Understanding Business Chapter 1 - 10

A detailed, short-term plan about what is to be done, who is to do it, and how is a(n) ______ plan.

tactical

Setting shorter-term, specific plans such as annual budgets and deciding on other activities necessary to meet strategic objectives are tasks associated with ______ planning.

tactical

The short-term statements about what is to be done, who will do it, and when are set by managers at lower levels of the organization are known as _______________ plans.

tactical

SWOT analysis

A planning tool used to analyze an organizations strengths, weaknesses, opportunities, and threats.

Tall Organization Structure

An organizational structure in which the pyramidal organization chart would be quite tall because of the various levels of management.

Mission Statement

An outline of the fundamental purpose of the organization. should address the organization's self-concept, its philosophy, long-term survival needs, customer needs, social responsibility, and the nature of the product or service.

Insider Trading

An unethical activity in which insiders use private company information to further their own fortunes or those of their families and friends.

Trade Deficit

An unfavorable balance of trade; occurs when the value of a country's imports exceeds that of its exports.

Acqusition

One company's purchase of the property and obligations of another company

Exchange Rate

The value of one nation's currency relative to the currencies of other countries.

Corporate social responsibility is based on a ?

concern for the welfare of society

Free-flowing communication and information throughout an organization are the key to successful:

empowerment

External customers

end users dealers

Top management sets the vision for the organization and may work with others to establish a mission statement that outlines its

self-concept product or service offering

technical skills

skills that involve the ability to perform tasks in a specific discipline or department perform tasks such as filing tax forms or assembling a keyboard

Leaders

Embrace and manage change Establishes corporate values and ethics

Why is adapting to change one of the hardest challenges facing any manager?

Employees and managers are sometimes resistant to change.

managers

Employees who get things done using an organization's financial resources, information, equipment

ISO 9000

The common name given to quality management and assurance standards

Herzberg studied job-related factors as they relate to ____________ .

motivation

Herzberg studied the relationship between:

motivation and job-related factors

Job enrichment focuses on enhancing the elements most closely related to Herzberg's ______ or higher level needs as defined in his theory.

motivators

Time-to-market decisions involve:

moving products quickly to customers at the lowest cost

An assumption about people made by a Theory Y manager is that people:

naturally like to work

Maslow's theory states that once needs are met they:

no longer motivate

When a firm assigns one or more of its functions to an outside organization, it is:

outsourcing

The workers in Herzberg's studies found which three factors of the job environment were not motivators for them?

pay friendly supervisors job security

Compliance-based ethics codes focus on:

penalizing wrong-doers increasing control

hybrid or combinations organization structures

sales department has geographic departments, production is organized by function, and marketing is organized by customer groups.

Conceptual skills are used by managers to

see the interrelationships among an organization's departments picture the organization as a whole delegate work fairly among workers

A mission statement should address an organization's

self-concept customer needs

Corporate policy

The dimension of social responsibility that refers to the position a firm takes on social and political issues

The rapidly evolving business environment requires the management of _____________________________in the organization to respond to it.

change

An organization that sets its vision hopes to achieve what two objectives?

giving the organization a sense of purpose giving the organization a set of values

Hawthorne Experiments, (first set of )

researchers thought they had failed due to the unexpected results productivity continued to increase regardless of changing conditions researchers realized there had to be another factor affecting productivity

Studies have shown that what most influences a company's effectiveness and financial performance is:

responsible human resources management

A business plan is a detailed written statement that describes:

the target market the resources and qualifications of its owner(s)

hawthorne effect

the tendency for people to behave differently when they know the are being studied

Cross-Functional Self-Managed Teams

Groups of employees from different departments who work together on a long-term basis.

Small Business Adminstration (SBA)

US government agency that advises and assists small businesses by providing management training and financial advice and loans.

Corporate Responsibility

The dimension of social responsibility that includes everything from hiring minority workers to making safe products

Unlimited liabilty

The responsibility of business owners for all of the debts of the business

Recession

Two or more consecutive quarters of decline in the GDP severe recession with deflation

The tasks managers perform to organize a firm to achieve its goals include:

allocating resources establishing procedures assigning tasks

Managing _________________________________ has become a critical managerial function because the increasing rate of change affects all organizations.

change

The key to successful employee empowerment is free-flowing ________________and information throughout the organization.

communication

The dimension of social responsibility known as ____________________social responsibility includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, and providing a safe work environment.

corporate

Individuals who possess such attributes as being self-directed, action-oriented, and tolerant of uncertainty can make excellent ______________________ like Bill Gates and Steve Jobs.

entrepreneurs

Many _______________ use their time, money, and energy to turn their passions into sustainable businesses. They are comfortable being their own bosses and are not afraid of failure.

entrepreneurs

____________________behavior can add to the bottom line while _________________________behavior can ruin companies financially

ethical unehtical

People learn their organizational ___________________ from observing the standards, values, and behaviors of leaders and other employees.

ethics

An important factor in enforcing ethics codes is selecting a(n)

ethics officer

Leaders in traditional organizations who direct employees are likely to:

explain routines provide performance feedback give specific assignments

best way to avoid natural budget defaults is to have exports - up & imports - down

false

Remaining ______ is the key to an organization's success in changing times.

flexible

LEAST AMOUNT OF COMMITMENT

franchising exporting licensing

What term defines the broad, long-term accomplishments an organization wishes to attain?

goals

hygiene factors

in Herzberg's theory of motivating factors, job factor that can cause dissatisfaction if missing but that do not necessarily motivate employees if increased

motivators

in Herzberg's theory of motivating factors, job factors that cause employees to be productive and that given them satisfaction

Management by objectives means that managers:

include employees in setting goals so the employees are self motivated

The second set of Hawthorne Experiments continued to result in _______________________ productivity regardless of changing physical conditions.

increased

Operations management is a specialized area of management that includes

inventory management production scheduling

Those who oppose corporate social responsibility believe that

it is using investors' money in ways they did not intend

The goal of operations management is to

keep operations running efficiently create a good experience for the customer

knowledge managers

keeping information in a readily accessible place making information known to everyone in the organization finding the right information

Good ________________motivate workers and create an environment for them to motivate themselves.

leaders

in an organization,______ establish a vision and corporate values, while ______ carry out that vision.

leaders managers

Since entrepreneurs can't compete with larger firms' pay and benefits, what are three ways they can motivate employees?

maintain good employee relations provide more challenging opportunities to learn be respectful of employees' opinions

global trade

measured by balance of trade and balance of payment

scientific management include:

method time rules of work

Entrepreneurs start a business with the desire to grow the business and generate wealth while _________________start a business that will stay small, allowing them to have a balanced lifestyle and the ability to do the kind of work they want to do.

micropreneurs

Which level of management includes general managers, division managers, and branch and plant managers who are responsible for tactical planning and controlling?

middle management

A(n) _________ is a specific, short-term statement of how to achieve the organization's long-term ___________.

objective; goals

Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to:

opportunities

The production process should be a sequence of steps starting with inputs, followed by production control, and ending with:

outputs finished products

A local furniture company launched a website to boost national sales. However, it could not ship the orders efficiently so it started using FedEx and UPS. This is an example of________________ .

outsourcing

Advantages of a positive corporate culture include:

people who enjoy working together to be productive trust between employees emphasizing service to others, especially customers

Degrees of Competition

perfect competition, monopolistic competition, oligopoly, monopoly

intrinsic reward

personal satisfaction you feel when you perform well and complete goals

Using information from the internet or other sources without giving credit to the author is:

plagiarism

A SWOT Analysis is a(n) ______ tool used to analyze an organization's strengths, weaknesses, opportunities, and threats.

planning

Which management function is considered to be key because accomplishing the other functions depends heavily on it?

planning

When implementing management by objectives it is a manager's responsibility to involve everyone, commit employees to the goals, monitor progress, and ______________________ accomplishments.

reward

Tactical planning deals with:

setting annual budgets and deciding on activities to meet strategic objectives

___________________________businesses are businesses that are independently owned and operated, are not dominant in their field of operation, and meet certain standards of size in terms of employees or annual receipts.

small

U.S. economist Milton Friedman believed that the only social responsibility of the corporation was to its stockholders. He also believed anything other than that would be considered:

socialism

From the list below, identify the five groups considered to be a type of watchdog group.

socially conscious investors customers socially conscious research organizations environmentalists union officials

Who sets the standards of right and wrong as defined by ethics?

society

The purpose of the Malcolm Baldrige National Quality Award is that it sets a(n) ___ for overall company quality using several key areas for measurement.

standard

Some common causes of small business failure include:

starting with too little capital underpricing or overpricing goods or services no experience in that business or industry

Process manufacturing

that part of the production process that physically or chemically changes materials

Entrepreneurial attributes include:

tolerant of uncertainty highly energetic action-oriented

The owner of a sole proprietorship is responsible for developing any fringe benefits they have.

true

The principles of management are similar for a small neighborhood business and a giant global firm

true

A productive corporate culture is one where there is mutual

trust

seasonal unemployment

unemployment linked to seasonal work demand for labor varies over the year

In the United States, many employees report that they are unethical at work because they:

violate safety standards goof off

During strategic planning, top managers decide:

what products or services to sell which customers to serve geographic areas in which to compete

In order to motivate others and create the environment needed to motivate themselves, a leader must

- communicate a vision - embrace change - establish corporate values

CAM is the computer aided process used to design products.

False

Frederick Gilbreth was the "Father of Scientific Management".

False

Knowledge Management

Finding the right information, keeping that information in a readily accessible place, and making the information known to everyone in the firm

hybrid (departmentalization techniques)

Firms may use a combination of departmentalization techniques to create a ____ form.

Business cycle

Fluctuations in economic activity, such as employment and production periodic rise and falls that occur in economies over time

empowerment

Giving frontline workers the responsibility, and freedom to respond quickly to customer requests.

______ are long-term accomplishments an organization wishes to attain. ______ are short-term statements detailing how to achieve the organization's goals.

Goals; Objectives

Fiscal Policy

Government policy that attempts to manage the economy by controlling taxing and spending.

What are two characteristics of lean manufacturing?

It uses less resources. It takes less time.

Theory Y manager about people.

People like to work. People seek responsibility for achieving goals if rewarded for doing so

Market

People with unsatisfied wants and needs who have both the resources and the willingness to buy.

Invisible Hand

Phrase coined by Adam Smith to refer to the self-regulating nature of a free marketplace.

Exporting

Selling products to another country.

Technical Skills

Skills that involve the ability to perform tasks in a specific discipline or department.

Which of the following are reasons a business should be managed ethically?

-To maintain a good reputation -To attract customers -To avoid lawsuits

MBO, a manager must

-develop commitment to goals -formulate goals cooperatively with employees

Place the generational cohorts in the correct order from oldest to youngest. NOTE: the generation with the oldest age members should be the top item in your list.

1. Baby Boomer 2. Generation X 3. Millenials 4.Generation Z 5.Generation Alpha

What are the three questions you ask yourself when faced with an ethical dilemia

1. Is my proposed action legal 2. Is it Balanced? 3. How will it make me feel about myself?

Materials requirement planning (MRP)

A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place

Inflation

A continuous rise in the price of goods and services

Importing

Buying products from another country.

The Principles of Scientific Management" was written by

Frederick Taylor

customers

Sometimes a company is willing to spend millions to move their facility from one location to another in order to increase buyer traffic, drawing more potential __________________________ .

Enterprise Zones

Specific geographic areas to which governments try to attract private business investment by offering lower taxes and other support.

Telecommuting

Working from home via computer and modem

general partner

an owner (partner) who has unlimited liability and is active in managing the firm

The ______ function of management measures performance relative to the planned objectives and standards, rewards people for work well done, and takes corrective action when needed.

control

Line managers are those who have the authority to:

issue orders adjust to changing conditions enforce discipline

An important reason for a company to maintain its ethical reputation is

it attracts and retains customers

expectancy theory

managers attempting to improve employee performance would be well advised to set attainable performance goals. Victor Vroom's theory that the amount of effort employees exert on a specific task depends on their expectations of the outcome theory states that an individual will not put forth effort without first evaluating their ability to perform the task and the value

Which sector has lost more jobs due to technological changes?

manufacturing

middle management

plant managers division managers general managers no supervisors

Taylor's scientific management became the dominant strategy for improving _______________________ in the early Twentieth century.

productivity

Many companies believe they have a role in promoting ______________________ _____________________ , so they donate to local food banks, promote literacy, and provide computer lessons for inner city children.

social justice

A communication tool many companies use to inform diverse groups of their social responsibility efforts at little cost is

social media

Learning from others is a useful way to avoid pitfalls when starting a small business. Some things you may be told would include:

that finding and retaining good workers is hard starting with enough money to hire a good lawyer and accountant

Central American Free Trade Agreement CAFTA

trade agreement designed to reduce tariff barriers between Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, the Dominican Republic, and the United States

Human relations skills are those associated with leadership such as

training and development delegating coaching

Select the characteristics of an entrepreneurial team that will be developing and marketing a new product.

1. each from different areas of business 2. a group of experienced people 3. members have complementary skills and are creative

control process steps

1. establish standards 2. measure performance 3. compare performance to standards 4. communicating results and deviations to employees and management 5. take corrective action, if necessary

Gross Output

A measure of total sales volume at all stages of production

Entrepreneurship

Accepting the risk of starting and running a business.

North American Free Trade Agreement (NAFTA)

Agreement that created a free-trade area among the United States, Canada, and Mexico in the 1990's

Flexible manufacturing

Designing machines to do multiple tasks so that they can produce a variety of products

integrity based ethics codes

Ethical standards that define the organizations guiding values, create an environment that supports ethically sound behavior, and stress a shared accountability among employees

Choose the correct order of steps in the production process.

Inputs, production control, outputs

Select reasons why people become entrepreneurs.

Profit Independence Opportunity

Which of the following tasks are associated with the planning function of management?

Setting organizational goals

Dumping

Selling products in a foreign country at lower prices than those charged in the producing country.

Managers

Strive to produce order and stability Carries out the vision of the company

Which management theory uses time-motion studies to find the one best method for workers to perform each task and then teaches them that method?

Taylor's Scientific Management

The definition of _________________ ________________states; skills that involve the ability to perform tasks in a specific discipline or department.

Technical Skills

Frederick Taylor wrote:

The Principles of Scientific Management

Assembly process

The part of production process that puts together components

What feature of self-managed teams allows them to improve productivity?

They have the freedom to make decisions.

More personal ______________________ service and the ability to respond quickly is an advantage for small businesses.

customer

When implementing a new ethics program, businesses must also communicate the changes to outside parties such as:

customers

Organizations reorganize to empower frontline workers to:

demonstrate appreciation and trust to frontline workers let them know they are valuable assets to the organization serve customers more efficiently and effectively

The most forceful way to communicate the importance of an ethics code is to:

enforce it

Examples of a problem solved by operations management planning as it relates to manufacturing include:

facility location inventory control

Frederick Taylor was nicknamed the ____________ of scientific management:

father

Leaving __________________ a means owners can leave an ongoing business for future generations.

legacy

Economic boom

rapid economic growth

equity theory

the idea that employees try to maintain equity between inputs and outputs compared to others in similar positions states that employees look for fairness in the workplace as compared to others before deciding to perform.

conglomerate merger

the joining of firms in completely unrelated industries

maslow's hierarchy of needs

theory of motivation based on unmet human needs -basic physiological - basic survival needs (food, water etc safety - need to feel secure at work/home social - need to feel love, accepted and part of the group esteem needs - need for recognition, acknowledgment from other, as well as self-respect, sense of importance self-actualization needs - need to develop ones fullest protential According to Maslow, people will try to satisfy lower-order needs before they turn their attention to higher-order needs.

reinforcement theory

theory that positive and negative reignforcers motivate a person to behave in certain ways

Studies of the tasks performed in a job and the ________________ needed for each is time-motion study.

time

frictional unemployment

unemployment that occurs when people take time to find a job workers quit work

An employee who reported her boss to the SEC for insider trading would be considered a(n)_______________ protected by law.

whistleblower

Forces Affecting Trading in Global Markets

Sociocultural Forces, Economic/Financial Forces, Legal/Regulatory Forces (Political), Physical/Environmental Forces (Infrastructure)

According to recent U.S. Census Bureau research volunteerism is at an all time high, but

3 out of 4 citizens do not give any time to the communities in which they live

ISO 14000

A collection of the best practices for managing an organization's impact on the environment

State Capitalism

A combination of freer markets and some government control

Planning Setting organizational goals, developing strategies to reach these goals, determining resources needed, and setting precise standards are all tasks associated with the _________________ function of management.

A management function that includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives. is a key management function because the success of the other functions depends on it.

Organizing

A management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives

Oligopoly

A market structure in which a few large firms dominate a market

Intermittent process

A production process in which the production run is short and the machines are changed frequently to make different products A short production run with frequent adjustments to machines is considered

Small Business Investment Company (SBIC) Program

A program through which private investment companies licensed by the Small Business Administration lend money to small businesses.

Six sigma quality

A quality measure that allows only 3.4 defects per million opportunities

Capitalism

An economic system based on private ownership of capital such as land, factories, railroads, and stores based on free markets factors of production and distribution privately owned/operated for profit

database

An electronic storage file where information is kept; one use of databases is to store vast amounts of information about consumers.

Producer Price Index (PPI)

An index that measures prices at the wholesale level.

Matrix Organization

An organization in which specialists from different parts of the organization are brought together to work on specific projects but still remain part of a line-and-staff structure. In a _________________ project managers are in charge of teams made up of members from several departments.

Nonprofit Organization

An organization whose goals do not include making a personal profit for its owners or organizers.

business

Any activity that seeks to provide goods and services to others while operating at a profit.

Corporate social responsibility

Businesses concern for the welfare of society. Commitment to integrity, fairness, and respect

The is the job title of the person responsible for obtaining funds and planning budgets in an organization.

CFO

Incubators

Centers that offer new businesses low-cost offices with basic business services According to a recent study, offering low-cost offices with basic services to new businesses in the early stages of development results in an 87% success rate of incubator graduates.

What three positions are considered as top management in an organization?

Chief Operating Officer Chief Financial Officer Chief Executive Officer

Decision Making

Choosing among two or more alternatives

Brainstorming

Coming up with as many solutions to a problem as possible in a short period of time with no censoring of idea's

Benchmarking

Comparing an organization's practices, processes, and products against the world's best.

Monopoly

Complete control of a product or business by one person or group

Intrepreneurs

Creative people who work as entrepreneurs within corporations.

Which of the following are examples of outside stakeholders that must be told about a company's ethics program?

Distributors Suppliers Customers

Which of the following theories of motivation is the basis for Management by Objectives?

Drucker's Goal-setting theory

In most high-tech industries, the best way to respond quickly to rapid technological changes is to keep most authority and responsibility in the hands of a few key managers who provide precise, detailed directions to the workers.

False

True or False: As long as managers are honest and open with workers, their decisions do not have to be fair.

False

1. Computer-aided design and computer-aided manufacturing 2. Flexible manufacturing 3. Lean manufacturing 4. Mass customization

Four major developments for companies to be more competitive

Type A

Friedman and Rosenman's term for competitive, hard-driving, impatient, verbally aggressive, and anger-prone people In Silicon Valley, California, it is not unusual for highly skilled employees to stay at one company for about three years. These specialized employees have a mindset for rapid promotion. They believe that they have only themselves to blame if these high goals are not met. William Ouchi would categorize the management style that these employees operate under as TYPE A

Entrepreneurial Team

Group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make and market a new product.

cross-functional self-managed teams

Groups of employees from different departments who work together on a long-term basis and are empowered to make decisions without management approval are used in organizations to break down barriers between functional departments

Elton Mayo

Hawthorne Studies

Outsourcing

Hiring workers in other countries to do a set of jobs US workers are in competition from other countries

Taylor's scientific management (goals)

Increase worker productivity Benefit the worker Benefit the firm

Internal Customers

Individuals and units within the firm that receive services from other individuals or units

Venture Capitalists

Individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.

Whistleblowers

Insiders who report illegal or unethical behavior

Socially conscious investors

Insist that a company extend its own high standards to its suppliers

services

Intangible products (i.e., products that can't be held in your hand) such as education, health care, insurance, recreation, and travel and tourism.

__________________ ethics codes emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers.

Integrity-based

Which set of ethics codes defines an organization's guiding values, creates an environment that supports ethically sound behavior, and stresses shared accountability?

Integrity-based ethics codes

Sovereign wealth funds (SWFs)

Investment funds controlled by governments hold large stakes in foreign companies.

Free Rein Leadership

Leadership style that involves managers setting objectives and employees being able to do whatever it takes to accomplish those objectives

When a sole proprietor leaves an ongoing business to future generations, it is said that the owner is leaving a ____________________________.

Legacy

Strategies for Reaching Global Markets

Licensing, Exporting, Franchising, Contract manufacturing, Joint venture, Strategic alliances, Foreign direct investment.

PMI (Pluses, Minuses and Implications)

Listing all the plusses for a solution in one column, all the minusses in another column, and the implications in a third column

Devaluation

Lowering the value of a nation's currency relative to other currencies.

interfirm

Many rapidly growing firms are outsourcing areas like engineering, design, and manufacturing with the use of the Internet, thus, developing a(n) ______ approach to operations management.

What two theories concentrate on managers' attitudes and assumptions about workers?

McGregor's Theory X McGregor's Theory Y

Free Trade

Movement of goods and services among nations without political or economic barriers.

theory z

Ouchi based on Japenese management styles & stresses long term employment; collective decision making; individual responsibility; slow evaluation & promotion; implicit, informal control with explicit, formalized control; moderately specialized career paths; & holistic concern for employees (incl family) Business management theory that integrates Japanese (Type z) and American business practices Type A) Theory Z managers believe that getting employees more involved in work-related decisions will generally increase productivity.

Which task is associated with the organizing function of management?

Preparing an organizational chart

Max Weber

Principles of Bureaucracy

mass production

Process of making large quantities of a product quickly and cheaply Innovations like the mass production of cars can create economies of scale. However, over time this benefit becomes less meaningful because: other companies copy the process mass production, the cost of building each car declined.

line

Production workers, distribution people, and marketing personnel who are responsible for directly achieving organizational goals are called __________________ personnel.

Taylor's goal was to increase worker efficiency and ________________ in order to benefit both the firm and workers.

Productivity

Ouchi's Theory, which of these elements are included in Type A management?

Rapid promotion Individual decision making

Ouchi (according to), the best way for U.S. firms to become more competitive is to adopt the Type J approach to management.

Recent economic developments, as well as demographic and social changes in Japan, have led some Japanese firms to seek new approaches to management. - TRUE

Restructuring

Redesigning an organization so that it can more effectively and efficiently serve its customers.

Kendra is considering opening a new business. While writing the business plan, she is answering the following questions: What external success factors affect the industry? How does her business measure up to competition? What can my bakery do to survive and prosper during a recession? What was Kendra performing?

SWOT analyis

Which item was listed by workers as creating enthusiasm for job content?

Sense of achievement

continuously/improve

Service providers, like manufacturers, must _________________ ___________________to maintain their competitive edge.

Which of the following are outputs in the production process?

Services Goods

Human Relations Skills

Skills that involve communication and motivation, they enable managers to work through and with people.

When it comes to ethics, ______ sets the standards for moral behavior, that is behavior defined as right and wrong.

Society

Objectives

Specific, short-term statements detailing how to achieve the organizations goals

Absolute Advantage

The advantage that exists when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries.

Standard Of Living

The amount of goods and services people can buy with money they have.

profit

The amount of money a business earns above and beyond what it spends for salaries and other expenses.

productivity

The amount of output you generate given the amount of input (e.g., hours worked).

Goals

The broad, long-term accomplishments an organization wishes to attain

Production

The creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge

Balance of Payment

The difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows from other factors such as tourism, foreign aid, military expenditures, and foreign investments. global trade measured by this

Corporate philanthropy

The dimension of social responsibility that includes charitable donations (to non profits)

Quality Of Life

The general well-being of a society in terms of political freedom, a clean natural environment, education, health care, safety, free time, and everything else that leads to satisfaction and joy.

Select all attributes that make the initial cost of incorporating a disadvantage.

The high cost of hiring lawyers and accountants for the complex filings needed. High start-up costs associated with documentation

Management

The process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.

Lean manufacturing

The production of goods using less of everything compared to mass production Using less human effort, less manufacturing space, less investment in tools, and less engineering time is the basic premise

Demand

The quantity of something that consumers are willing and able to buy

Strategic Planning

The setting of major goals of the organization by top manager. the process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals.

Macroeconomics

The study of the economy as a whole

Form utility

The value producers add to materials in the creation of finished goods and services. The value added to inputs during the creation of a product when a butcher produces a specific cut of beef.

A manager that views most employees as motivated to do work is operating under ______, while a manager that views most employees as lazy, is operating under ______.

Theory Y; Theory X

Keynesian Economic Theory

Theory that a government policy of increasing spending could stimulate the economy in a recession

What are two characteristics that define goals?

They are broad. They are long-term.

customize

To __________ is to make a unique product or service for a specific individual.

Which of the following facts best exemplifies the statement that "ethical problems are not unique to the United States"?

Top leaders from other countries have been charged with bribery.

Who performs strategic planning?

Top management

Management Levels

Top-level managers - highest level of management, consisting of the president and other key company executives who develop strategic plans. Ex: CEO, President, Vice-President Middle-level managers - includes general managers, division managers, and branch and plant managers who are responsible for tactile planning and controlling. Ex: Plant managers, Division heads, Branch managers Frontline managers (supervisory managers) - directly responsible for supervising workers and evaluating their daily performance Ex: Supervisors, Foremen, Department heads, Section Leaders

Computers are used to design products when CAD is employed.

True

Networking

Using communications technology and other means to link organizations and allow them to work together on common objectives.

What do strong managers help instill into the corporation when setting examples of ethical behavior?

Values

loss

When a business's expenses are more than its revenues.

Free-market economies

When the market (consists of buyers and sellers) largely determines what goods and services get produced, who gets them, and how the economy grows. ALLOWS COMPETITION benefits - people can work their way out of poverty efficiency competitin business competition - consumers get better prices

McGregor's Theory X and Theory Y identified assumptions managers have about workers. Select the statements below that represent a Theory X manager's beliefs.

Workers are motivated by fear and punishment Workers prefer to avoid responsibility

Digital Natives

Young people who have grown up using the Internet and social networking.

Corporate social Responsibility (CSR)

_____________________ is a business's concern for the welfare of society.

franchisor

a company that develops a product concept and sells others the rights to make and sell the products

Regardless of the size of the organization, the principles of organizing include:

a hierarchy of authority dividing up the tasks to be done deciding what work needs to be done

Franchisee

a person who buys a franchise

job seekers who want to work in global business should recognize that SMALL BUSINESS account for:

about 1/3 of U.S. exports

Mixed Economy

an economic system that combines private and state enterprises

Consumer Price Index (CPI)

an index of the cost of all goods and services to a typical consumer measure the pace of inflation AND measure of purchasing power CPI (consumer price index)/PPI (producer price index)= INFLATION

Social conscious research organizations

analyze and report on corporate social responsibility efforts

Among the hurdles small businesses must overcome in starting to operate globally are:

bureaucratic paperwork difficulty finding financing understanding cultural differences

Jason has prepared a comprehensive ______________________ ___________________ which includes a cover letter, executive summary, company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, and an appendix.

business plan

Effective ethics officers implement ethical standards in what two ways?

by maintaining confidentiality with employees by conducting objective investigations to ensure fairness

The result of the increase in the rate of change in the business environment from causes such as natural disasters and global competition has been that companies must:

change more quickly than ever beforeadapt to new technologies

The tasks of the Chief Financial Officer include:

collecting funds obtaining funds planning budgets

Organizations reorganized to empower frontline workers so that they:

could more efficiently and effectively serve customers

Which term defines having to choose among two or more alternatives?

decision making

What are two elements of an integrity-based ethics code?

defines guiding values promotes shared accountability

Taylor's method was to:

determine the one "best" way teach people the one best way to do their jobs teach people the one best way to do their jobs

sociocultural differences

differences among cultures in language, attitudes, and values MAJOR HURDLE TO SUCCEED IN GLOBAL TRADE

While not motivators, the absence of certain factors from the job environment will cause ________________ .

dissatisfaction

Once managers determine what work needs to be done, they then need to divide up the tasks among workers. This is called of ._______________ ______ ____________________

division of labor

So far, the high cost of CAD/CAM techniques has limited their use to large, expensive manufactured goods such as automobiles.

false

Because investors want to be protected against any possible mishaps, it is also a good idea to include a description of __________________ coverage in the Company Background portion of the business plan.

insurance

Written ethics codes can be categorized as

integrity-based compliance-based

A business should be managed ethically because

it is the right thing to do it is legal and keeps the government from writing new laws it is good for employee turnover, and maintains a good reputation keeps customers and attracts new ones pleases employees and society

Managers must recognize that motivating individuals today requires:

knowing that generations have different cultures familiarity with a variety of cultures from around the world understanding of different cultures within a country

Select inputs into the production process.

labor land capital

In a recent survey, what reason was given by nearly half of the respondents when asked what their reason was for changing jobs?

lack of appreciation

factors of production

land, labor, capital, entrepreneurship, knowledge

Uses of sensors to control manufacturing processes include:

measuring humidity the measurement of the thickness of material

Globalization has created a need for managers to understand cultural differences in order to __________- employees around the world.

motivate

More people leave their jobs for:

opportunities to advance their careers

Which three tasks are associated with the management function known as organizing?

places employees and resources where they will be effective in achieving the organization's goals designs the structure of the organization creates an organization chart showing lines of responsibility and authority

A common form of cheating in schools today that cuts and pastes information from the internet without giving credit is

plagiarism

Corporate ______________________________is the dimension of social responsibility that refers to a position a firm takes or statement it makes on social and political issues.

policy pg 98

consumer prices up purchasing power down

purchasing power means how much your money can buy—its "buying power." caused by an increase in available currency You lose purchasing power when prices go up and gain purchasing power when prices go down.

Recognize that service providers must focus on providing customers with quality and to compete globally.

quality care and attention

Functions included in staffing an organization are

retaining hiring recruiting

Whistleblowers can be helped by protecting them from:

retaliation

control function of management

rewards people for work well done takes corrective action when necessary measures performance relative to the planned objectives and standards

Stockholders are ______________________from the managers and employees of the firm because they are not actively involved in the operations of the firm.

separate

Production management has, historically, meant the activities managers do to help their firms produce __________________, whereas operations management has evolved into a specialized management area that converts resources, including human resources, to produce goods and _________________________

services

The process of determining the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals is called _______________ ___________________.

strategic planning

theory x

the assumption that employees dislike work, are lazy, dislike responsibility, and must be coerced (forced) to perform wishing to avoid responsibility

When businesses evolved into larger organizations producing larger amounts of product more efficiently using mass production methods, it could be said that:

the bigger the plant, the more efficient production became

Microeconomics

the branch of economics that studies the economy of consumers or households or individual firms

equilibrium price

the price that balances quantity supplied and quantity demanded

supply

the quantity of products that manufacturers or owners are willing to sell at different prices at a specific time

limited liabilty

the responsibility of a business's owners for losses only up to the amount they invest; limited partners and shareholders (stockholders) have limited liability

principle of motion economy

theory developed by Frank and Lillian Gilbreth that every job can be broken down into a series of elementary motions

A ______________ gives an organization a sense of purpose and a set of values that unite workers.

vision

McGregor, Theory X managers view employees as:

wishing to avoid responsibility

In which two situations is autocratic leadership effective?

working with new, unskilled workers emergencies

Foreign Subsidiary

A company owned in a foreign country by another company.

Countertrading

A complex form of bartering in which several countries may be involved, each trading for goods for goods or services for services.

Boundaries

A cross-functional team that includes suppliers, distributors, and customers goes beyond organizational

Strategic Alliance

A long-term partnership between two or more companies established to help each company build competitive market advantage.

Perfect competition

A market structure in which a large number of firms all produce the same product

Joint Venture

A partnership in which two or more companies (often from different countries) join to undertake a major project.

Hierarchy

A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person.

Social Audit

A systematic evaluation of an organizations progress toward implementing socially responsible and responsive programs

Tariff

A tax imposed on imports.

Which of the following characteristics are needed to become a successful entrepreneur?

Action-oriented Tolerant of uncertainty Initiative

stakeholders

All the people who stand to gain or lose by the policies and activities of a business.

facility layout

Arrangement of resources, including people, to most efficiently produce goods and services

Ethics

Standards of moral behavior, that is, behavior accepted by society as right versus wrong

Command Economies

Systems in which the economy rely on central authority to make all decisions about the economy

Recent economic developments, as well as demographic and social changes in Japan, have led some Japanese firms to seek new approaches to management.

TRUE

Mass customization

Tailoring products to meet the needs of individual customers

Top Management

The highest level of management, consisting of the president and other key company executives who develop strategic plans. Ex: CEO, President, Vice-President

scientific management

The idea that all jobs can be broken down into elemental steps that can be made more efficient

Tactical Planning

The identification of specific, short-range objectives by lower-level managers.

Middle Management

The level of management that includes general managers, division managers, and branch and plant managers who are responsible for tactile planning and controlling. Ex: Plant managers, Division heads, Branch managers

Chain of Command

The line of authority that moves from the top of a hierarchy to the lowest level.

Brain drain

The loss of highly educated and skilled workers to other countries

Facility location

The process of selecting a geographic location for a company's operations is a significant question because, once the decision has been made and implemented, the firm must live with it due to the high costs involved.

Operational Planning

The process of setting work standards and schedules necessary to implement the company's tactical objectives

Franchising

The right to use a specific business's name and sell its products or services in a given territory. someone with a good idea for business sells other the right to use business name

Computer-aided design was united with computer-aided manufacturing to bring computer-integrated manufacturing to the business world.

True

Most entrepreneurs do not get their ideas from a flash of inspiration; they come more from their passions or looking at problems.

True

The main advantage of a sole proprietorship is ease of start up.

True

True or False Whistleblowers are often concerned about retaliation.

True

______________ are insiders who report illegal or unethical behavior (answer is one word).

Whistleblowers

job rotation

a job enrichment strategy that involves moving employees from one job to another

Controlling

a management function that involves establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job , and taking corrective action if they do not.

Monopolistic Competition

a market structure in which many companies sell products that are similar but not identical

job enrichment

a motivational strategy that emphasizes motivating the worker through the job itself

coattail effect

actions of other franchises can have good or bad effects

Many corporate executives reported that they use social media to communicate their socially responsible activities to customers because it ?

allows them to connect directly with customers allows them to reach specific groups more directly reaches broad and diverse groups

Socialism

an economic system based on state ownership of capital governemnt/state owns businesses benefits - free education and health care causes brain drain

Communism

an economic system in which the central government directs all major economic decisions little incentive to work government owns almost all factors of production

limited partner

an owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment

Becoming a(n) __________________ is one of the best ways to learn about how to run a business

apprentice

Studies show that companies with reputations for good corporate social responsibility ....

attract and retain better employees

The motives of those involved in unethical behavior that caused the financial crisis in the real estate, banking, and mortgage industries included:

greed the wish to inflate their own earnings

process layout

similar equipment and functions are grouped together

managers

staff production line - Those directly responsible for achieving the organization's production goals by issuing orders and enforcing discipline top

goal-setting theory

the idea that setting ambitious but attainable goals can motivate workers and improve performance if the goals are accepted, accompanied by feedback, and facilitated by organizational conditions the basis for Management by Objectives developed by Peter Drucker in the 1960s, proposes that setting ambitious, but attainable goals can motivate workers and improve performance.

Embargo

A complete ban on imports or exports of a certain product, or the stopping of all trade with a particular country.

entrepreneur

A person who risks time and money to start and manage a business.

Operations management

A specialized area in management that converts or transforms resources into goods and services planning helps to solve issues related to facility layout, facility location, and inventory control.

Conventional corporation

A state-chartered legal entity with authority to act and have liability separate from its owners

When designing responsive organizations, what decisions do firms have to make?

Decide between centralization versus decentralization Decide the span of control Choose between tall or flat structures

Corporate social initiatives

Enhanced forms of corporate philanthropy directly related to the companies competencies

e-commerce

The buying and selling of goods over the internet.

Foreign Direct Investment

The buying of permanent property and businesses in foreign nations.

risk

The chance an entrepreneur takes of losing time and money on a business that may not prove profitable.

World Trade Organization (WTO)

The international organization that replaced the General Agreement on Tariffs and Trade (GATT) and was assigned the duty to mediate trade disputes among nations. overseas cross boarder trade global business practices

Vertical merger

The joining of two companies involved in different stages of related businesses

Horizontal merger

The joining of two firms in the same industry

Contingency Planning

The preparing of alternative courses of action that may be used if the primary plans don't achieve the organization's objectives.

Balance of Trade

The total value of a nation's exports compared to its imports measured over a particular period.

Greening

The trend toward saving energy and producing products that cause less harm to the environment

In addition to good ideas, entrepreneurs must

have a burning desire to realize and actualize their dream want to see their dream become reality be action oriented

operations management planning

helps solve many of the problems in the service and manufacturing sectors

human relations skills

skills that involve communication and motivation; they enable managers to work through and with people

Climate Change

the movement of the temperature of the planet up or down over time

SWOT analysis?

to evaluate a company's ability to pursue market opportunities and defend against threats to evaluate the strengths and weaknesses of a company's resources analysis - to evaluate the strengths and weaknesses of a company's resources to evaluate a company's ability to pursue market opportunities and defend against threats

Equity theory states that employees:

try to maintain equity between what they put into a job and what they get out of it compare their inputs and outputs to those of others in similar positions perceptions of fairness affect motivation

Because of the difficulty in ending a partnership, decisions regarding what two areas should be spelled out in a partnership agreement?

when a partner can retire how to distribute assets

Adam Smith, The Wealth of Nations

why some nations are wealthy and other are poor - true Promoted laissez-faire, free-market economy, and supply-and-demand economics.

PERT

1. analyze and sequence the tasks that need to be done 2. estimate the time needed to complete each task 3. draw a PERT network illustrating the information from steps 1 and 2 4. identify the critical path

rank jobs according to their respective importance for the implementation of ethical standards with the most influence:

1. top management 2. supervisor 3. full-time co-workers 4. part-time co-workers

Deflation

A situation in which prices are declining

Quality control

Consistently producing what the customer wants while reducing errors before and after delivery to the customer

Gross Domestic Product (GDP)

The sum total of the value of all the goods and services produced in a nation economic indicator

Which is not an element of scientific management?

human factors

Enforcement in a timely manner is the ____________________ , most critical step in the development of an ethics code program.

sixth (page 95-96)

Directive leaders are often needed in organizations with workers who lack ____________ and ______________ needed to do the job.

skill experience

Identity Theft

the obtaining of individuals' personal information, such as Social Security and credit card numbers, for illegal purposes

Program evaluation and review technique (PERT)

A method for analyzing the tasks involved in completing a given project, estimating the time needed to complete each task, and identifying the minimum time needed to complete the total project

Real unemployment rate

A more inclusive version of the unemployment rate, which includes marginally attached, discouraged, and underemployed people

Enterprise resource planning (ERP)

A newer version of MRP that combines the computerized functions of all divisions and subsidiaries of the firm (finance, human resources) into a single integrated software program that uses a single database

General Partnership

A partnership in which all owners share in operating the business and in assuming liability for the businesses debts

Limited Partnership

A partnership with one or more general partners and one or more limited partners - not set up for temporary purposes

Decentralized Authority (organization)

An organization structure in which decision-making authority is delegated to lower-level managers more familiar with local conditions than headquarters management could be.

reducing time to market

If a company has a goal of ______, it might choose to locate its facilities to an area that has access to major highways, ports, railways, and airports.

Who performs tactical planning in an organization?

Managers or teams of managers at lower levels

Monetary Policy

The management of the money supply and interest rates (Federal Reserve)

Trust and cooperation between workers and managers must be based on which of the following?

based on fairness, honesty, openness and moral integrity

General Agreement on Tariffs and Trade (GATT)

A 1948 agreement that established an international forum for negotiating mutual reductions in trade restrictions.

Cooperatives

A business owned and controlled by the people who use it-producers, consumers, or workers with similar needs who pool their resources for mutual gain

Sole Proprietorship

A business that is owned, and usually managed, by one person ADVANTAGES: 1. Ease of starting (less expensive to start) and ending the business 2. Being your own boss 3. Pride of ownership 4. Leaving a legacy 5. Retention of company profits 6. No special taxes DISADVANTAGES: 1. Unlimited liability-the risk of personal losses 2. Limited financial resources 3. Management difficulties 4. Overwhelming time commitment 5. Few fringe benefits 6. Limited growth 7. Limited life span - unless it is sold OR

match the flexibility of small firms

A large organization might use a flat organization structure in order to

Grantt chart

Bar graph showing production managers what projects are being worked on and what stage they are in at any given time

External Customers

Dealers, who buy products to sell to others, and ultimate customers (or end user) who buy products for their own personal use

change

Employees at all levels often resist _________ because they are used to doing their jobs in ways they know.

Staff Personnel

Employees who advise and assist line personnel in meeting their goals.

Line Personnel

Employees who are part of the chain of command that is responsible for achieving organizational goals.

Micropreneurs

Entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle.

First Line managers (Supervisory Management )

Managers who are directly responsible for supervising workers and evaluating their daily performance Ex: Supervisors, Foremen, Department heads, Section Leaders

management by objectives (MBO)

Peter Drucker's system of goal setting and implementation; it involves a cycle of discussion, review, and evaluation of objectives among top and middle-level managers, supervisors, and employees A system of goal setting and implementation designed by Peter Drucker

Chris spent his own money on marketing research, and consulted his sister Kara, who is an accountant. They spent the next few months writing a business plan. What are some business functions Chris has addressed?

Planning Financing Marketing

performance standards

Poppy is a sales manager for Shimmer Sisters Cosmetics. She told her team she expects each of them to increase their customer interactions by at least 5% in the next month.

Which of the following are good ways to learn how to run your own business?

Talk to other business owners Work for a successful entrepreneur Run a small business during your off hours

goods

Tangible products such as computers, food, clothing, cars, and appliances.

True or false: Individuals have social responsibilities regarding their ethical behavior in the business world.

True

True or false: Networking uses technology, such as a company intranet, to link organizations and their suppliers to allow them to work together for a common goal.

True

Ethnocentricity

an attitude that your own culture is superior to other cultures

David opened his own bicycle shop 30 years ago, and although he enjoyed his work, he needed more free time. When Josie requested to work as an apprentice, David was very willing. Before long Josie was able to run the store without any help. This is an example of how:

apprenticeships can benefit both the business owner and the apprentice

outsourcing

assigning various functions, such as accounting, production, security, maintenance, and legal work to outside organizations

Leadership Styles

autocratic - making managerial decisions without consulting others participative - involves managers and employees working together to make decisions free-rein - managers set objectives and employees are free to do what ever is appropriate to accomplish those objectives

When writing a business plan, it is important to:

calculate how much money you need to start analyze the competition

Gen Xers seek economic security by doing which of the following? Gen X managers generally:

changing jobs to find job security are good at allowing workers to have autonomy to get the job done give employees good feedback value results rather than hours at work there is more to life than work results are more important than hours spent in the workplace flexibility and consensus building work well

The statement by Patagonia that "A love of wild and beautiful places demands participation in the fight to save them, and to help reverse the steep decline in the overall environmental health of our planet" is an example of ????

corporate policy

By developing _______________ ______________________ __________________ , a company can reduce its production costs if it can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.

economies of scale

A good business plan takes a lot of time to write, but you have only a few minutes to convince readers not to throw it away. This is why your ______________________________summary is very important.

executive

Although definitions and means of measuring a carbon footprint aren't yet clear, many companies try to become more _________________by claiming to reduce it.

green

A culture that focuses on building personal relationships and trust before focusing on tasks is a ___________________ -context culture.

high

Tactical plans that are detailed and short term state

how it will be done who is to do it what is to be done

A firm that has a marketing department organized geographically and a production process organized by function has which type of departmental structure?

hybrid

Leadership

is creating a vision for others to follow, establishing corporate values and ethics, and transforming the way an organization does business in order to improve its effectiveness and efficiency. leadership styles - auatocratic participative free-rein

principles of organization

organizing (structuring) - determining what work needs to be done division of labor - dividing up the tasks job specialization - dividing tasks into smaller jobs departmentalization - set up idivid department Regardless of the business size the principles are similar.

Companies that try to act in a socially responsible way are likely to focus on such activities as

providing safety equipment and training for their workers increasing the diversity of their workforce using recyclable packaging

If you start and manage a landscaping business on your own, you have likely started a:

sole proprietorship

extrinsic reward

something given to you by someone else as recognition for good work; e.g. rewards: pay increases, praise, promotion

time-motion studies

studies, begun by Frederick Taylor, of which tasks must be performed to complete a job and the time needed to do each task study occurs when a manager observes workers as they shovel different types of materials with different types of shovels in order to determine the most efficient tool and method to use. ex: Measuring the time and amount produced by different methods and tools when shoveling coal

Unemployment rate

the percentage of the labor force that is unemployed (at least 16 years of age and trying to find work within the prior four weeks)

structural unemployment

unemployment that occurs when workers' skills do not match the jobs that are available lost jobs due to restructure

cyclical unemployment

unemployment that rises during economic downturns and falls when the economy improves recession

If your company's debts or damages are solely your responsibility you could be experiencing the disadvantage associated with owning a sole proprietorship called ________________________ ___________________________.

unlimited liability

The disadvantage of sole proprietorships is that any debts or losses incurred by the business are your debts because you and the business are legally one and you have _________________ _____________________.

unlimited liability

Trade Surplus

A favorable balance of trade; occurs when the value of a country's exports exceeds that of its imports.

Continuous process

A production process in which long production runs turn out finished goods over time A production process like that of a chemical plant where the process has long runs during production

Common Market

A regional group of countries that have a common external tariff, no internal tariffs, and a coordination of laws to facilitate exchange; also called a trading bloc. (An example is the European Union)

Virtual Corporation (organization)

A temporary networked organization made up of replaceable firms that join and leave as needed.

S corporation

A unique government creation that looks like a corporation but is taxed like sole proprietorship's and partnerships (if loses its status, may not re-elect status for 5 years) To qualify as a S corporation, a company must: 1. Have no more than 100 shareholders 2. Have shareholders that are individuals or estates, and who are citizens or permanent residents of the US 3. Have only one class of stock 4.Derive no more than 25 percent of income from passive sources

What theory is based on the idea that employees try to maintain fairness or balance between inputs and outputs as compared to others in similar positions?

Equity

The many small choices we make daily about working or goofing off, using company phones and computers responsibly, and following safety rules, make it clear that ___________________decisions start with each individual.

Ethical

Union officials

Hunt down violations and force companies to comply to avoid negative publicity

quality

In addition to inventory management, scheduling, and follow-up services, a critical function of operations management is ____________ control.

Customers

Make buying decisions based on their social conscience

fixed-position layout

allows workers to congregate around the product to be completed

The concern businesses have for the welfare of society, not just for their owners is:

based on a commitment to integrity and respect corporate social responsibility

Research has shown that companies engaged in corporate social responsibility (CSR):

draw more customers retain better employees enjoy greater employee loyalty

Many organizations have reorganized to make workers their most important people.

frontline

Which three managers would be classified as middle management?

general managers plant managers division managers

Vision

gives it a sense of purpose and a set of values that unites workers in a common destiny. is a broad explanation of why the organization exists and where it is trying to go.

Using an Internet-focused strategy, operations managers are outsourcing design, production, and shipping to other firms. This process is called a(n):

inter-firm process

When the continued operation of the business is dependent on the life of the business owner, it is referred to as:

limited life span

structure an organization (4 ways)

line line & staff matrix style cross functional, self managed teams

Technological changes have had such a great impact on the Blank______ that this segment of the American economy will likely never employ as many people as it did in the 1950s.

manufacturing

In order to accomplish their goals, managers must ________________ a firm by allocating resources and assigning tasks.

organize

A SWOT Analysis is a(n) Blank______ tool used to analyze an organization's strengths, weaknesses, opportunities, and threats.

organizing

Select the three basic requirements of production.

provide everything at the lowest possible cost build and deliver products in response to customer demands provide an acceptable quality level

Export Assistance Centers (EACs)

provide hands-on exporting assistance and trade-finance support for small and medium-sized businesses that wish to directly export goods and services

Industrial robots have completely changed manufacturing because they:

reduce costs can work 24/7 with great precision improve productivity

If the statement "ethics is caught more than it is taught" is true, then management facilitates this by:

setting a good example

Henri Fayol's principles for organization structure

unity of command - worker reports to only one boss, so you prevent confusion hierarchy of authority - all workers should know to whom they report division of labor - Functions being divided into areas of specialization such as production, marketing, and finance subordination of individual interests - must work as a team (believes that workers are to think of themselves as a coordinated team) authority - degree of centralization - the amount of decision-making power vested in top management should vary by circumstances. clear communication channels order - materials and people should be placed and maintained in the proper location: equity - treat employees with respect and justice esprit de corps - a spirit of pride

After working for a large auto manufacturing company for over 20 years, Silvia decided to start her own auto accessory store. While facing new challenges every day, Silvia enjoys being free to manage her company as she desires. This example illustrates:

why people take the risks of entrepreneurship

Import Quota

A limit on number of products in certain categories that a nation can import.

at a very low cost

The main idea behind mass production is to produce a large number of a limited variety of products Blank______.

Real Time

The present moment or the actual time in which something takes place

Transparency

The presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders

National Debt

The sum of government deficits over time.

When organizing a firm, top managers:

assign tasks establish procedures allocate resources

Companies like Ford are using self-managed teams to improve productivity by allowing teams enough ____________ to solve problems and meet objectives.

autonomy, freedom, control, or authority

An employee that is part of Generation X is likely to ______.

be more concerned with economic and career security

In 2019,online retail sales reached over $365 ______________ , or approximately___________________ percent of all retail sales.

billion 12

Employee empowerment cannot be successful without clear and open ______________ throughout an organization.

communication

Once the department manager determines the work that needs to be done, the next step is dividing the tasks among department employees. This step is known as:

division of labor

The mortgage bankers and real estate companies who helped create the financial crisis of 2008 were driven by ____.

greed

What function of management designs the structures and systems in which everyone works together to achieve the organization's goals and objectives?

organizing

Recognize that service providers must focus on:

providing customers with quality care maintaining strong relationships with their suppliers providing customers with attention to their needs

Socially conscious investors insist that a company extend its own high standards to its ______________________

suppliers

additive

3D printing is a production process also known as_________________ manufacturing.

Ouchi's Theory Z, Type _____________________ management is achievement oriented.

A Ouchi's Theory Z is a blend of Type A and Type J business cultures. - TRUE

Which of the following is an advantage related to conducting quality control throughout production instead of at the end of the production line?

Finding defects prior to completion saves expensive resources.

To which part of the theories is job enrichment most closely related?

Herzberg's higher-level motivators

Critical path

In a PERT network, the sequence of tasks that takes the longest time to complete

precision

Industrial robots can work 24 hours a day, seven days a week with ______________ great .

Principles of Bureaucracy

Job descriptions - written rules, decision guidelines & detailed records consistent procedures, regulations & policies staffing and promotion based on qualifications brought consistent application of rules and procedures to organizations were proposed by Max Weber

factors

Land, labor, capital, entrepreneurship, and knowledge are all _______________to the production process.

Autocratic Leadership

Leadership style that involves making managerial decisions without consulting others

Participative Leadership

Leadership styles that consist of managers and employees working together to make decisions

Licensing

A global strategy in which a firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee ( a royalty).

Partnership

A legal form of business with two or more owners ( written agreement) ADVANTAGES: 1. More financial resources 2. Shared management and pooled/complementary skills and knowledge 3. Longer survival 4. No special taxes DISADVANTAGES: 1. Unlimited Liability 2. Division of profits 3. Disagreements among partners 4. Difficulty of termination

Staffing

A management functuon that includes hiring, motivating, and retaining the best people available to accomplish company objectives

Leading

A means creating a vision for the organization and guiding training, coaching, and motivating others to work effectively to achieve the organization's goals and objectives in a timely manner. The management function that involves creating a vision for the organization, communicating it to others, and motivating them to achieve goals

Limited Liability Partnership (LLP)

A partnership that limits partners' risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervsion

Master limited partnership (MLP)

A partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax

Depression

A period of low economic activity and rising unemployment

Resource development

The study of how to increase resources and create conditions that will make better use of them (Recycling and Conservation)

Less need for policy manuals, organization charts, and formal controls is a sign of shared values in a:

corporate culture that emphasizes service to others

CFO

corporate officer tasked with obtaining funds, planning budgets, and collecting funds

The dimension of social responsibility, which includes certain aspects such as producing low-emission vehicles, is called:

corporate responsibility

__________________ ethics codes define an organization's guiding values, create an environment that supports ethically sound behavior, and stresses shared accountability.

Compliance-based

Compliance-based ethics codes

Ethical standards that emphasize preventing unlawful behavior by increasing control and by penalizing wrong doers

technology

Everything from phones and copiers to computers, medical imaging devices, personal digital assistants, and the various software programs that make business processes more efficient and productive.

Corporation

A legal entity with authority to act and have liability apart from its owners the process of forming a corp - bylaws = how firm is to be operated article of incorp filed in the state the company will be incorporated ADVANTAGES: 1. Limited liability 2. Ability to raise more money for investment 3. Size 4. Perpetual life 5. Ease of ownership change 6. Ease of attracting talented employees 7. Separation of ownership from management DISADVANTAGES: 1. Initial Cost 2. Extensive paperwork 3. Double taxation 4. Two tax returns 5. Size 6. Difficulty of termination 7. Possible conflict with stockholders and board of directors

Just-in-time inventory control

A production process in which a minimum of inventory is kept on the premises and parts, supplies and other needs are delivered just in time to go on the assembly line

Span of Control

The optimum number of subordinates a manager supervises or should supervise. An important decision to be made while designing a responsive organization organizations adopt empowerment, reduce the number of middle managers, and hire more talented and better educated lower-level employees the trend today is to EXPAND the span of control.

Market Price

The price determined by supply and demand.

demography

The statistical study of the human population with regard to its size, density, and other characteristics such as age, race, gender, and income.

Millennial Generation include:

always having the Internet in their world having cell phones having been raised by indulgent parents

Many people do not like working for someone, so being your own is ___________ an advantage of sole proprietorships.

boss

While workers in the United States are more task oriented and require information to do their jobs, workers from Korea are more motivated by strong relationships and developing trust to do the same job. That is because Korea is a ______ context culture and the U.S. is a ______ context culture.

high,low

Studies show that companies with good ethical reputations also enjoy which of the following outcomes as a result?

Attract and retain better employees Draw more customers

Which set of ethics codes emphasizes preventing unlawful behavior by increasing control and penalizing wrongdoers?

Compliance-based ethics codes

An additive manufacturing process that creates a product one layer at a time using a nozzle similar to those in inkjet printers is:

3D printing

Small Business

Business that is independently owned & operated is not dominant in its field of operation meets certain standards of size in terms of employees or annual receipts.

Core Inflation

CPI minus food and energy costs

Which of the following tasks are associated with the leading function of management?

Guiding and motivating employees Clarifying policies to reach objectives

Choose an input to the production process below.

Knowledge

Core Competencies (Compentency)

Those functions that the organization can do as well as or better than any other organization in the world. Nike's strength is in designing and marketing athletic shoes and Apple's is in marketing innovative electronics. These are examples of each company's: Nike sells golf clubs, swim wear, as well as footballs. However, Nike is best known for its performance in designing and marketing of athletic shoes.

sensor

When a computerized data control ________________ detects a problem, it notifies someone to make needed changes.

marketing research study may help you determine which of the following?

Whom to select as your target market What is an effective strategy for reaching your target market Where to locate

Limited liability company (LLC)

A company similar to an S corporation but without the special eligibility requirements ADVANTAGES: 1. Limited liability 2. Choice of taxation 3. Flexible ownership rules 4. Flexible distribution of profits and losses 5. Operating flexibility - no annual meetings - do not have to file written resolutions - do not have to keep minutes DISADVANTAGES: 1. No stock 2. Limited life span 3. Fewer incentives 4. Taxes 5. paperwork

Contract Manufacturing

A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark.

Disinflation

A reduction in the rate of inflation

Affiliate Marketing

An Internet-based marketing strategy in which a business rewards individuals or other business (affiliates) for each visitor or customer the affiliate sends to its Web site.

Franchise agreement

An arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory

Centralized Authority (organization)

An organization structure in which decision-making authority is maintained at the top level of management at the company's headquarters.

Flat Organization Structure

An organization structure that has few layers of management and a broad span of control. organization structures respond to customer demands faster because its lower-level employees have authority and responsibility for making decisions.

Inverted Organization

An organization that has contact people at the top and the chief executive officer at the bottom of the organization chart.

Bureaucracy

An organization with many layers of managers who set rules and regulations and oversee all decisions.

information technology

Because of ____________________ _________________, more flexibility in choice of business location has increased while allowing firms to remain competitive.

Business Plan

Detailed written statement that describes the nature of the business, the target market, the advantages the business will have in relation to competition the resources and qualifications of the owner(s). Includes: cover letter - most attractive points of your project in as few words as possible executive summary - A short description of the business along with major goals and objectives company background - describes company operations to date (if any), potential legal considerations, and areas of risk and opportunity. This portion also summarizes the firm's financial condition, and includes past and current balance sheets, income and cash flow statements. management team - job descriptions of listed positions resumes of current and proposed executives an organizational chart financial plan - how you plan to fund the business at various stages of the company's growth capital required marketing plan - covers patents location analysis manufacturing plan appendix

Conceptual Skills

Skills that involve the ability to picture the organization as a whole and the relationships among its various parts.

Informal Organization

The system that develops spontaneously as employees meet and form cliques, relationships, and lines of authority outside the formal organization; that is, the human side of the organization that does not appear on any organization chart.

Production management

The term used to describe all the activities managers do to help their firms to create goods.

Comparative Advantage Theory

The theory that states that a country should sell to other countries those products that it produces most effectively and efficiently, and buy from other countries those products that it cannot produce as effectively or efficiently.

revenue

The total amount of money a business takes in during a given period by selling goods and services.

Computer-integrated manufacturing (CIM)

The uniting of computer-aided design with computer-aided manufacturing

Computer-aided design (CAD)

The use of computers in the design of products

Computer-aided manufacturing (CAM)

The use of computers in the manufacturing of products

Trade Protectionism

The use of government regulations to limit the import of goods and services.

Management Functions

planning - anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives. EX: Setting organizational goals organizing - A management function that includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives EX: places employees and resources where they will be effective in achieving the organization's goals/designs the structure of the organization/creates an organization chart showing lines of responsibility and authority leading - creating a vision for the organization, communicating it to others, and motivating them to achieve goals EX:Guiding and motivating employees Clarifying policies to reach objectives controlling - establishing clear standards to determine whether or not an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they do not.

When top management is deciding the organization's major goals, policies, and the resources needed to get there, they are doing _________________planning.

strategic

scientific management

studying workers to find the most efficient ways of doing things and then teaching people those techniques The idea that all jobs can be broken down into elemental steps that can be made more efficient became the dominant strategy for improving productivity in the early 1900s

The definition of ______ ______ states: managers who are directly responsible for supervising workers and evaluating their daily performance.

supervisory management

modular layout

teams of workers combine to produce more complex units of the final product

According to Andrew Grove, the former chairman of Intel, three basic requirements of production are:

timely delivery, quality, and low cost

Line Organization

An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor.

Multinational Corporation

An organization that manufactures and markets products in many different countries and has multinational stock ownership and multinational management.

Enviornmentalists

Apply pressure by naming companies that don't abide by environmentalists standards

Organizational (or corporate) Culture

Widely shared values within an organization that provide unity and cooperation to achieve common goals.

Departmentalization

The dividing of organizational functions into separate units.

time to market

The facility location decision factor known as Blank______, refers to moving products quickly and inexpensively to customers.

Purchasing

The function in a firm that searches for high-quality materials resources, finds the best suppliers, and negotiates the best price for goods and services

Facility Layout

The physical arrangement of resources (including people) in the production process Facility layout is important for manufacturing plants because facilities layout decisions can have a huge impact on the firm's costs.

Problem Solving

The process of solving the everyday problems that occur. Problem solving is less formal than decision making and usually calls for quicker action.

Statistical process control (SPC)

The process of testing statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards

Statical quality control (SQC)

The process some managers use to continually monitor all phases of the production process to assure that quality is being built into the product from the beginning

Factors Of Production

The resources used to create wealth: land, labor, capital, entrepreneurship, and knowledge.

Economies of Scale

The situation in which companies can reduce their production costs if they can purchase raw materials in bulk; the average cost of goods goes down as production levels increase.

Formal Organization

The structure that details lines of responsibility, authority, and position; that is, the structure shown on organization charts (design)

Economics

The study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.

Business Environment

The surrounding factors that either help or hinder the development of business.

Foreign Corrupt Practices Act

US legislation that US businesses must follow that prohibits "questionable" or "dubious" payments to foreign officials to secure business contracts.

Select the characteristics of an intrapreneur.

a creative person who works within a corporation he or she generates profits by leveraging a firm's human financial and physical resources. someone who uses company's resources to launch new products

job enlargement

a job enrichment strategy that involves combining a series of task into one challenging and interesting assignment

Vroom's expectancy theory states that the:

amount of effort an employee exerts on a specific task depends on expectations of the outcome

A cross-functional team that is working on the development of a new prosthetic device for amputees should include:

amputees who will use it parts suppliers for medical devices product designers

Service Corps of Retired Executives (SCORE)

an SBA office with volunteers from industry, trade associations, and education who counsel small businesses at no cost (except for expenses)

Leveraged buyout (LBO)

an attempt by employees, management, or a group of investors to purchase an organization primarily though borrowing

franchise

the right to use a specific business's name and sell its products or services in a given territory ADVANTAGES: 1.Managing and marketing assistance 2.Personal ownership 3.Nationally recognized name 4.Financial advice and assistance 5. Lower failure rate 6. Most popular type to start = restaurants DISADVANTAGES: 1. Large start up costs 2. Shared profit 3. Management regulation 4.Coattail effects 5. Restrictions on selling 6. Fraudulent franchisors

Merger

The result of two firms forming one company

Stagflation

a period of slow economic growth and high unemployment (stagnation) while prices rise (inflation)