Management

profit

A divisional manager's performance is evaluated on the basis of the difference between the sales revenues generated by that division and the cost of making those goods and services. The divisional manager is being evaluated using the ________ budget approach.

strategic

A formal agreement that commits two or more companies to exchange or share their resources in order to produce and market a product is known as a(n) ________ alliance.

Correct answer: skunkworks.

A group of intrapreneurs who are separated from the normal operation of an organization in order to develop new products with a relatively brief development time is known as a(n)

SWOT analysis

A group of managers at Right Stuff, Ltd., analyzes both the internal strengths and weaknesses of their organization as well as the opportunities and threats of the external environment. Which of the following planning exercises does this indicate?

took responsibility for the failure of a project in his previous job and is confident he will correct his mistakes.

A human resource manager for a large company wants to hire people who show strong potential to become intrapreneurs. Considering this, the manager would most likely hire the applicant who

talk with his sales staff about the way they should all treat customers

A sales manager wants to promote a shared vision among his staff. Considering this, which of the following would he do?

analyzability.

According to Charles Perrow, the routineness of technology is determined by task

greater barriers to entry.

An advantage of the differentiation strategy is

high self-esteem.

An entrepreneur is likely to have

entrepreneur.

An individual who looks for opportunities and is aware of mobilizing the resources required for producing new and improved goods and services is called a(n)

chain of command.

An organization's hierarchy of authority is also known as its

functional

An organizational structure consisting of all the departments within the company that are needed to produce its goods or services is a ________ structure.

Correct answer: economic feasibility

Ayaru, a marketing manager, wants to budget the advertising for a new product launch. She is trying to determine the amount of money that her company can afford to spend on advertising this new product. In the context of decision-making, which of the following criteria of alternative courses of action is Ayaru implementing?

recognize that one employee is the staunchest advocate for organic perfume and encourage her to take charge of the project

Calla is the manager for a fragrance company that is considering starting a line of organic perfumes. Her employees have mixed feelings about this idea. Some criticize it as being impractical, but others are enthusiastic about it, despite the costs involved in producing perfumes with organic ingredients. Which of the following actions should Calla take to efficiently and effectively ensure that the company's organic perfume line reaches the end consumer?

devise a plan on how to purchase the plastic supplier.

Callista is a manager at ThrillSeeker, Ltd., a company that makes amusement park rides. She has decided that she would like to create value by purchasing one of the companies that produces the materials ThrillSeeker needs to make its rides. She has already chosen a team of people and assigned them the responsibility to making sure the purchase happens. What should she do next?

multidomestic

Carry On, Inc., sells different products using a different marketing approach in England than it uses when marketing these products in the United States. This is an example of a ________ strategy.

comparing the actual performance against chosen standards of performance.

Charlene, the manager of CraftRite Leather Goods, checked the weekly records and discovered that the number of handbags produced in one week by 45 employees was 375 against the set target of 450 handbags. With reference to the control process, Charlene is

the high price of the metal used to make the earbuds

Cheng-En has just completed a study for his company, NewElectronics, Inc., which produces wireless earbuds. This study focuses on the major threats to NewElectronics. Cheng-En has found that his company has one major rival, MagicSounds, Inc., which has developed impressive brand loyalty. Cheng-En's company uses a specific type of metal that only a few suppliers offer. However, NewElectronics's earbuds would still be affordable for many customers. Furthermore, Cheng-En does not see any products that can be used in place of New Electronics earbuds. Based on what you know about Michael Porter's five forces model, which of the following would Cheng-En claim is the greatest threat to NewElectronics?

make the prices of the company's hunting weapons and gear less than those of the competition.

Clark is the new CEO of Stonehedge, Inc. He wants to pursue a focused low-cost strategy for his company, which sells weapons and gear to hunters. To accomplish this, he will

closely supervise their employees within a hierarchical system.

Companies with an inert culture

giving one manager in each of three departments (marketing, engineering, and production) the responsibility of coordinating with each other to brainstorm new product ideas.

CoreSol Ltd. implements a liaison role by

geographic

CrossBorders Delivery Corporation organizes its managers according to the different regions of the world in which the managers work. This is an example of a ________ structure.

higher task significance.

Eduardo works a salesperson at a prescription drug store; Marietta works as a doctor, helping people who suffer from malignant diseases. Marietta most likely has

functions and by product

Employees organized according to a matrix structure are grouped by

licensing.

FarHorizons, Inc., allows Banerjee, a foreign organization, to take charge of both manufacturing and distributing one or more of its products in India in return for a negotiated fee. This is an example of

forward vertical integration.

Firestone Tire and Rubber Company set up a chain of Firestone retail stores to sell its tires to American consumers. This is an example of

nonprogrammed

Go-Getter, Co., is attempting to decide whether or not to launch a new $10 million advertising campaign for a product whose sales have been lagging well below its projected sales. This represents which type of decision for the organization?

related diversification.

Hemisphere Corporation decides to enter a new type of business in order to create a competitive advantage in one of its existing businesses. Hemisphere is engaging in

performance.

In an adaptive culture, employees often receive rewards based on their

recognize that there is a problem and identify its source.

In assessing the need for organizational change, managers must

creativity.

In managerial decision making, the ability of a manager to discover novel ideas that lead to alternative courses of action for the organization to use for solving a particular problem is known as

integrating roles and departments

In which mechanism do senior managers provide members of a cross-functional team with relevant information from other teams and divisions?

social entrepreneurs.

Individuals who pursue opportunities to address problems and needs in order to improve society and well-being, such as reducing poverty, are known as

allow a subordinate to proceed on a work project even though he does not agree with how the subordinate wants to do the work

Jack, a manager, wants to promote creativity in his company. To do this, which of the following actions would he take?

take on an advisory role and focus on pursing new opportunities for Old Sarsaparilla

Jonah and Aubrey are the founders of Old Sarsaparilla, a manufacturer of novelty bottled sodas that use organic ingredients. After a couple of years of successfully marketing their products to local businesses, the company has attracted a slew of new investors and clients and has expanded into several of the surrounding states. As part of this expansion, they have hired a manager, Yusuf, to be responsible for the day-to-day business of the company. However, Aubrey questions all of Yusuf's decisions, wanting to remain involved in every aspect of the business. This has resulted in her being overextended and stressed most of the time. Caryl, Old Sarsaparilla's biggest investor and one of Aubrey's mentors, knows that Aubrey's creative, big-picture thinking is one of her most valuable traits. What should he suggest she do?take on an advisory role and focus on pursing new opportunities for Old Sarsaparilla

learn from feedback

KJ, Inc., has received a poor rating for one of its newly launched products from the customers. Joe, a top manager at KJ, Inc., wants to find out why this product performed poorly. To accomplish this, which of the following decision-making steps does Joe have to implement?

give lower-level managers and the graphic designers the authority to make important decisions.

Karabo wants to start a graphic design company that will have employees who are highly skilled at using complex computer programs. For this type of company, Karabo would most likely want to

challenge the way the group evaluates alternatives and points out some reasons why the alternative preferred by the group is not acceptable

Lila is a manager involved in group decision making with other managers. She wants to make sure that the group avoids groupthink. Which of the following actions should she take to ensure that the group makes the best possible decision?

behavior

Management by objectives is a mechanism of control with ________ organizational control systems.

market

Managers are able to be responsive to the needs of their customers and maintain flexibility in making decisions regarding customers' changing needs with a ________ structure.

a strength in R&D, a weakness in product range, and an increasing threat from companies in East Asia.

Managers at Dimensions, Inc., created an effective strategy formulation, which determined that the company has

selling its TVs and DVD players in France using the marketing approach that is used in the United States.

Manuela is one of the top managers at Electrix, Ltd. She wants her company to use a global strategy by

establishes the standards of performance.

Martel, the production manager of Firefly Shoes, sets a production target of 220 shoes to be distributed among 20 employees in a week. In the context of the control process, Martel

Correct answer: programmed

Martin, a plant foreman, hires an additional worker whenever overtime hours for the previous month increase by more than 25 percent. This is an example of which type of decision?

boundaryless organization.

Natasha sets up a publishing company, which uses freelance editors, writers, and marketers located in various areas of the United States. Even though these people never see each other face-to-face, the company runs efficiently. Natasha accomplished this by creating a

integrating

Organizing tools that managers use to increase communication among functions and divisions are known as ________ mechanisms.

vertical integration

PepsiCo purchased KFC so that it could replace Coke products with Pepsi products in KFC restaurants. This is an example of a ________ strategy.

synergy.

Procter & Gamble uses a joint sales force to sell both its laundry detergent products and its bath soap products to the same supermarket chains. This is an example of

form a strategic alliance with a distributor in China.

RideOn, Inc., is an automobile company that has strategic alliances with two entities: a supplier in India and a manufacturer in South Africa. RideOn's vehicles are known for being of good quality, but they are more expensive than the average person can afford. The company would like to further reduce its costs so that it can pass those savings on to the end consumer. To do this RideOn would most likely

span of control.

Riku is a project manager who has 15 employees reporting directly to him. Those 15 employees represent Riku's

bureaucratic

Rules and SOPs are of little use in telling a scientist how to discover something new. Thus, which of the following forms of control should not be applied to scientists?

Correct answer: practicality

Stojan, a plant manager, wants to initiate a diversity training program in his plant. He is considering whether his department has enough extra people to cover for the time his employees will be engaged in the classes. Which of the following criteria of decision making is Stojan implementing?

entering the textiles industry and aiming to be the first or second in market share in this industry in five years.

SynVens, a major retail chain in Hungary, is planning to diversify. To accomplish this, it sets up a corporate level strategy which involves

quick ratio

The CEO of a company would like to know whether his managers can pay off claims of short-term creditors without selling inventory. What ratio will help him understand the company's liquidity?

include organizational culture and strategies.

The aspects of organizational functioning that are affected by organizational change

managers have access to all the information they need to make the optimum decision.

The classical model of decision making assumes that

Correct answer: prescriptive.

The classical model of decision making specifies how decisions should be made by managers; this is a way of saying that this model of decision making is

strategy.

The cluster of decisions that managers make to assist an organization to achieve its goals is known as

4

The current assets of Kaiser Investments are valued at $25 million and its current liabilities are at $6 million. If its inventory is worth $1 million, what is its quick ratio?

autonomy

The degree to which a job allows the worker to schedule the tasks of the job and to decide how to carry out these tasks is known as

task significance

The degree to which a manager feels that his or her job is "meaningful" because of the way in which the job affects other people is known as

more likely managers are to design a structure and a culture that are flexible.

The greater the level of uncertainty in the organization's environment, the

minimum chain of command

The idea that an organization's hierarchy should be designed with as few levels of authority as are necessary to use the organization's resources in an efficient and effective manner falls under which of the following principles?

functional

The level of an organization that contains the organization's marketing department, R&D department, and human resources department is the ________ level.

output

The manager of East India Ice Cream Shop keeps track of the number of customers served at different periods of the day in an attempt to plan a schedule for workers that matches the demand for the restaurant's products. By using this tracking system, the manager of East India is utilizing ________ control.

programmed

The manager of a charity asks the board of directors for permission to hire temporary help when the regular secretary goes on vacation. This is an example of which type of decision?

revenue

The manager of a profit center is evaluated on the basis of the amount of sales that have been generated from the goods or services produced in his/her division. The divisional manager is being evaluated using the ________ budget approach.

measuring the actual level of performance of employees

The managers of Sputnik Diner, a fast food restaurant, record outputs on a daily basis by counting how many customers their employees serve, the time each transaction takes, and how much money each customer spends every day. With reference to the control process, the managers of Sputnik are

organizing.

The process by which managers establish the structure of working relationships among the workers of the organization is known as

controlling.

The process by which managers monitor and regulate how efficiently and effectively an organization and its members are performing the activities necessary to achieve organizational goals is known as

chain of command.

The relative authority that each manager in the organization has from the CEO down to the lowest-level manager is called the

comparing actual performance to the standards.

The step of the control process utilized by managers to evaluate whether the actual performance of the organization differs significantly from the standards of performance that assess the organization is

business

The strategy that explains the methods that a division or an organization will use to compete against its rivals in the industry is a ________-level strategy.

standing

The tool that is used in situations when programmed decision making is appropriate is a ________ plan.

feedforward

The type of control that managers typically use in the input stage of the process of transforming raw materials into finished goods is ________ control.

business.

To determine an organization's mission, managers must first define its

top-down approach to promote adaptive culture.

Top managers in a company decide between themselves to implement an employee stock ownership plan for all their employees. This is an example of a company taking a

a fast or revolutionary approach involving managers at all levels

TruLife Health Systems has opted for a top-down approach to changing how the company functions so that efficiency is increased. What is the change likely to entail?

corporate

TrueAim, Inc., sets a goal that every product line of the company should be either first or second in its industry in market share. This would be an example of a ________-level strategy.

product

VRT, Inc., started out just making hair dryers. However, as the company expanded, it produced automobiles, life insurance, and furniture. Considering this, the CEO has decided to change from a functional structure to a ________ structure.

the ability to gain market share or charge higher prices for customized product offerings and marketing approaches to local conditions

What is the major advantage of a multidomestic strategy?

to take advantage of favorable opportunities

What is the plan of action for a business-level strategy based on SWOT analysis?

diversification

When PepsiCo purchased Frito-Lay and expanded its operations into the snack-food business, it was pursuing a ________ strategy.

revenue

When a manager is told to maximize the revenues from the sales of goods and services produced, this is an example of a(n) ________ budget approach.

nominal group technique

When an issue is controversial and when different managers might be expected to champion different courses of action, which of the following is the preferred technique for encouraging creativity?

adaptive

When an organization has a strong and cohesive organizational culture that controls employee attitudes and behaviors, that company has a(n) ________ culture.

matrix

When designing an organization, if managers are grouped both by function and by product at the same time, the organizational structure being used is the ________ structure.

intution

When fire chiefs manage firefighters battling hazardous, out-of-control fires, they frequently have to depend on their professional instincts to make on-the-spot decisions that will protect the lives of the firefighters, save the lives of others, control the fires, and preserve property—decisions made in emergency situations involving high ambiguity and rapidly changing conditions. This is an example of which of the following types of decision making?

risk

When managers know the possible outcomes of a decision and can assign probabilities to each of these outcomes in terms of their likelihood of occurrence in the future, this is known as

a strategic alliance.

When managers pool or share their organization's resources and know-how with those of a foreign company, and the two organizations share the rewards or risks of starting a new venture in a foreign country, the two organizations are involved in

deciding whether to take corrective action to meet the standard

Which of the following activities might a manager perform if he or she is at the final stage of the control process?

administrative model

Which of the following explains the reasons for the inherently uncertain and risky nature of decision making and the making of satisfactory rather than optimum decisions by managers?

Group members cannot always simultaneously understand the alternatives and think up additional alternatives.

Which of the following is most likely to be a disadvantage of brainstorming in an organization?

Employees stop thinking for themselves.

Which of the following problem is most likely to occur when a company becomes overly bureaucratic?

functional

Which of the following structures groups together people who perform similar jobs?

divisional

Which of the following structures is an organizational structure composed of separate business units within which are the functions that work together to produce a specific product for a specific customer?

weakness.

While managers at QualityFirst Manufacturing were conducting a SWOT analysis, they concluded that their product line is obsolete and narrow. Their product line would be categorized as a(n)

organizational objectives.

With management by objectives, the first things established are

Correct answer: learn from feedback

With reference to the steps of decision-making process, which of the following is the last step in the managerial decision-making process?

practicality

You are a manager assessing possible alternatives for the solution of a quality problem in his department. As part of this process, you want to determine if a possible alternative will threaten other company projects. To accomplish this, which of the following criteria of decision-making will you implement?