Test #1 (Ch. 1, 2, 3,)

Which of the following is an example of innovation? Multiple Choice A company redecorates its stores to look up to date. A company charges fees for late returns of rentals. A company lowers the price of its traditional product. A company invents a new way to deliver digital content. A company reduces its staff to cut operating costs.

A company invents a new way to deliver digital content.

Which of the following best describes the dialectic method of managing group decision making? A group intentionally makes negative arguments to force investigation of the idea under consideration. A group holds a structured debate about two conflicting courses of action. Conflict generated within the group is minimized by enforcing group unity. Group conflict is maximized by including both factual counterarguments and personal attacks. The leader performs the role of peacekeeper when attacks are directed at individuals.

A group holds a structured debate about two conflicting courses of action.

As a manager you will be making decisions. Often these decisions will be without all the facts. under time constraints. without proper authority. an obvious choice. Both "without all the facts" and "under time constraints" are correct.

Both "without all the facts" and "under time constraints" are correct

Rabia proposed to her boss that their small firm build a new production plant to serve a large new global market. Her boss replied, "Rabia, several multinational firms, who are world-class in terms of global reach, influence, stability, and financial depth, will be going after that market. We would be a new entrant among large established competitors; the barriers to entry are just too high for us. We are small and financial resource-limited, so we would be challenged to meet the market's ________blank requirements." capital demographic buffering domain selection public relations

Capital

Kate, the manager of Halpern Tooling Company, wants to create a stronger, more positive culture at the company. How might Kate promote and encourage a stronger culture? Create a spreadsheet showing that employees are better paid than at other companies. Celebrate and reward those employees who exemplify the Halpern Tooling Company desired culture. Benchmark other companies and mimic their culture. Analyze the competitive environment and competitive intelligence of the company. Suggest that supervisors review the company handbook with their departments.

Celebrate and reward those employees who exemplify the Halpern Tooling Company desired culture.

Which of the following is an example of a potential substitute product? Chipotle Burrito Bowl for a Chick-fil-A meal ink cartridges for printers Evernote for a Samsung Galaxy Watch iTunes for iPods furniture for apartments

Chipotle Burrito Bowl for a Chick-fil-A meal

Jimena works for a small company that makes nut butters from ingredients like cashews and macadamia nuts, and jams from mixtures of tropical fruits. She reports to the CFO. It is her job to predict the costs of raw materials for the next five years. She uses various research sources, including the news, to learn who the competitors are and what they have been doing. In fact, she subscribes to an analyst e-newsletter that tells her about crop availability and weather conditions all around the globe. Every month she develops a spreadsheet for her boss indicating the likely costs of fruits and nuts given the type of weather conditions expected in each area of the world and thus the availability of particular crops. She is also involved in a team that is investigating how to cut production costs. They have recently met with Spicy Sides, a company that produces jars of condiments. Spicy Sides is considered the top company in the condiment industry, especially in its knowledge of how to pack food products in jars. Jimena's team is comparing their processes to those of Spicy Sides to see how they might improve. The information Jimena is using to compete in a better way is called mission statement. competitive intelligence. best-case scenario. organizational database. knowledge document.

Competitive Intelligence

Which of the following is true about using forecasts? Forecast accuracy decreases the farther into the future you are trying to predict. Forecasts become more accurate when predicting further into the future. Forecasts are useless when the future will look radically different from the past. The more complex the forecast, the more accurate are the predictions. The accuracy of forecasts does not vary from one application to another.

Forecast accuracy decreases the farther into the future you are trying to predict.

Which of the following statements about job skills is true? Communication skills are needed only by top managers. Technical skills are equally important at all levels of management. Interpersonal skills are equally important at all levels of management. Decision skills are more important for frontline managers than top managers. Conceptual skills are more important for frontline managers than top managers.

Interpersonal skills are equally important at all levels of management.

Which of the following statements is true of the sources of competitive advantage? The best companies choose one source of competitive advantage and perfect it. When companies improve one source of competitive advantage, others suffer. It is possible to improve quality and also enhance speed. Trade-offs do not occur among the six sources of competitive advantage. It is possible to improve more than one source, but they should be tackled one at a time.

It is possible to improve quality and also enhance speed.

Eco Lawn Care Corporation, a company that manufacturers environmentally friendly lawn care products, has been operating as a business for a year. The CEO, Markus, started his venture by deciding on the activities that would be involved and what his goals and objectives for the business were. He then started to recruit professional chemists and other personnel and grouped them according to their responsibilities. Every month Markus conducts a meeting where he brings attention to those who are doing good work and motivates everyone to achieve organizational goals. He also checks the daily productivity of each of the workers, monitoring them and providing training to those with low productivity. By recognizing good performers and motivating them toward achieving organizational goals, Markus performs the ________blankfunction of management. planning organizing leading controlling decision making

Leading

Raj manages a team of six professionals in a health care company. His subordinates have a wide variety of experiences and skill sets. In effectively ________blank his team, Raj regularly seeks to inspire his subordinates to draw upon their various backgrounds in ways never needed or dreamed of in the past. planning organizing leading controlling innovating

Leading

Done properly, sustainability encourages people to live in ways that can be maintained for the most profit. long term. individual. wealthy. present.

Long Term

Maria's mentor has taught her that managing culture within Frederick Construction, Incorporated, requires time and effort, but that the best managers understand its importance. A very important part of Frederick Construction's culture is emphasis on employee safety. Determine which action below would not be among the ways that Maria reinforces a desired safety culture. Maria publicly celebrates the zero injury rate for Dave's project. Maria assesses job candidates' background and attention to safety in the workplace. Maria schedules safety training for all new employees. Maria supports Teresa for firing a subcontractor who refused to abide by Frederick Construction's safety procedures. Maria allows Candace to miss her required annual safety training due to budget and time constraints.

Maria allows Candace to miss her required annual safety training due to budget and time constraints.

As a regional manager for Prism Paints, Fiona spends most of her time training new sales managers and making sure that information coming from headquarters reaches the company's branches. In this case, Fiona would best be described as a(n) ________blank manager. frontline middle-level operational top-level strategic

Middle - Level

Which of the following statements best describes the contemporary work environment? A)People can show up, do an OK job, and have a good career. B)More than ever, managers must do a lot more. Correct C)Managers must be numbers-oriented to succeed. D)Visionaries are considered disruptive in today's work climate. E)If a manager is not charismatic, they cannot advance.

More than ever managers must do a lot more

Debra and her top managers are choosing the goals for the company and deciding the appropriate actions needed to achieve those goals. Which management function are they performing? staffing forecasting organizing planning reporting

Planning

Alexis, the manager of Full Circle Fitness, has several decisions to make as the week begins. She always comes in early on Mondays to sift through the paperwork on her desk and decide what needs to be done for the week and in which order. The following are decisions facing Alexis this week: Giving two personal trainers raises based on the company's policy for wage increases Determining whether to open a facility in a new market to target more customers Interviewing applicants for two open part-time fitness instructor positions and hiring them Providing input to the owner on a possible upgrade to the elliptical machines currently in use If, in decision 3 in the list, Alexis hires the first candidate she sees who meets the minimum requirements, without going through every candidate's file to see if anyone else is better, she is Multiple Choice maximizing. satisficing. Correct optimizing. framing. social loafing.

Satisficing

________blank is managing the entire network of facilities and people that obtain raw materials from outside the organization, transform them into products, and distribute them to customers. Barriers to entry Benchmarking Supply chain management Empowerment Open systems

Supply chain management

A large part of Jamal's job is to help his company use more recycled products, reduce pollution, and switch to renewable sources of energy. Which of the following does Jamal's job focus on? sustainability total quality innovation collaboration cost competitiveness

Sustainability

Karl's office has always used Bentley computers. His technical people have suggested that he switch all his employees over to Best computers. Karl is reluctant because it will mean not only replacing all the computers but also buying all new software and taking the time to train everyone. Karl is worried about barriers to entry. benchmarking. environmental uncertainty. switching costs. strategic maneuvering.

Switching costs

Which of the following is true of globalization? A)Talent comes from only industrialized countries. B)Talent comes from only knowledge-based countries. C)Talent comes from only the local workforce. D)Talent can come from anywhere. Correct E)Talent comes from only those countries who participate in the global economy.

Talent can come from anywhere.

For her job, Charmaine is expected to look ahead at the company's future and devise strategies for the company's long-term success and growth. Judging from this description, Charmaine is a ________blank manager.

Top-Level

Parker Brothers is a high-end furniture manufacturer located in the Midwest. Mr. Herbert "Bud" Parker started the firm as a young man in the 1960s. The firm has grown, but with growth, it has never forgotten the vision of Mr. Parker: to be creative in all that the firm does while rewarding employees who show innovation and entrepreneurial leadership. Each year the Budding Genius Award is given to the employee who comes up with the best design or marketing idea. New employees are told of the organization's history of product innovation and are taken on a tour of the "Wall of Parker Legends," where pictures of outstanding employees are hung with descriptions of their accomplishments. Managers at the firm encourage their team members to take risks in proposing new ideas. The company prides itself on its product leadership. Which of the following is an example of passing along organization culture through the stories people tell? Budding Genius award the vision to be creative in all the firm does Wall of Parker Legends the encouragement of risks rewards for innovation and entrepreneurial leadership

Wall of Parker Legends

END OF CH. 1

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END OF CH. 3

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END OF CH.2

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The Internet has allowed companies to set up websites with very little expense. The Internet is an example of removing a barrier to entry. environmental uncertainty. unfair competition. high switching costs. strategic maneuvering.

a barrier to entry

Managers who optimize their decisions will attempt to choose the first, minimally acceptable alternative. select the decision that is fastest to make. find the least expensive option available in the market. decide on whatever produces the least challenge or conflict. achieve the best possible balance among several goals.

achieve the best possible balance among several goals.

Mario and Jayden are both assistant managers at Lakeside Salon and often engage in ________blank. They constantly disagree with each other on an emotional level. Their arguments are personal, angry, and bitter. unbounded irrationality affective conflict cognitive conflict individual dominance group conflict

affective conflict

The most important rule of a brainstorming session is that it must be free of criticism. be among top management. be done as fast as possible. have 15 people or more. involve industry experts.

be free of criticism.

Jimena works for a small company that makes nut butters from ingredients like cashews and macadamia nuts, and jams from mixtures of tropical fruits. She reports to the CFO. It is her job to predict the costs of raw materials for the next five years. She uses various research sources, including the news, to learn who the competitors are and what they have been doing. In fact, she subscribes to an analyst e-newsletter that tells her about crop availability and weather conditions all around the globe. Every month she develops a spreadsheet for her boss indicating the likely costs of fruits and nuts given the type of weather conditions expected in each area of the world and thus the availability of particular crops. She is also involved in a team that is investigating how to cut production costs. They have recently met with Spicy Sides, a company that produces jars of condiments. Spicy Sides is considered the top company in the condiment industry, especially in its knowledge of how to pack food products in jars. Jimena's team is comparing their processes to those of Spicy Sides to see how they might improve. Which of the following are Jimena and her team using when they learn from Spicy Sides about its packing process? forecasting strategic maneuvering domain selection benchmarking scenario development

benchmarking

Mila, who works as a manager for a manufacturing company, investigates what computer programs her company's five biggest rivals use for placing and tracking customer orders. She then compares the features of those programs with the program her company uses. What process has Mila used? scenario planning forecasting benchmarking environmental scanning strategic maneuvering

benchmarking

Which of the following types of companies are affected by globalization? primarily large companies primarily small companies both large and small companies only companies with overseas factories only companies with immigrant workers

both large and small companies

Which of the following is a barrier to entry? less-established distribution channels capital requirements the existence of a popular complement a low-cost distribution method an inexpensive production process

capital requirements

Eve and Bob come from different backgrounds that have given them radically different perspectives. Because of this, they have adopted legitimate differences of opinions and disagree sharply over the proposed solution to the problem. This is an example of goal displacement. affective conflict. cognitive conflict. bounded rationality. framing effect.

cognitive conflict.

Marla's Basement is a small retail store that specializes in antique figurines and decorative knickknacks. In analyzing the environment, Marla has uncovered the following interesting findings: Marla has recently purchased more inventory than in the past. The people from whom she buys are selling off more knickknacks because their children are not interested in this type of decorative items and they would prefer to liquidate unnecessary household items to help them with their daily expenses. Marla discovered that her business is in a historical preservation district. As she considers remodeling the shop, she realized that she must pay attention to the guidelines set forth in the governing laws. Marla's buyer-customer base seems to be changing. The tastes of the younger generation near her shop are shifting to modern decor, so the customer base to which she sells is shrinking. Marla has been told that she should consider selling her inventory via the Internet, but she does not own (or understand how to use) a computer. In reading a survey of regional business, Marla discovered that there are no other antique knickknack stores within 200 miles. Findings about changing customer preferences and others who sell antique knickknacks are associated with the competitive environment as described by Porter. macroenvironmental economic trends. macroenvironmental political trends. amount of rivalry in Marla's internal environment. barriers to entry in Marla's competitive environment.

competitive environment as described by Porter.

No one at Iconoclast Interiors liked the company's new website, which was a serious problem because the firm marketed itself as an expert in design. The president, Moriah, assembled the team, solicited feedback, and found help in making improvements. The ability to identify this problem and resolve it is an effective use of ________blank skills. conceptual and decision informational technical intellectual and language negotiation

conceptual and decision

"As production manager, I monitor work crew performance to ensure they are meeting our standards." The production manager is describing the management function of planning. organizing. leading. controlling. decision making.

controlling.

The three requirements for effective group decision making are an appropriate leadership style, the constructive use of disagreement and conflict, and the enhancement of Conflict groupthink. satisficing. creativity. framing.

creativity.

Sonoko takes a job as the human resources manager at E-volve, a consultancy focused on helping businesses implement green, sustainable policies and reduce their carbon footprints. The company offers many benefits and has an innovative company culture. However, Sonoko soon discovers that E-volve is rife with office politics, with employees trying to undermine each other and curry favor with the senior management team. What is Sonoko's best solution for addressing this problem? accepting that office politics are part of life and trying to work within this atmosphere as best she can establishing team goals in order to make the decision-making process collaborative rather than competitive identifying the people most responsible for the situation and either reprimanding them or firing them reassigning people to different projects so that those who do not get along are forced to work together toward a goal meeting with each member of her staff individually to discuss their issues, then deciding how best to handle it

establishing team goals in order to make the decision-making process collaborative rather than competitive

NBIC (National Bicycle Industrial Company) of Japan specializes in mass customization to cater to the changing demands of its customers. Customers can choose the frame and other parts of the bicycle and it is made according to their order. This is one example of how NBIC uses cooptation. flexible processes. smoothing techniques. benchmarking. diversification.

flexible processes.

Jimena works for a small company that makes nut butters from ingredients like cashews and macadamia nuts, and jams from mixtures of tropical fruits. She reports to the CFO. It is her job to predict the costs of raw materials for the next five years. She uses various research sources, including the news, to learn who the competitors are and what they have been doing. In fact, she subscribes to an analyst e-newsletter that tells her about crop availability and weather conditions all around the globe. Every month she develops a spreadsheet for her boss indicating the likely costs of fruits and nuts given the type of weather conditions expected in each area of the world and thus the availability of particular crops. She is also involved in a team that is investigating how to cut production costs. They have recently met with Spicy Sides, a company that produces jars of condiments. Spicy Sides is considered the top company in the condiment industry, especially in its knowledge of how to pack food products in jars. Jimena's team is comparing their processes to those of Spicy Sides to see how they might improve. When predicting the costs for her company, Jimena is engaging in forecasting. competitive intelligence. environmental scanning. benchmarking. scenario development.

forecasting.

Gina owns a fashion-design store and knows the economy greatly affects her business. Experts are predicting four potential economic outcomes over the next five years. Therefore, Gina develops alternative courses of action based on these predictions. In this scenario, she is implementing a decision. generating contingency plans. making a programmed decision. engaging in satisficing. following the garbage can model.

generating contingency plans.

Veronika has several decisions to make as the manager of a fitness center. Which of the following decisions would be considered a programmed decision? giving two personal trainers raises based on the company's policy for wage increases determining whether to open a facility in a new market to target more customers brainstorming session with the owners about a new marketing campaign providing input to the owner on a possible upgrade to the elliptical machines currently in use creating new exercise routine recommendations to evaluate

giving two personal trainers raises based on the company's policy for wage increases

Robby believed his team was engaging in ________blank, so he intentionally introduced conflict into the planning meeting. His goal was to break up the cordial discussion and stimulate intellectual discussion of different perspectives on the issues the team was considering. goal displacement satisficing individual domination devil's advocacy groupthink

groupthink

Negative feedback received during the final evaluation of the decision either means that ________blank or the decision was a bad one. the problem cannot be solved more financing is required to implement the changes the manager is not capable of rational decisions implementation will require more time not enough resources were allocated to the problem

implementation will require more time

Once a solution to a problem is chosen, the next phase in the decision-making process involves evaluating alternatives. evaluating consequences. generating information. implementing the decision. generating alternative solutions.

implementing the decision.

Imelda was disappointed with her group's discussion about the upcoming marketing campaign. Ivan, a member with a forceful personality, had good ideas so consistently that the other group members became reluctant to contribute their ideas. This group experienced vigilance by Imelda. individual dominance by Ivan. satisficing by the entire group. intellectual stimulation of the entire group. goal displacement by Ivan.

individual dominance by Ivan.

Using bribery as a business tactic may result in fines for U.S. firms. Which of the following types of environmental forces at work does this reflect? competitive economic legal technological demographic

legal

In goal displacement, a decision-making group loses sight of its original goal and a new, less important goal emerges. becomes so eager to avoid conflict that it adopts a goal or decision too quickly. generates as many goals as it can but does not allow criticism of people or ideas. disagrees on goals, or the members compete with one another for resources. is unsure about goals and disagrees about what to do.

loses sight of its original goal and a new, less important goal emerges.

Knowledge management is the set of practices designed to develop organization members' expertise, skills, wisdom, and relationships. members' loyalty. members' salaries. inventories of both resources and manufactured goods. equipment, such as vehicles, tools, and machines.

members' expertise, skills, wisdom, and relationships

Little Learners is a company that designs and manufactures fun and educational toys. The company makes it a point to stress to its employees that innovation is its core strength. The employees even get an hour a day to brainstorm and come up with out-of-the-box ideas. This highlights the ________blank of the company. cooperative strategies external environment organization culture competitive pacification domain selection

organization culture

The CEO said, "Our focus this year will be on assembling the best team we can find to achieve our goals." The CEO is describing the management function of organizing. planning. leading. controlling. decision making.

organizing

The managers at EarthGreen Technology are currently developing strategies for the company's new products and setting objectives for its business units. These managers are engaging in the management function of forecasting. planning. staffing. organizing. outsourcing.

planning.

Cost Competiveness involves

pricing products at a level attractive to consumers.

Illusion of control, discounting the future, and framing effects are all examples of ________blank in decision making. confirmation psychological biases goal displacement vigilance time pressures

psychological biases

Venus was a low-cost airline that operated in the 1990s. Industry analysts state that although Venus was able to provide all the services the customers wanted, it was forced out of business because of aggressive pricing from larger airline firms which made it impossible for Venus to make a profit. Which of the following aspects of the competitive environment does this scenario illustrate? customers rivals regulators the economy social trends

rivals

Leonardo has just been promoted to manage a staff of 10 people and wants to make a good impression on top management. He recently held his first staff meeting to solve a fairly large problem with the project, but it did not go well. All 10 staff members were there. His goal was to get buy-in from the group, but instead little progress was made. Since the first meeting did not go well, Leonardo read several management books on working with groups and thought perhaps a longer meeting would allow time to explore several points of view. He chose a Friday afternoon so everyone could go home afterward and not have to rush off to other work appointments. To his surprise, the first idea he suggested was accepted by the group, and the meeting was over in no time. The group was most likely engaging in ________blank so they could end the meeting and go home early. maximizing satisficing goal displacement vigilance intellectual stimulation

satisficing

Kai needs to hire a new landscaping service to take care of the small garden outside his dental office. He knows what tasks he wants done and how much he is willing to pay per week, and he hires the first service that agrees to his terms. Such an action is referred to as optimizing. satisficing. maximizing. minimizing. framing.

satisficing.

Felipe is the manager of Pawlicious, a bakery that specializes in cookies for cats and dogs. As the manager of the bakery, he has many responsibilities. One day he holds a meeting where he informs the employees that the company must freeze wages for the next year. An agitated employee threatens to "make the company regret this," so Felipe asks the employee to leave immediately and makes sure that security personnel escort the employee off the premises. After the meeting, Felipe goes to meet one of the bakery's distributors to obtain information about possible new markets for the company's products. Then he represents the company at a dinner for the retiring bank officer who handled Pawlicious's account for many years. These are some of the roles that Felipe performs as a manager. Which of the following roles was Felipe performing when he notified the employees of the upcoming wage freeze? negotiator liaison Incorrect disseminator spokesperson entrepreneur

spokesperson

Paul and his wife are investigating the possibility of starting a new restaurant in Beaufort, a small town in the South Carolina low country. It has been Paul's lifelong dream. Paul has won a lottery and is trying to decide if this is what he wants to do with the prize money. He decides to do an analysis of the competitive environment. After his analysis, he discovers several important issues. First, it will cost most of Paul's lottery winnings to finance a restaurant in Beaufort. Second, it will be difficult to attract new customers because they have so many eating choices available to them in Beaufort and the surrounding towns. Finally, the competition in the restaurant industry is considered fierce by industry analysts and this is frightening to someone, like Paul, who has never worked in that industry. Based on Paul's analysis of the competitive environment, it can be inferred that the customers will face switching costs. there are no competitors. there are many substitutes. there are no barriers to entry. the threat of new entrants is high.

there are many substitutes

Managers at Avalon Computing work in a fast-paced business environment. To make higher-quality decisions in this environment, Avalon's managers do not use traditional tactics, e.g., relying on old data, long-range planning, and futuristic forecasts. Instead, they focus on real-time information, by constantly monitoring daily operating measures such as work in process rather than checking periodically the traditional accounting-based indicators such as profitability. In this manner, Avalon's managers strive to overcome the barrier to effective decision making known as illusion of control. framing effects. discounting the future. time pressures. social realities.

time pressures.