bnad 302 exam 2
Operational planning must be completed by first-line managers every ____, and tactical planning is done by middle management every ____.
1 to 52 weeks; 6 to 24 months
Is the proposed action legal? If yes, does the proposed action maximize shareholder value? If yes, is the proposed action ethical? If no, would it be ethical not to take the proposed action? These are four questions that managers of all organizations should ask when confronted with a decision on an action according to _____.
Bagley's ethical decision tree
Patty, the CEO of an oil drilling company, and her top management team recently discovered that their facilities are damaging an Asian beach and the local wildlife. They understand that they need to decide if temporarily closing or not closing the facility is unethical. They then consider the four questions: Is not temporarily closing the facility legal? If yes, does this proposed action maximize shareholder value? If yes, is not temporarily closing the facility ethical? If no, would it be ethical not to take the proposed action? These are suggested questions according to _____.
Bagley's ethical decision tree
ABC Medical Technology, a fast-growing global research firm, has accumulated so much client information that conventional database management systems cannot handle its customer needs. Therefore, it purchased very sophisticated analysis software and supercomputing-level hardware. For the company's work with hospitals and university medical schools, ABC has been noted in publications as "real pioneers for innovation and productivity." This vast amount of data is known as ____.
Big Data
The process of studying large amounts of data of a variety of types to uncover hidden patterns, unknown correlations, and other useful information is known as ____.
Big Data analytics
In the third step of rational decision making (evaluating alternatives and select a solution), you need to evaluate each alternative not only according to cost and quality but also according to the following questions: _____
Is it ethical, feasible, and effective?
The process for motivating employee performance in which the manager and employee jointly set objectives for the employee, the manager develops action plans, the manager and employee periodically review the employee's performance, and the manager makes a performance appraisal and rewards the employee according to results is known as ____.
MBO
Billy told his boss, Gwen, that he is going to start training for the upcoming marathon to be healthier and to have more energy for work. When Gwen asked him about his running history, Billy said, "I really have never run before and don't exercise much. I just know I need to do something." Gwen told Billy, "You should start slowly, maybe setting smaller, realistic exercise goals that are achievable." Gwen is helping Billy with an achievable goal, a type of _____.
SMART Goal
Brenda, the district manager for Beautiful Florist, told the store managers in her district that she needs the sales goals for next year. A new manager, Paula, said, "I am going to sell over $100,000 in flowers next year." Brenda later told Paula that "I need to know specifically, in each category, how much you plan on selling." Brenda's request for a specific answer is an example of a _____.
SMART goal
The HR Department of French Quarter Seafood did a training workshop on setting and achieving organization goals. Alex, the store manager of the New Orleans location, has been working with his managers to set objectives that are specific, measurable, attainable, results-oriented, and have target dates. These types of goals define ____.
SMART goals
According to Richard Branson, founder of Virgin Atlantic airlines, you can set a really hard goal, such as increasing your class study time 50%, which is "stretching yourself beyond what your mind might think is safe," also known as a(n) ____.
Stretch Goal
The planning process begins with two attributes: a mission statement, which answers the question _____, and a vision statement, which answers the question ______
What is our reason for being?; What do we want to become
Doug, a new manager, commented to a friend, "I am excited about different aspects of my new job. The company computers have entered the field of decision making. The network not only collects information more quickly, but the system also reduces the roadblocks when I need a group consensus." Doug is referring to _____.
a computer-aided decision-making system
A decision tree is ____.
a graph of decisions and their possible consequences
Satisficing is the tendency of ____.
a group to settle on a decision that is "good enough"
A SWOT analysis is _____.
a search for the strengths, weaknesses, opportunities, and threats affecting an organization
When an organization is able to get and stay ahead in the four areas of (1) being responsive to customers, (2) innovating, (3) quality, and (4) effectiveness, that company can develop ____.
a sustainable competitive advantage
Dave is a salesperson who takes a long time to make decisions. He loves sales because he responds well to the pressure he faces in the many new or uncertain situations as a salesperson. Like most successful salespeople, he is high in his tolerance for ambiguity. Dave represents a person with a(n) _____ style.
analytical
Style Mart uses time-series forecasts, such as past holiday sales and the strength of store sales this year to predict future sales based on patterns of historical data. This is an application of ___.
analytics
Phillip and Meg are selling their home. They listed their house three months ago at an extremely high selling price, a price they randomly chose. They do not want to come down on their price to reflect what the marketplace shows their home is really worth. This is an example of ______.
anchoring and adjustment bias
The Delphi technique is a group process that uses physically dispersed experts who fill out questionnaires to ____.
anonymously generate ideas
When Dave, the sales manager, is deciding on who will train the new sales trainee, he tries not to look at just the recent sales numbers but also checks past sales reports to determine who is the most productive. This way he is not affected by the ______ bias.
availability
Readily available information may not present a complete picture of a situation due to ____.
availability bias
Mandy, a server in a popular family restaurant, is the most popular employee with both customers and employees, and as a result, she usually receives the most tips. She is always ready to lend a hand when asked, and with her warm personality and supportive nature, people confide in her. Mandy does have a problem telling people no, and has a tendency to avoid conflict, concerned about hurting others or getting people mad. Mandy represents a person with a(n) _____ style.
behavioral
The process by which a company compares its performance with that of high-performing organizations is known as ___.
benchmarking
Tom is the CEO of Yost Tech, a large global manufacturing company, and he is having lunch with a longtime friend, Greg, owner of a small office supply store. Tom told Greg that "Strategic management and planning have really increased our success at Yost. I just read an article about an analysis of several studies that found that strategic management and planning _____."
benefits both small and large organizations
When utilizing SMART goals or MBO, deadlines can help you keep your eye on the ______ while simultaneously paying attention to _____.
big picture; the necessary details
Susanne, the CEO of national IT manufacturer, was approached by Simple Phones, a new company that is marketing a new type of phone, to partner with the company on a project. The partnership is uncertain since the company and technology are new. Susanne is uncertain what to do because she is limited by numerous constraints, such as the uncertainty and complexity of the technology, the management success of Simple Phones, and time, since other companies are interested in the partnership. This is an example of _____.
bounded rationality
The idea that proposes that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time, cognitive capacity, values, skills, habits, and unconscious reflexes, is known as _____.
bounded rationality
A technique used to help groups generate multiple ideas and alternatives for solving problems is known as _____.
brainstorming
Instructor Services is a technology company that offers many IT services in highly populated southern Ohio. Services and products include computer training, support, monitoring, repair, network design, virus removal, and software upgrades. It even sells refurbished computers. The source of Instructor Services' strategic position is _____.
broad needs and many customers
The BCG matrix is a means of evaluating strategic business units on the basis of their _____.
business growth rates and share of the market
Prior to opening her new restaurant, Nia is determining what items to offer on the menu, the anticipated profits and expenses, the tasks of various employees, and how those jobs will be handled. Nia is writing her ____.
business model
The need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses is expressed in the organization's ____.
business model
MBO works by objectives moving through the organization; that is, top managers set general organizational objectives, which are translated into divisional objectives, which are translated into departmental objectives. The hierarchy ends in individual objectives set by each employee. This is an example of MBO working as objectives ______ through the organization
cascade down
In the BCG matrix, organizations that have slow growth but high market share, and income from them often finances stars and question marks, are ____.
cash cows
Strategy formulation is the process of _____.
choosing among different strategies and altering them to best fit the organization
The rational model of decision making is also called the ____ model.
classical
Because of frequently changing competition and technology, a company's strategic planning may have to be done _____.
closer to every 1 or 2 years than every 5 years
The growth, stability, and defensive strategies are ____.
common grand strategies
George, a chef and owner of a popular restaurant, is always visiting his competition to observe how they are doing things in their restaurants. He told one of his managers that "I do this because I want to know what is going on. I am always concerned that one of our competitors will surprise us with a new service or menu item like us, but better." George is utilizing ___.
competitive intelligence
Pedro, CEO of a successful IT company, is constantly reading press releases, ads, and news articles about his competition, and he regularly checks information about new competitive products and visits trade shows to study his competition. Pedro is involved in ____.
competitive intelligence
Marie is a small-business owner who loves to take risks. She also enjoys going out and meeting customers and potential clients—the social aspect of her job. Marie relies on intuition and discussions with others to acquire information. As an interior decorator, Marie utilizes her imaginative strengths, taking a broad perspective to problem solving, and she likes to consider many options and future possibilities. Marie represents a person with a(n) _____ style.
conceptual
When people seek information to support their point of view and discount data that do not, this is ______ bias.
confirmation
Sales this year at Donna's Pawn Shop have been high, and based on several factors, Donna projects next year's sales to also be good. However, even with her forecast of continued strong sales, Donna and her partner need to develop a plan in case sales drop unexpectedly. This type of planning for alternative future conditions is known as ____.
contingency planning
John, the owner of a lawn care service, likes to meet with his employees six months after their yearly evaluation to discuss how they are progressing on suggestions on and plans to improve their yearly job evaluation. At this point, by comparing the six-month results with the past evaluation, John is in the ______ steps of the planning/control cycle.
control
Alicia, a district manager for a global retailer, is traveling to different stores in her district to discuss with store managers how to increase profitability for the rest of the fiscal year. What is Alicia doing?
controlling the direction of the planning/control cycle
The planning/control cycle has two control steps: (1) control the direction by comparing results with the plan and (2) control the direction by taking corrective action in two ways—namely by _____.
correcting deviations in the plan being carried out or improving future plans
Mountain Rescue Incorporated sells emergency safety and rescue products to ski patrols and rescue workers at prices that are below those of its competitors, who offer a larger line of products and focus on broader markets. Mountain Rescue Incorporated is pursuing a ____ strategy.
cost-focus
When organizations endeavor to keep their costs, and hence prices, of their products or services below those of competitors and to target a wide market this is a _____ strategy.
cost-leadership
The second step in the strategic-management process is to look at where the organization stands and see what is working and what could be different to maximize efficiency and effectiveness in achieving the organization's mission. This step is the process of completing a(n) _____.
current reality assessment
At the strategic level of planning, managers must pay attention to the environment outside the organization, be future oriented, and ____.
deal with uncertain and competitive conditions
A choice made from among available alternatives is a ____.
decision
The prospect theory suggests that ____.
decision makers find the notion of an actual loss more painful than giving up the possibility of a gain
A computer-based information system that provides a flexible tool for analysis and helps managers focus on the future is known as a(n) _____.
decision support system
The combination of how an individual perceives and responds to information reflects his or her ____.
decision-making style
Ace Manufacturing has high turnover continually due to issues with the corporate office. Paul, the plant manager, is frustrated and cannot find a solution to stop it. At first he offered raises to many of the good employees who were leaving, but after a while, Paul started blaming those who were leaving, saying, "they are poor-quality employees and they are to blame for leaving." Paul is engaged in ____.
defensive avoidance
Over the course of 40 years, Sal grew his company to six package shipping stores. With his retirement approaching and the increased competition, he decided to reduce the number of locations to two. Sal's reduction of effort represents a _____.
defensive strategy
The primary reason for an organization to adopt planning and strategic management is to _____.
develop a sustainable competitive advantage
Alex is the R&D manager with Digital Copier. The company is having a problem with one of its most popular copiers jamming. The vice president of marketing told Alex that "we need to quickly discover how to make this a desirable situation. You need to determine the underlying cause of the problem and perhaps even make improvements to the copier." This is an example of ____.
diagnosis
Organic Market sells high-quality products and grocery items that are unique to their area; in addition it offers delivery for customers who are unable to leave their home and a number of regular workshops regarding eating healthy. By offering these types of products and services, Organic Market is pursuing a _____ strategy.
differentiation
Sam is the production manager of a busy shoe factory. He was chosen because prior to his promotion he had proven himself to be very efficient, and as a department manager he had a logical and practical approach to solving problems. Sam has a reputation for being decisive and getting things done. Most of the employees like Sam, but they feel his style is autocratic, as he likes to do things by the book. Sam represents a person with a(n) ______ style.
directive
Goal displacement, satisficing, and groupthink are ____.
disadvantages of group decision making
According to Harvard Business School professor Michael Porter, strategic positioning means _____ to achieve sustainable competitive advantage
distinctive positioning
Quality Services is an organization that operates several companies that market food products, restaurant equipment, and paper and plastic products, and it even has a division that counsels restaurant owners, helping them become established. Quality Services is involved in a _____ strategy.
diversification
When an organization operates several businesses to spread the risk, such as a landscaping company that offers not only landscaping services but also lawn care, snow removal, and other services, that business is utilizing a ____ strategy.
diversification
Leon is an investment portfolio manager. While sitting in a training workshop, the facilitator mentioned that "your female investors make trades much less often than men because they ____."
do more research, and tend to base their investment decisions on considerations other than just numbers
Planning done by first-line managers to determine how to accomplish specific tasks with available resources within the next 1 to 52 weeks is known as _____.
doing operational planning
The upper-level managers of Synergy Technology are meeting for the week to look at the long-term company goals and overall direction of the organization. The CEO has expressed her concern over the economy and has told her managers to look closely at the environment outside the organization before making decisions and to be future oriented. In this meeting, top managers of Synergy are _____.
doing strategic planning
Bryan Barry suggests that to keep a strategic plan on track, organizations should ____.
engage people, keep it simple, stay focused, and keep moving
Regarding the results of a SWOT analysis, organizational opportunities are ____.
environmental factors that the organization may exploit for a competitive advantage
Sue keeps a close eye on her company's internal and external environment to discover possible opportunities for new products and threats from competition, as soon as possible. This is an example of ____.
environmental scanning
In order, the steps of the strategic-management process are _____.
establish the mission and vision; assess the current reality; formulate the grand strategy; implement the strategy; maintain strategic control
Scott has a bachelor's degree in ethics and human resources, and has extensive experience working with employees and managers regarding ethics, especially in the area of ethical dilemmas. With his background of dealing with legal issues, he has assisted extensively in determining if decisions are both ethical and lawful. With Scott's background, he is a top candidate for the company's new _____.
ethics officer
Olivia, the owner of a small city newspaper, started her business two years ago, believing that there was still enough demand for her product. However, because people are busy and with the availability of news online, she has seen the demand for her paper drop steadily. Olivia made a decision to change the original direction of the company and focus more on an Internet news service. By demonstrating that managers need to think and act as if their company is an unfinished prototype, won't be ruined by new ideas and focusing on facts, Olivia is relying on _____.
evidence-based decision making
More important than profit growth, stimulating innovation, customer loyalty, and finding qualified employees, global CEOs desire ____.
excellence in execution
In the strategic-management process, the final step, maintaining strategic control, is the source of _____.
feedback and evaluation
Strategic position emerges from three sources: _____.
few needs, many customers; broad needs, few customers; broad needs, many customers
ABC Office Supply in Dayton sells high-quality, unique pens that are a real value to executives in the area. No other company in its area markets pens of such quality and value. By offering this type of product, ABC Office Supply is an example of a company utilizing a _____ strategy.
focused-differentiation
In the political ads for Representative Joe Smith, the Democratic candidate, he is portrayed by the Republican-sponsored ads as being dishonest and poor at his job. Yet, the ads for Joe Smith, which are paid for by the Democratic supporters, describe him as being caring, honest, and a hard worker. The sponsors of these advertisements know that ads can affect whom voters choose on Election Day. This tendency of decision makers, the voters in this case, to be influenced by how a situation or problem is presented to them is known as ____.
framing bias
Abe and April are considering starting a family business, so their banker advised them to write a business plan because it helps an entrepreneur ____.
get financing and think through important details, and it better guarantees success
Doug is using rational decision making, and the chosen alternative that was implemented does not appear to be working. To correct the situation, the possibilities Doug should consider _____.
give it more time, change it slightly, try another alternative, or start over
A specific commitment to achieve a measurable result within a stated period of time is a _____.
goal
The Safety Committee at Office Supply Mart was formed to help make the stores a safer place, and some of the suggestions were going to be costly. However, when the vice president of accounting announced the recent report on company profits were much lower than expected, a new secondary goal was established to meet new profit expectations. Having to consider this new goal as a committee is an example of ____.
goal displacement
Having a greater pool of knowledge, gaining different perspectives, gaining intellectual stimulation, having a better understanding of decision rationale, and having a deeper commitment to the decision are advantages of ____.
group decision making
Regarding decision making, research has found that ____.
groups make better decisions than most individuals acting alone
Greg, Donna, and Paul are on the five-member Benefits Task Force that is researching options for the new benefits package. Over lunch, Greg, Donna, and Paul decided that adding Choice Health Club is a good idea, and that they plan on voting to agree to add it without ever researching and accurately assessing the decision. This is an example of ____.
groupthink
Access Office Equipment has shifted to sales and service of laptops and PCs, and is no longer offering repairs on older types of office equipment because the demand for service on this equipment is low, costly, and the profits have dropped significantly. This is an example of an organization implementing a ______.
growth strategy
Organic Foods International has decided to increase its market share by hiring a marketing rep to visit businesses in the area and invite their employees to shop at Organic Foods and for monthly health events. The store also hired two new employees to handle the anticipated increase in customer traffic. Organic Foods is utilizing a _____.
growth strategy
One Fortune article reads that "vision should describe what's happening to the world you compete in and what you want to do about it" and "it should ___."
guide decisions
Debbie likes working in the banking industry because there is a lot of structure and certainty, and the daily work is routine. Debbie probably _____.
has a low tolerance for ambiguity
When it comes to decision making, it is accurate to say that groups _____.
have higher decision-making accuracy when group members know a good deal about the relevant issues
Gregory was talking with Tom, his assistant manager, saying, "When I make a decision on which employee to pick to do a project, I use three simple factors, which I call my decision making "rules of thumb." I consider their attitude and knowledge, and how hard they work." Gregory's rules of thumb, which he uses in decision making, are known as _____.
heuristics
The tendency of people to view events as being more predictable than they really are known as _____.
hindsight bias
Jose, the sales manager, is working on the problem of increasing sales by using the rational model of decision making. In the first step he identified the problem of his employees needing more training. In the second step he thought of alternative solutions; and in step three he evaluated alternatives and selected a solution. In the fourth step, Jose needs to _____.
implement and evaluate the training program chosen
How high priority is this situation? How believable is the information about the situation? How quickly must I act on the information about the situation? These are three questions concerning ways to evaluate _____.
importance, credibility, urgency
Sal has been in the landscaping business for over 40 years, and when Donovan, his business partner, suggested adding snow removal as an extra service, Sal responded with "My gut feeling is to say yes because of my experience in the past and what I have seen other companies do over the years, both successfully and not." Sal's response to Donovan is known as _____.
intuition
Roberta, the computer department manager at IT Mart, is considering if she should use a group to develop a plan to help employees sell extended warranties on technology sales. Roberta should consider having the group make this decision if ______.
it will increase acceptance of the plan
Research suggests that when writing out and achieving a person's biggest goals, it is important to ____.
make a concrete plan and break goals into manageable bites
The planning/control cycle has two planning steps: _____.
make the plan, then carry out the plan
In a late October marketing meeting, Theresa, the branch manager, told her marketing manager, Sal, that she needed two things by the end of the year from him: "First I want your goals for next year, and then I need your action plan to reach your goals, your ____."
marketing plan
A 2013 survey found that among managers, the use of _____ is popular.
mission and vision statements
Clothing maker Patagonia states that its purpose as an organization is to "build the best product, cause no unnecessary harm, [and] use business to inspire and implement solutions to the environmental crisis." This is the company's ___.
mission statement
Elite Coffee and Bakery, a café that offers a relaxing environment to enjoy quality coffees, teas, soups, and other menu items, has a poster in the front of its restaurants that reads, "We will always provide a quality product to help our customers better meet the challenges of their day and always take the time to offer caring service one person at a time." This statement is Elite's ___.
mission statement
Who are our customers? What are our major products or services? In what geographic areas do we compete? These are all questions that are answered in a good _____.
mission statement
David is starting a karate school, and he has been working with Mr. Smith, a business counselor with the SBA. Mr. Smith told David that the first three steps to planning his organization are (in the correct order) ___.
mission statement, vision statement, strategic planning
Strategic control includes ____.
monitoring the execution of strategy and making adjustments, if necessary
The purpose of MBO is to ____.
motivate subordinates
With the community interested in eating healthy, Sue Ellen, a restaurant owner, is considering adding more vegetarian dishes to her menu. This decision is uncertain and risky, and she finally decides to goes with her gut feelings. This is an example of _______.
nonrational decision making
A goal is also known as a(n) ____.
objective
For MBO to be successful, top management must be committed, it must be applied organizationwide, and _____.
objectives must cascade
The management of Quality Carpet Cleaning finalized the company's action plan for increasing its market share over the next few years. The management then set up a 12-month plan that defines how the organization will conduct its business based on the action plan, including clear sales targets for each week. The second plan is an example of a(n) _____ plan.
operating
Susan is a front-line supervisor in a grocery retailer. She desires to decrease the time she spends working on doing her daily closing work. This objective set by Susan and for her is an example of a(n) ____.
operational goal
Goals that are set by and for first-line managers and are concerned with short-term matters associated with realizing tactical goals are called _______.
operational goals
Writing employee schedules and a list of things to do for the cook is a type of ____.
operational planning
Christopher's Restaurant and Catering serves delicious vegetarian and vegan dishes. So when the local community became interested in eating a healthier diet, Christopher's benefited. The changing community attitudes are an example of a(n) _____ for Christopher's.
opportunity
Patricia is the owner of a floral shop. A successful global candle company approached her about selling its products in her shop. Patricia knows this product and company can help her exceed her existing goals. This defines a(n) ____.
opportunity
The predisposition in which people's subjective confidence in their decision making is greater than their objective accuracy is ____.
overconfidence bias
Orlando, the manager of a camera store, believes that his store may be closed by corporate in the near future, so he cannot sleep well at night and he is dealing with severe anxiety, irritability, and has been ill several times this month. Several times Orlando has missed important details in his job, and he almost got in an automobile accident this morning. Orlando is experiencing ____.
panic
A company's overall ability to execute is a function of effectively executing according to three processes, but Bossidy and Charan proposed that the _____ process is the most important.
people
Successful controlling within an organization, according to Bossidy and Charan, demands that managers build a foundation of controlling using the three core processes of _____.
people, strategy, and operations
While sitting at her desk, Ann is setting goals and deciding how to achieve them. She is ___.
planning
With increasing competition in the restaurant business, Sal, owner of Mom's Pizza, is dealing with growing uncertainty. He is meeting with his managers to develop a future course of action to meet company goals. This process is known as _____.
planning
Helping people focus on critical problems, choices, and opportunities is possible through _____.
planning and strategic management
To ensure that plans are moving in the right direction, managers can use the ______.
planning/control cycle
This month, Alice, the branch manager of Quality Computer Sales, has heard several complaints from customers that Quality employees do not return calls. Today a good customer told Alice that "my phone calls and e-mails are returned after maybe a week or so." Hearing enough, Alice mandated that "all customer phone calls and e-mails must be returned within 24 hours." This new directive by Alice is an example of a(n) _____.
policy
The profits of ABC Grocery have dropped significantly over the last several months. After investigating, the owner realizes that the store is moving in the wrong direction in many departments, so there needs to be greater focus by management. This is an example of how an organization can progress in the wrong direction with ____.
poor plan
A data-mining technique used to predict future behavior and anticipate the consequences of change is known as ___.
predictive modeling
When confronted with a choice, people with strong prior beliefs tend to make their decisions based on their beliefs even if their beliefs are false. This is known as ____.
prior-hypothesis bias
Difficulties that inhibit the achievement of goals are known as _____.
problems
A standing plan that outlines the response to particular problems or circumstances is a(n)
procedure
Fast Delivery trains its truck loaders how to set the packages in the delivery vehicles, so that when delivery drivers are pulling packages off their trucks, they are organized in a specific order and with the label facing forward to reduce errors and save time. This precise method of loading a truck is known is a(n) ____.
procedure
With defensive avoidance, a manager can't find a good solution and follows by ____.
procrastinating, passing the buck, or denying the risk of any negative consequences
A single-use plan encompassing a variety of projects or activities is an example of a(n) ___.
program
Paula, the store manager, asked Tom to organize the prize giveaways for the store's grand reopening open house. This plan is an example of a(n) ___.
project
A forecast is a(n) _____.
projection for the future
The mission statement expresses the ____.
purpose of the organization
Chad and his partner, John, have decided to update their computer network, although they have no expertise in this area. During a meeting with John, Chad commented that "Our decision is limited by numerous constraints, such as our understanding of the complexity of technology, time and money, imperfect information, and our conflicting goals." These limitations are hindrances to _____.
rational decision making
George, a longtime hotel manager, was meeting with Sally, a new manager, and telling her about a recent decision related to whether or not to fire a front desk employee who has had customer service issues. George discussed the four stages of the decision process. He said, "I first identified the problem, and then, I gathered alternative solutions. I then evaluated each choice and selected a solution. I then implemented my decision to add training. Finally, I followed up with an evaluation of what I set in place." With this decision, George is using the ______.
rational decision-making model
The model of decision making that explains how managers should make decisions, assuming managers will make logical decisions that will be the optimum in furthering the organization's best interests, is known as the ____.
rational decision-making model
The decision was made by BP and Halliburton executives regarding not taking action with the oil well blowout preventer that experts believe would have prevented the Deepwater Horizon oil rig explosion and fire off the coast of Louisiana, since company management believed that there would be no great negative consequences as a result of their decision. This is an example of ___.
relaxed avoidance
Dwight, a hotel general manager, is having serious problems—a substance abuse issue—with one of his housekeeping employees. He knows that because of the seriousness of the issue he needs to talk with the employee. However, his assistant manager asks Dwight if he would like him to deal with it. Dwight knows this is not the best option, but agrees, knowing it is the easy way out. This is an example of _____.
relaxed change
Paul, the store manager, recently had to fire Sue, an employee who graduated from North College. He felt that Sue was not well trained at her school. So when Steven, also a graduate from North College, applied for Sue's old position, he did not want to consider hiring him, feeling Steven also probably did not receive the proper training. Paul was affected by _____ bias.
representativeness
A defensive strategy is also known as a(n) _____.
retrenchment strategy
Steve, a hotel general manager, has had great success using MBO. Hannah, his district manager, has found that his employees are highly motivated, and she believes that this is the case because in using MBO, Steve ____.
rewards his employees with compliments, raises, and other benefits as they meet their goals
A standing plan that designates specific required action is a(n) ____.
rule
Because several computers and keyboards in the computer labs have been damaged recently by drinks and food being spilled, the department chair of the IT department issued a directive that "Absolutely no food or drink are allowed in any computer lab." This statement by the department chair is a(n) ______.
rule
Paula, the controller of Tasty Pizza, is purchasing several new delivery vehicles. Paula has numerous work responsibilities, so she has limited time to shop for cars. Because of the time constraints, she cannot make an extensive search for the best alternative but instead needs to look for cars until she finds one that is satisfactory. Paula is following the _____ model.
satisficing
Contingency planning is also known as _____.
scenario planning and scenario analysis
One report reads that big companies, such as Amazon, Google, or Apple, "are no longer content simply to enhance part of your life. The new strategy is to build a device, sell it to consumers, and then ____."
sell them the content to play on their device
ABC Technology makes and sells only one product, a high-quality processor for mainframe computers, within its market, Silicon Valley, California; ABC utilizes a _____ strategy.
single-product
Plans developed for activities that are not likely to be repeated in the future, such as plans for programs or projects, are _____.
single-use plans
Regarding the findings from a SWOT analysis, organizational strengths are ____.
skills and capabilities that give a company advantages in executing its strategies
Delux Technology has a reputation of reliability and winning customer service, building this highly respected name brand over the last 15 years. As a speaker at a business conference, Steve, the CEO of Delux, told his audience that "We have built our reputation by changing little over the last several years, but consistently helping customers with great, caring service and a reliable product." Delux Technology utilizes a ____.
stability strategy
In the BCG matrix, companies that have high growth and high market share, and are definite keepers are ____.
stars
Developing a comprehensive program for long-term success is the focus of ____.
strageic panning
Dave owns several computer repair shops across the Midwest, and he has set a goal for his company of cutting costs in all his locations over the next three years. Dave has set a(n) ____.
strategic goal
To provide direction and momentum, encourage new ideas, and develop a sustainable competitive advantage are reasons why an organization should adopt _____.
strategic management and strategic planning
With small businesses in very competitive industries, small differences in performance may affect that company's survival. So in this case, it is worth the effort to implement _______.
strategic planning
Rashid, the CEO of Top Productions, was telling his new vice president of accounting that "In the past I had resistance to new ideas by people who felt that one of our plans threatens their influence or jobs. So when you tell your collections department that we just hired a collection agency to handle bad debt, you may have to sell your collections manager and his supervisors on using the agency and that nobody is going to be laid off." Selling middle and supervisory managers on changes to overcome their resistance is often a necessary part of _____.
strategy implementation
Many customers shop at Organic Foods because of the employees' extensive product knowledge. This is an example of the company's _____.
strengths
What is the assessment of the external environment? What are the critical issues facing the business? Can the business execute the strategy? According to Bossidy and Charan, these are some of the questions that should be addressed in a _____.
strong strategic plan
Malik and his managers spent a large sum of money on the new training program, and they feel that there has been little improvement as a result of the investment. The training is scheduled to continue for two more months, and Malik feels that with all the money already spent on the project, it is too costly to simply abandon it. This is known as ______.
sunk-cost bias
With SMART goals only a few goals should be chosen, and they should be results-oriented, that ____.
support the organization's vision
Doug is the CEO of Johnson Motors, a business consisting of Chevrolet, Buick, Cadillac, and Mercedes-Benz dealerships. He also sells Fleetwood and American Coach RVs. Doug mentioned to his sales manager that "there is economic value in having many related businesses managed by one ownership group. They are worth more than if they are separate companies." This is an example of ____.
synergy
The top management of Tasty Foods, a food distribution company, has set strategic goals of increasing organizational market share and also decreasing corporate costs over the next three years. Greg, a division manager for Tasty Foods, has looked at his resources, and decided how his division can contribute to the two strategic goals set by upper management. These types of objectives set by Greg are _____.
tactical goals
Planning done by middle managers to determine what contributions their departments or similar work units can make with their given resources during the next 6 to 24 months is ____.
tactical planning
The upper management of a large national retail grocery store has passed along the new goals of improving customer service to the district managers. At this point, the district managers need to determine how the stores in their district will achieve top management's goal with the given resources during the next 6 to 24 months. This type of planning is known as ____.
tactical planning
Peter, the owner, is even more committed to making the used copier, which he recently purchased, work even though it keeps jamming and people have been telling him about other problems they have been having with it. Peter is affected by ______.
the escalation of commitment bias
With MBO, research shows people are impelled to set more difficult goals—if _____.
there is joint participation by management and subordinates
Despite your best intentions, it's hard to bring the best evidence to bear on your decisions because of such reasons as ____.
there's too much evidence; there's not enough good evidence and the side effects outweigh the cure
The owners of Smith's Yard Mart, a family-owned garden center in a rural community, is concerned over the news that a large retailer with a garden center is building a new store on the other side of town. This new retailer is a(n) ____ for Smith's.
threat
Michael Porter proposed that business-level strategies originate with the primary competitive forces in the firm's environment; these forces are _____.
threats of new entrants and substitute products or services, bargaining power of suppliers and buyers, and competitive rivalries
Tom and his family have developed a successful business selling fertilizer to other farmers in his area, consisting of rich, organic compost material. Recently ABC Seed, a national seed company, has been marketing a chemical fertilizer to his customers that is less expensive than Tom's product. ABC's efforts are an example of ___ in Porter's model for industry analysis.
threats of substitute products and services
Strategic, tactical, and operational are the ____.
three levels of planning
Andre, the plant manager, is interested in increasing the facility's productivity by utilizing MBO so that his managers and their employees are more focused on objectives. This month Andre asked his managers to concentrate on the two first steps of MBO, which are ____.
to jointly set objectives and have managers develop action plans
The basic assumption that the picture of the present can be projected into the future is the basis of a _____.
trend analysis
During a management meeting, Dave, the CEO of Top Office Equipment, reminded his management team of where the company wants to go as an organization: "Top Office Equipment is the expert whom customers should always call regarding all their office equipment needs because Top Office strives to understand customer needs and provide the right answers for them." This statement is Top Office Equipment's ____.
vision statement
Is it appropriate for the organization and for the times? Does it set standards of excellence and reflect high ideals? Is it ambitious? These are all questions that are answered in a good _____.
vision statement
Says one authority, strategic planning should communicate not only general goals about growth and profits but also _____.
ways to achieve them
Don knows that one of the reasons people do not return to his electronics store is because of the slow service. This is an example of the organization's _____.
weaknesses
Ben attended a workshop hosted by SCORE, a SBA organization that counsels small-business owners on developing a good vision statement. In that workshop the speakers discussed how an organization's vision needs to describe _____.
what the company wants to become, and its long-term direction and strategic intent
Porter's competitive strategies of cost-leadership and differentiation focus on ____ markets, and the cost-focus and focused-differentiation strategies focus on ____ markets.
wide, narrow
Deon is opening a car wash, and he has approached SCORE, a SBA organization that assists small-business owners in setting up their companies. As a new business owner, the SCORE counselors would probably advise Deon to _____.
write a buisness plan
