24 hours a day, requiring employees to work flexible schedules, it is implementing a(n) ______ change.
innovative
What is the representative bias?
involves estimating the likelihood of an event by comparing it to an existing prototype that already exists in our minds.
Cost Leadership
keep the costs, and hence prices, of a product or service below those of competitors and to target a wide market
To be successful, strategic planning requires a company to have a _____ orientation.
long-term
current reality assessment (organizational assessment)
look at where the organization stands and see what is working and what could be different so as to maximize efficiency and effectiveness in achieving the organization's mission
An advantage of decentralized authority is that
managers are encouraged to solve their own problems rather than buck the decision to a higher level. In addition, decisions are made more quickly, which increases the organization's flexibility and efficiency.
Organizational development managers and consultants follow a(n) ______ model.
medical-like
Francis, who is starting a painting business, plans to write down the purpose of his painting business and his company's reason for being. Francis is writing his: a) mission statement. b) code of ethics. c) vision statement. d) proprietorship pact. e) ownership belief statement.
mission statement Explanation: The mission statement is the organization's purpose or reason for being.
Ana is a teacher who became interested in helping adults in some of the poorer neighborhoods learn how to read. She plans to start a reading center in a low-income area to help residents with reading skills at no cost. Ana's center is an example of a(n)
nonprofit organization.
Which models of decision making describe how managers actually make decisions?
nonrational
Bossidy and Charan "Exeation"
not simply tactics; it is a central part of any company's strategy. Consists of: Questioning, analysis, and follow through to mesh strategy with reality, align people with goals, and achieve results promised
When considering SWOT analysis, what is an example of an organizational weakness?
obsolete technology
Computer-assisted instruction is usually a form of
off-the-job training
diverification
operating several businesses in order to spread the risk
Skate/24 had only one competitor in the local market and that competitor just went out of business. Within a SWOT analysis, this is an example of an organizational _________ for Skate/24.
opportunity
Environmental factors that an organization may exploit for competitive advantage are called organizational ______.
oppurtunities
A(n) ______ is a system of consciously coordinated activities or forces of two or more people.
organization
Stars are _____, according to the BCG matrix. Stars have included Apple and the diamond company DeBeers. a) beyond reach, due to their high purchase price and profits b) highly overvalued, so are not wise purchases c) companies with slow growth and high market share d) risky new ventures e) organizations with high growth and high market share which are definite keepers
organizations with high growth and high market share which are definite keepers Explanation: In the BCG matrix, stars have high growth and high market share, and they are definite keepers.
Within a SWOT analysis, an organizational threat will come from _____ the company.
outside
Salaried executive, administrative, and professional employees are exempt from ______ rules.
overtime
A company's overall ability to execute is a function of effectively executing according to three processes, but Bossidy and Charan believe that the _____ process is the most important.
people
According to Bossidy and Charan, the first core process of business is _____.
people
Of the three core processes of business identified by Bossidy and Charan, which do they believe is the most important?
people
One way Chip's Coffee House retains staff is by offering two-weeks paid vacation and health insurance benefits for part-time employees. Which of Bossidy and Charan's core processes is this business focusing on?
people
Successful controlling within an organization, according to Bossidy and Charan, demands that managers build a foundation of controlling using ___________, the three core processes.
people, strategy, and operations
_____ is the set of processes and managerial behaviors that involve defining, monitoring, measuring, evaluating, and providing consequences for performance expectations.
performance management
Strategic positioning attempts to achieve sustainable competitive advantage by:
preserving what is distinctive about a company
Which of the following is not a recommended way to manage innovation and change?
prevent failure at all cost
Strategy foundation
process of choosing among different strategies and altering them to best fit the organizations needs
In defensive avoidance, when a manager can't find a good solution, the manager follows with ____.
procrastination, passing the buck, or denying the risk of any negative consequences
strategy implementation
putting strategic plans into effect
Innovation that creates products, services, or technologies that replace existing ones is known as
radical innovation.
At first Rohan thought it was a good idea to offer a car repair pick-up service at his auto repair shop, but then he realized that most customers called Tow-It-Now Inc. and it would be difficult to match that company's service. Which part of a VRIO analysis helped Rohan evaluate this idea?
rarity
When conducting a VRIO analysis, one question that must be answered is, "Is the resource or capability currently controlled by only a few firms or no other firms? This would determine the _____ associated with the resource.
rarity
When a manager is trying to foster innovation, the first thing he or she should do is
recognize problems and opportunities.
Value Orientation
reflects the extent to which the person focuses on either task and technical concerns or people and social concerns when making decisions
A company that grows its business by purchasing a business that is related to its existing portfolio is engaging in _____.
related diversification
Kellyanne hired Joshua from Southwest University. He was an amazing employee and exceeded all her expectations. The next year, she received an application for a job opening from another graduate from Southwest University. She was very excited to hire another outstanding candidate. Kellyanne has... confirmation bias availability bias representation bias anchoring and adjustment bias
representation bias
An emotional or behavioral response to real or imagined threats to an established work routine is known as
resistance to change
question mark
risky new ventures- some will become stars and some will become dogs
Applications, résumés, interviews, and employment tests are all ______ tools.
selection
Gig companies, such as Amazon, Google, and Apple, are no longer content simply to enhance part of your life. Their new strategy is to build a device, sell it to consumers, and then
sell them the content to play on their device.
In a SWOT analysis, organizational strengths are
skills and capabilities that give a company advantages in executing its strategies.
* Organizational strength
skills and capabilities that give the organization special competencies and competitive advantages in executing strategies in pursuit of its vision
Disadvantages of Group Decision Making
social pressure, few people dominate, goal displacement, groupthink
Philip, a shift manager in a factory, has 40 employees on his shift that he directly supervises. The 40 workers who report directly to Philip represent his
span of control.
Which of the following is not a current trend in the contemporary world?
spending on health and wellness is decreasing
A(n) ______ strategy requires little or no change to a company's product or service.
stability
When Johnson & Johnson promoted its baby shampoo as a gentle cleanser suitable for adults, it did this without changing the formulation of the product. Which type of corporate strategy does this exemplify?
stability
A hierarchy culture has an internal focus; it values ____ over flexibility
stability and control
With small businesses in very competitive industries, small differences in performance may affect that company's survival. In this case, it is worth the effort for the company's managers to implement
strategic planning.
Having (1) few needs and many customers, (2) broad needs and few customers, and (3) broad needs and many customers are the three sources from which _____ emerges
strategic position
Michael Porter defined _____ as an attempt to achieve sustainable competitive advantage by preserving what is distinct about a company.
strategic positioning
The three key principles of ______ are the creation of a unique and valuable position, trade-offs in competing, and creating a "fit" among activities.
strategic positioning
Jeff, the owner of The Toy Box (a toy store), has chosen his products carefully. They are all handmade of wood; none are cheap games made of cardboard and paper. He knows he will be selling his toys to both adults and children; for example, his expensive chess and backgammon sets are quite expensive because the board and pieces are all made of wood by local artists and craftsmen. He knows that his customer base will not include parents who are looking for an inexpensive toy for their children or to give as a birthday gift; there is another store in town that offers mass-produced games. As part of his marketing outreach, Jeff offers "game nights" where he sets up game boards and invites local teens and adults to take part in light-hearted competitions, where the winners receive a 10 percent discount to a game at the Toy Box. All of Jeff's activities are aimed at giving Jeff a sustainable competitive advantage through ______. a) defensive strategy. b) blue ocean strategy. c) diversified portfolio. d) vertical integration. e) strategic positioning.
strategic positioning. Explanation: Strategic positioning attempts to achieve a sustainable competitive advantage by preserving what is distinctive about a company. Three key principles underlie strategic positioning: the creation of a unique and valuable position, trade-offs in competing, and creating a "fit" among activities.
In which core process of business developed by Bossidy and Charan would a company ask "Who is my competition?" and "How will my business make money on a sustainable basis?"
strategy
Rashid, the CEO of Top Productions, said to his new vice president of accounting, "In the past I had resistance to new ideas by employees who felt that our plans threatened their influence or their jobs. So when you tell your collections department that we just hired a collection agency to handle bad debt, you may have to sell your collections manager and his supervisors on using the agency. You also have to emphasize the fact that nobody is going to be laid off." Selling middle and supervisory managers on changes to overcome their resistance is often a necessary part of
strategy implementation.
Many customers have visited Sally's Diner for decades because of the diner's friendly service. Most customers feel that Sally's is the friendliest placed around. In a SWOT analysis, the friendly service at Sally's is an example of a company a) vision. b) strength. c) weakness. d) opportunity. e) threat.
strength. Explanation: Strengths are inside or internal matters. They are the skills and capabilities that give the organization special competencies in executing strategies in pursuit of its vision. Strengths could be work processes, organization, culture, staff, product quality, production capacity, image, financial resources and requirements, service levels, and other internal matters.
The skills and capabilities that give an organization special competencies and competitive advantages in executing strategies in pursuit of its mission are called organizational ______.
strengths
Many customers shop at Organic Foods because of the employees' extensive product knowledge. In a SWOT analysis, the employees' high levels of product knowledge are an example of the company's
strengths.
When a company is readily able to switch to another company in order to get the raw materials it needs to make products, Porter would say that the bargaining power of ______ goes down.
suppliers
When other companies cannot duplicate the value provided by a competitor, then the competitor has established a(n) _____ competitive advantage.
sustainable
Luxury Linens Inc. produces the highest thread-count sheets available anywhere and does so at a price that none of its competitors can duplicate. It can be said that Luxury Linens has a(n) _____.
sustainable competitive advantage
Resistance to organizational change is considered to be the interaction of three causes: employee characteristics, change agent characteristics, and
the change agent- employee relationship
Kenneth, the plant manager, was talking with another manager about Brendan, the lead engineer in the corporate R&D department. Kenneth remarked, "Brendan is so bright, and he is an expert in designing products. But like so many experts, he can't imagine what it's like to be as ignorant as the rest of us. I think at times, he cannot see things from an outsider's perspective." Brendan is suffering from... the curse of knowledge the tunnel vision effect an analytics perspective
the curse of knowledge
Which of the following is not a common reason why incentives may fail to motivate employees?
the incentive plan is based on clear and realistic goals
Kotter's steps for change are valuable for mangers who are attempting to bring it about because
they include specific recommendations for behaviors that managers need to exhibit.
Newly-implemented government regulations have reduced the availability of raw materials for Blair Woodworking Corp. This would be considered an external organizational ______ in a SWOT analysis.
threat
Sasha has run a small diner near the train station for the past ten years. Six months ago, a chain restaurant serving gourmet burgers and sandwiches opened up near him and he has had to re-think his menu. He added some specialty sandwiches and free fries with every burger in order to retain his customers. Which of Porter's five competitive forces has affected Sasha's business?
threat of new entrants
In terms of a SWOT analysis, organizational _______ are environmental factors that hinder an organization from achieving a competitive advantage.
threats
Tom and his family have developed a successful business selling a liquid spray fertilizer to farmers. The fertilizer consists of rich, organic, composted material. Recently NuBreed Seed, a national seed company, has been marketing a powdered chemical fertilizer to its customers; NuBreed's fertilizer is less expensive than Tom's product. NuBreed's efforts are an example of the ___ in Porter's model for industry analysis.
threats of substitute products and services
Joan runs a drop-in play center and until recently she was the only business in town where families could find reasonably-priced entertainment for their children. Joan learned that two fast-food restaurants with play areas are being built nearby so she is coming up with ways to convince her customers that her center is preferable. Which of Porter's five competitive forces is Joan specifically worried about?
threats of substitute products or services
cost-focus strategy
to keep the costs, and hence prices, of a product or service below those of competitors and to target a narrow market
focused differentiation strategy
to offer products or services that are of unique and superior value compared to those of competitors and to target a narrow market
differentiation strategy
to offer products or services that are of unique and superior value compared with those of competitors but to target a wide market
______ refers to educating technical and operational employees in how to better do their current jobs.
training
_____ is the intervention phase of the OD process.
treatment
The basic assumption that the picture of the present can be projected into the future is the basis of a
trend analysis.
Benefits account for about one-third of compensation costs.
true
Disruptive innovation is a process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors.
true
In sexual harassment, the harasser may be a(n) outsider, coworker, supervisor, or someone of the same sex.
true
Onboarding programs help employees to integrate and transition to new jobs by making them familiar with corporate policies, procedures, cultures, and politics by clarifying work-role expectations and responsibilities.
true
The systems model of change consists of three parts: inputs, target elements of change, and outputs.
true
To explain how to initiate, manage, and stabilize planned change, Kurt Lewin developed a model with three stages:
unfreeze, change, and refreeze
To explain how to initiate, manage, and stabilize planned change, Kurt Lewin developed a model with three stages:
unfreeze, change, and refreeze.
In the ______ stage of Kurt Lewin's change model, managers try to instill in employees the motivation to change, encouraging them to let go of behaviors that are resistant to innovation.
unfreezing
In the ______ stage of Lewin's change model, managers try to instill in employees the motivation to change, encouraging them to let go of behaviors that are resistant to innovation.
unfreezing
Wisconsin Dairy Farms wants to grow revenue and feels the best way to do this is by purchasing a business that is not in the dairy industry. After a lengthy analysis, it purchases Hydro Generator Corp. which supplies energy along the Pacific coast. What type of strategy is the company using?
unrelated diversification
When the two newly hired analysts compared notes, they found that their interviews had been quite different. Each was long and involved, but the content of the questions varied based on previous employment and education. They confirmed that the company that hired them used ______ interviews.
unstructured
Employers must consider an employment test's ______—that is, whether or not it measures what it purports to measure and is free of bias.
validity
Carlos is doing a VRIO analysis for a product his company is thinking about producing. The first question he asks is, "Does this new capability allow us to minimize the threat of the main competitor gaining more market share?" He decides the answer to this question is "yes." Which aspect of the VRIO analysis does this question answer?
value
In the large city where Cassandra lives, many people are asking for her restaurant to deliver food to their offices. Her restaurant has never delivered food before but since so many people have requested this service Cassandra decides it's a good idea to do it. In a VRIO analysis, Cassandra has determined the ____ of this capability.
value
The chain of command is also known as the
vertical hierarchy.
Given the following organizational questions: Is it appropriate for the organization and for the times? Does it set standards of excellence and reflect high ideals? Is it ambitious? A good _______ will answer these questions.
vision statement
Mutual-benefit organizations are
voluntary collectives whose purpose is to advance members' interests (examples: unions, trade associations).
An organization's vision statement needs to describe
what the company wants to become and its long-term direction and strategic intent.
An organization's vision statement states _____. For example, the Cleveland Clinic's vision statements says that it "strives to be the world's leader in patient experience, clinical outcomes, research, and education." a)the organization's purpose or reason for being b) its competition and external environment c) what the company wants to become, where it wants to go strategically d) the organization's purpose or reason for being e) the ethical and diversity standards of the organization
what the company wants to become, where it wants to go strategically Explanation: An organization's vision statement states what the organization wants to become, where it wants to go strategically.
When would a company use a VRIO analysis?
when deciding whether or not a new product might work in the marketplace
